First Credit Card

B.E.N

Hi, I'm 19 and just about to get my first CC. I'm looking mainly to build a credit score, but also like the idea of "slow stoozing".

Been offered £1k on an Abbey Zero card, and am tempted as it's got 0% on purchases for 6 months (for the "slow stoozing").



The thing is, I don't really know anything about CCs. Apart from not being reckless with the plastic, and never withdrawing cash, are there any other pitfulls to avoid?

Many Thanks
Ben

YorkshireBoy

B.E.N wrote: »

The thing is, I don't really know anything about CCs. Apart from not being reckless with the plastic, and never withdrawing cash, are there any other pitfulls to avoid?

Loads of pitfalls!

There may be an article for credit card newbies on the main site. Look here...http://www.moneysavingexpert.com/cards/

There's a specific slow-stoozing guide here...http://www.stoozing.com/g_sslow.htm (be sure to click the 'detailed instructions' link at the bottom of that page).

latecomer

Always set up a direct debit for the minimum amount to ensure you are never late. These take several weeks to become active so check the first month in case a manual payment is required.

Apart from that, dont borrow what you cant afford to payback. Remember that stoozing is about saving the money yuo would have used to pay off the credit card, make sure you dont spend it

B.E.N

Excellent, thanks.

Anyone have first hand of the Abbey Zero? Heard abbey were to be avoided at all costs...

NickX

I am currently stoozing with AbbeyZero.

It is a good deal because it is 0% with NO FEE.

However, the process hasn't been completely smooth :

(a) The application took a long time to process and as a result I lost a month of the deal, so really only got 5 months at 0% rather than 6 months.

(b) The website does not have the facility for you to make payments from your Debit Card although you can do this through your own online banking if necessary.

All in though I like it because its guaranteed to return a profit.

B.E.N

Excellent, thanks.


Just two more questions (just basic things - first CC):

a) How do you actually pay off the card? Do they give you an account no to transfer funds into?

b) When it says "0% for 6 months", does that mean that you don't pay anything until the end of the 6 months, then get hit with a repayment demand, or do you get a set bill each month? If it's the latter, how much of the balance is usually requested?

YorkshireBoy

B.E.N wrote: »

a) How do you actually pay off the card? Do they give you an account no to transfer funds into?

It'll list the various methods on your monthly statement, and these include...

direct debit
cheque in post
bank counter with giro slip
online banking
telephone banking
it may also be possible to pay by debit card, either on the provider's website or by calling them

b) When it says "0% for 6 months", does that mean that you don't pay anything until the end of the 6 months, then get hit with a repayment demand, or do you get a set bill each month? If it's the latter, how much of the balance is usually requested?

Didn't you read the stoozing site article I gave you in post #2? There are VERY detailed intructions on cards and slow-stoozing in there, and the issue of minimum payments is covered.

The Abbey summary box will inform you of the minimum payment required. From memory, it's £5 during your intro period.

B.E.N

YorkshireBoy wrote: »

Didn't you read the stoozing site article I gave you in post #2? There are VERY detailed intructions on cards and slow-stoozing in there, and the issue of minimum payments is covered.

Am reading it now.

YorkshireBoy wrote: »

The Abbey summary box will inform you of the minimum payment required. From memory, it's £5 during your intro period.

Am I correct in thinking that in this particular instance, I'd be better just sticking to the minimum repayment for the 6 months?

YorkshireBoy

B.E.N wrote: »

I'd be better just sticking to the minimum repayment for the 6 months?

That's the whole idea of stoozing!

B.E.N

YorkshireBoy wrote: »

That's the whole idea of stoozing!

Yep, I suppose it is... Just checking that there weren't any hidden perils if I just ticked the minimum repayment form on the DD form - It's been engraved in me that minimum repayments are one of the worst things to do. Just got to change my viewpoint on CCs for this whole stoozing lark!

Anyway, I think all my questions have been answered. Many thanks to all, esp. YorkshireBoy - have a drink on me :beer: