0% transfer credit card - repayment of 1% of balance plus INTEREST?

Myshe

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.

molerat

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).

Myshe

Thank you very much!