Interest free credit cards

barrowfordred

Sorry if this sounds a daft question but -
There are credit cards that offer 0% interest free for purchases over say 12 months . Yet in the fine details I see "interest free period - 51 days"
So, if I spend £1000 the day I get the card will the interest free period for this purchase be 12 months or 51 days?

20aday

The 51 day rule applies to any minimum payments due on the outstanding balance.

If you fail to make at least the minimum payment most lenders will remove the "interest free" part of the agreement and charge you interest at the standard rate.

Using the Barclaycard website as an example in their Summary Box for an interest free credit card if you borrowed £1,000 for a year on the credit card and repaid £100/month you'd be charged no interest for the first 12 months.

grumbler

In fact it's 'up to 51', not just 51. It depends on when the purchase is made during the billing month.
It's a regular interest free period you are getting on purchases if you pay your statement balance in full. Otherwise you pay the standard interest rate that during the promotion period is replaced with 0% providing that you pay at least the minimum amount.

20aday wrote: »

The 51 day rule applies to any minimum payments due on the outstanding balance.

This is a very confusing statement.

If you fail to make at least the minimum payment most lenders will remove the "interest free" part of the agreement and charge you interest at the standard rate.

This is correct - for the introductory 0% , not for the regular interest-free up to 51 days that you get only if you pay in full.
If you fail to make a minimum payment during the promotion period 0% reverts to the standard interest rate.

Herbalus

barrowfordred wrote: »

There are credit cards that offer 0% interest free for purchases over say 12 months . Yet in the fine details I see "interest free period - 51 days"

Not a daft question, as we are all exhorted to read terms and conditions, and the number of people on this forum who complain when they fall of them are numerous indeed!

In this case, your "up to 51 days" interest free period is the standard for your card, which is why it is in the terms and conditions. The 12 months interest free is the introductory offer, which is normally absent from the standard terms and conditions. Presumably it's left out for clarity. You'll normally find separate introductory terms and conditions.

As the others say, you need to make at least the minimum payment to keep the deal. That will also be in the introductory terms and conditions.

barrowfordred

Thanks all, clear now.