Credit cards?

[Gray]

Many moons ago i got a credit card, very little usage out of it.

But i'm going on holiday next month, so i opted to pay a significant chunk of the payment towards the holiday onto the credit card, since i hear protection is better compared to that of debit cards.

Anyway, i don't want to be accruing any interest - Will it be "safe" for me to pay off what i owe on the credit card (Using my debit card) while still having the credit card security? So if things go tits up for whatever reason, i'll be at least covered?

 

[Access Denied]

I'm not sure what you're getting at. You paid for the holiday with your credit card, the protection applies no matter what you use to pay of the credit balance.

 

[Gray]

Yeah, but i was wondering if i cleared the balance i owed on the credit card, before going on holiday - would the credit card company wash their hands of any responsibility (since i cleared off the funds).

I'm leaning in the direction that since it was paid on credit card, if i paid it off fully even before leaving i would still be covered by them in the event of any issues, and i wouldn't lose any money myself.

 

[dysfunction]

It doesn't matter if you have paid your credit card bill or not. You are still covered by their 'protection'. It doesn't affect your rights in any way.

 

[rynnor]

Yeah, but i was wondering if i cleared the balance i owed on the credit card, before going on holiday - would the credit card company wash their hands of any responsibility (since i cleared off the funds).

I'm leaning in the direction that since it was paid on credit card, if i paid it off fully even before leaving i would still be covered by them in the event of any issues, and i wouldn't lose any money myself.

You are still covered - to qualify you just needed to make the original purchase on your credit card.

 

[Chilly]

Also, you should use your credit card as much as possible and pay it off via full direct debit every month for an elite credit rating.

 

[Raven]

Lots of stupid people think that's the case. You're actually better off making a big purchase, paying it off in one go and then binning the credit card.

 

[Wij]

Just pay off your credit card as much and as often as you can and keep it at zero whenever you can. Credit ratings are for morons because credit should be a last resort.

 

[georgie]

When I got my first job at Tescos way back when I applied to have the cheque guarantee portion of my debit card increased from £50 to £100, Natwest refused cos I had no credit rating. Yet my mate who maxxed his first credit card and defaulted on the payments was having banks falling over themselves to give him more money. Fucking stupid system. No surprise we ended up in the shit we're in.

But to join in with everyone else; yes, you're covered even if you pay the balance. For what it's worth, you are covered even if you only paid £1 on the card and the rest in cash/cheque/whatever for your hols (as long as the total is over £100)*

*unless things have changed in the last year.

 

[Gray]

I do remember that last part being mentioned on that Martin Lewis show the other night, though i had just finished work so only caught a bit of it.

 

[Chilly]

Just pay off your credit card as much and as often as you can and keep it at zero whenever you can. Credit ratings are for morons because credit should be a last resort.

Only morons need a mortgage or a car loan.

 

[Chilly]

Lots of stupid people think that's the case. You're actually better off making a big purchase, paying it off in one go and then binning the credit card.

That's clearly not the case. I get, depending on which of my two cards I use, either 1-3% cashback or airmiles for all the spending I do. If I used a debit card I'd get precisely nothing. Obviously, all those benefits are bollocks if you don't always pay it off in full.