Hello, I'm trying to build up my credit rating, and saw the advice of picking up a credit card designed for this purpose.
Whilst applying for the Barclaycard Initial I saw something in the terms and conditions that I wasn't sure about, so I was hoping someone here could help.
"You'll need to make a minimum payment each month, which will be the highest of the following:
£5 (or the full outstanding balance if it's less than £5 ).
2.5% of the amount you owe us on your monthly statement
An amount equal to any interest, default fees or account maintenance fees that have been added to your account since your last statement, plus 1% of the remaining outstanding balance.
You must pay at least the minimum amount shown on your monthly statement. But you can pay more. If you only pay the minimum payment, it'll take you longer to pay off your balance and will cost you more. When you make a payment it will always go towards the balances that have the highest rate of interest first."
Does this mean if I don't use the card 1 month, I will still need to pay a £5 fee? Or I only pay £5 if there is an outstanding balance on the card.
Any help appreciated, thank you.