New card - Abbey Zero

pennylane99

High interest rates
The sting with Abbey's card comes after the six-month offer period. Take a balance beyond this period and it's a Zero card in name only. Interest on purchases goes up to 18.9% APR and interest on cash advances goes up to 25.9% APR, which are high rates against other credit cards in the market.
With the purchase rate of 18.9% there is a grace period of 56 days before interest starts clocking up but when withdrawing cash, the interest rate starts from the first day of withdrawal.

http://money.uk.msn.com/creditcards/articles/article.aspx?cp-documentid=8197431

YorkshireBoy

pennylane_(copied_from_somewhere_else) wrote:

High interest rates
The sting with Abbey's card comes after the six-month offer period...interest on cash advances goes up to 25.9% APR...

That's a poorly researched/written article.

Only the cash withdrawal fee is 0%. There is no interest free period on cash advances, meaning interest is charged at 25.9% during the introductory period as well.

whu

just want to be clear on this:
1 does it mean if you use the card abroad to take out money from cash machine you dont pay any charge?
2 if you use the card abroad to pay for a meal etc you dont pay any charge?
Appreciate any comments as looking to get card today if possible in time for hols.
Cheers

exel1966

You will not pay a fee (to Abbey - usually around £3) to withdraw cash, but you will still pay interest until the amount withdrawn is fully repaid.
All purchases abroad will not incur a froeign transcation loading, usually around 2.75%. You will still be liable for any interest if you do not repay your balance in full by the due date.

YorkshireBoy

exel1966 wrote: »

You will not pay a fee (usually around £3) to withdraw cash,

Never drawn cash on my cards abroad, but could the machine provider levy a charge?

All purchases abroad will not incur a froeign transcation loading, usually around 2.75%.

Don't see DCC mentioned on the boards these days. Is it still an issue when purchasing abroad?

exel1966

Yes, the machine provider could charge you for using their machine, but Abbey will not. Whether you have to be pre-notified of any charge though may not be the case in all parts of the world. Certainley within the EU it should tell you before transaction that a charge will be levied.

Again with DCC, the retailer should ask in advance if you wish to use DCC. I belive they are breaking the rules if they do it automatically. Always best to have the transaction done in the local currency.

whu

thanks - just one further point I have seen reference to Nationwides card - how is that different - I note Martin makes reference to it but am not sure of the difference

NickX

pennylane99 wrote: »

Interest on purchases goes up to 18.9% APR and interest on cash advances goes up to 25.9% APR, which are high rates against other credit cards in the market.

These rates don't seem that excessive, 16 - 20% is the norm for the standard variable rate on most cards, and recently there have been reports of MBNA putting their rate up to 34.9% for existing customers.

Also, best advice is NEVER draw cash on a credit card, you will pay through the nose for the priviledge.

Ali660

An application form for this came through the post yesterday (I have a current a/c with them). We were just considering getting a credit card (our first one!) for our forthcoming trip to Florida in Oct. Would this be a good option?

I saw a comment by someone on the forum last week which said something relating to Nationwide not being so keen for non-customers to apply. Anybody heard anything?

Volcane

Ali660 wrote: »

An application form for this came through the post yesterday (I have a current a/c with them). We were just considering getting a credit card (our first one!) for our forthcoming trip to Florida in Oct. Would this be a good option?

I saw a comment by someone on the forum last week which said something relating to Nationwide not being so keen for non-customers to apply. Anybody heard anything?

Yes it would be a good card for Florida.

Nationwide refused me, possibly for the reasons you state but like all rejections you never know for certain.