Credit card advice...

[Davyy]

My issue is I have my renewal for insurance coming up, which i'm expecting to be between £1500-2000. A month later I have my holiday to pay for. I can afford it but it will be a bit too tight and i'd rather spread out my insurance monthly if I can without Admiral rapeing me +30% for monthly installments.

So, this is where I wan't to turn to a credit card. I'm 19 and i've never had a loan, no negative credit history and the only positive credit history I have is my phone bill which I've never missed a payment and had it for about 8 months.

Just wondering if anyone on here has been in a similar position and can advise me on a decent credit card to go for etc?

I have had a quick google but wondering if the lovely people of Saxp can help.


Thanks.

[chimnehp0ts]

dont go for a credit card. you cant pay it back youre fucking stuffed.
my bank keeps offering me one and i tell them where to go

/thread.

[Davyy]

A lot of people have credit cards and are completely manageable. The only time i'd spend on it is for this one insurance payment, as I agree with the whole don't spend what you don't have.. but just for this one time :)

[Mochachino]

Look for a 0% apr on purchases for however long you want.

Halifax have a good one available.

Then pay it off as quick as you can. A credit card can save you alot of money if you use it properly. Great tool to have.

[0rang3peel]

yes get a credit card, ignore that plank above (chimnep0ts)

get one with 0% apr first 18months or something, put the insurance on that in one go therefore saving 30%.

make sure you keep up the repayments!

[Davyy]

The whole 0% on transfers, 0% payments, 17.9%APR thing confuses me also.

[Prickle]

Sounds like youve made your mind up

[Yates]

Don't listen to the douche.

If you can afford it, and you re sensible and can be trusted then do it. Go on go compare and see which has the best interest free rates. Mines 18months on purchases. I out my insurance on it too. Use it now and again for other things. Insurance is great for it as they offer big discount for up front, mines saved me over 500

There is nothing wrong with them providing you use them correctly.

Mines Barclay card platinum one.

Just if you do get one dont think oh awesome I only have to pay fiver this month, I know Someone who done that then got to last month and owed 1k.

[Mochachino]

The whole 0% on transfers, 0% payments, 17.9%APR thing confuses me also.

If you have a credit card already with say £400 balance on, then you can transfer it to your new card without paying any interest on it, therefore saving you interest from not having to pay it on your old card.

0% on payments or purchases is exactly what it says, make any purchases and its interest free for however long it says, which means its basically like a load from your parents lol.

the APR there is APR on interest amounts such as withdrawing money at a cashpoint that can also charge you for each withdrawel, and if you dont keep up repayments then you pay interest and lose the 0% on purchases offer.

If your insurance is £1500 then you have say 12 months to pay it off. 1500 / 12 is how much you would pay per month.

[0rang3peel]

The whole 0% on transfers, 0% payments, 17.9%APR thing confuses me also.

0% on transfers means you pay nothing extra on balance transfers

0% on payments, means you pay nothing extra when you make payments.

see mochachinos explanation above its better than mine ;)

[Davyy]

Yeah I know of a couple of people who only pay the interests, say it is £1500 i'll pay that off with the credit card and then pay the credit card 200 a month or something.

[Yates]

The whole 0% on transfers, 0% payments, 17.9%APR thing confuses me also.

if you have 60 quid on a credit card and decide the deals shit and you are going to get a better deal elsewhere U can transfer the debt across, some charge you. But you have nothing else so that's fine. The purchases one is what you want, if it was 18 months on purchases it means 18 months to pay it back, pretty sure you dont get charged, but after that you do get the interest. Not 100% im new to credit cards and always paid it back asap

[Davyy]

0% on transfers means you pay nothing extra on balance transfers

0% on payments, means you pay nothing extra when you make payments.

17.9% apr would be how much you would pay back over a year, so if you borrow £100 over a year you would pay back 117 quid 90p.

see mochachinos explanation above its better than mine ;)


See but that is what confuses me.. if it says 0% on payments, so i've spent £100 on some shoes, why do you have to pay back £17.90?

