Credit cards if you don't need credit- cashback, air miles and charges?

SiD the Turtle · 4 Feb 2009 at 13:36

Hi guys,

I currently make all my purchases through my debit card. I don't buy things unless I have the money for them, so I don't have a need for credit. I've been looking into getting a credit card what with these cases of people needing to charge back when businesses are going bust and a number of online retailers won't let me make purchases with a debit card, or won't let me change the delivery destination (fraud risk I guess).

So spec me a card! Do I need to worry about interest rates at all if I'm paying off in full each month? What about cashback offers or air miles? American Express seem to do both on separate cards. That leads on to the question on whether it'd be more cost effective to get money via cashback or via air miles.

So basically what I'm after is a credit card I'd use like a debit card, without being charged any interest or any fees. I've had a look on MSE but their articles seemed to be geared to those who are 'terminally' in debt and need to play the system to shift the debt. Anyone have any general thoughts?

monkeyspank · 4 Feb 2009 at 13:37

AmEx is not widely accepted

Bes · 4 Feb 2009 at 13:37

No, interest does not matter if you pay in full on time

American Express Plat when you can, and one of the Citi cards like EasyJet or Shell for your secondary Mastercard.

Ronaldo · 4 Feb 2009 at 13:40

I have a standard barclaycard, i cant even remember ARP/Interest they charge as like you i only use it if i can afford to pay it from my current account, so for the past 5 years i'v never missed a payment or paid any interest. I average around 200 per month.

I do all this online, never been in a bank to pay for CC bills.

D13 · 4 Feb 2009 at 13:42

Ronaldo said:
I have a standard barclaycard, i cant even remember ARP/Interest they charge as like you i only use it if i can afford to pay it from my current account, so for the past 5 years i'v never missed a payment or paid any interest. I average around 200 per month.

I do all this online, never been in a bank to pay for CC bills.

same, I think credit cards give you greater protection online the blah blah credit card act or something.

I feel better as if there is fraud on my credit card technically its the bank that gets screwed but if its your debit card then it's the actual money you have worked for.

Furton · 4 Feb 2009 at 15:46

I have an American Express British Airways card and a Tesco Master card for anywhere that doesn't take Amex.

Fantastic way to build up airmiles to get free flights (except taxes) or upgrades to Business Class. Can convert your tesco clubcard points into BA miles as well. Can send you a referal link if you want for the BA Amex card for some bonus miles?

[DOD]Asprilla · 4 Feb 2009 at 15:58

I've binned my Amex Blue Platinum because to many places, particularly overseas, didn't accept it. Isn't there an annual charge for the BA Amex card? Other Amex cards let you collect points which you can then transfer to loads of different airlines (BMI, Virgin, etc) but not to BA.

Edit - just seen the charge is for the BA Platimum card.

I've got a basic Barclaycard visa, which I use most of the time and the limit is only 2k. I pay it off in full every month so don't pay interest on it.

Bes · 4 Feb 2009 at 16:12

[DOD]Asprilla;13426943 said:
I've binned my Amex Blue Platinum because to many places, particularly overseas, didn't accept it. Isn't there an annual charge for the BA Amex card? Other Amex cards let you collect points which you can then transfer to loads of different airlines (BMI, Virgin, etc) but not to BA.

Edit - just seen the charge is for the BA Platimum card.

I've got a basic Barclaycard visa, which I use most of the time and the limit is only 2k. I pay it off in full every month so don't pay interest on it.

Depends- I use my AMEX loads abroad in restaurants, hotels, etc, racked up around £300 in cashback last year

nero120 · 4 Feb 2009 at 16:17

Furton said:
I have an American Express British Airways card and a Tesco Master card for anywhere that doesn't take Amex.

Fantastic way to build up airmiles to get free flights (except taxes) or upgrades to Business Class. Can convert your tesco clubcard points into BA miles as well. Can send you a referal link if you want for the BA Amex card for some bonus miles?

Hmm, I currently have an amex platinum card and I spend quite a bit - would it be worth changing to a british airways card do you think? How easy is it in practice to get free flights?

Bes · 4 Feb 2009 at 16:21

nero120 said:
Hmm, I currently have an amex platinum card and I spend quite a bit - would it be worth changing to a british airways card do you think? How easy is it in practice to get free flights?

