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First Credit Card and Clueless 😕

(14 Posts)
PartyShitter Mon 09-May-16 20:48:26

This is painfully dull but I know nothing so I would really appreciate some advice please.

As above, I want to get my first credit card (I'm 30 btw) in order to buy a car asap, probably in the region of £2500. I will be coming into some money in a few months time, probably around September, so will be paying off the credit card in full then. Unfortunately I can't wait until September to buy a car as mine has recently died, otherwise I wouldn't bother with the credit card.

So, I would very much appreciate any advice on what the best card would be. I've got some info from my current bank but it is obviously biased to their own credit cards. What do I look for? Do cards exist with delayed interest or anything like that?

Sorry for the primitive dullness, please accept this cake

WheresLarry Mon 09-May-16 22:08:42

If I was you I would try to get a money transfer card that has a 0% interest period. Check out the credit card eligibility checker on money saving expert website, this could give you an indication of what companies may offer credit.

A money transfer card will.allow you to transfer funds directly from the credit card to your bank account, you can then use these funds to pay. It may also be possible to get a card with 0% on purchases, but I'm not sure.

Please remember that you will have to pay a small amount (2.5%) on balance of money transfer.

This is only my opinion, someone in a better position to advise may come along soon.

TheTartOfAsgard Mon 09-May-16 22:11:27

You might be better off getting a loan, or asking your bank for an overdraft. Most credit cards start off at between £200-£1000 initial credit limit for the first 6 months.

dodobookends Mon 09-May-16 22:32:21

It would probably be much cheaper to get a personal loan from your bank, or an arranged overdraft.

PartyShitter Mon 09-May-16 22:58:38

Thanks for the replies smile

I would like to stick with a credit card as I'll be working abroad next year and would like a bit of a safety net just in case I find myself in an sticky situations. Using an overdraft would worry me too much I think, I'd like to keep it separate from my current account and normal outgoings, if that makes sense. I hadn't thought much about a loan, I think my student loans have given me a fear of the word loan! Just wondering why it would be cheaper to get a loan or overdraft though? Because of interest or something like that? Sorry, I am clueless with this.

My current bank have offered a 0% interest period of 9 months with a high enough limit to cover the cost of the car. If I went with them, purchased the car tomorrow (for example) then would I make normal repayments until September without interest then pay it all off and that's it, it's done? Or is there a catch? WheresLarry do you mean transfer the credit card funds to my bank account to actually buy the car instead of using the credit card? I will have a look at the money saving expert checker too, thank you.

Argh why am I so confused by this angry

dodobookends Tue 10-May-16 00:33:16

The difference between a credit card and a bank overdraft/loan would be the interest rate if you found yourself unable to pay the money back when you expect to - credit card interest rates can be much higher.

When you spoke to your bank, did you explain your exact financial circumstances, why you wanted the money, and when you would be able to repay it? Did they explain what might happen if you can't pay it back?

Akire Tue 10-May-16 00:38:24

You might find bank much more helpful as they can see your pay and outgoings. They are usually good interest rates and much cheaper than a card. Unlike a card you do have to keep paying a loan, it's tempting to hold off with a card Or pay mim amount and then it dies rack up.

PartyShitter Tue 10-May-16 12:03:29

Thanks again for replies. I did explain all to my bank but it was a quick chat ending with them trying to 'process my details' to get the credit card before I had even agreed to it so I think it made me feel a little suspicious of it all. They did say the 0% interest for 9 months would be best as I'd be paying it off in full in September. I just didn't get any answers to my questions like if there are charges to pay it off in full and things like that.

It would definitely be paid off in full in September so I'm not worried about that. I've had a look through money saving expert and seems like a 0% cc is the best option for wanting to pay off in full. It's also put me off going with my bank so I might pop into a diff one and try get some more
info.

Thanks for the help all smile

Julieb85 Wed 11-May-16 18:40:34

We're pretty thrifty with our credit cards and just recently got a deal with the Halifax for 33 Months interest free! Whilst we don't actually out much on the credit card, it just gives us some grace should anything happen and we can't pay it all off in a shorter time frame. Plus with 2 of us when the interest free period is up we transfer into another interest free card (always a small value so doesn't cost too much). In 10 years we haven't paid a penny of interest!!

PartyShitter Wed 11-May-16 22:29:10

Wow that's impressive! It's a whole new world to me so loving those tips. I'll have a look at the longer interest free periods, I like the thought of having that extra period of grace in the future should anything happen.

aginghippy Thu 12-May-16 10:34:29

Money Saving Expert list a few banks that are offering 26 or 27 months at 0%: Best 0% Credit Cards.

Looks like the deal your bank are offering isn't all that amazing.

PartyShitter Thu 12-May-16 17:23:44

You're right, I did have a look around MSE and noticed the much longer interest free period options. I won't be going with my bank, I've decided that for sure. Didn't like the feeling of being railroaded into something when I spoke with them.

OneEpisode Thu 12-May-16 17:31:27

If you only need 9 months then you don't need to borrow for 26 or 27 or 33 months. The good thing about credit cards is they are easy to use in shops. The bad thing is they are easy to use in shops.
When you buy the car, you might or might not be able to use the credit card. If you have a car in mind, ask the supplier.
If you can't use the credit card, you'll need to make a cash withdrawal. Making a cash withdrawal on a credit card is nearly always a very very bad idea; interest rate and charges. And often interest free doesn't apply.
PP said balance transfer, that sounds the way to go, but you need to check if it's treated the good, interest free type way you are expecting, or the bad, cash withdrawal type way. It varies from credit card to credit card.

PartyShitter Thu 12-May-16 17:55:29

That is true but a longer period would give me the chance to use it when I'm abroad next year travelling (if needed and if possible). I didn't even know you could transfer from a credit card to a debit account so will check that out and definitely check if the car dealer accepts credit cards shock can't believe I didn't even think to check. Told you it was a whole new world to me blush I asked my bank if the interest deal changes with cash withdrawals and they didn't really answer but tried to push forward with signing me up anyway so it does all make me quite nervous!

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