M&S credit card

darrenbilly

Good afternoon,

I have a question in regards to the interest on an M&S credit card.

My sister got herself a credit card to pay for a holiday; it cost around £2600 (for her and her boyfriend). She is adamant that although she is paying it off monthly, she is being charged 0% interest. I can not see how this is true. The credit card is interest free for 15 months, but only if you pay off the full amount after 55 days, which she isn't.

So am I right in saying that she is in fact paying X% interest on the full amount, divided by 12 months?

Thanks!

Gromitt

No, your not right. As long as she is making the minimum payment, she has 15 months to clear the balance before incurring any interest.

darrenbilly

Glad to hear, at least she isn't being charged interest and doesn't realise.

thenudeone

0% interest is a special introductory offer which overrides the usual rules on interest, as long as the minimum payments are made on time and all other terms complied with.

Janie4Now

But she MUST make at least the minimum payment on time every month or it will revert to normal terms.

msph321

Correct. I've got the same card.

Gromitt wrote: »

No, you're not right. As long as she is making the minimum payment, she has 15 months to clear the balance before incurring any interest.

katejo

darrenbilly wrote: »

Good afternoon,

I have a question in regards to the interest on an M&S credit card.

My sister got herself a credit card to pay for a holiday; it cost around £2600 (for her and her boyfriend). She is adamant that although she is paying it off monthly, she is being charged 0% interest. I can not see how this is true. The credit card is interest free for 15 months, but only if you pay off the full amount after 55 days, which she isn't.

So am I right in saying that she is in fact paying X% interest on the full amount, divided by 12 months?

Thanks!

She will avoid paying interest after the 15 months interest free IF she pays off the whole balance every month. I have an M & S card which is no longer in the period of interest free but I very rarely pay any interest on it.

jpb77

So she will be paying approx. £175 per month for 15 months...or £200 for 13 months - given that 15 months at 0% starts from the day the account is opened. So by the time the first statement is produced with the £2600 probably 2 months have already passed!

With little information given by the OP, it does depend on when she used the card for the holiday purchase. You must remember that 0% purchase does not start from the day you made the transaction. So if 6 months have passed of the account opening and then used the card for the purchase - she will only benefit from 9 months at 0% for example. Just in case for any confusion!

eschaton

darrenbilly wrote: »

Glad to hear, at least she isn't being charged interest and doesn't realise.

Maybe you should have just took her word for it. It seems that she understands how credit cards and deals work a lot better than you do.