Credit card fee question

HarryGrout

Hi everyone,this is my first post but ive used martins site for allsorts previous so thanks...

i recently got a credit card having not had one before i dont know the ins and outs.i understand if i spend say £100 on it and then pay it off within the month it cost me nothing,but im going on travelling soon and was going to use it for some clothes,but i want to pay it back when i get back in around 3 months. can i just pay the min for 3 months then pay off the £100 bill or will it be a lot higher,like i say im clueless how they work. thanks

LadyV2508

Hi. It would depend on the interest rate - if it is a 0% credit card then you will only have to pay back what you spend on it. If not then whatever balance is on the card will incurr monthly interest until the balance is paid off.

As this is your first credit card i would suggest making sure you are fully aware of the interest rate etc and keep a close eye on your account and your spending on it. Far too many people get into trouble with credit cards becasue they dont know their annual APR or understand "how it works". Be sensible with it and you will be fine!

Vortigern

You can just pay the minimum for a few months, then settle when you return, but there will be some interest to pay. Set up a direct debit to pay the minimum so you don't miss a payment. If you miss a payment, or pay late, you'll have to pay a fee of about £12 and it will make a black mark on your credit record

HarryGrout

so say i spend £500 on the card before i go,i then pay the min amount for 3 months and then i can pay the balance off when i get back and it will still be around the £500 mark.

StuC75

HarryGrout wrote: »

so say i spend £500 on the card before i go,i then pay the min amount for 3 months and then i can pay the balance off when i get back and it will still be around the £500 mark.

It depends if the card has an interest free period for Purchases beyond the standard upto 56days (usually as a deal for say 9/12 months).

If it has then total paid would be 3 months at minimum amount, then the remainder of the £500.

If it doesnt then you would pay minimum amount for 3 months, but would be charged 3 months interest (or until it was paid off).. plus the remaining balance..