4 ms·

Both Monzo and Starling are good. If you're good at budgeting and never dip into negative balances I suggest getting a cashback or points credit card too, and t

by Shoue 7y ago

Both Monzo and Starling are good. If you're good at budgeting and never dip into negative balances I suggest getting a cashback or points credit card too, and then you can simply put your income into an instant savings account until you need it for the monthly direct debit to pay off your credit card and earn interest _and_ cashback/points.

Nextgrid 7y ago
Cashback is very low in Europe (thankfully) due to the interchange fees being capped by law. Frankly even in the US I personally wouldn’t bother using credit cards. The management overhead of maintaining one (you have to pay it off on time, have 2 balances to look at, etc) is IMO not worth the money.
- fredophile 7y ago
  A credit card that pays 2% back on all purchases is pretty easy to get in the US. Since cashback isn't taxed this is close to 3% in pre-tax dollars. If having a balance on the card and money in the bank is too confusing you could just pay it daily on days that you use it. I'd say the minimal effort is worth the reward in this case.
  - Nextgrid 7y ago
    > pay it daily Unless I can automate this it’s still an extra step I can’t be bothered to do.
    - smabie 7y ago
      And you get to invest the money in the mean time. If you manage to get a bunch of cards you can just roll over your credit and earn bond or equity returns on the deferred payment. It’s totally worth it, you can make thousands of extra dollars this way.
- pbhjpbhj 7y ago
  In the UK you get additional purchase protection when you pay by credit card, which can be useful on larger purchases - lots of people have been saved by this when companies have folded. https://www.moneysupermarket.com/credit-cards/guide-to-credit-card-protection/ https://www.moneysupermarket.com/credit-cards/guide-to-credi...
- lmm 7y ago
  What management overhead do you have to do? Set up a direct debit to pay off the balance in full every month (and set it to happen on the same day as your other bills, shortly after your paycheque comes in). Pay everything on the credit card, so that that's the only balance you have to check. Get on with your life, and enjoy either cashback or the occasional free flight.

by Shoue 7y ago

Nextgrid 7y ago

Cashback is very low in Europe (thankfully) due to the interchange fees being capped by law. Frankly even in the US I personally wouldn’t bother using credit cards. The management overhead of maintaining one (you have to pay it off on time, have 2 balances to look at, etc) is IMO not worth the money.

fredophile 7y ago
A credit card that pays 2% back on all purchases is pretty easy to get in the US. Since cashback isn't taxed this is close to 3% in pre-tax dollars. If having a balance on the card and money in the bank is too confusing you could just pay it daily on days that you use it. I'd say the minimal effort is worth the reward in this case.
- Nextgrid 7y ago
  > pay it daily Unless I can automate this it’s still an extra step I can’t be bothered to do.
  - smabie 7y ago
    And you get to invest the money in the mean time. If you manage to get a bunch of cards you can just roll over your credit and earn bond or equity returns on the deferred payment. It’s totally worth it, you can make thousands of extra dollars this way.
pbhjpbhj 7y ago
In the UK you get additional purchase protection when you pay by credit card, which can be useful on larger purchases - lots of people have been saved by this when companies have folded. https://www.moneysupermarket.com/credit-cards/guide-to-credit-card-protection/ https://www.moneysupermarket.com/credit-cards/guide-to-credi...
lmm 7y ago
What management overhead do you have to do? Set up a direct debit to pay off the balance in full every month (and set it to happen on the same day as your other bills, shortly after your paycheque comes in). Pay everything on the credit card, so that that's the only balance you have to check. Get on with your life, and enjoy either cashback or the occasional free flight.