Understanding CC repayments?

DK-Tandy

Ive been looking into a credit card which offers 15 months 0% interest on purchases, so im under the impression can i can purchase everything and as long as its all paid off after the 15months i dont incur any interest.. but reading there T's and C's i came accross this,

Interest-free period

- Maximum 55 days on new purchases if you pay your balance in full and ontime each month
- No interest-free period for cash advances or balances transfers
- This is subject to any interest free promotional offer

does that mean, its not actually 15 months interest :S i dont get what they mean by the 55 day, is it 15 months free purchases as long as its paid off after 55days or not?

any help welcomed

[Deleted User]

the 15 months is 15 months,UNLESS you are late with or miss a payment when the deal is off,best way to avoid that is set up a DD for min payment every month

bengal-stripe

DK-Tandy wrote: »

.....so im under the impression can i can purchase everything and as long as its all paid off after the 15months i dont incur any interest.. but reading......does that mean, its not actually 15 months interest.....

These are the standard conditions, once the promotional 0% interest period has ended.

During the interest-free period you have to pay every month the minimum on time and never exceed your limit, or the interest-free deal might well be cancelled by the CC. As long as you fulfil those conditions, you won't be charged interest for 15 months. Once the deal has expired, the standard conditions (as listed) will come into force.

DK-Tandy

can you choose to pay a different amount each week? as long as its above the minimum?

sistafromanothermista

:wave: yeh but you normally need to pay this over and above by standing order/billpayment online or directly through the cards website.

redpete

DK-Tandy wrote: »

can you choose to pay a different amount each week? as long as its above the minimum?

Yes, but make sure that you make at least the minimum payment between the monthly statement date and the payment date on that statement, regardless of how much you pay before the statement date this will not count towards the minimum payment for that month.

DK-Tandy

@ RedPete, what you saying is, for example, my monthly miniumum payment is £5.. I must pay the £5 between statement date and due date, but any money paid after that is additional..

EDIT:

Each month you must pay to us at least the minimum
repayment, which is either the total interest and default charges
together with 1% of the principal shown on your monthly statement or
2.5% of the outstanding balance shown on your monthly statement or
£5, whichever of these amounts is highest. If the balance shown on your
monthly statement is less than £5 then that will be the amount of the
minimum repayment. You must pay the relevant amount to us within 25
days of your statement date (“the Repayment Date”). The amount of the
minimum repayment and the Repayment Date will be shown on your
statement.

now for £410, what would be the minium, never owned a CC before so this is all new, im only used to my debit card which im always in +£ in..

now, i wont have any "total interest" will i because i get 0% interest for 15 months or am i incorrect? and whats the default charges? could someone please enlighten me?

Would i be correct in saying my monthly payable amount would be £10.25? As i wouldnt pay the £5 as the 2.5% of the outstanding balance would be greater price to which i owe?? (£410 * 0.025 [2.5%] = £10.25 ??)

am i understanding this correctly? Sorry for being a pain i guess we have to learn somehow..

also, what is the "principal shown on your monthly statement", what do they mean by principal ?

redpete

DK-Tandy wrote: »

@ RedPete, what you saying is, for example, my monthly miniumum payment is £5.. I must pay the £5 between statement date and due date, but any money paid after that is additional..

Yes, and the additional payments do not count as an 'advance' against the next month's minimum.

...now, i wont have any "total interest" will i because i get 0% interest for 15 months or am i incorrect? and whats the default charges? could someone please enlighten me?

correct

Would i be correct in saying my monthly payable amount would be £10.25? As i wouldnt pay the £5 as the 2.5% of the outstanding balance would be greater price to which i owe?? (£410 * 0.025 [2.5%] = £10.25 ??)

correct

am i understanding this correctly? Sorry for being a pain i guess we have to learn somehow..

yes, yes. Good to see somepne trying to work it out (and succeeding) instead of just saying it's all too difficult.

also, what is the "principal shown on your monthly statement", what do they mean by principal ?

It's the capital owed. So if the statement showed £400 from spending or a balance transfer, £15 interest and £12 late payment charges the total balance would be $427 of which the £400 would be the principal (at least, I'm fairly sure that's what it means)..