credit card queries

tech77

I'm thinking of getting a credit card.
I'm a bit confused about what apr (annual percentage rate) actually refers to.
Does it refer only to the rate of interest applied to unpaid/outstanding balances after the grace period (28 days etc) ends.

Or is it the rate applied to all transactions made with the CC before you actually get the bill (with a much higher default apr rate then applying on any outstanding/unpaid balances).

In other words if i make 100 euro worth of transactions in a given month and the apr is 18% (or 1.5% monthly) do i get a bill for 101.50 euro.
Or is it only 100 euro and the apr only kicks in after the grace period.

And if i don't use the CC for a given month i assume i pay nothing on it for that particular month.

Also what are the risks with using a CC on the internet:
If you only use it on padlocked/https pages and reputable sites can you assume full security of your CC details.
Is there any other way its security could be compromised.
The only other way i can think of is keylogger software which reads CC numbers from your pc.
If that did happen would you be liable for not having proper anti-malware software. Would the bank be sympathetic.
Lastly if a seller defaulted on a transaction is it a simple matter to do a chargeback or is substantial proof of non-receipt etc required first.

How Strange

tech77... I'm thinking of getting a credit card.
I'm a bit confused about what apr (annual percentage rate) actually refers to.
Does it refer only to the rate of interest applied to unpaid/outstanding balances after the grace period (28 days etc) ends.

Or is it the rate applied to all transactions made with the CC before you actually get the bill (with a much higher default apr rate then applying on any outstanding/unpaid balances).

In other words if i make 100 euro worth of transactions in a given month and the apr is 18% (or 1.5% monthly) do i get a bill for 101.50 euro.
Or is it only 100 euro and the apr only kicks in after the grace period.

My understanding is that you have 30 days interest free on purchases so if you buy something for €100 and clear your credit card balance within 30 days you are charged nothing. If you don't clear it within 30 days or only clear part of it then you are charged interest at the apr. Although having said that I am not a financial advisor or anything close to one.

And if i don't use the CC for a given month i assume i pay nothing on it for that particular month.

You pay nothing as long as there is a nil balance. If there is a balance then interest is applied every month. Also be aware that there is a charge for late payments (I think its €30 with AIB)

FYI, Halifax have a credit card with an apr of 9% (not exact) so definitely talk to them. Most of the banks are around 17-18%.

Re internet security - as long as you are buying from an established site with their own credit card security you will be fine. If in doubt don't use the site.

tech77

How Strange wrote:

My understanding is that you have 30 days interest free on purchases so if you buy something for €100 and clear your credit card balance within 30 days you are charged nothing. If you don't clear it within 30 days or only clear part of it then you are charged interest at the apr. Although having said that I am not a financial advisor or anything close to one.


You pay nothing as long as there is a nil balance. If there is a balance then interest is applied every month. Also be aware that there is a charge for late payments (I think its €30 with AIB)

FYI, Halifax have a credit card with an apr of 9% (not exact) so definitely talk to them. Most of the banks are around 17-18%.

Re internet security - as long as you are buying from an established site with their own credit card security you will be fine. If in doubt don't use the site.

Thanks.
So it's not like a debit card that has its own little charges on top of the charges for the transactions themselves.
In other words if you pay a CC off in time the only charges are for the transactions themselves, right. (e.g 100 euro of goods bought means 100 euro CC bill, nothing more).

Extra charges only occur if you don't pay it off within the prescribed period, is that right.

Also when you say 9% for Halifax does this mean 9% divided by 12 (or 0.75%) per month. Or is it just 9% a month. I'm still a bit unsure of this TBH.

And anyone know who is liable if a keylogger/other malware somehow harvested your CC details from your PC (I know it's unlikely but still..).
Would you be compensated for any fraudulent transactions made on the basis of this happening.

Thanks.

How Strange

In other words if you pay a CC off in time the only charges are for the transactions themselves, right. (e.g 100 euro of goods bought means 100 euro CC bill, nothing more).

Extra charges only occur if you don't pay it off within the prescribed period, is that right.

Yes, thats it. The majority of people (me included) never pay the credit card balance off in full and the banks make their money from us. They don't like people who use it sensibly because they make nothing.

Also when you say 9% for Halifax does this mean 9% divided by 12 (or 0.75%) per month. Or is it just 9% a month. I'm still a bit unsure of this TBH.

Its 9% apr so divide by 12. As far as I know, and I've done a bit of research, that is the best deal going at the moment.

Sorry, can't answer question re credit card fraud/on line transactions although IMO I'd say the chances of it happening from using a reputable website is very low.

tech77

Thanks for your help.