Jump to content

Credit card advice please.

Recommended Posts

Thanks for the advice so far. It does sound a bit risky, as if something is going to catch me out. I'd be able to pay it back well before the ones that have 0% for a year. If it is as simple as setting up a minimum direct debit of around £100 to come out of my bank monthly, paying it off and then closing the account and snapping the card up then that is fine.

Share this post


Link to post
Share on other sites
Mine's paid via DD every month, at £16 which I can handle, just not sure how quickly the balance is getting cleared! I'm trying to find latest bill now, I can't check online any more - It was a PayPal Santander card and they've stopped doing them, and my online account doesn't work.

 

Just found a bill, my limit was actullay £650, and the cards been defunct since about March. I think I got it last April and used it to buy a new pram and other baby stuff, maxing it out. I've paid £16 a month since, and according to latest bill, I still owe £560 on it, this months bill of £16 includes £10 in interest, so the balance is clearing VERY slowly. I'll maybe start making bigger payments on it actually!

As far as I know, anyone on an unsecured credit agreement has a legal right to demand a written repayment statement inclusive of interest for full repayment on a defined future date; the company cannot lawfully refuse you on your written demand. Take control!

Share this post


Link to post
Share on other sites
Most if not all credit cards are interest free if you clear the balance off every statement. A credit card with a APR as high as 29 is ridiculously expensive if you carry any sort of balance over each month.

 

The OP is wanting a credit card that is interest free even if you carry a balance over each statement, which as I posted there are several cards out with offers of 12+ months interest free periods.

 

It was the only card I could get at the time, and couldn't get a loan. It is ridiculously expensive indeed! I shouldn't have even been able to get it tbh, I don't think PayPal carried out much of a credit check before dishing them out - Probably why Santander don't deal with them any more!

Share this post


Link to post
Share on other sites
Thanks for the advice so far. It does sound a bit risky, as if something is going to catch me out. I'd be able to pay it back well before the ones that have 0% for a year. If it is as simple as setting up a minimum direct debit of around £100 to come out of my bank monthly, paying it off and then closing the account and snapping the card up then that is fine.

Ensure that the d/debit is for at least the amount repayable each month.

Share this post


Link to post
Share on other sites

How do they make money from the one I am looking to get?! Do they just hope I miss a payment or something!?

Share this post


Link to post
Share on other sites
Ensure that the d/debit is for at least the amount repayable each month.

 

Ok great I guess they set this for you, thanks.

Share this post


Link to post
Share on other sites
How do they make money from the one I am looking to get?! Do they just hope I miss a payment or something!?

Yes; or the Bank invites you to borrow more; or it mailshots you with 'Special Offers'; or [etc.]

Share this post


Link to post
Share on other sites

As long as your credit score is good, you'll be able to get a decent, and cheap one - Not sure how they make money, apart from they probably have a range of cards with differing interest rates, and of course, missed payments. Do a compare of cards on a comparison site and see which is best for you, if you're not sure about any of them, post the details and someone will advise!

Share this post


Link to post
Share on other sites
Ok great I guess they set this for you, thanks.

Best not to guess or be told; as account-holder, you can direct your Bank how much to pay.

Share this post


Link to post
Share on other sites
Thanks for the advice so far. It does sound a bit risky, as if something is going to catch me out. I'd be able to pay it back well before the ones that have 0% for a year. If it is as simple as setting up a minimum direct debit of around £100 to come out of my bank monthly, paying it off and then closing the account and snapping the card up then that is fine.

 

That is exactly the way to do it. Get the card. Make the purchase. Split the purchase price into as many equal installments as you can get for free. Set up a DD. Then destroy the card.

 

How do they make money from the one I am looking to get?! Do they just hope I miss a payment or something!?

 

They are hoping that you will buy other stuff on the card. Don't. That is how things get complicated.

Share this post


Link to post
Share on other sites
Best not to guess or be told; as account-holder, you can direct your Bank how much to pay.

 

Oh yes I thought for example the credit card company would say 'the minimum payment each month is £50...' and I can meet that or pay more, which I will!

Share this post


Link to post
Share on other sites
That's true, too.

And anyone who trips-up and pays late (or not at all) stores up one black mark on his/her credit file.

 

Not always, earlier this year I just totally forgot to pay my credit card before the due date. Phoned credit card company up and made a debit card payment over the phone. I asked if the missed payment would be a mark on my credit score / record. I was told I would be charged a late payment fee of £12 but as the payment would be credited to my account only a couple of days late, it wouldn't effect my credit score / record in anyway.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.