Question about 0% purchase card

supermarketdetox

Ok, this may seem very obvious, but I would like to make double triple extra sure I understand before I use the card.

This is my first credit card, I got the Halifax 0% purchase card with a £1500 limit. I think I will use about £1100 of it, I want to buy a new computer and from what I understand this way is cheaper than getting store financing which was about 18%APR.

I read through the agreement I got today, the exact wording is:

4. Interest rates
4.1 Our standard rates are:

• 25.95% p.a. (variable) for cash withdrawals, and
• 25.95% p.a. (variable) for all other transactions and amounts payable by you under this agreement.

4.2 Our current rates for Promotional Transactions are:
0% p.a. and a charge of 3% for Balance Transfers made in the first 90 days after we open your account. Interest on the charge is payable at the promotional rate.

0% p.a. for Purchases. This rate is fixed for 14 months from when we open your account.

So, if I make a purchase of (say) £1200, and pay off £100 a month for 12 months, I will not owe a penny of interest?
But If I make a purchase of £1200 with 6 months left of my 14 month 0% purchase card, and pay £100 a month, I will pay £600 at 0% interest and then the remaining £600 will be subject to 25.95%APR?

(I think I know the answer, but want to double triple check to avoid an "oh crap" moment in the future)

jonesMUFCforever

Yes I agree with your last paragraph.

You could do a balance transfer to a new card if you cannot pay it off before the promotional period runs out.