First Time Credit Card User......

Bella198421

Any tips I want to be sensible and not get into any debt at all, and maybe even just keep the card for absolute emergencies.It has a £500 limit, Any tips on not abusing the card?

dmg24

I think you have answered your own question - do not use it unless you really have to! x

---lee---

Bella198421 wrote: »

Any tips on not abusing the card?

In order of preference:

1. Destroy it and close the account - that way you can't ever use it.

2. Ask someone you can trust to keep it for you so that your not tempted to use it (parents?).

3. Ask the card provider to setup a direct debit that repays the card in full each month. Then you can't forget to pay it.

4. I only use cards that reward me for spending on them (incentives like cashback). The money I spend on CC's I would spend on a debit card in any case. I repay them all in full each month. Aim to make the cards make money for you rather than out of you.

Bella198421

On my credit agreement it says about interest rates 0.0% on purchases and all other amounts -15 months from account open date, so does this mean if I use it to buy things/pay for stuff that, that's all I'll be paying back over 15months, say If i pay £100 for something no interest will be added onto that if it's paid off in full or at least part within 15 months.

taless

Yes, that's right (do read the small print carefully though in case of any minor details you have to be aware of).

This interest free period of 15 months is a good thing as your money will still be in your account earning interest, but definitely requires discipline - i.e. ensuring that for anything that you spend on your credit card, you match up a similar amount in a savings account - so that when the promotional 15 months end, you could settle all the purchases you have made with the credit card. (but with £500 credit limit you may be only earning about £25 of interest this way - decide for yourself if it is worth your time thinking about it!)

Do not borrow with you credit card as it will be terribly expensive! Hope this helps

dmg24

Many cards will not include cash advances in the 0% rate, so you will pay a lot more for these.

Also, remember that if you only pay the minimum repayment for the 15 months, you will still have a debt at the end of the period, and this will have a much higher interest rate.

If you put a balance transfer onto the card, you are likely to pay a transaction fee, that will be added to the debt.

I would go with the advice on your other post. Only use your card as an absolute last resort! x