Credit Cards... shiiiet

[Gray]

So anyway... I goes in work and out of the blue i managed to sign up for a Credit Card. Bollocks. heh

It was one of those from Barclaycard VISA's with 0% interest for 6mths.

Ive never used a Credit Card, i was always happy with my Solo Debit Card until the Halifax changed it to the new VISA Electrons which hardly anywhere accepts, so i may have to go get this.

Since ive had no interest in a credit card, i dont know much about them, im not a finance type person, if theres somethin i want i'll buy it, but with credit cards it seems different, in respect of having to pay off what you bought.

Do you just pay it off thru your bank (ie Debit Card/Direct Debit) or is there other ways where you have to pay them over the phone or in cash? Gah. Im worried yet interested in this hoping i dont fuck it up, i know im not gonna go mad and use it and if i do i wanna pay it off but still...

:s

 

[Catsby]

Catsby uses his credit card like a debit card.

He has signed a direct debit form, so that the full balance of his credit cards are drawn from his bank account every month.

Catsby likes the extra protection that a CC affords over a debit card (i.e. in the event of fraud, no money actually leaves your account, as you can tell the bank about it before the DD is made).

Catsby suggests you talk to your bank about repayment options, as with HSBC Catsby can pay it using a check in the post/bank, debit card over the phone, over the intenet etc.

As long you don't buy things you cannot afford to pay off, Catsby does not see that you will have any problems.

However, Catsby has seen supposedly clever people going mad and buying a ton of crap they don't need on a CC (the idea of paying it off ...next month), and then getting buggered by growing interest rates.

Catsby agrees with the head of barclays, that you have to be stupid to borrow from a credit card. Loans are far less expensive.

 

[Gray]

I see, so Catsby does think as long as Gray has the required funds ready to pay off the Credit Card, Gray will not hit any problems in regard to the interest rates being charged.

And probably best if i could use the internet to pay off bills and the like, much easier ;ooo

 

[Gef]

If you go into your bank and ask, you should be able to get a VISA/Mastercard 'debit' type card whereby it uses the VISA authentification but just draws the cash from your bank debit style. I know Lloyds do them, alternatively you can just set up a direct debit to pay it off totally every month to avoid paying any interest.

They are dangerous though, I owe about £2500 on mine at the moment .. will pay it off after Christmas!*

*might be lies

 

[Vae]

a) Make sure you pay a credit card off every month and if you do then it can be a good source of short term credit.
b) Generally they will send you a bill and you then have approx 3 weeks to pay the bill in. Normal payment methods include a cheque at your bank or through your banks internet or phone payment systems.

My recommendation would be that if you are going to pay it off each month (i.e. you are using it as a payment method rather than a source of credit which is what it sounds like you are intending to do) then set up a direct debit for the full amount to go out of your bank account a few days after you are paid (you should be able to change the statement date on your credit card to achieve this) so that you never forget and always have the funds available.

This means that instead of amounts going through your bank account each time you use your solo card, during a month, there will be just one payment a month up to about 56 days from when the transaction actually took place meaning you can enjoy earning the interest on that money for the extra time you have it and don't have to pay it out.

Just keep track of what you are spending and spend as though the money was coming out of your bank account now even though the money won't actually move for another few weeks.

(edit - Vae has just noticed that Catsby has said very similar things, but more concisely, while Vae was typing this)

 

[Tom]

Credit cards can actually replace cheap loans. For instance, you could get a loan on a 5 grand car. Or you could get 2 credit cards, spend 5 grand on them both, and transfer both balances to a new credit card and get 6 months interest free credit. Then 6 months later you just transfer that balance to another CC, and so on until you've paid off the debt.

 

[old.user4556]

If you go into your bank and ask, you should be able to get a VISA/Mastercard 'debit' type card whereby it uses the VISA authentification but just draws the cash from your bank debit style.

Visa debit isn't something that you can just request, it's similar to Switch (but cheaper for banks to use) and a lot of banks are moving over to it - your bank will already have to support it or provide Visa debit as a payment method. HBOS is one such company divorcing Switch in favour of Visa debit.

