New to credit cards some help please :)

Verian_wynn

Hello there I am currently applying for a credit card from capital one, I am confused and I was wondering if someone could help me.

1,Do you have to pay monthly just to own a credit card?
2,If I brought someone for 10 pounds and paid back 10 pounds the next day would I only have to pay 10 pounds.
2, If i brought someone for 10 pounds and paid when i got my monthly statement would I still only have to pay 10 pounds?


and lastly what does this mean? I don't understand it.

Monthly Payments:
Monthly payments are due by the date stated in the statement, a date usually 26 days after the statement date.

The monthly payment is:
- the full outstanding balance if it is less than £5, but otherwise the greater of:

- An amount equal to the total of (i) 1% of the outstanding balance on your account; (ii) interest applied to your account in that month; (iii) all Default Sums incurred in that month; and (iv) one twelfth of your Annual Fee, or

- £5.


Thank you ever so much.

dylanuk

Hey,

1,Do you have to pay monthly just to own a credit card?

No. Some credit cards have an annual fee - but it's limited to premium cards.

2,If I brought someone for 10 pounds and paid back 10 pounds the next day would I only have to pay 10 pounds.

Yes as long as you bought something in pounds sterling and it qualified as a purchase (withdrawing cash, shopping vouchers, gambling, foreign currency, etc.. these things are classed as cash and there is usually a fee plus interest from the date of transaction).

2, If i brought someone for 10 pounds and paid when i got my monthly statement would I still only have to pay 10 pounds?

Yes as long as your payment reached the credit card company by the date they specify for full payment to be made to not charge interest on purchases. Same as above also applies.

Monthly Payments:
Monthly payments are due by the date stated in the statement, a date usually 26 days after the statement date.

The monthly payment is:
- the full outstanding balance if it is less than £5, but otherwise the greater of:

- An amount equal to the total of (i) 1% of the outstanding balance on your account; (ii) interest applied to your account in that month; (iii) all Default Sums incurred in that month; and (iv) one twelfth of your Annual Fee, or

- £5.

When you get your statement it will have a date that you must either pay in full, and another date that you must pay the minimum by. If you DON'T pay in full by the 'full payment' date - you WILL be charged interest on your purchases. If you haven't paid in full and then you DON'T pay the minimum by the 'minimum payment' date you will be charged additional fees for defaulting on your account.

The minimum monthly payment basically means:
- If your balance is £1000 - then you have to pay off 1% of the balance (£10) + any interest (this is because this is more than £5).<br>
- If your balance was £10 - then you'd have to repay £5 (because 1% (10p) + interest is less than £5.
- If your balance was £2.25 - then you'd have to repay the full amount (because it's less than £5).

Basically you have to pay back 1% of what you owe plus the interest charged that month, or if it's less than £5 - you have to pay back £5.

Verian_wynn

Thank you so so much I really appreciate the help, I couldn't ask for a clearer answer. Thank you