Credit cards

15
Found 2nd Apr
Hey guys!

Hope you all keeping well, I'm new to credit cards and struggling to understand how it works, so the reason why I want a credit card is because I want to improve my credit rating; I understand that if you buy something with the credit card and pay it back within a specific time frame then I won't be charged interest this could be a way to earn credit. The question is in what time frame do you have pay it back interest free, exactly the end of the month? lol sorry im so confused right now
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15 Comments
I think if u got summit today you’d have 28 days before they charged you I think it would be in small print
If its purely to improve your credit rating, spend on a regular basis, monthly shopping, fuel etc and pay off in full at the end of the month.

Don't expect your rating to improve overnight, 12-18 months before I saw a noticeable improvement on mines.
when you have to pay the money back depends on the card you have as different providers will have different time frame, but it is any where between 2 weeks to 3 weeks from your statement date.

on average i would guess you are talking about 3 weeks after purchase before you have to pay for the purchase.
Timed correctly it can be UP TO 56 days interest free credit
Edited by: "OllieSt" 2nd Apr
Best to set up a DD with your bank to clear the full balance each month, then no chance of " forgetting" . Just use it for a couple of purchases each month then pay it all off every month .
Edited by: "rogparki" 2nd Apr
Don’t forget pay your balance IN FULL
You cant predict this stuff first time but after that, it becomes very regular. For us, the account is processed on the 1st (or 1st working day) of the month and the Direct Debit is collected 3 weeks later on day 20 (on a working day).

As others have said, the secret to controlling a CC is to ask the provider for a 'Variable Direct Debit mandate'. This allows them to bill your bank account for the full balance each month. Some may not be keen to supply it.

If you already have a bank account, I believe you may stand your best chance with that bank but do read the Money Saving Expert links others have supplied.

Never, ever, ever take cash out on a Credit Card. You pay interest from the day you take it out.and then for the next 3 months.
You could also open extra Bank Accounts over time and leave a few quid in them to help build your Credit Score.
Original Poster
Thank you guys, really insightful!
Original Poster
Another question, so i was looking at the grace period where you get 56 days interest free purchases with Barclays, the offer stated that you would get a 0% introductory rate. From my understanding if I pay back on the 56th or before, I will get purchases interest free. But what does the introductory rate have to do with anything- what is it? examples would be great (iv'e read up but still don't understand what the introductory rate is.

Thanks!!!
zirk3rd Apr

You could also open extra Bank Accounts over time and leave a few quid in …You could also open extra Bank Accounts over time and leave a few quid in them to help build your Credit Score.



More than one account application per 6 months will cause negative sccoring
petes98955987 h, 28 m ago

Another question, so i was looking at the grace period where you get 56 …Another question, so i was looking at the grace period where you get 56 days interest free purchases with Barclays, the offer stated that you would get a 0% introductory rate. From my understanding if I pay back on the 56th or before, I will get purchases interest free. But what does the introductory rate have to do with anything- what is it? examples would be great (iv'e read up but still don't understand what the introductory rate is.Thanks!!!


if you pay your balance in full each month then the rate is not of importance to you. it is only important to those who accrue debt on the card. i find the terminology 'credit' card ironic as i think it is more appropriate to call it a 'debt' card since most people who take out credit cards are either already in debt or will be

the interest rate on credit cards for the poor sods who accrue debt on it is astronomical, so the interest on the Barclays card is 0% for a short period to draw people in. it allows them to accrue debt but not pay interest for the first few months then the pain starts if they haven't got enough money to pay the debt back at the end of the 0% introductory period.

you tend to have to a minimum amount of £5 per month during this 0% introductory period. i pay the monthly balance on my credit card even where the introductory period is 0% unless i have spent a huge amount on it, like several thousands, then i would put that money in a savings account during that introductory period.
petes98955987 h, 48 m ago

Another question, so i was looking at the grace period where you get 56 …Another question, so i was looking at the grace period where you get 56 days interest free purchases with Barclays, the offer stated that you would get a 0% introductory rate. From my understanding if I pay back on the 56th or before, I will get purchases interest free. But what does the introductory rate have to do with anything- what is it? examples would be great (iv'e read up but still don't understand what the introductory rate is.Thanks!!!


Great question. Good that you are understanding all this before diving in and getting scammed by very clever bankers.

An 'introductory rate' is just that. A teaser rate to get the unwitting onboard so they can be milked later. Don't worry about it. Worry about how you will pay off the monthly balance before each and every purchase. That's what credit card companies never, ever advertise how to do. Only how easy it is to spend on a card.

I hope the memorable (to the oldies) Hill Street Blues tag line translates into today's language.

"Let's be careful out there"

Keep asking. Good luck
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