What's covered under ‘purchases’?

MissNatalie

I’m completely new to all of this, so please bear with me!

I’ve just received my very first credit card (Lloyds Tsb Advantage Card), which gives me 0% on purchases for six months. I assume this covers any goods bought in a store or online…but wondered if I will be charged interest immediately on the following:

-if I set up a direct debit on it to pay for a regular subscription (eg £15 per month for my Cineworld card, or a gym membership)?

-if I pay a utility bill with it?

-if I pay Council Tax with it?

-if I use it to pay my rent (to a private landlord) by standing order?

(I realise that relying on a credit card for rent is a really bad idea, but I’m expecting a lump sum from a book deal to come through in a few months’ time and am living off savings at the moment while I finish it. I’d prefer to get by on a credit card for a few weeks if my savings fall a bit short rather than having to go through the hassle of getting a temp job for a very short time to bridge the gap.)

Also, what happens if I get cashback while making a purchase? Say I pay £10 in a supermarket and ask for £50 cashback…will I be paying 0% on the £10 purchase part but the ‘cash withdrawal’ interest rate of 24.9% on the £50?

[FONT=&quot]Thanks in advance for any advice! [/FONT]
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CLAPTON

you can't set up a Direct debit from a CC
you can't set up a standing order from a CC
you can't get cashback (i.e. cash from shops etc) on a CC


you can allow a company to set up a recurring payment but I would strongly advice against doing this because you can't cancel it , only the company

CLAPTON

ps..

the payments you list will be treated as purpases ... however, many utilities and council and landlords won't let you pay by credit card... you will have to check and see

lisyloo

I would re-iterate what clapton sayd and DON'T do a recurring charge on your credit card.
With bank accounts there is a "diret debit guarantee" and you can unilaterally cancel a direct debit.
With continuous charging on credit cards you CANNOT cancel (even clsoing the card does not work).
Some companies are unscrupulous and this causing people loads of hassle, so my advice is don't do it.

Your landlord will almost certainly not take credit card payments and most councils don't either.

Definitely use it for petrol, food, insurance, clothes etc.

bethanyrayne

MissNatalie wrote: »

-if I pay Council Tax with it?

Check with your council or their website. Mine allows payment by CC

MissNatalie

CLAPTON wrote: »

you can't set up a Direct debit from a CC
you can't set up a standing order from a CC
you can't get cashback (i.e. cash from shops etc) on a CC

D'oh! THICKO ALERT!

Thanks guys. Seems my council accepts credit cards for Council Tax, so that's at least one recurring cost I can cover.

CLAPTON

MissNatalie wrote: »

D'oh! THICKO ALERT!

Thanks guys. Seems my council accepts credit cards for Council Tax, so that's at least one recurring cost I can cover.

no thicko alert here

we all only learnt these things after we took out a CC and then started to learn how they work

MissNatalie

Thanks Clapton.

To think I used to pride myself that I managed my money well enough that I didn't NEED a credit card. Have only just cottoned onto the fact that this makes my credit rating as bad (or even worse) as someone who's up to their ears in debt.:(

bethanyrayne

MissNatalie wrote: »

I’m expecting a lump sum from a book deal to come through in a few months’ time and am living off savings at the moment while I finish it.

If your the next J K Rowling can I say that I knew you before you where a millionaire and that we've been friends forever Oh what about a loan? 0% of course with no obligation to pay of capital.

WOW lost my NEWBIE tag and gained a star.

MissNatalie

bethanyrayne wrote: »

If your the next J K Rowling can I say that I knew you before you where a millionaire...

:rotfl:Unfortunately it's not the most lucrative profession in the world! 90% of the income is earnt by 10% of the writers. Apparently the average annual income of a published novelist in the UK is £7000. Maybe sticking with temping is the better option!

bethanyrayne

MissNatalie wrote: »

:rotfl:Unfortunately it's not the most lucrative profession in the world! 90% of the income is earnt by 10% of the writers. Apparently the average annual income of a published novelist in the UK is £7000. Maybe sticking with temping is the better option!

Nah..keep on striving and dreaming and you'll get there. If you can imagine it happening it can happen. Good Luck