Credit cards shouldn’t be used for small purchases - Credit cards - News - Moneyfacts

News News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Credit cards shouldn’t be used for small purchases

Credit cards shouldn’t be used for small purchases

Category: Credit cards

Updated: 09/02/2009
First Published: 06/02/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Credit card customers should avoid using this form of finance for small purchases, a charity has warned.

The Consumer Credit Counselling service noted that unless a card has a zero per cent interest rate, shoppers will ultimately end up paying more.

"People should avoid using their credit cards for unnecessary purchases that they can pay for there and then," said a spokesman.

And he noted that cash withdrawals can also work out as being "far more expensive", despite the temptation that may be offered by the convenience of credit cards.

Those who do feel the need to use this form of finance may find that a reward credit card is the best option, as offers such as cashback are available.

A recent study by the Post Office showed that 2.6 million people are intending to use their credit cards for everyday purchases more often this year than they did in 2008.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Credit card mistakes cost borrowers £948m

At this time of year, many people could be turning to balance transfer credit cards in an attempt to overcome their Christmas debt. However, many of these borrowers could get caught out in the year ahead, and they could end up paying for it.

6 of the best balance transfer credit cards

Does the thought of opening your credit card bills fill you with fear? If so, you're not alone! Christmas may be over, but unfortunately, many people will still be paying for it, after turning to credit to cover the cost of their festive spend.

Get a better credit score for the New Year

A new year means a fresh start, and one of the best things you can do is take a cold, hard look at your finances – particularly when it comes to your credit score.