Halifax all in one card -small print question

rover25

Hi, Just got a letter to say that I have been accepted for this card with 0% purchases and transfers. Reading the agreement I found something I'm not sure about in section 2 called Other financial information. It says

' The total charge for credit is £123.63 consisting of £123.63 interest. This is based on credit of £1500 being borrowed at the start of the agreement over one year at the standard interest rate for purchases set out in condition 3.2 below... and repaid in equal monthly instalments beginning one month after the start of the agreement.

What does this mean? Sorry if a silly question

dazza.mk

It means nothing... purely an information point, if you were to borrow £1,500 on your card at the standard rate of interest you would pay £123 in interest over the 1st year.

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If you've got 0% Purchases and Transfers you won't be borrowing at the standard rate of interest i the 1st year (assuming you make minimum repyaments)

taless

Hi Rover25,

It means that if you made a £1500 transaction when you get your credit card and pay it back over the 12 month period, you will incur £123.63 in interest, based on a standard 14.9% APR (It's a slightly complicated calculation which I won't show here)

However,
a) With the Halifax All-in-One card, you have a 10 mth interest free on purchases and balance transfers (not cash withdrawals). So any of the transactions in the 1st 10 months will not incur interest - and if you repay everything by the end of the 10th month you will not incur any interest.

b) After the 10th month you have 59-day interest free on purchases, as long as you paid your previous and your current bill in full.

So in short, the scenario that they outlined only applies when you're not on a promotional period (i.e. post the 10 month period or you broke the agreement by going overlimit or not paying the minimum repayment) and if you do not repay your credit card balances in full.

Hope this helps!

JesseJames_2

That's just an example of what it would cost you at the standard rate for a given amount.

You should have a table below what you have just quoted detailing an special promotion rates and periods including your 15.94% standard rate that should tell you what you have.