Credit Cards - Do you use them?

[gkd_uk]

I don't use credit cards as my opinion is, they are a rip off.

What about you?

[Will]

Are you talking from a consumers persepctive or a buyers perspective? As a consumer you can get some good deals on cashback cards and points.

Will

[incognito]

Originally Posted by Will

As a consumer you can get some good deals on cashback cards and points.

Will

But all the cards that give you cash back, you have to pay for them in the first place and I don't quite belive you get money for nothing, they will make it back from you some how.

[James]

As long as you keep your account in order and pay off the balance every month you will win. Remember the credit card companies make money on every transaction that the trader has to pay for. American Express and Dinners Club are the highest, which is why many places don't accept Amex or Dinners Club. You need to be disciplined though.

J.

[Tony]

Some cards offer introductory offers of between 4-5% e.g. Capital One UK Credit Cards - View our Cashback Card. This is great for big purchases, just make sure you have the money to pay it off immediately. The other good tink is the additional consumer protection you get when you make a credit card purchase.

[temi]

I have two credit cards, the one I use most has a annual subscription of £140, you get 1% back on whatever you buy and you do not pay commission on international transaction (this is the main reason I have it)

[Tony]

I don't know what you mean Temi - what kind of transactions are you talking about? When I travelled a lot I used to have a Diners Club card as it gave me access to business class lounges at most airports the annual fee was abut the same. It was useless as a charge card as so few places accepted it.

Tony

[temi]

My car offer very similar benefits, business class lunges at airport etc etc (they are just not available at the terminal I want then cos I travel cheap), mine is a mastercard thought, so its widely accepted.

[Paul Carcone]

The comments on this site thus far make a lot of financial sense. Credit cards are an atrocious was of managing long term debt and should not be used as an overdraft facility unless some disaster has befallen you.

However, clearing your balance every month means that you pay no interest and the money, therefore stays in your account, earning/saving you interest until the bill is cleared.

Also, using your credit card in this way for ALL of your monthly expenses (instead of your debit card) allows you to see exactly how much discretionary spending you are doing every single month. It can be quite a shock and really helps you manage your spending as it is easy to see at a glance how much you have spent over and above your direct debits and standing orders.