Student Credit Card - Interest

[support_bae]

My CC has 'Up to 56 days' interest-free credit on purchases'.

If I make a purchase today, when is the very latest I have to pay back in full before interest kicks in?

56 days from today?

 

[Mirage]

Not quite, there's a period of 28 days in a credit card cycle.

Any purchase you make on the card has to go through one FULL cycle before you are charged interest.

Lets say the first day of the period is the 1st of January. You purchase something on the 2nd January.

When the second cycle starts on 29th January you have not been through one entire cycle as you missed the 1st January, therefore you would not hit interest until the end of the second cycle on 25th February.

I believe this is how it works anyway

 

[HangTime]

Nope, it depends when your billing dates are. Could be anything from around 28-56 days.

Lets say you get a bill on the 5th of September, that means that anything you buy on the 5th of September won't actually appear on your bill until the following month. And you'll then get a few weeks to pay it.

If your bill was produced on the 6th of September, it would be included in that bill and thus would need to be paid in just a few weeks rather 8 weeks.

 

[djinuk205]

I need to sort a credit card just to bump up my credit rating by paying it off.. im just scared as they look confusing and ive always paid outright for anything, even cars etc

 

[peetee]

simple thing to do would be to setup a direct debit to pay off the balance a few days before the end of the period.
Im fairly sure that most cards give you the option to setup a DD which will take anything outstanding out your account automatically for you. Be warned it takes a month to setup though, so avoid using the card for the first period.
Iv got a natwest, i had a right faff on paying it off last week so ill be snipping it and finding one that actually gives me some bonuses.

 

[Lystra]

I need to sort a credit card just to bump up my credit rating by paying it off.. im just scared as they look confusing and ive always paid outright for anything, even cars etc

Djin I could not tout this website enough (and well done for realising that to boost your credit rating Banks want to see your history of repayment, and that it's not about being a safe player and never using credit!):

www.moneysavingexpert.com

I have to say every trainee in my firm is a pretty big fan of this Really useful, don't forget to check the shopping section for good deals i.e. 2 for 1 at Pizza Express, which is VERY nice for work lunches!

 

[mrmoose]

I work for a credit card company and the amount of people who ring me spouting rubbish off that website is obscene.

As has been said before. Get the card and make your purchases and setup a direct debit over the phone for the full balance. When you receieve the first statement make sure send in a payment for the full amount as direct debits take upto 4weeks to take effect.

 

[Lystra]

I work for a credit card company and the amount of people who ring me spouting rubbish off that website is obscene.

As has been said before. Get the card and make your purchases and setup a direct debit over the phone for the full balance. When you receieve the first statement make sure send in a payment for the full amount as direct debits take upto 4weeks to take effect.

What rubbish? As far as I can tell, the advice on there is very good, and they DO list the best deals in the CC section. You're unlikely to get any kind of impartial advice from credit card companies themselves agreeing that their deals are rubbish. It'd be interesting to hear what substantial advice on credit cards on there you consider incorrect, so that we can all be aware of it?

 

[mrmoose]

The website is fine, it's the Forums that contain the rubbish which people use to preach on about when talking to me about their debts.