credit cards

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foley87

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are they worth getting one..

how exactly do they work? dont get the difference between 0% balance transfers and normal purchases?

anyone care to explain how the fcuk they work lol
 
Using a credit card is just like spending money. What you have is a card and a credit limit (eg £1500) This is the maximum agreed amount you can owe the card provider.
You choose a date (eg 5th of the month) where you pay off what you've spent in the previous month.Think of it as your Dad lending you the money but you have to pay him back on a certain day.If you pay off the full amount before the due date you do not incur any charges
Where the credit card companies make their money is by you not paying back what you've spent. So if you owe £1000 you must pay back a minimum amount (it might only be £50) then you are charged interest (at an agreed amount) on the remainder until you pay it back.
The 0% is when you owe one card provider money , but you then switch that debt to another card provider. They will not charge you interest on that amount for an agreed period but will charge interest on any purchases you make on the new card.
Basically what you should do is only use the card when you know you'll be able to pay back the balance when it's due and then your using their service for free. The advantage of using a card is that most goods or services are covered by credit card insurance for no cost.
 
Don't get any type of credit card if you can possibly get by without havin' one!
 
I have one I use for air miles that I always pay off. I just got a free flight to New York. Something like that can be handy and build your credit IF you always pay off the full balance. As soon as you start accumulating you can easily get buried.

Having said that if you get one and always pay off the entire balance the credit card company will raise your credit limit and lower your interest rate to try to entice you to carry a balance. Don't ever fall for that. Always pay it off if you get one.
 
Skiprats love them as it is a way of buying nice things that they otherwise could not afford. They then spend the next 10 years paying it back and end up paying double what the item cost in the first place. Do not get one. If you cannot afford something do not buy it, its that simple.
 
i heard somewhere that if you signed up for a credit card before a certain date theres a chance you could get away with paying it back. something to do with a new consumer law.
anyone heard anything like this?
 
Steer clear if you can mate. I'm clearing mine slowly and I'll be glad when I've settled it, hopefully I'll fook em off all together. And I'm pretty cautious about using it.

If you do apply for one and get knocked back, whatever you do DO NOT apply for further credit cards because if you get knocked back several times in quick succession this can seriously affect your credit rating, even if you've done nothing wrong.

If you want something you'd be better off looking for a loan with a good interest rate and knowing what you have to pay and for how long IMO.
 
I don't know how old you are foley, but I didn't bother with a credit card until I really needed one.

A long time ago when I was managing in a Cash and Carry, I was approached by one of the lads who needed a day off work. As usuaI asked why and he said he had to go to court because of his unpaid credit card bill.
I asked him how much he owed and he told me £1000. I then asked WTF had he spent the money on? He shrugged his shoulders and said "A pair of jeans, a couple of shirts.........I don't really know"
 
I've got 2 - an egg one which is Visa and a mastercard one form Natwest. I never use them any more, but I've got them as buying certain things like prescription drugs online and 'controlled' substances, also my cd player couldn't be bought with a debit card
 
I've just got a student one from Natwest with a credit limit of £500. I'm just going to just keep it just in case I need to pay any un-expected bills before my student loans come in. Then as soon as they come in then just pay it off immediately.

It comes with 56 days 0% interest on purchases so basically does that mean if I pay off the balance within 56 days i won't incur any interest?

Natwest have also sorted me out with a £1250 interest-free overdraft, once again this is just going to be in case of emergencies.

It's like alcohol and food and all things in life, good in moderation as long as you don't overdo it you should be fine.
 
If I don't quite reach my ISA limit for this year (say I put £3000 out of £3600), can I make a payment from my credit card (of £600 or so), then pay the minimum amount of the credit card until it's paid off?
 
The thing is, you pretty much can't get by without one these days - especially if you want to hire a car and you need to leave an imprint with the rental company.

Having said that, it's a matter of who's in charge - you or the card. Great when it's used as an emergency only, disastrous if you've got to pay for your food with it.

Seen thousands of examples where the debt has become so unmanageable that it becomes a millstone round the neck. When that happens, no easy solution.

That's all....
 
Da_Blu_Moona said:
I've just got a student one from Natwest with a credit limit of £500. I'm just going to just keep it just in case I need to pay any un-expected bills before my student loans come in. Then as soon as they come in then just pay it off immediately.

It comes with 56 days 0% interest on purchases so basically does that mean if I pay off the balance within 56 days i won't incur any interest?

Natwest have also sorted me out with a £1250 interest-free overdraft, once again this is just going to be in case of emergencies.

It's like alcohol and food and all things in life, good in moderation as long as you don't overdo it you should be fine.
Click to expand...

Sort of. Just make sure you pay the due balance before the agreed payment date.
 
If I don't quite reach my ISA limit for this year (say I put £3000 out of £3600), can I make a payment from my credit card (of £600 or so), then pay the minimum amount of the credit card until it's paid off?


Are you barking mad?
So you borrow at 20 odd percent to earn 6%!
 
I work for one of the biggest credit card companies in the world


And dont have a credit card

They are good if you have restraint and can afford to pay your bill in full on time

They are bad if you don't
 
I use my credit card for:

Booking hotels for business
Booking holidays
Booking city tickets
Sometimes shopping

But I always pay the full amount back before the deadline, it pretty much gives me a month to pay back what i've spent, and payday always falls just before the end of that month so it works out great for me.
 
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