Advice on my Credit Cards

dwarfer

Hi, I bank with Lloyds TSB and Alliance and Leicester.

My bills are charged to Alliance and Leicester, but my free cash (my money) is in TSB, its just to make it easier for me to know how much I have for myself.

My TSB is 800DR (with 1000 overdraft) but I was thinking of getting a credit card with TSB for emergency cash, like if I'm in a queue at the store and have been rejected for a bag of nic'nac, to save myself red-faced my TSB credit card saves the day!

I will only ever use it for emergency cash like this. I am debt free, apart from the TSB overdraft. Is this a good idea?

The card I am thinking of getting is 11.9% "Advanced card" as it is the lowest APR and I think it is the best for me.


Thanks in advance

YorkshireBoy

Following the 6 months intro period, there's no interest free period on the Advance card...meaning your purchases attract interest from the moment you enter your PIN in the machine.

Pick another card!

dwarfer

YorkshireBoy wrote: »

Following the 6 months intro period, there's no interest free period on the Advance card...meaning your purchases attract interest from the moment you enter your PIN in the machine.

Pick another card!

Interest is 11.9%, the lowest one, right?

Which card do you recommend, I only want it for a possible emergency, which will be paid off the following month
http://www.lloydstsb.com/credit_cards.asp

YorkshireBoy

dwarfer wrote: »

Which card do you recommend, I only want it for a possible emergency, which will be paid off next month

Pick one that has the longest interest free period post any intro offer. Should be able to get up to 50-56 days.

Even better, pick one with a long 0% on purchases intro period. Then, if you can't pay the following month you won't pay any interest full stop...never mind "only" 11.9% APR.

http://www.stoozing.com/purchases.php

dwarfer

YorkshireBoy wrote: »

Pick one that has the longest interest free period post any intro offer. Should be able to get up to 50-56 days.

Even better, pick one with a long 0% on purchases intro period. Then, if you can't pay the following month you won't pay any interest full stop...never mind "only" 11.9% APR.

http://www.stoozing.com/purchases.php

i appreciate your help and please forgive possible "dumbness" from me, but surely i will have the card a lot longer than 50 days (prob 10x longer) and the interest of those longer non-interest periods will be a lot higher in the future, remember its an emergency card and when the interest period is up I will have a much higher interest rate if i chose a longer interest-free period card

i believe the "interest free" periods is to lure people in so they can charge more interest in the future, only a few people will benefit from long interest-free periods, and they'll be the ones that happen to use the card heavily during those periods

surely i will benefit from a lower interest card, forgetting the interest-free stuff as i wont benefit from that as its an emergency card and wont be taking advantage of the free period

right?

CLAPTON

The way most CC work is that if you pay the full amount off each month before the due date then you pay no interest... this is normally described as have 'up to 50 days interest free credit'.

So for these cards if you pay in full each month then the APR doesn't matter as you never pay any interest.

However, Yorkshioreboy is pointing out to you that the Lloyds advance card is very unusual in that it charges interest even if you pay in full.... so avoid it.


Also I would suggest you seriously address your spending to reduce the 800 OD... start trying to reduce it by say 50-100 per month until its zero and then start to actually save money.

Being short in a supermarket queue is not an emergency..its just bad budgeting

dwarfer

CLAPTON wrote: »

The way most CC work is that if you pay the full amount off each month before the due date then you pay no interest... this is normally described as have 'up to 50 days interest free credit'.

So for these cards if you pay in full each month then the APR doesn't matter as you never pay any interest.

However, Yorkshioreboy is pointing out to you that the Lloyds advance card is very unusual in that it charges interest even if you pay in full.... so avoid it.


Also I would suggest you seriously address your spending to reduce the 800 OD... start trying to reduce it by say 50-100 per month until its zero and then start to actually save money.

Being short in a supermarket queue is not an emergency..its just bad budgeting

Ahh I see he's getting at. Told you I was dumb lol. I failed to mention I would prefer to use TSB as I can manage my banking online easier as all my accounts will be on one page, rather than arsing about with different companies - i dont mind having a bigger APR if i can have it on one screen.

You have answerd my question, I think I will go for the Advanced card, its the lowest APR, regardless to the interest free stuff because the APR was a lot more and it will be more beneficial in the long run

Moggles_2

As above, that LloydsTSB card is definitely one to avoid, IMO.

Have you considered Barclaycard Simplicity?

This card offers up to 56 days interest free on purchases, provided that you pay your statement balance in full and on time each month. Otherwise, you're charged 6.8% APR (variable)

http://www.barclaycard.co.uk/personal-home/cards/simplicity/index.html?WT.mc_id=116106893020561-&TC=JSGLA19547&wt.srch=1

CLAPTON

dwarfer wrote: »

Ahh I see he's getting at. Told you I was dumb lol. I failed to mention I would prefer to use TSB as I can manage my banking online easier as all my accounts will be on one page, rather than arsing about with different companies - i dont mind having a bigger APR if i can have it on one screen.

You have answerd my question, I think I will go for the Advanced card, its the lowest APR, regardless to the interest free stuff because the APR was a lot more and it will be more beneficial in the long run

I don't really see why you're determined to pay interest when you don't need to.

NickX

I really must urge you to take the advice that you have already been given.

The Lloyds TSB Advance card is not a good deal. It is the only card that does not offer any interest free period, so you WILL pay interest. With all other cards you can avoid interest by paying in full every month.

The people who have replied to you are very experienced users of credit cards and ignoring their advice will be to your detriment.