CREDIT CARD ADVICE

[thebishman]

Hi people

Just wanted to pick someones brains.

Myself and the mrs have never had a credit card...ever. We are a firm believer in if we dont have the money then we cant afford it.

However my dad has always said you shpuld have a credit card just in case of emergancies.

So with this in mind id like to enquire about getting a credit card. For two reasons...one, in case of emergancies and 2 we would like to make a small purchase of something.

Any credit card whizzes in the house? Ive tried reading up on it all but its full of jargon i dont understand.

Bish

[jtc]

My mate swears by his virgin card.
He buys everything he can with it including petrol as he travels a lot.His Mrs does the same and between them they get enough air miles to travel to the USA every year.As long as the direct debit is set up so you pay in full each month there is no interest apparently

[tsoko]

Credit cards are good if you keep control of them, it is too easy to buy on the plastic.
That small purchase you want to buy, can you not get it on interest free credit?

[thebishman]

Thanks for replies. Ill look at that one jonny.

tsoko this is exactly one of the things what im trying to suss out. It wont cost more than 1500 quid for what we want to buy. I know feck all about credit cards!

[tsoko]

Nov 20, 2016 9:30:38 GMT thebishman said:

Thanks for replies. Ill look at that one jonny.

tsoko this is exactly one of the things what im trying to suss out. It wont cost more than 1500 quid for what we want to buy. I know feck all about credit cards!

For something that cost £1500.00 surely you will be able to get that on interest HP.
Trouble with credit cards are that there is always money there to spend even though your bank balance is zero 

[thebishman]

Nov 20, 2016 9:33:46 GMT tsoko said:

Nov 20, 2016 9:30:38 GMT thebishman said:

Thanks for replies. Ill look at that one jonny.

tsoko this is exactly one of the things what im trying to suss out. It wont cost more than 1500 quid for what we want to buy. I know feck all about credit cards!

For something that cost £1500.00 surely you will be able to get that on interest HP.
Trouble with credit cards are that there is always money there to spend even though your bank balance is zero 

Whats interest hp?

Luckily we both are good with money so the "risk" of keep on using it doesnt come into it. It will be used for this purchase and locked away.

I need to suss out whats the cheapest way of getting the 1500/paying it off

[tsoko]

Nov 20, 2016 9:37:33 GMT thebishman said:

Nov 20, 2016 9:33:46 GMT tsoko said:

For something that cost £1500.00 surely you will be able to get that on interest HP.
Trouble with credit cards are that there is always money there to spend even though your bank balance is zero 

Whats interest hp?

Luckily we both are good with money so the "risk" of keep on using it doesnt come into it. It will be used for this purchase and locked away.

I need to suss out whats the cheapest way of getting the 1500/paying it off

Sorry should have been interest free hire purchase, take it over say 2 years pay so much a month, cost 1500 quid pay 1500 quid.

[thebishman]

Nov 20, 2016 9:40:37 GMT tsoko said:

Nov 20, 2016 9:37:33 GMT thebishman said:

Whats interest hp?

Luckily we both are good with money so the "risk" of keep on using it doesnt come into it. It will be used for this purchase and locked away.

I need to suss out whats the cheapest way of getting the 1500/paying it off

Sorry should have been interest free hire purchase, take it over say 2 years pay so much a month, cost 1500 quid pay 1500 quid.

So is that on a credit card?

[Richard46]

Edit I just reread the above ; if you are just getting a card for one purchase ignore all below and my advice look for credit elsewhere CC are usually the worst way of actually borrowing money.

I rarely buy using anything but on a credit card. The secret is to only use them to buy what you already have the money for. Pay off the WHOLE balance each month and for free you get.
1 The best consumer protection available.
i.e You are protected by Section 75 of the Consumer Credit Act whenever you make a purchase for goods or services worth between £100 and £30,000 using your credit card.

Section 75 states that you and your credit card provider are 'jointly and severally liable' for your purchase, meaning if something should go wrong, your credit card provider must refund you if the retailer will not.
Debit card protection varies with each bank.
2 A very simple and relatively safe way of paying for stuff
3 An instant detailed regularly updated record of what you are spending
4 Almost essential if you buy online.
5 Very possibly some kind of cashback depending on what card you use. Hint; if you are paying each month and therefore never paying interest ignore the interest rate; you are not going to pay it anyway; the high interest cards often have the best cashback deals.
6 If you never miss a payment you build up a credit rating vital if you need a mortgage or even a phone agreement etc. If you never have any kind of credit you may not have a credit rating.

Might be good idea to arrange for full balance to taken by DD every month but you still have to check your bank acc. has the funds so not much more effort to pay it off on line yourself each month. However you do it you need to be totally systematic in making sure you pay it off; did I say the WHOLE of it each month. If you cannot do that do not get a Credit Card. Don't forget that it is still really a Debt Card.

Having said all that if you are only going to use it once in a blue moon (and if none of the above are of interest) you may not get the habit of paying it off each month and would it be worth it?

But I love them had one for over 40 years and only once (about 40 years ago when I was young and distracted) have I ever paid a penny in charges or interest and in those forty years they have never caused me to borrow what I did not have.

Above is all just my opinion get others.

