Short Term Credit Card Use

Sophie999

I am really useless at working out what credit cards will cost and to be honest they scare me so I never use them.

I do have a credit card - its a Lloyds Avios and it says that my current standard rate is 15.94% and that I have to pay 2% of the balance every month.

I want to borrow £2000 for a six week period after which I will pay it off in full.

How do I work out how much this will cost me overall? Many thanks for any help anyone can offer me. I am struggling to work it all out!

bigadaj

Is this a purchase or a money transfer, if it's a purchase and you time it right then you could get away with paying nothing, as if you purchase just after your statement date then you don't have to pay anything until the payment date, it's normally quoted as up to 56 days.

Your interest rate works out at about 1.2% per month, so on £2k for six weeks this would be around £36 in interest, in oractical purposes it would be somewhere between the two examples I've quoted.

If you carry it across the statement date then the minimum payment would be £40 and you need to ensure that this is paid by the due date, even if you are all paying it off a coup,e of weeks later, to avoid fees and damage to your credit file.

eskbanker

Similar answers already given on the duplicate post! https://forums.moneysavingexpert.com/discussion/5454005

jonesMUFCforever

OP it shows that you have not used your Lloyds card for a while - the minimum repayments now are 1% + interest and charges.