Credit cards

[Calgar117]

Hey guys

Looking at taking a credit card out and aiming to use it sensibly, i plan on spending £400 roughly and paying £50 a month, what i am trying to get my head around is

What is it i need to watch out for i am a complete novice when it comes to them and i wish to use it sensibly and not be stung in anyway ive signed up to noddle and it gives me a 3/5 credit score,

I am looking at Barclaycard Platinum with Purchase 0.00% 14 months 2.90% fee 14 months 18.90% APR Representative (Variable)

i understand the interest free payment period but what else am i too look for?

 

[[TW]Fox]

Is this for a one off large purchase of £400 you wish to make?

If so, the Barclaycard is as good a product as any. You'll buy £400 off stuff in Month 1, and provided you make the minimum payment each month (Or, as you intend to, pay £50 a month) you won't pay any interest.

If this is all you wish to do with the card the representative APR is irrelevent. Make sure you set up a direct debit for at least the minimum amount to avoid being stung, you lose your promotional 0% rate if you don't pay on time.

 

[Calgar117]

What ive done before is setup direct debit for the minimal and set up an additional standing order to pay the balance,

Basically i am pondering on an upgrade for my PC so it would be several components from 1 place.

what would basically happen if the credit card is used in several places? assuming it means the interest would be higher once the interest free period has expired?

 

[The Halk]

That'd work fine Calgar. With some credit cards you can now specify an amount which will be paid as long as it's higher than the minimum payment, which would suit you nicely.

Go ahead and apply for that one.

 

[[TW]Fox]

What ive done before is setup direct debit for the minimal and set up an additional standing order to pay the balance,

Basically i am pondering on an upgrade for my PC so it would be several components from 1 place.

Personally this is not the sort of thing I'd be borrowing money to fund. It's the sort of thing you are best off spending money you actually have on, but thats just my personal view. Don't see the point in taking on debt for trivial electronic goods, however cool they might be. It's best to use it for neccesities, like spreading the cost of car insurance, or perhaps if you need home improvements etc.

But thats just my view, so I'll continue to answer the question you've asked not preach at you

what would basically happen if the credit card is used in several places? assuming it means the interest would be higher once the interest free period has expired?

Nothing would happen, thats perfectly acceptable. Infact nothing you buy (buy - not cash withdrawls) in the UK will attract any interest until the end of the interest free period provided you meet the repayments.

 

[Calgar117]

Personally this is not the sort of thing I'd be borrowing money to fund. It's the sort of thing you are best off spending money you actually have on, but thats just my personal view. Don't see the point in taking on debt for trivial electronic goods, however cool they might be. It's best to use it for neccesities, like spreading the cost of car insurance, or perhaps if you need home improvements etc.

But thats just my view, so I'll continue to answer the question you've asked not preach at you



Nothing would happen, thats perfectly acceptable. Infact nothing you buy (buy - not cash withdrawls) in the UK will attract any interest until the end of the interest free period provided you meet the repayments.

Ahh thanks for the information on that your very helpful, and i know i shouldnt use it for trivial things, but even if i do i feel aslong as i am sensible in the sense of repaying i should be ok, im only pondering on spending it on that, personally id rather just have it there knowing if i need it for more serious things i have the funds there to sort out whatever problems i have.

p.s already had the girlfriend get annoyed at me thinking about treating myself to a new pc build so id probably end up not doing it

 

[The Halk]

Ahh thanks for the information on that your very helpful, and i know i shouldnt use it for trivial things, but even if i do i feel aslong as i am sensible in the sense of repaying i should be ok, im only pondering on spending it on that, personally id rather just have it there knowing if i need it for more serious things i have the funds there to sort out whatever problems i have.

It's a good idea if you trust yourself to get a credit card with cashback and put all of your spending through it. For consumer protection, plus a tiny little amount of money each year.

p.s already had the girlfriend get annoyed at me thinking about treating myself to a new pc build so id probably end up not doing it

Dump her.

 

[radderfire]

What is it i need to watch out for i am a complete novice when it comes to them and i wish to use it sensibly and not be stung in anyway ive signed up to noddle and it gives me a 3/5 credit score,

As well as going through all the card T&Cs, you need to be absolutely sure that in the future you will actually be able to meet all the repayments necessary to avoid paying interest. If you have any unexpected financial issues, then the expensive interest starts, so make sure you allow yourself a good margin of error. If you can't do that then personally I would just keep saving.

Rgds

 

[bilscomparison]

Hi Calgar117,

In response to your first question regarding what you need to watch out for when you are taking a credit card out, as well as investigating the necessary Terms and Conditions, it would be best to calculate your future costs and repayments to ensure you do not pay interest. As always, anything to do with money tends to crop up at the wrong time, and it is best to make sure you save for a ‘rainy day’ to allow yourself some healthy leeway.