Credit cards benefits and cons
Credit cards are seen by a lot of people as an emergency source of funds when you have spent your income, however this doesn't have to be the case.
What if you could spend your money but earn cash back and rewards on this whilst earning interest at the same time? sounds too good to be true? well it's not
Every month I get paid direct into my bank account, lets for arguement sake say its £1000 to keep it simple. I earn interest on that £1000 for as long as its in my account. Now the usual activity would be to withdraw your money to buy things, either cash from the ATM or paying in store on your debit card. Your interest goes down as at the end of the month you'd have £0 left in your account or close to it.
The way I spend money is to buy everything on my credit card, and I mean everything! I've even used my credit card in the self service to buy a 50p item before, I wouldn't recommend this in smaller shops as they get charged a transaction fee and will likely pass it on to you.
At the end of the month I still have the majority of that £1000 in my account and a balance of roughly the same on my credit card. The statement comes and I pay it off in full.
Now this trick only works if you are good with money and don't spend more than you earn! however if you are you earn both ways. Interest in your account where your wage sits and cash back from the credit card company. Shop around for the best cashback one, mine gives me about 1p per £4 spent on everyday items and 1p for transactions in their own store, this soon adds up.
What if you could spend your money but earn cash back and rewards on this whilst earning interest at the same time? sounds too good to be true? well it's not
Every month I get paid direct into my bank account, lets for arguement sake say its £1000 to keep it simple. I earn interest on that £1000 for as long as its in my account. Now the usual activity would be to withdraw your money to buy things, either cash from the ATM or paying in store on your debit card. Your interest goes down as at the end of the month you'd have £0 left in your account or close to it.
The way I spend money is to buy everything on my credit card, and I mean everything! I've even used my credit card in the self service to buy a 50p item before, I wouldn't recommend this in smaller shops as they get charged a transaction fee and will likely pass it on to you.
At the end of the month I still have the majority of that £1000 in my account and a balance of roughly the same on my credit card. The statement comes and I pay it off in full.
Now this trick only works if you are good with money and don't spend more than you earn! however if you are you earn both ways. Interest in your account where your wage sits and cash back from the credit card company. Shop around for the best cashback one, mine gives me about 1p per £4 spent on everyday items and 1p for transactions in their own store, this soon adds up.