Credit card newbie

Ababo_2

Hi everyone. I've been lurking about the forums for ages here, but now I finally have a problem that I can ask for some advice about!

I've never had a credit card before. Always paid using my debit card instead because credit cards worry me. I've recently found, however, that I need a credit card for certain purchases, and my friend has been extolling the virtues of the credit card to me. The truth is that I would only ever use it if I really had to. So my question is, as long as I paid off the card in full each time I made a purchase, would everything be ok? And if I don't spend on it at all, would there be any other charges?

I'm guessing it all depends on which card I go for, so could anyone give me advice on who to sign up with if I'll only be very rarely making small purchases on it? Any advice would be much appreciated!

tanith

If you are only ever going to make small purchases then why not just stick to the Debit card.... I may be wrong but I can't think of anything that I couldn't buy with my Debit card as long as there was enough money in the account .

gem4

From my experience with my old Halifax Visa, they only contacted me and said they would close it when I hadn't used it for 12mths, if you use it occasionally you'll be ok.

However, be aware that there are some cards out there which do not offer 56 days to pay it off before they charge interest.

My LLoyds Advance charges interest from the day of the transaction, so even if I paid it off the very next day I would still have 1 day interest charged. This is because it was the cheapest option for a card which is 'never' paid off and I never did pay it off. Now that I've seen the light, it's paid off and it has to go, in favour of one that will give me 56 days grace.
I now have different cards for different uses.....its best not to use one card for all types of transactions.

Slayerx

If you must get one, make sure you get one with an intrest free period so you can make the purchase and pay it off without been charged intrest.

Halifax do a 12 month intrest free one at the moment but there could be better offers.

sicker

I see no problem with credit cards used sensibly and clearing the balance each month. I personally would recomend Egg Money as there is 1% cash back on all you spend and 4% paid on positive balances. But be CAREFUL, these cards not used with respect can lead you into a lifetime of DEBT.
Best of luck

John

exel1966

tanith wrote:

If you are only ever going to make small purchases then why not just stick to the Debit card.... I may be wrong but I can't think of anything that I couldn't buy with my Debit card as long as there was enough money in the account .

Even small purchases will earn cashback with the right card, but more important is the protection you get from using a c/card. Debit cards offer no protection whatsoever if something goes wrong, at least with the c/card you have the consumer credit act to fall back on if needed.
Another major factor to consider is that by having a credit card and using it responsibly you will build up a credit history which will help you when you do need to make a 'large purchase' - house,car, any other finance etc.

There are literally hundreds of cards to choose from - a good place to start would be by reading this : - https://www.moneysavingexpert.com/creditcards and this :- http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1103212597,43859

gem4

sicker wrote:

I personally would recomend Egg Money as there is 1% cash back on all you spend and 4% paid on positive balances.

I'd have to agree with you there. I only ever spent money with my debit card thinking I was being good. Now I transfer money from my bank account to preload my Egg Money and spend using the egg mastercard instead, the same way as I used my debit card, only now I get 4% interest on the cash waiting to be spent and cashback when I spend it too. I love my Egg money card.