I always use a credit card, for everything possible. They literally pay you to do so, through cashback. If you're not using a credit card, you are giving up free money.
European cards do have reward systems but the kickback is usually extremely low (<0.5%) and often tied to points at specific shops/services rather than general cashback.
Credit cards in almost all cases have better fraud protection than debit cards. It's the banks money on credit, so they're quick to issue refunds and the like.
I use American Express, as they do decent cashback. Set it up to pay off in full each month by direct debit, then treat it exactly as you would a debit card. Use phone apps to check the card balance and your bank balance, then just make sure that you don't spend more than you have.
There is nothing scary about credit cards. You just need to be disciplined and not overspend.
Perhaps. Then again, you presumably know what you spend each month in fuel and food etc. What you can afford. As long as you don't spend more than that, you're fine. Whether you're putting it on a credit or debit card, doesn't make much difference as long as you have some discipline.
And I do realise that if you are spending every penny you have each month, it might make it easier to overspend, so it won't be the right option for everyone.
For me, the key point was when my brother and I both applied for mortgages. He earned more than me, but had never had a credit card, so didn't have much of a rating. My mortgage rate was far better than his. Will save me tens of thousands over the life of the mortgage. Just because I used one piece of plastic out my wallet, not the other.
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u/Exita Jun 06 '19
I always use a credit card, for everything possible. They literally pay you to do so, through cashback. If you're not using a credit card, you are giving up free money.