Latest payment date to avoid interest? 2 September 2020 at 3:13PM edited 2 September 2020 at 3:14PM in Stoozing: free cash from credit cards 3 replies 131 views

mrkds

Hi all. I am hoping someone can help clarify what is the VERY LAST date one can wait to settle a credit card with an introductory 0% on purchases without incurring any interest?

I have a Tesco Bank credit card whose 0% period expires on the date the November statement (17th). I have been putting the money to pay this off in a regular saver account. However, I've just realised the maturity date of the RS is a week AFTER the CC 0% introductory rate ends (24th). I would ideally like to not withdraw the RS balance prematurely, as I would loose  the interest I have accumulated on it.

I understand there is a 'grace' period in between the statement date and the payment due date (about 3 weeks) during which you don't get charged interest on the statement balance. But I'm not sure if this applies in the same way at the end of an introductory 0% period.

Am I safe waiting for the RS to mature before paying the CC balance? (with the maturity date falling in this grace period).

zx81

No.

Because you haven't been clearing the balance in full each month, interest has been accruing - albeit it at 0%.  As a result, you need to clear the next two statement in full before you get back to having the grace period.  

So you'll be charged standard APR on the balance from 24th until you pay it off.  

Work out which is the bigger hit. 

mrkds

Thanks @zx81

I suspect even a weeks interest on the CC will kill off what ever gains I make from the RS. I guess I 'll have to take the hit on pulling the RS balance out early. In retrospect I should have timed opening the accounts a bit better.

mrkds

I think I worked out what to do. I managed to get approved for the Santander 0% balance transfer credit card.

I should be able to shift most of the Tesco CC balance onto there. The remainder I can settle without having to access the RS prematurely.

I solved my problem and got myself an extra 18 months of stoozing! Happy Days!