First credit card help!

lauren123

Hi. I applied for a capital one credit card today and was approved, it will be with me in 5-7 days. I have never had a credit card before and have a few questions, would be greatful if someone could give me hand. Some might sound stupid but like I said I dont know much about them...

1. Can you withdraw money from a atm machine, if so is there a charge?

2. Say for example I have £2000 limit and spend £2000, will i not be able to use the card until i have paid back the amount? Or when I pay my monthly payments will the limit go back up?

3. Can you pay money into the account before the statement arrives, say make a payment online?

4. are credit cards worth the hassel or can they be a good idea?

Like I said, never had one before. Only intend to use throughout december as is going to be a very hard month financially. Only the 2 words CREDIT CARD seems to scare me a little Especially after reading all the bad things on here. Thanks in advance. Lauren X

lauren123

Also...sorry :embarasse They have told me the min payment is £5.00 pm. Is this the same every month? Or does it depend on the amount I spend. Reason I ask I just saw a thread, a bloke is paying off £3000 and his min payment is £100 pm? thanks x

elfen

Min payment is either £5 or 5% of the balance, whichever is greater. So, you spend more, you pay more. NEVER EVER use them for cash withdrawals, interest is charged at a VERY high rate from the moment you withdraw. Use it carefully, and keep it for emergencies (don't take it everywhere or you'll use it)

PNPSUKNET

if your new to credit cards, your limit will be about 100/200 max with capital one. which card is it? As above never take cash, you can pay online but always set a dd up also incase you forget. Pay in full and dont abuse it can work out worth while.

lauren123

well i have one with barclays but NEVER used it..i applied for another hoping to get a higher limit? Will that work?

stephen1991

Hello Lauren,

Capital One seem to accept a lot of people for their credit cards, but tend to give lower limits to begin with (in my own experience, being a Capital One customer twice) and from what I have heard off people I know.

Like a lot of credit companies they judge the credit limit (and depending on the company/card) the APR on your credit scoring/rating.

If you have had your Barclaycard for other 6 months, and not asked them for a APR reducation or a credit increase in the last 6 months they are likely to do something for you, but if you have never used it so far their will be no activity on that particular card, meaning it may be harder to have credit increases/APR reducations.

Just out of interest which Capital One card did you choose? I think all of them (or most of them) have a minimum credit limit as £100 (I know that is the case on the Classic and Progress atleast), the Classic is the most basic card (with the highest APR that isn't promised to reduce, unlike the progress, providing the account is well managed).

nc1873

Use your Credit Card like a Bank Card.

If you can't afford something save up for it.

The rules i try and follow.:o

splatt30

Credit cards aren't evil if you use them correctly. It can help build your credit rating and some cards will reward you for spending on them.
My credit card rules are:-
1. DO NOT under any circumstances use them to withdraw cash.
2. DO NOT only pay the minimum payment - it will take forever to clear the debt and cost you a fortune.
3. Ideally CLEAR the balance IN FULL every month - you build your credit rating, keep money in your bank account longer and it costs nothing extra.
4. Have a direct debit set up for AT LEAST the minimum - this will prevent you ever making a late payment, these are heavily charged. You can then make an extra payments to ideally cover the same amount.

(ie Statement arrives on the 1st of the month. Payment of £150 is due by the 25th. Minimum payment is £5. Direct debit for £5 will leave on the 25th to cover minimum. Pay £145 either online or by cheque on the 19th to make sure it is cleared in time.)

5. Most importantly DO NOT spend money that you cannot affoard to repay!!!!

lauren123

i cant remember of hand what capital 1 card it was and it still hasnt arrived, they said they will send the credit limit along with the pin and card. I only applied for the barclays card about a week ago, it came through the post on friday but the same day got a letter addressed to myself and a man ive never heared of !!!!!!?? Saying my application didnt add up and i need to send some different doccuments away so they can sort it. Am now thinking a loan would be better but cant seem to find a suitable one.

td_007

lauren123 wrote: »

i cant remember of hand what capital 1 card it was and it still hasnt arrived, they said they will send the credit limit along with the pin and card. I only applied for the barclays card about a week ago, it came through the post on friday but the same day got a letter addressed to myself and a man ive never heared of !!!!!!?? Saying my application didnt add up and i need to send some different doccuments away so they can sort it. Am now thinking a loan would be better but cant seem to find a suitable one.

If you are looking for a loan, then you will most probably be better off going for a loan rather than trying to get money off credit cards. A quick look will show you that the interest rates on cash withdrawal on CCs are exorbitant! If you are looking for something specific to purchase, then go for a 0% purchase card which will allow you pay back the money over a period of time.

Zack1

elfen wrote: »

Min payment is either £5 or 5% of the balance, whichever is greater. So, you spend more, you pay more. NEVER EVER use them for cash withdrawals, interest is charged at a VERY high rate from the moment you withdraw. Use it carefully, and keep it for emergencies (don't take it everywhere or you'll use it)

That's so true! I probably would have brought most of the stuff I do even if I didn't have the card, but I probably would've thought a lot more about it if it was cash, and wouldn't be spending anywhere near what I was doing during the breaks at uni!

Only good thing is that as it's itemized you see all the transactions, and counting them makes you realise then you put it right a lot quicker . So 2 months ago I spent quite a bit between uni lectures, now I am a lot more careful with it