A question about credit cards...

[AndyC_123]

Hi

This is going to sound like a stupid question to some (apologies), but I've never had anything to do with credit cards.

I run a business and we are offered a lot of credit cards with 1% cash back. We spend £800k-£1m on bills a month, so this could amount to a fair whack. Of course not everyone will take a card payment and others might charge for it, so will continue to bank transfer where required.

Does a credit card link to your existing account or is it a new bank account?

If I spend £1000 on the credit card, it will be a negative amount and then a payment will need to be made from somewhere to cover that? Does that happen automatically?

Is this a st idea?

Cheers

[AndyC_123]

Very helpful, thank you everyone.

The reward points from Amex - it's possible to get decent stuff? It's not like a carnival where you'll get a million tokens that wins you a pencil eraser?

There's a few places offering 1% cashback - presume the rewards are a better option as become personal and tax free?

If you hit the credit limit on a card, can an amount be paid off easily enough before it's due?

Thanks

[AndyC_123]

Never really fly anywhere or spend anything that's the problem

[AndyC_123]

Hi

So thought I would update this as it might be of interest to some.

Got an American Express gold business card late September/early October. Bit of a faff getting it sorted with credit limit etc but got there in the end.

Majority of our suppliers don't take any card payments (all bank transfers), but those that do, only about half take Amex. Probably 5 or 6 in total.

Still spend a bit with them, so up to about 100,000 points. But I don't think the points are worth as much as the 1% cashback that other cards offer - I calculate the value as about 0.5%? Combined with the fact that less people take Amex than other cards, I wonder if it's worth it.