How do 0% interest credit cards work?

Benc98

Okay, so first of all I havnt actually paid for anything yet out of fear, but I received my credit card, with a credit card limit of £1000. Its a 0% interst card for the first 22months with Halifax.

So I'm wondering because I do want to make some purchases that I cannot quite afford at the moment. Could I make purchases on this card and then pay them back monthly until the 0% interest period has run out. Or do you have to pay them back in full on a monthly basis?

Thankyou for any help I'm just looking for some guidance incase I go down a rabbit hole of debt lol.

[Deleted User]

Unless you clear your balance in full, you will always be charged interest.

In your case, you'll be charged at 0% for 22 months. After that, you'll be charged at your standard rate.

YorkshireBoy

You need to make at least the minimum payment each month. If you don't do this you will almost certainly lose the 0% rate. You may find a direct debit useful. This will be 1% of the balance, with possibly a minimum amount (maybe £5 or £25). Be sure to clear the balance before the 0% introductory rate ends. Halifax show the end date on every statement, so there should be no way you'll miss it!

Further reading:

https://www.moneysavingexpert.com/credit-cards/best-0-credit-cards/

Start at "How do 0% purchase cards work?"

chattychappy

Is it 22 months 0% "purchases" or "balance transfers"?

If indeed it is purchases, then yes you can do as you suggest. But don't fall into the trap of buying stuff which you can't afford now, assuming you can afford the payments later. Some people do get tempted by these offers and end up paying interest when the deal expires.

Benc98

Thankyou for your quick replies, I'm learning to drive at the moment, which is expensive as I've just took a test and failed, once I get my driving out the way I'll be able to pay the entire card off, it's just for a few months paying the minimum repayment is what i was hoping for.

Ben8282

You say that you have a card from Halifax which is 0% interest for 22 months but avoid saying if that is on purchases, balance transfers or both but Halifax don't currently offer a card which has 22 months 0% on anything so suggest you check very carefully what sort of card you have and what exactly is at 0% and for how long before you start spending.

Benc98

I got the card a few weeks back, lloyds and Halifax were both running the card, they were offering 28months but offered me 22 probably because of my income.

chattychappy

And still the question as to whether it is a purchases or balance transfer (or both) offer goes unanswered....

Ben8282

Ben8282 wrote: »

You say that you have a card from Halifax which is 0% interest for 22 months but avoid saying if that is on purchases, balance transfers or both but Halifax don't currently offer a card which has 22 months 0% on anything so suggest you check very carefully what sort of card you have and what exactly is at 0% and for how long before you start spending.

Benc98 wrote: »

I got the card a few weeks back, lloyds and Halifax were both running the card, they were offering 28months but offered me 22 probably because of my income.

Still no nearer to establishing what sort of card you have because Halifax don't offer any cards which have a promotional 0% offer for 28 months on anything either.

Benc98 wrote: »

Could I make purchases on this card and then pay them back monthly until the 0% interest period has run out. Or do you have to pay them back in full on a monthly basis?.

No you don't have to pay them back in full on a monthly basis. You can always pay just the minimum payment or any amount between the minimum payment and the full balance each month. However, as to whether you will be charged interest or not if you fail to make full repayment each month, this cannot be established as you appear unable to advise if you have a 0% promotional offer on purchases or not and, if you have such an offer, how long it is for.