Newbie advice on CC please...

tibbyuk

Hey guys and girls,

Was just wondering if somebody more knowledgeable on credit cards could explain somethings for me, and possibly recommend a card?

I work away from home 5 nights a week, and get all my expenses paid for by my employer. Now I have a corporate credit card, but my colleagues have advised me to get my own card, and get a reward based one, as the expenses are paid for by the employer.

I am interested in getting a Airline reward card, but was just wondering how the charges work?

Say for example I spend £500 a week on the card, and it is paid off the following week, will I still pay a percentage charge on the actual transaction (say 1%)? Or will I incur no charges as I have paid off before the month is ended (as well as not paying interest)?

I was looking into getting the BMi card, as it seems to offer a good starting deal, and good airmile rewards, but am open to any suggestions if people with more experience could advise?

Thanks for any help you can offer

luci

You normally have up to 56 days free credit where interest isn't applied on purchases.

tibbyuk

and then past that, you pay a percentage of each purchase?

redpete

Each month you will get a bill. This will give you the balance outstanding at the date the bill was produced and the date that payment is required by. If you pay the full balance outstanding off by the date stated there will be no interest charges to pay.

So, say your statement date is the 16th of the month. You will get a statement dated 16th Sept including all spending between 17th Aug and 16th Sept which could come to £500. The payment date might be 10th October, if you pay the £500 into the CC account on or before 10th OCt you will have no interest to pay. So it's possible that you could buy something on 17th August and not pay for it until 10th October - about 56 days later.

This only works if you pay it off in full each and every month. If you don't the full amount off one month then you will pay interest on all purchases on that bill and you will need two consequtive months of fiull payment before you get back to 0 interest again.

(This is the way most cards work, I believe there are some that are different but I don't know the details.)

tibbyuk

Thank you.

I don't suppose any of you have any experience with Airmiles CC's? Any recommendations?