Credit Card Choices and Calculators

Hi all, I'm looking for some advice/opinions re credit cards.

I want to swap from my present card (TSB Trustcard) for a better rate, I have a small balance to transfer but I am getting a bit confused with all the deals.

I want a simple no fuss card but I'm not sure whether to go for a low flat rate card or a card that offers 0% on balance transfers for a few months and then hikes the APR to 14%+

I've read that lower APRs don't always mean less interest, as it depends on when you are charged.

Does anyone know of a calculator online or that can be downloaded that can work the interest out based on different offers. If not I think there should be one because I would certainly buy it.

Best regards Lee

tia

darkan9el said:

I've read that lower APRs don't always mean less interest, as it depends on when you are charged.

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Where did you read that? That should not be the case. The APR should indicate the true cost of credit.

If you have a CC outstanding balance then you should consider transferring it to a 0% offer card if possible, clear it before the offer is up and then make sure to always clear your monthly CC bill before interest accrues. If you cannot do this then you probably have financial/budgeting/spending issues that you need to address to ensure that you live within your means and don't use a CC as a source of medium to long term credit.

If you are interested in seeing the calculation behind the figure since you are in the UK this might be of use - as ClubMan says the point of APR is to allow you to compare the cost of credit. Credit cards are a poor way of borrowing money except in the short term (i.e. before the next payment is due)

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Hi, thanks for the quick replies, I totally agree with you re: finance control, this is a card I actually seldom use, I've just moved house and was sorting out all the bank details etc. I'd overlooked this card as I tend to buy things i need cash or save up to get them. It was when i was sorting my finances out i noticed the DD going out, it was paying the minimum payment so didn't go down much, I'm going to pay half of it straight away, but want the other part to go to a 0% transfer so I can quickly pay the balance off and get rid of the card altogether. I wanted to understand how the interest is worked out. Numbers aren't my strong point so it takes a while to sink in, I'm also numerically dyslexic which doesn't help. I'll try and find the topic that referred to APR's not always being what they seem. Best regards Lee

Even though you are based in the UK some of the consumer guides on the [broken link removed] website might be of interest to you in relation to general personal finance issues. I presume that the UK FSA also publishes similar guides?