Why do people spend on credit cards and pay off in full?

[toastedcat]

Just read a thread where someone mentioned this in passing and I wondered why you'd do all your spending on a CC that gets paid off every month?

Cashback, section 75 purchase protection, an additional layer of distance between my bank account and any fraudsters, better rates of exchange overseas, cash flow when using for work travel.

I'd never thought how useful it would be for cash flow for buying clothes online if you're going to have to return most of them, but that's a great idea.

Because I get paid monthly, so paying my CC bill monthly is helpful.
also the vouchers. And the insurance.

Better credit rating
Earns cash back
Better protection
Also I have money in lots of different accounts for different things, like kids, pets etc. Easier to spend all on one account and then transfer money in from different places at the end of the month.

Financial Protection
Cashback or points
Credit Score
Earning interest on money I haven't used for the month (money that hasn't come out of my account) until the date the bill is paid.
There have been times of my life when it has eased cash flow if I needed to buy something just before payday.

My brother does this for a) cashback and b) avios/companion vouchers. EVERYTHING goes on his credit card and is cleared in full every month and since they travel a lot the avios and voucher come in handy for flights and upgrades.

I'd like to do the same but in all honesty I'm not disciplined enough.

My no. 1 reason is to improve my credit rating.

To get the air miles and all the other benefits

I never have credit cards - its just asking for trouble, I save a lot of money each month and use that.
I'm 60 I own my own home and have a good pension and savings. I don't need to worry about my credit rating.
I've been in trouble with credit cards before and don't intend going back there.

Section 75 protection in case there is a problem with my purchase and the firm goes bust or I bought it overseas.
www.moneysavingexpert.com/reclaim/section75-protect-your-purchases/

I get interest on my current account so like to keep my cash in there as long as possible.
I get cash back on credit card spend.
Better protection where I don't immediately have the product or service.

My Tesco clubcard points over the year pay for our annual Eurotunnel journey in August. Usually a day at a theme park and another family day out or meal etc
I get about £150 each year in points which is then tripled to £450

I do it to create distance between my bank account and my day to day spend. Nothing but nothing except direct debits comes out of that main account. And I benefit from the insurance/ s75 protection.

hadnt considered switching to a rewards /cashback card. Anyone got any recommendations?

So would you get paid and then immediately pay your last month's cc bill, then start spending on cc again?

I'm just trying to wrap my head around it and wonder if I should be doing this too but I still can't really work out why I would.

I've never had any issues with debit card spending and I always know how much money I have.

Is this not tempting into spending too much?

As well as all the other things listed ... to buy stuff that I can expense through work. That way I don't have to pay for it out of my own money as I'll have got the expenses before I have to pay the bill.

Airmiles

I do it because I get rewards on my credit card the more I spend the more I get and also interest on the money in my current account so the longer it stays in there the better

John Lewis vouchers. I get about £200 a year ‘free’ money.

This, plus extra protection and Tesco club card points.

If its an Amex then you get air miles. Lots of people pay for everything on Amex then pay off monthly

All of the above.

I almost never use my debit card for anything these days. Credit card all the way (cleared off). Sometimes I clear it as I go to help with budgeting too.

eg we are in the midst of a refurb of our house, I had £40k cash in the bank for it but as we bought things on the credit card I paid the same amount off on the card, same day. All the benefits of the protections but no risk of going over budget.

We’ve already had to use the credit card protections to get money back on faulty items.

I shop online a lot and would never use a debit card online. I don’t want my cash compromised but I don’t care if criminals spend Barclaycards money.

Eh? Are you serious? Do you really not know?

All the reasons pp's listed:

You get better insurance /protection for big purchases eg a bed, holiday.

You get points from Amex, Tesco, sainsbury.

It improves your credit rating.

You get credit. You don't need to pay it off till next month. I've had a credit card since I was 17, paid it off every month practically always apart from twice when I paid it fully the following month.

Financial protection

I think most people who spend this way don’t think of it like a credit card. They think of it just like your debit card. They just utilise it for the benefits and added security.

Is this not tempting into spending too much?

Depends on your attitude towards spending. If you're of the personality that will go "woohoo! free money" then it's probably a bad idea. If you simply spend normally, as you would otherwise have done using a debit card/cash, then there is no problem.

I do all my spending on my credit cards and pay off in full after a fraudster cloned my debit card and drained my bank account.
Luckily I got my money back but it was an awful experience.
Using the credit card gives me the insurance that if any fraudulent activity happens again (which it has!) my cash flow isn't affected and I can flag it immediately to my credit card provider.