Credit card advice`

SuperHan

Paddyshepherd wrote: »

I don't understand what you're saying. How am I paying 15? They take 10 from me each month and I get 5 back from my credit card. To me 10-5 is 5.

Regardless, this has nothing to do with my original query.

As it stands, your account is minus 10 plus 5 (so you pay £5 for the account).

If you had a standard reward account, your account would be plus 5 (for current account) and plus £5 for credit card (so total £10 reward).

The difference between not having the account (+£10) and having the account (-£5) is £15, so you are spending £15 on it, as without it, you would be £15 better off a month.

swaite53

Having learned myself from the extra credit card, I'd recommend opening up another savings account (or a pre-paid credit card?), and pay what you can afford into there (ie. minimum payment you would have expected on your new cc). After 9 months, spend what you've saved.

Paddyshepherd

SuperHan wrote: »

As it stands, your account is minus 10 plus 5 (so you pay £5 for the account).

If you had a standard reward account, your account would be plus 5 (for current account) and plus £5 for credit card (so total £10 reward).

The difference between not having the account (+£10) and having the account (-£5) is £15, so you are spending £15 on it, as without it, you would be £15 better off a month.

Okay, but then I don't get any of the insurance policies that I currently have and would have to get those elsewhere. Breakdown cover alone would cost me more than that alone.

grumbler

The point was that enen if you really needed all the benefits, you were paying £15 for what you could get for £10 elsewhere:

YorkshireBoy wrote: »

Interesting you've chosen to pay £15 a month for a bank account. Do you consider it value for money?

• Best Premier Current Accounts

http://www.nationwide.co.uk/products/current-accounts/flexplus/features-and-benefits

BTW, fully comprehensive breakdown cover costs as little as £41 p.a:

• Breakdown Cover

Do you really think that it would cost you £180 p.a.?

cakeforbrains

Anyway... no, two cards is fine on your credit report. Only you can decide if you are disciplined enough to take on credit. It sounds like you're pretty on top of things.

Remember, the only time to have savings and unsecured debt is when the debt has a lower interest rate than the savings.

Paddyshepherd

Grumbler, thanks for that. If that was the point being made it either wasn't made clearly or I misread what was being said. At the moment I am only paying £10 though so I will need to check if there's any differences in the levels of cover.

Cakeforbrains, thanks for the advice. I guess this is one of those cases whereby the interest on the debt would be 0% compared to whatever measly rate the banks are offering at present.

YorkshireBoy

Paddyshepherd wrote: »

If that was the point being made it either wasn't made clearly or I misread what was being said.

Since 5 other people understood (2 subsequent posters and the 3 who thanked my post), I think the latter.

Anyway, looks like you'll be saving/making money now so, whilst having "nothing to do with my original query", some additional benefit has been gained.