How does 0% for purchases work?

Pippin12

Sorry if this is a dumb question. The CC in question has 25 months 0% for purchases. How does this work? Do you get 0% for purchases made in the first month only? Or are you interest free for all purchases on card until the initial 25 months are up whereupon you begin to pay interest on the outstanding balance?

Can anyone help please?

Cornucopia

Pippin12 wrote: »

Or are you interest free for all purchases on card until the initial 25 months are up whereupon you begin to pay interest on the outstanding balance?

Yes... that is how it works.

Pippin12

Cornucopia wrote: »

Yes... that is how it works.

Thanks for that Cornucopia.

Fingerbobs

Pippin12 wrote: »

Thanks for that Cornucopia.

Also worth mentioning that, even though there will be no interest to pay during the 0% period, you will have to make at least the minimum payment to the card each month. The minimum payment is usually a small percentage of the outstanding balance (somewhere between 1% and 5%), subject to a minimum amount.

Superscrooge

If you miss any of the minimum monthly payments you risk losing your 0% promotional offer. So set up a DD to pay the minimum payment each month.

ryuuoo

yeah so basically buy anything you want within your credit limit and you can keep the balance rolling month by month without interest.
You have to keep up the minimum payment and that will bring the balance slowly down but then you can also make overpayments.
These cards are a godsend!

No_6

Don't forget to put the money you are spending into a account paying interest,
so you can pay the card off !! before the 0% rate goes to 18% or HIGHER

phillw

and make sure you pay the card off at the right time, it's worth asking them on the phone what you need to do to avoid paying interest & follow their advice.