First Time User of Credit Cards - please be patient

originalmiscellany

So I'm a regular in the MFW section, and have a few qns to ask please.

I've never used a credit card (I have one as a backup, and have used a store card once) which gives you an idea as to how I view credit cards!

Now the issue is I'd like to buy some electricals (totalling around 2-2.5k in value), and if possible I'd like to put it on the "best" card going, for as long as possible, as in a years time, we should be mortgage free, and we have a mortgage where we can dip into should we need the money to pay for the electricals - but the first priority is to clear the mortgage, which will give us plenty of time to get the money for the electricals. So paying for it isn't a worry.

Looking at the "best buy", BarclayCard Platinum 0% for 20mths, 3.2% fee - online deal seems to be the best.
But I'm confused -

a) Can I just walk in and apply for one over the counter or is it online only?
b) Would I get say a 3k limit any problem?
c) What does the 3.2% fee mean? Every month/year (?) I have to pay 3% of the fee to them?
d) Is the 0% for 20 months based on ANYTHING I buy on this or transferred from other cards?
e) If it is transferred from other cards, if I use my reserve credit card, buy the stuff then how do I switch it to the BC Platinum? and I assume I keep my current reserve credit card, or does that "disappear" into the ether when I switch it?

As you can see I'm quite naive in terms of CC's, so if someone could metaphorically hold my hand in this dangerous forest, I would be grateful.

Thanks in advance and please ask any qns if they will help you understand and answer my query

OM

YorkshireBoy

originalmiscellany wrote: »

a) Can I just walk in and apply for one over the counter or is it online only?
b) Would I get say a 3k limit any problem?
c) What does the 3.2% fee mean? Every month/year (?) I have to pay 3% of the fee to them?
d) Is the 0% for 20 months based on ANYTHING I buy on this or transferred from other cards?
e) If it is transferred from other cards, if I use my reserve credit card, buy the stuff then how do I switch it to the BC Platinum? and I assume I keep my current reserve credit card, or does that "disappear" into the ether when I switch it?

(a) Can't answer that, but a quick call to them would confirm?
(b) Nobody here can answer that question.
(c) For every £1000 of debt you balance transfer to that product you'll pay a £32 one-off fee which will be added to your balance.
(d) Balances transferred from other cards.
(e) Once the card is open you call Barclaycard, and simply ask them to transfer the balance from your "current reserve card", which will remain open.

You may find the guides in the credit card/loan section of the main site a useful read...

http://www.moneysavingexpert.com/cards/

originalmiscellany

Thanks YB - I'm reading them up this morning, and it's all a bit confusing - I can see how people can run up debts very quickly with CC. I appreciate you taking the time to reply.
Thanks for point c, seems like if you're transferring a chunk of money around, 3.2% isn't a lot but if you move from CC to CC it could quickly build up.

I'll keep reading up and will post back any other questions I might have.

YorkshireBoy

You could avoid the 3.2% fee by buying on a M&S credit card...they're currently offering 15 months 0% on purchases.

Just out of interest, what's your mortgage rate?

Fruit_and_Nut_Case

Excellent answers from YorkshireBoy.

Just to expand on (b). There's no guarantee that you'll be offered the card, let alone being able to predict what limit might be offered. The banks have tightened up considerably in the past few years.

originalmiscellany

2.29% (Or base rate +1.89). If you look at my thread in MFW, you can see we're hammering the mortgage down, hence me wanting to not touch the mortgage savings until we're clear, and if I can put this on hold for say 12 months, that would provide the perfect solution.

GemBlueTopaz1984

hi OP,

If you are planning to use the card for a purchase you will need to apply for a 0% on purchases card. The Barclaycard you are looking at is 0% for balance transfers for 20 months so you will only benefit from that if you are planning to use it to pay off another card. the 3.2% fee is a set fee for allowing the balance transfer. For purchases, like a previous poster has said the M & S card has 15 months @ 0% for purchases so this might be a better option for you if you can be approved, also no one can guess how much you will be approved for.

Gem

originalmiscellany

Hi there - I've gone and followed your advice, the M and S card- been approved, just waiting now to get my paperwork through and see how much my limit is. Will be pleased as it will mean I get some cash to spend, and have stacks of time to save up to clear it, which looking at my signature shouldn't be too much of a problem I hope

MarlinD

YorkshireBoy wrote: »

You could avoid the 3.2% fee by buying on a M&S credit card...they're currently offering 15 months 0% on purchases.

Just out of interest, what's your mortgage rate?

What is M&S credit card? I am also a novice user and recently one of my two cards has been blocked due to unauthorized payment attempts.

Could it be possible for me to opt M&S credit solutions as most of my payments are online and some automatic payments I guess blocked my card.

splatt30

OP - just be sure to set up a direct debit for the minimum payment every month, or have some other fool proof way to ensure it is made. If you don't then the 0% will be revoked and you'll end up having to repay early

originalmiscellany

Have CC, have set up a DD to pay the minimum - have been pleased with how slow it is for the first payment to go out of the account...
Bought stuff mid April, paperwork coming to me mid May, first payment will be out something like mid-June. Then time to save my pennies to clear the full amount in a years time.
Just posting this so it's a full history of this.