0% credit card for X months... Interest?

Jono

Jono

Jono

Man of Honour
Joined
18 Oct 2002
Posts
13,262
Location
Northallerton/Harrogate
Excuse me for being a bear of very little brain. I've only ever had credit cards where I've paid the balance off in full each month (except for one time I mistyped the account/card number on my online banking and had to pay interest that month) - now it's automatically direct debit.

I'm looking at applying for a 0% credit card, so I can buy something and then pay it off interest free over say, a year.

But I don't quite understand the numbers on the application form that I'm pretending to fill in:
rates.png


Can I just spend, say 1500 pounds and not be charged any interest for 12 months?
 
Introductory Rates

What you will be charged for the periods mentioned, ie 16 month 0% on purchases and 9 months 0% on balance transfer.

Standard Rates

What you will be charged after your introductory period

Buy Now Pay Later

What you pay on special buy now pay later special offers

So yes, any purchases made in the first 16months will have 0% interest.
 
Yep as Windle says you can buy something now for £1500 (credit limit permitting) and then over 16months you don't pay any interest on it. But remember to setup a direct debit to pay off the monthly minimum or you loose your 0% interest.
 
Make sure you check whether the small print says that the highest or lowest rate of interest is paid off first. If you were to buy an item for £1500 on interest free and then drew out some cash on the card (not saying you would) and you were paying off the lowest interest rate first, you would have to pay back the £1500 before being able to pay back the cash advance, which would be gathering more and more interest.
 
Sirrel Squirrel said:
Make sure you check whether the small print says that the highest or lowest rate of interest is paid off first. If you were to buy an item for £1500 on interest free and then drew out some cash on the card (not saying you would) and you were paying off the lowest interest rate first, you would have to pay back the £1500 before being able to pay back the cash advance, which would be gathering more and more interest.
Click to expand...

That used to be true. The law was changed about 3 years ago so that now, the highest interest part of the balance is paid off first.
 
You must log in or register to reply here.
Back
Top Bottom