Having a real hard time grasping the details of my credit card

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HarlemThorne
HarlemThorne Posts: 31 Forumite
in Credit cards
Hi!

So i've recently gotten my first credit card (22 years old) and i'm having a slight problem adjusting and understanding everything, it's all a little confusing.
I got it as i've been using paypal credit for years and thought why not get a credit card too and start to build up a credit history now rather than later since i've always been very good with my finances so showing a reputable history would be good for me later in life I guess

This is what I have:
https://www.moneysupermarket.com/credit-cards/details/?productCode=CC_HALIFAX_CREDIT_CARD&selectedProductId=CC_HALIFAX_CREDIT_CARD&returnURI=%2Fcredit-cards%2Fhalifax%2F&ResultsCount=6&PositionInResults=4&goal=CC_ALLCARDS

But for some reason my brain just isn't able to grasp it all, paypal credit is so simple, spend over £150, don't pay any interest as long as you pay that payment off within 4 months of purchase date, and then you have a small minimum payment towards it each month, simple and been using it for years.

As for the credit card, say if I was to spend £400 on an amazon order that i'd want to pay off say... late december january (more of a case of I have the money now but paying it off in a month or two's time would be nicer on my disposable income I have at the moment), how would interest and everything work (as it says 0% on purchases for the first 12 months), would it be similar to paypal where as long as the payment was paid in those 12 months, I wouldn't pay any interest?

Any help would be much appreciated so I can finally start using it instead of keeping it in my wallet and being afraid to touch it :rotfl:

Comments

  • ViolaLass
    ViolaLass Posts: 5,764 Forumite
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    Yes, make at least the minimum payment on time each month and DON'T use it to withdraw cash and you should be fine.
  • HarlemThorne
    HarlemThorne Posts: 31 Forumite
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    ViolaLass wrote: »
    Yes, make at least the minimum payment on time each month and DON'T use it to withdraw cash and you should be fine.

    Brilliant, thank you!
    So does the 12 month detail mean that if I wanted to, I could potentially drag it out and pay it off in 11 months meanwhile paying no interest on anything? (Not that I plan to do this, I hate having money owed so usually take 2 months max, but might as well get all my questions out of the way now whilst there are people willing to explain things to me lol :) )
  • derps
    derps Posts: 137 Forumite
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    HarlemThorne wrote: »
    Brilliant, thank you!
    So does the 12 month detail mean that if I wanted to, I could potentially drag it out and pay it off in 11 months meanwhile paying no interest on anything? (Not that I plan to do this, I hate having money owed so usually take 2 months max, but might as well get all my questions out of the way now whilst there are people willing to explain things to me lol :) )

    You still need to make the minimum payments in those 12 months but in theory you can keep a really big balance going for a long time on a 0% purchases offer with very small minimum payments and pay absolutely no interest :)
  • Kim_13
    Kim_13 Posts: 2,435 Forumite
    Name Dropper First Anniversary First Post Photogenic
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    HarlemThorne wrote: »
    Brilliant, thank you!
    So does the 12 month detail mean that if I wanted to, I could potentially drag it out and pay it off in 11 months meanwhile paying no interest on anything? (Not that I plan to do this, I hate having money owed so usually take 2 months max, but might as well get all my questions out of the way now whilst there are people willing to explain things to me lol :) )

    This is correct.

    A number of people on this forum do this, paying the minimum each month and setting aside the remainder of the money and keeping it in one of the best savings accounts. That way, they're earning interest on money they're borrowing from the card company for nothing. It's known as stoozing.
  • Mnd
    Mnd Posts: 1,699 Forumite
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    Exactly, we are looking to spend aprox £4k on our home in the new year. I will be applyin for a 30 month purchase card, set up direct debit to pay the minimum and use it to pay in full over the 30 months
    No.79 save £12k in 2020. Total end May £11610
    Annual target £24000
  • Sncjw
    Sncjw Posts: 3,509 Forumite
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    Pay the minimum each month or you will loose the 0% offer. You will have to pay interest from the day your purchases the item if you loose the offer.

    You can add more items to the card as long as you pay the minimum payment by the statement date. It will tell you the minimum payment. Also I would pay a good few days before it’s due to it can clear esp of weekend or bank holiday is coming up. I’ve seen many a tome on this board people loosing and offer or having to pay interest because the payment didn’t clear until after a bank holiday
    Mortgage free wannabe 

    Actual mortgage stating amount £75,150

    Overpayment start date 1/3/23.

    Starting balance £66,565.45

    Current balance £63,787.16

  • ricky_v
    ricky_v Posts: 330 Forumite
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    Set up a DD so the CC company automatically takes the min payment from your current account on time, however make sure it says on your statement that '£X will be collected via DD on or around Y date' otherwise make a manual payment.
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