[Davyy]

Sorry, I missed Mochachino's post. I'm with Halifax so i'll pop in tomorrow and see what I can sort.

Thanks all.

[Yates]

No you dont. Apr is if you with draw cash mate.

Trainers are a purchase. Just go on the comparison sites. Select that you are after one for purchases and kt comes up with everything. As said mines 18 months at 0% so I have a year n half to pay it off.

[Mochachino]

See but that is what confuses me.. if it says 0% on payments, so i've spent £100 on some shoes, why do you have to pay back £17.90?

Sorry, I missed Mochachino's post. I'm with Halifax so i'll pop in tomorrow and see what I can sort.

Thanks all.

You would only pay interest IF you miss payments each month which will take you out of their 0% purchases promotion offer.

OR if you have a balance after the 0% pucrhases term.

Another thing is if you dont have a credit rating or not much detail on it only phone contrct, I cant see you getting over £1200 credit card.

[0rang3peel]

See but that is what confuses me.. if it says 0% on payments, so i've spent £100 on some shoes, why do you have to pay back £17.90?

ignore me see mocharinos explanation above it's better, but basically if you bought some shoes for 100 quid on the credit card and had an annual interest of 17.9% it means a monthly interest rate of 1.38%.

0% on payments just means they don't charge you extra for making payments on the card.

you will probably get charged for withdrawing cash though, so don't do that.

[Yates]

Just because you bank with them dont mean they are best, please use comparison sites. They tell it how it is, often banks can tell U what U want to hear.

Just dont go buying trainers! Once U buy little things you can think fuck it il put that on, this on and that's when you get into trouble. You sound sensible saying just for insurance.

[Mochachino]

Another thing worth considering if you are saying you can afford your insurance and holiday but it will be tight.

Admiral can split your premium into two equal payments, one made on the renewal date and another made the month after, this option is interest free.

[Carl-h]

I think you'll struggle to get a card with a 2k limit and 12 months 0%. I got my first card when I was your age. I'd never had a loan or anything, just my phone bill which was never late. I ended up with a £400 limit card and only 31 days 0% on purchases. I've had it a few years now though and can get virtually any card I like.

Mine is barclaycard with their specific account for people with bad/very little credit history. If you can't get a card for your insurance it may be worth getting one similar to mine to build up a history. It could help you in the future.

The comparison sights have a section for cards with low/bad history too. Just don't get into trouble with them though as the rates are sky high. Mine is paid in full every month by direct debit. I only use it for diesel.

[Davyy]

I'll have it ganders, thanks a lot all. I'll probably be back for more help once I apply for some.

[devilsadvocate]

With little credit history at 19 you have little chance of getting a credit card with a 2k limit and 0% on purchases. Unless your bank will give you one, its likely only vanquis or the capital one higher interest card are your only real possibilities until you build up some history.

[Viper]

The way I see it is if you're sensible with money and know that you can definitely pay it off fine then you should be ok.

I have a direct debit set up on mine so it pays it off in full from my current account monthly.

I use the credit card mainly for fuel and shopping as I get cashback from it :cool:

[Davyy]

Got refused with Tesco :( annoying that they don't say why.

[Brettles1986]

Recently got one from Tesco's 0% on purchases for 18 months.

I would advise you find one with 12 months only though as that way you wont be tempted to pay a yearly premium over 18 months.

[josh11490]

Because your young I doubt you'll get 0% interest and one with over £300 tbh

[Davyy]

I'm trying to find one. All I want is 0% payments for 9 or 12months - I don't care about the other options. Grrr.

[Mochachino]

All depends on income what job it is, your credit history obviously etc.

I got £2500 limit on mine, wont ever go above £700 on it and only use it on things that save me money or for online purchases.

Have you got an overdraft? If you havent you could get one of those probably and alot of people get offered £1500 etc, explain to your bank and an overdraft might be better for you.

[Manu]

How about shopping around instead of waiting for how much the bill is going to be.

[Davyy]

How about shopping around instead of waiting for how much the bill is going to be.

I'm obviously going to do that but I know I won't get it cheaper in my position.

[Davyy]

All depends on income what job it is, your credit history obviously etc.

