What should I buy with my credit card?

ally_wado

I have recently received my first credit card and have no bad or good credit history except a monthly phone contract and student loans which I am still receiving.

I got the credit card to get the cover when paying for a holiday.

I only ever buy things that I have the money saved up for already so I will be paying off any balance in full straight away.

I intend on building my credit rating and would like to know when and where I should and could use my credit card to pay for things? I would like to use it as much as possible without adding any cost.

Is there charges on all day-to-day purchases with credit cards?

I have a lloyds duo avios mastercard and am ex and my current account is also with lloyds.

Thanks for your time and any help would be much appreciated.

dzug1

Provided you pay the bills when due (for the full amount) then nearly all credit cards make no charge to the cardholder.

If you try to do fancy things like paying early you can run into trouble if you don't know exactly what you are doing.

ally_wado

dzug1 wrote: »

Provided you pay the bills when due (for the full amount) then nearly all credit cards make no charge to the cardholder.

If you try to do fancy things like paying early you can run into trouble if you don't know exactly what you are doing.

Is there not a surcharge or charge of some sort when using a credit card to say buy milk and bread?

I plan to simply pay off a balance when its due or as soon as possible.

The_Boss

dzug1 wrote: »

Provided you pay the bills when due (for the full amount) then nearly all credit cards make no charge to the cardholder.

If you try to do fancy things like paying early you can run into trouble if you don't know exactly what you are doing.

Yeah. The best approach would be to set up a direct debit for full payment as you don't want anything to go wrong with the payments. You may need to make the 'next' payment after setting it up manually as it takes up to a month to be set up

[Deleted User]

No, there is no interest charge when paying with credit cards so long as you pay the bill in full each month. The short answer to your question is use the cards to pay for EVERYTHING! (Obviously making sure that you have the money in your bank to cover it each month!)

Nowadays I very rarely pay for anything with cash/debit card, everything goes on a credit card and is paid in full at the end of the month. I find it actually helps me budget.

I note that you said:

"I only ever buy things that I have the money saved up for already so I will be paying off any balance in full straight away."

Do you mean that you'll spend on the card and then go straight home an pay it off? If so, don't. There is absolutely no need to do this and I believe I'm right in saying that this is actually worse than paying by DD as it can be reported to the Credit Reference Agencies as if you've not been using the card much. Just set up a direct debit to pay in full each month.

Oh, and for your card(s). Use the Amex one whenever possible as it gives much better avios return than the mastercard. Most places will accept the Amex, don't bother asking just stick it in the machine.

[Deleted User]

ally_wado wrote: »

Is there not a surcharge or charge of some sort when using a credit card to say buy milk and bread?

I plan to simply pay off a balance when its due or as soon as possible.

Some places may charge a surcharge but it's quite rare nowadays and they will always tell you in advance. Generally just small independent shops (news agents, green grocers, etc) and big nasty airlines (go figure!). I've paid on card for something costing about 99p in tesco before.

dzug1

ally_wado wrote: »

Is there not a surcharge or charge of some sort when using a credit card to say buy milk and bread?

I plan to simply pay off a balance when its due or as soon as possible.

Do not pay off 'as soon as possible' - pay when due.

If you pay too early then there is the risk that it will get accounted for in the wrong month and you'll land up with a non-payment fee or interest when nothing or the wrong amount is paid at around the due time.

st999

I've paid on card for something costing about 99p in tesco before.

I've been buying books and games for my Kindle and the last one I bought was 49p

ally_wado

Thanks a lot for the help guys, much appreciated.

I know there is a 3% charge to use a credit card on sites like easyjet and it tells you clearly, can i be totally one hundred % assured that there will be no 3% or any % added to things without being told about it? In shops, online etc.
Sorry for being a newbie pest but got to be sure when its your hard earned monies at stake.

Also when i said i pay it straight away, i mean i would pay before there was any interest added

marvin

Most stores will not charge you anything and if they do they have to tell you there is a charge.

I would look to making one or two small purchases (£5-£10 total per month) a month in major places, supermarkets, petrol station, train tickets (but not on the trainline.com as they charge) etc; this should do the trick.

Remember also that if you intend making a purchase of anything over £100 with cash use a credit card instead as it will give you section 75 protection. You still have the cash to pay off the bill when it comes.

UsetheFORCE

Any surcharges will be at the Point of Sale and so will clearly be shown to you on the till or receipt.