Cashback rewards?

Money_and_Travel

born_again said:

Money_and_Travel said:

As I understand it, debit cards are subject a fee/charge for overseas spending.

So are credit cards. Unless they are certain ones.

My card is one of the certain ones.

Phoenix72

Doing it that way is also not good for building a solid credit history.

A Chase debit card would do the exact same job for you.

NoodleDoodleMan

Money_and_Travel said:

born_again said:

& what do you think you get over a debit card for these purchases?

As I understand it, debit cards are subject a fee/charge for overseas spending.

Several don't.

https://www.moneysavingexpert.com/credit-cards/travel-credit-cards/

Chase for example, a top choice.

Nasqueron

Money_and_Travel said:

Just been in and she said it was OK if they put me in credit.

I explained that I pay things off straight away, and she commented that is the best way.

It's the best way for the customer, but I bet it's not the best way for the bank.   

Ironically it's actually the opposite - it's the best way for the bank, because they are not "loaning" you the money that is on your card as you are paying it immediately. It's actually the worst way for the customer because paying it in full at the due date every month gives you the maximum time to earn interest on the money by having it in your account longer.

Example:

You spend £1000 on card and get 0.25% cashback, you pay £1000 the next day after it clears. You earn nothing and your card appears to be unused when reported to credit agencies as the statement value is £0.

I spent £1000 on card and get 0.25% cashback. I have the £1000 in my Kroo account paying 4.35% interest until the day before my card is due when I transfer it into my main account and the DD gets taken. I earn up to 56 days interest on that £1000 and still costs me nothing in interest. It also shows it's being used and paid in full every month which gives me a good credit history.

Money_and_Travel

Surely the best situation for the bank, is that only pay part of the balance (or indeed only the minimum) each month, thereby paying the bank lots of interest?

Grumpy_chap

born_again said:

the whole point of a CC. The interest free period.

For a lot of people, if the CC is cleared in full each statement (or before) then the interest free period is moot as the money in the mean-time is in a non-interest bearing current account.

Nasqueron

Money_and_Travel said:

Surely the best situation for the bank, is that only pay part of the balance (or indeed only the minimum) each month, thereby paying the bank lots of interest?

Yes but that wasn't the scenario being discussed, you were talking about paying the card off as soon as you made a purchase, not using the card as designed and paying off the statement at the end of the month