Credit apr

Dekiany

Hello guys

I'm thinking about applying for the Halifax low APR credit card as I want a long term card so I can build up a high credit limit. but it states "t least 51% of customers will get a representative rate of 6.4% APR (variable). Others will get a rate of 10.9% APR (variable), or 14.9% APR (variable)."

I'd only want the card if I got accepted for 6.4%, if not Id just go for the 24 months 0% Halifax card.

But that brings my question will I know how much the APR is before I accept or is there no going back once I find out the APR on the card and will it leave a mark if I decline the offer if that is possible.

Thanks

Dobbibill

If you want to build up a high credit limit in the future then you should be paying your CC bill in full each and every month. If you do this then the APR will have no bearing on your CC bill as you won't pay interest.

If you are going to apply and max it out and make minimum payments, you can say goodbye to any plans to increase the limit in the future.

[Deleted User]

You'll find out once accepted. You could choose not to take up the offer, but will have a search on file either way.

YorkshireBoy

Dekiany wrote: »

I'm thinking about applying for the Halifax low APR credit card as I want a long term card so I can build up a high credit limit.

Why can't you build up a "high credit limit" on a 0% card?

Why don't you think 24 months is a "long term"?

Why do you want to pay/risk paying interest when you don't have to?...no matter how small the rate.

Dekiany

I was hoping to get about £1000 - £2000 so I can put it towards a better car and pay whatever limit I have within 24 months. Then in the future use it again for something else but then I'd have to apply for another card with 0%, because 19% APR seemed a bit steep after the offer. I thought it would be best to get the low APR card so I can just stick to one card in the future instead of having to apply every two years

Let me know if I have the wrong idea haha

Superscrooge

Dekiany wrote: »

Let me know if I have the wrong idea haha

You have the wrong idea!

Why pay interest if you don't have to?

Ebe_Scrooge

The way to build up a good credit rating is to use a card every month for everyday spending, and pay it off in full every month when the statement comes in.

If you want to use a credit card to pay for a car - the only advantage is if you can :

a) Get a 0% card
b) Be sure you can pay it off in full before the promotional rate ends
and c) Work out if what you save in interest you would otherwise pay, is offset by the dealer passing on the CC fee to you ( typically 2 - 3 % ).

Credit card companies always advertise their "headline" rate - but by law they must offer that to 51% of applicants. You won't know what rate you'll be offered until you apply.

From what you've described, I would advise against getting a card purely to buy a car. Instead, get a card - any card - and use it for day-to-day spending. Pay in full, without exception, every month. You'll pay no interest ( so the APR is irrelevant ) and build a good credit history.

If you're looking to buy a car using a CC, then that generally means you can't afford it ( with some exceptions - many years ago, I had a CC that had great cashback offers, and it actually worked out better for me to take the 3% hit that the dealer charged me for using a CC. But that was about 15 years ago ).

Dekiany

I have a Barclaycard which I pay in full, the APR is high so I never leave a balance.

The plan was to pay everyday bills with the CC that do not charge extra until I reached the limit and I'd take the monies out of my salary from those bills so I'm not paying directly with a CC to avoid costs.

Also if I keep applying for a new 0% credit card every two years would I not run out of CC that I can apply for in 10 years time. I'd also get a search every two years