advice please? (im confused)

gazza1988

can i please ask someones advice?

ive read the article, followed the flow-chart, got to cashback/reward cards.

right all this tiered cashback system really has me confused, i was confused by the whole article (one minute it said tescos card was good (£2 for every £100), the next it was bad???(they halved the points you get))

im not too bothered about any rewards, (but ones where i can get money off dvds, games, etc would be nice) i would use the card to pay for stuff like xbox live (they only take visa, Mastercard, and amex) and a few eBay payments etc

i currently have a solo card from Natwest (current plus account). i earn about £9,000p.a.

i try to never buy something that i cannot afford. i've seen what it can do to people

Bokken_2

Sorry I can't help you but some one else will be along soon.

gazza1988

anyone help?

I've had another read of the article, what does it mean by minimum spend?

thumshie

Not sure of which article you refer to-no links in original post, and can't find 'minimum spend' on the cashback rewards link at the top of this page (in yellow). However,I'll try to help.

The tiers work depending on how much you intend to spend on your card every year. Most cards offer x% on the first £y, and different rate(higher, or lower) on the next £y. Reward cards normally offer x ponts per £ spent.

Cash back example:

amex:
0.5% on first £3,500, 1% on next £6,500, 1.5% on everything else.
morgan(not taking intro period into account):
1% on first £2,000, 0.5% on everything after that.

So:
if you spend £1000 on your card in a year:
amex cashback:£5
morgan : £10
if you spend £5000 on your card in a year:
amex cashback:£32.5
morgan : £35
if you spend £7000 on your card in a year:
amex cashback:£52.5
morgan : £45

Work out roughly, what you're likely to spend per year on card and see which one offers most cashback. Remember cashback cards should be paid off in full every month, or the interest will easily be more than your cashback.

gazza1988

right,
thank you for the help, i applied for the amazon credit card (with the free £25 voucher) but i was rejected,

i only earn £9,000 p.a. and the cashback on purchases wouldn't be worth it

id say ive spent £250 this Christmas. On the morgan stanley card that'd be £2.50, which isnt worth the hassle.

so i want a 0% card just in case i want to make a big payment and cant pay it off immediately.

but do i go wit the m&s 12month 0% or go with natwest's 0% for 9 months deal? (bearing in mind i have been with natwest for 4 years)

thumshie

Read the credit rating article- link in yellow at the top of the page.

Bearing in mind that you've just had a 'search' done by Amazon, as to when to apply for another card - you may want to get copies of your credit report to see what it says. There are a lot of people that say going for your own bank improves the likelihood as they can check how you've managed your current account. However some banks may be far stricter than others.. Unfortunately I've no idea how Natwest are, but IMHO probably the better bet.

Gorgeous_George

The aim has to be to get the best cashback/rewards card that you can but only if you can pay it off. If not, a low interest rate is more important. 0% deals may not be so easy to get hold of with no credit history.

As you say, the cashback on your spend could be low so maybe not worth the hassle. My Tesco card gives 0.5% in vouchers but these can be exchanged for 4 times their face value in deals tokens for use at MFI, Alton Towers and many other places.

It may be worth just taking ANY card to build up some good history. Pay it off by DD each month to avoid forgetting.



GG

gazza1988

thank you for the help. i have decided to get one through natwest and i was accepted immediately, they are sending me a credit card agreement contract for me to sign.

after the 0% for 9 months its a 1.131% interest (per month) or 15% apr (or is it aer?)

Bloke_with_a_simple_life

gazza1988 wrote:

thank you for the help. i have decided to get one through natwest and i was accepted immediately, they are sending me a credit card agreement contract for me to sign.

after the 0% for 9 months its a 1.131% interest (per month) or 15% apr (or is it aer?)

Advice - Just make sure you understand what the 0% promo applies to (is it purchases? is it BTs? Make sure) - and what ever you do - do not do mis Balance Transfers ad Purchases on this card - it will end in disaster for you, trust me.

My advice (similar to previous nuggets above) - make sure you only purchase on the card what you can afford to repay in full at the end of month. Set-up a full direct debit as a good disciplining and interest minimising tool!

Good luck

gazza1988

i received my credit agreement to sign, i signed it sent it off and one week later i have received another one? they are exactly the same (i have a copy of the one i signed last week.)

should i wait until the day my card should arrive (it said 7 days after they received my credit agreement (i have around 2 days left, by my calculations)

or

should i sign the new document (even though its the same as the earlier one i signed) and send it off again?