LloydsTSB Master Card - How much interest do I pay?

snedie

snedie

snedie

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So I've had a credit card for a few months now, used it here and there but always when I've had the money to put back in instantly: I used it more for security purposes than anything.

Well I need to buy some equipment for studies (Cisco switches) plus a sound card. I am working but it will take me a couple months to save enough (after rent) to afford what I need, so I was thinking to put this card to use. But....I don't have the foggiest what amount I will have to pay back, how this amount is charged (Added to monthly bill, yearly, quarterly etc) or how long I have to pay it back within*

* Do they just charge (for example) 15.9% on the outstanding amount each month, OR is it just 15.9% on the amount(s) initially borrowed.

Any help from guys who own/use credit cards (specially with LloydsTSB) is very much appreciated.
 
The rate is APR, so 15.9% over the course of a year. Or more simply 15.9%/12 on outstanding balance at the end of the month. Roughly £13.25 per month for £1000.
 
15.9% APR on the outstanding balance from the day the payment is due.

Depending on how much the items cost it might be worth applying for another card with a promotional 0% rate on purchases, then you wont pay any interest.

Though if you need to save up for several months for a sound card... something sounds wrong, are they not like 50 quid?
 
[TW]Fox;19013021 said:
Though if you need to save up for several months for a sound card... something sounds wrong, are they not like 50 quid?
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Sound cards are, Cisco switches cost a bit more :) Check the bay for switches, they tend to go relatively cheap 2nd hand.
 
[TW]Fox;19013021 said:
15.9% APR on the outstanding balance from the day the payment is due.

Depending on how much the items cost it might be worth applying for another card with a promotional 0% rate on purchases, then you wont pay any interest.

Though if you need to save up for several months for a sound card... something sounds wrong, are they not like 50 quid?
Click to expand...

Yes but the switches are £300 a pop and I need 6 of them. :eek:
 
So lets say I took out £500 today, my next payment date is the 6th of may. If I paid it off over two months, how much would I pay back in total?
 
[TW]Fox;19013034 said:
Definately go for a 0% card then. M&S is the best at the moment, 0% for 15 months on purchases.
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So if I took out £1000, I would have 15 months to pay it off and not have to pay anything more than £1000 back?

Oh just to put anyone at ease who is thinking I'm about to get into a boat load of debt, harvest starts in a couple months and I'll be getting a couple hundred a week.
 
If you paid £500 on the card today and your PAYMENT date (ie the date you usually PAY the bill) is 6th of May, then your statement date is likely to be several weeks before.

This means it would be due for payment on 6th June, so if you paid half in June and half in July you'd pay interest at 15.9% APR on £250 you'd be about 3 quid in interest IIRC/
 
snedie said:
So if I took out £1000, I would have 15 months to pay it off and not have to pay anything more than £1000 back?

Oh just to put anyone at ease who is thinking I'm about to get into a boat load of debt, harvest starts in a couple months and I'll be getting a couple hundred a week.
Click to expand...

That's right, you do have to make a minimum payment every month, I'm guessing it's around 5% of the balance.
 
On the M&S card, it says "0% interest for 15 months", but also "15.9% APR". Is that 15.9% for purchases made after the 15 month period, or is it interest applied to all purchases at the end of the year?
 
It's 15.9% after the promotional rate expires - ie, after the 15 months, or if they cancel your 0% rate because you keep missing payments etc.
 
[TW]Fox;19013114 said:
It's 15.9% after the promotional rate expires - ie, after the 15 months, or if they cancel your 0% rate because you keep missing payments etc.
Click to expand...

Thanks for the help guys. I'll apply for the M&S card today, should have it quickly with any luck.
 
if you "took out" £1,000, on a 0% purchases card, you would be paying interest at the full rate in most cases.

0% doesn't generally apply to withdrawals.
 
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