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WHERE TO START WITH CREDIT CARD QUESTIONS

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MSE_Martin
MSE_Martin Posts: 8,272 Money Saving Expert
Part of the Furniture 1,000 Posts Combo Breaker
The best place to start with Credit Card questions is the Articles section of the website.  

Unlike other websites, this one is non-profit driven, the recommendations are purely based on what the best is, not on what pays an affiliate, so you can trust the recommendations.

Doing this helps users of the site:
Many people ask questions that have already been asked, and while regulars are very helpful, this can get a wee bit annoying..  By going to the articles first, most peoples questions are answered that way and this leaves discussions for the more 'subtle' points.

There is a specific Credit Card category which includes

Credit Cards - which one is right for me
The Best Balance Transfers
The Best Cards for Purchases
The Best Cashback Credit Cards
The Best Card for Using Overseas
The Best Rewards Cards, a valuation of over 80 schemes

and a host of other Credit Card articles

Once you have gone through the articles for more specific questions and discussion come back to the forums.  A specific forum discussion on each subject is linked to from the bottom of each article

Martin
Martin Lewis, Money Saving Expert.
Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.
Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 000
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Comments

  • :)Hi Martin. Just to say that I work for Barclays & the new bcard deal until 27th Dec is....New Custs-0%for 6mnths on purchases & 5.9% on bal tfrs till bal paid off. Existing custs-I think are 2.9% for bal tfrs till bal paid off but with a 2%fee.That's for applics in branch anyway.Love your weekly e-mail & the site, it is really useful & very interesting!Thanks!
  • MSE_Martin
    MSE_Martin Posts: 8,272 Money Saving Expert
    Part of the Furniture 1,000 Posts Combo Breaker
    Interesting to hear - i see their site hasn't cahnged

    when does this come in?
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.
    Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 000
  • ioscorpio
    ioscorpio Posts: 2,361 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Had this sent to me as part of a newsletter from https://www.iaprops.com

    The three month debt trap
     
    Not everyone is a victim of the credit card culture that exists in the UK today.

    A small percentage of people are clever enough to play the system to their advantage.

    According to Price Waterhouse Coopers, UK credit companies lose
    £1 billion a year through ‘rate tarts' who take advantage of 0% deals, constantly moving their debt from one credit card to another. PWC says the cost is now getting so high that the zero per cent offers are likely to be withdrawn in the very near future.

    How are you doing with your credit cards?

    It's important for you to remember that the banks and other financial institutions have created the debt trap specifically with you in mind.

    The credit card companies have one aim. They want you to be the equivalent of three months salary in debt. That gives them maximum gains and minimum risk. If you are more than three months in debt, you then become a risk – you may default on your loan or even declare yourself bankrupt – neither of which is good for them.

    Funnily enough, if you ever climb out of the three month debt trap, you are then of no interest to them because they can't make money out of you. In fact you become a downright pain in the proverbial; you demand the highest rate of interest on your current account, you get 45 days credit on your plastic without paying a bean and you use the entire banking system at your convenience and aren't prepared to pay a penny for the privilege. If everyone did this the banks couldn't survive.

    Please note how narrow the three month debt trap is.

    Also notice how difficult it is to climb out of.

    Most people's financial situation is such that they can survive financially from month to month, but are caught in the ‘3 months debt trap' and can't get out.

    The debt trap works brilliantly for the banks because it is not so bad that you ever get angry enough to do something about it. Instead you slip from month to month, constantly in debt and hoping that either the next pay rise or maybe this Saturday's rollover will solve your problem.

    It won't.

    But you can escape. It needs a strong will but the results are well worth the effort.

    There are six rungs on the ladder to financial freedom. Be honest with me here, which of the following categories do you fall into? Where are you on the ‘financial ladder of life'?

    Rung One
    - Got loans, got credit cards.
    - Live month to month.
    - Credit card and loan debt increases year on year.


    Rung Two
    - Got loans, got credit cards.
    - Live month to month.
    - Credit card and loan debt reducing year on year.


    Rung Three
    - No debt.
    - Live month to month.


    Rung Four
    - No debt.
    - If you don't get paid this month it wouldn't be a major problem.


    Rung Five
    - No debt.
    - You have the equivalent of six months salary on deposit or available within 14 days.


    Rung Six
    - No debt.
    - You can write a cheque out for £50,000 without asking anyone's permission.

    So how do you get from one rung up to the next?

