Does the card really matter?

office_2

I have a number of cards, which I normally use as a buffer to ensure I dont go overdrawn. 99% of the time I pay the balance off each month not incurring any interest.

It seems a simple question, but do the cards I have really matter in this instance. As it is the new year I wanted cancel some and just keep one (Halifax or Egg) and was just checking that it made no difference.

Thanks in advance.

johnny_c-l

Since you don't pay off the balance 1% of the time (granted, not much); it may be best to cancel the card with the highest interest rate.

If you paid the balance in full every month, then it wouldn't matter, but at least you should save a little money on the 1% of the time you don't clear the balance.

HTH

Mozette

What johnny_c-l said; if you are ever going to pay interest, you may as well pay as little as possible.

office_2

johnny_c-l wrote: »

Since you don't pay off the balance 1% of the time (granted, not much); it may be best to cancel the card with the highest interest rate.

If you paid the balance in full every month, then it wouldn't matter, but at least you should save a little money on the 1% of the time you don't clear the balance.

HTH

Sorry I thought that would be the answer but just wanted to check. Obvioulsy the lower the rate the better, with that I saw the Barclays Simplicity card at 6.4 (or something). It does not seem barclays seem to have a good reputation looking through a number of threads, should I stay clear.

Cheers

johnny_c-l

No harm in checking, office

Even if you did pay off the balance 100% of the time, it would probably be a good idea to keep the lower interest rate card, just in case of a change in circumstance preventing you from repaying in full.

Don't know much about Barclays, so can't help you on that one. Sure others will be along soon to help.

Happy New Year

YorkshireBoy

Which Egg card do you have?

If it's the Egg Visa, and if you've managed it well, then they may accept you for their Egg Money card. It has a typical rate of 7.9% APR (so cheap if you don't settle in full one month), and pays 1% cashback on all spending (so makes you money most months).

It would seem ideal for your needs.

CLAPTON

If you usually pay in full consider getting a cash back card for when you know you will pay in full and keep a second card with a low rate for when you think you will not pay in full.
if you use the card abroad consider one that doesn't charge foreign exchange surcharge like Nationwide.

markray007

Yep sensible advice above so wont repeat it. I have an egg money card which i use on a daily basis, thus earning me cashback every month. I usually put about 1000 per month on it (petrol / food / online shopping etc etc)and i have a default setting on the account which means I pay the full outstanding amount every month. Intereste free, convenient, good customer service, online management and cashback.....a winner for me!

HTH

Lavendyr

As above - if you pay off in full every month, you may as well get a cashback card and earn money for using it. I also have the Egg Money card which is brilliant not only for the 1% cashback on all purchases, but also because you can put a positive balance on it - which I do every month, thereby getting my "spending money" for the month on my card. They often have special instant cashback offers too - for instance currently you get an additional 2% cashback on Shell fuel, which I find very useful as a commuter!

office_2

Thanks everyone, I will check out the egg money card sounds interesting.

Thanks again all.

Indeed it looks like a good idea and althought I purchase petrol and food etc, I am unsure about the shift from my debit card to a credit card. It seems a simple enough concept (what I would spend on the debit card I now use the credit) but with the arival of a baby soon, it may be a little to risky changing just yet.

Again I appreciate the advice, my Halifax card is about 9.8% so I think I will stay with this one and ditch the egg card,

Cheers

office_2

Just looking at the egg money thing again, can this be used like a savings account? Could I choose to pay in money at any time to either save or like my current cards pay off any balance I may have.

Sorry for the questions, with the rate of 7.9 it looks like something I could use (as I do my existing cards). I am just unsure what the catch is, to me just looks like a 7.9% card.

I this correct?