Credit Card for Bank Transfers?

xdereksx

Hi everyone

I've moved to the UK from a developing country a couple of years ago but went around without a credit card here until now. Recently, however, I've faced a couple of incidents where not having a proper credit history in the country caused me some inconveniences.

So now I am thinking about getting myself a credit card. Here is my background as to what my typical expenses are and how would I want to use a credit card:

• No debt or mortgage in the UK.
• The only regular payments are the monthly rent + utilities.
• Naturally, there are some consumption expenses, but I try to keep these low and use Monzo for that. I do regular top-ups from my HSBC account to Monzo. Monzo helps me a lot to keep track of my spending.
• I also top-up cards from the supermarkets' chains (M&S, Sainsbury's), since I can do that at a discount.
• I travel abroad fairly often and for the last year relied solely on Monzo for foreign transactions, because of the good exchange rate and no exchange fees.
• Rent is the single largest item on my expenses list. Other expenses can be kept under GBP 300-500 per month. During holiday / festive periods they can grow, of course, but nothing extraordinary.

Based on the above here are my questions:

1. My ideal use for a credit card would be to have it replace my current salary debit card. So that the rent payments, Monzo and other rechargeable cards top-ups are made from the credit card. Is my understanding correct that such transactions are considered 'money transfers' here and commonly carry some charge/fee?
   
2. Apart from an occasional spike in spending, the only area of increased spending that I can contemplate/plan is the foreign travel. However, HSBC only has only one card that does not carry foreign exchange fee. But even that card comes with an annual fee which defies the whole purpose for me. Are there credit cards with good/manageable T&C that do not have charges for foreign currency transactions?

Excuse me in advance if my questions seem strange. The consumer credit market in my home country is materially different, and I am used to very different T&C.

gt94sss2

xdereksx wrote: »

1. My ideal use for a credit card would be to have it replace my current salary debit card. So that the rent payments, Monzo and other rechargeable cards top-ups are made from the credit card. Is my understanding correct that such transactions are considered 'money transfers' here and commonly carry some charge/fee?

If I was you, I would be using a credit card for simply buying things in shops and then paying off the card in full each month to build up your credit record.

Most places won't accept rent by credit card - are you sure you can pay by this method? Recharging supermarket cards may be a possibility assuming the retailer sees the top up transaction as a purchase and not a money transfer.

A money transfer is when you are transferring money to a bank account - and unless you have some form of offer is best avoided as it won't help really help with your credit record - and as you say usually comes with charges.

Are there credit cards with good/manageable T&C that do not have charges for foreign currency transactions?

Have a look at: https://www.moneysavingexpert.com/credit-cards/travel-credit-cards/

xdereksx

Thank you, this was my impression after doing some research. But I still wanted to hear someone's else opinion. This was helpful indeed

PRAISETHESUN

I'd avoid trying to move rent or utility payments to your credit card - very few places accept credit cards for rent, and utility companies usually have an administration fee for any payment that is not sent by direct debit. It might be worth looking into if you can top up your store cards using your credit card - but be aware some providers will see this as a money transfer or a cash advance, which comes with a whole raft of fees and interest. Otherwise it might be worth looking into getting a supermarket-branded credit card if you shop often at a single supermarket chain. Otherwise just make a few small purchases each month, and pay off the statement at the end of the month - you don't need to feed hundreds of pounds through your credit card each to be seen as managing credit responsibly.

As for good travel credit cards, there aren't that many on the market, but a few good ones are described here: https://www.moneysavingexpert.com/credit-cards/travel-credit-cards/