Martin Lewis says protect your savings by paying by credit card

Credit cards have a bad reputation. They’re the evil tempters luring you into overspending and debt. So it came as a surprise to us when Martin Lewis said that we should be all be paying by credit card.

In the Money Saving Expert newsletter, Martin Lewis explained that he did all his spending on a credit card.

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‘Everyone knows credit cards are dangerous, don’t they? Except, well, I do all my spending on them, as DONE RIGHT, ie, repaid in full each month so there’s no interest, credit cards rule…’ he wrote.

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So why should you be paying by credit card for your next homeware shopping spree in Next or kitchen makeover?

The main reason the money guru explains is that credit cards have stronger protection than a debit card. With both cards, if you don’t get what you paid for, you can ask the card provider to give your money back.

However, if an item costs between £100 and £30,000 credit cards have Section 75 legal protection. Section 75 means that the card firm is jointly liable with the retailer.

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So if you buy something faulty that you can’t easily return or a company goes bust before you get your purchase you can ask the card firm to sort out a refund.

However, it gets even better. ‘Section 75 protects the whole transaction, eg, pay 1p for a £10,000 car and it’s all protected,’ explains Martin Lewis. ‘Yet with a debit card, you’d only get back the amount paid on the card.

One couple featured on MoneySavingExpert.com managed to avoid losing £23,000 of their retirement savings due to Martin Lewis' tip.

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The couple had used the money to pay for a new kitchen. However, they faced losing their savings when the kitchen company went bust before the installation. Luckily, by paying by credit card for the first £200 of their new kitchen, the couple were able to get a refund for the full amount.

So when you’re next paying for a big home renovation or a brand new sofa online, consider paying for part or all of it on a credit card and protect your savings.

Just remember to pay your credit card bill on time.

Rebecca Knight has been the Editor on the Ideal Home Website since 2025; previously, she was the Deputy Digital Editor from 2022. She has a Master's degree in magazine journalism from City, University of London and has been writing about homes and interiors for 7 years. Her expertise lies in DIY projects, home decor trends and spotting the latest high street homeware buys that are about to go viral. She bought her first home in London last year and is currently renovating it (on a budget).