thinking about getting a credit card

OpenToSuggestions

OpenToSuggestions

OpenToSuggestions

Soldato
Joined
5 Aug 2006
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Location
Derbyshire
As title, I would not use it to run up debts, it would be used for:

-Online fraud protection? Also cover if you lose the card or get it stolen?
-Protection abroad?
-Cashback on all purchases?
-Get a good credit rating?

This is just off the top of my head from adverts I recall.

I dont think my debit card has any sort of protection.
Any help appreciated:)
 
I have one. The only reason I got one was to repair my torrential credit rating as when me and my wife split I was in pure financial limbo due to the house etc.

I only have a £200 limit on it, I put about £190 on it per month and pay it off in full. If you get one, make sure you pay off more then the minimum payment as otherwise you'll find yourself in a downwards spiral of interest and forever repaying the thing.
 
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just get one and be sensible with it

they come in very handy

i pay for around 90% of all the things i buy with mine and then pay the balance online from my bank account

as well as being protected it doesnt do the old credit rating any harm :)
 
mglover070588 said:
I dont think my debit card has any sort of protection.
Any help appreciated:)
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All debit cards have fraud protection. Credit cards just have extra default protection, which you shouldn't need unless you buy from ebay using it or buy from dodgy online shops.
 
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Thing is the whole "I use it online" doesn't really wash anymore. I have card protection on my debit card, so even if it used fraudulently I get everything back. All major online retailers accept debit cards, and nearly all except Solo.

They're good in case you're short one month and the boiler blows, but for online purchasing a debit card is just as good in most cases. If you don't have card protection on your cards :x
 
Stupid question, but I've had a credit card for 4 years now, and can't remember ever using it, does that mean that I have an amazing credit rating? Or do I have to have spent on it and paid it off successfully to achieve the good credit rating? :o
 
Doohickey said:
Stupid question, but I've had a credit card for 4 years now, and can't remember ever using it, does that mean that I have an amazing credit rating? Or do I have to have spent on it and paid it off successfully to achieve the good credit rating? :o
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Bold bit. Unused avaliable credit generally has an adverse effect on the rating. If you're not using it, cancel it. If you have it as an emergency, put an amount on it each month you can comfortably afford to pay back within 56 days (iirc, might depend on the cards as well) to avoid the interest, thus making your credit rating better.
 
MilanoChris said:
Bold bit. Unused avaliable credit generally has an adverse effect on the rating. If you're not using it, cancel it. If you have it as an emergency, put an amount on it each month you can comfortably afford to pay back within 56 days (iirc, might depend on the cards as well) to avoid the interest, thus making your credit rating better.
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Balls. Thanks for the tip!
 
They are good for protection against fraud. Debit cards don't have the same level of protection.

Speaking from personal experience - just this evening been on the phone to Amex because of fraudulent activity.

Rich
 
Indeed.

If your ripped off when using a credit card, its the credit card companies money and they are better at chasing that.

With a debit card its yours, and a hell of a lot harder to get back usually.

Anything I buy off the net is done so with my credit card.
 
Some credit cards seem completely useless too, for example I work on checkuts in tesco and the other day it was pretty quiet, so I started looking through the leaflets on the stand next to me, the tesco clubcard creditcard gives you an extra clubcard point for every £4 you spend, so 5points for £4 instead of the usual 4 points, but after the first 3 months where you get 0% on all purchases, it charges you interest from the date of the transaction! So essentially if you're using it, you'd have to pay with it, then go home and pay it off straight away to avoid paying interest. I don't understand why anyone would use it after the first 3 months.

The other one seems even worse, the tesco "bonus creditcard" doesn't give you any extra clubcard points but gives you "an interest payment back at the end of the year" but the amount you get back is actually just 1/12 of the interest you paid in that year on the card. And it's the same 0% on all purchases for 3 months then it charges you interest from the date of the transaction.

But then I've also heard that there's an American Express card that gives you 5% cashback for 3 months, then 1.5% after that. And you get 25days from the date of your statement before you have to pay any interest. But you have to have a minimum salary of 20k to be considered for it.
 
Rebelius said:
Some credit cards seem completely useless too, for example I work on checkuts in tesco and the other day it was pretty quiet, so I started looking through the leaflets on the stand next to me, the tesco clubcard creditcard gives you an extra clubcard point for every £4 you spend, so 5points for £4 instead of the usual 4 points, but after the first 3 months where you get 0% on all purchases, it charges you interest from the date of the transaction! So essentially if you're using it, you'd have to pay with it, then go home and pay it off straight away to avoid paying interest. I don't understand why anyone would use it after the first 3 months.
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That's complete nonsense. No wonder so much of the country doesn't know how to manage their finances.

If you use the card for purchases, and pay by the due date on your statement, you will not pay interest on purchases. You do, however, pay interest straight away if you withdraw cash from a cashpoint - so don't do it.

Tesco said:
Interest Free Period

Maximum 46 days for purchases if you pay your balance in full and on time, and have paid the previous month's balance in full and on time. There is no interest free period on cash advances or money transfers. Interest free period on balance transfers only applies during the introductory period.
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I have one that I haven't activated - but there's £500 there if I'm about to be forced onto the streets. I've been close to using it, but reminded myself of the debt dangers.
 
It's worth getting a cashback one. If you pay it off each month then it does you nothing, but good.
 
fini said:
It's worth getting a cashback one. If you pay it off each month then it does you nothing, but good.
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You got a credit card fini? I am thinking of getting the Barclay's cashback one :) Either that or the Natwest Gold card.

Anyways, give me a call sometime... haven't talked in ages! Did I tell you I now have a job :)
 
No I've not got a credit card at the moment; I need to get around to taking my own advise at some point..

No you didn't tell me about your job - will speak to you soon. Too busy with my dissertation and own job at the moment!
 
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