I got £2500 limit on mine, wont ever go above £700 on it and only use it on things that save me money or for online purchases.

Have you got an overdraft? If you havent you could get one of those probably and alot of people get offered £1500 etc, explain to your bank and an overdraft might be better for you.

I'm going to pop in to my bank after work and see, thanks mater.

[Manu]

You won't know until you effectively do it.

[JAM]

I'm 22 now, first applied to Tesco when I was 19 and got rejected even with good credit history working in NHS and paying Tesco Mobile a monthly payment. . .

I turned to my own bank - Yorkshire Bank and applied; got a letter back saying due to long term customer I could have the premium account of 0% - £5000 limit so I took it knowing I would be reponsible for work expenses and petrol claims etc.

I have recently closed my YB account and took out the M&S card offer:
http://bank.marksandspencer.com/banking/credit-card/landing/credit-card-offer/

15 months' shopping with no interest to pay.
Representative 16.9% APR variable.

I would apply to M&S and see what they come back with mate, if that fails. I'd start to think about avoiding the credit card for now. Too many rejected applications are not good for you credit score.

Good luck!
JAM

[Mochachino]

Yeh as Jam says, the more credit rating enquires made make your credit rating decrease.

[Davyy]

I've applied for M&S, RBS/Natwest but haven't had a response yet and rejected by Tesco. - I'll leave it at that and will still pop in to my bank.

Thanks all!

[Yates]

Have U tried comparison sites or just ignoring what im saying?

[Davyy]

I did have a look at comparison sites which is where Tesco came from and other two are that martin lewis bloke

Went into Halifax also and they could only offer me a £700 overdraft :( at £1 a day

[mlawlan69]

i applied for one on moneysupermarket and got loads back at 0% interest for 18 months each time.

used 2 now to pay off 2 years of insurance and wouldnt ever do it another way, so much cheaper and simpler :)

[Davyy]

How old are you though?

[Carlvtr88]

My issue is I have my renewal for insurance coming up, which i'm expecting to be between £1500-2000. A month later I have my holiday to pay for. I can afford it but it will be a bit too tight and i'd rather spread out my insurance monthly if I can without Admiral rapeing me +30% for monthly installments.

So, this is where I wan't to turn to a credit card. I'm 19 and i've never had a loan, no negative credit history and the only positive credit history I have is my phone bill which I've never missed a payment and had it for about 8 months.

Just wondering if anyone on here has been in a similar position and can advise me on a decent credit card to go for etc?

I have had a quick google but wondering if the lovely people of Saxp can help.


Thanks.

I'm on Tesco Credit Card...... just got me by Christmas. If you use it sensible you're fine.

I don't have to pay interest what so ever on purchases for 16 Months ! So i borrowed 600 quid for nothing extra on top.

I think they give them out in the knowledge every 10 people will contain 1 who will buy shitloads and get into trouble.

[Carlvtr88]

i applied for one on moneysupermarket and got loads back at 0% interest for 18 months each time.

used 2 now to pay off 2 years of insurance and wouldnt ever do it another way, so much cheaper and simpler :)

This is spot on ...

0 % on purchases, so your effectively bypassing the monthly charge you'd get on your insurance, for nothing. This way you can pay monthly, but the original price, not the 300 quid extra they charge you.

[Davyy]

Waiting for my application responses, if no good then I may have to get a shit one..

Anyone recommend any good ones with say a £500ish limit but still has 0%? - My renewal is £1817 :(

[MJ05LLY]

If you get rejected by three mate, then I would look at something else.

Three applications in a short time makes you seem desperate and then banks don't like it because it will effect your credit score badly and that's the last thing you want.

Banks are much tighter now or days. I think you will be lucky to get more than £1k with 0%
That's just my opinion but I'm not a banker so couldn't say for definite.

You need some alternative back up plans bud

[Davyy]

Yea I know :( So annoying! May just have to get an overdraft.. or if worst comes to worse let my girlfriend pay for some of my holiday haha!

[AXracing]

Im afraid the best option is live on a tight budget for a bit. Best option is to avoid any unnecessary loans if all possible.

