Credit Cards

[Phate]

Hello all,

right, I've just been on the phone to bank to make an appointment with my account manager. I do this once a month just to make sure my finances are in order, I'm not over spending etc (I do use Internet banking but I like to check anyway)

After the appointment was made the woman did spend about 10 - 15 minutes trying to convince me to get a credit card.

Currently I only use a debit card for everything, I work on the basis that if I can't pay for it, I can't afford it and it stops me getting into debt...

The only thing that is making me think about getting one is the added protection that if anything happens to the company I'm buying from my money is safe....

what other benefits are there? - I'm umming and ahhring about it really...bank is Lloyds TSB

Thanks
Jake

 

[Dolph]

Having a credit card and using it responsibily (which doesn't necessarily mean paying in full every month incidentally) will give you a credit history which means when you need to borrow money, you're more likely to get it at a good rate.

Also very useful in an emergency, especially if you don't keep all your cash in your current account.

 

[Confused]

Good to have one providing you use it sensibly, will help your credit rating.

 

[Knubje]

Having a credit card and using it responsibily (which doesn't necessarily mean paying in full every month incidentally) will give you a credit history which means when you need to borrow money, you're more likely to get it at a good rate.

Also very useful in an emergency, especially if you don't keep all your cash in your current account.

Quoted for good advice.

 

[Jez]

I have just taken delivery of a Shell Citicard.

Benefits include:
6% cashback on Shell fuel for the first 60 days.
3% cashback on Shell fuel thereafter.
1% cashback on all other purchases.

As long as you spend responsibly the card doesn't cost a penny, and i will be filling one of my (huge!) cars at ~87.9 later today through shell after redemption and enjoying 1% on everything else.

It doesn't make sense not to have one.

 

[platypus]

If used properly, they are better then debit cards. I certainly don't leave any money in my current account, so there is ostensibly never any cash in there.

The extra security should be pretty much enough to have you wanting one with the explosion of 'cybercrime' lately.

In addition to which I have a Nectar-American Express card, the points literally roll in. Use it to buy petrol at a BP station, shop at sainsburys, etc. Double points on everything. There are usually lots of special introductory offers. Find a good one that suits you.

 

[platypus]

I have just taken delivery of a Shell Citicard.

Benefits include:
6% cashback on Shell fuel for the first 60 days.
3% cashback on Shell fuel thereafter.
1% cashback on all other purchases.

As long as you spend responsibly the card doesn't cost a penny, and i will be filling one of my (huge!) cars at ~87.9 later today through shell after redemption and enjoying 1% on everything else.

It doesn't make sense not to have one.

Is that a special offer?

 

[Confused]

I have just taken delivery of a Shell Citicard.

Benefits include:
6% cashback on Shell fuel for the first 60 days.
3% cashback on Shell fuel thereafter.

You sure...? I've been looking at the little flyers on the pumps, and it states the cashback on fuel only applies when the pump price is greater than £1.00 per litre...

But the 1% cashback is good anyway, and like you say, no reason to NOT have one!

 

[platypus]

Hmmm. It's 99.9 at the Shell in Cambridge. Still, worth a punt if I can get that card in case of future price rises, 3% cashback is better then extra nectar points.

Mind I suppose its a moot point anyway. I doubt I'd get approved in the current climate.

Edit: Mind it only seems to be available on the US citi site?

 

[OllyM]

No, that's not true at all.

The flyers on the pump advertise 3p/6p a litre off, to make it easy for stupid people to understand I guess, which of course only applies when fuel is >£1/litre as 3% of 94.9p/l isn't 3p

The side affect is it seems to have confused people that would know what 3% off meant!

It's not promoted on Citi's website any more for some reason, but it is on the Shell site - http://www.shell.co.uk/home/content...ard_services/shell_credit_card_from_citi/smc/

 

[Jez]

Is that a special offer?

No, it has been running years. The only reason i have only just got one was due to me being on an arval card for fuel until recently.

 

[Jez]

You sure...? I've been looking at the little flyers on the pumps, and it states the cashback on fuel only applies when the pump price is greater than £1.00 per litre...

But the 1% cashback is good anyway, and like you say, no reason to NOT have one!

Definitely, its a percentage cashback offer. I have no idea why they advertise it as 3/6p.

 

[Phate]

Thanks for the info people, I'll have a chat with the bank tomorrow and see what rate they offer. I have a good credit rating at the minute and nothing outstanding so hopefully it should be good.

 

[platypus]

Thanks for the info people, I'll have a chat with the bank tomorrow and see what rate they offer. I have a good credit rating at the minute and nothing outstanding so hopefully it should be good.

