Putting all spending on credit card

bambilegs

Do you put all your spending on a credit card OR do you use your credit card/s as/when you need, ie a big or planned purchase?

Which camp are you in and why?

I’m thinking of doing the former but haven’t done so before. 

I also wondered if it causes any issues if you ever need to provide proof of your income and expenditure? Ie when buying etc.
Or do you simply provide proof of bank statements AND your credit card statements?

Thanks

artyboy

bambilegs said:

Do you put all your spending on a credit card OR do you use your credit card/s as/when you need, ie a big or planned purchase?

Which camp are you in and why?

I’m thinking of doing the former but haven’t done so before. 

I also wondered if it causes any issues if you ever need to provide proof of your income and expenditure? Ie when buying etc.
Or do you simply provide proof of bank statements AND your credit card statements?

Thanks

The former. For several decades. If you have the creditworthiness to get accepted for cards, and the discipline to pay them off each month, then there is free money to be had, and IMO it's a no-brainer.

I don't understand your last question though. If you already have the card, you have a limit that you can spend to, no retailer is going to start asking you for bank statements to prove you are 'good for it'!

MorningcoffeeIV

Use your credit card for everything unless fees apply.

Using your credit card makes no difference in proving your income to anyone. 

Tucosalamanca

Almost my entire spend goes through Tesco credit card, I do this to earn Clubcard points.
It gets paid every month, never had any issues.

bambilegs

Yes, it makes no different proving your income, I’m aware. I’m talking about expenditure. There are instances where you need to show your income and expenditure - the latter is what I’m referring to. This usually happens when you are buying/applying for a mortgage for example.

In those instances, would you show your bank account and your credit card statements 

MorningcoffeeIV

Your bank statement will show your expenditure as that's where you pay your credit card  from.

If the lender thinks you're wasting your money on nonsense, they may ask to see your credit card statements 

MikeJXE

I was always cash before Covid although i had a credit card, thats all I use now and clear it every month. i have not been in debt since paying off my mortgage 30 years ago. i have a saying, I have everything I need and nothing I don't. I have 2 sons who are constantly in debt as it's easy to borrow money, spend now and can't pay later,  thats not my way, 

bambilegs

MorningcoffeeIV said:

Your bank statement will show your expenditure as that's where you pay your credit card  from.

If the lender thinks you're wasting your money on nonsense, they may ask to see your credit card statements 

Gotcha, thanks 

blue.peter

I've been paying for pretty much everything by credit card for many years. I find that it makes my financial planning easier. It consolidates my spending, so that I only have to pay the credit card(s) off, and don't need to worry about how much to keep back. I've got the timing organised to make everything that little bit easier:

• around the 20th of each month, my credit card statements are produced;
• at the end of the month, my larger pension is paid;
• on the 9th of the next month, I receive my smaller pension;
• somewhere between 13th and 16th, I have to pay my credit cards off (they're paid in full by DD).

So, by the time I'm paid, I know exactly how much to put aside to pay the credit cards. I then only have to retain a small amount in my current account to pay for ad hoc spending (e.g., the barber who only takes cash). Anything over and above those requirements can go to savings immediately I receive it.

Reddleman79

Since lockdown I've used the credit card for more day to day purchases. As it's a Tesco one I earn Clubcard points. I pay off the full balance every month by direct debit. It saves carrying lots of cash around. Recently I have been using more cash, but my bank branch is closing in February so I will be spending more on the card again.

bambilegs

Reddleman79 said:

Since lockdown I've used the credit card for more day to day purchases. As it's a Tesco one I earn Clubcard points. I pay off the full balance every month by direct debit. It saves carrying lots of cash around. Recently I have been using more cash, but my bank branch is closing in February so I will be spending more on the card again.

Hello , interested as to what it was about lockdown that led you to make the switch to putting all spending on credit cards?