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?

This we pay everything on cc pretty much except big bills, thats done via bank transfer.

Protection against fraud.
I never use debit card for online payments.

Also I find it easier to see how much I’ve spent that month on non essentials (all bills come out of current account ), so know to reign it in if I’ve been a bit spendthrift.

Also better interest rates with my current account so the longer my money stays stays in my account the more interest I get!

Some cards also give you points or cashback.

I use it for travel costs for the month. It means i don’t mess up by overspending. I can just pay in full each month and get cash back on it. Everyone and again I would mis-calculate by forgetting that I had a ticket left to buy for a shift which would leave me short.

Because you can use loyalty credit cards to get free money. I had a John Lewis credit card for many years which I used to pay for almost everything & paid it off in full every month. This earned points which were converted into JL / Waitrose vouchers worth about £80-100 per year.

Fraud protection for me, too.
It means no access to my current accounts, the money I actually live on. I know the bank would refund the fraudulent transactions but sometimes that can take days.

We use our nectar credit card so we get nectar points, they pay it off! Pays for Christmas every year.

Unless you're on an extended 0pc offer this is the only way you should spend on credit cards. I originally did it to improve my credit score, I like the extra protection and I now find it easier to have all my months expenditure come out just after my wages come in. I don't like to have much money in my current account so it all gets moved to savings once the credit cards are payed off.

I earn points to get shopping vouchers.

Yes JL card was so good

Fraud protection (ours is really good at alerting us to any suspect transactions) and we get cash back on ours. It’s worth it and we pay it back each month.

I made £700 in nectar points from my amex gold last year.

What credit card do you have??

Financial protection for large purchases like holidays or big electrical items.

DH uses his whenever he buys fuel throughout the month, then pays it off in one go. The money stays in his bank account for up to 6 weeks longer than if he used a debit card. Better his account than theirs.

Tesco. We use it for all day to day expenses. Basically everything that doesn't come out by monthly DD. We also use it for our car insurance and home insurance which we pay annually
We have a Tesco five mins away and I do main bulk of our shopping there and usually put fuel in there too. All xmas presents. Everything really. It's free money. It used to be a bit of a hassle to get the eurotunnel vouchers but now you can do it online

Tons of reasons

They're broke at time of purchase but know they get paid before credit card payment is due.

To build/maintain a good credit record

To have protection for large purchases that you don't get with debit cards.

Cash back

Loyalty points

Air miles

To buy a surprise for a partner/spouse your current account is joint with

They can be very useful if used with good discipline.

All of this plus cash back.

Yes, you get clubcard points with a Tesco credit card

It also helps to see what you have bought

All of the above plus we share all money in our house so using separate credit cards means DH can't see how much I spend on coffees or see what he's getting for Christmas.

I have to travel to different work sites in the UK, which I can then claim back on expenses. By using a credit card, I can keep this expenditure separate from my normal spending and it is a double check that I have claimed the right amount.

M&S card which converts to vouchers. You also get loads of promotions for double points, £x of points for food spending, home spending etc. etc. also have fuel card for fuel points which I settle online using my M&S or HSBC card thus doubling points. Always settle in full every month by DDM. The cash stays on an interest bearing account until needed. You have to be organised and I have a set of spreadsheets to track every penny of spending. Only takes a few mins a week to keep on top of it.

With banking apps it's so easy to see and pay off a credit card when you want. I pay mine even when the transaction is still pending.

We’ve had so much free stuff with Tesco points, it’s madness not to.

we get John Lewis vouchers with ours.
also payment protection (got money back once when an airline we’d booked with went under).

It’s nothing to do with spending online. Imagine ordering something that you don’t have access to immediately and it doesn’t turn up, either because the company doesn’t really exist or it goes bust in the meantime. Not an unusual occurrence at all.