A Credit Card That's Interest Free Forever!

katie4

Ok so I have had an email from clear score about this new card from 118 118 money it is interest fee forever but there is a monthly fee of £8 to have the card Just wondering what people's thoughts are on this?




The new 118 118 Money credit card exchanges all of these fees for one simple flat monthly fee, taking the surprise out of your monthly bill and allowing you to build better habits without the costly penalties.

Is a flat-fee credit card right for you?

Instead of paying interest and fees on the money you borrow, a flat-fee card means you pay a known amount each month regardless of your behaviour.

Monthly fees range from £8-£17 per month depending on your credit limit. An £8 fee for a £250 limit is equivalent to 34.5% APR.

If you have a lower credit score and find yourself regularly incurring fees, a flat-fee card could save you money while you improve your credit history.

If you're able to manage your credit card well and rarely miss payments or incur fees, it may be cheaper to use a standard credit card with a lower APR.

Representative example: With an assumed credit limit of £1,200, you'll pay 0% interest pa (fixed) and a monthly subscription fee of £17. Total amount payable: £1,404. Representative 34.5% APR. It seems monthly fee is dependant on limit so higher limit = higher fee

The 118 118 Money Credit Card

0% interest with one monthly subscription fee starting at £8 and no additional fees
Credit limit starting at £250
No interest, no cash withdrawal charges, no hidden fees
Available to lower credit scores

See if you're pre-approved

[Deleted User]

It's a very poor deal.

Even with a poor history, I would be surprised if this is the best that anyone could get.

Vanquis or aqua, clearing in full each month would be a far better choice.

stevenhp1987

£8pm... Given this card will most likely offer low limits, that's equivalent to a high APR.

I can't think of any reason to have this card. Just get a regular card and pay it off in full every month.

D_M_E

Nothing new - it's been on the forum about 3 months or so ago - can't find the thread I'm on the phone.

Don't think it's a good idea, they are using monthly fee instead of the horrendous interest rates they charge.

eskbanker

D_M_E wrote: »

Nothing new - it's been on the forum about 3 months or so ago - can't find the thread I'm on the phone.

Previous (similarly uncomplimentary) threads include:

https://forums.moneysavingexpert.com/discussion/5832901
https://forums.moneysavingexpert.com/discussion/5844505

JimmyTheWig

katie4 wrote: »

An £8 fee for a £250 limit is equivalent to 34.5% APR.

This looks slightly misleading to me.

That's the APR if your balance is your limit.
When making purchases it would be unlikely that you manage to get your balance to be your credit limit exactly.
On the basis that you'd expect to reduce your balance over time then the APR will be much higher than that.
Even if you're not reducing your balance then you'll be making repayments and then spending on the card to bring your balance up again. So for that period of time your balance will be below your limit.

dealer_wins

Anything associated with those 6 numbers shouldnt be touched with a 20ft barge-pole IMHO.

agrinnall

All of my cards are interest free forever because I pay off the full balance every month, and they don't cost me anything (except the Santander 123, where I keep ahead of the fee with cashback).

Dandytf

Deleted_User wrote: »

It's a very poor deal.

Even with a poor history, I would be surprised if this is the best that anyone could get.

Vanquis or aqua, clearing in full each month would be a far better choice.

Honestly , I got this e-mail today and deleted it ,I was in office missed to 0%part.
Maybe I'll re search and re consider

[Deleted User]

It’s not worth it at all

Dandytf

!!! wrote: »

It’s not worth it at all

Couldn't get back soft search anyway.