[devilsadvocate]

How many of us who have credit cards have thought 'oh I will spend £500 and then pay £100 off per month'?

In reality the bill comes and we think, 'fuck it I will just pay the minimum'.

Just something to think about, you effectively have to pay a loan but with a credit card it's just the minimum balance and it won't take long for the 0% on purchases period to end and you then end up paying just the interest, slippery slope.....

[Mochachino]

How many of us who have credit cards have thought 'oh I will spend £500 and then pay £100 off per month'?

In reality the bill comes and we think, 'fuck it I will just pay the minimum'.

Just something to think about, you effectively have to pay a loan but with a credit card it's just the minimum balance and it won't take long for the 0% on purchases period to end and you then end up paying just the interest, slippery slope.....

Im pretty good with it really. It just takes a couple of seconds to make a payment so i just dont think of the loss of money and just pay it

[Yates]

How many of us who have credit cards have thought 'oh I will spend £500 and then pay £100 off per month'?

In reality the bill comes and we think, 'fuck it I will just pay the minimum'.

Just something to think about, you effectively have to pay a loan but with a credit card it's just the minimum balance and it won't take long for the 0% on purchases period to end and you then end up paying just the interest, slippery slope.....

ive never ever paid the minimum, i always check my banking and say ive got 949.50 in account at that time il pay the 49.50 in, do it each time i log on, well thats if i have a credit card bill

[Brettles1986]

How many of us who have credit cards have thought 'oh I will spend £500 and then pay £100 off per month'?

In reality the bill comes and we think, 'fuck it I will just pay the minimum'.

Just something to think about, you effectively have to pay a loan but with a credit card it's just the minimum balance and it won't take long for the 0% on purchases period to end and you then end up paying just the interest, slippery slope.....

I regularly pay £50 a month off my card, even though its interest free its just nice knowing you are paying off your debt pretty quickly.

[TomT]

Did you get yourself one in the end?

[Stissy]

probably bumping back a dead thread - but i've always done this since i was 17. got a credit card on 0% for 12 months. Paid off my insurance using the credit card, then set up monthly repayments to pay back the credit card over a year.

I've done this, along with buying fuel on a credit card each month then paying it off at the end of the month, and its put me in the top 2% of the UK according to my credit report :y:

[Davyy]

Did you get yourself one in the end?

Nope, signed up for ultimate reward with Halifax and the free £300 overdraft was just enough to enable me to pay off holiday and car insurance. And have a further £400 a 31 a day if I need it.

Thanks all.

[Brettles1986]

probably bumping back a dead thread - but i've always done this since i was 17. got a credit card on 0% for 12 months. Paid off my insurance using the credit card, then set up monthly repayments to pay back the credit card over a year.

I've done this, along with buying fuel on a credit card each month then paying it off at the end of the month, and its put me in the top 2% of the UK according to my credit report :y:

Yes .... OK

[Stissy]

Yes .... OK

my experian credit report is 998.

i've owed just over 8,000 in my life (excluding my mortgage) on 4 different credit cards and had two loans, one for 2,800 pound and one for 9,000 pounds - all of which i've paid off within a year of having them. I'v never missed a utilities bill, phone payment, sky etc etc. I'm golden. :y:

[Brettles1986]

my experian credit report is 998.

i've owed just over 8,000 in my life (excluding my mortgage) on 4 different credit cards and had two loans, one for 2,800 pound and one for 9,000 pounds - all of which i've paid off within a year of having them. I'v never missed a utilities bill, phone payment, sky etc etc. I'm golden. :y:

I've had multiple credit agreements (all paid on time) have never missed a payment in my life and I am not in the top 2% as you say.

Granted I have not paid them all off in a year but I'm pretty sure the repayment time frame is irrelevant.

[Stissy]

I've had multiple credit agreements (all paid on time) have never missed a payment in my life and I am not in the top 2 as you say.

Granted I have not paid them all off in a year but I'm pretty sure the repayment time frame is irrelevant.

whats your credit report score? it'll tell you on your report "this puts you in the top X percertile"