Fees on credit cards

kimmi_1983

So I've reached the age of 30 with no credit card, I know I know I should have a little stack going on, but they do scare me.

After looking at mortgages I have promised my other half I'd improve my credit rating. So would someone please explain the fees to me. Why do you pay a fee? Is it if you transfer a debt or is it when you spend on it? Or just for having it?

Tixy

Mostly with credit cards you pay fees to transfer a balance from another card, or if you use the card to withdraw cash, or if you use the card to buy foreign currency.

Most cards do not have an annual fee just for having the card.

If you want to use the card to build up a credit history best thing is to use it for a couple of small purchases each month (something you would buy anyway), and then pay it off each month in full after the statement has been generated and before the due date.

That way you should pay no fees and no interest.

As you have never had a card before you might want to try applying to your own bank, or alternatively a subprime (for bad credit history or no credit history) card

bigadaj

Get a card, and just use it for your regular shopping, petrol etc. set up a direct debit for the full balance. Check your statements every month to confirm there are no errors, and make sure you have enough in your current account for the direct debit. You'll improve your credit record, and benefit from interest free credit fora onto for your spending, just remember that it will come out at some point and don't spend it beforehand!

kimmi_1983

Thanks, I was looking at the fluid card, I did their own eligibility check and I can get it. I just don't want to ask the question and look silly. I can't find it on their website what the fee is for. I have opened a few accounts and decided after getting the paperwork it's not for me, but I'm not sure how simple it is with a credit card.

If you have any advice I'd be grateful

YorkshireBoy

kimmi_1983 wrote: »

Thanks, I was looking at the fluid card, I did their own eligibility check and I can get it. I just don't want to ask the question and look silly. I can't find it on their website what the fee is for. I have opened a few accounts and decided after getting the paperwork it's not for me, but I'm not sure how simple it is with a credit card.

If you have any advice I'd be grateful

You'll only pay a fee if you make a cash withdrawal (or conduct a cash type transaction, ie buy foreign currency, place a gambling deposit, etc), make a balance transfer from another card, or use the card overseas.

All the other fees relate to account breaches, ie £12 each for...

Missing a payment
Going over your limit
Having a direct debit returned unpaid

All fees are shown in the T&Cs (which are available on the Fluid website). Most people find these hard to grasp(!), so they summarise them in a neat little summary box...which is also on their website.

In short, if you're getting a card to purchase things (and along the way improve your credit rating) stop worrying about the fees!

kimmi_1983

YorkshireBoy wrote: »

You'll only pay a fee if you make a cash withdrawal (or conduct a cash type transaction, ie buy foreign currency, place a gambling deposit, etc), make a balance transfer from another card, or use the card overseas.

All the other fees relate to account breaches, ie £12 each for...

Missing a payment
Going over your limit
Having a direct debit returned unpaid

All fees are shown in the T&Cs (which are available on the Fluid website). Most people find these hard to grasp(!), so they summarise them in a neat little summary box...which is also on their website.

In short, if you're getting a card to purchase things (and along the way improve your credit rating) stop worrying about the fees!

Thank you very much

Cycrow

some cards do have a monthly/yearly fee, but these would be clearly indicated for the card. (pretty sure fluid doesn't have these fees)

The cards with these types of fees generally have some kind of benefits/rewards attached to them, like cash back/reward cards