Newbie - Just Applied For Sainsbury Card

alanshave

Hi everyone,

Just applied for my first credit card, using Martin's articles I plumped for the Sainsbury's one with 10 months 0% interest on purchases. Surprisingly they have said I can have a credit limit of £1100. I say surprisingly as I am a student with very little credit history.

Anyway I wanted to pick all your brains on what I can do with this £1100, am I able to use it to bring my current account back to £0? Or is it only for purchases? Maybe some of you have other ways of getting around this?

I'm intent on not wasting the £1100 and not knowing where it has got to. If there is no way of using the money without spending it then I think I would rather not use it at all.

In the long run I know I can pay the card off before the 10 months are over as I should have a graduate job come September, i'm guaranteed a decent paying job over the summer, and I'm currently waiting on a rather healthy cheque from the Taxman! So in simple terms this card is just a short term fix.

Oh and one quick question, Sainsbury's say that they will send me the agreement to sign within 10 working days and once I've returned that they shall send me my card out. Does anyone have any experience as to how long this process normally takes with Sainsbury's.

Many thanks in advance,

Alan.

King_Of_Fools

You can only use the card for purchases if you want to use the 0%. If you carry out a balance transfer or withdraw cash you will be charged at a much higher interest rate until you pay off everything that you owe.

The best thing for you to do is make all of your purchases with it (everything from grocery shopping to larger purchases) instead of using cash or another card. Over the 10 months you will then be able to slowly keep hold of the cash you would have otherwise used in your bank account to offset your overdraft.

Bokken_2

alanshave wrote:

Hi everyone,


Oh and one quick question, Sainsbury's say that they will send me the agreement to sign within 10 working days and once I've returned that they shall send me my card out. Does anyone have any experience as to how long this process normally takes with Sainsbury's.


.

Mine took about nine days as there was a weekend in the way of a prompt deliver by the Royal Mail.

alanshave

Good reply's guys. Suppose if I get cash back at the supermarket or at the bar where I work then that will count as a purchase rather than a cash withdrawal?

King_Of_Fools

alanshave wrote:

Good reply's guys. Suppose if I get cash back at the supermarket or at the bar where I work then that will count as a purchase rather than a cash withdrawal?

AFAIK, you cannot get cashback on a credit card!

Joe_Bloggs

@alanshave
Cash back is a cash advance with a credit card, matters are different with a debit card. Avoid getting cash from ATM machines as well. Cash advances attract an instant charge of 2% (£2 min) plus 1.53% per month (around 20% per annum). If you have 0% purchases on your card and then use your card for a cash advance then you will have messed up. In order to pay off the cash advance you will have to pay off all your 0% purchases. Cash advances are very poor value in my view. You also have to find 3% of the outstanding balance each month. If you miss a payment the whole 0% deal is off. Don't risk trashing your credit record. Also in an ideal world you will have savings, earning interest, that equal the balance on your 0% card. This is sometimes termed slow stoozing.
J_B.

alanshave

Thanks guys, that'll be my credit card newbie-ness on the cashback front.

alanshave

Right, an even trickier question for you related to this cash advance thing. If I was to register my new credit card on my paypal account and send £500 to someone or a company as payment for something, would this count as a cash advance or a purchase?

frivolous_fay

A payment... but the recipient would pay fees on that £500, remember!

alanshave

Ah well, partially true. At the minute Betfair have 0% fee's till the end of May on Paypal deposits, up to a maximum of £500. So my plan is to send £500 from my credit card to my Betfair account and withdraw it to my bank account. Should work.

Bokken_2

alanshave wrote:

Ah well, partially true. At the minute Betfair have 0% fee's till the end of May on Paypal deposits, up to a maximum of £500. So my plan is to send £500 from my credit card to my Betfair account and withdraw it to my bank account. Should work.

It sounds like you have applied for the wrong card.
You are trying to carry out a Super Balance Transfer in a roundabout way using a CC which should primarily be used for purchases.
I would use Sainsbury's card for slow stoozing or for puchase and get another card for the transfer of your £500.