Question

faultylightbulb

Hello

I have previously always paid off my credit cards and closed them once the 0% has ended. This might seem like a silly question but i want to put a deposit down of around £400 and will pay it off in 2 months time. What will it cost me to have £400 on a credit card at 24% APR for two months? is APR just the 24% over the two months untill i close it?

lisyloo

24% is Annual (that the A in APR or Annual Percentage rate).
So roughly that's 2% per month.

So £400 for 2 months is 4% which is £16 in total.
This assumes you keep £400 on there for the whole 2 months.

If you pay off £200 per month, then it's £8 for the first month and £4 for the second, so £12 in total.

bengal-stripe

faultylightbulb wrote: »

......i want to put a deposit down of around £400 and will pay it off in 2 months time.

It depends what the deposit is for, but you might not be able to use a Credit Card.

So, enquire beforehand if payment by CC is acceptable.

faultylightbulb

oh thats great! i thought it would be a lot higher than that

The deposit is for a holiday - £20 charge for using a credit card but other than that it should be ok.

YorkshireBoy

If the card is empty now, and you've paid the last two statements in full, then if you pay the deposit the day after statement date you might be able to avoid interest altogether due to the 'up to 56 days interest free' benefit.

faultylightbulb

the card will be paid off in full at the end of this month and the interest free period ends the 2nd of November.