When interest free period expires advice please

Treeclimber

Our interest free period is about to expire 05 February and we will have an outstanding balance of £500 the monthly rate for purchases is 1% annual rate is 11.3%. My question I can pay off £300 leaving balance of £200 if the interest free period ends 05 February do we have to pay the £200 by that date or by 05 March please.

dylanuk

You'll be charged the purchase interest rate from the date your 0% period ends on any balance left outstanding from this date.

This is because the 'interest free period' that gives you 'up to 56 days' to pay your balance in full before you are charged interest - is only available if you paid off your previous month's balance in full.

The 0% rate on your purchases is different from the interest free period you get each month to pay off your statement in full.

I think that's right anyway, I'm sure I'll be corrected if I'm wrong!

Treeclimber

We did not pay last months balance in full hence the outstanding balance which will in effect be £200, our last bill from them should show outstanding balance of £200 plus the monthly purchase interest of 1% plus the annual interest of 11.3%.

CannyJock

Treeclimber wrote: »

Our interest free period is about to expire 05 February and we will have an outstanding balance of £500 the monthly rate for purchases is 1% annual rate is 11.3%. My question I can pay off £300 leaving balance of £200 if the interest free period ends 05 February do we have to pay the £200 by that date or by 05 March please.

Like dylan says, full balance needs to be paid by 5th February to avoid interest.

And monthly rate of 1% is annual rate of 12.68% APR, or 11.3% APR is 0.8962% per month calculator here will convert between them http://www.stoozing.com/mon2yr.htm

td_007

Treeclimber wrote: »

Our interest free period is about to expire 05 February and we will have an outstanding balance of £500 the monthly rate for purchases is 1% annual rate is 11.3%. My question I can pay off £300 leaving balance of £200 if the interest free period ends 05 February do we have to pay the £200 by that date or by 05 March please.

Just be aware that the end of interest free period is related to a/c opening date and not the statement date - so confirm that Feb 5th is actually the end of interest free period.