0% Interest on purchases Credit Card?

J2010

Hello, I've never owned a Credit Card before but was curious to know if anyone here can advise me a little on a 0% Interest on Purchases card?

If it says 0% Interest on Purchases for 12 months, does that mean I can purchase something with the card and not pay any Interest as long as I pay off the balance within the 12 months or have I picked up on this the wrong way?

Thanks in advance!

Cycrow

it means that for the first 12 months you have the card, any purchases you make will not have any interest.

After 12 months you will start paying interest on the balance.

so if you buy something 11 months after opening the account, you will have just 1 month where its 0%

bengal-stripe

J2010 wrote: »

If it says 0% Interest on Purchases for 12 months.....

.......then all the purchases you do within those 12 months are interest free as long as you pay at least the monthly minimum on time. Once the 12 months are over, you will be charged the standard rate of interest on the outstanding balance (unless you have cleared the balance before interest kicks in). Important is that you always pay the minimum on time or the 0% interest deal is likely to be withdrawn.

"Purchases" do not include cash withdrawals, purchases of foreign currencies or betting transactions.

CLAPTON

J2010 wrote: »

Hello, I've never owned a Credit Card before but was curious to know if anyone here can advise me a little on a 0% Interest on Purchases card?

If it says 0% Interest on Purchases for 12 months, does that mean I can purchase something with the card and not pay any Interest as long as I pay off the balance within the 12 months or have I picked up on this the wrong way?

Thanks in advance!

yes indeed it does

you will however be required to make a payment each month , typical 1-3 % of the balance but if you clear the full debt within 12 months then no interest is paid.

if you have never had a CC before however you may have difficulty is getting one with 0% interest as they tend to be given to people with proven good credit records;

J2010

Thanks for the replies folks...

OK and can I set up my monthly payments by direct debit, or would I just need to remember to send them payment? Sorry I really have never had one before so not sure how this works.

Also, I have had credit before such as finance on goods, so that should surely show up on my credit score right?

And finally, does anyone know if a 0% Interest on Purchases Card will help improve my credit score further?

Thanks again!

Cycrow

as far as your credit report goes, theres no difference between a standard card and one with a promotional rate on, they will both build up a credit history.

how even, if you have never had a credit card before, you may find it more difficult to actually obtain a 0% card.

you can pay it monthly by either doing it manually when you get the statement, or setup a direct debit to do it automatically each month.
Most credit cards now have online accounts and make it easy to view and pay each statement, and can even get alerts sent to your phone when the statement is ready, when you need to pay, etc

CLAPTON

J2010 wrote: »

Thanks for the replies folks...

OK and can I set up my monthly payments by direct debit, or would I just need to remember to send them payment? Sorry I really have never had one before so not sure how this works.

Also, I have had credit before such as finance on goods, so that should surely show up on my credit score right?

And finally, does anyone know if a 0% Interest on Purchases Card will help improve my credit score further?

Thanks again!

you can indeed set up a DD for the monthly payment although always check the first one to make sure it has been set (the statement should say .. payment to be taken by DD on xxxx.

you don't have a credit score but you do have credit records : check them to see what they say

using a CC regularly does, in general, help to build a good credit record

bengal-stripe

Yes, you can set-up a monthly DD for the minimum payment (you might have to pay the first month manually).

A CC, well run without hitches, will improve your credit rating.

chattychappy

J2010 wrote: »

If it says 0% Interest on Purchases for 12 months, does that mean I can purchase something with the card and not pay any Interest as long as I pay off the balance within the 12 months or have I picked up on this the wrong way?!

Just to add to what the others have said, if you don't pay off the balance within 12 months, then you will start paying interest but only on what's left. Eg if you spend £1000 during the 12 months and pay off £850 then you will have £150 left outstanding. If you then pay that off 3 weeks later the interest will be applied to £150 for 3 weeks (probably 2 or 3 quid).