Should I use credit card or 1% cash back debit card?

Jamesshaw

Hi! 

Just wondered if anyone had any advice.
I am a student, but previously I wa working so was able to get a British Airways AMEX credit card, and been using this for over a year for everyday purchases ensuring it gets paid off of course, in order to build my credit score.

However, the other day I signed up for the new Chase account because of the relatively good interest rate, and saw that I get 1% cash back on spending on this for a year. This reward is better than I get with the credit card.

Would it be a mistake to use the chase card for a year for the cash back instead of my AMEX credit card? Because I am worried I will miss out on the benefit to my credit sore of using the credit card responsibly?

Thanks very much!
James S

[Deleted User]

You don't have a credit score, just credit history.

Just use your credit card from time to time to keep it active. Use it especially where s75 may be useful.

MalMonroe

I agree with zx81. It doesn't have to be one or the other. You can use both. As long as you do remember to pay off the credit card in full every month. (Gosh, Martin has programmed me well!)

Your credit sore or score is of no consequence since nobody except you ever sees that. 

Brie

Are you paying to have the Amex?  It might be silly to keep a card that costs you to have in your wallet.  Then again if you have no real/steady income as a student you may not be able to get a replacement.

cymruchris

As long as you're not paying an annual fee for the Amex - put an item through the account monthly to keep it active, and paid in full - and then put your spend on the Chase card. You only need to use the Amex then if you need S75 protection for a large purchase. If you are paying an annual fee - see if they'll move you to a non-fee option. 

jbrassy

I have both Chase and Amex myself. For small purchases (below £100) I use Chase. For big purchases, I use Amex (or another credit card) for S75 protection. It's still useful to keep the Amex because the Chase cashback only lasts a year.

adamp87

I would say it depends on what you are buying and goals are.

I have both but regularly combine the Amex with Nectar by converting the points across and using it at certain places to maximise the returns. If it’s an expensive item too the credit card protection is a great addition.

But if you don’t really use Avios or nectar then it may not be what you are looking for. But I think it just depends on the situation. 

wiseonesomeofthetime

I have both cards and predominantly use my Chase card for the 1% cashback.

As doing so means that I will never achieve the £3,000 minimum for payment of AmEx cashback, I do not use my AmEx card, unless utilising one of their Offers.

Transactions that do not qualify for cashback through Chase, for example, car servicing, will be completed through my Barclaycard Rewards CC.

All bases covered