How can I benefit from credit cards?

VeryMan

Hello!

My expenses are less than £700pcm. How can ccs benefit me? Is it better to buy a cc that will return me cash or buy a zero interest cc? Also, will I pay more (fees etc) if I pay with my CC? and will my CC be accepted EVERYWHERE?

thanks!

[Deleted User]

VeryMan wrote: »

Is it better to buy a cc that will return me cash or buy a zero interest cc?

Depends on your preference and needs. But you're unlikely to need to 'buy' one either way.

VeryMan wrote: »

will I pay more (fees etc) if I pay with my CC?

Occasionally.

VeryMan wrote: »

and will my CC be accepted EVERYWHERE?

No.

datlex

If you spend your £700 expenses on a cashback or rewards card you will get money back. You can also put aside the £700 for the month into savings to earn a little interest (won't be loads) Of course you don't know what card you will be able to get.
You might be as well to bank with TSB and take advantage of their 5% cashback on first £100 of contactless ( of course depends how you pay).

Linda32

Okay, first question, may I ask what makes you think you have to buy a credit card, or what is it that you mean by that?

It is possible to get a cashback credit card as a first credit card. My OH did. Although, from reading on these boards that is a rare thing. Cashback means that whatever you spend you get a percentage back as cash, usually once every 12 months.

Marcon

Read the sections on this website relating to choice of credit cards and then make a decision based on your needs. Or just stop trolling; your choice...

Browntoa

sounds like our old friend who used to ask "how to make French fries" again, been PPR'd in the past

Chelseafan237

benefits from credit cards, short term:

Interest free purchases
Cashback offers
Points and coupon offers (i.e club cards)

IMHO and the most important is the long term benefits:

Building your credit profile by repaying every month, this is done by only spending what you can afford to repay! This is essential to get right, if you use a Credit Card in the right way you (i.e only spend what you can afford to repay at the end of the month. You can build your credit profile which can help give you access to important lines of credit in your future. E.g getting a mortgage or a personal loan. If you can prove that you can comfortably manage a credit facility by spending on it and repaying regularly, you are half way towards demonstrating the right behaviour to pay back a larger commitment like a mortgage or a larger personal loan. This will also likely increase you credit limit on the card should you need to make larger purchases. But always stick tot he same rule, only spend what you can afford and repay it without generating interest.