credit cards with 0% on purchases - not all they seem??

AmyMi

Hello all

I am considering applying for a credit card which does 0% on purchases for 12 months (Tesco/Virgin/Sainsbury's/Barclaycard).

My plan is to use it just once, for a purchase of about £1000, then to pay off that £1000 over 12 months so the amount is paid off completely by the end of the 12 month interest-free period.

I have noticed that the Ts & Cs for all the cards say there is an interest free period of, say, 56 days (Barclaycard) from the date of purchase - "if you pay your statement balance in full and on time each month."

Surely by paying off your statement in full and on time each month, you wouldn't accrue interest, even on a regular non-0% credit card??!!

Does this mean that if I make one big purchase only, I only have an interest-free period of 56 days??

Would appreciate your help on this one!

williham

If you always pay your bill in full then you get interest free for up to 56 days depending on when you make the purchase and your statement date etc. - This applies after the 12 months interest free.

12 months interest free is exactly what it says, you will only need to make the minimum payment or you can pay off 12 equal amounts as you choose.

Paul_Herring

AmyMi wrote: »

Hello all

I am considering applying for a credit card which does 0% on purchases for 12 months (Tesco/Virgin/Sainsbury's/Barclaycard).

My plan is to use it just once, for a purchase of about £1000, then to pay off that £1000 over 12 months so the amount is paid off completely by the end of the 12 month interest-free period.

I have noticed that the Ts & Cs for all the cards say there is an interest free period of, say, 56 days (Barclaycard) from the date of purchase - "if you pay your statement balance in full and on time each month."

Indeed, but for the first 12 months, the interest rate is 0%, not 25%/30%/whatever the regular rate is.

Surely by paying off your statement in full and on time each month, you wouldn't accrue interest, even on a regular non-0% credit card??!!

Yup.

Does this mean that if I make one big purchase only, I only have an interest-free period of 56 days??

Technically, yes, but as I said above, the interest rate after that (up to the 12th month) is 0%.

AmyMi

Thanks for replying so quickly guys, that's helped a lot.

david39

Beware, though.

For some of the 0% for 12-month purchase cards issued by retailers like Amazon, say, the O% for 12 months only applies to purchases made from that retailer, otherwise they work just like any other card - interest added to purchases from other sources after 56 days.

Just check the small print as to whether the extended period applies to all purchases or just those from selected retailers.