New to credit cards. Need advice please.

mboro

Please excuse my dumb ignorance and possibly bad spelling.:rolleyes:

As I have mentioned in another thread..RBS have OK'd it for me to have a credit card. I dont know what one yet or what the limit is. (will find out later today).


This will be my first CC.:eek:

How do I use it without getting in to more debt ...is that at all possible?
I know I dont have to use it but its there as a safety net should there be an life or death situation hehe.:p

You buy a product at a store e.g. a computor, the bank/CC pays for the item in full and then you pay the bank back the cost of the item in monthly instalments??? Have I got that right? what about interest charges ? Is it better to pay more than they want or exactly what they want ?

Im really sorry for the mebbe basic questions, but I want to know what to expect before it lands me in the poop.:rolleyes:

I did tell you I was new to this Credit Card stuff.

TIA.

seagles_2

If you pay monthly you get charged interest on wha tis outstanding. You are asked to pay a minimum per month and if you pay that then what's left you pay interest on. Not sure what your interest rate is so cannot comment on what it will cost you.
If you do not want to get into debt with your CC, then ask them to set-up a direct debit to pay the full amount off per month. This way you get a bill telling you what you owe and it will be automatically taken from your account (as long as you have the money of course), but if you cannot afford that then at least set-up a dd for the minimum payment.

Raptor.:rotfl:

exel1966

mboro wrote:

How do I use it without getting in to more debt ...is that at all possible?
I know I dont have to use it but its there as a safety net should there be an life or death situation hehe.:p

You buy a product at a store e.g. a computor, the bank/CC pays for the item in full and then you pay the bank back the cost of the item in monthly instalments??? Have I got that right? what about interest charges ? Is it better to pay more than they want or exactly what they want ?

Im really sorry for the mebbe basic questions, but I want to know what to expect before it lands me in the poop.:rolleyes:

I did tell you I was new to this Credit Card stuff.

TIA.

Use your c/card wisely and be disciplined with it. Just because you have available credit does not mean you have to spend it. When you have assertained what your credit limit is ask yourself do you really need that much ? If not get the limit reduced. You don't have to accept the limit offered.
When using your card for purchases you will usually get up to 56 interest free days if you pay off the full balance. Never use your card for cash withdrawls from ATM's as you will pay through the nose for it and won't get any interest free period.
Generally the minimum payment amounts are in the region of £5 or 3% of the outstanding balance. The longer you take to clear the balance the more interest you will pay so it's best to pay as much as you possibly can. Pay it all off by the due date and you won't pay a penny in interest.
An added bonus of making purchases with your c/card is that you receive protection under the Consumer Credit Act if things go wrong. By that I mean for example that if you order something over £100 (like a fridge) and pay for it using your card and the company goes bust before you get it, then your c/card company will be jointly liable and will have to reimburse you. You don't get that protection using a debit card.

mboro

Thanks for the advise peeps.