0% on purchases - when do I have pay off the balance?

ginvzt

Hi,

I hope clever people on this forum can explain me something.

I took out Santander Zero CC in December. The first transaction was made on December 23rd. It had an offer of 3 months 0% on purchases, so I have been making minimum payments so far and keep money in the savings account (every penny counts!).

Now, I though I would have to pay off my balance by the end on March. But I have just got my statement and it gives the minimum payment due and that that it is due by 5th of April. Then it says 'Estimated Interest: £0.00".

Next Statement is due on 8th of April.

Does this mean I can make another minimum payment and keep my money in the savings for one more month? So, the interest for next month will be 0, as long as I keep up my minimum payment.

CannyJock

ginvzt wrote: »

I took out Santander Zero CC in December. The first transaction was made on December 23rd. It had an offer of 3 months 0% on purchases, so I have been making minimum payments so far and keep money in the savings account (every penny counts!).

Now, I though I would have to pay off my balance by the end on March. But I have just got my statement and it gives the minimum payment due and that that it is due by 5th of April. Then it says 'Estimated Interest: £0.00".

Next Statement is due on 8th of April.

Never rely on the estimated interest. It's based on the rate at the time the statement is produced, which was 0%.

The statement date or transaction date is irrelevant to the duration of the 0% period. If you look at their summary box or their website you'll see it clearly states:

Purchases:
0% for 3 months from account opening

http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&c=Page&canal=CABBEYCOM&cid=1210619550141&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateA2

Or on their website on the credit cards page it states

- 0% for 3 months on purchases from date of account opening


http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&canal=CABBEYCOM&cid=1237854722903&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateY2

Phone them right away to confirm the exact date that your 0% period ends. If you wait till the 8th April you will definitely be charged interest!!!

Typhoon2000

If you dont pay off the balance by the due date you will start earning interest from the 8 of April till you pay it off in full. So if you paid your April (next) statement in full anytime after the day it was issued, there will be interest to pay.

So if your pay only the minimum this month, your next statement in April will show an estimated interst. If you pay this bill in full at the latest possible moment , there will still be residual interest to pay on your May statement.

YorkshireBoy

"0% on purchases - when do I have pay off the balance?" should be one of the points to address when you first take out a credit card. For future reference you may find this activation call checklist useful...

http://www.stoozing.com/forum/YaBB.pl?num=1194457781/5

ginvzt

Thanks all! I'll give them a call and find out the exact date when it ends (it so easy with MBNA, as they say it their online banking!). It is no problem to pay it off - the money is there.

CannyJock

Typhoon2000 wrote: »

If you dont pay off the balance by the due date you will start earning interest from the 8 of April till you pay it off in full. So if you paid your April (next) statement in full anytime after the day it was issued, there will be interest to pay.

So if your pay only the minimum this month, your next statement in April will show an estimated interst. If you pay this bill in full at the latest possible moment , there will still be residual interest to pay on your May statement.

The 3 month period will be up before the 8th April, so there'll be interest before then.

ginvzt

I have just talked to Customer Services and was told that my 0% period started on December 8th, so it ended already. However, statement was produced only yesterday (8th of March), and still had estimated interest of £0.00. Well, I am still paying it off straight away (well, will take a few days as I have to transfer my money out of savings accounts and money have to come to Abbey/Santander).

Thanks everyone...

YorkshireBoy

ginvzt wrote: »

Well, I am still paying it off straight away (well, will take a few days as I have to transfer my money out of savings accounts and money have to come to Abbey/Santander).

You'll need to overpay it to settle the interest that's accruing between yesterday and the date which your payment clears onto the account.

If you don't, you'll have some residual interest on your next statement...and until you've settled two statements in full by their respective due dates.

ginvzt

Thanks - I have just made two separate payments. Unfortunately, I have realised that one of them had wrong sort code and A&L can't stop it, so I will have to wait for the money to come back to me before making a payment again...

Oh well, I'll sort this out soon enough!