Need clarification on how exactly 0% for 12 months works

MindlessWolf

i'm completely new to credit card borrowing and i know my question will sound stupid to most, but want to make sure i understand how it works before i apply.

If i get a 0% for 12 months card, and then buy something on it for 500 pounds - does that mean i don't get charged any interest as long as i pay the full 500 pounds before the 12 months are up?

opinions4u

You have to pay the minimum payments back on the card each month as well. Typically between 2% and 5% of the balance, depending on the card issuer.

As long as you do this, and then clear the balance in full within 12 months, you won't get charged interest.

(assuming you don't do silly things like cash advances, gambling transactions online etc).

If i get a 0% for 12 months card

Make sure it is 0% for purchases!

payless

just be careful not to spend on a card with 0% balance transfer, or balance transfer if getting 12m purchases at 0%

MindlessWolf

i'm thinking of getting the Tesco card - recommended on this site - that'll be 0% on purchases right?

By cash advances do you mean using the credit card to take cash out at an ATM? That's charged differently?

td_007

MindlessWolf wrote: »

i'm thinking of getting the Tesco card - recommended on this site - that'll be 0% on purchases right?

Yes....here

MindlessWolf wrote: »

By cash advances do you mean using the credit card to take cash out at an ATM? That's charged differently?

Yes again...also buying foreign exchange with the card will count as a cash transaction. Also, gambling, lottery etc do not fall under purchases.

callum9999

MindlessWolf wrote: »

i'm thinking of getting the Tesco card - recommended on this site - that'll be 0% on purchases right?

By cash advances do you mean using the credit card to take cash out at an ATM? That's charged differently?

As td_007 said, they are charged differently. They normally have a higher rate of interest, and interest starts building up from the day of the withdrawal.