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MBNA credit card for 0% purchases
I have not come across this type of promotion before
I have a couple of large purchases to make which would get inside the first 60 days and more or less get up to my credit limit. If I set up minimum payments DD from the start, stop using the card after 60 days, and pay off the total balance after 17 months will I incur any interest charges?
Below are the T&C`s
We apply payments to the part of your balance with the highest interest rate first. When we get a payment from you that doesn’t pay off the full balance on your account, we allocate it in this order:
- Any overdue amounts from previous statements.
- The minimum payment for that month.
- The rest of the balance from your latest statement.
- Any amounts that haven’t been included in your statement yet.
If you have balances at the same interest rate that are not on introductory or promotional offers, we’ll usually apply payments in this order:
- Cash transactions, plus interest, fees and charges.
- Purchases, plus interest, fees and charges.
- Balance transfers and money transfers, plus interest, fees and charges.
- Default fees.
Your payments will usually pay off the oldest balance first. However, if you have balances with the same interest rate on introductory or promotional offers, your payments will pay off the offer that ends soonest first. Next, they’ll pay off any related fees, charges or payment protection insurance. If you’re in persistent debt, we may apply your payments differently.
Comments
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As long as you only use the card for purchases for 60 days, and pay any balance off within 18 months, you wont pay any interest.
2 -
Quite a common scenario for only spends in first 60/90 days to be interest free. If you make those big spends in the promo period and pay minimums each month there will be no interest charge. If you do spend on the card outside the promo period all spends will accrue interest from day 1 until paid. It used to be a thing in the good old days of stoozing to spend the minimum payment amount just before statement date then pay that off immediately accruing a minimal interest charge but keeping the large interest free balance at its full amount for the full period but that takes some control.1
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