Credit card loan help

MoBo said:
Buy it on the credit card

* Apply for a new 0% credit card.
* Transfer the debt to new card.
* Set up a direct debit to pay off card within the time limit or minimum amount.
* Do not use new credit card.
* Cut up new credit card.
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Exactly what I did! This is the way forward!
 
Gigabit said:
My question is, can I pay off the remaining balance on the card every month so I am just paying the phone on a monthly basis, or if I pay a certain amount does it pay off the most least expensive purchases first?
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Check the terms and conditions of your particular credit card. In fact, it should state this on the monthly statement you get.
 
Gigabit said:
I only have four months or so of paying off my current card in full every month. Is that enough?

Previous to that I had never had any credit before, because I could not legally get any.
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well why did you apply for such a crap card in the first place - did you try applying for others and get rejected? Are you employed?
 
He can't be the font of all knowledge at that age which is why he's asking for advice.

Belittling him for his original choice isn't helping.

Good on you chappie for having the guts to throw it out to the wolves !

MAJOR KUDOS for not letting it roll over each month.
 
You're better off saving the money and buying it outright. A phone you have to fund on finance isn't exactly a necessity.
 
Yes I am employed, I work for a very large company, in a rather good position, much better than most people my age I would like to say.

All the cards I looked at required some form of credit history, which I knew I didn't have because I had never had credit before. I don't see what that's my fault, as by law I wasn't able to build a credit history.

All the cards that required little credit history had the same APR rate. I went with Barclaycard because they said they would reduce the interest rate if I showed a history of managing credit responsibly (which I think I have shown). I was simply asking what the best way forward from here is.

By all means I'll apply for another card but with a few months credit history only, I don't think I'm suddenly going to able to cut my APR in half. It takes years to build a credit history.
 
Go to money supermarket and use their card comparison tool to see what card you're likely to b accepted for, and more importantly, what you're unlikely to get. Find a card with a suitable offer of either 0% on purchases or balance transfers (much more likely for you) and go from there.

In my experience the acceptance estimates are pretty much spot on. Having spent the past few years jumping between 0% offers.
 
Gigabit said:
I always pay the card off in full every month but I am looking to buy a phone and I have worked out that even with the interest, over 12 months it works out much cheaper than getting it on a contract.
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You're 18. Get a cheap phone that will do what you want but likely not so well for 20% of the price of a top-end phone.
 
I cant believe people are slating this guy as being poor at money management/decisions simply because he has a high APR credit card when, in reality, it's actually the other way around:

  • He couldnt have been poor with credit before considering he has just turned 18 and was unable to get credit at this point to be able to manage it poorly.
  • He is actually doing the perfect thing - Turn 18 and get a CC which he clears off before paying any interest thereby creating and strengthening a credit profile.

Give the guy a break




edit - in realtion to the OP's question -

The balance is the balance irrespective of the purchase as none of them are qualifying for a special rate e.g. 0%.

All you have to do is pay off the balance you used that month plus whatever you planned to pay for the phone on a monthly basis and your theory will work the same e.g:

  • Phone Costs £x
  • You spend £y on shopping that month
  • £x + £y = total balance
  • Pay off £y each month PLUS some of £x

This results in you paying off your monthly spending as you have been doing already whilst also paying down some of the "phone balance"
 
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norm said:
You're better off saving the money and buying it outright. A phone you have to fund on finance isn't exactly a necessity.
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This ^^^

I never had any money spare due to having to pay for far too many loans in my younger years....:(
The last loan I had was 8 years ago..:)
 
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Gigabit said:
I am looking to buy a phone and I have worked out that even with the interest, over 12 months it works out much cheaper than getting it on a contract.
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Give us the numbers please. It might not be as big a difference as you think, depending on what your usage will be.
 
Richie said:
I cant believe people are slating this guy as being poor at money management/decisions simply because he has a high APR credit card
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This is OCUK where a large majority of the forum seem to think unless you earn six figures plus and can afford to buy your house outright in cash then you are sub-human and can't possibly mange your finances in the manner expected with that of the forum population.

Whilst a lot of the comments are uncalled for and pathetic, they are unfortunately not unexpected from some of the residents here.
 
He pays his credit card off every month in full - as a result it's APR is irrelevant and you can't really judge him based on single figure like that anyway. Some of the very best cashback and bonus cards are high APR, it matters not if the balance is cleared because you'll never pay that interest.
 
Look on MSE, I think Tesco even went up to 35 months at one point.

EDIT: Halifax 40 months, Tesco 38 months.
 
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Rotty said:
If you are looking at then likes of the VA black its a bit misleading as the annual fee is included in the APR which massively skews it
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I *think* it was the British Airways one, can't remember. I don't get AMEX anyway, so many places won't even take it. It seems to flourish on prestige more than anything as their fee structure is crazy, everyone who goes near one has to pay fees. I turned it down last year, it offers nothing that my Barclaycard doesn't offer me :confused:
 
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