Credit card explanation

Dippygoose

I’m thinking of applying for a credit card, but I’ve spent the last 43 years avoiding them and I know nothing about them. Where can I find a good idiot guide by explains everything I will need to know?

lr1277

You could try this site.

Above in the blue bar, there is a link to Cards and Loans. There I found this link:

https://www.moneysavingexpert.com/credit-cards/how-do-credit-cards-work/

Then you could read other articles in the same section.

Dippygoose

lr1277 said:

You could try this site.

Above in the blue bar, there is a link to Cards and Loans. There I found this link:

https://www.moneysavingexpert.com/credit-cards/how-do-credit-cards-work/

Then you could read other articles in the same section.

Thank you, kindly for the help I’ve learned credit cards are definitely not for me.

Rich1976

Credit cards are a useful tool if they are used wisely. We use a credit card for all our day to day spending for the simple reason if fraud was to occur, they wouldn’t be able to take money out of our bank account in the way they would be able to if it happened on a debit card. 

Also for larger purchases we benefit from the protection agreement .

agree they are not for everyone but I keep an eye on what is being spent to ensure it is within budget.

Dippygoose

I was looking at them, hoping they could be used as a sort of interest free loan.

Like a buy now pay later scheme like PayPal credit where you get four months to pay off the debt interest free. 

I need to buy myself a new motorcycle gear, but don’t have the funds upfront but would be able to make monthly payments.

Rich1976

Dippygoose said:

I was looking at them, hoping they could be used as a sort of interest free loan.

Like a buy now pay later scheme like PayPal credit where you get four months to pay off the debt interest free. 

I need to buy myself a new motorcycle gear, but don’t have the funds upfront but would be able to make monthly payments.

Virtually all credit cards will let you buy now and pay later as long as you make at least the minimum payment each month as most do interest free deals for up to 24 or 36 months 

grumbler

Dippygoose said:

I was looking at them, hoping they could be used as a sort of interest free loan.

Like a buy now pay later scheme like PayPal credit where you get four months to pay off the debt interest free. 

I need to buy myself a new motorcycle gear, but don’t have the funds upfront but would be able to make monthly payments.

>> Best 0% credit cards

What  you need is a card offering 0% on purchases

Dippygoose

Rich1976 said:

Dippygoose said:

I was looking at them, hoping they could be used as a sort of interest free loan.

Like a buy now pay later scheme like PayPal credit where you get four months to pay off the debt interest free. 

I need to buy myself a new motorcycle gear, but don’t have the funds upfront but would be able to make monthly payments.

Virtually all credit cards will let you buy now and pay later as long as you make at least the minimum payment each month as most do interest free deals for up to 24 or 36 months 

That’s the type of thing, I’m looking for something I can repair in 4 to 8 months .

so it’s sort of works like PayPal credit where say I buy something for £300. They would still apply a minimum payment for example £20 every month even though it’s interest free payments but it goes straight off the £300 .

Rich1976

Dippygoose said:

Rich1976 said:

Dippygoose said:

I was looking at them, hoping they could be used as a sort of interest free loan.

Like a buy now pay later scheme like PayPal credit where you get four months to pay off the debt interest free. 

I need to buy myself a new motorcycle gear, but don’t have the funds upfront but would be able to make monthly payments.

Virtually all credit cards will let you buy now and pay later as long as you make at least the minimum payment each month as most do interest free deals for up to 24 or 36 months 

That’s the type of thing, I’m looking for something I can repair in 4 to 8 months .

so it’s sort of works like PayPal credit where say I buy something for £300. They would still apply a minimum payment for example £20 every month even though it’s interest free payments but it goes straight off the £300 .

Yes exactly. You could take out a card which is zero percent for say 24 months. Spend whatever amount you like up to your credit limit and as long as you make the minimum payment each month and as long as the full balance is paid by the 24th month then there is no interest to pay.

cymruchris

Your challenge may be a lack of credit history.

If you've avoided credit cards for 43 years - you may find that it will be difficult to get the best cards with the longest 0 percent rates purely as you have no borrowing history.

It'll depend on what information is on your credit file - if you've been on the electoral roll for many years at the same address with a couple of current accounts and a utility or two - you should find it easy to qualify for some of the credit building cards - but you might not instantly qualify for the big name cards. (You might - but as I say depends on what's on your history files)

Once you've decided you're interested to try - use the eligibility checkers directly on credit card provider websites - don't use comparison websites. As you've avoided credit cards for so long - bear in mine to only apply for ONE card - don't make multiple applications (particularly if turned down) - as each FULL application results in a hard search. One or two every 6 months is fine - but ten in a week trying each and every credit card will throw red flags up everywhere.

Dippygoose

cymruchris said:

Your challenge may be a lack of credit history.

If you've avoided credit cards for 43 years - you may find that it will be difficult to get the best cards with the longest 0 percent rates purely as you have no borrowing history.

It'll depend on what information is on your credit file - if you've been on the electoral roll for many years at the same address with a couple of current accounts and a utility or two - you should find it easy to qualify for some of the credit building cards - but you might not instantly qualify for the big name cards. (You might - but as I say depends on what's on your history files)

Once you've decided you're interested to try - use the eligibility checkers directly on credit card provider websites - don't use comparison websites. As you've avoided credit cards for so long - bear in mine to only apply for ONE card - don't make multiple applications (particularly if turned down) - as each FULL application results in a hard search. One or two every 6 months is fine - but ten in a week trying each and every credit card will throw red flags up everywhere.

My credit history is quite good on Credit Karma its 601 out of 710 as I’ve had loans and stuff like that, just never a credit card.