Question about credit cards

sarahmcmast3r

Hi,

I'm 21 y/o and I'm looking to get my first credit card. I'll use it for small payments each month and pay off in full at the end of each month.

I don't know much about how credit cards work, do you get charged the interest as soon as you buy or only at the end of the month? Am I better with a 0% for 6 months one?

Thanks

Dobbibill

With most credit cards you will get an interest free period from the date of the transactions until the payment due date.

If you are planning on paying in full every statement, then can I suggest a DD to take the payment, there will be no confusion about how much and when it is due.

By the time the due date arrives, you will have spent for approx a further 3 weeks on your credit card, which is due on the following statement so stay well away from the limit. Use less than half of the credit limit until you understand the dates the statement and payments are due.

Anthorn

sarahmcmast3r wrote: »

Hi,

I'm 21 y/o and I'm looking to get my first credit card. I'll use it for small payments each month and pay off in full at the end of each month.

I don't know much about how credit cards work, do you get charged the interest as soon as you buy or only at the end of the month? Am I better with a 0% for 6 months one?

Thanks

Interest is calculated from when your account is debited but you don't pay that interest if you pay off the whole balance by the due date.

0% what for 6 months? If you mean 0% interest on purchases for 6 months it can be a good deal but it usually doesn't recur after the 0% period ends. But there is still a minimum payment. Depending on the value of your purchases you can get a better deal with the Argos Card buy now pay later but in that case you can only buy from Argos.

Linda32

sarahmcmast3r wrote: »

\ Am I better with a 0% for 6 months one?

Thanks

No, forget anything along those lines. Because you intend to pay the balance off, that is irrelevant.

Also, try not to think of credit cards as being monthly and "the end of the month" because they aren't.

I've just had a quick look on my Barclaycard Statement which states the following:-
Statement Date - 8th November
They will collect the DD on 5th December

On the statement you will see a term "estimated interest" mine is £3.78 that means if the DD doesn't go through because I haven't got the funds in the bank then I will be charged that interest.

Because that won't be the case (same with you) then interest rates isn't relevant.

Just had a quick look on the previous statement to give you an idea of months.
Statement Date - 10th October
Payment Date - 4th November

boliston

I find BACS far better than DD for paying credit cards - at least this means YOU get to decide how much is paid and when. One of my cards has a low credit limit so if I relied on DD it would make it hard to "top up" the card when I got near the limit.

TheShape

boliston wrote: »

I find BACS far better than DD for paying credit cards - at least this means YOU get to decide how much is paid and when. One of my cards has a low credit limit so if I relied on DD it would make it hard to "top up" the card when I got near the limit.

The DD is to ensure that the full balance is paid on the payment date and is the best way to ensure this. A DD wouldn't preclude additional payment being made (by Faster Payment) if the need should arise.

Superscrooge

There is useful info on the Barclaycard site (link below) explaining in simple terms how credit cards work

https://www.barclaycard.co.uk/personal/credit-cards/new-to-credit?ref=home-mainnav