Credit cards: Money expert suggests ‘only two real reasons’ to use a credit card

Martin Lewis gives an overview on what a credit card is

Christmas is just a matter of days away, meaning many may well have seen their outgoings increase of late. Whether it’s due to substantial spending this month or an upcoming New Year’s resolution, the turn of the year may well prompt some to take a review of their finances.

With that in mind, personal finance expert Emmanuel Asuquo recently sat down with Express.co.uk – over video call – to discuss all things money.

During an exclusive interview, Mr Asuquo, who has previously stood in for Martin Lewis on This Morning, was asked about credit cards.

He pointed out that for substantial purchases up to £30,000, it may be the case that using a credit card offers additional protection.

“If you are buying something over £100 and under £30,000, think about using your credit card, rather than your debit card,” he said.

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“You have an additional guarantee protection by doing that so definitely look at protection yourself.”

The financial adviser highlighted how many purchases are now made online, and warned that while websites may look legitimate, there is a chance some are not.

Furthermore, he highlighted the risk that products bought from online sellers may never arrive.

“We forget how much we are trusting that just because we click a button and press pay, that it’s actually gonna turn up at our door.

“You have an additional guarantee protection by doing that so definitely look at protection yourself.”

The financial adviser highlighted how many purchases are now made online, and warned that while websites may look legitimate, there is a chance some are not.

Furthermore, he highlighted the risk that products bought from online sellers may never arrive.

“We forget how much we are trusting that just because we click a button and press pay, that it’s actually gonna turn up at our door.

“I’ve made money using it so it’s actually making money.”

Moving onto the latter situation, Mr Asuquo continued: “Saving me money? Again maybe on a holiday where I know that if I buy or pay for the holiday today, that is cheaper than if I saved for the next six months and then brought holiday closer to [the time] cause the holiday will cost me more.

“So it’s saving it’s saving money, especially if I’ve got an interest free credit card that I paid no [interest].

“It’s cost nothing more because I haven’t had to pay interest and is saving money because I’ve done it sooner.

“Those are the two real reasons that I would use a credit card.

“Other than that, if you are using your credit card, really you should use your credit card for things that you already have cash for and then just pay off at the end of each month.”

The money expert provided examples of everyday spending which could suit this tactic, suggesting: “Food, petrol, these kind of things that you are spending normally. For me, put them on a credit card and then you can pay pay it off at the end of the month.

“That’s great for your credit score, but also if you’ve got point systems – so you may have a credit card that gives you air miles or gives you Nectar card points or Tesco points or whatever it is or maybe.

“If I was going to spend money anyway and I can spend the same money on my credit card and now I can be rewarded for doing so and then paying it off, it only makes sense to do that.

“So to me that that’s really a good way to utilise a credit card to help you grow credit, to help you save money, to help you make money and also help you build up points for rewards in the future.”

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