Credit card - interest free period

Nick_o_las

Hi

I got my first credit card in March with an Introductory Annual Rate of 0% for 13 months on purchases.

However, later on in the summary box it states that the interest free period is a maximum of 56 days for purchases if you pay your balance in full and on time, and have paid the previous month's balance in full and on time.

So does the 56 day rule only apply once the 13 months is up? I have a rather large credit card bill this month and was hoping to pay half now and half next month without paying any interest.

My bill states that if I make the minimum payment my estimated interest next month will be £0 so presumably it's ok to not pay it all immediately without incurring fees?

Sorry I'm sure this is all really obvious but I am very new to all this!

Many thanks
Nick

thenudeone

Your introductory 0% offer overrides the normal rules about an interest free period on purchases.
As long as you keep to the terms you will not be charged interest for 13 months.
You need to pay the full balance off just before the 13 months is up, to avoid any interest. Don't wait until the next statement after the 13 months is up because it will already have interest on it.

From then on, you need to pay the full statement balance off every month by the due date to avoid interest charges

Tixy

Yep, its up to 56days after the 0% deal finishes.

dtsazza

To (perhaps) clarify - the "up to 56 days interest free" period is a standard feature of your account, which means that you won't be charged any interest on purchases if you pay the entire statement balance in full by its due date.

If you don't pay the whole balance by that point, you will be charged interest on your outstanding balance at the card's APR for purchases.

For the first 13 months your card's APR for purchases is 0%, so it doesn't make any difference in this case, and the balance can stay on it. But after the 13 months finishes, you'll then get charged interest if you have outstanding balances beyond the due date.

bengal-stripe

dtsazza wrote: »

For the first 13 months your card's APR for purchases is 0%, so it doesn't make any difference in this case, and the balance can stay on it.

But make sure, you pay the minimum religiously on time and you do not ever exceed your credit limit.

Otherwise the CC is likely to withdraw the 0% deal.

thenudeone

Tixy wrote: »

Yep, its up to 56days after the 0% deal finishes.

Don't think so. The purchases will start being charged interest on the first day after the 13 months is up, even if the next statement after that is paid in full, because the conditions for not charging interest on purchases have not been met (i.e. the statement has been paid in full and the previous statement was paid in full as well.)

Tixy

thenudeone wrote: »

Don't think so. The purchases will start being charged interest on the first day after the 13 months is up, even if the next statement after that is paid in full, because the conditions for not charging interest on purchases have not been met (i.e. the statement has been paid in full and the previous statement was paid in full as well.)

Not what I meant, my response was brief admittedly but because the OP seemed to understand it better than a lot of people who ask the question.

I meant the 56day clause comes in to effect after the 0% period ends, which is what the OP asked, though I could have been clearer.