To put all my spending on credit cards?

[BeCoralSeal]

I’ve been using credit cards for pretty much everything - groceries, bills, online shopping - just to rack up the rewards points and cashback. I pay it off in full each month but sometimes I wonder if it’s a smart move or if I’m just getting too comfortable with credit. Am I setting myself up for trouble or is this a good strategy for managing money?

I do this.

So long as you can afford to pay it off every month, and don’t overspend just because you can, I don’t see an issue.

It pays for 2x family holiday flights every year, which must save me £3-4k.

Interesting question!

I have just ordered a cashback credit card with the view to doing the same and paying it down weekly by transfer from my current account. I thought I would try it for a few months to see how it went. Usually I withdraw a set amount of cash weekly and pay by cash so it's a new approach for me.

If you pay it off every month OP what is worrying you exactly? Are you concerned you will spend more frivolously?

If you’re paying it off each month you’re fine. It’s a good strategy as it builds your credit score. You’re effectively using it a like a debit card except the money leaves your account in a single block.

As long as you can continue to pay it off every month and are not buying more than you would without using a credit card then it is one of the best ways to spend as earns rewards without costing you any money.

If you pay it off in full every month it's fine.

I pay mine off in full every couple of days using my banking app. I just prefer using the CC. More protections.

I've done this for years, paid off in full each month by automatic direct debit - so no concerns about it not being cleared.

As long as you aren't overspending because of it then it is just good money management.

I currently have a 0% purchases for 18m card, so I'm just paying off the minimum on that monthly and keeping what I'm spending in a high interest account. Much better returns than most cashback cards.

I do this and pay the full balance off each month. I don’t see it as a reliance on credit. I just find it efficient and use my currant account to pay for utilities, tax and things you can’t pay on the credit card.

I use it for everything i can and pay it off in full every month by direct debit. It gives me points, plus adds another layer of protection for big purchases.

I do this, as does my DH. So long as it’s paid off in full, you’re making money from points/cash back so why wouldn’t you?

I've actually just stopped doing this method and only put big purchases on my credit card. I used to put everything on it and pay it off. I'm definitely spending less since using my debit card for most things.

Everything I buy goes on my credit card and I clear it in full every month. I don’t even think of it as credit any more.

I put absolutely everything on my credit card as I earn Avios points and use these to buy flights. I even put school fees on there! Always pay it back in full each month.

I have a card that pays 2% cash back, and everything that can be charged goes on that card. It's fine if you can comfortably pay it off every month.

I so need to do this.
what’s the best card to do it with?

Nothing wrong with doing that if you pay it off in full. Quite sensible.

Just make sure you track your spending.

You need to use some comparison sites and see what the best rewards are. Some people like cash back, others like points to spend in certain stores and some people get air miles for flights etc.

Great thread I've learnt something

You’re paying it off and assume you’re only buying what you would have bought away? How is that “getting comfortable with credit”? The issue is people buying things they wouldn’t otherwise buy and can’t afford, then leaving them to gather interest….

I do that, I keep the money to pay it off aside in a savings account so that a) I’m making interest on that b) I’m actually only spending what I have, if I have to use next month’s payday to pay off this month’s credit card that would mean I wasn’t living to my means.

we rack up Avios points to fly business class.

I used to do it but don’t anymore. I think credit card companies have to make money out of someone and if it’s not me then it’s out of people who can’t afford to borrow really.

They make most of their money from transaction fees for businesses.