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"Credit Cards"

I didnt know where else to post this so i will post it in here.

I was just wondering can someone give me info on credit cards, how they work? etc... as i might get one and would like to know these things first?

Preferable i would like a reply from someone who has a credit card.

I have 4 cards, and have pretty much managed to keep on top of things.

That said, I do currently owe around £3000 on them. But I'm on a fair wage, so it's not something I'm worried about, and I'm paying them off steadily.

Anyway, youasked how they worked - which no-one else seems to have explained!

Basically, when you apply for a card, you provide certaiin information about your current financial status - how much you earn, how much your outgoings are etc.

If they accept your application, they will send you a card with a credit limit, which they determine is "safe" for them. This could range from a few hundred pounds to a few thousand, depending on what info you provided. (Be warned: supplying false information - i.e. telling them that you earn more than you do in order to get a higher credit limit - is a criminal offence.) You sign the back of the card, and it's then ready to use.

Whenever you buy something, instead of giving them the cash, you give them the card, and the amount of the purchase is added to your account.

Every month, you will receive an account statement, telling you what has been charged to your card, and how much you owe in total. There is a form on this statement which you use to pay off your bill.

If you pay off the whole amount each month, you don't pay any interest; effectively you get what you bought at the price you paid for it.

You also have the option to pay only a small amount of the total. You have what is called a "minimum payment" amount, which is usually something like £5 or 5% of the total balance, whichever is the greater.

If you only pay part of the balance, you are then charged interest on the outstanding amount. So effectively you pay more for what you've bought than if you had paid cash. These interest rates vary greatly from one card to another, so have a good look around before applying for any.

After you've had the card for a while, and if you pay regularly, your credit card company will write to you saying that they have increased the credit limit on your account.

Other things to consider are that some cards offer 'payment protection plans', where you pay an additional percentage each month (dependent on your balance) which provides cover for your payments if you can't pay for any reason - such as becoming unemployed etc.

Some cards also offer 'reward points' schemes, where you earn points for every £10 or so that you spend on the card. You can then exchange these points for free or reduced-price items from a catalogue which the card company provide.

Probably the worst for this are Barclaycard, where you get one point for every £10 spent, and the items in their catalogue are largely useless - unless you like wine or cheese.

The best one for me is the SonyCard - you get a point for every pound you spend (tripled if you buy Sony products), and can trade them for other Sony items such as PlayStation games, camcorders, digital cameras, TVs etc.

Anyway, hope that's helped!

I hardly use my card in the shops, I prefer to draw money out. This prevents me running up huge bills on my card, because as I've seen with my mum, If you get carried away with using a card you can put yourself into some serious debt. My mum's debt isn't that bad though, but I do know that some poeples are.

Infact it was on the news not so long ago that this country has a serious debt problem due to credit cards, with thousands of people spending way over their limit. The result is these people rushing to borrow loans to pay off the daebt. Still, if you're sensible with it, then there's no reason not to own a card, you just have to be careful.

I don't want to sound like captain sensible but be careful.
Debt creeps up on you like a slathering shadow.
I owe two grand on my credit cards, and every month I struggle to pay off the minimum payments.
If you get one, only use it to buy things you really need.

I manage with no credit cards. But then I earn a pretty decent wage. If i want some luxuries, I'll get a loan.

I would say yes, get a credit card. But damn well make sure you're always up to date with your payments, and try to pay more than the minimum payment every time.

The only concievable reason I would have for getting a credit card would be to buy things from abroad.

Credit cards are great if you wish to own many things, however, soon you will find that your possessions own you, as your choices become influenced by the fact that you've got to keep on paying your bills.

I have many credit cards, and indeed, much debt, but you try telling me how else I get to live with a few luxuries, on the money I have?

Bah, credit cards are evil, but a necessary one.

My advice, don't get one if you can avoid doing so, when the bills mount up, you'll regret it.

I didnt know where else to post this so i will post it in here.

I was just wondering can someone give me info on credit cards, how they work? etc... as i might get one and would like to know these things first?

Preferable i would like a reply from someone who has a credit card.