Is using credit cards a good or a bad thing?

    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?




    as long as bill is paid on time you will not pay anything else, also go for a cashabck card to get something back, also credit card offers you security if things go wrong and you get nowhere with supplier, as credit card are as responsible as the supplier

    1) If you pay it off in full each month then no interest is charged so you spend £100, you pay £100 back next month
    2) It increases credit rating
    3) You only get cashback on cashback credit cards such as the Virgin cashback card or American Express (only worth getting if you can afford to pay it off each month)
    4) Easier to get money back for any fraud on your cc or if a company goes bankrupt

    Good thing for me, as I need to get my credit rating up when I decide to get a mortgage. But i'd personally only use it in desperate times.

    Original Poster

    Excellent. I'll phone the bank and see if I can get this ol' thing activated, then. Cheers!

    Credit cards are great so long as you pay on-time. Pay off the full amount each month and you'll be fine. It's when folks buy stuff they can't afford and leave the interest to kick in over long periods that you get problems.


    i would be looking around if i was you, there are many that offer cashback, amex offering 5% cashabck on spends for first 3 months so if you looking for anything big then a good time to get, although a fair few shops dont accept amex, but there are others, also quidco or any other cashabck sites offer money when taking out one, look around


    Credit cards are also much safer when buying online


    have a look over on mse, they should have a crdit card section and will probs be able to find a good deal with cashback and via cashback site

    I use mine for expenses then pay it off when I get the money back from the company, works for me and a lot safer :thumbsup:

    And remember to pay if off in full every month! (I know, it's already been said, but it can't be said often enough.)

    depends if you have a mortgage or not, if not then yes so long as you pay them off each month, that a contract mobiles are the easiest and quickest way to build your credit rating.

    Don't dabble if you're pants with money management, see credit as "yours" or won't be able to make the repayments as they are also the quickest way to get in a lot of debt and a lot of trouble.

    If you already have a mortgage nobody really cares about credit cards, if you pay your mortgage each month you're generally a pretty good repayer.


    whats a draw?


    just read the OP fully

    if you dont understand how it works at the end of the month when your bill arrives you shouldn't have one in the first place

    We use a tesco credit card then get points everytime you spend - always pay in full each month. It has helped build up our points loads.
    We also have a different one for using online only which has quite a low limit on it.

    beacause you are a month behind paying, make sure you put a months spending aside otherwise the first month of using it you will have extra money (dangerous thing) and the last month of using it you won't have the money to pay your card off

    ...if you get what i mean



    the bank shouldnt have given you one in the first place if you are not intelligent enough to use it properly.

    no wonder they sent you a nicey-nicey letter explaining the benefits of using it

    do you use quidco?

    there are some excellent introductory offers on there credit cards . up to 25 pounds cash back…ds/


    IF YOU DONT UNDERSTAND DONT USE IT!!!the bank shouldnt have given you one … IF YOU DONT UNDERSTAND DONT USE IT!!!the bank shouldnt have given you one in the first place if you are not intelligent enough to use it wonder they sent you a nicey-nicey letter explaining the benefits of using it

    +1 totally agree, don't get in mess, make sure you know what you are doing
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