Credit Cards. Noob questions...
Discussion
Afternoon all.
Quick question I hope, and one that will make me look a tad silly I fear.
I've never had a credit card, and I don't particularly want one - but the 123 stuff from Santander seems a great deal.
As I spend around 2500 a year on fuel, that would net me £75 cashback, which isn't bad I guess. Then there are other benefits with interest etc. I think I'd be around £200 a year up with this.
What I want to know is if it's worth the hassle? How exactly do you pay off the credit? I don't want to have to mess around ringing the bank up or going to a branch to pay it off. If it's something I can do once each month and takes 10 minutes I'll go for it.
So has anyone got one of these accounts and do you rate it?
Dan
Quick question I hope, and one that will make me look a tad silly I fear.
I've never had a credit card, and I don't particularly want one - but the 123 stuff from Santander seems a great deal.
As I spend around 2500 a year on fuel, that would net me £75 cashback, which isn't bad I guess. Then there are other benefits with interest etc. I think I'd be around £200 a year up with this.
What I want to know is if it's worth the hassle? How exactly do you pay off the credit? I don't want to have to mess around ringing the bank up or going to a branch to pay it off. If it's something I can do once each month and takes 10 minutes I'll go for it.
So has anyone got one of these accounts and do you rate it?
Dan
You can set up a direct debit to clear the whole balance or visit a website to change the direct debit amount.
Alternatively you can make a call once a month to pay (I prefer DD for ease and to save costs if I forget).
As long as you're careful they are a brilliant for smoothing cashflow and getting extra benefits....I have 3 for various reasons.
Alternatively you can make a call once a month to pay (I prefer DD for ease and to save costs if I forget).
As long as you're careful they are a brilliant for smoothing cashflow and getting extra benefits....I have 3 for various reasons.
Indeed, should have mentioned that the DD can be flexed to be anything from the minimum payment to the full amount but also a set amount between the 2.
The careful comment was only to cover the obvious, don't spend freely/willy nilly on it as it'll still have to be paid back, plus interest (0%-30%APR in the majority but card dependent) if the full balance isn't cleared.
The careful comment was only to cover the obvious, don't spend freely/willy nilly on it as it'll still have to be paid back, plus interest (0%-30%APR in the majority but card dependent) if the full balance isn't cleared.
DanielJames said:
Okay, probably not worth it then for me.
Dan.
IMO everyone should have one, providing they're not an idiot with them.Dan.
- You can have the balance automatically cleared direct from your current account, so no interest fee's
- Can help you manage your cash flow, as you can pay off bills the following month if required
- Guaranteed safety if buying things online, as you can just reclaim back via the credit card company if you get scammed
- Even paying £1 on credit card, and the rest via DD gives you the above security too.
- Can help with credit rating
- Various cash back/ other benefits with different account providers, which you can select to suit your needs.
Personally I think they're great, if they're used correctly.
The Boosh said:
DanielJames said:
Okay, probably not worth it then for me.
Dan.
IMO everyone should have one, providing they're not an idiot with them.Dan.
- You can have the balance automatically cleared direct from your current account, so no interest fee's
- Can help you manage your cash flow, as you can pay off bills the following month if required
- Guaranteed safety if buying things online, as you can just reclaim back via the credit card company if you get scammed
- Even paying £1 on credit card, and the rest via DD gives you the above security too.
- Can help with credit rating
- Various cash back/ other benefits with different account providers, which you can select to suit your needs.
Personally I think they're great, if they're used correctly.
I've never been in debt before so the whole credit game scares me a little...
Dan
DanielJames said:
Okay, sounds a bit better in a list
I've never been in debt before so the whole credit game scares me a little...
Dan
I was the same, but like I said in point one, you can have a direct debit set up from your current account, to clear the balance on your credit card, so you'll only ever be in 'debt' for a short period of time.I've never been in debt before so the whole credit game scares me a little...
Dan
Basically, if you never spend more than you have in your current account, you'll be OK, and not really in debt (as you can pay off if required).
DanielJames said:
onesickpuppy said:
Eh? He's just told you that it's dead easy to manage and the benefits can be great! 
Will the direct debit automatically pay it off, or will it just say add £300 a month to the card?DanielJames said:
I've never had a credit card, and I don't particularly want one - but the 123 stuff from Santander seems a great deal.
As I spend around 2500 a year on fuel, that would net me £75 cashback, which isn't bad I guess. Then there are other benefits with interest etc. I think I'd be around £200 a year up with this.
What do you mean with interest?As I spend around 2500 a year on fuel, that would net me £75 cashback, which isn't bad I guess. Then there are other benefits with interest etc. I think I'd be around £200 a year up with this.
Are you confusing the 123 current account with the 123 credit card as the credit card does not pay you interest, only cashback on qualifying purchases.
The 123 current account pays you interest on credit balances up to 20k and also cashback based on your direct debits.
Almost all of my spending is on credit card.
I pay it off monthly through online banking and as mentioned above it only takes a few moments - no different really than paying into someones account.
Benefits of everything going onto the credit card is the cash-back offers - currently using a Waitrose card to accrue Waitrose/John Lewis vouchers.
I pay it off monthly through online banking and as mentioned above it only takes a few moments - no different really than paying into someones account.
Benefits of everything going onto the credit card is the cash-back offers - currently using a Waitrose card to accrue Waitrose/John Lewis vouchers.
I have a couple, I use one for everything I possibly can to get the cashback. It is paid off every month and last year I got over £500 back.
The other card is kept hidden in the car for emergencies like a lost wallet (2 in the last year because I'm an idiot)!
Use one like a debit card and pay it off every month or get a good deal on a 0% one for a major purchase and take advantage of free money.
The other card is kept hidden in the car for emergencies like a lost wallet (2 in the last year because I'm an idiot)!
Use one like a debit card and pay it off every month or get a good deal on a 0% one for a major purchase and take advantage of free money.
I have a cashback CC and it's paid off in full by DD each month from my current account. Had it for years, and it's not even Spanish! Don't like strings when it comes to finance.
Of course if you take a step back, the CC's will simply charge the retailers more to cover the cashback and the retailer will add that to their prices, so you'll pay a higher price to start with. All wheezes and schemes are paid for by Johnny Punter
Of course if you take a step back, the CC's will simply charge the retailers more to cover the cashback and the retailer will add that to their prices, so you'll pay a higher price to start with. All wheezes and schemes are paid for by Johnny Punter
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