Best deal for "Pay in full each month" user?

rathernot

I'm concentrating on sorting out my finances.

By that I mean I have zero debts and a ton of money in the bank but I've been relatively lazy about making it work for me.

So I've been sorting out ISA's and High Interest savings accounts etc. and I thought I'd look at how feasible it would be to get a credit card that I can put almost everything on, keep the bulk of my money in the high interest account and simply make a transfer to my current account and pay it off in full each month interest free.

I currently have an Amex credit card but there's little incentive to use it and many places won't accept it).

Fuel is my biggest consistent spend, around £150-200 a month. Beyond that it's small amounts i.e. various subscriptions with larger amounts whenever I purchase an item.

I've read the article that suggests Capital One are the best deal. AFAIK my Credit Record is perfect, I certainly get sent enough junk mail offering credit cards, but I'm lucky in that I haven't needed them so it's been a while since I've had to apply for anything.

Suggestions appreciated.

YorkshireBoy

Capital One cashback is only 4% for the first 3 months (handy if you've some major purchases planned), then falls to 1%.

Check you meet the minimum (as defined by Capital One) credit rating criteria first before wasting an application.

Do Asda do a 2% on fuel discount with their card?

Read the cashback credit card article on the main site to see what other options are available, although slow-stoozing 0% on purchases cards will probably make you more money over the year (if you are organised and/or can be bothered).

rathernot

I don't trust Capital One tbh. They send me the most junk mail which makes me irrationally dislike them, and I know you only tend to read the bad experiences on forums but I'm afraid I don't want the hassle of applying only to be sent something different/useless for the sakes of 1% a month.

With regards to fuel, because of the car I don't use the Supermarket stuff so wouldn't want to be tied to having to use a specific brand of fuel for cashback (unless it was Shell).

Looking around I'm starting to think the cash back is inconsequential unless I want to spend lots of time switching from one deal to the other.

CopperPlate_2

Egg Money is decent enough. You can pre-load it each month, which will earn 4% gross interest p/a, manage it all online, you get the various protections of buying online and having delivery insurance of sorts, and you get 1% cashback up to a max of £200 per year. On top of that you get 'instant' cashback discounts when you use certain retailers and go via the Egg website (usually discounted straight off your account as a 'credit'). Worth looking at. It also helps me manage my budgets each month - pre load and you can see what you've got left, halfway, three quarters of the way, etc. through the month. Oh, you also get weekly balance statements texted to your mobile.

HTH

rathernot

Unless I've misunderstood how Egg Money works, then thanks but it's not what I'm looking for - I don't want to have to think in advance how much of my own money I'm likely to want to spend.

The intention is to just substitute my debit/amex cards for a credit card and pay that off in full each month whilst my cash spends most of its time in Icesave making me money.

YorkshireBoy

rathernot wrote: »

Unless I've misunderstood...

You may have. CopperPlate was highlighting some additional benefits (to some people) of the Egg Money card.

I don't want to have to think in advance how much of my own money I'm likely to want to spend.

Pre-loading the card is optional. Using it as a standard credit card will earn you 1% cashback on all your purchases. You can then settle in full each month.

The intention is to just substitute my debit/amex cards for a credit card and pay that off in full each month whilst my cash spends most of its time in Icesave making me money.

The best you're going to get, excluding intro offers, on cashback is 1-2%.

Slow-stoozing, ie using a 0% on purchases card and making only the minimum payments each month whilst leaving 98% of what you've spent each month in your Icesave account, will make you 6.2% gross AER.

You will have to put a bit more admin time into the slow-stoozing option (ie switching cards every 9/12 months or so), but if you want to maximise your earnings then this is the one to go for...otherwise, as I said earlier, simply find and use the best cashback card.

riad_2

If you're using the card mainly for fuel purchases and paying in full every month, I would recommend the Barclaycard Platinum Cashback Card which pays 2% cashback on fuel and groceries!

Failing that... I think Abbey are doing a 5% cashback on fuel/groceries card but it's only for the first £1000 of spend so max you can make is £50 before having to dump it!

I think the Citi Shell card which is launching soon will be 3% cashback for Shell fuel (with 1% cashback for all other purchases)... looking forward to this card becoming available!!!:cool:

rathernot

YorkshireBoy wrote: »

You may have. CopperPlate was highlighting some additional benefits (to some people) of the Egg Money card.

My apologies to CopperPlate, had a more thorough read of how it works and as you say it's a traditional credit card with the pre-loading as "control" feature.

Slow-stoozing, ie using a 0% on purchases card and making only the minimum payments each month whilst leaving 98% of what you've spent each month in your Icesave account, will make you 6.2% gross AER.

I'm just reading that forum, I can see how the system works but I don't know if I'd feel comfortable seeing the balance mounting up any longer than a month, even if the money's in the bank to cover it it's just a personal/moral thing I guess.

I'm quite keen on the Citi Shell card that's due out "in the autumn" as 3% off Shell fuel is not to be sniffed at.

simongregson

The shell card is listed on the shell website now https://www.shell.co.uk

rathernot

simongregson wrote: »

The shell card is listed on the shell website now https://www.shell.co.uk

Though not available yet unfortunately.

So have I missed something obvious here, or is it basically a case of:

Stick my money in Icesave and leave enough in my current account to get by.
Get a 12 months 0% on new purchases credit card.
Put everything I buy on it.
Make the minimum payments each month (does this adversely affect my credit rating?)
Pay it off after 12 months or whenever I near my credit limit?
Cancel and change card if required?

Seems an easy way to earn 6.2% on money I'm spending?!

CopperPlate_2

It's also limited to the first £10,000 of spend per year on all purchases other than fuel at Shell, which is limited to the first £5000 of spend on Shell fuel. So 1% of £10,000 (£100) and 3% of £5,000 spent on Shell fuel. So a total of £250 in a year is credited back to your account on a month by month earned basis.