 

[old.user4556]

Credit cards can actually replace cheap loans. For instance, you could get a loan on a 5 grand car. Or you could get 2 credit cards, spend 5 grand on them both, and transfer both balances to a new credit card and get 6 months interest free credit. Then 6 months later you just transfer that balance to another CC, and so on until you've paid off the debt.

Good plan tom, but you're gonna have to be financially astute to manage that well.

 

[Tom]

Good plan tom, but you're gonna have to be financially astute to manage that well.

Its not as difficult as it sounds tbh. I only have one large debt (besides my mortgage) for the car. The only other debt I have is for a sofa, and thats totally interest free, otherwise I'd be doing it.

 

[old.user4556]

Ah but you're a self-employed (hence money wise) mature man , Gray however... isn't .

j/k Gray

 

[milou]

Using a c/c as a debit card is a good idea but if it all goes wrong then: http://www.insolvency.gov.uk/ ;D

(I once interviewed a 48 yr old teacher who owed £249k on 28 cards and loans and a 19yr old who owed £60k (incl £11k to good old MBNA - bless 'em))

 

[Nos]

Doesn't continually transferring the balance from one credit card to another hammer your credit rating?

Correct me if I'm wrong.

 

[Tom]

Nope you're quite right, but fuck them anyway. 18% APR? They can shove it, profiteering *****.

 

[Ch3tan]

Gray, in my experience Electron is accepted in just as many (if not more) places than Solo. Make sure before getting another card you dont need.

 

[.Wilier.]

We have 2 credit cards, a Barclaycard Platinum and an AMEX blue (so actually thats 4, 2 each). We buy EVERYTHING on the credit cards, from the weekly shop to new bits for me PC, we even did like Tom suggests and bought a car on one once.

BUT, and its a big but (bit like Laz's) we pay them both off, completely, every month, therefore there are no charges at all, but you do get nectar points (on the VISA) and cash back on the AMEX.

Credit cards, unless managed correctly, are evil, evil things.

One good thing about Barclaycard is the extended warrenty they offer on electrical goods over £150( I think). You can extend the warrenty by 2 years over whatever is already offered. So our new Sony P150 digicam now has a 4 year warrenty, which is nice.

 

[Gray]

Anyhoo, got the card a few weeks back, and so far i made one payment as a tester to see what to do and the likes (instead of going gung-ho)..

So, ive logged into the Barclays website, , and atm there is outstanding payment of £30, which is the amount from purchasing said items.. Anyway, i went to the "Make payment" option, and it said it wont action it.

This has left me confused somewhat, because now im worried i cant pay off the credit card online, which i had anticipated right at the beginning. I asked someone they said i may have to wait until statement is actually produced before i can pay it.. Is that true, or will i have to make payment via other means?

And only real reason/s for getting this card is because when/if i get my contract phone with o2, they dont accept VISA electrons, so if a problem arises im gonna be stuck to paying over the counter or sending cheque, which, as i know from working there, is an absolute pain in the arse ;o

But also some computer places dont accept debits, like Dabs whom are cheap but unable to purchase.. And one other thing that knocked me off was, i was going to be buying myself new Everton top since JJB are pathetic at stock, so went to buy it online and i found my card was started on 01/05... the website only went upto 04

 

[GReaper]

So, ive logged into the Barclays website, , and atm there is outstanding payment of £30, which is the amount from purchasing said items.. Anyway, i went to the "Make payment" option, and it said it wont action it.

I assume you mean an "Outstanding Authorisation"? These are just payments you've recently made with the credit card but haven't been fully processed yet.

Check for details on the front page which should say something like:

What and when to pay
Minimum payment: £0.00
Payment due date: 30 January

Those are the two things you need to look at. You'll get the next statement sent shortly after the due date for the stuff you're buying at the moment (listed above in "New Transactions").

