Best way to use a credit card?

jonnyb1978

I have 4 credit cards which I have not used for a few years. After gradually paying them off I have one left with a balance of £ 1000. Not the best credit rating due to lazy missed payments etc whereby two have stopped further transactions so pointless having anyway.
I am interested in the Santander 123 as this has been offered as guaranteed.

Today I rang to close the account on the 3 zero balance cards. 2 are processing to be closed and 1 offered a 0% balance transfer. Bonus! So once that goes through I will close the other one.
The idea of the 123 is for cashback and easy budgeting as budgeting everyday use with petrol, savings and a budget to decorate house is proving messy and time consuming. I want to use the card for petrol and everyday use so I dont have to keep withdrawing money from the bank. Want to use the card and pay off the balance each month no more than £400. Anything more im above budget. I plan to also keep £50 from my current account as a sort of petty cash for small things throughout the month.

Is this a sensible way of doing things? I swore never to use another card again but ive learnt my lesson to manage money properly now.

Maestro.

it doesn't have to be messy. Use a card (cashback/rewards if you can), for everything. Pay it off in full from your current account at the end of the month.

Just stay within the terms of the contract, that's the "best" way to use a card.

Deadbeat

jonnyb1978 wrote: »

I have 4 credit cards which I have not used for a few years. After gradually paying them off I have one left with a balance of £ 1000. Not the best credit rating due to lazy missed payments etc whereby two have stopped further transactions so pointless having anyway.
I am interested in the Santander 123 as this has been offered as guaranteed.

Today I rang to close the account on the 3 zero balance cards. 2 are processing to be closed and 1 offered a 0% balance transfer. Bonus! So once that goes through I will close the other one.
The idea of the 123 is for cashback and easy budgeting as budgeting everyday use with petrol, savings and a budget to decorate house is proving messy and time consuming. I want to use the card for petrol and everyday use so I dont have to keep withdrawing money from the bank. Want to use the card and pay off the balance each month no more than £400. Anything more im above budget. I plan to also keep £50 from my current account as a sort of petty cash for small things throughout the month.

Is this a sensible way of doing things? I swore never to use another card again but ive learnt my lesson to manage money properly now.

Sounds sensible as long as you set up a direct debit to pay off the entire statement balance every month. Using & repaying your card in this way will also help your credit file by showing regular borrowing and repayment, even if you don't pay interest.