0% on purchases

Indispensable_Hobbes

Can someone confirm I'm reading the credit agreement correctly please:

Interest Free Period - Maximum 59 days for purchase. If you pay the balance in full and on time.

So am I right in thinking if I buy something I have 59 days to repay it or I'll get charged interest ?

Interest charging Information - We charge you interest on purchases and cash advances from the date of the transaction and for cheques, balance transfers and all other amounts from the date we first charge the amount to your account. However, if you pay your total balance in full and on time each month, you will not be charged interest on purchases. If you do not pay the total balance shown on your statement each month, we will add the interest charged to your next statement balance.

So I can't really buy things, repay the min amount each month with the intention of repaying the full balance just before the 0% period ends?



If that's the case I might as well reapply for my Argos card and get 12months buy now pay later 0%.

gt94sss2

jenyking wrote: »

So am I right in thinking if I buy something I have 59 days to repay it or I'll get charged interest ?

Normally - its 'upto 59 days'.. which is the maximum time between them producing one months statement and the 'balance due' date on the next statement.

For example if your December statement is produced on the 31 December and you buy something on the 1st Jan.. you will get a maximum of 59 days between then and the payment date (sometime in Feb) that is quoted on your 31 Jan statement

So I can't really buy things, repay the min amount each month with the intention of repaying the full balance just before the 0% period ends?

Yes, you can..

If the credit card company is offering 0% on purchases for 12 months, then during that time, you only need to pay the 'minimum' payment each time and they won't charge you any interest for not paying it in full.. during that period.

Regards
Sunil

Milarky

First quote you give is simply how it works after the end of any promotional period. During any promotional period on purchases (eg '0% for six months') just make the minimum payments each month. On the date the promotional period ends (and this is either printed on your statements to remind you or you can always ask the card issuer in person) you need to pay whatever remains on the balance in full to avoid being charged interest.

Thereafter you need to settle your monthly bill in full by the associated due date ('up to 59 days' implies this is 28 days after a statement and the previous statement had been produced 31 days earlier) or you will be charged interest.

Credit cards offering an 'interest-free period' [Americans call them 'grace-periods'] - and that is probably 95% of all credit cards offered - have always provided a useful means to budget on the purchase of monthly recurring expenses - like fuel, groceries and travel costs - because people learned long ago how to use direct debits set to take all the money at the end of the following month. What they aren't good for in general (except in conjunction with special promotions) is the 'buy now/pay later' approach - because the standard interest rates are way too high for 'finance' of large items.

Indispensable_Hobbes

aaah that's good. I'm not planning on maxing it out but it may come in handy over the next few months and i begrudge getting charged interest as does anyone.

I can handle repaying the min balance each month and saving to repay the balance before the 12 months is up. Better in my pocket than in theirs!

This is on the Halifax One Mastercard.