Paying off card

mr_cool

Ok, I have not had a credit card before but i am looking to get a cashback card. So I can more earn interest on my money in the bank and get casback.

I get paid on a monthly basis then usually transfer most of my wages to a savings account (no withdrawls) and keep what I need for the month.

I noticed that most cards are around 50 days interest free so does that mean the bill will be due every 50 days to pay off in full rather than monthly. I am just trying to work out how I could keep money aside to pay it and earn interst on it.

YorkshireBoy

You'll get a bill each month.

Anything you buy the day after your statement is produced will be interest free until the payment due date for the next statement.

Only if you have a direct debit in place will you be able to eek out the maximum (50-59 days) interest free period.

mr_cool

So would I be better to set up a direct debit to pay every 50 days or monthly?

YorkshireBoy

The statement is produced monthly.

The direct debit is collected monthly (for a 56 day interest free period it'll be a couple of days before your next statement is produced).

eg, your statement dates might always be the first of the month, and your payment due dates (also your direct debit collection dates) might be the 28th of the month. In practice, the payment due dates will fluctuate due to the number of days in the month...but your statement dates will be fixed (unless you opted for, or were given, a 29th/30th/31st of the month statement date).

Could I respectfully suggest you spend some time reading up on how credit cards work? Start here...

http://www.moneysavingexpert.com/cards/

CLAPTON

If you have never had credit card then its unlikely that you will be given a cashback card as they tend to go to people with a good credit history... yours will be rather sparse.
However, there is no harm in trying.
Otherwise, it's best to get any old CC card, use it regularly and pay in full each month and this will improve your credit rating.
Maybe try your own bank as they already know you.

Many credit cards give you 'up to 50 days free credit' ... the key bit is 'up to'
In practice you will not get 50 days on average and so will not get much interest in practice.

When you use a CC, you will receive a bill each month and you must pay by 'the pay by date' , so you will pay each month.

jonesMUFCforever

You misunderstand - you will pay on the due date EVERY month - not every 50 days or so.
It works like this - You buy goods on say December 1st - your statement date might be say 25th December and your repayment date might be January 15th (for argument' sake).
You set up a direct debit for the whole amount and the credit card company will take the money from your account on the due date.

You only get 50 days interest free period if your card is clear at the beginning of the charging period and you time your purchase cleverly.

McKneff

Could I respectfully suggest you spend some time reading up on how credit cards work? Start here...

McKneff

Could I respectfully suggest you spend some time reading up on how credit cards work? Start here...


that was very nicely done, YorkshireBoy
:T