Since my new credit card seems to have “cashback”, this got me thinking – I wonder how much I can spend on a credit card in a month? Normally, I’m not one to buy things on credit cards except if buying things by mail order (mainly because of the Section 75 Consumer Credit Act 1974 protection), preferring to use my debit card for transactions made in person.
And before you all suddenly think I’ve flipped, I’m not talking about going crazy on buying stuff I can’t afford, but more “how much can I spend on a credit card in a month” with the following rules: (i) You must not use the card for anything that you wouldn’t normally buy in an average month, (ii) You must pay the bill off in full at the end of the month (just as I normally do, btw).
Might be interesting to see how I get on…
FWIW, that’s what I do on my cards – I don’t spend in excess of my bank balance (I use KMyMoney to track spending, and warn me if I’m at risk of not being able to pay the card back in full), and I collect the cashback as a nice little bonus for being a Good Debtor.
It adds up for me – can easily gather £50 in a year’s spending, once you have all your fuel, your car insurance, small work expenses, weekly supermarket spending etc all coming off the card.