halifax clarity - purchases interest rate

lexia

Hi all, I'm a bit confused regarding how charges are applied for this card - Halifax clarity. The statement says there's an interest free period for new purchases: "Maximum 56 days for purchases if you pay the full balance shown on your previous and current statement on time".

Previous statement amount (25 Jan statement) is £0. Current balance £0. Next statement date is 25 Feb.

If I purchase something for £500 on the 21st of Feb using this card, but pay off the £500 on the 26th of Feb (5 days later), is there any interest payable?

YorkshireBoy

Something bought on the card on 21st Feb will appear on the statement dated 25th Feb. Why would you want to pay it before the payment due date of (probably) 17th March or thereabouts?

lexia

Well I'm not sure whether it attracts any interest in that case - using the dates I posted. Does it?

This is the full text from the Halifax statement.

Interest-free period
Maximum 56 days for purchases if you pay the full balance shown on your previous and current statement on time.
No interest-free period on balance transfers,money transfers or cash withdrawals.

Interest charging information
You will not pay interest on new purchases if you pay the full balance shown on your previous and current statement on time. Otherwise,the period over which interest is charged is as follows:
Purchases, Cash Withdrawals, Balance Transfers & Money Transfers: From the date the item is debited to your account until the balance is paid in full.

YorkshireBoy

The second section answers your question (that there will be no interest payable on new purchases). This is because you MUST have settled the last 2 statements in full, otherwise you wouldn't have had a zero balance statement in January.

lexia

Thanks, this might be another silly question. If the January statement was £1, instead of £0, but I paid the £1 today so current balance is £0, then would interest be payable - in the same scenario when I buy something on the 21st of Feb but pay it off on the 26th?

Superscrooge

As long as you pay the full balance by the payment due date shown on the statement then there is no interest to pay on purchases.

The easiest way to ensure you never pay interest is to set up a direct debit to pay the full balance each month

YorkshireBoy

Superscrooge wrote: »

As long as you pay the full balance by the payment due date shown on the statement then there is no interest to pay on purchases.

That's not strictly true, because there could be some residual interest. That's why they say "if you pay the full balance shown on your previous and current statement on time". In other words, as I said earlier, you need to have paid the last TWO statements in full (and not have made any cash/pseudo cash transactions) to stop the interest.