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  • FIRST POST
    • diz79
    • By diz79 1st Feb 18, 8:41 PM
    • 157Posts
    • 0Thanks
    diz79
    British Airways American Express card
    • #1
    • 1st Feb 18, 8:41 PM
    British Airways American Express card 1st Feb 18 at 8:41 PM
    HI I recently got a British Airways American Express credit card. I got hoping it would help me with reduced cost of flights possibly. I have no debt and havent had a credit card for years. Is it a good choice and will there be any charges.

    Limit £5000
    Goods and Services annual rate 22.9%pa
    Cash interest rate 2.08% (27.9%APR)
    Annual fee 0

    I have no real Idea what these mean can anyone help and is it worth me having , I know this might seem a bit stupid having no idea. But I also understand when purchasing flights and/or other material goods you are covered for loss with a credit card then with anything else.

    Thanks in advacne
Page 1
    • Edi81
    • By Edi81 1st Feb 18, 8:48 PM
    • 392 Posts
    • 261 Thanks
    Edi81
    • #2
    • 1st Feb 18, 8:48 PM
    • #2
    • 1st Feb 18, 8:48 PM
    Why did you not research before applying?
    • A4445
    • By A4445 1st Feb 18, 9:06 PM
    • 693 Posts
    • 325 Thanks
    A4445
    • #3
    • 1st Feb 18, 9:06 PM
    • #3
    • 1st Feb 18, 9:06 PM
    If you buy flights and don't pay in full when the bill is due, you will be charged at a rate of 22.9% this is a very expensive rate.
    • redpete
    • By redpete 1st Feb 18, 10:19 PM
    • 4,194 Posts
    • 3,726 Thanks
    redpete
    • #4
    • 1st Feb 18, 10:19 PM
    • #4
    • 1st Feb 18, 10:19 PM
    Limit £5000
    Originally posted by diz79
    You are not allowed to have a balance of more than £5000, or, you can't spend more than £5000 before you start paying it off.
    Goods and Services annual rate 22.9%pa
    If you leave a balance of £1000 it will cost you around £17 a month, or, it's an expensive way to borrow money, cheaper than a payday loan but still expensive.
    Cash interest rate 2.08% (27.9%APR)
    if you take £100 out as cash using the card it will cost you about £2.08 a month until you pay it back, or, it's an even more expensive way to borrow money.
    Annual fee 0
    You won't pay anything just for having the card

    Hope that helps. Do you understand minimum monthly payment requirement, charges for taking out cash, charges for going over limit or being late with monthly payments, that if you pay off the statement balance each and every month you pay no interest on purchases (but you do pay interest on cash withdrawals from the day you make the withdrawal)? All pretty useful to know.
    Last edited by redpete; 01-02-2018 at 10:21 PM.
    loose does not rhyme with choose but lose does and is the word you meant to write.
    • diz79
    • By diz79 9th Feb 18, 2:54 PM
    • 157 Posts
    • 0 Thanks
    diz79
    • #5
    • 9th Feb 18, 2:54 PM
    • #5
    • 9th Feb 18, 2:54 PM
    If you buy flights and don't pay in full when the bill is due, you will be charged at a rate of 22.9% this is a very expensive rate.
    Originally posted by A4445
    But if I do purchase anything and then pay off at the end of the month surely this is beneficial otherwise what is the point of the card? No?
    • diz79
    • By diz79 9th Feb 18, 2:55 PM
    • 157 Posts
    • 0 Thanks
    diz79
    • #6
    • 9th Feb 18, 2:55 PM
    • #6
    • 9th Feb 18, 2:55 PM
    You are not allowed to have a balance of more than £5000, or, you can't spend more than £5000 before you start paying it off.
    If you leave a balance of £1000 it will cost you around £17 a month, or, it's an expensive way to borrow money, cheaper than a payday loan but still expensive.
    if you take £100 out as cash using the card it will cost you about £2.08 a month until you pay it back, or, it's an even more expensive way to borrow money.
    You won't pay anything just for having the card

    Hope that helps. Do you understand minimum monthly payment requirement, charges for taking out cash, charges for going over limit or being late with monthly payments, that if you pay off the statement balance each and every month you pay no interest on purchases (but you do pay interest on cash withdrawals from the day you make the withdrawal)? All pretty useful to know.
    Originally posted by redpete
    I think I do as I said above , surely as long as im purchasing and paying off on time you do get a benefit from this card?
    • Shakin Steve
    • By Shakin Steve 9th Feb 18, 3:35 PM
    • 1,322 Posts
    • 1,002 Thanks
    Shakin Steve
    • #7
    • 9th Feb 18, 3:35 PM
    • #7
    • 9th Feb 18, 3:35 PM
    You get the benefit of circa 45 days free credit, if you buy something at the beginning of you statement period and settle each month in full. You also get the benefit of section 75, but that's the same as with any credit card.
    I suppose a third benefit would be that you don't have to carry cash if you use it for purchases.
    I came into this world with nothing and I've got most of it left.
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