Credit Card or Debit Card

DollyB2906

I currently have a Tesco Credit Card with a large balance. Recently I have been using a Debit Card which gives 3% cash back of my utility bill. My spend is about £700 a month which I load the debit card with. Would I be better paying this money into my credit card (thereby paying of part of the old balance) and using the credit card for purchases instead of the debit card? Anyone any ideas?

JakeGreen

Tesco credit card gives 0.25% cashback on purchases outside of Tesco which you can multiply by 4 if you exchange the points for deals on the Clubcard website.

Do you mean you have the Santander 123 account?

Does your debit card give you the cashback or your current account?

What interest rate is the Tesco balance at?

DollyB2906

I get 3% or 5% cashback which comes off my Gas/Electric bill on purchases on the debit card. My Tesco is a credit card interest rate is 1.667% monthly

JakeGreen

DollyB2906 wrote: »

I get 3% or 5% cashback which comes off my Gas/Electric bill on purchases on the debit card. My Tesco is a credit card interest rate is 1.667% monthly

You should use any spare money you have to reduce the balance on your Tesco Credit card.

What bank and energy supplier are you with which offers this 3%, 5% cashback deal?

I get a 5% discount on my gas and electricity for paying by direct debit, but that has nothing to do with my debit card. Is that what you mean?

DollyB2906

Utility Warehouse, we use them for Gas,Electric, Broadband and phone. It's there cashback debit card get 5% on some purchases. Used it mainly for shopping in Sainsbury's if you spend £50 or over you get 3% cashback on your fuel for the following 2 weeks (allows you multi fill ups)

JakeGreen

That's great, I've never heard of Utility Warehouse. It sounds like you've got a really good deal!

The 5% cashback will beat most cashback credit cards so yes, pay off your Tesco credit card and only use it where you don't get any cashback with your debit card.