Another credit card thread

woofercooker · 21 Apr 2014 at 22:12

First of all ive never had a credit card in my life,Im currently with lloydsbank and they have sent me a letter OFFERING me a credit card, The letter states ive already been pre approved no idea why. The card is as follows

Lloyds Bank Platinum MasterCard Credit limit £2500

Purchase rate 21.94% p.a. (variable) Representative APR 21.9% APR (variable)

Saving - 0% for the first 15 months* on balances transferred in the first 90 days (with a 3% fee).1
Balance Transfer fee refund - refunds part of an initial 3% fee so overall a 0.70% fee is payable.***
Shopping – 0% on purchases for the first 6 months after your account is opened.*
Easy spending – accepted worldwide

Like i say ive never had a credit card in my life and don't currently have any need for one, HOWEVER I like the idea of having a card in my wallet with 2k on it in case of an emergency. assuming there are no hidden charges if i don't use it? the letter states no annual fee. Does this mean if i accept it and leave it in my wallet there is no other charges? as i say im a total noob.

Nitefly · 21 Apr 2014 at 22:15

It depends on your circumstances as to whether you will be accepted, but you ideally want to be looking for an interest free period on purchases. For example, one card I had gave me 2 years at 0%.

banja · 22 Apr 2014 at 02:21

If you have discipline CCs are excellent and can be very useful. Pay on time and you pay no interest. I have Lloyds CC and it's a breeze to use, no annual cost.

You can use the six month interest free period to make (a small amount) some cash if you have a current account with a decent interest rate.

Anyone who says they're the thing of the devil / avoid at all costs blah blah just has no self control.

jcr · 22 Apr 2014 at 07:08

I received an American Express platinum card in the post Saturday. Just needs activating. Unasked for on my part. Quite annoying as I chased the postie down wondering what I'd missed.

[TW]Fox · 22 Apr 2014 at 08:16

Nitefly said:
It depends on your circumstances as to whether you will be accepted, but you ideally want to be looking for an interest free period on purchases. For example, one card I had gave me 2 years at 0%.

No, he doesn't really need to look for that at all. If you are not going to carry debt on a credit card and just use it for emergencies or to build a credit rating, the interest rate on purchases is not relevant because you'll pay it off on the statement date (Which still gives you up to just over 50 days interest free!) so you'll incur no interest anyway.

2 year 0% cards are only worth seeking out if you have a planned large purchase you want to make and then pay off over a longer period, ie as an alternative to paying for car insurance monthly, or whatever.

Getting a 0% card, buying random stuff on it and only paying the minimum payment 'cos its 0% innit is how people end up with a huge balance on the card at the end of the promotional period, which is EXACTLY why card companies like these promotions.

Seft · 22 Apr 2014 at 08:27

jcr said:
I received an American Express platinum card in the post Saturday. Just needs activating. Unasked for on my part. Quite annoying as I chased the postie down wondering what I'd missed.

This could be due to someone fraudulently applying for the card in your name. Amex have a great call centre and should be able to cancel the card for you with no difficulty.

jcr · 23 Apr 2014 at 07:46

Seft said:
This could be due to someone fraudulently applying for the card in your name. Amex have a great call centre and should be able to cancel the card for you with no difficulty.

It needed online activation. I just cut it up and binned it. The PIN number came through yesterday!

noj · 23 Apr 2014 at 08:41

jcr said:
I received an American Express platinum card in the post Saturday. Just needs activating. Unasked for on my part. Quite annoying as I chased the postie down wondering what I'd missed.

If a card came through without you asking for one it means, in all likelihood, that someone else has asked for it in your name. Don't ignore it!

Just because you cut up and binned the card doesn't close whatever account has been set up in your name. Get on the phone to AMEX and tell them what's happened.

You might also want to check your credit report to make sure there are no other cards or accounts that are set up you didn't know about.

To the OP:

If you're after a card just to shove in the wallet then yeah that one will do the job. There are better cards out there though and if you want one to use (and pay off monthly) go do some shopping around and look for one that gives you cash back or reward point that you can make use of.

The best bit of advice with credit cards is don't kid yourself with them. Paying them off monthly means you need to leave the cash to do so in your bank.

[TW]Fox · 23 Apr 2014 at 09:23

jcr said:
It needed online activation. I just cut it up and binned it. The PIN number came through yesterday!

Amex do not send cards out unless they are applied for. I would take this very seriously. It amazes me that people ignore stuff like this.

jcr · 23 Apr 2014 at 10:19

noj said:
If a card came through without you asking for one it means, in all likelihood, that someone else has asked for it in your name. Don't ignore it!

Just because you cut up and binned the card doesn't close whatever account has been set up in your name. Get on the phone to AMEX and tell them what's happened.

You might also want to check your credit report to make sure there are no other cards or accounts that are set up you didn't know about.

To the OP:

If you're after a card just to shove in the wallet then yeah that one will do the job. There are better cards out there though and if you want one to use (and pay off monthly) go do some shopping around and look for one that gives you cash back or reward point that you can make use of.

The best bit of advice with credit cards is don't kid yourself with them. Paying them off monthly means you need to leave the cash to do so in your bank.

Thanks for the advice. I'll give them a call

woofercooker · 25 Apr 2014 at 00:55

When they say 0% on purchases for the first 6 months, Is this just for purchases made within the 1st 6months of getting the card or does it mean you get 6 months intrest free every time you make a purchase? im guessing its just the 1st 6 months.

A2Z · 25 Apr 2014 at 01:12

woofercooker said:
When they say 0% on purchases for the first 6 months, Is this just for purchases made within the 1st 6months of getting the card or does it mean you get 6 months intrest free every time you make a purchase? im guessing its just the 1st 6 months.

Just the first 6 months.

Nitefly · 25 Apr 2014 at 01:15

[TW]Fox;26193437 said:
No, he doesn't really need to look for that at all. If you are not going to carry debt on a credit card and just use it for emergencies or to build a credit rating, the interest rate on purchases is not relevant because you'll pay it off on the statement date (Which still gives you up to just over 50 days interest free!) so you'll incur no interest anyway.

2 year 0% cards are only worth seeking out if you have a planned large purchase you want to make and then pay off over a longer period, ie as an alternative to paying for car insurance monthly, or whatever.

Getting a 0% card, buying random stuff on it and only paying the minimum payment 'cos its 0% innit is how people end up with a huge balance on the card at the end of the promotional period, which is EXACTLY why card companies like these promotions.

The only reason that having an interest free period would be worse than not having one is if you're poop with money. Nor did I say he really needed to look for it.

I think you hunt to disagree with people when in reality there's no argument to be had.