 

[Clown]

We reserve the right to refuse a balance transfer or to limit the amount that can be transferred, in any case the minimum is £250 and the maximum will be £5,000

I don't know very much about credit cards, but might it have something to do with this?
I want to get a credit card to buy stuff. I will be covering any payments in the same month. 0% interest stuff sounds good just in case. I don't know anything about credit cards though, how they work and what-not.

 

[Ch3tan]

Erm contract phones needing a credit card? Ever heard of direct debit?

And I have used my debit card on dabs. ON the JJB site, did you try just ignoring the start date?

 

[Gray]

Yeah, Direct Debit is going to be whats going to be setup, but working for o2, ive seen so many fuckups were direct debits have had to have been cancelled incase of getting money taken which shouldnt have been, or the likes..

But they do accept all others like Switch/Solo, just not Electron :/

Anyway i gots:

What and when to pay
Minimum payment £0.00
Payment due date / /

So no date to pay by? Will that be reason why im getting "We are unable to process your request at this time. Please try again later." ?

I too, know nothing about credit cards.. but youre only gonna be learning about em when youre out using them (wisely of course!) but wanna get the general questions out way first

 

[Nos]

I assume you mean an "Outstanding Authorisation"? These are just payments you've recently made with the credit card but haven't been fully processed yet.

Answer this question from GReaper, then someone may be able to help you.

 

[Gray]

knew id missed a bit off boohoo

Well yeah its at Outstanding Auth atm,

 

[tris-]

i have 3 CC- egg, mint and capital one.
with egg i have interest free up untill april, with capital one, aslong as i pay a fiver or 10% of the amount per month then the interest is free for 50 odd days, but again in that time aslong as i pay a fiver or 10%, the 50 odd days is reset.
dont know much about the mint as after i got it i realised i cannot make one off payments with online banking so i cant be arsed with it.

its easy to manage them. if your buying something big, just plan what you will pay per month and keep it out the way. i had £300 on my egg card last month and now ive paid it all off. or use it as a debit card. i just use it as a source of credit, because i know i will never go out of control and i can always plan out what to pay and when.

 

[Nos]

In that case it won't let you pay it off yet as the payment has not yet been fully authorised.

 

[Escape]

Stay away from capital one, they were meant to refund me a couple of hundred, but due to 'system failures' and such it hasn't happend. Though that hasn't stopped them from making charges on my account for money they failed to credit. Phoning them is pointless, I've been given 2 dates on when this would be resolved, but no payments were made. Even better, today I found out there's no record of those calls or agreements on their system. I'll have to resort to writing letters :x

 

[ManDevil]

Ive never used a Credit Card, i was always happy with my Solo Debit Card until the Halifax changed it to the new VISA Electrons which hardly anywhere accepts, so i may have to go get this.:s

I'm assuming you have a halifax cardcash or easycash account if you had a solo before. Have you tried upgrading it to a normal current account, because that one comes with a normal visa debit card and not an electron.

 

[Yaka]

been in the same situation me self as you gray, i ended up signing for an egg card, just to buy a gift for me dad from over seas, thats all ive used it for so far

 

[Lazarus]

I have one active Visa Card (and a big but like Wilier says) with 2 cards (one for me and one for the wife)

We pay ours off completely every month. However, on ours, it actually tells you the interest costs if you only pay the minimum amount required on that month.

Gray - something to watch out if you are paying online. It takes around 4 days for the transaction to go through on the internet so you shoudl allow plenty of time for payment or you will incur the interest charges.

 

[ttfe]

to me. credit card is like a time bomb i am carrying everywhere considering the possiblity of its loss and used by others

 

[Cask]

Great thread has made me think a lot about which card to use for buying online. I've had a barclaycard gold that they sent me when they thought I graduated (no one told them I repeated a year) and I've always been pretty nervous about taking it out of my wallet like I'm going to rack up a few thousand £££s debt every time I do.

Anyway is worth mentioning that Barclaycard have withdrawn the extended warranty, but they have just added Internet Delivery Protection which sounds great for online buyers and something Clown could have used in his thread.