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credit card query

  • 06-07-2017 8:17pm
    #1
    Peterk88
    Registered Users Posts: 40 ✭


    hi guys,

    just a question i have a credit card bill of 5000 for this month coming as id to pay for a funeral and dont have savings to pay off the credit card and currently have a mortgage aswell..if i pay 1000 each month will to pay it off will i be charged much interest on the click credit card to btw

    cheers guys


Comments

  • #2
    beechwood55
    Registered Users, Registered Users 2 Posts: 532 ✭✭✭beechwood55


    What is the APR on the credit card?


  • #3
    Peterk88
    Registered Users Posts: 40 ✭Peterk88


    beechwood55 wrote: »
    What is the APR on the credit card?

    its 13.8 percent i think off the top of my head could be lower


  • #4
    coylemj
    Registered Users, Registered Users 2 Posts: 25,479 ✭✭✭✭coylemj


    Peterk88 wrote: »
    its 13.8 percent i think off the top of my head could be lower

    That represents 1.083% per month.

    If you pay 1,000 per month, I calculate that you will owe just over 200 after five months so it won't be a crippling debt.

    But for this type of credit, it would make much more sense if you can cover it with a temporary overdraft facility from your bank. The interest will be lower but more importantly, it will be less damaging to your credit record. Tell the bank what it's for and they should approve it.

    If you run a debt of a few thousand for a few months on your credit card, it marks you out as a reckless spender and that looks bad on your credit record.

    The alternative is that you get an overdraft facility (of 5,000) on your current account and settle it after a few months, that makes you look like someone who had planned a brief period of extended credit and paid it off which looks good on your credit record.


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