Meaning Of ''upto 56 days interest free''

lauren101089

Heya,

i'm looking at taking out a capital one card, the capital one progress.

I cannot get a 0% on purchases etc because i'm not eligable

it says upto 56 days interest free. Does this mean that if i spend on it throughout the month instead of using my debit card then paying the balance off at the end of every month i won't pay any interest?

Thanks

CLAPTON

virtually all credit cards work on the basis that if you pay the balance in full by the due date then you pay no interest

lisyloo

Yes.
You get a statement after (say) 28 days and then have (say) another 28 days to pays (I don't know the exact number but the total is 56).
Note it says "UP TO 56" because only spending on day 1 of the credit cycle will give you 56 days.
Spending on day 2 will give you 55 days and spending on day 3 will give you 54 days.
Spending on day 28 would give you 28 days.

But yes, provided you pay off the full balance on time (allowing for payment clearance) then you will pay no interest for PURCHASES (note that cash advances are different and this means money drawn from ATMS, buying foreign currency and putting credit on gambling sites).

lauren101089

Thank You, I'm just trying to find a different way of spending so was planning on doing so on a credit card rather than a debit card then paying the balance off every month before I accrew interest.
Know anyone who does this? I thought it may of been a good idea to see exactly what i spend on personal items rather than my bills etc all going out together.

CLAPTON

lauren101089 wrote: »

Thank You, I'm just trying to find a different way of spending so was planning on doing so on a credit card rather than a debit card then paying the balance off every month before I accrew interest.
Know anyone who does this? I thought it may of been a good idea to see exactly what i spend on personal items rather than my bills etc all going out together.

reread by post above

lisyloo

Know anyone who does this?

Lot of people do it.
I do it because

1) I get section 75 protection if a company goes bust or doesn't deliver.
2) I get cashback/reward benefits.
3) I get insurance/warranties on various items.
4) I can pay my bills next month hence when my salary comes in I know exactly how much I have to pay and can save any disposable income. Otherwise I'd have to put an unknown amount aside for the monthly expenses.
5) Provided you pay it off on time, you build up a good credit history and can in future get a mortgage/loan.
6) It's convenient to pay for hotels/car hire or emergencies.

So provided you pay of on time (DD is easiest way to enure that) and it doesn't encourage you to overspend, then credit cards are marvellous things, and loads of poeple use them this way.
Unfortuantely some people think it's extra money and spend beyond their means.

chattychappy

The way to think of the interest question is that interest is calculated on purchases from the date of transaction but then not applied if you pay off the statement balance in full by the full date.

If you pay short by even £1, then all the interest is applied - ie right back to the dates of transactions.

Sometimes people are shocked by the effect of this - eg statement balance is £1000, they pay £900, and then see interest of, say, £30. We see posts complaining of £30 interest on £100 - how can this be right? But of course it's interest on the £1000 until £900 was received and on £100 after that. Interest will continue to run until payment is received in full, so usually you need to pay off two statements in full in order to see it no more interest appearing.