Would appreciate help - First Credit Card

globby

Hi,

I just need a bit of clarification as this is my first credit card. I got the credit card to build up a rating and I intend to fully repay the outstanding at the end of every month.

I notice in my terms & conditions (it is a Barclaycard Flexi) that they offer 0% Interest for 10 months from account opening.

Basically the promotion states

"0.0% interest for 10 months from account opening with a 2.50% handling fee on balance transfers... etc... etc.. 0.0% interest on purchases for 10 months from account opening. We will transfer Promotional Balances to the Standard Balance or Cash Balance (as relevant) at the end of the promotional period and also if you break this agreement"

It also says in Key Financial Information

"You must make the minimum payment every month of 2.25% of the amount you owe us on your monthly statement or £5.00, whichever is more or the entire amount if less than £5.00. You must pay the minimum payment by the due date shown on your statement. This will be at least 20 days after your statement date"

So the question I have is:

If i intend to make use of this promotional offer of 10 months interest free on purchases, can I just forget about paying off the credit card for 10 months (assuming I keep within my limit)

or do I have to pay off the minimum balance each month?

Thanks

pdoherty76

You have to pay off the minimum. You just wont pay any interest for 10 months. But If I were you, I would stick to your original plan of paying off the balance each month in full.

sicker

You MUST pay minimum amount shown on the statement. If you intend to fully repay the balance each month you could put the difference between the full balance and the minimum repayment into a high interest savings account to be used to clear the whole balance after the 10 months interest free is finished. This is what many folk do. Be careful to keep the money in the savings account and not spend it so you don't run into debt after the 10 months.

John

globby

sicker wrote: »

You MUST pay minimum amount shown on the statement. If you intend to fully repay the balance each month you could put the difference between the full balance and the minimum repayment into a high interest savings account to be used to clear the whole balance after the 10 months interest free is finished. This is what many folk do. Be careful to keep the money in the savings account and not spend it so you don't run into debt after the 10 months.

John

This is what I intend to do.

I earn far more than I spend and I put alot into savings already, thus I have no concerns that I will end up struggling to repay after 10 months. I just have to remember to set a reminder 9 months in to repay early

Thanks you two for the advice.