credit card for internet shopping?

catsonic

had a meeting with my bank manager today.

everything fine with my bank account.

but she said cause i do alot of internet shopping like ebay and stuff like that i should use a credit card.

i dont have a credit card i say. she said i should get one.

i will never buy anything over £50 on the internet! that is the amount i am willing to lose if ever a sale goes wrong so why do i need a credit card?

am i right in this?

Debt_Free_Chick

Yes, you're right - providing you can use Switch or another debit card. Most sites accept debit as well as credit cards.

Remember only to use secure sites - those that start https rather than http. And check the terms & conditions of your debit card to see what you have to do to get protection from the bank, in case you're "fleeced".

HTH

heathcote123

I'd say there is a big upside to getting a credit card.

Getting a credit card and paying it off 100% each month gives you a better credit rating and *interest free credit* on all your purchases for up to 60 days.

It also give you additional protection against fraud. It also warantees your purchases if the company involved goes belly-up.

thesealeyboy

I would have to disagree with heathcote123's opinion about the interest free for 60 days comment. I assume as you are currently paying for everything via a debit card then you can obviously get by well enough, sure if you were to stick some purchases on a credit card you would have them 'interest free' for 60 days, but then surely once those 60 days have elapsed you will have to pay then. Therefore you really are only going to postpone the payment, and you will only see the benfit for 1-2 months?

It's like an overdraft on a bank account, I have one and i've seen how banks use them to their advantage, once your in your overdraft it's very difficult to get back out of it unless you know you have some more moeny coming your way as a one off. You only really see the benefit once.

heathcote123

Its not like an overdraft at all.. its genuine interest free credit for 30-60 days. You simply set up a direct debit to clear your credit card in full every month. This is normal practise, its not a 'loophole'

Along with the extra protection, its really a bit of a "no-brainer", as long as it is used correctly. See the section on credit cards.

DaveK

NEVER USE A DEBIT CARD FOR INTERNET PURCHASES (unless you have to).

If your details get into the wrong hands YOU are the one that has to sort it out. I had this happen with my wife who thought she was shopping on Tesco's website, we had to ring the police and get a crime number, go into the bank and fill out a form, eventually we got the money back.

As you use ebay I'm sure you're using Paypal, there are a million different Paypal scams a day and if you fall for one (I've seen some pretty convincing ones) then you'll have money taken out of your bank account with a Debit Card.

If you've got a Credit Card you just ring the card issuer up and tell them, they then refund your account whilst THEY launch an investigation. Believe me I know someone who've had their mortgage go into arrears because of someone getting their Debit Card details, they were put under a lot of stress to sort it out.

Get a Credit Card and pay the outstanding balance off each month by direct debit. CC's are so easy to get these days plus if you get a card with cashback you get some money back (I get about £50 a year from this).

dougk_2

I agree with DaveK.
Use acredit card for buying off the internet you get better protection. Unlike a debit card the money doesn't come from your account straight away.
In addition it you choose a card that pays cashback (eg.Tescos, Morgan Stanley) you actually make money out of it - ok not much but if you spend say £500 a year then at 1% thats £5 or in Tesco case £10 of deals (they pay 0.5%).
By paying the full balance by Direct debit each month there is no real problem. Plus if your current account pays intrest you are making money whilst the money is in your account.

rchddap1

Credit card is definately safer. I use to use my debit card, but since reading this site I use my credit card online. It doesn't affect me too much as I have it setup to pay the full amount by direct debit each month. It also goes through to your credit rating, and helps if you apply for a mortgage or loan etc... (mortgage in my case) in the future.

I know getting a credit card is scary, but you just have to control your spending. If you do intend to pay it off every month set up a direct debit to do so. That way you can't let it get out of control. Another method to control it is to change your credit limit, so that your card won't let you go crazy spending.

DaveK

Yes I used to think credit cards were bad, scary things. But things have changed these days, I've got 3 of them. I've now got part of my mortgage on one credit card, knocking 12 months off my mortgage! I've also got 3k on another which I have in an ISA earning me £150 a year, plus a card with cashback for spending on a card!!!

If you're good with handling your money these things actually save you money these days

The_Dragon

DH and I now have a credit card (in my name) for Internet use (I am disabled and buy a lot of my things on-line), the reason we got it is because DH got his debit card details stolen and we are still fighting to get the money back from his bank!

So it could be worth considering but only if you think you will be good with it!:cool:

postingalwaysposting

i see both sides of the coin here however, i have always thought my debit card was safe. But now as i am debt free i tend to be looking on the grabbit/shop dont drop threads more ane it seems many of the major retailers now either have my bills debit card number of my spending debit card number. This is worrying :rolleyes:.

In a few months once the new store card i am soon to recive (just for the 0% deal) falls off my credit record (the search). I will apply for a new credit card i think. Just a very low balance ie £100 just so i can buy online and then transfer the cash between my bank and the credit card that day