Using a credit card

Forumgirl

Hello,

I have a Barclay gold card which I don't owe any money on (just for emergency use), anyway I was thinking of setting up a direct debit to pay off the whole amount each month and start using it for food shopping and petrol (only), so I know how much I would have left of my wages on monthly basis

I tend to have a spreadsheet that covers

Money in
Money out

and the remainder is mine, however it never is because I always have to keep thinking, I need to spend this on food and this on petrol.


Anyway I am a bit scared of using it, not sure I fully trust myself. I had wanted to get a charge card but I've looked over the net and can't seem to find one, other than amex and you have to pay a charge for that, where as my credit card seems free (if you pay it in full)


Actually does anyone know of a charge card?

CLAPTON

why not just use a debit card ?

on the matter of using a CC then depending upon your circumstances it can be very useful to build up a good credit rating. a good credit rating would be of benefit if you need to apply for a mortgage in the future

using the card as you described... set up DD for full amount, use it only for things you buy anyway, petrol etc will provide a good trail in your credit records

Forumgirl

Thank you, I have a good credit rating already, I am 34 had a mortgage for the last ten years hehe

The reason I didn't want to use a debit card as this comes out of my account straight away, I would rather think I had XXX amount to put towards the amount coming off bills for the following month and XXX is mine, rather than thinking ah should hold off buying that shopping as may come to more than I expected, if you get me?

CLAPTON

I don't really see what you are trying to achieve
with a charge card you have to pay in full each month; with a CC you can pay in full if you wish but don't have to.

if you selct the 'right' CC you can benefit from various promotions... my barclaycard gives 2% cashback on food and petrol, I don't have to do anything special just use it for my normal petrol (any station) and regular food shopping: other cards may suit you better depending upon where you shop and the type of things you buy.

Forumgirl

CLAPTON wrote: »

I don't really see what you are trying to achieve
with a charge card you have to pay in full each month; with a CC you can pay in full if you wish but don't have to.

if you selct the 'right' CC you can benefit from various promotions... my barclaycard gives 2% cashback on food and petrol, I don't have to do anything special just use it for my normal petrol (any station) and regular food shopping: other cards may suit you better depending upon where you shop and the type of things you buy.

That's it though, I have always been scared that I would not be able to control myself, so with a charge I have to pay back the balance, it's more of a deterrent. I would really only want it for the asda and the petrol station, everything else I would pay cash. I don't want to run up any debt.

CLAPTON

Forumgirl wrote: »

That's it though, I have always been scared that I would not be able to control myself, so with a charge I have to pay back the balance, it's more of a deterrent. I would really only want it for the asda and the petrol station, everything else I would pay cash. I don't want to run up any debt.

its a choice thing: you clearly can choose whether to or not.
as I travel a lot and don't like carrying cash, I find that CCs are invaluable but again that depends upon your personal circumstances.

all my many CCs have DD's for the full amount and I alwyas check on line to see everything is in order on a regular basis

Any

Forumgirl wrote: »

That's it though, I have always been scared that I would not be able to control myself, so with a charge I have to pay back the balance, it's more of a deterrent. I would really only want it for the asda and the petrol station, everything else I would pay cash. I don't want to run up any debt.

I really can't see how that would help you to track your spending... ??? how do you separate the money for asda and tesco and the rest for you?? You will still have to look at both accounts and compare the balance on card and the balance in account and how long till next wages...

OH and I have 2 accounts each - 1 own and 1 joint (not for everyone, but you could do the same with second currect account in your sole name).

The bills and food comes out of joint a/c - I am in charge of budget there. We transfer monies to there the moment we get paid - and the rest left in our own accounts is just for our own spend however we wish to spend it.

As mentioned before by Clapton though - CC is very good for your score etc. Also you can collect points and rewards on them... I collect Tesco points and M&S points... M&S gives me about £100 to spend at M&S every year and that is only for my own private purchases on the card during the year.

If you already have a mortgage and were disciplined with that, why don't you trust yourself with a card? But if you don't, then you are right to avoid it..

Forumgirl

I mean I could well be perfectly responsible with one, but I don't know, I guess if I just set up the DD for the whole amount then I would have no choice but to be.

I am perhaps not explaining myself well,

My monthly workings go like this

Money in £2k

Money out £1K


So therefore £1k to spend (or invest)

but it's never a straight £1K because I have to think possible £500 has to come off that for petrol and food


Whereas with a charge card I would be paying for it in arrears so I would have a statement

Money in 2k
Money out £1.5k


Leaving £500 to blow on what I want rather than think I must leave x amount back to ensure I have food all month, do you get me?

I just picked all those figures from mid air for the example.

I am forever thinking I better not commit to this or that in case there is not enough funs left to get shopping at the end of the month.

At any given time I will know exactly how much I have to spend out my wage.

CLAPTON

basically a CC with a DD for the full amount is exactly the same as having a charge card except that you can get cashback, tesco point etc.

so either neither will do or either will do.