Is it OK to use a credit card in the following way?

JoshyBoy_2

My disposable income is £500 give or take.

Each month I plan to pay my card off in full. Is it ok to spend on my credit card all month knowing I'll pay it off in full with my disposable income every month?

If not what's the best way to use a credit card?

Biggles

That is the best way to use a credit card.

19lottie82

Yes of course it is. Why do you want to do that though?

Are you getting loyalty points / rewards? Or are you just trying to build your credit rating?

If the latter, I THINK, you will get the same benefit from spending a small amount, like £50 a month, and paying it off in full every month.

19lottie82

Biggles wrote: »

That is the best way to use a credit card.

Not necessarily, it depends WHY you want to use it this way. (see post above)

Using it for your whole monthly spends leaves you open for financial miscalculations IMO.

JoshyBoy_2

Yeah to build up my credit rating!

19lottie82

JoshyBoy wrote: »

Yeah to build up my credit rating!

ah ok, so yeah, just spend £50 a month on it and pay it off every no need for your ENTIRE wage every month.

19lottie82

Also, if it suits you try getting a cheap SIM only phone contract. This can help build your credit rating.

And make sure you are on the electoral register at home.

warwicktiger

Biggles wrote: »

That is the best way to use a credit card.

Nearly!!

I use my Santander 1 2 3 Credit card that way and get 3% cashback from Tesco purchases, including Diesel!

Biggles

19lottie82 wrote: »

ah ok, so yeah, just spend £50 a month on it and pay it off every no need for your ENTIRE wage every month.

No, he just said he would pay it off using his disposable income, not that he would spend all his income on the card every month.

guesswho2000

19lottie82 wrote: »

Not necessarily, it depends WHY you want to use it this way. (see post above)

Using it for your whole monthly spends leaves you open for financial miscalculations IMO.

True, if you mismanage your finances.

There's plenty of us who wouldn't dream of using a debit card, other than to pay a credit card or withdraw cash.

There's the S75 protection if you're buying high value (>£100) items, cashback, points, airline miles, not to mention that, if your card is compromised for whatever reason, your bank account isn't being plundered by the culprit!

zagfles

19lottie82 wrote: »

Also, if it suits you try getting a cheap SIM only phone contract. This can help build your credit rating.

And make sure you are on the electoral register at home.

That's far more likely to lead to "miscalculations" than using a credit card