I think the 1.5% is worth more than the flights

[DOD]Asprilla · 4 Feb 2009 at 16:31

nero120 said:
Hmm, I currently have an amex platinum card and I spend quite a bit - would it be worth changing to a british airways card do you think? How easy is it in practice to get free flights?

I get loads of free flights from Mrs Asprilla's amex card, mostly on virgin. It's generally a case of transfering the points to the frequent flyers scheme of whichever airline they partner with (you can also use the points for for other things like car hire, electronics, etc).

In the case of the BA card you can only transfer to a BA frequent flyer account. Unless you specifically fly BA and spend a lot on your card (costs around 50,000 points to go to Cuba, for instance) then you are probably better off with the cashback card.

MaX_PoWah · 4 Feb 2009 at 16:41

Ive got the lloyds airmiles duo thing (you get an amex and a mastercard) and i use these for my general spending, i also never pay any intrest and these days most places accept amex im finding, and that includes online shops, its really easy to pay it off online as lloyds online is really good.

I cant work out the airmiles thing though, i recieved a statement last year saying i had so many airmiles, then i got a credit card statement the other day which has a little statement showing your airmiles and it said i only had 50 or something, need to check up on that.

I also got one of the abbey zero cards (mastercard) for when i go abroad as there stopping doing them soon and there 0% on purchases abroad, i am however finding that abbey online is not very good, and despite supposadly activating the card, its been rejected when i try to buy stuff.

Furton · 4 Feb 2009 at 17:48

nero120 said:
Hmm, I currently have an amex platinum card and I spend quite a bit - would it be worth changing to a british airways card do you think? How easy is it in practice to get free flights?

I use a mix of Amex, BA Store and Tesco clubcard to collect points, so I earn them pretty quick.

You can use them to buy economy tickets but this is their worst use as the miles do not cover taxes and fuel charges. So say a flight from LHR-JFK costs £300 in economy, you'd have to use 50,000 miles + around £180 for taxes and charges, making the value of 50,000 miles only £120. Poor.

However, the better way is to book a ticket in Premium Economy (LHR-JFK cost about £500), then use your miles to upgrade to Business Class (about £1300, you get a flat bed, great food and access to lounges)), this only uses 25,000 miles, hence making 25,000 miles worth around £800, good value

frosty03 · 4 Feb 2009 at 17:55

i prefer 1% cashback on EVERYTHING.... they pay out in Jan, and it can come to quite abit.
Capitol 1 does this, they give 3% on the first 3 months

You should calculate the "value" of the rewards, they usually come back at 0.5%ish so to get 1% cashback is pretty ok.

Goto moneysavingexpert site, they compare it out for you there further...

SiD the Turtle · 4 Feb 2009 at 18:36

Thanks for the advice guys. I mis-read the AMEX airmiles card details, they're BA Miles not Airmiles, so the cashback offer seems much more appealing.

I'm going to shop around but it looks like the AMEX card is the best bet, with either the debit or another credit card for backup in case somewhere doesn't accept AMEX.

oneilldo · 4 Feb 2009 at 18:55

amex and egg money is what i use. when i got them they had the best % cash back offers.

Glaucus · 4 Feb 2009 at 18:56

I'm thinking of switching to a siansburys card, to get extra points. The others don't seem worth while unless you use it for business.

Origin · 4 Feb 2009 at 18:59

Have a look at this page on moneysaving expert

Furton · 4 Feb 2009 at 19:31

SiD the Turtle said:
Thanks for the advice guys. I mis-read the AMEX airmiles card details, they're BA Miles not Airmiles, so the cashback offer seems much more appealing.

I'm going to shop around but it looks like the AMEX card is the best bet, with either the debit or another credit card for backup in case somewhere doesn't accept AMEX.

You can also get an Airmiles credit card which give u an Amex and Mastercard

http://www.airmiles.co.uk/collect/p...r0901H_CollectionOfferBanner&from=bonusoffer2

Plus, after spending £10 you get a 1500 airmile voucher, worth it just for that

Cobertizo · 4 Feb 2009 at 19:37

AcidHell2 said:
I'm thinking of switching to a siansburys card, to get extra points. The others don't seem worth while unless you use it for business.

Why are Nectar points (1 for every £5, or 2 per £1 in Sainsbury's) worth more than >=1% of the transaction which you can get on other cards?

Whenever I've looked around, the best cashback cards seem to far outpay the best "reward" type credit cards. But I'm more than happy to be corrected if I'm out of touch on this one!