Credit Card Newbie-Help!!

gigglebunny

Hi,

I'v never had/applied for a credit card before, but due to moving out this year, I want one for emergencies.

I was thinking of applying for the HSBC credit card: http://www.hsbc.co.uk/1/2/personal/credit-cards/card-offer?ad=XT13

BUT

I'm very confused about the interest, as it says 0% for 12 months on purchases, then when I read the "more info" it says 56 days interest free on purchases...so which one is it?

Thank you!!

Thomas99

gigglebunny wrote: »

Hi,

I'v never had/applied for a credit card before, but due to moving out this year, I want one for emergencies.

I was thinking of applying for the HSBC credit card: http://www.hsbc.co.uk/1/2/personal/credit-cards/card-offer?ad=XT13

BUT

I'm very confused about the interest, as it says 0% for 12 months on purchases, then when I read the "more info" it says 56 days interest free on purchases...so which one is it?

Thank you!!

A good deal for 12 months 0%. The 56 days is after your 12 month period and for regular purchases, you won't be charged interest as long as you clear the balance before the 56 days.

ShelfStacker_3

The 56 days interest free bit simply means that from the date a transaction (a purchase, a cash withdrawal etc) is posted to your account, you will have 56 days maximum before any interest is charged if applicable.

As your interest rate is 0% for twelve months, you'll have 56 days from the date of the purchase until you have to pay... no interest whatsoever for 12 months.

Not sure if I was as clear as I could be, but that's roughly the long and the short of it...

gigglebunny

So for the first 12 months there will be no interest payable, but then after the 12months, If I buy something and don't pay the full amount back within 56days I will pay interest?

ShelfStacker_3

gigglebunny wrote: »

So for the first 12 months there will be no interest payable, but then after the 12months, If I buy something and don't pay the full amount back within 56days I will pay interest?

Exactly. But the 56 days is a maximum; if you make a purchase two days before your statement, and then don't pay it all off before your NEXT statement, you'll be charged interest even though less than 56 days elapsed between the purchase and the interest being charged.

It's complicated, I know...

Scousebird_2

I have had one for 3 years now and i've never had a problem with it. If you have an HSBC account, you can pay the full balance online from your current account and they link it to your accounts so you can see all your details and transactions so it's a really good card-they only did 6 months interest free when I got my card so they are brilliant offers now. No matter what you buy between now and March next year-you have to make the minimum paymentds each month, which if you have a responsible limit, is usually only a few pounds a month (it's 3% I think)-and you won't be charged interest. I will try and explain the 56 day rule seeing as the more views the better.

Today is the 3rd of March-there will be a set day in the month where your statement will be sent and and transactions you do up to that day will be on the statement and will need to be paid IN FULL by the payment date (which is usually 14 days after-so approx the 17th) or you will incurr interest (which again-dependent on the balance is 15.9% (if that's your card APR) divided by 12-take that figure and work out what it may be on your balance on the statement.

So if you buy something tomorrow (Mar 4th) and your statement was produced on the 3rd then your next statement comes out on April 3rd and you wont have to pay it until approx 17th April-all that time is interest free then they charge you interest on what you didn't pay off in April, on May statement and so on.

Sorry-you're prob VERY confused now-after a couple of years you'll get it! Trust me!