Positive credit card stories?

[Bimgy85]

What do you use your CC for? When did you first get one?

Applying for my first one, I have a regular income, planning to use it for large purchases/when I'm stuck, holidays etc

What's it been handy for for you?

@Bluelady now it's called service charge 😁 Like on JustEat

Some credit cards will entice you with an interest free introductory period, but it's better to get into the habit of paying it off in full. Once you start spreading the cost you will incur interest. You can make payments whenever you like, as long as it's before the date specified on your statement. It's easy to lose track of credit card spending because it doesn't disappear from your bank as it does with a debit card. I use a spending app and record all my purchases so I can keep a running total of what I owe, and it doesn't come as a shock when the statement arrives.

First got one to help my credit score. Put my wedding dress on it, holiday payment... now don’t use them, just trying to pay them off.

@OftenHangry thanks, I plan to pay my balance in full each month, but I thought for example if you spend £300 you'll have to pay back 150/200. Is what you spend your full balance each month in your statement? So if I don't pay back 300 after spending 300 I'll already be in arrears?

Think of it as a loan. Because that's what it is. Just on a go.
They will tell you your minimum payment required with your statement. If you miss your minimum, it's not good. If you pay that you are fine, but you will be accumulating debt and interest.
It is a loan on a go.

You spend eg £500.

You have the option of paying the minimum amount by a certain date. You have to pay back the rest later, plus interest, so overall you pay more than £500. It's a way of spreading payments out, but they charge for lending you the money.

Or you can pay the full £500 off when you get your bill.

I have mine set up to be paid off in full by direct debit every month. If I needed to spread out paying for a big purchase I could change that and pay less.

@Bimgy85 there will be a minimum payment that you have to repay every month so you don't miss a payment and get charged. Will be a small percentage of the balance. Set up a direct debit for that if you're not intending to repay the full balance every month to make sure you don't accidentally forget. If you only make the minimum payment you'll be charged interest.

Say you spend £100 on 4 September and your statement date is the 15th of the month, your balance will be £100 if you don't spend anything else before 15 September. If you spend £100 on 24 September it will be on your statement dated 15 October.

if you spend 300£ your statement will tell you the minimum repayment.
you can pay more than that but if you pay less then you will be in arrears.
the left over money will (usually) incur interest payments.
so to avoid adding to your debt, pay in as big and as few installments as you can.

but again, if you have a 0% interest on purchases card then it might make sense to spread to repayment over a couple of months so you don't incur other fees, like overdraft fees.

and never draw cash with the credit card as that will mean (usually interest payments from the first day.
read the small print and brush up on percentage calculations to get the best deals.

Who did you get your card from?

I have a cashback one, so use it for all everyday spending- petrol, clothes, food shop. Anywhere I'd normally use a debit card. I gave the app on my phone so can keep track of the spending and pay it off weekly so I never get charged in interest. I've made £56 cashback this year and paid £0 interest.

I do also use it for large items and will soon be using it to buy a bathroom suite, but again, I'll pay that off asap.

Unless you have a 0% interest card, if you do not pay off the full amount you owe by the due date on your statement you will incur interest on the amount remaining.

I have set up a direct debit (you can do this through the credit card company) so that the full amount is automatically paid out every month from my bank account. I can do this because I always keep sufficient funds in my bank account to cover the direct debit, so it may not work for everyone. The advantages are that I don’t ever incur interest charges, and I don’t have to make an effort to remember that a payment is due - before I set up the direct debit, I would sometimes forget the payment was due and if you miss the payment date you not only incur interest but also get hit with a late payment charge.

I have a cashback card so I put a lot of my day to day spending on the card, as well as one-off items.

Isn’t it the case that if you don’t repay in full then you pay interest on the whole balance even if you’ve paid off say half?

If I don't pay back 300 after spending 300 I'll already be in arrears?

Exactly. There is one little loophole depending on your statement date. If you spend 200 before your statement date and 100 after it, you will only have to pay the 200 this time. The other 100 will appear on your next statement.

Don't ever use your credit card to get money out. You don't get any interest free period for cash.

Yes.

Have a look at moneysavingexpert.com for advice on which are the best deals.

X posted there with lots of others!

Oh and I don't know if all cards do it, but once I missed my payment due and it wanted the whole balance on the next one with no minimum payment option. Luckily it seems 1 missed payment didn't show on credit score, but still watch out.

Well managed credit card can be great. Badly managed leads to issues which can take long time to repair.

I don't think you should even consider a credit card until you learn how they work - you clearly don't have a clue.

You will pay interest on anything you spend but don't pay off at the end of the month.

I got a 0% for 24 month deal, I used it to pay for my car insurance in one go (so I saved money on the insurance compared to paying monthly), and then paid it off over a few months.
DH has one which has no charges when used abroad and a good exchange rate; we used it for our holiday in Iceland as they mostly use card payments there, and paid it off when we got home.

I have two, one that I use for almost everything and pay off every month . I get cash back and it's convenient. The second has a larger credit limit and I use it for larger purchases eg holidays, car insurance etc. I pay this one off too.

I do what others do and pay things like petrol food and then pay it all off the month after

What cashback cards are you all using?

@PiperPublickOccurrences no hun, that's not really how it works. Everyone starts somewhere. The first time someone gets a credit card they don't know the 'ins and outs' of every single bit about it you absolute tool 😂 people are entitled to ask as many questions as they like.

I have 0% interest for the first six months? So?