Credit card....use it or lose it?

FreddieFrugal

I've just applied and been successful in getting a Halifax Clarity card. I want it purely to use as a holiday money card. Paying for things and withdrawing cash abroad etc.

However using it this way I may very well go months/almost a year without touching it.

Does that matter? Is it fine to just let credit cards sit there, or is it a bit like how Pay As You Go phones (used to/still do) work and the number needs using every so often or it could be deactivated.

a&akay

One of my OH's Halifax cards was threatened with closure by letter if she didn't use by a date a few weeks into the future. She didn't need it as we slow stooze and it was duly closed. Better to use it for 1 small purchase a month, and set up a full balance DD if you're forgetful.

YorkshireBoy

I'd be using it every couple of months or so at the minimum.

Even if they didn't close the account they could reduce the credit limit, possibly rendering it pretty much useless!

FreddieFrugal

Thanks, I will do then if I remember. Just use it to buy something small every so often. I use a cashback card for most purchases that's why it would go unused otherwise.

Good advice about using DD, I set one up with the application. Just makes it all easier.

a&akay

Just thought that if you need to spread the payments then change the DD to minimum, with additional payments you can afford, before you go on your hols and back again once paid off. The forgetful bit doesn't help here

FreddieFrugal

a&akay wrote: »

Just thought that if you need to spread the payments then change the DD to minimum, with additional payments you can afford, before you go on your hols and back again once paid off. The forgetful bit doesn't help here

Thanks I always pay off in full though, and we're quite frugal anyway!
Just been accepted for an AmEx Platinum everyday cashback card so that'll be my main one now anyway.

Okydoky25

Ive held a halifax and Barclay credit card for years. I paid them both off in full over a year ago and not used them since and they are still active.

torbrex

I held a Nationwide Visa CC for using while on holiday abroad but the rules changed and they started to chage for using it in America so I stopped using it.
After about a year of no use, I got a letter from them telling me that if I did not use the card it would expire after a certain date and not be renewed even though the expiry date on the card still had a year to run.

I just phoned them up and cancelled the card straight away and moved my custom to Saga.

zagfles

I only ever use my Clarity abroad - though my trips are rarely more than 6 months apart.

The Clarity is the one card I don't use DD for - I want to be able control when I make payments to minimise cash interest. I'll pay off any cash advances made abroad as soon as I get home, but may wait till just before the due date before paying off purchases (while of course remembering the rule that you can't pay off cash advances in the current statement period before paying off the entire previous statement)

YorkshireBoy

IanRi wrote: »

Thanks I always pay off in full though, and we're quite frugal anyway!

If you'll be withdrawing cash you may not want to wait until the DD is collected, because that will increase the amount of interest charged...and mean a small residual interest charge the following month.

However, if you repay whilst abroad, or immediately on your return, the DD may still be taken if the statement has already been produced (you'd need to check their policy)...meaning you'll have a positive balance. Might be a problem if you don't want to have to use this card too often?


EDIT: Point already covered by zagfles above whilst I was typing.

FreddieFrugal

zagfles wrote: »

I only ever use my Clarity abroad - though my trips are rarely more than 6 months apart.

The Clarity is the one card I don't use DD for - I want to be able control when I make payments to minimise cash interest. I'll pay off any cash advances made abroad as soon as I get home, but may wait till just before the due date before paying off purchases (while of course remembering the rule that you can't pay off cash advances in the current statement period before paying off the entire previous statement)

That's true, I'll have a look into the ins and outs of that. Even paying interest at the end of the month it's a cheaper way of getting cash abroad than most other options. I'll have to wait and see if it's better to have convenience over the extra money saving or not.

Is the interest just charged on the actual amount of the cash withdrawal or is it charged upon the entire balance including any purchases?

E.g. If I withdraw £100 and pay on card £200 i'd be paying back on DD the £200 + £101 (with the interest) = £301

or would the entire £300 balance have interest charged on it.

I'm assuming it's the first option.