Should I get a credit card?

robieelliott

Hi all.
My question is pretty much as the title says. I am under the impression that people who are good with their finances and are not in debt would benefit from doing all their spending on a credit card?
If someone could clear this up it would be much appreciated.

Thank you in advance

asparagus1968

well, it's not for everyone, and you (well,I! ) have to keep my willpower sometimes,but


I have a Santander cashback credit card, I only use it for petrol, pay the balance off in full each month and also earn cashback, so Santander are paying me to use their card,cool.


if I was REALLY savvy, I would actually use the card for all shopping, pay off in full every month and earn even more cashback.but I think I'd need to keep a spend diary alongside to keep track of it all.

eskbanker

There are a number of plus points in using a credit card for spending, including:

• access to Section 75 protection (see http://www.moneysavingexpert.com/shopping/section75-protect-your-purchases)
• benefit from cashback or other spend-related perks
• up to 56 days between purchase and payment
• building a longer term credit history should this be advantageous in the future (e.g. mortgage)

There are also downsides, such as the temptation to get into debt and start incurring costs, but if you're disciplined and have the funds to pay off in full as you go then these are far outweighed by the benefits!

Tixy

A benefit of doing all your spending on a credit card earning cashback/rewards (subject to being able to get a card that offers these perks).

Another benefit for doing all spending on cards can be to 'stooze' and earn interest on the money left in your bank account (that is if you can get a card with a 0% on purchases promotional rate and up to the limit you are offered).

But there are other benefits for doing some spending on credit cards including benefitting from the added purchase protection that it gives on larger purchases and the abiliy to delay payment for a month with no interest cost, or the ability to spread payments over a longer period but paying interest.

There are also downsides to doing all your spending on a credit card, or even some of your spending on a card.

Missko

Be cautious. You may earn a few quid in the beginning but it's hard to keep a track of your spending. The temptation is to spend MORE because you get 1% cashback or whatever. If you do get one, make sure you're 100% sure the direct debit is in place before you spend on it. ie make sure the statement says at the b


ottom £x will be taken by DD on (date).


I ended up £15k in debt on credit cards. Never thought that would happen to me. Thought I was too clever. The system usually wins!! ;-)


Good luck whatever you decide to do! (Don't do what I did and take your credit card when you go out drinking!!)

joedenise

asparagus1968 wrote: »

well, it's not for everyone, and you (well,I! ) have to keep my willpower sometimes,but


I have a Santander cashback credit card, I only use it for petrol, pay the balance off in full each month and also earn cashback, so Santander are paying me to use their card,cool.


if I was REALLY savvy, I would actually use the card for all shopping, pay off in full every month and earn even more cashback.but I think I'd need to keep a spend diary alongside to keep track of it all.

I use my CC for most of my shopping and when I get home I transfer the amount spent into a savings account then when the bill comes in I just transfer back from the savings account to pay off the bill - simples!

Denise

jackieblack

Missko wrote: »

Be cautious. You may earn a few quid in the beginning but it's hard to keep a track of your spending. The temptation is to spend MORE because you get 1% cashback or whatever.

Not necessarily.
When I got my first credit card I used to keep a small notebook to list all spending so I always knew exactly how much my statement was going to be. These days you could keep notes on your mobile phone and/or there are probably apps for that.
I never spend more just to get points/cashback. What's the point of having a budget if you don't stick to it?

[Deleted User]

I think getting a CC was the biggest financial mistake of my life.

I would NEVER have another one.

jackieblack

OP, the bottom line is - if you are self-disciplined about your spending, there's no problem.

d70cw6

jackieblack wrote: »

Not necessarily.
When I got my first credit card I used to keep a small notebook to list all spending so I always knew exactly how much my statement was going to be. These days you could keep notes on your mobile phone and/or there are probably apps for that.
I never spend more just to get points/cashback. What's the point of having a budget if you don't stick to it?

Im sure you can review your credit card activity online whenever youd want making the need for a notebook/apps pretty moot.

jackieblack

d70cw6 wrote: »

Im sure you can review your credit card activity online whenever youd want making the need for a notebook/apps pretty moot.

You can NOW (couldn't 25 years ago).
But I still like to keep my own record, partly to feel I'm in control of my spending and partly because transactions can take a few days to appear online