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  • FIRST POST
    • Katierose90
    • By Katierose90 18th May 19, 1:13 AM
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    Katierose90
    Need educating on credit card
    • #1
    • 18th May 19, 1:13 AM
    Need educating on credit card 18th May 19 at 1:13 AM
    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 Iím now being charged interest and Iím not sure what this for. When I spoke to the man on the customer service line he didnít really explain it other than to say itís 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. Iím just really confused and so hoping someone can educate me or help me understand it. Thanks.
Page 1
    • _shel
    • By _shel 18th May 19, 5:23 AM
    • 2,012 Posts
    • 3,692 Thanks
    _shel
    • #2
    • 18th May 19, 5:23 AM
    • #2
    • 18th May 19, 5:23 AM
    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.
    • Terry Towelling
    • By Terry Towelling 18th May 19, 12:49 PM
    • 1,500 Posts
    • 1,259 Thanks
    Terry Towelling
    • #3
    • 18th May 19, 12:49 PM
    • #3
    • 18th May 19, 12:49 PM
    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).
    • Dobbibill
    • By Dobbibill 18th May 19, 1:40 PM
    • 3,722 Posts
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    Dobbibill
    • #4
    • 18th May 19, 1:40 PM
    • #4
    • 18th May 19, 1:40 PM
    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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    • Ben8282
    • By Ben8282 18th May 19, 7:13 PM
    • 3,123 Posts
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    Ben8282
    • #5
    • 18th May 19, 7:13 PM
    • #5
    • 18th May 19, 7:13 PM
    Since taking the credit card out in February,


    . However, my understanding was that I have 2 months of 0% on purchases .
    Originally posted by Katierose90
    It is now May. If you had 2 months 0% promotional offer on purchases it would have ended in April.
    • Ben8282
    • By Ben8282 18th May 19, 8:12 PM
    • 3,123 Posts
    • 1,704 Thanks
    Ben8282
    • #6
    • 18th May 19, 8:12 PM
    • #6
    • 18th May 19, 8:12 PM
    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?
    Originally posted by OliviaGrand
    Suggest you start your own thread on the loans board instead of hijacking this one on the credit card board.
    • Terry Towelling
    • By Terry Towelling 18th May 19, 8:14 PM
    • 1,500 Posts
    • 1,259 Thanks
    Terry Towelling
    • #7
    • 18th May 19, 8:14 PM
    • #7
    • 18th May 19, 8:14 PM
    It is now May. If you had 2 months 0% promotional offer on purchases it would have ended in April.
    Originally posted by Ben8282
    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.
    Last edited by Terry Towelling; 19-05-2019 at 12:06 PM. Reason: grammar
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