Please Can I asked about credit cards

[captain-codeye]

Originally Posted by Moorlandman

But you don’t need to if the card is 0% interest.

When I worked at a major bank, around 25% of credit card borrowers only payed the minimum amount.

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I had a 18 month interest free balance transfer offers once, it coincided with a month in Florida!

Spend a fortune on one card and then transfer the balance when we got home, had the interest in my account for about 15 months, they never offered it me again?😂

[ERICSMUM]

I stopped using cash during the 1st lockdown. I pay for small purchases (newspaper, bar of chocolate 🍫 etc) with my debit card.

Everything else goes on credit cards, I have a few. One is used for only Amazon, one for other on-line stuff. One in my purse for when I’m out.

[Bozza]

For as long as I can remember I've used a credit card for absolutely all purchases.

The main reason is the rewards - we've had a lot of Virgin Upper Class and PE flights that we'd never have taken if we were paying with our own money.

I know there is a degree or purchase protection that comes with credit card purchases too, but we've never had to try and use that.

We clear the full balance each month, via DD so we don't forget.

[cartoonp]

Thank you all

[Dinglebert]

Originally Posted by Moorlandman

But you don’t need to if the card is 0% interest.

When I worked at a major bank, around 25% of credit card borrowers only payed the minimum amount.

See more...

And there lies the problem. When the 0% ends and you still have the balance as you have only paid the minimum then you need to pay off the balance. So people balance transfer. They may be another 0% is they are lucky but even that will have a BT fee.

I dislike paying interest. Its like giving away money for nothing! I had far too many years of it and at one point nearly 15% of my then salary was just going to pay interest. My fault entirely.

[Hmr89]

BA Amex for everyday purchases, Jaja (was Post Office) for foreign transactions. Always paid off in full by direct debit.

[400ixl]

Originally Posted by Dinglebert

And there lies the problem. When the 0% ends and you still have the balance as you have only paid the minimum then you need to pay off the balance. So people balance transfer. They may be another 0% is they are lucky but even that will have a BT fee.

I dislike paying interest. Its like giving away money for nothing! I had far too many years of it and at one point nearly 15% of my then salary was just going to pay interest. My fault entirely.

See more...

From a lending point unless you are using the 0% to be able to invest the funds which would pay the balance, it is typically a bad thing which encourages people to get into debt.

It is good for recovering from debt, but that means paying off more than the minimum payment.

If one thing the pandemic should have taught us all is that anyone's circumstances can change in an instance.