New to credit cards... Questions Questions!!

MissWorzel

I've been doing some reading, and here's what's what.

My scooter [my only form of transport!!] died a few weeks ago, I basically have to purchase a new one, and fast. I've been given a quote for a second hand one, with my old scooter [for parts] as a deposit... It's £530.

Now I need to buy this, I have no other way to get to work otherwise, and have been spending up to £30 a week giving petrol money to people for lifts... this is not something I want to be doing long term!

I have no savings [yes, shoot me!], and can't afford to pay for this out of my wage on 10th.

I've looked at 0% interest credit cards, and have been accepted for a halifax one... 0% for 10 months on new purchases. I've not sent off for it yet, but have got the papers through the post....

The reason I want to purchase this on a credit card, is that I can pay off the balance within 3 months, this means that I wont incur any interest charges, is that correct? That's why I don't want to take out a loan for a small amount, as I'd be paying interest, where on this I would not... I think.

Are there any other charges I would incur other than interest, such as fees for using the card/having a balance at the end of the month? If so, what am i likely to be paying?

Ta

Worz

Moggles_2

As long as you keep within your terms & conditions and make at least the minimum payment on time each month, you won't be charged interest or fees.

MissWorzel

Well i've read, and re-read the pre-contract information, and the credit agreement that I'm happy to sign... I KNOW I will pay it all off over 3 months, so I should be OK.

Credit cards just scare the !!!! out of me... So many people use them irresponsibly that they seem to have a stigma attached to them thats a bit off putting!

Moggles_2

Well, I wouldn't be without mine.

There's risk attached to everything but, in general, credit cards are the safest way to purchase goods/services. (If you carry cash, it could be nicked. If you use cheques, they could get altered.)

With today's online facilities, it's never been easier to keep track of spending, payment due dates etc., than it is now. I'm sure you'll be fine.

MissWorzel

Thanks Moggles, that's reassured me somewhat!
I'm looking forward to having a nice bright pink CC in my purse too... how gay :P

rdty21

The only thing you might be charged is a transaction fee. But i think that is decided by the retailer. I think it is usually a percentage of the purchase price.

Moggles_2

rdty21 wrote: »

The only thing you might be charged is a transaction fee. But i think that is decided by the retailer. I think it is usually a percentage of the purchase price.

That's true. Some trades either don't accept credit card payment or charge a premium for doing so.

MissWorzel

Ah, this is a small little shop run by a dainty old man...
Is there any charges for drawing out the cash at a cash machine, or is that not classed as either a purchase/balance transfer, and therefor ill be charged interest?

Gosh, i'm so confused by all these things!

rdty21

Dont withdraw the cash!!

MissWorzel

Woah, OK... haha.

Am i allowed to ask why not?

I'll pop down today to see if he accepts credit cards... What are my options if he doesn't?

rdty21

Why dont you phone up and ask him if he accepts credit cards and also ask him if he charges. I think it is usually about 2 or 3% but it depends on the retailer.

If you withdraw cash you will be charged interest.