Credit Cards

Camalot said:
If i understand this correct. Say i earn 1k a month. I can use my credit card to buy everything (not exceeding 1k) then pay it off with my 1k wages every month via DD? I use my card to pay for everything, i never carry cash, so the extra protection of a credit card interests me!
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Well it will vary depending on the card provider, some might not let you set up a direct debit for the full amount, it might need to be a fixed amount or the minimum payment.

But the principle still stands; you just put all your spending on the CC and pay it off in full one way or the other just before the bill is due.

Of course the real clincher is the long interest free periods you get on a new credit card; get say 12 months interest free and just pay the minimum amount each month, racking up a nice big debt and an even bigger stash in your savings thanks to the interest. Then BAM pay it all off in one go just before the interest free period expires, and pocket the difference.
 
HangTime said:
Well it will vary depending on the card provider, some might not let you set up a direct debit for the full amount, it might need to be a fixed amount or the minimum payment.
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I'm pretty sure they are required too by terms of the Credit Act, because to do otherwise would mean they would be forcing people into debt.
 
Rich_L said:
Only TPFT though, are people morons if they insure their car fully comp?
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Usually, the difference between a TPFT and a Comprehensive policy (Which most insurers will refuse to offer you on a car valued at more than £5k) is very small. Often less than the annual cost of, say, mobile phone insurance ;)

Although I'd probably have taken out a Comprehensive policy anyway, when I insured my car I was not even offered a TPFT policy. It was comprehensive or nothing. And I rather suspect protecting yourself against damage to something worth many thousands of pounds is rather different to a plastic telephone.
 
platypus said:
I'm pretty sure they are required too by terms of the Credit Act, because to do otherwise would mean they would be forcing people into debt.
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It wouldn't be forcing people into debt, they could just pay it by other means. I've had one credit card for over 10 years and I don't think I've ever paid it by DD.

You might be right, maybe they are required to, but I know that on at least one of my cards, there is no easy way to use direct debit as a means of paying the full balance every month. It certainly might be possible but there doesn't appear to be anyway of doing it online at least.
 
I wouldn't mind a credit card....only reason is to get a credit rating though...And 'just incase' something happens, and I can't physically pay for it.

I'm like the OP, I only use my debit card, and funnily enough, I bank with the same bank :p

My gripe is the fact you have to pay for a credit card...I don't need AA cover or anything, as I'm already with them, or mobile phone cover, as It's just pay as you go.

So I'm just lost really.

I have no idea how they work either actually, never delved into the world of credit in the card sense.
 
Delvis said:
I wouldn't mind a credit card....only reason is to get a credit rating though...And 'just incase' something happens, and I can't physically pay for it.

I'm like the OP, I only use my debit card, and funnily enough, I bank with the same bank :p

My gripe is the fact you have to pay for a credit card...I don't need AA cover or anything, as I'm already with them, or mobile phone cover, as It's just pay as you go.

So I'm just lost really.

I have no idea how they work either actually, never delved into the world of credit in the card sense.
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You don't pay for a credit card...
 
Delvis said:
You do on most I've seen? :confused:

You pay a monthly thing normally.
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You pay interest, but only if you don't pay the balance in full at the end of the month.

For instance, in 5yrs, I've only paid <£100 interest as I usually pay it off asap, or have an interest free card.
 
Phate, here is what you do.
Get said CC -
Get high interest savings a/c - online ones usually offer higher rate.
When you are paid, whack all of your money into said savings a/c, generating you interest on the full amount daily for the month.
Purchase everything - I mean everything on CC (of course within your normal purchasing power).
Then end of the month on or when the day of final CC bill is due for that month, pay from savings a/c down to zero.
You'll be borrowing money for free and generating interest :)
 
I noticed this completely odd trend:
I was paying someone money over the counter at HSBC. I'm standing there in a queue, looking around and suddenly it hits me - to my left there was a large poster advertising some type of Premier account. "We offer Premier customers fee-free transfers within HSBC Group through internet banking. Transfers to banks outside the HSBC Group are just £15". I blinked twice to make sure I'm reading it right. £15 to trasfer money? Joshua flipping wet! "Maybe it's some offshore stuff" I thought. But I'm turning my head to the right and there is large advert going about HSBC Plus account "for a monthly fee of just £12.95 (subject to a minimum 12 month contract)". Thirteen quid for current account??? "What?" I gasped. "I never even say anythin or nuffin" replied small lady in a queue behind me.

I'm reading further and the poster goes on how the £12.95 gets you "convenient 24/7 telephone and internet banking" and fantastic "overdraft rate from just 17.9% EAR" (variable, tracked, capped, unfixed and post scripted with a lot of † and * paragraphs and clauses). Since when is internet banking an extra? Since when is 17.9% a reasonable rate to forward you line of credit anywhere outside east london dockyard operating drug cartels? "What the..." I mumbled. "I soooo can't believe you just sed dat - and anyway, shut up" replied small lady behind me.

But then I look straight ahead and right there, in front of me, they have this whiteboard on stilts and on the whiteboard they have another poster advertising this new product they have - for migrant workers. "For just £6 a month" advertised poster in multiple eastern european languages "you get our Sod All "Passport" Current Account, with unique No Real Benefits Whatsoever package with special 'we'll let you eff off back to your own country without penalty (subject to minimum 12 month contract)' programme". "Bloody outrageous" I whispered. To which the small lady behind me replied "Oh. My. God. I aint got nuffin to do wiv it so leave me out of it and u're well out of order!" and promptly punched me in the kidneys.

Seriously though - every "product" on display was completely retarded.

And once I got to the window, to pay the money in, they asked me to fill up a slip, with stuff like mothership branch of the account holder and my full address and how many notes and pennies I had in my pockets. Seriously. Like it was 1890 and I was sending my miner's paycheck via Western Union back to the old country.

Banking in 21st century.

Unreal.
 
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^^^ Made me chuckle this morning, cheers :D

Got the same thing last year when HSBC decided to screw us graduates over by removing the overdraft, so everyone left. I stayed and it was re-instated via a facebook book demanding it (never lost mine). Then I got a letter through saying they had charged me £25 for an overdraft review which they are now allowing me to have after consideration. It's only the hassle of moving all my direct devits etc to anther bank that has stopped me from moving.
 
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