Please help on Interest rates

[Deleted User]

All card work to the same broad principles.

If you need to borrow the money, you need to look at a much lower rate card than the one you have. However, your current rate and history of not clearing your balance suggest you may be a little high risk for the better offers.

BoGoF

Small print?......I bet it's not.

You clearly didn't check your statements in any detail or you would have seen the actual interest being listed in your monthly transactions.

Caz3121

IloveElephants wrote: »

Just curious are the other credit cards that give you longer than 1 month to pay in full? or are most of these card companies the same, you have to pay in full each month to avoid interest

you can get cards that have introductory offers such as 0% on purchases for x months where there is no interest charged on those purchases until the end of the offer period or balance transfers with 0% for x months
Unless your interest rate is 0% you will pay interest unless you clear the card in full each month

IloveElephants

I dont mind being charged interest as the banks have to make their money, what im annoyed about is for a figure of say £1,700 and my limit is 2,750 im being charged £40 per month interest when I haven't even reached my credit limit and always payed on time and around £600-800 I pay in each month but still they charge me interest

If I was charges say £20 per month id be fine with it

[Deleted User]

I don't understand why you think you would need to reach your credit limit to be charged interest.

Or would not be charged interest as long as you made partial payments on time.

It's a very simple formula. You're charged interest on the money you borrow, for as long as you borrow it.

The only exception is when you clear in full each month.

If you want to be charged £20 interest, either halve your spending, or halve your interest rate.

IloveElephants

So because I havent paid in full and cleared the balance each month even thoe I could have now ruins my chances of getting the better cards out on the market?

BoGoF

Credit cards - not suitable for everyone.

Willing2Learn

BoGoF wrote: »

Credit cards - not suitable for everyone.

I don't think that is a problem here. IloveElephants just didn't understand how a credit works, and compounded that issue by not checking their statements properly. Now that IloveElephants has had that explained to them, I'm sure everything will go smoothly

[Deleted User]

The last thing you need right now is another card.

Work on getting to grips with this one. Practice spending on it, then paying in full when the statement comes in. Repeat every month.

Once you've got the basics nailed, you can look at some of the more advanced credit options.

IloveElephants

You are correct, I would only log into the app and not view the monthly statements

from now im going to clear the entire balance of £1,800 and not use the card for 1 month, hopefully I wont be charge any more interest then

I will use my savings/debit card for daily expenses like groceries.