Credit Card help! Clueless

0700939W

Hi, I am new to forums in general so apologies if i have done this the wrong way. I currently have no credit score and as i have secured a graduate job I am considering getting a credit card just to buy a few things on a month and pay off the balance in full, instantly. However, when it says 0% for 13 months does this mean that i get charged after the 13 months even though i am paying in full and instantly? ( I am pretty sure it doesn't, but dont want to get caught up in debt for buying a pair of socks!)

Tixy

If you've never had a card before you may sturggle to be accepted for one with a 0% promotional rate.

But if you pay in full on time each month , and don't go over your limit, then you won't be charged interest regardless of what the APR is. Thats providing you don't use your credit card to withdraw money from cash machines, or use it on gambling sites.
If you just buy groceries or petrol (or socks) with it then you'll be fine.

McKneff

Well if you are paying it off monthly you will never pay any charges.

Its if say you bought something for £1300 and you paid them cc £1000 a month for 13 months, you wouldnt pay any charges either.
If you have a balance after 13 months you would pay charges on that balance.

Okay.

redpete

During the 13 month period you won't get charged any interest. You will have to make monthly payments of at least the minimum payment each month but this will all reduce the balance - not go towards any interest.

At the end of the 13 month period you will start to be charged interest on the balance, but this isn't backdated. If you pay off the full balance before the end of the 13 month period then you won't get charged any interest at all.

0700939W

Perfect! Thanks both! I had a feeling I was going to get slated for being stupid! Yeah i am looking to arrange an appointment with my bank, but just wanted to know a bit more about my needs before getting talked into something!:j

HJFrancis

Although it might not be best practice, if you find that, after the 13 months, you haven't been able to pay off all of your credit card debt, you can then get a second 0% balance transfer card with a different company and subsume the debt on that one. This means you get a new 0% rate for the remainder of your credit card debt.

For example:

- You get card A with a 13-month BT at 0% interest. You transfer £1000.
- After 13 months, you've got £380 left and don't want to start incurring interest.
- You get a card B which has a 12-month 0% promotion.
- You then pay off the remaining £380 within the 12 months.

The only things to watch here are the fees that you pay when transferring a balance; basically, do the sums, work out the fees (often something like 2.5%) and make sure it's all worthwhile.

McKneff

If you cant get a 0% card, think about a cash back card.

Its amazing how much yu can earn on these over the year if you are paying it back in full every month.

Coop do one, and if your a member you get points on your coop loyalty card too.

Free money is great