Best way to use a CREDIT CARD

eskbanker

Anthorn wrote: »

Eye of the beholder stuff. Personally, I use a credit card for what it is intended to be, to obtain instant short-term credit. I don't pay off the full balance every month because to me interest is something to control but not to avoid. If I don't want to pay interest or cannot afford to pay interest I use my debit card for things I can afford to buy. I never use a credit card for everyday spending such as food and fuel.

Anthorn wrote: »

I don't give two hoots if it's not very MSE. I use my credit cards the way I want to use them not the way others tell me how to use them: You see, I have a brain and I can think. As I said, it's "eye of the beholder".

OP - if you read back on similar previous threads involving this poster you'll soon see that they delight in posing as a contrarian who enjoys going against conventional wisdom (of paying off cards in full to avoid incurring interest payments). That's not to say that the majority are definitely right and this poster is wrong, and a bit of healthy debate is what this place is for, but ask the question 'should I pay off in full every month if I can' and observe the near unanimity of the answers!

Anthorn

eskbanker wrote: »

OP - if you read back on similar previous threads involving this poster you'll soon see that they delight in posing as a contrarian who enjoys going against conventional wisdom (of paying off cards in full to avoid incurring interest payments). That's not to say that the majority are definitely right and this poster is wrong, and a bit of healthy debate is what this place is for, but ask the question 'should I pay off in full every month if I can' and observe the near unanimity of the answers!

A personal attack is very bad form and probably something to be avoided.

I'm not being a contrarian as you call it at all. I'm being honest. Not everyone uses a credit card in the same way as is pointed out by the OP.

eskbanker

Anthorn wrote: »

A personal attack is very bad form and probably something to be avoided.

I'm not being a contrarian as you call it at all. I'm being honest. Not everyone uses a credit card in the same way as is pointed out by the OP.

Not a personal attack and not using contrarian as an insult - I have no reason to doubt that you put your money where your mouth is but am just observing that your views on repayment in full (as opposed to more generic 'use') differ from those of the majority on here, which is why you're usually picked up on it.

Anthorn

eskbanker wrote: »

Not a personal attack and not using contrarian as an insult - I have no reason to doubt that you put your money where your mouth is but am just observing that your views on repayment in full (as opposed to more generic 'use') differ from those of the majority on here, which is why you're usually picked up on it.

I'm fairly certain that if you care to look for it here on MSE forums you'll find that those who pay off their balace in full every month have their cards taken away or have their APR increased. The reason for that can only be that the bank is not making a profit from interest. So how is it that clearing the balance every month is the best advice? C.f. Lloyds Banking Group. Just one example of my standpoint from previous posts.

That is the best advice for those who want to avoid paying interest but not the best advice for those who want to keep their card!

Back to the discussion.

LuSiVe

Neither of those things have happened to me. They make plenty from their cut on my spending. Paying interest when you don't have to is stupid.

[Deleted User]

Anthorn wrote: »

I'm fairly certain that if you care to look for it here on MSE forums you'll find that those who pay off their balace in full every month have their cards taken away or have their APR increased.

I'm fairly certain that's not at all true.

concernedSaver

dranzer01 wrote: »

im an additional card holder on amex

not too sure if i can set up a direct debit...? (id have to call them)

In this case, the card won't even go in your credit file, since you're not the one ultimately responsible for paying the bill (the main cardholder is). So it doesn't matter how diligent your are with your spending.

The conventional wisdom you'll read elsewhere on MSE only applies to credit cards taken on you own name.

molerat

Anthorn wrote: »

I'm fairly certain that if you care to look for it here on MSE forums you'll find that those who pay off their balace in full every month have their cards taken away or have their APR increased. The reason for that can only be that the bank is not making a profit from interest. So how is it that clearing the balance every month is the best advice? C.f. Lloyds Banking Group. Just one example of my standpoint from previous posts.

That is the best advice for those who want to avoid paying interest but not the best advice for those who want to keep their card!

Back to the discussion.

I seem to remember the last time I paid interest on a credit card was around 1977, not a penny since then and I have never had a card taken off me or my credit limit decreased, the opposite is the reality. I keep applying for new cards and they keep giving them to me, asking for increased credit limits and get accepted even though my total credit limit is way in excess of my annual income.

eskbanker

Anthorn wrote: »

I'm fairly certain that if you care to look for it here on MSE forums you'll find that those who pay off their balace in full every month have their cards taken away or have their APR increased.

Please go ahead and find and present evidence of this to support your argument.

I (and I'm sure many others [edit: including molerat in previous post!]) am happy to confirm that I pay in full every month and have never had a card taken away or APR increased....

Anthorn

eskbanker wrote: »

Please go ahead and find and present evidence of this to support your argument.

I (and I'm sure many others [edit: including molerat in previous post!]) am happy to confirm that I pay in full every month and have never had a card taken away or APR increased....

Quite apart from numerous posts about the banks in Lloyds Banking Group and others closing credit cards and bank accounts without giving a reason, all you really need is a measure of common sense: Banks are in it for the profit and if they don't make a profit they are not going to provide the service. Or is it that you think banks provide services out of the goodness of their heart? I'm laughing now lol

Try this on for size: If an overdraft is never used and a bank account is used for free the offer of a credit card is more likely