How My Credit Card Works?!

[Booldawg]

I recently got my first credit card. Please help me; do I have this right?

The way I understand it every time I make a purchase I have 6 months to pay it off.

Heres a link to the product I have;

http://www.lloydsbank.com/credit-cards/advance-card.asp

[factor-fiction]

Yes, it's 0% interest for the first six months but you must make the minimum repayments each month and then pay it off in full before the end of the 6 months. You may also need to be careful you don't use it for cash withdrawals during this period

[Booldawg]

lol, sorry I'm still struggling with this!

So its only interest free for the first six months of me getting the card, or is it interest free for six months of when I buy items on it ? eg;

Lets say I bought something for 49.99 on 16th January - I have to pay that off by 16th July. Then I buy something else on 1st Feb - and that needs to be paid off by 1st aug - else I'm charged interest.

[factor-fiction]

It says
-0% for the first 6 months on purchases*
-*0% interest on purchases for the first 6 months
-To stay eligible for promotional rates, you must stay within your credit limit and make your payments on time each month.

So if your account was opened in January the interest free period ends in July.
So if you buy something in February it still needs to be paid off by July, or you'll start to incur interest thereafter. Similarly if you buy something in May it still needs to be paid off by July or you'll incur interest

[factor-fiction]

You need to read the detailed Ts and Cs to be certain

[whiskeryron]

In order to absolutely NOT incur interest on balances, do as I do. Pay balance off COMPLETELY every month.

WR.

[hc4361]

You have 6 months interest free starting from the date you activate your card.
Your interest free period ends 6 months later - so if you get the card in January your interest free period will end in July.

[jno]

as WR says, plus if you do it by direct debit then you avoid the risk of it getting lost in the post as happened to me once (so I got charged interest on the month's purchases).

[factor-fiction]

Hi,whiskeryron. I think Booldawg may have chosen this card because he is keen to take advantange of the 0% deal.

These deals should be treated with caution however- the card companies know some cardholders will overstretch themselves during the interest free period and will therefore have to pay high interest charges eventually.

You need to be really disciplined with these, pay off the minimum balance each month and put aside the remainder of the money owed into an interest bearing account. However as savings rates are so low these interest free credit card deals are not really a great deal.

[Booldawg]

ok thanks all - I understand more clearly now!