Sainsburys dual credit card interest free period

kokolino23

Hello,

First credit card for my wife and we're not sure about something.

Is the interest free period 12 months or 56 days ?!

The credit limit is 3.2k, if she spends it all (or let's say 1k) does she have 12 months to pay that amount (minimum payments will be paid monthly) or 56 days until she's charged interest rate? Why they say Interest rates 0% for 12 months, then below interest free period is 56 days?

Does she have to pay the outstanding balance at the end of each month or it's interest free for the first 12 months, regardless the amount spent as long as she pays the minimum payments each month? The full balance will be paid by the end of 1 year.

Thank you

Jami74

She'll get charged interest of 0% after 56 days. In other words, because she's got a promotional interest rate, the amount of interest she'll pay after 56 days will be £0. 
Set a direct debit up to pay the minimum so there is absolutely no chance that it could be late. 
If I make a purchase on a 0% credit card I tend to treat it like a loan and pay it back in equal installments. If you don't do that then at least make sure you have put the money aside to pay it off at the end.

kokolino23

I'm still not sure about it tbh, their terms are confusing.

So it's 29.95% a year or 0% ?!

kokolino23

How can be 0% interest free for 12 months when they say the below ?!

If she pays the full amount over the course of 1 year, why she'll be charged interest when the card is advertised with 0% for the promotional period ?!

dr_adidas01

kokolino23 said:

I'm still not sure about it tbh, their terms are confusing.

So it's 29.95% a year or 0% ?!

It will be 0% for the 12 months that she has the offer for, then when the offer expires after the 12 months her interest rate will be 29.9%.  

Most credit cards have a 56 day interest free period, provided you pay the full statement balance by the due date. 

kokolino23

dr_adidas01 said:

It will be 0% for the 12 months that she has the offer for, then when the offer expires after the 12 months her interest rate will be 29.9%. 

Most credit cards have a 56 day interest free period, provided you pay the full statement balance by the due date. 

Thank you, I'm not very familiar with the credit cards hence this post.

Why they say 56 days interest free period when the promotion is for 12 months?

In simple words, if we spend £3200 and make the minimum payment each month then pay the outstanding balance just before the 12 months, we won't be charged any interest, am I right?

29.95% APR starts after 12 months, any purchase we make within the promotion period will have 0% interest as long as we pay the minimum amount each month.

Jami74

kokolino23 said:

Why they say 56 days interest free period when the promotion is for 12 months?
Because if you buy something on a credit card, about a month later they'll send you a statement giving you about a month to pay. If you pay it off in full when the statement tells you do then it will have been roughly 56 days between making the purchase and paying off the credit card. They do not charge interest during this period. They only start charging interest if you don't pay it off in full.

In simple words, if we spend £3200 and make the minimum payment each month then pay the outstanding balance just before the 12 months, we won't be charged any interest, am I right?
Yes that's right, you will pay no interest. They will charge you the promotional rate of 0% interest. It might even show on your monthly statement as a transaction, something like 'Interest@0% - £0'.

29.95% APR starts after 12 months, any purchase we make within the promotion period will have 0% interest as long as we pay the minimum amount each month.
Yes. As long as you pay the minimum each statement month and have cleared the full amount before the 12 months finish you will pay £0 in interest. Make sure you set up a direct debit and select the minimum payment, if you do this they will automatically take the minimum payment at the right time. Credit cards are billed by calendar months, not every 28 days, so the day the payment is taken may differ by a couple of days each month. 

         

kokolino23

@Jami74 , Thank you very much for taking the time to explain us what to expect from this card.