Credit cards... how do they work? (serious thread)

[drakioned]

The £50... the £450 should be within the interest-free period.

Edit:
Actually it depends on how that £500 ended up on the account. If you put £500 onto the card this month, then there's an interest free period, and you should be paying interest on the £50. If you carried over £500 from previous months, then you'd be incurring interest on the whole £500 for the month.

 

[atpbx]

That's a sweeping statement.

I use mine on a daily basis for things like train tickets and petrol for the car. I already have the money in the bank to pay for the purchases upfront, but instead put these transactions on credit as I get better rewards from using it. I then pay the full balance off the following month at no extra cost to me.

As long as you're in control of your finances, then using one every day isn't an issue.

As has been said, thats not the same thing.

If you choose to, you can eat and pay you bills without using a credit card.

Funding yourself regularly from a CC because you have no choice is a completely different kettle of high interest fish.

 

[Lartyconshayo]

The £50... the £450 should be within the interest-free period.

Edit:
Actually it depends on how that £500 ended up on the account. If you put £500 onto the card this month, then there's an interest free period, and you should be paying interest on the £50. If you carried over £500 from previous months, then you'd be incurring interest on the whole £500 for the month.

thanks. That's crystal