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?

Cash back.

Plus all business expenses go on one card which helps me keep track of them.

I do it for 3 reasons

1. payment protection - lots of payments get extra protection if paid in credit card - eg holidays
2. I get cash back from my bank for using the card
3. work expenses at I will claim

I have never had a credit card, my dh had one once (a tesco one) and we used it for some big expenses thinking the tesco points would be worth it…they weren’t! It was ridiculous. so for me it seems a completely pointless exercise.

Well so then the question wasn't really aimed at you then was it?

I get air miles! Managing ti travel to Ireland for Christmas for 2£ for husband and I and our toddler in business class mm paying with air miles

we are off to japan On a 241 companion voucher in fev

also it builds your credit score!

I get £2-300 a year of free money from putting all normal spending on credit cards. Definitely worth it.

To buy something just before payday

For credit card protection

For cashback or points

To pay for something that I need use savings for but they take a few days to transfer

Thanks for all the helpful replies.

I was burned with ccs as a student so I suppose I have a negative association with them.

It's interesting that so many use them responsibly and effectively every month.

I'm surprised at the amount of people who said financial protection. It never crossed my mind that that was a reason. I've never had any issues spending online with a debit card but I will think about that in future!

@Cuddlywuddlies you will never earn many points on a "few expensive things" the idea is you do all your day to day spending so it adds up. I get at least £150 worth of Tesco vouchers a year which means £450 value, just for using a different card. What's not worth it about that?!

if you buy an item worth more than £100 the credit card company is jointly liable if something doesn't arrive ie if you had ordered a sofa from made.com before it wnet bust the credit card would have to reimburse you if order was not fulfilled
it only applies on items worth over £100 not a bill of a £100 so if you buy two items at £55 you can't claim but you can try a chargeback this is not impossible with a debit card but it is much harder if possible always pay for large purchases cars holidays furniture etc with a credit card

for a supermarket shop of £100 plus it makes no difference whether credit or debit card
I typically spend about £2000-2500 per month on my card i have a direct debit set up to pay it all in full
I also get 1% cash back that is about £20 per month also using app it means I always have all the recipts on my phone

To improve my credit rating.

I put everything on my credit card because I get cashback, not a huge amount but it's a three-figure sum every year so why wouldn't I want it?

My mindset is if my card is used fraudulently then it’s not my money lost. I’d pay off any transactions belonging to me and let the company deal with the rest because I’m not out of pocket.

I have 2 cards - one JL one which I do the general/food shopping (lot of Waitrose in there as we live in Waitroseland) so get vouchers back. The other I get cashback/offers and I ONLY use it for online shopping. That way if there ever is an odd payment on a card that's fraud it's easy to spot (both for me and the card company/bank)

ANEX you get cash back

I never have credit cards - its just asking for trouble,

No, it isn't. You mindset, or attitude to spending might be asking for trouble, but I (and suspect most of us on this thread) make a decision to buy something based on whether we need it, or if we can afford it, not because we have the 'ability to borrow' for it.

Aside from all the reasons given by so many of us, I know a couple of people that use a card for spending on one thing - so one puts all their car related spending on one - from insurance to MOT to petrol - so they find it easy to track what it is costing them to drive without having to sit and go through all spending from their account. I know someone else who is out and about a lot for work and can claim back, but it is SO much easier to be able to claim all work related expenses back each month when it is all one one card, and nothing else goes on that card, but it just includes everything from train tickets down to a coffee when traveling. Just makes her expense claim so very straightforward.

Financial protection, JL points/vouchers, and Amex avios. Has let me fly first class for a fraction of the cost!!

I take cash out for my 'walking around money'.
Everything else I pay on my credit card because it offers me more protection than paying on my debit card. And it gives me points etc.

We get hundreds of pounds worth of Tesco vouchers every year, purely for doing our normal spending which we would do anyway. DD to pay it off every month - it’s literally just using a
different card and getting massive benefits
from it.

Protection especially if buying online.

Having a credit card that I paid off in full each month meant that I had a great credit rating and was able to get a low interest loan for the £££ I spent on new kitchen, bathroom and central heating last year.

Paying on CC meant that when my card was cloned the bank rang me quickly and reimbursed all of the purchases made on it. When the same happened to my debit card it took months to get the money back.

I got £100 cashback off my CC last week for my day to day spending throughout the year so free money.

If I have an unexpected issue like car repairs then I have the option of spreading the payment over a longer period if necessary although have always managed to pay it off as I get 'free' access to money until after my next pay day.

I’ve made around £300 this year using my card through points and cash back offers.

Consumer protection, insurance and all those lovely points, we make between £300-£500 a year.

Have done this since the 1980's.
Make almost every purchase on the CC and pay off at the end of the month, in all that time I don't think I have ever carried anything over to the following month.
In the early days it was done for convenience but that was soon overtaken by the security aspect.
It is a Tesco CC so we get points.

Weird question.