What does duration means ? whoch card is offering no interest for max months?

by , 3 May 2012

which of the card is best at the moment? which card is offering max months without any interest

Additional Information

added 4 May 2012...

thanks alot fruit cake .i will appreciate eif u eloborate it in bit more clear way , for example , which card is more suitable and which has most time limit for no interest for longer period ,if i transfer money in my account and use it for 22 months ,so do i have to pay no interest till 22 months ? is it correct ,, i am confused because there r 2 durations given above on the site which u sent me .i really appreciate if u explain the whole system. thanks alot for ur help

Answers

add your answer here

Hi unicor, and welcome to the forum.

Duration is the length of time that the 0% interest rate lasts for. You can see 0% balance transfer cards here, the longest duration is 22 to 23 months...

http://www.money.co.uk/credit-cards/balance-transfers-credit-cards.htm

And 0% purchase cards are here, the longest duration for these is 15 to 18 months...

http://www.money.co.uk/credit-cards/0-purchases-credit-cards.htm

by fruitcake, 4 May 2012

Hi unicor, well, first you need to think about whether you want a period of no interest on a balance transfer, or whether you want a period of no interest on purchases.

Assuming you want a period of no interest on purchases, then if you look at the second link I gave you below, that's the one for a period of no interest on purchases. Here it is again...

http://www.money.co.uk/credit-cards/0-purchases-credit-cards.htm

If you look at the top one in the list..the Halifax All in One card...you can see the heading 'Purchase Intro' and underneath that it says 'Rate' and 'Duration'. So, for this card, for purchases, the interest rate is 0% for a duration of 15 months. This means that for purchases you put on the card during that 15 months you won't have to pay any interest on the balance. You will, however, still have to pay the monthly repayments each month in full and on time.

So, let's say you as soon as you get the card, you buy an item costing £150 with your card. If you pay £10 a month every month on time, you won't be charged any interest for 15 months. So, by the end of the 15 months you will have paid the whole £150 (ie £10 x 15 = £150), without paying any interest at all.

The other heading says 'Balance Transfer Intro', and underneath that it says 'Rate', 'Duration' and 'Fee'. These apply to the card if you wanted to transfer a balance from another credit card. So, let's say you wanted to transfer a balance of £1,500 from another card to this one. There is a handling fee of 3% (that's the figure of 3% you can see under 'Fee'), this means that you would have to pay a handling fee of 3% of the balance you're transferring (ie 3% of £1,500 = £45) which would be added to your balance, so the new balance would be £1,545 (ie £1,500 + £45

by fruitcake, 4 May 2012

thank u very much fruitcake , now i completely understand the system , and u have been very helpful . i really appreciate it , GOD BLESS YOU

by unicor, 6 May 2012

You're welcome, unicor, it's not the easiest thing to understand, and even harder to explain it! :-)

by fruitcake, 6 May 2012
add a comment

Oops, the site misbehaved there, and chopped me off before I could finish...

...so the new balance would be £1,545 (ie £1,500 + £45 = £1,545). For balance transfers on this card, the 'Rate' is 0% for a 'Duration' of 15 months. So, if you paid £103 every month on time for 15 months, you will have paid the whole £1,545 within the 15 months and not paid any interest at all...£103 x 15 = £1,545.

I hope that makes things a bit clearer for you. :-)

by fruitcake, 4 May 2012

Finally (you've probably got a headache by now, unicor!)...if you scroll down the linked page until you see 'Full Results'...it's a fair way down the page, you can see that the top result is the Nationwide Select card and the second top card is the Halifax All in One card that I gave as an example above. So, if you want the best card for purchases, you need to look at the full results.

by fruitcake, 4 May 2012

That was an excellent answer fruity. It must have taken you ages to sort out and how kind to help someone you don't even know.

by Sabre, 6 May 2012

Lol, Sabre, I ended up with a headache too...so much easier to tell someone than write an explanation down, especially when I wanted to correct something I'd written and the 'edit' facility is not working at the moment! :-(

by fruitcake, 6 May 2012

thanks alot fruity , i have already applied for halifax card and they offered me £1500 limit ,as i wanted it not for transferes but item purchase duration , so it seems to be best for me .This for the first time i am going into these circles of credit cards ,wish me best of luck

by unicor, 7 May 2012

You're welcome, unicor, glad you found a good card to suit you. Use it wisely, and always make your monthly repayments on time, and you will find a card like this can be very useful. Good luck! :-)

by fruitcake, 7 May 2012

Quite correct fruitcake

by jiman69, 7 May 2012

Posts within the money.co.uk community represent the views, experiences and opinions of members and experts only. They should not be taken as financial advice and should not be followed without further research.

Get our free money saving newsletter
Join over 450,000 other subscribers who grab our expert money tips, unmissable money guides & hottest bargains each week in our special email...

More Questions on Credit Cards

Join Our Community

Get fast answers to your money questions, Expert insight, top tips & much more...