Hear Ye!! Hear Ye!!

nursiejennie

Hail!! All you credit card wizards!!

Ok so i'm a bit confussed........

I've got quite a low credit rating, (don't actually know why), and thought I'd get my self a credit card just to boost it up a bit.

I've got myself a vanquis card, with a whopping 34.080% interest!!! :eek: But......... I have only got a £250 credit limit....

Now, I was reading the little book that came with it, and it says that I can set up a direct debit to pay off the minimum repayment, which after reading Martin's guide about it I don't want to do.

So, say if I only spend £30 in the month, can I set up a direct debit that will let me pay off that total £30 for that month, without charging me interest??

If I pay off the total I spend each month, will I be charged any interest on it, or do I only get charged interest for the outstanding amount in that month??

I hope this makes sense because i'm getting brain ache just trying to type the thing!!

Hope to hear from you soon!!

CLAPTON

first of all get copy of your credit records to see what they say.

if you pay the full amount back each month on time then you will pay no interest

if you only make a partial payment then you pay quite a lot of interest because you then pay interest from the day you spent the money to the day you paid it off.

set up a DD to pay the FULL amount each month and not just the minimum.. you may need to phone them to do this.

make sure there is no problem about the first payment as it takes some time to set up a DD

nursiejennie

Thankyou!!

So aslong as I pay the full amount off each month, then I'll be fine, and won't be charged a penny.

With the credit limit, (£250), is that per annum?

CLAPTON

the credit limit is the maximum you can have outstanding at any one time ..so if you spend say 200 this month but pay it off in full then next month you can use up to 250 ...and if you say only paid back 100 leaving 150 then you could still spend up to 250 (although there will be interest added so it wouldn't be the full 150)