Questions regarding Lloyds Credit Card.

OzZie

OzZie

OzZie

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Nottingham
Hi,

I'm looking at purchasing an rather expensive acoustic guitar that is £1750 (for my band). I'm 24 and have never owned a credit card before, only debit, but i'm seeing what options i have. I'm not a fan of credit cards in general, but on this occassion i may need to use one!

I was looking at this, which has the lowest rate of interest from what i can gather out of all the available cards. (11.9% APR)

Am i right in thinking if i can pay off the debt within 6 months, i can get away at 0%? (£300+ month x 6, which im prepared to pay). If so, how will they make their money? Transaction fees?

And also, can you pay off as much or as little as you want each month?

Sorry for the lack of knowledge, i've read up quite a bit this evening, but im still not sure of how they operate!
 
PapaLazaru said:
Looks like you can pay it off within 6 months for free. :)

They make their money from people that will fail to do this.
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That was my initial thinking too. By the looks of it, it's an introductory offer at 0%, meaning it might be well suited for one time payments?

Strife212 said:
Transaction fees

There is a minimum payment each month but it's really low
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Oh ok, so maybe around £5 per month or something?
 
I dont get these credit cards.
If i was to get one, with 13 months intrest free, for £1500 and i payed it off over 12 months, how much would i end up paying? Including transaction fees and what not. More than £1500?

Would it matter how much was paid a month? i.e £1 every month then the outstanding fee at the end? Would that differ if i paid £125 a month?
 
bushmins said:
I dont get these credit cards.
If i was to get one, with 13 months intrest free, for £1500 and i payed it off over 12 months, how much would i end up paying? Including transaction fees and what not. More than £1500?

Would it matter how much was paid a month? i.e £1 every month than the outstanding fee at the end? Would that differ if i paid £125 a month?
Click to expand...

You pay no interest, it doesnt start accumulating interest until the end, so you could pay nothing off other than the minimum and then pay the whole lot off at the end of the 0% period.

You wouldnt normally pay a transaction fee on a purchase like a guitar either
 
Simon said:
You pay no interest, it doesnt start accumulating interest until the end, so you could pay nothing off other than the minimum and then pay the whole lot off at the end of the 0% period.

You wouldnt normally pay a transaction fee on a purchase like a guitar either
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I know with finance you end up paying a fee at the end even if they says its 0%.
 
Thanks for the input fellas. Im starting to understand the process a little more. No idea why i didnt think to go with anyone other than Lloyds!

DalGurak: Yes, in fact, my other query was actually regarding limitations. I assume each persons limit is unique based on their records/history? Failing that, i suppose i could borrow about £1200 and use my savings for the rest?

:)
 
bushmins said:
I dont get these credit cards.
If i was to get one, with 13 months intrest free, for £1500 and i payed it off over 12 months, how much would i end up paying? Including transaction fees and what not. More than £1500?

Would it matter how much was paid a month? i.e £1 every month then the outstanding fee at the end? Would that differ if i paid £125 a month?
Click to expand...

Exactly 1500, it doesn't matter how much you pay each month.
 
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