0% Purchase Offers

Probot23

Might sound like a daft question to some but I'm trying to understand how 0% purchases offers work on credit cards?

I'm looking at applying for the Tesco Purchases credit card with 0% interest on purchases for 23 months and I was wondering if that means literally none of the purchases I make for the next 23 months (assuming I make the minimum payment etc) would incur any interest until after month 23? Or if it just applies to purchases made for a set period, like maybe the first 3 or 6 months, and after that period any new purchases made would incur interest whilst the "older" purchase would continue not to until the end of 23 months?

Sandtree

You need to read the offer, if you look at the current HSBC card its no interest for first 18 months on BTs made in the first 60 days and no interest for first 18 months on purchases.

So in that case you can keep buying interest free for the first 17 months but a BT done after day 60 would start incurring interest from the day its actioned. 

Probot23

Sandtree said:

You need to read the offer, if you look at the current HSBC card its no interest for first 18 months on BTs made in the first 60 days and no interest for first 18 months on purchases.

So in that case you can keep buying interest free for the first 17 months but a BT done after day 60 would start incurring interest from the day its actioned. 

• 0% interest on purchases for up to 23 months from account opening. Based on our assessment of your circumstances we may offer a 0% interest period of 18 or 14 months instead.

I read that as just interest free spending for 23 months?

Just wanted to check I understand it correctly because it feels weird (as someone who has only had one "credit building" card in 15 years since I was 18 because I don't generally borrow so am not well versed in these things) as, assuming I make my payments (which I will) and don't do any money transfers or bank transfers (which I won't) then they won't make any money off me for 23 months?

[Deleted User]

They'll make their money from you via the merchant fees. 

Obviously they'll also hope that you'll continue to use the card after the promo period and maybe pay a little bit of interest along the way.

Probot23

Ah of course... that makes sense, thanks for your responses both!