Credit card - is this 0%??

[cakedup]

I'm applying for a credit card for the very first time and am a bit nervous about getting it wrong!

I want to use it to pay for a holiday, and want to pay back enough so that I don't have to pay any interest.

So I've applied online to Tesco and it looks as though I've been accepted. Trawling through the t&c's...it keeps mentioning the interest rate, but I'm assuming I won't necessarily get charged interest?

It states:

1. HOW MUCH DO YOU CHARGE ME?

1.1 Interest Introductory Rates (all fixed) Monthly Rate Annual Rate (simple) Purchases for 1 months from account opening 0.000 % 0.000 % Balance transfers for 1 months from account opening 0.000 % 0.000 %

Then goes onto outline the standard interest rates.

So, as I'm a new customer, the introductory rate of 0% interest will apply to me, as long as i pay back at least the minimum monthly repayment, is that right?

You want one with a longer no interest period than s month. You can get them up to a year at least.

It's 0% if uou pay off in full each month not judt the minimum - if you pay less than the minimum you've defaulted

I saw one today which was interest free on transfer balances for 32 months.

So it's 0% interest if i pay back what I've borrowed within 1 MONTH??

Sorry no...I mean, I can take longer to pay back, but I will only get 0% interest on the first month?

I went for the Tesco one because it was listed on Money Saving Expert as 0% for up to 28 months. So I obviously didn't qualify?

Does it definitely say 1 month on it?

I recently got a Post Office Money credit card for the free foreign currency transactions. I think that has 28 months at 0% interest if you qualify.

Does it say anywhere how long the 0% period is for? I've just taken out a 0% balance transfer card and the offer was 0% on balance transfers and purchases for 30 months only on balance transfers or purchases made within the first month. So I transferred a balance a few days after getting the card so that balance will be 0% interest for 30 months. However, the first month is now up so any transfers or purchases I make now will accrue interest. If any of that makes sense?

Just getting my head around the terminology...so 'minimum' repayment amount is just the amount I absolutely have to pay. But to qualify for the 0% interest (in general) then I will be given a figure which will amount to paying off in full?

dementedpixie I copied and pasted that bit above re 1 month.

Just had another look. It also states:

Interest Free Period
Maximum 51 days for purchases if you pay your balance in full and on time, and have paid the previous month's balance in full and on time.

and then:

You will not pay interest on new purchases if you pay your balance in full and on time.

I'm confused. These two statements seem to be contradicting each other??

I don't think they are contradictory Cakedup. You will get 51 days interest free maximum. So, if you purchase something in April in the evening the same day the April statement is generated (after close of business) you won't need to pay for it (minimum payment or otherwise) until the payment due date of the May statement.

April 1st evening spend £50 after the April statement has been closed off. The £50 will appear on the May 1st statement which is due for payment on 20th May.

I would ask them about the interest free period. Your post upthread could mean that any spends or transfers within the first month are interest free for whatever the agreed period is. If they weren't the % wouldn't be zero would it?

Thanks BarchesterFlowers, that makes sense.

I've just applied for a Virgin card now. Much easier to understand and obvious that it's 0% for 18 months.

Be careful how many you apply for as it will impact your credit score. Also, if it's only your first one, then you might not have qualified for the 28 months with no interest. Instead, they might have given you a basic one that you will have to pay whenever the statement arrives to avoid paying interest.

Yes I think that's what happened JoJoSM2 . I didn't complete my application with the Tesco card. It was on the list of 0% interest credit cards on moneysavingexpert.com but obviously I didn't qualify. However, seems I did for the Virgin one somehow.

read carefully the bit about 0% interest on purchases v/s balance transfers.
most credit cards seem to not offer low/no interest on purchases.

I have aTesco credit card - mine was a 0% balance transfer offer but looking at the Tesco website, there are other cards, so are you sure which one you have?

It says the purchases card has 0% interest on purchases for up to 28 months, so if this is the one you have, you won't pay any interest on your holiday providing that you make the minimum payment each month and pay it off within the offer period.

I also have an M&S card that's 0% on purchases and I don't pay any interest on that currently.

It is possible to use 0% credit cards to your advantage - I got £32 quidco cashback on my Tesco one and am saving the repayments up in my Tesco account which pays 3% interest, so I am making a bit of money on it but if you make a mistake and spend on a balance transfer card or not pay in time it can get very costly, so read all the moneysavingexpert information carefully for details on how to avoid all the pitfalls.