First time Credit Card?

SuperHan

Anthorn wrote: »

I will anticipate your objection to the above and contest the action which pervades MSE - to use savings instead of spending with a credit card which I personally regard as yet another fallacy: If we did that there would be nothing to fall back on in an emergency.

I have my credit card to fall back on in an emergency... I would rather only pay the interest in an emergency situation, than every month without fail.

The income extension point only works if you are spending more than you can afford. I buy everything I want on my credit card, I pay it off in full the next month, I put money into savings and then I have a bit left at the end. If I was putting more on my credit card, maybe I would spread the cost, but I don't buy what I can't afford. Saying that, I do have a number of finance agreements in place at the minute, for my bed, iPad, camera etc, so I do get your point about the benefits of spreading the cost, but these are all interest free.

And I'm not saying credit card debt is a bad debt, I'm saying it's an unnecessarily expensive debt.

I think I'm going to have to give up on this one, the benefits you point out just don't seem worth paying for. To me, there is just no benefit in having savings earning a tiny interest rate just so I can pay higher rates on my credit card. If I wanted to do that, I would go and get a loan and stick the money I lend in to an ISA, just in case of an emergency.

ricky_v

If you pay off a CC in full all the time I believe some companies might reject you simply because they cannot make much of a profit form you, rather than for a risk reason.

However I would certainly recommend paying off a interest charging credit card in full, as if you fail to do this then the interest is payable on the whole statement amount, It simply isn't worth paying interest to make you seem more profitable.

ricky_v

To the OP: Apply for a Capital One Classic Extra

http://www.moneysavingexpert.com/credit-cards/cashback-credit-cards#caponeclassic

£10 a year of free money plus 0.5% cashback on all purchases.

Set up a DD to pay off the full statement amount.

Anthorn

SuperHan wrote: »

I have my credit card to fall back on in an emergency... I would rather only pay the interest in an emergency situation, than every month without fail.

The income extension point only works if you are spending more than you can afford. I buy everything I want on my credit card, I pay it off in full the next month, I put money into savings and then I have a bit left at the end. If I was putting more on my credit card, maybe I would spread the cost, but I don't buy what I can't afford. Saying that, I do have a number of finance agreements in place at the minute, for my bed, iPad, camera etc, so I do get your point about the benefits of spreading the cost, but these are all interest free.

And I'm not saying credit card debt is a bad debt, I'm saying it's an unnecessarily expensive debt.

I think I'm going to have to give up on this one, the benefits you point out just don't seem worth paying for. To me, there is just no benefit in having savings earning a tiny interest rate just so I can pay higher rates on my credit card. If I wanted to do that, I would go and get a loan and stick the money I lend in to an ISA, just in case of an emergency.

Consider the situation that a person has an old-age pension and full-time job. Do they give up the full time job because in having the job they are paying tax on their pension which is taxable?

Let me state the hyperthetical £80 spend on a credit card again because I didn't set it out fully. Ok £80 spent with a card paid over 4 months at £20 per month. The remaining balance is the interest and fees which is then cleared with a further one or more payments and entered on my budget account as exactly that (Interest and Fees). So I can look at previous months and see exactly what interest I have paid.

Anyway it's probably sufficient to say that at the end of every month I have surplus income. That's why my way of using credit instead of being afraid of it and avoiding it is better. Bye bye from this thread.

bigadaj

Anthorn wrote: »

Consider the situation that a person has an old-age pension and full-time job. Do they give up the full time job because in having the job they are paying tax on their pension which is taxable?

Let me state the hyperthetical £80 spend on a credit card again because I didn't set it out fully. Ok £80 spent with a card paid over 4 months at £20 per month. The remaining balance is the interest and fees which is then cleared with a further one or more payments and entered on my budget account as exactly that (Interest and Fees). So I can look at previous months and see exactly what interest I have paid.

Anyway it's probably sufficient to say that at the end of every month I have surplus income. That's why my way of using credit instead of being afraid of it and avoiding it is better. Bye bye from this thread.

I've noticed your comments ona number of threads now and they are pretty consistently wrong, this and the dynamic currency conversion one for example.

Why is paying high interst rates a good thing ever? You may be financially stretched but that's no excuse for paying interst, personally I think you're in the wrong site or are just trolling, very bizarre.