Ozwin Posted 11 June 2013 Posted 11 June 2013 Thinking of getting one to pay for some flights (about £1000) in a few months. I could buy them straight out now but I thought if I do it via a credit card and pay like a quarter off each month then I can spread the cost and have a better holiday out of it cos I won't be so out of pocket. But there's so many percentages and code words that I'm a bit lost. I know it looks bad if you constantly apply and get rejected so I need to know what I'm looking at before jumping in. Any decent options out there for first time appliers? Just a little heads up would be great, cheers.
Raj Posted 11 June 2013 Posted 11 June 2013 Id only recommend credit cards if you can pay the balance off every month hence incurring no fee or interest. If that's not an option go for the free apr deals...when that expires cancel and goto another..main thing is Dont incur costs!
Matt Posted 11 June 2013 Posted 11 June 2013 Do not get one. As you say you have the money to pay now, so pay it now. Do a few more hours, earn abit more money for spending money. Only had one credit card, when I went Australia and that was purely because I'd get charged commission using debit cards, etc, I only ever bought 1 thing on the credit card paid it of straight away, they won't make any money out if me. So many people I know that have got into debt using them and then the bright sparks take another credit card on to pay off the outstanding one. I don't understand the "I have the money but won't pay it yet" attitude, tbh I don't understand the "I can't afford it but I'm getting it anyway" attitude (ok in some cases people do desperately need certain things). My attitude has always been if I want something I work and save until I can afford the thing.
Renart Posted 11 June 2013 Posted 11 June 2013 Id only recommend credit cards if you can pay the balance off every month hence incurring no fee or interest. If that's not an option go for the free apr deals...when that expires cancel and goto another..main thing is Dont incur costs! I agree with this. Don't get a card unless you can absolutely afford to pay off the whole amount before the end of the month, otherwise it really isn't worth it.
Ozwin Posted 11 June 2013 Author Posted 11 June 2013 They're not very first time friendly are they? I have no idea what APR even means right now. From what I gather, you have to pay a certain % back each month, usually quite a low amount like 1-4%, if you don't then you get charged £12 or something. In my case I'd pay off £250 a month, probably more so it'd all be paid off in 3/4 months easy. After that I'd never use the thing again. I just don't get where the interest comes in. I'm guessing the 0% on purchases (for 6 months or whatever) means if you pay it all off within 6 months then you never have to pay any extra at all, so that sounds good, but then what is this 39% APR all about, where does that come in? I just want to know how they work and what I'm getting into. Feels like there's something hiding away in all the small print.
Bellend Sebastian Posted 11 June 2013 Posted 11 June 2013 Have you read this? http://www.moneysavingexpert.com/credit-cards/best-0-credit-cards It's pretty concise and quite helpful, I thought
Bobby Hundreds Posted 11 June 2013 Posted 11 June 2013 If you don't fanny about and pay £250 each month it won't be a problem. Just don't keep spending on it while the initial £1000 is being paid off. Have a look at some of the online repayment calculators like this https://www.moneyadviceservice.org.uk/en/tools/credit-card-calculator fro an idea of how much you'll be repaying in interest.
lavrentis Posted 11 June 2013 Posted 11 June 2013 £1000 for flights is pretty expensive Finally decided on a destination?
Monk Posted 11 June 2013 Posted 11 June 2013 If the pure purpose of the card is to spread the cost of the flights then there's no harm in going for one that has an interest free purchases rate. Be very strict with yourself about it though. Credit cards are very useful if you play them right. I use mine to get a whole bunch of BA Avios points that I've just used to redeem a business class flight to the states . there's a wealth of info on airline mile cards over at headforpoints.co.uk £1000 for flights is pretty expensive Finally decided on a destination? Not really - that's just a couple of long hauls worth. Where are you headed?
lavrentis Posted 11 June 2013 Posted 11 June 2013 Not really - that's just a couple of long hauls worth. Where are you headed? Makes sense if he's travelling Business but I think Oz and NZ are 1k+ flights aren't they so makes sense if he's going there
Monk Posted 11 June 2013 Posted 11 June 2013 Makes sense if he's travelling Business but I think Oz and NZ are 1k+ flights aren't they so makes sense if he's going there He said flights so I'm assuming its a few economy flights aking up a bigger trip?
lavrentis Posted 11 June 2013 Posted 11 June 2013 He said flights so I'm assuming its a few economy flights aking up a bigger trip? Makes sense. Regarding the thread, I think it all depends on how well disciplined you are. It sounds like a good idea if you are.
Monk Posted 11 June 2013 Posted 11 June 2013 Also business class flights for £1000? Long haul? Show me where they are! 2 premium economy flights to the states recently set me back £2k alone.
lavrentis Posted 11 June 2013 Posted 11 June 2013 Also business class flights for £1000? Long haul? Show me where they are! 2 premium economy flights to the states recently set me back £2k alone. I was talking about economy.
MikeyT Posted 11 June 2013 Posted 11 June 2013 Don't get one! More hassle that they're worth! I'm speaking from experience.
Leicester Lass Posted 11 June 2013 Posted 11 June 2013 If you just use it for the flights and get an interest free one then there's no problem. Set up a DD for £250 a month and you're done. In the wrong hands credit cards are no good, but used properly they're a good way of borrowing money.
Langley Posted 11 June 2013 Posted 11 June 2013 Thinking of getting one to pay for some flights (about £1000) in a few months. I could buy them straight out now but I thought if I do it via a credit card and pay like a quarter off each month then I can spread the cost and have a better holiday out of it cos I won't be so out of pocket. But there's so many percentages and code words that I'm a bit lost. I know it looks bad if you constantly apply and get rejected so I need to know what I'm looking at before jumping in. Any decent options out there for first time appliers? Just a little heads up would be great, cheers. A credit card is a sensible option for things like these. People who say not to get one have not used it properly. Look for one which is 0% on purchases. I know that many out there have 3 months interest free. Tesco have one which is 14 months interest free (you have 14 months to pay it all off without incurring interest). If you're thinking about using one when you're abroad use either the Post Office credit card or the Halifax Clarity. Both are fee free on purchases abroad whereas if you used your own debit/normal credit card, you're going to be charged 3% on purchases each and every time. A lot of companies have a pre-paid card but if you're looking to spread the cost then the 0% on purchases is for sure the best route to go down. Around 16.9%-19.9% is pretty much the norm. If you're worried, check your own credit report on experian first. See where you're at and then take it from there. If it is saying that you've got no chance in hell then the question is mute. (I sell credit cards).
marbelladave Posted 11 June 2013 Posted 11 June 2013 We use credit card deals all the time. Wanted a holiday in the Caribbean, basic price £1800 plus upgrades, airport parking, insurance etc, total about £2250. Applied for a credit card that gave 16 months interest free on purchases, made all the purchases in a couple of weeks, set up a direct debit for £150 per month then tucked the card in the back of the draw. Paid off one month early, easy.
whitlock Posted 11 June 2013 Posted 11 June 2013 Credit cards are fine longs you play/use them correctly. Helps with the old credit history as well.
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