l'm new to all this and could do with some advice...

stingray_316

l'll try and keep this as short as possible and hope l get the help and advice needed.
l am new to all this with credit/visa cards, l have been reading up on all this and still find it confusing on which card is best and how to work out APR and how much you would have to pay back monthly on how much you use. So first which card is best mastercard or visa.
Whats the difference between a visa debit and visa card......
Whats the difference between visa debit and visa electron......
How can l work out the interest l would have to pay monthly on APR, is there a easy way to work this out ..........
If l had a visa debit card with a planned overdraft would l pay interest straight away and again how to work out apr on this.........
Last but not least are there any credit/visa cards that you know of where you do not pay interest straight away.. EG they give you 30/56 days to pay before charging apr....
Thanks for any advice and information

LeeSouthEast

APR = 0% if you pay back your credit card in full every month, except for cash advances which you should never do anyway. This is irrespective of the advertised variable purchasing rate.

1. MasterCard/Visa is a bit of a non-argument in my book. For our discussions, they're both the same.
2. Visa Debit is a non-credit product. 'Visa Card' is unspecfic to credit/debit.
3. Visa Electron is being phased out, and is a full-authorisation product (i.e. the institution must get authorisation from the issuer every time you use it. Visa Debit doesn't do this excepting some floor/ceiling limits).
4. The easiest way to work this out is pay it off in full every month. Then it's 0%.
5. Visa Debit cards won't give you an overdraft. Banks do that. Cost? Expensive.
6. Most, if not all (?) credit cards give you 56 days interest free but this ONLY works if you pay EVERY statement IN FULL before the due date.

NickX

LeeSouthEast wrote: »

MasterCard/Visa is a bit of a non-argument in my book.

I understand your point here and to all intents and purposes it does not really matter if your card is branded MasterCard or Visa, however it is worth noting that Visa offers additional consumer protection that is not currently offered by MasterCard. This is the Visa chargeback scheme that is additional to the obligatory Section 75 cover which applies to all Credit Cards.

stingray_316

If possible would still like to know how to work out interest rate/charges.
If interest rates are 18.324% p.a for Transactions
and 24.900% p.a for cash withdrawals.


So if for example on a monthly balance l owe
£100
£200
£300 etc
what would the interest be on both rates given above....

CannyJock

You need to work out the monthly interest rate and then use that on the balances you want. If you wanted the amount to the nth degree then you'd need to divide that by the number of interest bearing days in the month then multiply by the number of days you'll be charged interest on.

There's a calculator on the stoozing site will convert APR into monthly rates, or monthly rates into APR.

CLAPTON

Well the important thing to learn is that if you pay in full and on time each month then you pay NO interest.

Unless you draw cash out on the card then you are charged a fee (3% usually) and high interest on the debt..... so never draw out cash on a credit card.

So always pay in full.. set up a dircet debit for the full amount
Never draw out cash.


But you can work out interest approximately as follows

on £100 of purchases with an APR of 18.34% the interest is approximately
100 x 18.34/(12x100)

stingray_316

But you can work out interest approximately as follows

on £100 of purchases with an APR of 18.34% the interest is approximately
100 x 18.34/(12x100)
.......................................................................................................

So what would the interest be on £100 if this was on a monthly balance . Sorry for seeming a bit thick on all this apr interest query but it's something l would like to understand more..

LeeSouthEast

Just do the calculation above. Excepting ppi, the interest on £100 at 18.34% will be £1.59 a month.