Bryn T
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Geez, First of all, I'd suggest checking other banks for better rates on both items.
I'm not sure what country you're in, but you should be able to get a line of credit for much less than 18%, and more around the 7% mark, plus or minus.
As to the credit card, I'd suggest one of the "no options" kind, which don't offer air miles, trips or other fluff. You should be able to find one in the 11% range.
Check other banks, it doesn't appear that your bank is giving you the best advice. There are banks that can give you all this advice and more. Yours obviously isn't doing it and you need to hold them to task for it. After all, you're the customer!
Good luck, I hope this helps. |
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KKingS
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Honestly, I would just stick with your overdraft. That interest is a little high, but if you mess up just once on that credit card, you'll probably default and end up with an APR of 29% (trust me, I know.)
The *best* solution would be to start a savings account going. If you can have an emergency fund, you'll have no need for the overdraft or a credit card. You have to be very careful with credit cards. Any one has potential to let those things get out of hand. |
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The Badger!
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seriously a bit of friendly advice dont ever get a credit. no matter how good you are with your finances its so easy to slip into the red with credit cards...
the companies make it too easy to transfer balances and borrow more they are incredibly high borrowing rates and simply paying the months bill a day late can incurr you £20.00 - £40.00 charges
if i was you i would defo stick to your overdraft... |
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Brick
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Listen. Just get a credit card with the typical 25 days to pay with no interest. Then learn to pay in full EACH AND EVERY MONTH. If you find that difficult you need to spot purchasing more than you can afford.
By doing this YOU will be using the credit card to finance you for 25-30 days at no cost to you.
This will teach you how to spend within your means.
If you have big ticket item to purchase then make sure you have savings that are liquid enough to pay back that big ticket item within the 25 days.
If you don't have savings then you should not purchase with that credit card!!
These credit interest rates just kill your ability to move ahead and save properly. |
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jamie c
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Id recommend you apply for the credit card anyway as you do not have to take the offer up and have the right to cancel within 14 days of recieving it.
If the apr is 15.9 variable interest yearly, this means you may get an even lower rate if your credit score is good, ie no payments missed on finance and bills etc. The 0 per cent balance transfer means if you have another credit card, you can transfer that balance to the new card and it wont attract interest for the 12 months.
Try to pay off the full balance every month to avoid any interest added,then your be quids in
if you decide to keep the card,keep your overdraft in case of emergencys.
Hope this helps |
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globetrotter
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The bank is making a lot of money on your overdraft line of credit. Get a credit card from the bank at the 0% interest rate and use it CAREFULLY for a year. You'll be able to look for another card near the end of the year that will give you the same deal. If you charge items on the card at 15.9%, make sure that you pay the balance at the end of the billing period, so you don't pay interest al all. The operative word is CAREFULLY. |
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KathyS
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I would get a credit card that offers 0% for a certain amount of time and use it very wisely. Paying on time will be good for your credit rating. Not paying on time can ruin your credit rating. |
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Franco
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It is to your credit that you have gone to the trouble of finding the different rates charged.
On the figures you have given,the card charges lower interest and is therefore cheaper. But there are cards charging less than that. Also, in addition to the interest rate, find a card that gives you 56 days interest free on purchases and then only charges on the outstanding balance.
The Which magazine conducts some very good comparisons and recommends best buys. |
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mister ed
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first of all you are not an idiot -- an idiot is someone who will not seek advise until they are over there head in dept --- one thing that using the overdraft policy since it is not like bouncing a check you are building up a credit reference with your bank and that is the best place when the time comes to get a car or house loan
but if i was you i would go ahead and get the bank credit cared from the bank -- use it just like a debit card -- charge just a few dollars a month -- a tank a gas here and maybe a weeks worth food there -- when you get your bill you will all ready know what you owe and you have budgeted for this bill so pay in FULL== this will help over time built up your credit score.. something you have to put into context -- yes it makes matter what interest rate you pay -- but if you are talking nickels and dimes the reference the banker will give you later in life will off set this small amount of money!!! |
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vampwithaheart
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unless you are going to pay your credit card in full each month you'll be better sticking to your overdraft.
The 0% on purchases is usually assuming you pay on time every month... make one late payment and you'll lose the 0% and go onto normal interest rates. Get the application and read the small print.
Credit cards with offers sound great but there are "catches" so beware! |
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SKT1
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The 0% for 12 months on purchases means that once you activate the card, you can make purchases and not be charged interest on those purchases.
E.g. If you spend £1000 and leave that balance on your card, you will be charged 0% interest on the balance. But after12 months, you will be charged 15.9% interest on any balance.
The same applies for balance transfers - if you transfer £1000, you will not be charged interest on this transfer for 12 months - then it goes up to 15.9%. |
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Len
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The 0% interest on balance transfers, cannot apply, as you've no balance to transfer. (not being a credit card holder). If you are able to pay the whole amount used on your new credit card,(assumimg you are having one) monthly, you will not be charged interest. |
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MagsR
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Credit cards are very useful tools and needn't cost you any money if -
You arrange to pay the minimum balance every month by DD this will insure you don't get a late payment supplement just cos you were away/busy/forgot.
Or better still arrange to pay the balance in full by DD every month then you won't be tempted to spend more than you earn and spiral downwards to that credit card hell...
Oh and they don't advertise the fact that you can pay in full by DD every month but they will set this up if you insist.
Good luck |
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