Credit Cards

I've just received one, having never had one ever. Always used my debit card. However, after going through the EMOTIONAL HELL of someone stealing from me, I thought it was a good idea to get one if I ever needed to buy something off the internet.

Anyway, now i've got to activate it. I only intended to activate it if I ever needed to use it. So, quick question to allay my paranoia. If I activate it, I'll only get credit card bills if I actually use it. If I don't use it, it'll be active but I won't hear a peep out of the credit card people? Yes?

That’s how my credit card works. Even if I use it I don’t hear from them in the post as its all done online.

Just make sure if you use it that you clear the balance totally every month. Just paying the minimum amount will attract horrific amounts of interest.

Yes, although you may get monthly statements confirming you have spent nothing.

Also, (someone correct me if I'm wrong) some banks have something in the contract that states if you don't use it in a 6 month period (for example) they may close it. I only vaguely recall hearing that somewhere, so I need someone to confirm it.

i think some cards have a monthly charge just for having them...not mine, but it tends to be if you get a special one, with better rates or extra stuff for free like insurances and stuff...but then you should have been made aware of that when you signed up for it (if it applies to your card)

What's the interest rate like for not paying it back in a month?

B_S_A wrote:What's the interest rate like for not paying it back in a month?

They all vary but it can be quite a large amount (16% or so). I don’t know much about APR and interest etc but I know when I had around £3000 on a credit card the interest was around £45 a month. As the minimum payment is not much more than the interest it will mean you are only paying off a tiny amount of the actual balance per month.

Now I am Mr Nearlythirtyandbeingsensible I no longer have anything on my credit card (unless I pay it off straight away just because I want the extra protection). It is hell on earth trying to pay them off so avoid running them up if you possibly can.

Got my first one last year before a holiday. I mainly use it for sites that don't accept PayPal or debit cards, but I've probably spent less than £500 in a year. I've also got a direct debit setup so that my credit card balance is taken out of my current account every month. [/sensible]

Don't really intend using on the day to day stuff. Primarily just for paying for stuff like car insurance etc. So, during the course of the year I may only use it once or twice.

Am I right in thinking I'll be presented with a bill if I do use it, and then I can go to the bank and pay it all off in one go?

Drunken_Master wrote: However, after going through the EMOTIONAL HELL of someone stealing from me,

I had debit card fraud done on me recently, Still dont know how they got my details. Have you found out how they got you yet?

mcjihge2 wrote:

Drunken_Master wrote: However, after going through the EMOTIONAL HELL of someone stealing from me,

I had debit card fraud done on me recently, Still dont know how they got my details. Have you found out how they got you yet?

No.

My brother works in fraud, and he's told me there's a million and one ways. From skimmers, to dodgy people handling transactions on the other side, to our details all being on file in India, computer viruses etc.

Drunken_Master wrote:Don't really intend using on the day to day stuff. Primarily just for paying for stuff like car insurance etc. So, during the course of the year I may only use it once or twice.

Am I right in thinking I'll be presented with a bill if I do use it, and then I can go to the bank and pay it all off in one go?

Yep, or you can set up a direct debit to pay it off every month/2 months etc

Moggy wrote:

B_S_A wrote:What's the interest rate like for not paying it back in a month?

They all vary but it can be quite a large amount (16% or so). I don’t know much about APR and interest etc but I know when I had around £3000 on a credit card the interest was around £45 a month. As the minimum payment is not much more than the interest it will mean you are only paying off a tiny amount of the actual balance per month.

Now I am Mr Nearlythirtyandbeingsensible I no longer have anything on my credit card (unless I pay it off straight away just because I want the extra protection). It is hell on earth trying to pay them off so avoid running them up if you possibly can.

That's pretty sick

I personally wouldn't want to own a credit card, spending money that isn't mine sounds a bit risky and paying it back seems like something id forget to do

I got a credit card in the summer and pay it off every month.

Gives me protection against:

-Losing my debit card
-Dodgy retailers

And gives me a better credit rating.

It's not exactly easy to "forget" to pay it off if it pays itself off automatically every month by Direct Debit anyway!

Stig wrote:I got a credit card in the summer and pay it off every month.

Gives me protection against:

-Losing my debit card
-Dodgy retailers

And gives me a better credit rating.

It's not exactly easy to "forget" to pay it off if it pays itself off automatically every month by Direct Debit anyway!

Ah it does? I have much to learn

B_S_A wrote:

Stig wrote:I got a credit card in the summer and pay it off every month.

Gives me protection against:

-Losing my debit card
-Dodgy retailers

And gives me a better credit rating.

It's not exactly easy to "forget" to pay it off if it pays itself off automatically every month by Direct Debit anyway!

Ah it does? I have much to learn

It will only do so if you pay off on time every month though obviously. And that doesn't mean "don't use it at all" but put a little bit on it every month and pay it off, and it shows you can pay off a credit card!

I usually put some shopping or some such which is necessary on it, for about £100 a month.

Drunken_Master wrote:I've just received one, having never had one ever. Always used my debit card. However, after going through the EMOTIONAL HELL of someone stealing from me, I thought it was a good idea to get one if I ever needed to buy something off the internet.

Anyway, now i've got to activate it. I only intended to activate it if I ever needed to use it. So, quick question to allay my paranoia. If I activate it, I'll only get credit card bills if I actually use it. If I don't use it, it'll be active but I won't hear a peep out of the credit card people? Yes?

Do you have a car by any chance DM?

A really good way of building up your credit is to pay for your petrol on your credit card, which you can then pay off at the end of every month easily.

That's what I did anyway, also helps you become more responsible financially