Don't want to make a vanquis mistake ?

pearls_of_wisdom

Hi, story so far in process of building credit rating and recently gained 1st credit card with vanquis no jealousy please:rotfl:just about to activate card and wanted readers confirmation that my understanding is correct 1.£250 limit probably spend recommended 10 to 20% of limit per month approx £40 and then clear in full by direct debit without fail each month. 2.I know i need to check statement(NOT YET RECEIVED) to check d.d has been set up. 3.Little bit confused over interest free 56 days(2 consecutive monthly payments) what happens to interest on modest 1st months outlay ? 4.I understand if i always clear by d.d all monthly card expenditure in all future months(MONTH 3 ONWARDS) this will be interest free also. I understand for experienced visitors of this site this is basic stuff to you, and i appeal to your knowledge in particular(POINT 3) that i'm not about to drop a clanger many thanks for your time.

cse

If you only use you card for purchases (and not cash withdrawals), you won't see any interest on your first statement. If you pay the full balance of your first statement by the due date, you won't be charged any interest on your second statement. And so on - if you only make purchases and always pay the full statement amount by the due date, you won't be charged any interest ever

The '2 consecutive monthly payments' bit becomes relevant if you do start paying interest for whatever reason. Say for example you could only afford the minimum payment one month, then immediately went back to clearing the balance in full - it would require TWO consecutive months of full payments before you returned to the situation of paying no interest

Hope this makes sense

pearls_of_wisdom

cse wrote: »

If you only use you card for purchases (and not cash withdrawals), you won't see any interest on your first statement. If you pay the full balance of your first statement by the due date, you won't be charged any interest on your second statement. And so on - if you only make purchases and always pay the full statement amount by the due date, you won't be charged any interest ever

The '2 consecutive monthly payments' bit becomes relevant if you do start paying interest for whatever reason. Say for example you could only afford the minimum payment one month, then immediately went back to clearing the balance in full - it would require TWO consecutive months of full payments before you returned to the situation of paying no interest

Hope this makes sense

many thanks cse very well explained this point 3 is now clearer :T

pearls_of_wisdom

can anyone provide further clarification many thanks

Diaaaz

The way it works from my understanding is as follows;

If you pay any given months balance in full, you don't pay interest.
If you get a statement and don't clear the balance, you get interest charged from the post date until a payment clears that balance. As such, if you pay one month minimum then full from then on, the interest you see is;

Month 1 - no interest, min payment made
Month 2 - interest from month 1, and this months interest, full payment made
Month 3 - interest from balance on month 2, until the full payment was recieved, no interest on any purchases on that month IF full payment

SnowTiger

pearls_of_wisdom wrote: »

can anyone provide further clarification many thanks

What additional clarification are you looking for?

If you pay your Vanquis statement in full each month you don't pay any interest.

If you don't pay it in full you pay interest from the day of the purchase.

56 days interest free credit means that if you make a purchase on the day your statement is produced you won't have to pay for it until upto 56 day later.

For example, let's assume your statement is produced on the first of each month:

1st May - you purchase an item using your card;
1st June - you receive a statement that includes the item you purchased on 1st May;
25 June - you pay the statement you received on 1st June.

Of course all this is for purchases. You're charged interest on cash advances from when you receive the cash.

pearls_of_wisdom

many thanks i fully intend to pay in full each month without fail:T

pearls_of_wisdom

many thanks snow tiger i just really wanted clarification that i wasn't sleepwalking into mistakes thanks once again:T