Quick and easy Credit card question! HELP!

boxrick

I currently have no credit cards and only have a debit card with my main account / ISA account and savings account. I am a student with a part time job of average 2 days per week.

I have no "debt" apart from my student loan and the agreed overdraft of 1000 pounds of my student account which i have the funds available to pay back at any time.

I wish to apply for an american express platinum credit card for cashback purposes and for protection on purchases aswell as the ability to purchase goods from american websites which dont accept my debit card. I plan to pay back the amount in full each month or perhaps leave credit in the account

I have never owned a credit card so a few questions:

1) Will i have to pay a PENNY extra for the benefit of using this card if it is paid in full each month without late payments?

2) How easy is it to put credit ( extra cash to pay off credit ) into an american express account?

3) Do american express have an online facility to track purchases?

4) How does APR work, i don't have any real understanding of how it works.

CannyJock

boxrick wrote: »

I wish to apply for an american express platinum credit card for cashback purposes and for protection on purchases aswell as the ability to purchase goods from american websites which dont accept my debit card. I plan to pay back the amount in full each month or perhaps leave credit in the account

Good luck, think this card might require an existing credit history but no harm in trying I guess.

boxrick wrote: »

1) Will i have to pay a PENNY extra for the benefit of using this card if it is paid in full each month without late payments?

2) How easy is it to put credit ( extra cash to pay off credit ) into an american express account?

3) Do american express have an online facility to track purchases?

4) How does APR work, i don't have any real understanding of how it works.

1) Nope, set up a direct debit to clear the balance in full to be sure and to get the maximum interest free period

2) Why would you want to? If you clear it in full then there's no reason to.

3) Pretty sure you'll be able to view your balance online.

4) It's the compounded rate of interest. £ 100 @ 15% basic interest would be £ 15.00 interest at the end of year, but at 15% compounded interest, it's £ 16.08. It's the basic way to compare any interest products (APR on credit, AER on savings).

emma396

seeing as CannyJock has already answered all your question, only comment i would make is that american express is not accepted everywhere.

wooders

I reckon you will have little chance of getting the amex, try moneysupermarket to find a cashback card you'll be able to get.

NickX

boxrick wrote: »

1) Will i have to pay a PENNY extra for the benefit of using this card if it is paid in full each month without late payments?

Generally speaking, you do not have to pay anything extra for using a Credit Card, and if you settle the statement in full before the due date you won't be charged any interest.

However, some companies, and I'm thinking of Travel Agents, Airlines and Car Dealers do add a surcharge for paying by Credit Card because they have to pay a merchant fee to the card provider. This is usually around 2.5% and in these cases, it is usually cheaper to use a Debit Card or even cash. However, for that 2.5% you do benefit from Section 75 protection meaning that you are covered if there a problem with your purchase.