[Finance] Just got my 1st credit card in over 15 years

[WATFORD zero]

So ive set it up to pay the min each of month should I change it to pay the full balance off each month as it’s a very low limit to start with and can easily cover it

Yes. The minimum payment each month is just a marketing ploy to take your money, don't fall for it. I really don't know else to say it.

PAY OFF THE CARD IN FULL EVERY MONTH AND IF YOU CAN'T (NO EXCUSES WHATSOEVER) DESTROY THE CARD.

It really is that simple

 

[dazzer6666]

I’ve got two, one gives me avios and one gives me Hilton points. We put pretty much all our spending on one or the other. Always, always clear the balance every month. Not doing so is ridiculously expensive

 

[newhaven seagull 85]

I’ve done that I’ve set it up to pay the min each month , should I up it to clear the balance?

pay off as Martin Lewis would say "IN FULL"

 

[jcdenton08]

Yes. The minimum payment each month is just a marketing ploy to take your money, don't fall for it. I really don't know else to say it.

PAY OFF THE CARD IN FULL EVERY MONTH AND IF YOU CAN'T (NO EXCUSES WHATSOEVER) DESTROY THE CARD.

It really is that simple

Strongly disagree.

 

[newhaven seagull 85]

Do not get in the trap of thinking it's Free money, pay off in full, do not accept Credit card companies putting up your limit, that's to make you spend more, been there done that! its not fun having to pay off credit card debt when your house is on the line.

 

[HangletonGull]

The starting limit is 200 so can easily cover it , so I’ve just changed it to pay full on the 1st of every month

 

[newhaven seagull 85]

Strongly disagree.

Why would you disagree?, getting into debt can cause so many issues, sleepless nights, worry, mental health issues and is probably one of the major reasons for attempted suicides.

 

[jcdenton08]

Why would you disagree?, getting into debt can cause so many issues, sleepless nights, worry, mental health issues and is probably one of the major reasons for attempted suicides.

I’m not suggesting getting into debt.

 

[Jack Straw]

I've not had one until now, and I'm not far off of 70 years old. We've booked car-hire in Spain for a summer holiday, and the named driver - me, has to pay by credit card. I still wouldn't have had one if it wasn't for this. I can't see me using it again, unless I have to.

 

[newhaven seagull 85]

I’m not suggesting getting into debt.

What are you suggesting then,. if you strongly disagree with " if you cant afford to pay off in full destroy the card"

 

[South Stand Bonfire]

Just arrived not had one for years and was too young too have it back then , anyway advice best way to use it too build up my credit score thanks

Treat all purchases that you make on it as if they are coming out of your current account. Record them and set aside the equivalent sums so that you pay off your monthly bill in full each month by setting up a direct debit from your current account.

 

[South Stand Bonfire]

I’ve done that I’ve set it up to pay the min each month , should I up it to clear the balance?

Yes, set it up to pay the full amount each month otherwise you will rack up expensive interest charges.

 

[South Stand Bonfire]

I've not had one until now, and I'm not far off of 70 years old. We've booked car-hire in Spain for a summer holiday, and the named driver - me, has to pay by credit card. I still wouldn't have had one if it wasn't for this. I can't see me using it again, unless I have to.

Can I suggest that you buy excess insurance cover for your car hire here in the uk before you go on holiday. You can get it for about £40 per year for European cover compared to the £100 or so the hire company will try and flog you. In my opinion the cover is essential as some car hire companies only make their money by flogging insurance or making up ”damage” to their cars at the end of the hire period. I’ve been there!

 

[WATFORD zero]

I’m not suggesting getting into debt.

Sorry, but if you are suggesting NOT paying off in full every month, you ARE suggesting getting into debt

 

[jcdenton08]

What are you suggesting then,. if you strongly disagree with " if you cant afford to pay off in full destroy the card"

The actual quote was “PAY OFF THE CARD IN FULL EVERY MONTH AND IF YOU CAN'T (NO EXCUSES WHATSOEVER) DESTROY THE CARD.”

A credit card is a useful ally, if treated as cash money. There are a multitude of benefits from using credit. Increased buyer protection (after all, it’s their money), security in legitimate emergencies, value added benefits and so on.

If one’s bank account was, let’s say, emptied by scammers. Or you were robbed by hostile people. Or you were on holiday and your bank card stopped working. Or the company you wish to do business with like a hotel or car rental company only accept credit cards. Or a family member died and you couldn’t afford to help cover the funeral in one go.

A blanket statement such as “cut it up” is wrong. I never use my credit cards but I know they are there if, say, my girlfriend’s mother dies and I need to book an emergency flight to Canada to support my partner and I don’t have £3k last second fare sitting in my current account.

I agree it shouldn’t be spent as if it’s yours, but understanding credit is important and blanket statements like that don’t help.

 

[South Stand Bonfire]

Strongly disagree.

I disagree to your disagreement!

 

[GT49er]

Just arrived not had one for years and was too young too have it back then , anyway advice best way to use it too build up my credit score thanks

Set up a direct debit to automatically pay the minimum payment required - if you make the payment promptly when the bill comes through, it's not activated, but if you do have a brain freeze and forget, you'll never get penalty charges, or black marks against your credit rating.
Never felt the need for one myself though.

Edit: Sorry, see that this has already been covered - so yes, DD for the minimum amount just in case, but pay it off in full every month anyway, if you can.

 

[Justice]

Don’t see the point tbh. If the ambition is to pay it off In full each month then why are you using it in the first place?
Yes they will keep upping your limit knowing one day the majority of people will use it and end up paying interest.

 

[Badger]

Like others have said, I use my credit card for almost all purchases and pay it off in FULL every month. I've had credit cards since I was 18 and I have never paid interest.

I shop around for a new credit card deal every couple of years, to take advantage of the bonus points you get as a new cardholder. I mainly go for travel credit cards and I've paid for a fair few flights, hotels or upgrades with points. Also, the car rental insurance is very handy when I'm in Europe, much better than the rip-off coverage the rental companies try and sell me.

I also claimed money back for a pair of running shoes which got stolen from my doorstep recently. FedEx refused to accept responsibility, despite making no effort to check if I was home (I was) by ringing the doorbell. It's useful to have the credit claim to fall back on.

 

[HangletonGull]

Set up a direct debit to automatically pay the minimum payment required - if you make the payment promptly when the bill comes through, it's not activated, but if you do have a brain freeze and forget, you'll never get penalty charges, or black marks against your credit rating.
Never felt the need for one myself though.

I need / wanted it to try and build my credit up also if needed as I don’t have an overdraft so it’s there if needed