Credit card - the basics

chippy_250

I've never had one before but I'm thinking of getting one. I have a question which might sound really dull but here goes...

1. 0% Purchases for 3 months - What does this mean?

My bank told me that if I take out a card with them and pay the balance off in full within 56 days I'll NEVER pay interest. So what does 0% for the 3 months mean?

YorkshireBoy

Purchases always accrue interest from day one, ie the moment you enter your PIN.

If, and only if, you clear the balance in full by the due date this interest is waived.

During any introductory period, ie your 0% for 3 months, the operation is exactly the same. However, the interest is calculated at 0%...rather than the standard 15.9% (or whatever) APR.

Clear?

chippy_250

Ok so your saying then most cards have a 0% interest fee period if you pay it all off by 56 days for example yes? But they have special offer as well which means for the first 3 months you won't pay any interest regardless of the 56 day interest period anyway?

YorkshireBoy

chippy_250 wrote: »

Ok so your saying then most cards have a 0% interest fee period if you pay it all off by 56 days for example yes?

Only on purchases. Cash advances and balance transfers almost always attract interest.

But they have special offer as well which means for the first 3 months you won't pay any interest regardless of the 56 day interest period anyway?

Yes.