Credit Card or Debit Card

[polyanna18]

At the moment I only have a debit card. Would I be any better off by having a credit card and paying it off each month and if so, which credit card is the best.

Thanks for any help

[pug100]

Hi,
One main advantage of credit cards is that they usually offer you buyer protection. In other words if you buy an item on the web or via mail order, and the item fails to arrive you are covered, but with a debit card once the money has gone from your account that's it.

If you can do it always pay off your credit card balance each month as the intrerest rate on most cards is very high (25% -30%). There are many ways to use a credit card to borow money in the short term and this website is worth a good read if you plan no doing that ,also gives advice on the best cards around at the moment.


http://www.moneysavingexpert.com/cards/

[pug100]

Missed a link there, this is the bit of info I meant to attach regarding consumer credit act, covers purchases over �100 and below �30,000

http://www.moneyextra.com/features/012718.feat ures.html

[Ethel]

Most credit card interest rates are between 13 - 18%.

I use my Tesco credit card for EVERYTHING I possibly can -and pay it off in full each month. I get points for every pound spent -more if spent at Tesco.

I kept a record last year and got �280 in vouchers - which are worth a lot more if you don't use them in Tesco but choose one of their deals. Worth over �1000 in MFI for example.

But �280 for nothing is not bad.