First Credit card - help please

Littlebirdie

Hey,

So I've watched my spending for over a year and I think it is safe to say that I have good spending habits meaning I can trust myself with a credit card!

I also want to improve my credit rating which is quite good.

So I have a yearly membership for my job and if you pay monthly they are now charging you a 0.25p charge.

So yeah its only 25p but I thought it was a good time to put a small fee (300) on a credit card.

My questions:
1) If I apply for a credit card how long will it take to get to me? Its just I need to make the payment on 1st May
2) The money comes out of my bank account - would I need to change the card details they have or can I put the money in my account from the credit card?
3) I have emailed the company to ask if they carge for using a credit card.

Ive got an 80% chance of getting a credit card accoring to the Money saving expert calculator which I think means I'll get it!

I think I have covered everything. Sorry if these seem like such simple questions - it's a little intimidating.

grumbler

Littlebirdie wrote: »

So I have a yearly membership for my job and if you pay monthly they are now charging you a 0.25p charge.

So yeah its only 25p but I thought it was a good time to put a small fee (300) on a credit card.

I am not sure I understand this.
What's 0.25p? £0.25?
And if you mean paying £300 by a CC and then paying it back over a year, this will cost you unless it's a card with an introductory 0% offer on purchases.

My questions:
1) If I apply for a credit card how long will it take to get to me? Its just I need to make the payment on 1st May

Depends on the provider. For the majority one month is more than enough.

2) The money comes out of my bank account - would I need to change the card details they have or can I put the money in my account from the credit card?

Yes - if it's a card payment (Continuous Payment Authority), not a DD. And was your intention not to change the monthly payment to yearly?

Littlebirdie

grumbler wrote: »

I am not sure I understand this.
What's 0.25p? £0.25?
And if you mean paying £300 by a CC and then paying it back over a year, this will cost you unless it's a card with an introductory 0% offer on purchases.

sorry the £ sign isnt working on my laptop but I have copied and pasted it. Yup I'm going to apply for a year 0% credit card.

Depends on the provider. For the majority one month is more than enough.

Great

Yes - if it's a card payment (Continuous Payment Authority), not a DD. And was your intention not to change the monthly payment to yearly?

they give the option of a one off payment so I am going for that. And my intention is to set up a direct debit to the credit card and have it payed off in a year. So I'm saving £0.25 a month which is really nothing but it is a good insentive to get my first credit card and improve my credit rating

Thanks for replying!

grumbler

Littlebirdie wrote: »

they give the option of a one off payment so I am going for that. And my intention is to set up a direct debit to the credit card and have it payed off in a year.

As I said, DDs are for current accounts only. For a credit car it can be a CPA if they offer this option.

So I'm saving £0.25 a month which is really nothing but it is a good insentive to get my first credit card and improve my credit rating

Again, unless the card has a 0% introductory offer or you pay the balance in full after the payment, you save on the fee, but pay the interest that is likely to be higher.

Littlebirdie

I'm a little muddled with all the replys.

So I'll explain again:

I'm thinking of paying a one of payment of £288 to a company with a 0% credit card. Ive een told by the Money Saving Guide Credit Card calculator that I have an 80% chance of getting one.

I'll then set up a direct debit to my credit card of £24 a month and pay it off in a year.

That should make more sense

SuperHan

You'll need to check if they charge for you to pay by credit card - places that charge for monthly payments often have a CC surcharge too.


Other than that, your plan should work.


It can take a few weeks for the card to come through (but some do only take a few working days), so get applying now.


Also, remember not to spend anything else on the card if you're using it for a 0% offer, as you can end up paying more in interest depending on the T&Cs. If you're not confident, it's safer not to do additional spending.

Littlebirdie

When a crdit cad says this:

Min repay : Greater of 2% of balance plus interest or £25

What does it mean?

For example does that mean I'll have to pay more than £24?

Nebulous2

2% of your 288 equals £5.76 plus interest of 0 still gives £5.76

£25 is greater than £5.76 so you pay a minimum of £25 per month. That is more than your £24 - but not by much!

Incidentally are you sure it is £25? A lot of credit cards seem to have £5 minimums but I cannot recall seeing a £25 one. There would usually be a third option as well of the full balance.

Littlebirdie

Thanks Nebulous2!

grumbler

Littlebirdie wrote: »

I'm thinking of paying a one of payment of £288 to a company with a 0% credit card. Ive een told by the Money Saving Guide Credit Card calculator that I have an 80% chance of getting one.

I have already said this, but want to reiterate: you need a card with 0% on purchases, not just "0%" credit card".

pcman1985

Nationwide Select Credit Card has a £25 or 1% + interest and charges minimum payment.

So there are some.