Putting all spending on credit card

Marchitiello

Everything outside of Utility bills and few selected other DD, is spent on a number of rewards/cashback credit cards and have done so for over 20 years. I always observe people at supermarket till queue or other similar circumstances that pay with a debit card and I cannot help but to think:  “what a waste, they could have made money from this transaction” 😂

Ebe_Scrooge

Marchitiello said:

I always observe people at supermarket till queue or other similar circumstances that pay with a debit card and I cannot help but to think:  “what a waste, they could have made money from this transaction” 😂

To be fair, you must remember that there are people out there with very poor credit histories who are largely unable to obtain a credit card.  Also, people who have perhaps suffered from horrible debt problems in the past and who don't want to put themselves in a position where they may be tempted to spend more than they can afford.  People who haven't been in debt but who are worried about getting into debt through lack of discipline or lack of financial awareness/education.  And people who "just don't like being in debt, or the very idea of borrowing money if they can avoid it".

I take your point completely, sensible use of a credit card can be very beneficial.  But there are plenty of perfectly valid reasons why people either can't or don't want to use a credit card.

Plus, some debit cards earn cashback now (I believe Chase is one???).  So it may very well be that for some people, the cashback they earn is more valuable to them than any points or airmiles or whatever they could get from a credit card.

artyboy

Marchitiello said:

Everything outside of Utility bills and few selected other DD, is spent on a number of rewards/cashback credit cards and have done so for over 20 years. I always observe people at supermarket till queue or other similar circumstances that pay with a debit card and I cannot help but to think:  “what a waste, they could have made money from this transaction” 😂

I was SO close to posting exactly the same thing about seeing debit cards being used instead of credit, but I know that many people seem to think that credit is some sort of dirty word. I live in a - let's say - fairly affluent area, and the number of premier/private debit cards I see being used ahead of me in the coffee queue, it does make me wonder if there are some less obvious rewards on those accounts!

Marchitiello

artyboy said:

Marchitiello said:

Everything outside of Utility bills and few selected other lDD, is spent on a number of rewards/cashback credit cards and have done so for over 20 years. I always observe people at supermarket till queue or other similar circumstances that pay with a debit card and I cannot help but to think:  “what a waste, they could have made money from this transaction” 😂

I was SO close to posting exactly the same thing about seeing debit cards being used instead of credit, but I know that many people seem to think that credit is some sort of dirty word. I live in a - let's say - fairly affluent area, and the number of premier/private debit cards I see being used ahead of me in the coffee queue, it does make me wonder if there are some less obvious rewards on those accounts!

artyboy said:

Marchitiello said:

Everything outside of Utility bills and few selected other DD, is spent on a number of rewards/cashback credit cards and have done so for over 20 years. I always observe people at supermarket till queue or other similar circumstances that pay with a debit card and I cannot help but to think:  “what a waste, they could have made money from this transaction” 😂

I was SO close to posting exactly the same thing about seeing debit cards being used instead of credit, but I know that many people seem to think that credit is some sort of dirty word. I live in a - let's say - fairly affluent area, and the number of premier/private debit cards I see being used ahead of me in the coffee queue, it does make me wonder if there are some less obvious rewards on those accounts!

To be fair I know is a bit of a cheeky thought and I know there are other reasons for not using a credit card, but still, it does feel that we are exploring the system more than the average person.

with regards to your observation about Premier/Private debit cards, some current accounts may have a reward scheme whereby you register your DC to be used with certain retailers to get some form of rewards, I know I have seen such offers from Santander and RBS, but I get more out of my Amexes so was never tempted.

Marchitiello

Ebe_Scrooge said:

Marchitiello said:

I always observe people at supermarket till queue or other similar circumstances that pay with a debit card and I cannot help but to think:  “what a waste, they could have made money from this transaction” 😂

To be fair, you must remember that there are people out there with very poor credit histories who are largely unable to obtain a credit card.  Also, people who have perhaps suffered from horrible debt problems in the past and who don't want to put themselves in a position where they may be tempted to spend more than they can afford.  People who haven't been in debt but who are worried about getting into debt through lack of discipline or lack of financial awareness/education.  And people who "just don't like being in debt, or the very idea of borrowing money if they can avoid it".

I take your point completely, sensible use of a credit card can be very beneficial.  But there are plenty of perfectly valid reasons why people either can't or don't want to use a credit card.

Plus, some debit cards earn cashback now (I believe Chase is one???).  So it may very well be that for some people, the cashback they earn is more valuable to them than any points or airmiles or whatever they could get from a credit card.

Indeed, as I said in my response above, but still, as for your mention of Chase, who are indeed giving 1% cashback for at least the first 12 months (I know they are looking at a more permanent offer as I had to fill two questionnaires about it) and has a quite easy to open account similarly to Starling or Monzo,  I still have cheeky thoughts when I see those purple or bright orange card being used and  I think: “Do they do not know about Chase ?” 🙈

Ebe_Scrooge

Marchitiello said:

I still have cheeky thoughts when I see those purple or bright orange card being used and  I think: “Do they do not know about Chase ?” 🙈

Forgive my ignorance, but what do you mean mean by "purple or bright orange card"

Marchitiello

Ebe_Scrooge said:

Marchitiello said:

I still have cheeky thoughts when I see those purple or bright orange card being used and  I think: “Do they do not know about Chase ?” 🙈

Forgive my ignorance, but what do you mean mean by "purple or bright orange card"

Starling & Monzo cards, I see them more and more often as the debit cards of choice being used.. similar App based accounts to Chase but give you no rewards.. apparently they may like more a budgeting feature and spend categorisation to actually getting something back for what you spend.

MrFrugalFever

I have started to use my BC with Avios CC within recent months as my preferred method of spend for absolutely everything possible to gain as many points as possible. I have also taken out a BA pre-paid Mastercard to then pay off the barclaycard to earn even more points (current bonus for opening is 1,500).

I will only spend what I can afford to repay back each month and if I can get something back for it then even better!!

horsewithnoname

I put the vast majority of my spending on my cash back credit cards. Seems rude not to!

EarthBoy

Marchitiello said:

Ebe_Scrooge said:

Marchitiello said:

I always observe people at supermarket till queue or other similar circumstances that pay with a debit card and I cannot help but to think:  “what a waste, they could have made money from this transaction” 😂

To be fair, you must remember that there are people out there with very poor credit histories who are largely unable to obtain a credit card.  Also, people who have perhaps suffered from horrible debt problems in the past and who don't want to put themselves in a position where they may be tempted to spend more than they can afford.  People who haven't been in debt but who are worried about getting into debt through lack of discipline or lack of financial awareness/education.  And people who "just don't like being in debt, or the very idea of borrowing money if they can avoid it".

I take your point completely, sensible use of a credit card can be very beneficial.  But there are plenty of perfectly valid reasons why people either can't or don't want to use a credit card.

Plus, some debit cards earn cashback now (I believe Chase is one???).  So it may very well be that for some people, the cashback they earn is more valuable to them than any points or airmiles or whatever they could get from a credit card.

I still have cheeky thoughts when I see those purple or bright orange card being used and  I think: “Do they do not know about Chase ?” 🙈

The Starting Debit Card is green, (officially "teal"). It changed from purple several years ago.