First credit card

danrv

Hi
I’ve never owned a credit card, only debit but I think I need one now. 
Barclays have removed my arranged overdraft as part of a wide scale account review. My debit card won’t work now if funds are in the negative.
I spoke to Barclays about reinstating the overdraft and they suggested that a credit card, not specifically Barclaycard, would be better.
I may need to cover a few direct debits short term and then can pay them off when I get some funds in later.
I’m considering Barclaycard as I’m with Barclays, have online banking and there’s 56 days before payment is due.
Just wondering if there’s much difference between the various options.
Any help appreciated 

Ebe_Scrooge

You can't set up a direct debit from a credit card.  There is CPA (continuous payment authority) which is kind of similar but works slightly differently, and not everywhere will accept them.

That aside, if you're already living beyond your means (as evidenced by the fact that you rely on your overdraft) then getting a credit card is a bad idea.  It's a very expensive way of borrowing, and taking one out with the intention from the outset of carrying a balance is financial madness.

Also, regular use of an overdraft is a black mark on your credit history, meaning you'll be likely to struggle to get accepted for a main-stream card.  At best you'll be limited to a credit-builder card, which have horrendously high rates of interest.

The best advice I can offer is to forget about a credit card and instead adjust your outgoings to fit within your budget.  The Debt-Free Wannabe board is a great place to start.

(Oh, and the bit about "56 days before payment is due" - you've misunderstood.  You can get up to 56 days of credit, depending on the billing cycle and the purchase date.  That's standard across any credit card.  But unless you're absolutely going to be repaying in full every month then it's a very expensive option.  Really, forget about a credit card and rethink your budget instead - your future self will thank you in bucket-loads).

[Deleted User]

Up to 56 days works on the basis of when the purchase was and when the statement date is

If your statement date was 30th June and you spent on 1st July and the DD went out 25th August then you would get 56 days between payments. However if you spent on 29th July, your spend would be on the 30th July statement and you would only get 26 days as an example 

Sncjw

I would get yourself on debt free wannabe page if your relying on overdraft and you mention about card going into negative funds. 

danrv

Ebe_Scrooge said:

That aside, if you're already living beyond your means (as evidenced by the fact that you rely on your overdraft) then getting a credit card is a bad idea. 

Meant to say that I haven’t used my overdraft in over five years. Credit has always been good it’s just earnings over the summer have dropped and cost of living has skyrocketed.
Earnings will increase again over the next few months but may need short term borrowing.
I used to be able to go over into negative funds but then would build them back up again.
Now my card is useless even if I go £1.00 over 0.

Ebe_Scrooge

danrv said:

Ebe_Scrooge said:

That aside, if you're already living beyond your means (as evidenced by the fact that you rely on your overdraft) then getting a credit card is a bad idea. 

Meant to say that I haven’t used my overdraft in over five years. Credit has always been good it’s just earnings over the summer have dropped and cost of living has skyrocketed.
Earnings will increase again over the next few months but may need short term borrowing.
I used to be able to go over into negative funds but then would build them back up again.
Now my card is useless even if I go £1.00 over 0.

OK, in that case a credit card may be an option.  The advice is ALWAYS to repay the balance in full every month - firstly it means no interest to pay, secondly it builds up a good credit history.

This is not advice I would normally dish out - but if you have a genuine need to borrow a small amount, and if you genuinely will be able to repay it all in just a few months, then it's kind of OK to carry a balance from one month to the next (you must pay at least the minimum amount every month though).  It's acceptable for very short-term borrowing of small amounts - not ideal, but better than taking out a loan.  But you do need to be very disciplined - only use this avenue for absolutely essential spending, keep the amounts low, and make sure you do repay it all as soon as possible - a few months maximum.

MrFrugalFever

Ebe_Scrooge said:

danrv said:

Ebe_Scrooge said:

That aside, if you're already living beyond your means (as evidenced by the fact that you rely on your overdraft) then getting a credit card is a bad idea. 

Meant to say that I haven’t used my overdraft in over five years. Credit has always been good it’s just earnings over the summer have dropped and cost of living has skyrocketed.
Earnings will increase again over the next few months but may need short term borrowing.
I used to be able to go over into negative funds but then would build them back up again.
Now my card is useless even if I go £1.00 over 0.

OK, in that case a credit card may be an option.  The advice is ALWAYS to repay the balance in full every month - firstly it means no interest to pay, secondly it builds up a good credit history.

This is not advice I would normally dish out - but if you have a genuine need to borrow a small amount, and if you genuinely will be able to repay it all in just a few months, then it's kind of OK to carry a balance from one month to the next (you must pay at least the minimum amount every month though).  It's acceptable for very short-term borrowing of small amounts - not ideal, but better than taking out a loan.  But you do need to be very disciplined - only use this avenue for absolutely essential spending, keep the amounts low, and make sure you do repay it all as soon as possible - a few months maximum.

Adding to this, if absolutely essential, look for a 0% on purchases card, which barclaycard do offer (up to 24 months) with their own eligibility checker. If you do end up carrying a balance at least it will be without interest charges.