credit card newbie...

mr_mitch

Hi

I haven't had a credit card before... but I've been accepted for the virgin one.

Can someone please explain what is meant by this clause in the T&C's:

Maximum 50 days on purchases only, if you pay your statement balance in full and on time every month.

Tixy

If you buy something on say 4th July and your next statement comes on 28 July and says that your due date for payment is the 14 August, then providing you pay the full balance so it reaches your account by the 14th August the you won't pay any interest on that amount (the above example is 41days when you could have the credit and not pay any interest).

When it says 50days this is the maximum possible with that particlular card (i.e if you made a purchase the day after your statement date and paid on the very last date you could (ie the due date shown on the statement).

If when your statement comes you only pay the minimum amount due (or anything less than the full balance) then you will be charged interest on the purchase from the date of purchase until the date the debt is paid off in full, calculated on a daily basis.

If your card has a 0% introductory offer of 14months at 0% interest this is entirely seperate and means that as long as you make at least the minimum payment on time each month and stay within your credit limit you won't pay any interest for the first 14months from the date you opened the account.

mr_mitch

thanks - I'm still not sure I fully understand...

The card has 12 months 0% on purchases..... If I made one purchase when the card comes, and I pay it off before 12 months is up..... would I pay any interest then?

Do you mean that the 50 day rule only comes into effect when the 12 months 0% introductory offer has expired?

td_007

mr_mitch wrote: »

thanks - I'm still not sure I fully understand...

The card has 12 months 0% on purchases..... If I made one purchase when the card comes, and I pay it off before 12 months is up..... would I pay any interest then?

Do you mean that the 50 day rule only comes into effect when the 12 months 0% introductory offer has expired?

You need to pay the minimum amount each month to keep 0% time period valid. At the end of 12 months you need to pay off the entire amount or you will begin paying the standard rate of interest. The key is set up a direct debit to pay the min amount.

Tixy

Yes effectively. The 50days would be after the promotional deal.

Just a quick tip - To make sure you keep the promotional deal you must make your minimum payment on time every month, otherwise they take the deal off you. For the first omnthif you don't have a DD set up in time then make sure you get the first payment made in plenty of time (it can actually take 5days to reach your credit card account.) - its a common problem/mistake people make so just thought I'd mention it.

mr_mitch

thats great - thanks everyone for helping! it's all another language to me.

I will set up a direct debit as soon as I get it, to prevent late payments.

Numpty_Monkey

Mr mitch please ignore what the tool Never-In-Doubt.posts

this is not the niddy we all respect, trust and care about
the prat who is posting is a "Troll"

carol01

mr_mitch

dont worry - I'm new on here but I've been using internet forums for many years so am used to trolls, etc.

Thanks to everyone who has genuinely helped

pixiechick_2

Troll has gone