Credit cards and extra interest
One thing I think is often overlooked about credit cards even though it's usually considered with any other kind of money lending is that your money stays in your account for longer so you earn extra interest.
While this isn't a massive benefit because it's a current account, it's not without it's advantages. I'm spending about £200 a month on my credit card. So on average I have a balance of about £150 on it. And that is just me, someone who has no money.
Think about how much you spend on your card. I know my parents spend way more than that, it's certainly in the thousands, maybe even tens of thousands per year. That is going to give them a high average balance.
Now given most credit cards give you a nice interest free credit period that's plenty of time to earn interest on that money. Especially if you have a savings account and electronic fund transfer it into your current account once a month to pay the credit card bill.
- Greetings! I'm Chris and this is my blog about debt, finance and generally having no money. Luckily as a student, it's just expected of me to have no money so it's all good.