to not understand store cards at the age of 40?

[Sullabylullaby]

I've been approved for a store card.
Question.
Say I spend 50 quid on this card, does interest start accruing immediately or is interest only applied if you haven't made a full payment (i.e. 50 quid) at a date specified in your next statement?
How I've gotten to this ripe old age without knowing this shit, who knows.
I need to build up a credit rating though, so want to pay full amount on time without accruing interest...?
Have I got this all arseways?

The interest will accrue from the off and will be reflected in your monthly payment amount. So for eg you pay £20 per month to it, £15 comes off your actual 'debt' and £5 would be for interest. If that makes sense...!

Interest only applies if you don't pay off the balance every month, but the interest is accrued from the date of the transaction if you don't pay in full each month.

Have I got this all wrong then?

Normally interest is applied if you don't pay it off in full by the due date

No interest if you pay on time. Best way is usually to set up payment by direct debit.

If you pay the full balance by the date given on your monthly statement you pay no interest.
Its like a credit card that only works in one shop

Ok - I've got it right then. So long as I pay the full amount due on receipt of statement, I'll not have to pay any interest at all. Good stuff!

Might go the direct debit way actually. Thank you!

MongerTruffle - I'd say you probably have it right, that if you don't pay full amount, interest will then be applied from purchase date.

No interest will accrue if you pay balance on time AND in full.

No interest if you pay by the deadline.

Usually horrendous interest if you don’t!

Which store card is it? The t&c's will tell you when interest is applied

Always pay it back in full, the interest is crippling (stupid personal experience here).

Ye, interest 24% apr or similar. New Look store card.

Only got it because I have to build up a good credit rating somehow.

From t&cs:
We will not charge you interest if you pay the full amount you owe (shown on your statement as ‘new balance’) by the ‘payment to reach us by’ date. If you choose not to pay the total ‘new balance’ by this date, we will charge interest each day on the amount you owe us. We will charge interest from the date the purchase was made until the date that the amount you owe us is repaid. We will add the interest to your account on the day we produce your statement.

Do you really shop there often enough and spend enough for it to improve your credit rating much?
I'd more suggest a credit card and using it to pay for the food shop, petrol and other normal purchases and make sure you pay it off each month (by direct debit).

Have you looked on moneysavingexpert for best ways to build credit score?

www.moneysavingexpert.com/loans/credit-rating-credit-score

I can't get approved for a credit card, or phone contract or an overdraft with my bank or anything. This is the first credit I've been able to access over here.

A direct debit will only pay the minimum amount - usually 5% of the balance

You need a standing order - which you will have to 'top up'

Credit card companies don't want you to pay them off - they want the interest so make it difficult

OH - and if you buy your first order on 23rd the payment is due 23rd

So make sure your first order is the same as the date you want to clear the payment

Try the money saving expert credit club. It's free and they will look at your credit file and tell you what you are likely to be accepted for. If you've managed to get a store card then your file can't be that bad.

I don't think that's right greentulip, you can set it up to pay the full amount each month by DD

Direct debit can be the minimum payment, a set higher amount or the full balance. My credit card gets paid in full by direct debit every month

I can't get approved for a credit card, or phone contract or an overdraft with my bank or anything*

In that case the store could be breaking the law by selling you a store credit card.

They will have credit scored her in store and an agreement would have been signed

Sorry green tulips but that's wrong. I have both store and credit cards that get paid in full every month by direct debit. It just comes out of my account on the same date every month without me having to even think about it. Obviously the amount varies each month depending on the bill but definitely all done by direct debit.

By far the easiest way to go as then you will never accrue interest and you don't have to worry about forgetting to pay on time.

In fairness, I haven't tried to apply for credit on anything in about 2 years. This is first time I've applied recently and have been approved. Previously I had all sorts of different addresses, no credit record in England etc.