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

[WATFORD zero]

I’m a bit old fashioned earn and buy. I used to have £1k in cash at all times in my pocket in the days people would pay cash for work done.
Sadly those days have evaporated.

I always had a wad on me until fairly recently (3 or 4 years ago ?) but don't spend what you haven't earned always seemed quite simple to me

 

[South Stand Bonfire]

I always had a wad on me until fairly recently (3 or 4 years ago ?) but don't spend what you haven't earned always seemed quite simple to me

I won’t spend anything that I haven’t earned either, other than a mortgage.

I will however use a cc to my advantage to get as many rewards/cashback etc on my monthly purchases that I know I will be paying off each month anyway.

 

[Super Steve Earle]

I have a Rewards credit card which gives me about £10 pm in cash. I have an instant access savings account which I feed with my credit card spend, so they both show roughly the same balance debit/credit on my banking app which I check daily. Then I use the savings to pay off the card.

 

[Weststander]

Definitely set it up to pay in full - clear the balance!

This.

 

[Justice]

I always had a wad on me until fairly recently (3 or 4 years ago ?) but don't spend what you haven't earned always seemed quite simple to me

Covid ruined the cash business

 

[Justice]

I always had a wad on me until fairly recently (3 or 4 years ago ?) but don't spend what you haven't earned always seemed quite simple to me

It’s satisfying when you’ve saved up for something even if it’s took a while to get there.

 

[Justice]

My partner is in Canada right now. Caring for her mother who has had her stomach removed with cancer. If she called and she “I need you here, Mum is dying” I’d be on the first flight out. That flight may cost £3-£4k. I don’t have that in a draw, or in a current account available to book on a flight.

I do however have credit cards available with £30k of emergency money, so I can book that, take care of what’s important, and deal with money later.

Do you see?

Perfectly and I’m sorry to hear about your partners mother.
All I’m saying is how many people don’t have the control not to spend what they haven’t earned? Let’s face it if the world payed off the debt monthly it would be a useless product for the provider.

 

[LamieRobertson]

I won’t spend anything that I haven’t earned either, other than a mortgage.

I will however use a cc to my advantage to get as many rewards/cashback etc on my monthly purchases that I know I will be paying off each month anyway.

Yep….play the system to your advantage ….i love 0% balance transfers or purchases…..just stick spending in an interest bearing account until the offer is over …they get nothing out of me and I get the interest…suits me

 

[Clive Walker]

By far the best CC in the uk is the Amex plat cashback. Small fee and great rewards. I get about £400-£500 return each year in free dosh.

Card is accepted 99% of places and I use it for everything. I actually pay it back everyday rather than waiting till the end of the month. Habit more than anything else.

 

[Clive Walker]

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.

CC rewards loyalty. Your debit card doesn’t. Unless you like the shit they offer you.

 

[Clive Walker]

I have a direct debit to pay off the minimum in case I have a big bill and not enough in my current account - you don't want to pay off the full amount on the card, and then be hit with an unarranged overdraft with the fees and charges that involves.

However I always pay the card in full each month.

Somebody is making a fortune out of the interest charges.

Bank of England base rate = 4.5%

Credit card rate = 29.9%

Interestingly interest only makes up a small part of the overall profit for the 3 major card schemes.

By far the biggest money maker for them (70%) is interchange or discount rates. The 2-3% that they charge shops on each and every transaction.

Why do shops go for this? Because they know consumers prefer to use credit and will spend more on it if they are being rewarded for their loyalty. The loyalty is funded by the billions the scheme makes out of merchants. It’s the perfect business model.

 

[spence]

What card have you got ?

 

[HangletonGull]

What card have you got ?

Just a capital one normal card

 

[Herr Tubthumper]

Covid ruined the cash business

Do £50 still exist in the UK? They only seemed to exist to pay builders in cash; they were the only people I ever saw with them.

Conversely the only time I ever saw £5 notes was at northern away games.

 

[Uh_huh_him]

I seem to remember you should only ever use a credit card for online purchases.
I think there is more cover for online fraud, with a credit card than with a debit card.

 

[darkwolf666]

I love threads like this on NSC, where someone asks a seemingly innocuous question and some very vocal people come out with, what is after all good advice, but at the same time seems quite condescending and one dimensional.

I wonder how many people are keeping quiet, reading the replies in "shame" as they are not as financially virtuous?

 

[The Wookiee]

Use it.
Always pay all debts immediately and on time.
Don't run up any interest charges.
Don't miss any repayments.

Also DO NOT WITHDRAW CASH - interest is charged from the day you make the withdrawal regardless if you pay in full at the end of the month - it will also have a detrimental effect on your credit file

 

[Justice]

Do £50 still exist in the UK? They only seemed to exist to pay builders in cash; they were the only people I ever saw with them.

Conversely the only time I ever saw £5 notes was at northern away games.

We still have the £50 note the only place I get them now is if I manage to get a win at the Casino and I haven’t been there for an age. As a tradesman in the older days the customer regularly said do you prefer cash not anymore now it’s WhatsApp me your bank details

 

[The Optimist]

My partner is in Canada right now. Caring for her mother who has had her stomach removed with cancer. If she called and she “I need you here, Mum is dying” I’d be on the first flight out. That flight may cost £3-£4k. I don’t have that in a draw, or in a current account available to book on a flight.

I do however have credit cards available with £30k of emergency money, so I can book that, take care of what’s important, and deal with money later.

Do you see?

And if you do end up with a large amount of emergency spending on a credit card that’s going to take a while to clear have a look around for balance transfer offers. They charge a fee but are then interest free for anything between 9-24 months. Just have a plan in place to clear the debt by the end of the interest free period.

 

[dazzer6666]

By far the best CC in the uk is the Amex plat cashback. Small fee and great rewards. I get about £400-£500 return each year in free dosh.

Card is accepted 99% of places and I use it for everything. I actually pay it back everyday rather than waiting till the end of the month. Habit more than anything else.

With the Amex BA platinum I get a free companion voucher once a year - several years in a row now I’ve used this for a business class, long haul flight (to go with another, booked using avios earned by the same card). Effectively a freebie worth £6-8kpa depending on where we fly.