How do you use your credit card?

[Annoy]

I have a credit card and I tend to put all my wages except bills/direct debits from my current account on to my credit card on pay day. Then I solely use my credit card in the month. Paying for everything else... fuel, food etc.

Is this normal?

The only issue I have is that when I pay in to the credit card I haven’t actually paid the full credit off as I’m still trying to catch up from a car issue a few months ago, so this month e.g:

£3000 in debt.
£500will be added on pay day.
Approx £300-400 will be used.
£100 will be paid towards the debt.

Is this a totally random way of doing things?

Cheers!

We pay our cards off each month and use it for mainly everything which is not covered by direct debit or where we need cash.

Odd. Work Out what you can afford to pay off the debt. Pay that leave rest in bank account. Surely that'll do credit rating better too

I put most things on my AMEX and pay off in full every month, for the benefits that come with the card.

There seems to be a 50/50 ish split. Although those who use their C card for everyday spending do pay the who thing off and are not in debt at the end of the month.

I used to be like this but then I had car trouble that I couldn’t afford to pay for.

It’s 0% until Dec

I pay for everything I buy from my current account.

I keep the CC for car emergencies. I have some debt to pay off from when I separated from exH and used it to pay for heating and other utilities for about two years. I pay the CC bill monthly.

I put everything on my CC and automatically pay it off in full at the end of the month for the Tesco points. I get back £25-30 vouchers a quarter.

You're almost using it like a prepay card though OP. I personally don't see anything wrong with doing it your way - at least any spare cash automatically goes on your debt, but it is unusual.

You aren't saving yourself any money doing it your way though. The people doing all their spending and then paying it off in full are preventing interest charges. The way you're doing it will not save you Interest once you come off the 0% rate

Be wary of that. I had a PPI payout and used it to clear my credit card, thinking I would then keep the balance at zero with an emergency cushion.
The card company decided to reduce my limit.

If I used mine as you do yours I would have had no way of covering my monthly essential spends.

We use our cards for every transaction we can and then pay off in full at the end of the month.

@dementedpixie

You aren't saving yourself any money doing it your way though. The people doing all their spending and then paying it off in full are preventing interest charges. The way you're doing it will not save you Interest once you come off the 0% rate

It would reduce the overall interest bill a tiny bit though(if there was interest) as the oldest debt is paid first.

Free withdrawal of cash from ATMs abroad with no added fees
Just pay it off when return to home country

I use mine for online purchases and big purchases, I have about £800 debt on it at the moment sometimes I pay the balance off in full sometimes I don’t, I have to admit I don’t have debt for years and years just maybe for a couple of months! It does appear everyone so far who’s commenting doesn’t have CC debt so it’s probably just us two on mumsnet 🤣

I’ve got 5 at the moment.

2 are balance transfers at 0%, will be paid off before 0% ends. Were used for big purchases when we moved house and then had a surprise baby.

1 is used for all food shopping and purchases for DD, this is paid off in full every month. I mainly shop online so it’s far safer than debit card. We have a budget so it’s always controlled. DH has a card on this account so we both use it for the same thing.

1 is my personal card used for anything I buy, always paid in full. Never usually very much. My parking apps link to this one too.

I’ve then got a emergency one that’s rarely used but has a whopping credit limit. Last used for a horrendous vet bill (horse). It’s kept at home. Only used when desperate and the balance tarted to a 0% if needed.

What seems sensible to me is having a CC for big one off purchases and paying a fixed amount monthly and stay within the 0% period.

Id never do daily spending now as I have no discipline, its only if you know you will repay in full every month, or the debt adds up.

Not to sound preachy but I was where you are. Its good to assess and make a plan.

Also try and build a rainy day fund. Do a balance transfer in December but start paying it back now so you get a preferential deal i.e. longer 0%. I got to the point where I could not shift it all and had to take two cards with anyone I could and that got confusing and stressful.

My CC sits in a box upstairs, it's the oh my god the roof has fallen in emergency funds. It's got a £3k limit and is £8 in credit.

I save each month (not much £80) so car repairs or shoes for DS because he's broken 3 pairs in one week (true story) come from that little pot if I can get away with it.

I'm a lone parent on one income working full time.

Honestly you need to stop using your CC and work on paying it off. Out of debt out of danger as they say.

It sounds like you're overcomplicating it OP. Could you get another credit or debit card if you want to separate your day to day spending from your current account?

Keep going with the card that was used to pay for the car, try to pay off by December or plan to get another card. Pay off at least the minimum plus £1 to remove the minimum payments marker from your credit file.

Then use your other credit card as a spending account and pay off a credit card in full every month by direct debit (this is what we do as it earns cashback and provides protection for larger purchases).

If you don't want another credit card, or can't get one, get a Starling or Monzo account and transfer your money to that.

All my monthly spending goes on credit card. Then I pay it off in full every month.

I do similar to you, but that’s because I get Clubcard points for every £1 I spend so it’s worth doing as it doesn’t cost me anything.

Just be careful as if they ever lower your limit unexpectedly you might get caught out.

Just use mine to pay for holiday, concerts, festivals, sports events etc

I have 2 credit cards. One is 0% for 12 months so I transferred my outstanding debt to it with the aim of clearing it by the time the 0% period runs out. For that one I don't use it at all, just make a payment to it each month via direct debit and then throw anything spare I have at it.

The other card is an Amex which I got partly as it gives Nectar points and partly because my credit rating was rubbish from never using credit except for the debt on one credit card (that is now on the 0%).
For the Amex I use it for everything throughout the month that isn't a direct debit (food shopping / online orders / eating out / my MOT) but I pay it in full each month. It's increasing my credit rating but also provides extra protection on purchases.

I put all expenditure on a JL partnership card (up to £3000 a month) and pay off in full.
Get JL vouchers 3 times a year.

Sounds bizarre. My (now Ex) husband destroyed my credit rating. Took out loans and credit cards in my name without my knowledge. They defaulted as I didn't know about them. I'm desperately trying to improve my score.

I have 3 credit cards. One for all food we buy (including on day trips etc). One for petrol for the car. One for diesel for the horsebox. This way I know exactly how much I'm spending on these as they are irregular payments each month. I clear every credit card every month. My credit rating is considerably better than it was 6 months ago, and I'm much more aware if I'm spending more money on food compared to another month.

I use my credit card for everything and it comes straight out of my account when it's due to be paid. I don't see the point of putting money on it ready to spend

I use cash all the way
Once it’s gone it’s gone
Like everyone else I use cc online or big purchases and pay it off in full every month
I’d hate to lose cash