A credit card by Morgan Stanley Card, issued by Barclays Bank PLC.
Barclays Bank PLC is one of the world's leading credit card providers with 18.9 million customers worldwide. In addition to the Morgan Stanley Card, Barclays Bank PLC issues credit cards under a number of brands in the UK.
Morgan Stanley is not endorsed by or associated with the Good Finance Guide. All trademarks remain the property of their respective companies.
how interest is calculated
Depending on the credit card, interest is calculated either from the date of the transactions you make or from the statement date.
A credit card that charges interest from the transaction date may be worthwhile if you do not intend to pay off the balance at the end of the month and the interest rate offered is low. Holding the card may also entitle you to a particular benefit that outweighs the additional interest charges.
Credit cards which calculate interest from the statement date and only impose the interest if you do not settle the statement in full are preferable. In practice, this means you can get a maximum of 56 days interest free credit; the transaction can be up to 31 days before the statement and the card issuers usually allow a further 25 days for payment to be made.
credit limit
When your application for a credit card is accepted you will be told what credit limit you have been given. You can make purchases up to this credit limit. Trying to make further purchases once you have reached your limit will result in the transaction being refused.
sweeper deals
Some banks are now offering 'sweeper deals' meaning that credit card debt can be offset against any savings before interest is calculated.
Thus, if your savings are equal to or greater than your credit card debt you will pay no interest on your credit card at the end of the month. If your savings are less that your credit card debt you will still benefit as the interest charged will be calculated on you credit card balance less your savings balance.
As the interest charged for borrowing is greater that the interest gained through saving, you will be better off.
