To think always clearing a credit card is not typical?

[OneNattyCrab]

I tend to pay my credit card off in full each month so I never pay interest but it’s made me wonder how common that actually is. Given how many people carry credit card balances, it feels like always clearing it might not be the norm.

AIBU?

Mine is paid off in full every month. I use it for budgeting (can move the appropriate money around in time for the following month) and I get tesco clubcard points on mine

Just wondering if you clear your credit card every month why have a credit card?

Nope I don’t clear mine monthly. I do pay more than the minimum amount each month.

Because often car hire places only take credit cards, if you make purchases on it you get a lot of protection that isn’t offered on a debit card, it improves your credit score, and I get air miles for using it.

is that ok? Hope you’ll let me carry on using it!

Not sure why some pp are commenting that if you can pay it off each month you shouldn't have one, like those people are taking something off people who need one. Plenty of reasons to have a credit card that aren't to borrow massive amounts that you cant pay off.

For a few years I was so skint I lived on credit cards and was unable to clear it.

Now I am in a better position financially I usually clear it a couple of times a month via the app. I tend to use it as my main way of spending, rather than my debit card. So the money is there to cover it.

I know I should leave the money in my current account for as long as possible to benefit from maximum interest, but I get anxious if my credit card balance gets more than a few hundred pounds.

I get vouchers when I use mine. Ds uses his to accumulate avios points.
edit - also keep my money in my savings account until the bill is due.

I get cash back for mine. Also until fairly recently you only used to get consumer protection on things like tickets or household appliances/furniture on a credit card, not on debit cards. Some hotels and car hire companies only take credit cards as security.

Can't ever remember not paying off my credit card in full but it's convenient to use. You get protection [Section 75 of the Consumer Credit Act 1974 is a UK law providing legal protection for credit card purchases between £100 and £30,000. It makes the card provider jointly liable with the retailer if goods are faulty, not delivered, or the firm goes bust]. Also, loyalty points or cash back.

we use our credit card for food shopping and petrol. We get cash back for it and we pay it off at the end of the month.

ds uses his credit card for everything and pays it off at the end of the month too

Protection, points and the odd purchase that only accepts credit cards. My credit rating has improved since I started using a CC regularly also.

I only use it for points and payment protection when making big purchases

Always pay mine off. It's only used for large purchases or anything over £100 where I'm unsure about the business I'm buying from.
Ditto DHs credit card.

You don't have to need a credit card to use one, lots give rewards and protection on larger purchases. The very fact that half the people pay them off every month proves they don't need the actual credit element.

Cleared monthly here. I check the balance regularly to make sure we’re in budget!

We have an account that we each have a card on (actually in my name) and we put everything for the household on it - food, petrol, house purchases, holidays. It’s cleared in full by direct debit every month. This account earns Avios. I also have a card that is used for my personal spending, and this is paid off in full too. I’ve been in debt in the past, where I’ve only made minimum payment, but these days I’m thankfully solvent and very protective of my excellent credit score.

"It entirely depends on your income... If you have a decent one then you should not be using it/clearing it each month".

What piffle! Why ever not? Plenty of people, as shown on here, use a credit card like a charge card, doing their monthly spending on it and clearing the balance monthly. They do this for convenience, and extra consumer protection as many pps have explained. Also many cards give points which translate to cash and there are other perks and freebies that come with many credit cards. For example one type of Barclaycard(?) I believe gives free Apple TV to their customers. You have to have a higher income for that one I think. Then things like free access to airport lounges etc.

It is not hurting anybody, and the card companies are happy as they make money from the retailer every time their customers use their cards to pay. It's actually a very sensible way to manage your money. If you are fortunate enough to be able to do this.

I must say people are very judgy on here if anyone does things in a different way from themselves. People are also very smug about always paying it off, not realising that others may be in a different financial position to them.

Yes. With my MasterCard I get advance special offer London theatre tickets and with Amex priority booking for some concerts & a free goody bag/special area at certain Grand Prix

That’s the whole point in having a credit card surely? So you can buy things you can’t immediately afford & pay it up????

Same here.

Wow - I'm quite surprised to see I'm in the minority here! I currently have around £3000 on credit cards and my situation has been like this or worse for probably 10 years (I'm mid-30s). I've set myself a target to clear the debt (alongside a loan which I originally took out to buy a car, then ended up consolidating even more CC debt) in the next 18 months. I've been through some financial challenges - well essentially living beyond my means - but also factors such as having twins so 2 years of eye watering nursery bills, redundancy, having to reduce working hours due to mental health then studying. But currently around £400pm, so over 25% of my income , goes on repayments.

I only use mine for large purchases for protection and when abroad. I always pay it off in full.

Everyone seems to think MN skews higher income, so it makes sense that if half of credit card holders pay off in full every month the figure would be higher on here. I guess most people not having twins makes a difference too!

Cleared in full every month. I only have one to keep my credit history active

Not really. Mine is mainly for security and to cope with untoward events while travelling eg flight cancelled or delayed and need to stay in hotel accommodation unexpectedly one night. Car breaks down and needs towing somewhere. Credit cards are invaluable for that sort of thing. Also to make a big purchase like a bed or a sofa when I know I will get refunded if the company stuffs up. I never tend to buy anything if I don’t have the money for it already in my account though.