What happens at the end of 0% deals?

shortcrust

What happens at the end of 0% deals? Do you get a letter or a note on your statement saying how much you have to pay by a certain date to avoid interest, or do you just have to work it out for yourself?

I've had my Halifax All in One since May last year and only expected six months 0% on purchases. It's only a few hundred and had slipped under my radar despite a note on my calendar. However, the 0% is still there - my latest statement has estimated interest of £0.00 next month and says my rate is 0% for purchases as per my agreement.

So, doubly confused. I'm getting a rate I don't think I ought to have, and I'm not sure if I should clear the balance now or leave it as long my statement says 0%.

The_Boss

Some I've had in the past have given the current interest rate but you will generally not be warned that it is expiring other than when you see the 'estimated' interest on your next statement.

There was a tool from here where you record the expiry date of the offer and it emails you in advance of the 0% ending.

shortcrust

Thanks, will check out the tool.

So does that mean if the rate changes in this statement period I'd end up paying interest even if I clear the next balance? I'll feel silly if I end up paying half a month's interest after spending ages looking at which balance transfer fees will work out two quid cheaper.

Odd that the promo rate is going on longer than expected. Anyone else had the same thing? I wonder if Halifax could/would charge interest retrospectively if the 'error' is noticed.

YorkshireBoy

Every Halifax statement for every Halifax card I've held (5 or 6 over the years) has had the 0% end date clearly shown throughout the duration of the intro period...and often two dates (one for BTs and one for purchases).


Could you check your statement again? Maybe you've missed it.


However, I don't think the "All In One" card has ever had such a short 6 month intro period. By definition, "All In One" meant the duration was the same for both BTs and purchases, so I'd expect at least 12-15 months.

shortcrust

YorkshireBoy wrote: »

Every Halifax statement for every Halifax card I've held (5 or 6 over the years) has had the 0% end date clearly shown throughout the duration of the intro period...and often two dates (one for BTs and one for purchases).


Could you check your statement again? Maybe you've missed it.


However, I don't think the "All In One" card has ever had such a short 6 month intro period. By definition, "All In One" meant the duration was the same for both BTs and purchases, so I'd expect at least 12-15 months.

It definitely doesn't give an end date to the promo period on the statement. I'm calling it an All in One card because it looks like one, but I got it as an existing Halifax customer via a postal guaranteed acceptance offer. There's never been a name mentioned (All in One, Clarity etc) and I remember when I applied that it's administered by Lloyds of something like that. It's the type that begins 525303 with a different customer service number than most Halifax cards. (see https://forums.moneysavingexpert.com/discussion/4559967)

I was almost certain it was 6 months but I'm questioning myself now.:)

YorkshireBoy

shortcrust wrote: »

It definitely doesn't give an end date to the promo period on the statement.

Very strange!


In your position I'd give them a call and ask them for the 0% end date.

Sabreman64

I too have a question about what happens at the end of a 0% offer on a credit card. How is interest calculated at the end of the 0% interest period if the balance has not been paid off in full?

Let's say I have a credit card with a 12 month interest-free period on purchases (usual APR is 19%). I spend £3000 on the card and pay off £2700 before the interest-free period ends, leaving a balance of £300. Will the interest be calculated based on that balance of £300, or is it calculated retrospectively on all the purchases made during the 12 month interest-free period?

Cycrow

Sabreman64 wrote: »

I too have a question about what happens at the end of a 0% offer on a credit card. How is interest calculated at the end of the 0% interest period if the balance has not been paid off in full?

Let's say I have a credit card with a 12 month interest-free period on purchases (usual APR is 19%). I spend £3000 on the card and pay off £2700 before the interest-free period ends, leaving a balance of £300. Will the interest be calculated based on that balance of £300, or is it calculated retrospectively on all the purchases made during the 12 month interest-free period?

yes you will pay interest on what ever balance you have left at the time. Interest is charged per day, so is based on the daily balance, then added at the end of the month

wellsy07

The intest charged per day is my confusion.....

Isnt it 18.9% divided by 12 months

So. 1.57%onto the Monthly balance? Or am I just a Muppet
In thinking thus way

Just when the Mrs had a rbs and it had like like a hundred quid on
It wasn't. Eye watering intrest

YorkshireBoy

wellsy07 wrote: »

The intest charged per day is my confusion.....

Isnt it 18.9% divided by 12 months

So. 1.57%onto the Monthly balance? Or am I just a Muppet
In thinking thus way

18.9% is the APR, and is a compounded rate.


The interest charged per day is the quoted monthly rate x 12 / 365.


But it's best to start your own thread, rather than jump on someone elses thread with an irrelevant question.

nance

i dont know if i have any unused credit cards how do i cancell them