We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Cashback rewards?

124»

Comments

  • 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
    Phoenix72 Posts: 425 Forumite
    100 Posts Name Dropper
    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
    NoodleDoodleMan Posts: 3,802 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper
    edited 23 June at 6:08PM
    & 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.
    Chase for example, a top choice.


  • Nasqueron
    Nasqueron Posts: 9,922 Forumite
    Tenth Anniversary 1,000 Posts Photogenic Name Dropper
    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.  :D 
    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.

    Sam Vimes' Boots Theory of Socioeconomic Unfairness: 

    People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.

  • Money_and_Travel
    Money_and_Travel Posts: 83 Forumite
    10 Posts
    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
    Grumpy_chap Posts: 16,244 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper Combo Breaker

    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
    Nasqueron Posts: 9,922 Forumite
    Tenth Anniversary 1,000 Posts Photogenic Name Dropper
    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

    Sam Vimes' Boots Theory of Socioeconomic Unfairness: 

    People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.

Meet your Ambassadors

Categories

  • All Categories
  • 346.6K Banking & Borrowing
  • 251.4K Reduce Debt & Boost Income
  • 451.4K Spending & Discounts
  • 238.8K Work, Benefits & Business
  • 614.3K Mortgages, Homes & Bills
  • 174.8K Life & Family
  • 252.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.