Credit card fees?

Jay1_2

I have a Barclaycard and want to get a more ethical card. Ideally I'd like a reward card but I'm not eligible (I have a good credit rating but low income). As I don't have debt and won't get rewards the only advantage of a credit card over a debit card is the insurance - and I hardly ever spend over £100.

Is there any other reason for me to have a credit card?
Will a credit card charge me fees if I only use it for very occasional large purchases and therefore don't use it X times a year? 

Brie

You don't need to spend £100 to get the insurance - even £1 charged on a card and the balance on your debit card will work - as long as the overall purchase is at least £100.  This is why people will use a CC to put a small deposit on a large item (even a car) and pay the rest by debit card or bank transfer.

Brie

And a CC is unlikely to charge you any fees for non use.  The only fees I've seen are where there might an an annual charge (or might be paid monthly) which some "premium" cards do or when you do a balance transfer or are late with a payment.  I've got one card that is only used for foreign travel so goes for months (more recently years!) without being used and there's nothing happened because of that.

CliveOfIndia

What do you mean by "ethical"?

That aside, there are advantages to a credit card.  Aside from the S75 protection, you'll often find that some hotels and car hire firms will insist on a credit card so that they can charge any damage/extras to it.

Most mainstream cards won't charge fees.  There are a few that do, usually in exchange for some perks (insurance of some sort, airport lounge access, that kind of thing).  But the majority are fee-free, and as long as you repay the statement in full every month, you won't be charged any interest.

If you don't use the card very often you may find your credit limit is reduced, but they won't charge a fee as such.

born_again

Jay1_2 said:

I have a Barclaycard and want to get a more ethical card. Ideally I'd like a reward card but I'm not eligible (I have a good credit rating but low income). As I don't have debt and won't get rewards the only advantage of a credit card over a debit card is the insurance - and I hardly ever spend over £100.

Is there any other reason for me to have a credit card?
Will a credit card charge me fees if I only use it for very occasional large purchases and therefore don't use it X times a year? 

I take it you mean S75. Which is not insurance.

https://www.moneysavingexpert.com/reclaim/section75-protect-your-purchases/

WillPS

The Co-operative Bank and Nationwide are your two mainstream "ethical" options.

Have a think about what you're actually trying to achieve tho - ethical current and savings accounts make (some) sense (to some) as they hold a balance. With a credit card, unless you break the T&Cs, the bank will never owe you a significant amount, so none of your funds are away being used for stuff you mightn't approve of (in fact you are the temporary beneficiary of others funds...).

lr1277

Regarding S75, the single item you are claiming for must cost between £100 and £30k. Say you bought flights for 4 people at £80 each, so a total of £320. The card company won't pay out on a S75 claim because each individual item was less that £100.

Also with S75, it is not insurance. It is where the supplier completely fails to supply the goods or service. In nearly all cases the card company will expect you to try and resolve with the supplier first.

The other thing to remember is that S75 is paid out of the card company's pocket, so they do throw some obstacles in your way to claining.

There is also chargeback (which is also available for debit cards) where the card company debits the disputed amount from the supplier's bank account. However the supplier can protest and the money gets taken off your card again. Ensure you try resolving with the supplier before asking for a chargeback.

Keep proof of correspondence/conversations with the supplier so you can show these to your card company.

eskbanker

lr1277 said:

Also with S75, it is not insurance. It is where the supplier completely fails to supply the goods or service.

Agree that it's not insurance, but it's not just about 'complete failure to supply', it applies to any breach of contract (or misrepresentation).

lr1277 said:

In nearly all cases the card company will expect you to try and resolve with the supplier first.

Just to be clear, there is no obligation to do this when holding the card company jointly liable, so if they 'expect' you to do this, it can be ignored:

It might be easier to first complain to the retailer in some instances – for example if you're looking for a repair or a replacement rather than a refund – but you don't have to.

https://www.moneysavingexpert.com/reclaim/section75-protect-your-purchases/#how

lr1277

eskbanker said:

lr1277 said:

Also with S75, it is not insurance. It is where the supplier completely fails to supply the goods or service.

Agree that it's not insurance, but it's not just about 'complete failure to supply', it applies to any breach of contract (or misrepresentation).

lr1277 said:

In nearly all cases the card company will expect you to try and resolve with the supplier first.

Just to be clear, there is no obligation to do this when holding the card company jointly liable, so if they 'expect' you to do this, it can be ignored:

It might be easier to first complain to the retailer in some instances – for example if you're looking for a repair or a replacement rather than a refund – but you don't have to.

https://www.moneysavingexpert.com/reclaim/section75-protect-your-purchases/#how

So, say a customer books a hotel room and is promised a sea view and pays by credit card. On arrival at the hotel they find they are given a room with a view of the town instead. Is that a breach of S75 by breach of contract or misrepresentation? Something to raise with the card company or the hotel?

eskbanker

lr1277 said:
So, say a customer books a hotel room and is promised a sea view and pays by credit card. On arrival at the hotel they find they are given a room with a view of the town instead. Is that a breach of S75 by breach of contract or misrepresentation? Something to raise with the card company or the hotel?

The most obvious response in that scenario is to ask the hotel to move the traveller to the type of room they'd paid for!

However, if a sea view was part of the contract and ultimately isn't provided then yes, that's a breach that can be pursued with either the hotel or the card company.

Caerful

Regardless of whether we pay fees/interest or not, I have believed in rewarding good behaviour, good treatment of employees, refusal to support weapons manufacturers/dealers and harmful to the environment practices and industry.  I'm shopping for such a credit card, having just moved by current account to Triodos.