Credit card help! Never owned one, thinking of egg.

boxrick

Basically im planning on getting a credit card to use for purchases for cashback offers, added protection online and purchases, establishing a good credit rating and £35 quidco cashback.

However i dont have a clue where to start, i will be paying off my card in full every month and as soon as i start getting charged for paying on it, i will no longer use it and cancel my account.

So i have some questions:-

1) Is it sensible to get a credit card for my needs ( cashback offers, added protection buying online, establishing a good credit rating ) considering id pay it off in full each month and on time.

2) If i didnt use my card at all in a certain month would i be charged for not using it?

3) Is there ANY charges for using a credit card on purchases if they are payed for instantly considering id be using an egg card ( http://new.egg.com/visitor/0,,3_84106--View_1763,00.html ) and id be cutting it up once the introductory whatever offer is over.

4) Are there any minimum lengths of time i need to use the card for to not be penalised for canceling or can i just cancel at any time if my account is payed for?

5) Can i set up a direct debit easily to pay of my bills each month incase i forget, etc.

6) Any further advice, input or anything is greatly appreciated!

CLAPTON

1. If you are well disciplined and always pay the total amount off each month then it can be both convenient and has the benefits you mentioned.

2. in general, you are not charged anything if you dont use the card as long as you get a free card (the majority)

3. there are no charges for purchases by the CC companies if you pay in full each month.
However be aware that withdrawing cash withdrawal at ATMs is always charged for and there are some transactions that count as cash i.e. gambling website, and drawing foreign currency.
Also be aware that some retailers charge more for use of CC especially travel companies/airlines etc

I dont see why you want to 'cut' it up after any introductory period is over, the benefits you list are in general ongoing and are not limited to the introductory period which tend to be 0% for a period or occasionally of extra cashback.

4. you can cancel the card at any time as long as the balance in zero.

5. you can set up a DD to pay off the full balance easily and is recommended.

6. Read the T&Cs and understand how they work.
If you haven't had a card before you may have trouble getting a good one but as you are paying the full amount each month even the poor ones with high interest rates are OK for you to help establish a good credit history.

The EggMoney card (NOT the egg card) offers 1% cashback on all purchases and is worth trying for although you may get a low credit limit initially. Or try you own bank for a card to get started.

sicker

Also with Egg Money you can put it into a positive balance which pays 4% interest and you can also draw out up to £500 a day with no charge (as long as the balance stays positive.) I use mine for all I possibly can.

John