Classic Credit Card from Lloyds Bank.

Found 28th Sep 2014
Hi guys, I am new to credit cards.To improve my "credit score", I recently got a Classic Credit Card from Lloyds Bank with credit limit of £1700. I have been using my credit card for small purchases - no more than £100 and paying back full amount every end of the month.

So if I make a purchase of around £700, how long do I have to pay back? within a month or is there a minimum amount I have to pay on monthly basis until the amount is cleared?

Thanks for your replies.
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you would have to pay the minimum payment until it is cleared, however you will be charged interest so the more you pay each month the less you will pay. I hope thatales sense. check your contract with Lloyd for details on minimum payments and interest rates :-)
If you make a purchase of £700 and don't plan on paying it off in full at the end of the month, you may be better off taking a loan with your bank. Bank loans usually have a much more favourable interest rate and will also build your credit score. They are designed as medium term borrowing, rather than short term. Credit cards make the banks money by charging interest. If your minimum payment is £5 and your interest rate is 17.9% hypothetically, you would never pay off the £700 if you only made the minimum payment, as you would be accruing over £10 interest per month and only paying £5 (they wouldn't usually have a minimum payment so low as to have this scenario, but it's just an illustration of why not to make big purchases on a credit card if you aren't going to pay off in full).

Your credit card statement will tell you your minimum payment for that month. There is no time limit as long as you make at least the minimum payment.
Edited by: "Mermoo" 28th Sep 2014
Great advice above from Mermoo.

If you want to make a purchase of that amount, and want to improve your credit rating, make sure you have cash in the bank equal to that which wlyou are going to spend, purchase on the credit card, and repay in full at the end of the month.

I've been there with credit cards, and the temptation to spend is high, but after racking up 12k debt on them, and spending 5 years getting myself out of that debt, you realise that it's no longer all that tempting! Now I always do as I stated above, and I'm debt free.
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