"12 months interest free on purchases" - ?????

Si_Clist

If a credit card offers "12 months interest free on purchases", what exactly does that mean?

Is it that if I buy £100 of goods one week, a month later buy another £100 of goods and so on but I don't pay the full balance off each month, the accumulating debt doesn't attract interest until the 12 months is up?  Or what?

Ebe_Scrooge

Basically yes.  You must pay the minimum payment each month.  And you must pay off the full balance when the 12 months is up, otherwise you'll start paying interest.

Check when the purchase window is.  Some cards will charge 0% on purchases made within the first 90 days, for example,  Some will charge 0% on any purchases made during the entire 12 month period (although if you buy something in month 10, you'd only benefit from 2 months of interest free).  Whatever the "purchase window" is, be aware that any outstanding balance will start attracting interest at the card's standard APR once the 12 months (from the date of opening the account) are up.

Si_Clist

Cheers Scrooge