Interest and Charges Questions

zudecke

Hi all,

I have 2 CCs.. a Vanquis and Cap one

Wondering what the interest-free or no charge durations from when I purchase something? I.e. the time from when I spend to when I get charged interest?

Also how do the charges work for withdrawing cash?

Thanks,
Z

YorkshireBoy

zudecke wrote: »

Wondering what the interest-free or no charge durations from when I purchase something? I.e. the time from when I spend to when I get charged interest?

Assuming you settle your bills in full each month it all depends on when (in the statement month) you make your purchase.

Take a look at your T&Cs or summary box and you'll see the number of days interest free each card offers. The maximum will be shown, ie its 56 days for new Vanquis customers (yours may be different). To work out the minimum (ie for a purchase made the day before statement date) subtract 30 from the number shown in the T&Cs/summary box.

Also how do the charges work for withdrawing cash?

Generally a 3% fee and interest accrues from the moment you enter your PIN and until you settle 2 consecutive statements in full...but don't even go there!!

chattychappy

General rule is you are charged interest on every transaction from the transaction date until payment arrives.

The exception is that if you pay the whole balance in full, interest on purchase transactions that have appeared won't be applied. Pay just 1p short and interest will be applied according to the general rule. Now once that has happened, even though you might pay the next statement in full, you will still get a little more interest on the next statement because interest will still be running between statement generation and when payment arrives. (Hence the rule about paying off two consecutive statements in full to stop interest being applied. But do note, interest on the second statement is typically much less.)

Don't just think you get 56 days interest free from date of purchase or whatever. You have to think in terms of statement cycles. You could get up to 56 days (or whatever they quote) or you might end up getting nothing at all. Just depends on the timing of your transactions and payments.

Interest is always applied to cash transactions and is generally subject to an upfront fee.