CreditCards Blog

Hi

Wondering if anyone can help. In June i took out a Natwest credit card and had 0% on all purchases for 6 months. The 0% rate is coming to an end on 3rd December this year which is when my next statement is due. I had planned to pay off the balance which stands at 560 next month after the 3rd but before the payment due date for the december statement. From what i had understood, if i did this then i would avoid paying interest. Firstly am i correct or incorrect? Secondly, if I do have to end up paying interest, is the interest worked out simply by working out 1.24% of the statement balance, (my APR is 15.9% therefore about 1.24%) so for example if i only paid 360 of what i still owe, and pay the remaining 200 the following month and not spend on the account (only purchases have been made on the account no BT'S etc.) would it cost me 2.48 in interest?
Hope somebody can help, im very new to credit cards/borrowing in general.
Thanks

The 0% will end on 3rd december. If you pay the balance after 3rd december even if it reaches your account by 6th of december you will inccur interest. ie interest on the balance that is there from 3rd dec to 6th december which will show on your January statement. To avoid paying interest make payment to reach the card BEFORE december 3rd.If you do not do this, the interest you pay will be based on the whole of the balance calculated from when the purchases appeared on the card. ie on the 560.Then in January the interest would be calculated on the outstanding balance.

Thanks for that. Well i wont be able to pay all of it back before December 3rd so it looks like i will be paying interest. As i will be paying it back in december though it will only mean paying 10 interest max so its not the end of the world, just will put it down to a lesson learnt.