[BrenD]

www.moneysavingexpert.com/eligibility/credit-cards/

That's as good a place as any to start as it will tell you what you are likely to get approved/rejected for and you really don't want to rack up the rejections.

The MSE site should be able to answer just about any questions you have, but if not the folks on their forum are great.

[thebishman]

Nov 20, 2016 9:49:03 GMT Richard46 said:

I rarely buy using anything but a credit card. The secret is to only use them to buy what you already have the money for. Pay off the WHOLE balance each month and for free you get.
1 The best consumer protection available.
i.e You are protected by Section 75 of the Consumer Credit Act whenever you make a purchase for goods or services worth between £100 and £30,000 using your credit card.

Section 75 states that you and your credit card provider are 'jointly and severally liable' for your purchase, meaning if something should go wrong, your credit card provider must refund you if the retailer will not.
Debit card protection varies with each bank.
2 A very simple and relatively safe way of paying for stuff
3 An instant detailed regularly updated record of what you are spending
4 Almost essential if you buy online.
5 Very possibly some kind of cashback depending on what card you use. Hint; if you are paying each month and therefore never paying interest ignore the interest rate; you are not going to pay it anyway; the high interest cards often have the best cashback deals.
6 If you never miss a payment you build up a credit rating vital if you need a mortgage or even a phone agreement etc. If you never have any kind of credit you may not have a credit rating.

Might be good idea to arrange for full balance to taken by DD every month but you still have to check your bank acc. has the funds so not much more effort to pay it off on line yourself each month. However you do it you need to be totally systematic in making sure you pay it off; did I say the WHOLE of it each month. If you cannot do that do not get a Credit Card. Don't forget that it is still really a Debt Card.

Having said all that if you are only going to use it once in a blue moon (and if none of the above are of interest) you may not get the habit of paying it off each month and would it be worth it?

But I love them had one for over 40 years and only once (about 40 years ago when I was young and distracted) have I ever paid a penny in charges or interest and in those forty years they have never caused me to borrow what I did not have.

Above is all just my opinion get others.

Thanks richard!

We basically want it for emergencies... but we want to buy something of about 1500 quid. It will be paid off in monthly i stallments.

[thebishman]

Nov 20, 2016 9:51:05 GMT BrenD said:

www.moneysavingexpert.com/eligibility/credit-cards/

That's as good a place as any to start as it will tell you what you are likely to get approved/rejected for and you really don't want to rack up the rejections.

The MSE site should be able to answer just about any questions you have, but if not the folks on their forum are great.

Hi bren thanks for that. I actually did do the moneysavingsexpert thing today. And then that was where i got stumped with all the financial jargon! Lol

[Richard46]

Nov 20, 2016 9:52:25 GMT thebishman said:

Nov 20, 2016 9:49:03 GMT Richard46 said:

I rarely buy using anything but a credit card. The secret is to only use them to buy what you already have the money for. Pay off the WHOLE balance each month and for free you get.
1 The best consumer protection available.
i.e You are protected by Section 75 of the Consumer Credit Act whenever you make a purchase for goods or services worth between £100 and £30,000 using your credit card.

Section 75 states that you and your credit card provider are 'jointly and severally liable' for your purchase, meaning if something should go wrong, your credit card provider must refund you if the retailer will not.
Debit card protection varies with each bank.
2 A very simple and relatively safe way of paying for stuff
3 An instant detailed regularly updated record of what you are spending
4 Almost essential if you buy online.
5 Very possibly some kind of cashback depending on what card you use. Hint; if you are paying each month and therefore never paying interest ignore the interest rate; you are not going to pay it anyway; the high interest cards often have the best cashback deals.
6 If you never miss a payment you build up a credit rating vital if you need a mortgage or even a phone agreement etc. If you never have any kind of credit you may not have a credit rating.

Might be good idea to arrange for full balance to taken by DD every month but you still have to check your bank acc. has the funds so not much more effort to pay it off on line yourself each month. However you do it you need to be totally systematic in making sure you pay it off; did I say the WHOLE of it each month. If you cannot do that do not get a Credit Card. Don't forget that it is still really a Debt Card.

Having said all that if you are only going to use it once in a blue moon (and if none of the above are of interest) you may not get the habit of paying it off each month and would it be worth it?

But I love them had one for over 40 years and only once (about 40 years ago when I was young and distracted) have I ever paid a penny in charges or interest and in those forty years they have never caused me to borrow what I did not have.

Above is all just my opinion get others.

Thanks richard!

We basically want it for emergencies... but we want to buy something of about 1500 quid. It will be paid off in monthly i stallments.

See my edit above now; ignore what I said originally it is not really relevant.

[thebishman]

Thanks richard... so what would be the best way of borrowing 1500 ish? I do still like the idea of having a back up card for emergencies ONLY. We are very good with money so it wouldnt get used for anything else but emergancies and this one off purchase.

[tsoko]

Nov 20, 2016 9:44:44 GMT thebishman said:

Nov 20, 2016 9:40:37 GMT tsoko said:

Sorry should have been interest free hire purchase, take it over say 2 years pay so much a month, cost 1500 quid pay 1500 quid.

So is that on a credit card?

No, you take out a HP agreement, interest free of course.