Hey mums!
Now before we start, I know credit cards are a bad idea ok, I totally get it, so I'm not looking for a don't do it answer please.
General question on how people who do use credit cards manage them?
I've seen a lot of people with small business use a credit card and they say as long as it's paid back before the end if the month, you're right!
Is this true? Just simply, Pay it before the monthly instalment. With all the negative fees back on them, surely it can't be that simple?
Anyway, I'm just looking into if one is right for me so looking for some very very simple , easy to understand advice.
Thanks all :)
Credit card
Credit card
Posted in:
Money
7 Replies
I had a $1500 limit credit card for emergencies. It didn't work well for me because I used it for non emergencies 😂. It really messes with your budget if you don't use them properly. It wasn't the interest rate or anything that was the problem because if I used it as intended it wouldn't have been a problem. I am better at sticking to a budget without a credit card sitting there saying use me and abuse me.
I have a $1500 credit card just in case.
No ongoing fees just the interest if I use it. Have used it 2-3 times in the past 15 years, more to keep it active. I buy something on it and transfer the money straight back onto it (with the exception of house and car I don't buy anything I can't buy outright).
My ex husband and i had a credit card with $2500 limit. He was paid monthly and he had a bad habit of spending money and not talking with me first (he did not have access to the credit card) so i use to pay all bills on credit for the month and then when his pay came in, i’d pay off the balance owing on CC. It was never used for anything else and ALWAYS paid back during the month.
I would not use a credit card in anyother way. Thankfully i am not with him anymore so i always have money for bills.
I have one with a very high limit for emergencies because I like to travel and I don’t have a backup, no parents to call for an emergency bailout, so the card is that for me.
It’s taken a lot of growing up though not to spend on it. I used to live with cards maxed out in earlier days. Now I only use my cc for ease and pay it off by transferring the money across each pay, it’s never beyond what I can afford unless I’ve made a decision and a plan about a large purchase. But Afterpay is great for that now too so I use that a lot more for purchases.
Of course it's not that simple! Read the terms and conditions of each card. Some have hefty annual fees & sneaky penalities.
Most merchants have surcharges to use credit. It may only be a small percentage of the transaction but it adds up quickly.
They also reduce your borrowing capacity for other loans/mortgages.
Credit works well as a business tool. It's different to personal use so can't be compared.
For more info visit the govt info site Money Smart:
https://moneysmart.gov.au/credit-cards
Imo they're dangerous unless well understood & VERY strictly managed. If you can pay it off every month just skip the credit card & use debit. If you can't, don't get one at all.
I have a $1000 credit card limit.
All my bills come off the card (so they can never be late) and I pay it each fortnight. I take my yearly bills, divide it by 26 fortnight’s and that’s how much I transfer automatically to the credit card.
I earn points and bought some wicked benefits with the points (airfares, phone, entertainment tickets etc)
Look at why you need the card, if it’s useful or if cash would work better tor you.
I pay a yearly $50 fee for the card.
I also have the option to up my card limit, I won’t, but Incase of emergency it’s nice to have.
We have a $1000 limit cc that some of the direct debit bills come from. It gets paid back usually immediately. We just do it that way in case something comes up and we dont have the money in the account for the direct debit. Its yet to happen😂