Buying food shopping on a credit card to gain extra points

Flat_Eric

I have been thinking of getting a credit card with either Sainsbugs or Te$coids with the sole purpose of using the credit card in the relevant store or for home delivery to gain the extra loyalty points. Now whilst I like the idea of the extra points, I personally feel that any benefit gained in the extra points will be lost in the payment protection that will be paid (although I am sure I could say no to this if I wanted).

I also don't like the idea of buying food on a credit card - even if the intention is that I pay it off in full each and every month.

Do any other posters pay for their shopping this way? Would you recommend it ?

[Deleted User]

If you're paying it off in full eacfh month, it makes a lot of sense.

But as you say, probably not if you're intending to take out PPI.

norabatty_2

I have a credit card from Mr T - I use it for all grocery shopping, either with Mr T or elsewhere, and all my individual spends - I think I get about £40-£50 per year in vouchers for this, which isn't a lot considering how much I spend for work on petrol and expenses (I travel alot). I have it set up so that the full payment is taken every month by direct debit.

I think there are pages on this website which let you know which credit card to get depending on where you shop and how much you spend. I think the overall consensus is that you would be better off with a cashback credit card from the likes of AmEx or whatever, as it is cold hard cash that you can spend anywhere, not just with Mr T, and you will most likely get more money with another provider. I think Halifax have one where any month you spend more than £300 on their credit card, they give you £5, so £60 a year which would beat Mr T and also requires alot less spending. But there are lots of different options, so check them all out.

PPI is invariably a complete waste of money, by the way. It usually covers eventualities that others would cover. For example, if you are sick, alot of employers would give you sick pay. If you are only planning on using a credit card for groceries and paying it back in full each month, I wouldn't bother with PPI. I know others might have a different opinion on this, especially if they are risk averse, but in my opinion, it's a waste of money.

In general, I recommend using a credit card for grocery shopping. It's easier at the checkout, you can check how much you have spent online - as long as you have it set up to pay off in full each month!

jetplane

I have a rewards credit card and I buy everything on it each month, food, clothes, household items, petrol, toiletries, gifts etc. I have a bank account which gains interest (albeit very little at the moment). I don't pay PPI as I have income protection and so I leave the money in my account and pay the card off in full every month. I get interest and great reward vouchers. :j

But beware you have to be very disciplined to do this, one slip and you lose the advantage.

shop-to-drop

If you pay in full every month you don't pay any payment protection as it is only on outstanding balance. We have a Tesco card and use it for groceries, petrol etc at Tesco it's a little extra but not brilliant although spending in other stores is even less points gained. We stick with it out of laziness but there are probably better deals around for cash back etc. If you will spend points on tesco rewards eg Goldsmiths they are worth 3 x what they are worth in Tesco so much better. If you don't clear the balance in full each month forget it any interest charges will outweigh any gain in points.

opinions4u

shop-to-drop wrote: »

If you pay in full every month you don't pay any payment protection as it is only on outstanding balance.

Are you sure about that? You might not pay interest, but I reckon the insurance premium will still be charged based on the statement balance.

I pay for everything on a cashback credit card. Even my paper bill. I only use my debit card if the purchase has a credit card surcharge applied by the retailer (e.g. holiday, car purchase etc).

I clear the card balance in full every month.

I don't take PPI cover.

All good rules for operating a credit card.

Just don't buy "extra" things becasue you've got a credit card in your pocket.

You might as well have the cashback / points, so keep disciplined and do it.

MartinSpoon

Check this aticle on the main site. This approach doesnt require as much discipline as 'stoozing' but you do have to pay off in full each month to be sure of a net benefit. http://www.moneysavingexpert.com/cards/cashback-credit-cards

If you get the 0% tesco card, you could also consider stoozing:
http://www.moneysavingexpert.com/cards/stooze-cash-credit-cards

But as I say, it requires a lot of discipline!

shop-to-drop

opinions4u wrote: »

Are you sure about that? You might not pay interest, but I reckon the insurance premium will still be charged based on the statement balance.

I pay for everything on a cashback credit card. Even my paper bill. I only use my debit card if the purchase has a credit card surcharge applied by the retailer (e.g. holiday, car purchase etc).

I clear the card balance in full every month.

I don't take PPI cover.

All good rules for operating a credit card.

Just don't buy "extra" things becasue you've got a credit card in your pocket.

You might as well have the cashback / points, so keep disciplined and do it.

I'm not sure actually as it's a long time ago since I looked into it and have never taken it out as always clear balance. If you always clear balance each month there isn't any point in getting it is there?

[Deleted User]

PPI is added regardless of whether you pay in full or not.

Any

I think that you will find that lots of people pay all their groceries on cards just to gain the points or cash.
I also do that. I have Tesco for home spend and M&S for my own.
I got about £80 on my M&S last year and quite a few free diners at Pizza Express on my Tesco.
It's a no brainer (as long as you pay off in full and don't incurre interest. If you need to pay for food on credit per se you are in lots of trouble.)

caledonian_princess

Yup, I use my M&S card for everything, including clearing my Next account, and got £95 in vouchers last year. If you're using the card in M&S you can actually repay what you put on the card as part of the same transaction using either your debit card or cash. I don't bother doing that I just wait for the statement and clear it then.