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Need educating on credit card

edited 30 November -1 at 1:00AM in Credit Cards
6 replies 929 views
Katierose90Katierose90 Forumite
1 posts
edited 30 November -1 at 1:00AM in Credit Cards
So I took up the latest offer of a 29 month 0% interest on a balance transfer of about £600 on one of my credit cards to another. Since taking the credit card out in February, I spent money on it to buy some flights thinking that I have this initial period of 0% on purchases and that this would still mean I would be interest free until the end of 29 months, I would just have obviously more to pay off in that time. However, after 2 months I’m now being charged interest and I’m not sure what this for. When I spoke to the man on the customer service line he didn’t really explain it other than to say it’s somethkng to do with purchases. However, my understanding was that I have 2 months of 0% on purchases so this would mean I would not be charged purchases interest until I bought something after this promotional period. I’m just really confused and so hoping someone can educate me or help me understand it. Thanks.

Replies

  • _shel_shel Forumite
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    There are different types of 0% offers. You chose a balance transfer which means you pay no interest on that but do on purchases.

    If you wanted 0% on purchases you should have chosen a purchase offer.
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  • Terry_TowellingTerry_Towelling Forumite
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    The '2 months 0% on purchases' part of your offer means that as soon as your account is more than 2 months old any purchases you have made and not fully paid off will start to attract interest. Your BT will still be interest free. I understand your confusion because it can seem like you should be getting 0% interest on any purchases made within the 2 month window regardless of how long it takes you to clear them - sadly that is not the case.

    It's not generally a good idea to mix BTs with monthly spending on the same card but it can work if you are with the right issuer (Barclaycard and Nationwide are two that spring to mind) and as long as you fully clear the value of your purchases after each statement before the payment due date.

    Don't fall into the trap of paying for your purchases before you get a statement (I'll not explain why at the moment because that can be complicated depending what level of purchases you are carrying over from statement to statement).

    So, until you have made payments to your account to fully cover your flights you will continue to be charged interest for them. When you have fully cleared them (and the associated interest) you will have one more month with a small amount of what is known as 'trailing interest' and then you will be interest free again (as long as you don't make any more purchases and depending who your card issuer is etc etc).
  • DobbibillDobbibill Forumite, Board Guide
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    Purchases normally get an interest free grace period (approx up to 56 days) IF you pay your BALANCE off in full. With a BT balance on your card, you are not meeting the criteria of paying your balance in full for the interest free grace period.

    This is unless you have a purchases offer on your card - from what you say, I've read it to mean you have a BT offer rather than a purchases offer- please correct me if I'm wrong.

    Barclaycard do this differently as Terry says but most other cards work this way.
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  • Ben8282Ben8282
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    Since taking the credit card out in February,


    . However, my understanding was that I have 2 months of 0% on purchases .
    It is now May. If you had 2 months 0% promotional offer on purchases it would have ended in April.
  • Ben8282Ben8282
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    I want to get a loan, but in which credit company I take a loan, I still cannot decide. Found a site with credit companies. There are a lot of useful things there, can anyone come across any of this company?
    Suggest you start your own thread on the loans board instead of hijacking this one on the credit card board.
  • edited 19 May 2019 at 1:06PM
    Terry_TowellingTerry_Towelling Forumite
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    edited 19 May 2019 at 1:06PM
    Ben8282 wrote: »
    It is now May. If you had 2 months 0% promotional offer on purchases it would have ended in April.

    I think Katierose90's thinking was that purchases made within the two-month window should be interest-free until paid off. She didn't appreciate that two months after account-opening, any purchases unpaid at that point (regardless of their purchase date) would start to incur interest.
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