Help for a newbie please

Cheeseplant_2

Hi folks,

Can someone please explain a credit card thing to me:

0% on purchases for 12 months - does that mean that as long as I pay at least the minimum payment each month then I wont be charged any interest on the balance till the 12 month deadline is done (by which time it makes sense for me to have paid it all off)

I only ask cos I am bit confused with the Tesco card that spouts on about a 46 (or 56 depending on which card) interest free period - I though it was interest free until the deadline. Or is this only for AFTER the 12 month period is up?

I have applied for a Halifax One Account already hoping I have the right understanding of it.

Also - what is stoozing?

Thanks for any help.

it'sme_2

right.....

Yeah you're right, as long as you pay the min payment every month and clear the whole balance by the end of the promotional period you will incure no interest. But you will lose your 0% if you make a late payment or go over your limit.

the start date of the promo on most cards will be the date the account was opened (check your credit agreement) not from the day you actiavte the card or the day you do any balance transfers.

if your card has a promotion for balance transfers and retail purchases, check the time period of both. some companies work on the basis that any payment pays off part the of the balance with the lowest interest rate first. If you have 0% on bt's for 12 mths and 0% on purchases for 3 mths, then any payments will be paying off your 0% bt before your retail purchases at your normal APR. So the purchase part of the balance will keep incurring interest while your paying off the BT.

some cards are a bit crafty, read your terms and condition's, I know it's boring but credit companies make their money from people who don't bother reading paper work. And i'm not suggesting can't be bothered, I wasn't and it got my in trouble!!!!!

I'd get one card for bt's and one card for retail purchases and keep them seperate.

TrickyDicky

Cheeseplant wrote: »

I only ask cos I am bit confused with the Tesco card that spouts on about a 46 (or 56 depending on which card) interest free period - I though it was interest free until the deadline. Or is this only for AFTER the 12 month period is up?

If you dont pay off in full items on your statement will not aquire interest until 46/56/whatever days after you purchased them (not cash as this is charged the moment you take it out.
I pay off in full each month and have paid a penny in interest since I opened the card. Its nice not paying for something for up to 2 months

sicker

Cheeseplant, you will not be charged interest on you purchases as long as you pay the minimum balance each month. This 'perk' finishes after 12 months when you will start to pay interest if youe total balnce is not cleared.
I would suggest tou forget about stoozing, it's a thing of the past since balance transfer fees have been introduced. What happened before that was that on certain cards you could transfer most of you credit limit to your bank account (then onwards to the likes of ICICI paying 5.5% interest) where it would be making you interest until your free balance transfer period was up. You would then clear the oustanding balance on you card with the cash in you current/savings account leaving you with the interest you have accrued over the 0% balnce transfer period. Nice whilst it lasted.

John

bigdog69

Hi, I'm new to this as well and have a follow-up question.
I'm intending to get the HSBC card which charges a 2.5% fee on the BT. How is this fee paid?
Do I have to pay it in advance?
Do they add it to the balance on my new card? - If so, will I be charged interest on the transfer fee (despite the balance being at 0%)

Many thanks

RTNI

bigdog69 wrote: »

Hi, I'm new to this as well and have a follow-up question.
I'm intending to get the HSBC card which charges a 2.5% fee on the BT. How is this fee paid?
Do I have to pay it in advance?
Do they add it to the balance on my new card? - If so, will I be charged interest on the transfer fee (despite the balance being at 0%)

Many thanks

It is added on top of the BT amount that you wish to transfer. The Fee will be charged at the same rate of interest as the BT. (which i assume is 0% in your case)

RT