0% purchase vs interest-free period

jamy_sharona

Hi,

I've been reading quite a lot about this recently and I can't still get my head around it.

If I get a credit card with a 18 month 0% purchase period but the T&Cs tell me I've only got a 52 day interest-free period, which one of the 2 statements is applicable? I thought 0% meant, well no interest at all for the specified amount of time in the offer, no matter when or how you pay it as long as it's done in 18 months.

So if I wanted to spread out a £800 payment without incurring any interest for 18 months, would I need to clear off my balance after the 52 period every time, or just after 18 months?

I am so confused :huh:

I would really appreciate it if you could help me with this.

TheShape

It does sound confusing and I'm sure someone will explain it better than me.

You get an interest free period of (up to) 52 days and from that point the applicable interest rate applies. For the first 18 months this is the 0% (promotional) rate, after 18 months it is whatever rate applies to that card.

You'll have to ensure you always pay at least the minimum payment each month and don't exceed your credit limit or you may lose your 0% rate as well as incurring other charges.

bengal-stripe

jamy_sharona wrote: »

If I get a credit card with a 18 month 0% purchase period but the T&Cs tell me I've only got a 52 day interest-free period, which one of the 2 statements is applicable?

The 0% applies during the promotional period, the "interest-free up to 52 days" is the standard for that particular card. If you get a promotion, than that rate applies until the promotion expires. At that point the standard rate will come into play.

Mind you, if you break the condition of the promotion (at least the minimum payment every month on time and not exceeding the limit) the promotion might be prematurely withdrawn.

redux

The main thing about 52 days is this is the maximum possible time from spending just after a statement, via the item appearing on the next statement, to the due date to send payment for that statement.

But you won't buy everything just the day after a statement, so don't take any notice of 52 days. And anyway you have the promotional offer for the time being. Just look at the payment due date and pay at least the minimum on time.

Dobbibill

You have a promotional deal so the 18 months 0% is what you will be working with. Make your minimum payments every month on time and that will be fine.

If you spend £800 in month 19 of having the card then the 'up to 52 days' will apply.
In a nutshell it means, spend this month and pay off IN FULL when you receive your statement next month and you won't pay any interest. Spread the cost over month 19, 20 and 21 for example, and you will pay interest.

MallyGirl

jamy_sharona wrote: »

Hi,

I thought 0% meant, well no interest at all for the specified amount of time in the offer, no matter when or how you pay it as long as it's done in 18 months.

0% does not mean no interest. It means interest at 0% as long as you operate the account correctly. So you won't pay any interest during the promotional period as long as you pay the minimum on time every month, and then pay any remaining balance before the interest rate jumps from 0% to their standard rate.

The 'up to 56 days' is just saying that if you buy something and then pay it off when the statement comes through then the period between the purchase and the pay off could be up to 56 days and they don't charge you interest for that time. The moment you don't pay off in full then you get hit with interest from the date of purchase at the prevailing rate (which might be 0%)

jamy_sharona

Thank you all. It makes much more sense now!