This is a serious question! There have been a number of consumer blogs discussing this subject lately. The conversations are centred on some advice which was posted online recently, suggesting that using a credit card for grocery shopping was a way to save, and even money. While the original article failed to fully qualify this statement, and as a result, caused much heated debated, we have looked at this subject and can share our thoughts.
Don’t ever use a credit card for every day, or regular essential items unless you are absolutely certain you can repay the full amount straight away. If there is any doubt that you will be able to clear the balance before the end of the month in which you make the purchase, don’t do it. It will result in interest charges and ultimately it will cost you more.
If you can afford to repay your credit card balance every month and you have a zero balance and a zero interest credit card deal, then here’s how you can use a credit card to build your credit and your credit rating:
Buy your groceries and fuel on a credit card, and only use it for these purchases, don’t use it for anything else. As soon as you are paid, repay the entire amount in full, before the deadline for interest is applied. If you do this every month, you will see your credit rating go up, your credit level go up, and you will still be spending the same amount of money.
In addition, if you are clever about which credit card you use, you can benefit from some additional benefits. For example, using a supermarket credit card and loyalty card will build you a larger number of points that can be redeemed for goods, which is the equivalent of money saved.
Be extremely careful about using a credit card in this manner. If you are not good with them, or have a track record of not clearing the balance on your card, it is probably not the best idea and could make matters much harder for you.
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