    Easy.

    Stop spending money on things you don't need. Accept the fact that you can't afford them and start saving. If the only way you can ‘afford' to buy something is on a credit card then you can't afford to buy it.

    It will take, on average, between one and two years to move up each rung of the ladder unless there is a major change for the better in your income streams.

    For most people this happens rarely or never at all.

    One last thing – being on the bottom of the ladder is bloody hard. As you move up the ladder, life becomes far less hassle and far less worry. You can start to enjoy life again.

    Was it Chris Rock who said – “I've been rich and unhappy and poor and unhappy – believe me, rich is better.”
  • Rung One
    - Got loans, got credit cards.
    - Live month to month.
    - Credit card and loan debt increases year on year.
    I've even heard of people who look forward to climbing up to Rung One. They're pretty fed up of being on Rung -7.
    Mortgage Feb 2001 - £129,000
    Mortgage July 2007 - £0
    Original Mortgage Termination Date - Nov 2018
    Mortgage Interest saved - £63790.60
    ISA Profit since Jan 1st 2015 - 98.2% (updated 1 Dec 2020)
  • Hi all, i am thinking of getting a credit card and as i am only 18, still a student and in part time work i kinda already they will give me one because a friend has one. i am writing a message to ask the following- I will only have a small limit of i reckon maximum of £500 i know i wont spend all of that but was wondering if say i spent £200 would it be ok to pay off monthly installments of £50? And once the 6 months of free interest runs out and i have no exsiting debts what is the best thing for me to do?
  • I hav eyet another question. When it says interest free on purchases what does that mean? E.g intresrt free on purchases for 50 days even though the card is interest free for 12 months?
  • I hav eyet another question. When it says interest free on purchases what does that mean? E.g intresrt free on purchases for 50 days even though the card is interest free for 12 months?
    Dub_G

    This is the wrong place for posting questions like these. This thread is for where to start with credit card questions. I suggest you start a new thread - you've then got more chance of people spotting your questions.

    Thanks.
    Mortgage Feb 2001 - £129,000
    Mortgage July 2007 - £0
    Original Mortgage Termination Date - Nov 2018
    Mortgage Interest saved - £63790.60
    ISA Profit since Jan 1st 2015 - 98.2% (updated 1 Dec 2020)
  • june2rose
    june2rose Posts: 66 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    having paid off the full balance owing on my mint credit card i was annoyed when my next statement arrived showing a charge for interest. the operator explained that interest was due because i paid of the debt using two payments, a monthly minimum payment from my bank account and the balance owing which i got by accessing my account via the internet. the reason for clearing the balance was to avoid further interest charges that i wanted to avoid. does anybody know if this is a correct procedure or are mint ripping me off?
    A shadowy flight into the dangerous world of a man who does not exist.

    A young loner on a crusade to champion the cause of the innocent,
    the helpless, the powerless, in a world of criminals who operate above the law.
  • Galstonian
    Galstonian Posts: 1,292 Forumite
    I can't say from what you posted. Were you paying off purchases, balance transfers or something else?

    If this is just about regular credit card payments for purchases and you cleared the balance by the due date then you should not have been charged at all.

    If you were paying off a balance transfer after a 0% period was the end of the offer the same as the payment date? This is not usualy the case, for example you might get your statment today (the 22nd) and payment might be due on 5th April but if your 0% deal ends on 31st March you would end up with some interest showing on yuor next statement (for 1st to 5th April). If this is the case the reason you were charged interest should not be that you paid in two amounts, it will be that one (or both) payments were received after the date where any interest free period ended.
  • june2rose
    june2rose Posts: 66 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    i used mint solely for a balance transfer last year to take advantage of the interest free conditions, unfortunately i was unable to clear the balance owing when the offer date ran out because i'm off work due to an injury and funds are really low. hence the reason for using the offer to give me some breathing space. no purchases have been made with the card and i've been making minimum payments via my bank so i didn't miss a payment and incurr extra fees. i used another one of my cards to clear the balance owing to reduce the interest due on the balnce due to mint. thats why i was annoyed to be charged interest with the operative using the excuse i mentioned in my original post. any further comment appreciated from you Galstonia. thanks for comment so far.
    A shadowy flight into the dangerous world of a man who does not exist.

    A young loner on a crusade to champion the cause of the innocent,
    the helpless, the powerless, in a world of criminals who operate above the law.
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