Lloyds Credit Cards - Is it right for me?

RocketPig

Hi,
I want to buy a house in a years time and while I have enough money for a deposit I have a none existing credit rating (Experian reports my details, the fact that I am enrolled to vote and my banks details, thats it!!).

I currently have £7k in 3 Vantage accounts and some more in a Lloyds savings accounts, I have been offered an "advance" card via online banking.

I'd be looking to spend £400 a month on it and pay it off full, sole purpose is to build a credit rating - but I don't want to be charged at the end of each month.

http://www.lloydstsb.com/credit_cards/compare_credit_cards.asp

Can someone please advise?

dylanuk

As a first credit card and as you already bank with them, the Lloyds Advance sounds fine - what's the problem?

As long as you pay back what you spend in full each month - no credit card will charge you interest because of the standard interest free period on purchases offered by all credit cards.

The only question as to whether or not you should get the Advance is whether you want to earn cash back say, but maybe it's a bit early for that as it's your first credit card and you might not be accepted for one.

RocketPig

I know nothing about credit cards...hence why I'm searching for some closurer

I believe if I don't pay off any outstanding balance on the day due then I will be charged at the monthly interest rate, and if I miss a minimum repayment I'll be charged £12?

izools

The Advance card is a cracker of a card to be offered as your first -

11.9% APR is a very competitive APR even for those who have spent years building up a good credit history so for that alone you should take them up on the offer before they withdraw it.

You won't pay any interest as long as you pay the full statement balance by the due date. You will pay the 11.9% APR (under 1% of the balance each month) for any months in which you pay more than the minimum but less than the full statement balance.

If you spend over the limit they give you, or don't pay one month, they will charge you £12 but more importantly damage your credit history for a long time to come - don't miss payments!

If you want to play it safe, take out the card, and you can the ask them to set up a Direct Debit so that the full / minimum (you choose) is taken each month automatically.

Still waiting for LTSB to pre-approve me for a CCard. Probably going to be a few months (years) yet...

stephane_2

RocketPig wrote: »

I know nothing about credit cards...hence why I'm searching for some closurer

I believe if I don't pay off any outstanding balance on the day due then I will be charged at the monthly interest rate, and if I miss a minimum repayment I'll be charged £12?

If you only pay the minimum or any amount but not the full balance then yes you would be charged monthly interest.
If you miss a payment that can have grave consequence on your credit report, to avoid at all cost, and yes depending on your T&C you would be charged around £12 + a black mark on credit report

RocketPig

izools wrote: »

The Advance card is a cracker of a card to be offered as your first -

11.9% APR is a very competitive APR even for those who have spent years building up a good credit history so for that alone you should take them up on the offer before they withdraw it.

You won't pay any interest as long as you pay the full statement balance by the due date. You will pay the 11.9% APR (under 1% of the balance each month) for any months in which you pay more than the minimum but less than the full statement balance.

If you spend over the limit they give you, or don't pay one month, they will charge you £12 but more importantly damage your credit history for a long time to come - don't miss payments!

If you want to play it safe, take out the card, and you can the ask them to set up a Direct Debit so that the full / minimum (you choose) is taken each month automatically.

Still waiting for LTSB to pre-approve me for a CCard. Probably going to be a few months (years) yet...

I never knew that was possible, it my was my understanding that I'd have to login to internet banking on the day it was due and transfer the money in full. Automatically seems like much less hassle!

Appreciate the advice!!

izools

RocketPig wrote: »

I never knew that was possible, it my was my understanding that I'd have to login to internet banking on the day it was due and transfer the money in full. Automatically seems like much less hassle!

Appreciate the advice!!

Just be careful, they may offer you a rediculous limit given the capital you have stowed away with them - if I were you, being your first card, I would reduce the limit (you can call and ask them to do this) to an amount you feel confident being able to clear each month in full, and once you've got used to having a card and want to make a large purchase to spread over time ask them to up it

sscott5581

The APR is low yes but watch with this card . .

This card does not offer the standard 56 days interest free even if the balance is paid in full for two months.

After the 0% purchases for 6 month Interest is charged from date of transaction.

From Lloyds

Even if you pay the balance in full, the interest charge for the period from the previous statement to the date of full repayment will be added to your account the following month.

Interest Free Period
N/A

RocketPig

sscott5581 wrote: »

The APR is low yes but watch with this card . .

This card does not offer the standard 56 days interest free even if the balance is paid in full for two months.

After the 0% purchases for 6 month Interest is charged from date of transaction.

From Lloyds

Even if you pay the balance in full, the interest charge for the period from the previous statement to the date of full repayment will be added to your account the following month.

Interest Free Period
N/A

Pardon my ignorance, but what does that mean in English?

sscott5581

Read the terms of the card

http://www.lloydstsb.com/credit_cards/advance_card_summary_box.asp

When the promotion deal in this case 0% for 6 months on purchases ends, this card charges interest from date of purchase weather the full balance is paid in full each month or not unlike other cards which have a approx 56 days interest free period (i.e. interest free from the date of last statement to date payment is due on next statement)

"I'd be looking to spend £400 a month on it and pay it off full, sole purpose is to build a credit rating - but I don't want to be charged at the end of each month." - you will be charged interest on this card regardless if you pay it off in full after the promotion rate finishes

Apply for the platinum card, this way after the promotion rate ends (3 months with this card), if you pay in full each month you wont be charged interest.

Good luck

funkyfilly

I have my own business been open 3 years i would like to apply for a business cc to expand and buy extra stock,do they search your personal file or your business.Business has been slower the last 6 months but i feel i can get things going again with a new range of products,i have had some returned direct debits does this go against me,i havent asked the bank for any money for my business i invested £10000 myself. any help would be great..