Update 08/04/2020: Laura Ashley is in administration and is no longer accepting credit card applications.

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The Laura Ashley Credit Card can be used for day to day items, such as paying for meals at a restaurant, clothes and some people use them for luxuries, such as holidays. Credit cards can be a handy alternative to cash, as you can carry them around without stress, as you have greater protection and most places will accept credit cards as payments.

If you have an emergency, such as a vehicle breakdown, they are ideal for this purpose too. If you don’t have any savings, an emergency can be a complete disaster! The credit card can give you a bit of peace and mind that no matter what happens, you have it covered!

What is the Laura Ashley Credit Card?

Laura Ashleigh was a business that has roots from the 1950s and had grown to become a multinational business. In addition to various home products, Laura Ashleigh offered a credit card, supplied by NewDay Ltd, with zero interest for three months and an easy online application process.

Credit Card Tips

Throughout this article we will look in more detail at:

  • Some of the main reasons why the Laura Ashley Credit Card may not be the best choice
  • The benefits and downsides of having a credit card
  • Other options to consider, instead of a credit card
  • How you can manage your credit card, and ensure you have a good credit score

Ability to budget

When you leave education, you want to get independence and make a start on your career.

To be independent, your salary would need to be able to cover essential bills, such as your rent and council tax, as well as utilities. You may also have a car, so this is another cost to add onto your bill.

It may be tempting to just take out the Laura Ashley Credit Card and use it to cover some of these bills, but it’s important to remember that these bills come around every single month, so this isn’t something that will work on an ongoing basis.

account manager direct debit

What about overspending?

There is every chance that you could overspend with a credit card, including the Laura Ashley Credit Card. If you are likely to overspend, this could cause you to get into debt.

Your salary and the credit card balance

Credit cards can be one of the best ways to improve your credit score. The only way this works is if you spend a little, and clear off your balance when it becomes due each month. If you are able to do this, it’s a good option.

You are only able to do this effectively if your salary will allow you to pay off the bill each month without any hassle.

Don’t forget about the Laura Ashley Credit Card interest

If you cannot clear the full balance of your Laura Ashley Credit Card each month, you will need to pay interest, just as you would with any credit card.

What is Balance Transfer and How Does it Work?

Balance transfer among credit cards is fairly self-explanatory. It involves transferring the balance from one card onto another.

It can be an effective way to reduce the amount of money you actually owe towards your credit card. you can do this by transferring your balance from a credit card that has a high interest rate to a credit card that has a relatively lower interest rate.

In this way, you effectively decrease the amount of money you’ll actually have to pay back as the interest you owe will be lower.

That being said, you also have to keep in mind that some credit cards have balance transfer fees that you need to be aware of as well. Always take those fees into account when determining whether transferring your balance to a credit card that has a lower interest rate would actually be worth it or not.

How to ensure you minimise risks of getting into debt with the Laura Ashley Credit Card

In most cases, the reasons for getting the Laura Ashley Credit Card will be to help build up your credit score. Building your credit score can be a good way to get access to credit in the future, such as mortgages and loan. The only way to successfully build your credit score with a credit card is to manage it well.

Your credit score is a result of a range of factors, including how you have managed your credit in the past, and also whether or not you are registered on the voting register.

When you have a good credit score, you can get credit for big purchases, such as booking a holiday or purchasing a new car. You will need to be able to manage your credit card extremely well though, and be very careful with your spending habits.

There are some effective ways to manage your card, and reduce the likelihood of getting into debt.

  • Do not take out more than one credit card.
  • You need to pay off the balance of your Laura Ashley Credit Card every month, otherwise you will end up with interest payments.
  • Don’t take out a credit card just for the freebies!
  • You should not use all the available credit on your Laura Ashley Credit Card.

What other options you have instead of the Laura Ashley Credit Card

You may want to consider other options to a credit card.

Another option to consider is a ‘prepaid credit card’. With a prepaid credit card, you need to top up the card with funds, before you can use it. There is no chance of overspending.

Prepaid credit cards – what you need to know

Basically, prepaid cards have funds pre-loaded onto them. You put money onto the card, and you will be able to use it anywhere that accepts credit cards. You won’t be limited in where you use them, as most places accept prepaid cards.

Key facts about prepaid credit cards:

  • They are ideal if you have problems budgeting, and you don’t want to risk overspending
  • You can stick to a budget with a prepaid card
  • The cards are slim and light, so much easier to carry around than a stack of cash
  • It’s safer with a card, you have greater protection
  • You can track your money much easier than using cash

There is greater security with a prepaid card. If you lose your card or someone steals it, you can simply cancel it and they won’t be able to spend anything. If you lose cash, it’s gone!

Why you might choose a debit card

When you open a bank account, you also receive a debit card. The debit card will be linked up to your bank account, and just like the prepaid card, you can only spend the money you put onto your card. This gives you greater protection that a credit card.

Most places accept debit cards, so you are safe to use it on any purchases, both for products and services. If you don’t want to overspend, and you want to ensure you budget, it would be better to use a debit card than a credit card.

Building your credit score without a credit card

You don’t need a credit card to build up your credit score – there are other options! Although we live in a time where credit cards are widely used and accepted, it doesn’t mean you have any obligation to take one out. You can improve your credit score without one.

If you have bills in your own name, such as your mobile phone, gas and electricity, rent etc, you will be able to build up your credit score, just by ensuring you pay these on time. The longer you maintain the payments on your bills, the more your healthy credit record will build, alongside your credit score.

References

CONC 13.1 Application

CONC 2.1 Application

CONC 5.2A Creditworthiness assessment

About the author

Scott Nelson

Scott Nelson is a financial services expert, with over 10 years’ experience in the industry, including 6 years in FCA regulated companies. Read more
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