stupid question, but im confused, help.

xdqm

about credit card, there is 0% for 12 months on Purchases or so, and there is a Interest free period:Maximum 56 days for purchases if you pay your balance in full and on time.

what does this mean, it's 56 days or 12 months? the 56 days and interest free period really confused me, anyone who can explain it for me?

many thanks

LittleVoice

It's both - you're looking at two different aspects.

The 56 days is relevant for people who pay off in full each month and applies for all cards (subject to slight variation in the actual number of maximum days). It's the date of the purchase of an item to the time you pay for it. Basically if you pay off in full each month, you are not charged interest and therefore an item that just misses one statement and appears on day 1 for the next gives you the maximum period of having the goods and not paying interest.

The 0% for 12 months on purchases is an offer that you will not be charged interest in the year that is covered by the 12 months in relation to purchases you make - as long as you pay by the due date the minimum monthly payment as required by your card provider. You will be charged interest as soon as your 0% period ends, whatever the actual date of the purchase.

Hope that makes some sense.

xdqm

can i think as that 56 days is like i can pay it every 56 days instead of monthly? AND how can an item miss one statement?
also does it mean that if after 56 days, i still haven't paid the balance, they will start charge me interest? but if i am in the 0% period, they won't charge me anything?

PS: therefore an item that just misses one statement and appears on day 1 for the next gives you the maximum period of having the goods and not paying interest. i don't really get this one

sicker

No, you MUST pay the minimum amount reqested by the date advised on you statement.

John

King_Of_Fools

The 12 months 0% is an opening offer, once it finishes you move onto the standard terms. During the first 12 months you only have to pay the minimum payment each month and pay no interest.

At the end of the 12 months you have to pay off everything or you will start to pay interest. Once you have paid off every thing, any new purchases you make after the 12 months will have up to 56 days interest free period. In other words, if you pay the full amount each month you will pay no interest. If you do not pay the full amount you have to pay interest on the purchases from the day they appeared on your statement to the day you pay them off in full.

xdqm

King_Of_Fools wrote: »

The 12 months 0% is an opening offer, once it finishes you move onto the standard terms. During the first 12 months you only have to pay the minimum payment each month and pay no interest.

At the end of the 12 months you have to pay off everything or you will start to pay interest. Once you have paid off every thing, any new purchases you make after the 12 months will have up to 56 days interest free period. In other words, if you pay the full amount each month you will pay no interest. If you do not pay the full amount you have to pay interest on the purchases from the day they appeared on your statement to the day you pay them off in full.

what does 'if you do not pay the full amount' mean? does it mean pay every month or every 56 days? in other words, is the interest counted from the date of transaction until they receive the payment from me, but if i pay it in 56 days, all the counted 56 days' interest won't be chargable? OR they start to count the interest on the 57th day?

CLAPTON

i try explaining

every month you will receive a bill (assuming a balance)

a. it will say how much you owe in total (which are can pay if you want to )
b. it will say the minimum amount..you must pay at least this amoiunt
c. it will tell you when the money must be received

now every card will charge NO interest if each and every month you pay off the FULL amount by the due date.

for special offers like 12 months 0% interest , it means that you only need to pay the MINIMUM amount by the due date and then they will charge you NO interest.


Now how does 56 days arise: lets look at an example
suppose your statement date is 2nd of the month
and they allow 25 days to pay i.e. by 27th of the month

now suppose you spend on the card on the 3rd of March (say) (i.e. one day after the March statement date).

Now that spend will appear on the April 2nd statement i.e. 30 days later and you have 25 days to pay i.e. 27 April

so you spent the money on the 3rd on March and only need pay it back on the 27the of april .. approximately 55 days.

lisyloo

is the interest counted from the date of transaction until they receive the payment from me, but if i pay it in 56 days, all the counted 56 days' interest won't be chargable? OR they start to count the interest on the 57th day?

It's the former.
If you pay within the time limit it's free.
If you pay on day 57 they charge for the ENTIRE period from the purchase date (so one day late can cost you nearly 2 months interest).

Be careful to allow your payment time to reach them
e.g. if you pay electronically this usually takes 3-4 working days.

LittleVoice

xdqm - I suggest you forget about the 56 days. It seems to be confusing you - or at least it's making it difficult to answer your questions. When you get to grips with it and you don't have 0% on purchases, you can use the knowledge to plan big purchases.