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?

It's a great way if boosting your credit rating
I used to use it for my expenses as I'd put an expense claim in at the end of the month and pay off the card, that way I'd not spend my own money

It's the standard way to manage money, not sure how you've not come across it before.

All the above, plus it helps me budget.

I can see all my spending for the month in one place, and then rein it in if I’m going over.

Points, air miles and automatic protection on purchases over £75. Plus it allows cash flow where money comes in on different days. I've always paid mine off

the reasons have been said upthread

I keep nothing in my debit account. The moment I am paid it gets pulled in different directions. You’re a fool to keep hundreds sitting there with a massive overdraft facility.

any fraud and YOUR money is gone and you are reliant on goodwill to get it refunded

anything goes wrong with my credit card- the nice lady at Amex charges me back and they sort it out

I have had a credit card and paid it off in full for over 30 years now. Main reasons are to just have one monthly bill to pay rather than lots of transactions on the statement. Also as PP said, you get more protection on your purchases, so holidays and things like that are always put on there.

it is also good to delay payment of things sometimes for cashflow.

I use loyalty points every year for a full RAC breakdown service, a magazine subscription, days out and other things. 10 years ago, I had 2 free 7 days caravan holidays in the top accommodation, totally free thanks to the loyalty points.

I have a separate card that I use for business purchases that did earn Amazon points, but is now cashback. If you use the cards correctly you can gain from them.

I have used 0% cards in the past to pay for larger items over a period of time.

I would never recommend a credit card to anyone who can't control their spending as I do not advocate getting into debt. But as I was brought up to not buy it unless I can afford it or save for it, then a credit card doesn't create any debt for me as I won't let it.

I have seen terrible debts incurred on credit cards, but always caused by people overspending on luxuries that they can't afford rather than necessity items.

I moved to Austria several years ago now and I had to get a credit card because at the time you couldn't use debit cards from Austrian banks in online shops. Bizarre, I know! I think it's only last year that my bank sent me a letter saying my debit card would now be accepted in online shops.
But now I'm fully converted to buying on the credit card and paying it all off at once. Interestingly the default on Austrian credit cards is payment in full 7 days after the bill arrives. If you want actual credit, as in paying monthly payments, you have to phone and arrange it!
The main advantage is the protection if it is used fraudulently or if goods go missing in the post etc. I used it a couple of times for purchases which the credit card company flagged up as fraudulent and then blocked the card - in one case it was payment to a UK small business.
Also you need it for car hire. And it's very handy living in central Europe if I'm travelling to some of the non-Euro neighbouring countries as the exchange rate is fairer and there is no fee for the currency exchange. The debit card has a worse exchange rate and then there's a fee on top.

It might seem like a weird question but I think a significant number of people (you often see it on MN threads about debt and spending habits) still have the impression that credit cards are a thing to be avoided and generally favoured by those who like to spend, spend, spend.

Cheap flights. We live abroad and a local airline's CC gets us great deals on flights.

Financial protection and cashback. I currently have almost £600 in cashback sitting on a card I have had for a few years, like an emergency fund. I buy everything on a credit card and pay off in full every month so never pay a penny in interest.

Protection from fraud and building my credit rating which is now excellent, which has made it easy to get other credit agreements such as mortgage etc. cash back is a bonus. I always pay off in full each month.

Yes, there’s an almost visceral fear of any kind of debt. As though some people cant separate in their minds profligate spending and a well reasoned decision to use a credit card as a tool.

It can I prove your credit rating. Mine dropped last month as I didn’t use my available credit.

Improve not I prove.

Because I use my cc for all online transactions if PayPal isn't available. I don't want to build up debt so it gets paid off every month.

Points, cash back etc

I paid a deposit once on a credit card £500, balance of over 10k on a debit card
company went bust prior to delivery all money covered by c Card. refunded 3 weeks later

You get additional financial protection when you’re booking holidays. Also I used to collect avios, and bought two flights with what I had collected, and only had to pay the taxes. Well worth it!

I do this a lot, and always pay it back each month. The insurance cover, and chargeback of any problematic purchases in a big consideration. One online shopping provider to our house refuses to accept my debit card, but will accept the credit card. I have the card set up on direct debit so it gets paid back in full.

if your credit card get cloned/hacked, they run up a big bill which you don’t have to pay straight away. If your debit card get cloned or hacked, they empty your account leaving you with fuck all until it gets sorted

Glad I saw this thread’ it prompted me to log in to my Tesco clubcard account, and I’ve got £60 worth of points!

Cash back and added protection.

maybe it’s because I’m in Ireland and practically none of the benefits being listed apply here…

•you cannot build credit here
•credit cards have no more protection than a debit card here either
•very few credit cards offer substantial rewards here

Fraud protection.

Problem goods protection.
Maximising financial privacy.

Main reason I use it is additional insurance protection for large purchases.
Many years ago, when I first got cc, there was add on tv for Barclaycard I think, where a woman had bought an expensive new dress for an event and someone split glass of red wine over it. As she'd bought it on Barclaycard they replaced the dress.
I thought everyone knew about insurance protection 🤷🏼‍♀️

I always use it for buying services where it's way in advance eg flights, holidays. If the company goes bust or accommodation doesn't exist and you never get what you paid for you can claim back on cc rather than having to join the list of creditors.

We use our credit card for EVERYTHING (even a bottle of water) and always pay it off each month.

Originally we did it to get air miles and cash back etc. Most of the offers have stopped now but we are in the habit of doing it. It saves carrying cash around.

Also, it offers protection when buying things over a certain value.