santander 123 credit card and simple stoozing

gele

Hello I'm hoping to do a bit of very simple stoozing [not done it before and so am wanting to keep it as simple as possible] and am just looking for advise/confirmation that I understand it correctly.
Im looking to get a 123 credit card (I have the current account]. It is 0% for 18months and states card fee refunded for the first year.
I am thinking I should initially apply for the card and then set up a direct debit for the minimum repayments from my current account.
But if the fee is free for a year- even though the card is 0% for 18 months -wouldn't I have to just treat it as a 1 year card to avoid the fee in the 2nd year and therefore pay off the card balance after 1 year.
Thanks in advance for clarification

crazymoose82

I wouldn't worry about paying off the balance after a year because you can earn money when you spend with this card. This is from the Santander website:

You can earn:

• 1% cashback at all major supermarkets
• 2% cashback at all major department stores
• 3% cashback at all major petrol stations, and on National Rail and Transport for London travel
  (on combined spend of up to £300 a month)
• Summer bonus cashback offer
  Earn 1% bonus cashback with all major airlines, hotels and travel agents between 1 June and 31 August 2014. Read the full Summer Offer cashback terms.

As you can see the money you are likely to earn over the space of a year will vastly outweigh the £24 that you have to pay for the card. For instance, if you were to spend £200 per month at the supermarket then you would earn £24 over the year. Add to this spending at department stores and petrol stations and you will easily be into profit.

There is a cashback calculator and more information on this page:

http://www.santander-products.co.uk/credit-cards/public123

gele

Thank you. I hadn't thought about that but I more than get back the monthly fee on my 123 debit card from my direct debit payments so it makes sense. I'll use the calculator as you suggest though.
Thanks again