Total charge for credit?

chele84

I've just applied for a new credit card with 0% BT but in the Terms and conditions there's a section for 'total charge for credit' and i was wondering what it means?
It says at time of agreement £101.22 does this mean that they're going to charge me this amount to take out the card? I've done BT before and never had this

clio

No it,s there as an example for the credit nothing else.. don't worry your cotton little socks lol..

Scousebird_2

Ditto, I get asked this all the time-it's nothing to worry about as most cards don't have management fees or charges other than misuse or APR on the account balances so I wouldn't read into it-like clio says, it's just an example!!

agsnu

chele84 wrote: »

I've just applied for a new credit card with 0% BT but in the Terms and conditions there's a section for 'total charge for credit' and i was wondering what it means?
It says at time of agreement £101.22 does this mean that they're going to charge me this amount to take out the card? I've done BT before and never had this

If you actually read the T&C it will explain what this is. It's an illustrative example of how much it would cost you to borrow a certain amount of money (I believe £1k on day of account opening).

YorkshireBoy

We've disected the Capital One T&C's for this many times before...

In calculating the APR and Total Charge for Credit we are required by law to assume that: the credit limit will be £1,500 unless we know the credit limit when this agreement is made, in which case we will use that credit limit; the credit is provided for a period of one year beginning with the date of the agreement; the rate of interest payable in relation to the whole of the credit under this agreement is that applying to purchases; and that the credit is repaid in twelve equal monthly instalments, beginning one month after the date of this agreement.

With a little re-formatting, it reads...

In calculating the APR and Total Charge for Credit we are required by law to assume that:

• the credit limit will be £1,500 unless we know the credit limit when this agreement is made, in which case we will use that credit limit;
• the credit is provided for a period of one year beginning with the date of the agreement;
• the rate of interest payable in relation to the whole of the credit under this agreement is that applying to purchases;
• and that the credit is repaid in twelve equal monthly instalments, beginning one month after the date of this agreement.