Credit card newbie

fromtheshires

Hi guys
I have been looking at the 123 credit card and work out that I can cream a tidy £40 a year after the £24 a year charge (from year 2 as year 1 will be free for me as a 123 user). plus the TCB I can get for opening the account

Having never had a credit card before as I hate debt, I'm unsure on how things work (will only use this for cash back eligible purchases so I'm getting at least something back) credit card wise.
I know I would need to set up a DD to cover the minimum a month, but can I set one up to pay it off in full each month at the due date or do I need to pay off the additional manually?

I just don't want to play with credit cards and make an expensive mistake and get stung with interest....

BlondBoy

You can easily set up a direct debit to repay each statement balance in full. Just choose 'Pay off entire balance' in the direct debit set-up screen in Santander online banking.

Enjoy the cashback!

molerat

Alternatively pay the minimum and keep the balance safely in the 123 earning interest.

fromtheshires

Good shout Molerat. I didn't even think of doing that. 23 months at 0% will be even better earning interest in my account than in Santander's back pocket.