credit card - never had one but I need it now

kokolino23

Hello,
I've never had a credit card and I'm hoping the scoring won't be a problem to get one now.
Anyway, with a house purchase in sight, I need to apply for a 0% card so I can pay for some goods.
I don't know exactly how the above works. If I spend 3-4k (I don't know exactly the figure), then I have 12-23 months to pay it back? Do I have to setup a direct debit and pay x amount of money monthly until I clear the balance?
When I'll be charged APR if I don't pay the debt? At the end of the term?
Let's say, if I spend 4k on that card and then pay it off in 1yr, will I still be charged interest on it?
If I pay the debt in time, can I cancel the card?
Ultimate question? What if I don't spend anything on it?
Many thanks in advance.

grumbler

kokolino23 wrote: »

If I spend 3-4k (I don't know exactly the figure), then I have 12-23 months to pay it back?

Yes, if 0% is on spending.
I think it can be less than 12 months for some cards or some customers.

Do I have to setup a direct debit

Preferably, but not necessarily.

and pay x amount of money monthly until I clear the balance?

At least minimum payment that typically is 1% of the current balance.

When I'll be charged APR if I don't pay the debt? At the end of the term?

Starting from the day when 0% term ends.

Let's say, if I spend 4k on that card and then pay it off in 1yr, will I still be charged interest on it?

No, if 0% term is at least one year and you don't miss any monthly payments or pay late.

If I pay the debt in time, can I cancel the card?

Yes.

Ultimate question? What if I don't spend anything on it?

Nothing

Philis_Burrell

Just go to the bank where you have a savings or payroll account.

grumbler

Philis_Burrell wrote: »

Just go to the bank where you have a savings or payroll account.

And what if "the bank" doesn't offer 0% cards?

Stop wasting your time.

Voyager2002

kokolino23 wrote: »

Hello,
I've never had a credit card and I'm hoping the scoring won't be a problem to get one now.
Anyway, with a house purchase in sight, I need to apply for a 0% card so I can pay for some goods.
I don't know exactly how the above works. If I spend 3-4k (I don't know exactly the figure), then I have 12-23 months to pay it back? Do I have to setup a direct debit and pay x amount of money monthly until I clear the balance?
When I'll be charged APR if I don't pay the debt? At the end of the term?
Let's say, if I spend 4k on that card and then pay it off in 1yr, will I still be charged interest on it?
If I pay the debt in time, can I cancel the card?
Ultimate question? What if I don't spend anything on it?
Many thanks in advance.

It is quite easy to find most household goods second-hand, at very affordable prices. The Salvation Army shops are particularly good for second-hand furniture.

At a time when you have just taken on a large financial commitment (mortgage) lenders may be reluctant to offer you further credit, so your plan may not be possible. And in any case, when you are adjusting to living somewhere new and paying the mortgage, any additional financial commitment could tip you over the edge and lead to disaster. So I suggest that you look at ways to furnish your house as cheaply as possible, without additional borrowing.

In any case, it is a good idea to take simple steps now to boost your credit-worthiness. Get yourself any credit card (perhaps from the bank you already use); use it only to buy small things like groceries that you would buy anyway; set up a direct debit to pay off the balance in full each month. This will not cost you anything, and will establish a track record showing that you are reliable at paying. That will help with the mortgage application, and also with obtaining interest-free cards in future.

SeduLOUs

If you've never had a credit card, getting a first one with a limit of £3k+ might be a tad ambitious.

First time credit cards more realistically give limits of £200-£1000 unless you can get one from your own bank where you already have a good long relationship to persuade them.

bengal-stripe

grumbler wrote: »

And what if "the bank" doesn't offer 0% cards?
Stop wasting your time.

Talking about wasting time: As the OP has never had a CC, s/he might not get a card with "0% on purchases"; which are probably the cards most difficult to obtain.

grumbler

SeduLOUs wrote: »

First time credit cards more realistically give limits of £200-£1000 unless you can get one from your own bank where you already have a good long relationship to persuade them.

It depends on the income and the history.

My first card (Barclaycard) had ~£3.5K limit, although it wasn't 0% and I already had mortgage that time.

dekoder

Remember not to apply for new credit between your mortgage application and completion date.