I got a letter through my door today from my bank telling me that I should really use my credit card, because it's great and everything. It made some reasonable points, like about how it'd grant me fraud protection when buying online, and it made me think that maybe I should use the card. The letter had been sent to me, I think, because the card has sat in a draw for the past five or so years, completely untouched.
So, I understand that when you buy with a credit card, the card company pays on your behalf, and you then pay them back at an agreed date. I know there are things about interest and that sort of thing, but I don't really understand any of it. My questions are:
1) If I spend £100 on something, at the end of the month, do I pay £100 to the card company, or more than that?
2) Does using my credit card to buy everything and then paying the card company back on time do good things for my credit rating?
3) My dad reckons he gets 1% cashback on everything he buys. Does this mean that buying by credit card is cheaper than buying by cash?
4) Why shouldn't I scrap my Maestro debit card and use the Credit card for everything? Or is there a balance?