Just got first credit card. Bank Of Scotland All in One...help lol

crazyshady

Well i had always been refused for credit cards before with me never being in debt before so i was shocked when i was offered this. So i got offered this card and i accepted it. Its apparantly a £1200 limit. So basically right now im waiting on the card coming and to activate it. Now i understood most of what was said to me and i have the paperwork and it explains the basics. Im sure when the card comes it will have leaflets and stuff.

Now i dont like being in debt. I dont buy anything i cant afford. And ive been told by people when i get my card i should make a purchase even if its just something at £20 and pay it back when the statement comes in so that i have some kind of credit rating. I was gonna ask what you guys thought of it. I know a lot of people hate HBOS. But the real reason i wanted to ask is i was told if you buy with a credit card it can only be over a certain amount. Is this true? And also i hear people constantly going on about buying things that cost lots of money, but they only pay so much a month back. How does that work? This is the details from the site:

% for 10 months on balance transfers made in the first 90 days
[FONT=Arial, Helvetica]0% for 10 months on new purchases[/FONT]
[FONT=Arial, Helvetica]A typical rate of 15.9% APR (variable)[/FONT]
[FONT=Arial, Helvetica]A handling fee of 3% applies for each balance transfer[/FONT]




Take a few minutes to [URL="javascript:OpenChildWindow('https://www.bankofscotlandhalifax.co.uk/onlineservices/applycreditcard.asp?card=bos_1010_159&special=bos','newwindow','','false','/',0,1,0,0,0,1,800,650);"]apply online[/URL] (new window) for an instant decision (in most circumstances). Protect your credit cards with our comprehensive cover plans.
[FONT=Arial, Helvetica]Other extras:[/FONT]

• No annual fee
• Up to 59 days interest free credit on all purchases if you pay off your balance in full each month
• Cover against online fraud when purchasing on the Internet
• Accepted wherever you see the MasterCard sign in over 24 million locations worldwide
• Card replacement if lost
• Additional Cards available
• Around the clock service
• Manage your card online
• Choice of 5 card colours - Black, Pink, Red, White and Blue

[FONT=Arial, Helvetica]To benefit from the 0% rate you must stay within your credit limit and make your payments on time. Balances transferred from other Bank of Scotland or Halifax cards are not eligible for the 0% balance transfer offer.[/FONT]


Can someone just explain to me in english all of that lol. Explain what i need to know.Sorry if it sounds stupid.

[Deleted User]

Hello,

very simply, each month you get a credit card statement. This statement shows how much you've spent on the card. If there is an outstanding balance, you need to repay this in full by the date on the statement otherwise you'll pay a high rate of interest.

However, with this card there is 10 months interest free period on purchases. That means that you only need to repay the minimum amount at the end of each month (2% of the outstanding balance) and you won't pay interest.

Therefore, when you buy stuff with the card, put the money you would have used to pay for the stuff in a high-interest acccount, and then you'll make a small profit.

Make sure you pay off the card balance in full before the 10th statement comes to avoid paying any interest.

Also, never withdraw money from an ATM using the credit card - they will charge you high fees!

There is also a balance transfer facility but don't worry about this if you don't have any other credit card debts, unless you want to get into stoozing?

There's lots of info on this site - have a look round. www.stoozing.com also has some other good info.

YorkshireBoy

Should you choose to take advantage of the 0% introductory offer (and why wouldn't you, unless you had no self-control/discipline to put away what you spend?), your 0% end date will be printed on every statement...DO NOT MISS IT.

I don't think Martin has a 'simple terms' introduction to cards, so here's a couple of links to get you started...

New to cards: http://www.makesenseofcards.co.uk/g_new.html

Top 10 tips: http://www.makesenseofcards.co.uk/g_tips.html

crazyshady

Thanks guys thats answered my questions! Also given me stuff to read upon too. I know im probably going way ahead of myself here but after the 10 months is up and i have to start paying interest is it a lot? And what dose the handling fee of 3% applies for each balance transfer mean? Is that when transfering money online or something?

Also the 90 day thing it mentions. Does that mean if i bought something now, i have 10 months to pay it off interest free. But if i bought something 2 months from now, id have 10 months to pay that off? Or would it just be the remaining 8 months interest free?

This is where im really gonna sound stupid. How do you pay it back? Do you go to the bank and pay with your statement? Do you do it online?

YorkshireBoy

crazyshady wrote: »

...but after the 10 months is up and i have to start paying interest is it a lot?

15.9% APR is 1.2408% per month. A £500 balance would cost you £500 x 1.2408% = £6.20 a month in interest...BUT DON'T EVEN GO THERE!!!

And what dose the handling fee of 3% applies for each balance transfer mean?

If you had a debt on another card, this is what Halifax would charge you to repay it on your behalf. You'd then owe Halifax the money + the 3% fee they've just charged you.

Also the 90 day thing it mentions.

If you wanted to bring a balance to Halifax from another card, you have to do it within the first 90 days to enjoy 0% interest on it.

Does that mean if i bought something now, i have 10 months to pay it off interest free. But if i bought something 2 months from now, id have 10 months to pay that off? Or would it just be the remaining 8 months interest free?

Your 0% intro period has a defined end date...you get 10 months 0% on anything bought in month 1, and 1 month 0% on anything bought in month 9.

How do you pay it back? Do you go to the bank and pay with your statement? Do you do it online?

You can pay over the counter at a bank, by telephone banking, by internet banking, by cheque/post, by debit card on their website, or by direct debit. Personally, I'd recommend direct debit.

crazyshady

Why would you recommend by direct debit? Do you have to pay more by doing the other ways?

YorkshireBoy

crazyshady wrote: »

Why would you recommend by direct debit?

It puts the onus on the card provider to collect the payment. All you have to do is check the statement and make sure you have funds available in your current account on the payment due date.

Once out of your intro 0% period, this method will also ensure you get the maximum (up to) x days interest free each month.

Do you have to pay more by doing the other ways?

Some providers (eg Egg) make a charge for payment by cheque, but in the main, no.