Credit Cards

[bitchstewie]

I haven't had a credit card for years as I just pay for stuff.

With interest rates now half-decent it makes sense to move some cash from the bank which pays sod all into an interest bearing account that pays a sensible rate.

If I do this there's a nagging concern that "something" might come up where even with an instant access savings account I can't get the funds transferred quickly enough so I had a quick check and I can get a credit card from my bank with around a £7K credit limit.

I don't really care about avios or rewards or anything like that so if I just wanted something for either daily purchases or expensive purchases where a credit card offers some protection or an unplanned expensive purchase is there much to be looking out for if the intention is it would always be paid off as soon as the bill lands?

All the comparison sites seem focused on people who need specific benefits like long 0% periods or rewards.

I just want something there that can be used like a debit card but gives a bit of time if the cash is in a savings account and a day away.

[Bluesgirl]

If you're paying off the bill by the due date, it doesn't really matter which card you go for then. I imagine you're more likely to get a higher credit limit with your own bank as they know you, rather than applying to another high st bank/building society who don't.

[cuprabob]

bhstewie said:

I just want something there that can be used like a debit card but gives a bit of time if the cash is in a savings account and a day away.

Although not as good as it used to be some offer cashback on all spending therefore it might worth checking some of those out. I have a Barclaycard Cashback card and put all my spending through it and pay off every.month. No fee and I get a few pounds cashback every month. Every little helps as someone once said

[bitchstewie]

Thanks both.

Anyone have anything to add or is this just confirming what I though which is for what I want to do they're all fine?

[ninepoint2]

cuprabob said:

bhstewie said:

I just want something there that can be used like a debit card but gives a bit of time if the cash is in a savings account and a day away.

Although not as good as it used to be some offer cashback on all spending therefore it might worth checking some of those out. I have a Barclaycard Cashback card and put all my spending through it and pay off every.month. No fee and I get a few pounds cashback every month. Every little helps as someone once said

Another vote for a cashback card we use our MBNA as an every day card as you would use a debit card and have direct debit set up to pay every month, as said it's not a huge amount of money, between £200 - £300 a year, but for very little effort (set up direct debit) it's free money, not sure MBNA still offer such a card though so probably worth searching for cash back cards, I believe Chase do one. (ETA Chase one is a debit card)

Edited by ninepoint2 on Wednesday 21st June 18:54

[davek_964]

Yep, I have similar with my Amex card.

I treat it pretty much like a debit card - as far as I'm concerned, when I buy something the money is gone, and it's paid in full each month. But the cashback is handy - although the % is small these days, it still adds up. Mine is paid annually - think it's actually due this month or next month - and is currently just over £300. As somebody else said : Nice free money

[RicksAlfas]

bhstewie said:

Thanks both.

Anyone have anything to add or is this just confirming what I though which is for what I want to do they're all fine?

[Catastrophic Poo]

davek_964 said:

Yep, I have similar with my Amex card.

I treat it pretty much like a debit card - as far as I'm concerned, when I buy something the money is gone, and it's paid in full each month. But the cashback is handy - although the % is small these days, it still adds up. Mine is paid annually - think it's actually due this month or next month - and is currently just over £300. As somebody else said : Nice free money

We do the same, change between gold/cash back/avios over the years.

[MaxFromage]

bhstewie said:

If I do this there's a nagging concern that "something" might come up where even with an instant access savings account I can't get the funds transferred quickly enough so I had a quick check and I can get a credit card from my bank with around a £7K credit limit.

Look at a Chip instant access account. It pays 4% and is instant both for deposits and withdrawals. By using the credit card as well, you can save 4% on the money sat on your credit card for free.

[Truckosaurus]

If you use an app to do your banking, then you might as well just get one from your current bank then it is easy to keep an eye on your spending and pay it off easily.

Otherwise you can link most big bank cards to another bank's app.

If you go abroad at all, then something like Halifax Clarity offers no fees or charges on foreign transactions etc.

[bitchstewie]

Sorted.

£9K limit and 10% APR.

Not that the APR should matter given my use case but it's remarkable how much difference there is between cards

[MajorMantra]

bhstewie said:

Sorted.

£9K limit and 10% APR.

Not that the APR should matter given my use case but it's remarkable how much difference there is between cards

APR really is totally irrelevant if you're using a card this way, ie paying off in full every month. Some Amex cards have astronomical rates for example but they're just the wrong choice for actual borrowing. (As is pretty much any card except a 0% one really – credit card borrowing is a mug's game for the most part.)

It's all about the right tool for the job. I have a Halifax Clarity for travel, an Amex for general spending (and cashback), and I've just got a new 0 percent (23 months) Barclaycard for a bit of 'stoozing':

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

[Baroque attacks]

Being lazy, what’s the current card of choice?

Our usual spend is around 3k (cleared monthly) with the odd occasional thing in the mid-teens (holidays etc).

Currently have an Amex but checking if there is better value elsewhere. Cashback is probably preferred


Cheers

[valiant]

Depends what you want to do with it. I like to travel so a card that's fee free for overseas charges is helpful, same with cash withdrawals overseas.

You might as well earn a little with it as well whether that's avios points or straight cashback.

[Hustle_]

If you care about your credit rating you should be aware that utilising more than 25% of your credit limit will impact your rating even if you clear it in full monthly. Get as high a credit limit as you can on your card and pay it down or limit spending through the month to keep it under 25%.

[MajorMantra]

Baroque attacks said:

Being lazy, what’s the current card of choice?

Our usual spend is around 3k (cleared monthly) with the odd occasional thing in the mid-teens (holidays etc).

Currently have an Amex but checking if there is better value elsewhere. Cashback is probably preferred


Cheers

Check Moneysavingexpert, they break down the best cards for different scenarios.

[Ham_and_Jam]

Hustle_ said:

If you care about your credit rating you should be aware that utilising more than 25% of your credit limit will impact your rating even if you clear it in full monthly. Get as high a credit limit as you can on your card and pay it down or limit spending through the month to keep it under 25%.

I’ve found under 50% never impacts my credit score.

The odd time Ive made a big purchase and it goes over 50% I get a few points reduction and a little note to say I’ve exceeded it.

For this reason I also requested an increase of my limit.

Having said all of that it really makes didly squat difference to my life. It’s just a game I play.

[bitchstewie]

I wonder how this works with banks?

i.e. I have my credit card with my bank.

If I have a credit card limit of £10K and a bank balance of £10K but I have my credit card set to automatically pay in full each month and I spend £5K on the credit card does that really impact my credit rating when you'd hope the bank can work out I'm simply using the card for the built-in protection rather than because I need to?

Are they joining the dots?

[Hustle_]

Well I’ve been doing exactly that since I first got a credit card with my bank, and if you believe Moneysupermarket’s credit score tool I have recently lost points for ‘using more than 25% of my credit limit’ which is a change from the usual. No change on Experian, although I don’t necessarily trust that one either as it has showed 999 for as long as I recall.

[Simpo Two]

I remember fondly the days when Capital One gave 1% cashback on everything, credited to your account each December. Nobody fretted over 'credit scores' then, they just got on with life.

No points, no gimmicks, no 3/4 of 5/8 of fk all, no need to transfer 5 DDs and half a frozen kipper every three weeks when there's a V in the month, just 1% cashback.

Jumpers for goalposts and all that!