I'm a credit card virgin and I'm scared!

Craig_W_2

I'm considering getting an ASDA card like this:

http://www.asdafinance.com/credit-cards-loans/credit-card/overview/

I want it mainly to save the £3.50-5.50 delivery charge for home deliveries.

But I'm totally clueless when it comes to how cc's work and have no idea what the pitfalls are. For example, is there some way that I can guarantee that I won't pay any charges? And can I pay off the borrowed amount automatically to prevent me from forgetting to make a payment? etc

fozmcfc

I've seen many comments made by experienced MSE users, saying Asda are not easy to get a card off, you need a good, long credit history.

If you have little or no history of credit, particularly cards/loans then you could struggle to get one.

If you do get one, then the best way to avoid charges, is to set up a direct debit to pay the card off each month and make sure you have the money in the bank when the direct debit is called for.

GothicStirling

I got one when it was GE Money, I don't recommend Santander at all.

You'll pay more in credit card charges, than the delivery cost. If I were to recommend a credit card I would look at Barclaycard or Mint [RBS]

I don't see how you want to avoid charges. Your borrowing someone elses money, and you want it for free?

You can set up a direct debit to pay off the balance every month.

Tixy

GothicStirling wrote: »

You'll pay more in credit card charges, than the delivery cost.

Assuming they pay in full every month then they'll pay no credit card charges and would save the delivery charges on their asda shopping - assuming 3deliveries a month that could be £15 a month saving.

So its definitely a good idea. But I agree that the OP may find they cannot get accepted for an asda card.

Getting a barclaycard or mint card won't save them the asda delivery charges.

Craig_W_2

GothicStirling wrote: »

I got one when it was GE Money, I don't recommend Santander at all.

You'll pay more in credit card charges, than the delivery cost. If I were to recommend a credit card I would look at Barclaycard or Mint [RBS]

I don't see how you want to avoid charges. Your borrowing someone elses money, and you want it for free?

You can set up a direct debit to pay off the balance every month.

What charges will I have to pay? I thought I wouldn't get charged if I paid it off every month. Is this not right? :think:

Craig_W_2

Tixy wrote: »

Assuming they pay in full every month then they'll pay no credit card charges and would save the delivery charges on their asda shopping - assuming 3deliveries a month that could be £15 a month saving.

So its definitely a good idea. But I agree that the OP may find they cannot get accepted for an asda card.

Getting a barclaycard or mint card won't save them the asda delivery charges.

Thanks. That's more what I was thinking.

I think I'll see if I qualify.

noseinbookgirl

Hi,

I've checked my credit rating with this website by answering the 10 questions and i've done a soft credit rating through moneysupermarket.com and i have a 'good' credit rating.

I applied first for the barclaycard but i was rejected and i've just found out that my application for a post office card has also been rejected.

How long do i have to wait before i apply for another card? Did it hurt my chances that i didn't specify on the application that i specifically wanted it because of it's 0% BT?

Any help would be gratefully received!

Craig_W_2

Well I got accepted. So there's another first achieved!

izools

Congratulations! Happy spending :beer:

Just remember to set up a DD for the full payment each month if you want to avoid interest charges.

splatt30

Craig W - I've not been through all the small print on the asda site but as long as you don't break any of their conditions you should have no fees.
SO...
1. pay the full amount of the statement in good time before the due date. Either do this by setting up a direct debit for the FULL amount (NOT the minimum) or as soon as the bill arrives pay it for a date 7 days before the due date on online banking.\
2. don't go over your credit limit
3. don't use it to withdraw cash
4. don't put the card into credit

Following these rules you can use credit cards, keep your money in your bank longer, and gain from the perks such as the free delivery.
I have been using credit cards to pay for ALL my spending for 10 years and have not paid 1 penny in interest or fees (except balance transfers for stoozes but let's not complicate things). I recon I'm at least £3000 better off for having done so, thanks to cashback, vouchers, interest, stoozes.
You just HAVE to be disciplined!!
Good luck

billymadbiker

splatt30 wrote: »

Craig W - I've not been through all the small print on the asda site but as long as you don't break any of their conditions you should have no fees.
SO...
1. pay the full amount of the statement in good time before the due date. Either do this by setting up a direct debit for the FULL amount (NOT the minimum) or as soon as the bill arrives pay it for a date 7 days before the due date on online banking.\
2. don't go over your credit limit
3. don't use it to withdraw cash
4. don't put the card into credit
Good luck

How would putting the card into credit (aside from losing any intrest paid on the money being elsewhere) cost anything?

Only asking as I paid some money off the wrong card by mistake and I have one with a positive balance of £300+.

Does not look like they are charging me anything for having it sat on there?