using credit card as debit card advice?

pavlovs_dog

wanted to pick the brains of all you DFWs, seeing as some of you have such good control over your finances.

ive recently got a new credit card, which i am using as a debit card, in order to build up a credit rating. as i am a student, they have given me a measly limit of £250 to start me off, in order to prove that i am not a risk. i am confident that this will at least double, if not treble with time.

the plan is to use the card where possible to pay for the things that i would have normally had to pay for anyway (food, petrol, incidentals etc) and clear the balance in full each month. as it is a tescos clubcard credit card, this has the added perk of earning us a reward on the money we would be spending anyway.

what i want to know is how do those of you who do the same keep track of your spending? i am in the process of setting up online banking for the CC (already have it for all other accounts). i have just installed microsoft money on the pc, and will be downloading eagerlearners spreadsheet.

but what is best for keeping track of spending? a spending diary? manically hoarding receipts? paying off all sums at the end of the day via online banking?

all ideas and suggestions greatfully received :beer:

savvykaz

You could set up a standing order with your bank to pay off the full balance each month - this way you won't be tempted to just pay the minimum, soon reaching your limit and paying interest on the remaining unpaid balance

pavlovs_dog

i cant absolutely guaranteee i will spend the full balance each month - especially if they do eventually put my limit up.

and i have no temptation to just pay the minimum. ive never done this, ive always cleared every balance ive ever had in full and on time

Bossyboots

pavlovs_dog wrote:

i cant absolutely guaranteee i will spend the full balance each month - especially if they do eventually put my limit up.

and i have no temptation to just pay the minimum. ive never done this, ive always cleared every balance ive ever had in full and on time

No, what savvykaz meant was the full amount of your statement, not your full credit limit.

savvykaz

Exactly bossyboots!

kathfisch

The only way to know exactly what you've spent is to keep a spending diary - accounts can take a few days to update when you spend something, thereby giving you a false picture in the meantime.

Record what you spend and how you pay for it, keep running totals to make sure you don't go over your £250 and youll be fine! :T