Credit card

msa969

Hi, my bank TSB is offering me a credit card with cashback.
I never bother with credit card so never owned one as i buy most things with a debit card. If i take out the credit card, I assume at the end of the month i have to pay tsb interest because i brought items on credit using their credit card? can this be beneficial?
Sorry never used a credit card. :beer:

MarkFromCornwall

If you pay back the full amount you've borrowed each month you won't pay any interest.

gt94sss2

msa969 wrote: »

Hi, my bank TSB is offering me a credit card with cashback.
I never bother with credit card so never owned one as i buy most things with a debit card. If i take out the credit card, I assume at the end of the month i have to pay tsb interest because i brought items on credit using their credit card? can this be beneficial?
Sorry never used a credit card. :beer:

There is no interest to pay on the credit card as long as you pay off the full amount due each month. The best way to do this is to set up a direct debit to pay the balance in full each month.

TheBanker

Hi

Normally, if you pay the bill off in full before the due date, you won't be charged any interest. Exceptions are if you withdraw cash or make certain types of transaction such as gambling.

So the benefit is you get an interest free period. You can also buy things when you don't have funds in your bank account, so long as you know you'll be able to pay the bill off when it's due (or accept that you will have to pay some interest).

You may also get other benefits such as points or cashback, and if you are paying for items costing over £100 you get extra consumer protection.

Look here: https://www.moneysavingexpert.com/credit-cards/?_ga=2.126683597.1340671104.1514362599-2049704857.1477133946

YorkshireBoy

MarkFromCornwall wrote: »

If you pay back the full amount you've borrowed each month you won't pay any interest.

gt94sss2 wrote:

There is no interest to pay on the credit card as long as you pay off the full amount due each month.

That will depend on which specific TSB card the OP has been offered. If it's the Advance card there is no interest free period* on any transactions, including purchases.


* After the first 3 months.

ValiantSon

YorkshireBoy wrote: »

That will depend on which specific TSB card the OP has been offered. If it's the Advance card there is no interest free period* on any transactions, including purchases.


* After the first 3 months.

That's possibly the worst credit card deal I have ever seen! Who in their right mind would sign up to that?

Kim_13

YorkshireBoy wrote: »

That will depend on which specific TSB card the OP has been offered. If it's the Advance card there is no interest free period* on any transactions, including purchases.


* After the first 3 months.

It may well be, as the TSB Advance page states that it gives 1% cashback on the first £500 of eligible spend each month if you have a Classic Plus Account.

OP, if this is the card, here is the document confirming no interest free period: https://www.tsb.co.uk/credit-cards/purchases/advance-credit-card/summ_box_advance_all.pdf

YorkshireBoy

ValiantSon wrote: »

That's possibly the worst credit card deal I have ever seen! Who in their right mind would sign up to that?

Me.

But mine was the old LloydsTSB one years ago, when it had a fee-free 0% BT offer.

For me it borders on entrapment, and relies on the applicant not reading the summary box/T&Cs and making an assumption that it works just like all the others.

There was another provider years ago who had a similar product, but I can't remember who it was. Maybe a Co-op product? Co-op 'Clear' maybe?

eskbanker

YorkshireBoy wrote: »

There was another provider years ago who had a similar product, but I can't remember who it was. Maybe a Co-op product? Co-op 'Clear' maybe?

As in the terms aren't Clear to the unwary but you need to Clear the balance as soon as it hits your statement?

ValiantSon

YorkshireBoy wrote: »

Me.

But mine was the old LloydsTSB one years ago, when it had a fee-free 0% BT offer.

In those particular circumstances then fair enough.

YorkshireBoy wrote: »

For me it borders on entrapment, and relies on the applicant not reading the summary box/T&Cs and making an assumption that it works just like all the others.

Agreed. It is extremely sharp practice. Most people would reasonably assume that a credit card automatically comes with an interest free period as standard, given that is how almost every other credit card works. TSB should be made to place a clear statement on the sign up page, but they won't be because it is in the T&Cs.

ValiantSon

eskbanker wrote: »

As in the terms aren't Clear to the unwary but you need to Clear the balance as soon as it hits your statement?

An unlikely occurrence as interest is charged from the day payments are taken, so almost impossible, and you might as well have paid using a debit card.