Help! basic advice needed.

golden_slumbers

Hi everyone,
I've had a browse through and dont think my questions has been answered, but sorry if they have. I tried posting this on the newbie sticky thread, but only saw an option to reply to someones post, not start your own query, so sorry if this is in the wrong place.

I am in my final year in uni, graduate in June and will start full time work soon after. I have a bit of a money shortfall, so was planning to get a credit card to use between now and July when I should have some money coming in, but I literally have no idea about credit cards!

How do they work, at a really basic level? Do I get one, use it, and get a bill at the end of each month, then decide how much to pay off?

Everything seems to advertise having 0% on balance tranfers, but I have no other cards, apart from my debit card for my current account. I also don't really understand interest, does it only apply if you don't pay off your balance in full? I wont be able to pay much for a couple of months, but am hoping to pay it off quickly when I have some money coming in June/July. Does that mean I will be stung by interest?

As you have probably gathered I am clueless, so I would be very grateful if someone could recommend the best card for my sitiuation, and explain the process.

Thanks x

adaze

Try this article

But in short. You get the card. Make a purchase. At the end of the month [or period, i.e. 30ish days] you get a statement with a due by date. You then make a payment of at least the minimum by the due date. Interest is applied. And it carries on this way.

It sounds like you would be best applying for a card that has a 0% purchase offer. That way you only have to pay the minimum for the offer period and accrue no interest. Hopefully by the end of the offer you will be earning and can pay it off in full without paying any interest.

agsnu

You are unlikely to get a 0% purchase card as a student and someone who has no credit history.

CannyJock

golden_slumbers wrote: »

I am in my final year in uni, graduate in June and will start full time work soon after. I have a bit of a money shortfall, so was planning to get a credit card to use between now and July when I should have some money coming in, but I literally have no idea about credit cards!

Job already lined up or hoping to find one after graduating? You'll have more chance of getting a decent card once you've been employed for 6 months.

If no idea about them, best to avoid them till you've studied up on them a bit. No friends or family with cards?

golden_slumbers wrote: »

How do they work, at a really basic level? Do I get one, use it, and get a bill at the end of each month, then decide how much to pay off?

If you want to avoid paying them interest, you pay the statement in full when you get it - ideally using a direct debit from your current account.

golden_slumbers wrote: »

Everything seems to advertise having 0% on balance tranfers, but I have no other cards, apart from my debit card for my current account. I also don't really understand interest, does it only apply if you don't pay off your balance in full? I wont be able to pay much for a couple of months, but am hoping to pay it off quickly when I have some money coming in June/July. Does that mean I will be stung by interest?

Agree with Agsnu, forget 0% deals if you've no credit history. It's easy to fall into a 0% trap where you rack up a balance then can't repay it. Yes you will get creamed for interest. Why not ask a family member for an interest free loan to help you out for a few weeks?

golden_slumbers wrote: »

As you have probably gathered I am clueless, so I would be very grateful if someone could recommend the best card for my sitiuation, and explain the process.

Really doesn't sound like you should be starting into the world of credit cards until you're in a better financial position. Strange as it seems, credit cards are best when you don't need the money - it's one of the easiest debt traps to fall into if you've not got your eyes open.

Now don't get me wrong, I'm a huge fan of credit cards when used properly, but with no history you'll end up with a sub-prime card - which is fine if you clear the balance in full each month, but are a nightmare if you are going to build up a debt on them.

Clariman

golden_slumbers wrote: »

I am in my final year in uni, graduate in June and will start full time work soon after. I have a bit of a money shortfall, so was planning to get a credit card to use between now and July when I should have some money coming in, but I literally have no idea about credit cards!

How do they work, at a really basic level? Do I get one, use it, and get a bill at the end of each month, then decide how much to pay off?

There are not many places that describe credit cards from scratch which is why I wrote a New to Credit Card Guides which should help you. If there is anything it doesn't answer then let me know and I'll add it in if it will help others.

Clariman
(Disclosure. The Guide referred to above is a on a site that I run as a hobby. Martin Lewis/MSE sponsors the other site I run, but not this one.)