I have a good credit rating, and still struggle. Best of luck though .

 

[OllyM]

Why does the rate matter if you're not going to borrow on it?

Going to your bank for everything is stupid too - get a decent cashback card and put all of your spending on it with a direct debit set up to clear it in full every month, then you gain something for absolutely no effort.

Quite why anybody uses debit cards for purchases these days I don't know when it both leaves you wide open to somebody emptying your current account and gives you nothing back.

 

[Phate]

snip

With regards to me going to the bank for everything being stupid....not really

Double checking my ingoing and outgoing finance when I pay for the privilege of an account manager and making sure everything in order is in my opinion, sensible.

 

[EffBee]

OP,

This issue comes up from time to time here, and I have posted my opinions before.

I seriously advise you and anyone else never to get involved with credit cards unless you are seriously independently wealthy and can afford to repay the total outstanding balance in full every month without having to think about it.

I worked for a credit card company years ago in an IT technical support role - but talked to a lot of people and got to know how the industry works.

There ARE (small) benefits to paying for goods by credit card.

Credit card companies know that you will eventually, in all liklihood, end up with a massive balance on your card that will take many years to pay off if you just pay the minimum payments. That is how they make their money.

Credit card companies know that people taking out credit cards honestly and mistakenly believe they will only use their card as a method of payment and that they will pay off the whole balance every month. They flatter you by offering expensive, exclusive-sounding credit cards with huge credit limits.

But god help you if things in your life turn sour and you can no longer afford the monthly repayments. They are utter utter ********

I only ever use a Mastercard pre-payment card so I have some of the security and convenience of a card, but can never go into debt, can safely make online purchases, and my exposure to fraud is limited by the amount I put on my card - average balance about £50 unless I load it up in cash for a specifi purchase (money available within 30 minutes of making the deposit).

I can't urge you strongly enough to avoid credit cards.

PS I also never use any kind of plastic/electronic payment directly accessing any my current accounts., ecxcept for a very few standing orders/direct debits which I am furiously trying to get rid of.

PPS I speak from experience.

 

[platypus]

With regards to me going to the bank for everything being stupid....not really

Double checking my ingoing and outgoing finance when I pay for the privilege of an account manager and making sure everything in order is in my opinion, sensible.

Going to your bank for a credit card is a pretty silly idea, without at least shopping around first.

I seriously advise you and anyone else never to get involved with credit cards unless you are seriously independently wealthy and can afford to repay the total outstanding balance in full every month without having to think about it.

Odd. I am far from independently wealthy and manage without problem.

Credit card companies know that you will eventually, in all liklihood, end up with a massive balance on your card that will take many years to pay off if you just pay the minimum payments. That is how they make their money.

Then don't make minimum payments.

I can't urge you strongly enough to avoid credit cards.

Good advice. For someone that cannot manage money.

 

[OllyM]

With regards to me going to the bank for everything being stupid....not really

Double checking my ingoing and outgoing finance when I pay for the privilege of an account manager and making sure everything in order is in my opinion, sensible.

So you pay for a package bank account?

You do realise they're only there to make you feel special and make the bank money? Most people don't use half of the features and even if they do they're usually available cheaper elsewhere

These 'meetings' with the bank are simply opportunities for them to sell you products - probably your fee paying current account and now a credit card. They are a big organisation that is there to make money from you, they are not your friend.

 

[[TW]Fox]

I seriously advise you and anyone else never to get involved with credit cards unless you are seriously independently wealthy and can afford to repay the total outstanding balance in full every month without having to think about it.

Don't be so ridiculous. Being able to manage a credit card properly has NOTHING to do with how wealthy you are and everything to do with your intelligence levels and how financially astute you are. You can earn £10 a month and provided you only ever spend £3 a month on your credit card, which you clear in full, there is no issue at all and you are not 'seriously wealthy'.

What you have said is true only of people with a particularly low IQ who have yet to grasp the concept that a credit card is not free money and no, it doesnt mean they can have a TV, a PS3 and 10 games for free.

But god help you if things in your life turn sour and you can no longer afford the monthly repayments. They are utter utter ********

So don't use them for buying things you've not got the cleared funds to pay for?!

I only ever use a Mastercard pre-payment card so I have some of the security and convenience of a card, but can never go into debt, can safely make online purchases, and my exposure to fraud is limited by the amount I put on my card - average balance about £50 unless I load it up in cash for a specifi purchase (money available within 30 minutes of making the deposit).

What a waste of time - you can also never go into debt if you dont spend more than the balance of your current account either. How is that too complex for you?

I can't urge you strongly enough to avoid credit cards.

This advice is relevent only to those with the financial management skills of a squashed fruit.