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0% transfer credit card - repayment of 1% of balance plus INTEREST?
Myshe
Posts: 2 Newbie
in Credit cards
Hi
Apologies for a silly question. I am considering applying for my first 0% transfer credit card. One thing that confuses me and that I can't find explanation for, is the wording of the minimal repayment terms:
BT and spending length & fee: up to 20 months 0%, no fee Representative variable APR: 18.9% (Official APR Example)
Min repay: Greater of 1% of balance plus interest or £5
Why do the minimum repayments consist of 1% of balance PLUS INTEREST when it's meant to be interest free for up to 20 months?
Thank you very much if anyone finds spare time to help.
Apologies for a silly question. I am considering applying for my first 0% transfer credit card. One thing that confuses me and that I can't find explanation for, is the wording of the minimal repayment terms:
BT and spending length & fee: up to 20 months 0%, no fee Representative variable APR: 18.9% (Official APR Example)
Min repay: Greater of 1% of balance plus interest or £5
Why do the minimum repayments consist of 1% of balance PLUS INTEREST when it's meant to be interest free for up to 20 months?
Thank you very much if anyone finds spare time to help.
0
Comments
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That is the normal T&Cs for most CCs as it takes into account what will happen at the end of the promo period otherwise they would have to give you new T&C's. The promotional interest rate on your card is 0% so your interest will be £0 and you will pay £1% of the balance + £0 (or £5 whichever is higher).
Never associate with idiots on their own level, because, being an intelligent man, you'll try to deal with them on their level - and on their level they'll beat you every time.
Being hated by idiots is the price you pay for not being one of them.
Jean Cocteau 1889-1963
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Thank you very much!0
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