Credit card or no credit card.

diamount · 3 Jul 2017 at 16:56

Gigabit said:
So the only people who get a limit increase are those who are constantly in debt?

Precisely, it's the never-ending cycle of debt. When the customer looks like they're getting a hold of their finances, i.e not spending and just paying it off. The credit card company will increase the credit card limit and in weak-willed individuals this means impulse purchases.

Top_gun · 3 Jul 2017 at 17:39

Perhaps, it's worth it if you have one of the cashback cards like I have. A little bit here and there adds up over a year.

Ace Modder · 3 Jul 2017 at 18:01

I have 3 credit cards.

One with a limit of £5650 - this is used for any work expenses, and then I put my claim in each month with my employer, and when paid I pay it off in full. So never had a penny interest. This card started off in 2013 with a £500 limit, but they keep increasing it.
Another has a £1700 limit. This has a zero balance currently, but I also use this every month for personal purchases, I pay it off in full each month. So no interest here either. Had this around 5 years.
Finally I've just opened a 3rd card which has a £7,000 limit, I did this because I could get a 0% APR on cash advances and card transfers. There was a 0.5% fee to do this, I used it to pay off a loan I had which was at £4000 @ 6.9% APR. So basically a £20 fee to swap from 6.9% APR to 0% APR. I will not be using this card, I am making the payments the same as the loan so it will be cleared sooner than my loan would have and thus paying no more interest.

helpimcrap · 3 Jul 2017 at 18:11

It is better to have a card and use it on occasion making sure you discipline yourself and pay it off right away.
Emergency use only. Like having stack of money under the bed.
I use mine instead of loans - paid solar panels off with it then balance transfer for 0% interest to a 2nd card. When that 0% runs out i transfer to another for couple of years. Only paid £500 charges instead of about £2-3k interest.

Salty22 · 3 Jul 2017 at 21:30

DampCat said:
I don't have a credit card and my score is great.

I don't know that mine is "great" as such but i never get refused anything borrowing wise, im not clued up with this kinda thing tho.
Don't really understand why people need to build a credit rating, i got lent plenty enough to buy my house etc

413x · 3 Jul 2017 at 21:41

Lol I just checked my credit limit and is 24k. Which is pretty excessive really.
I'm using 2k usually at any one time (partly for monthly spend, part a 0pc deal).

Good thing about a high limit is it indicates you are using less than X percent of the total. Ie, you are sensible. But I think I'll soon be cancelling one as it's not been used in a year

Deleted member 77746 · 3 Jul 2017 at 22:19

Best way not to get into debt is not to spend like tomorrow will never come. I'm learning.... the hard way!

I've closed my Paypal account, closed my store cards, closed credit cards and starting to cut them up one by one. It's a better feeling to know there is light at the end of the tunnel.

HungryHippos · 3 Jul 2017 at 22:40

I use my credit card like a debit card, and have it set to take full payment automatically each month.

Then again I do have self control and don't go crazy, as I do have to pay it back.

platinum87 · 4 Jul 2017 at 04:45

diamount said:
Precisely, it's the never-ending cycle of debt. When the customer looks like they're getting a hold of their finances, i.e not spending and just paying it off. The credit card company will increase the credit card limit and in weak-willed individuals this means impulse purchases.

This is the one negative thing about credit cards, the only thing i don't understand is how people can use that reason, as it implies that either you think i am weak willed, or that you yourself are weak-willed.

diamount · 4 Jul 2017 at 06:03

platinum87 said:
This is the one negative thing about credit cards, the only thing i don't understand is how people can use that reason, as it implies that either you think i am weak willed, or that you yourself are weak-willed.

I don't understand. Assuming you're not in debt due to financial emergencies, then what else would you call it? Simply pointing out the cc companies prey on those individuals by increasing it each time when they purchase stuff they cannot afford.

atpbx · 4 Jul 2017 at 06:54

My Barclaycard credit limit is something like £11k.

I ordered my graphic card and monitor on it last week and I'll be paying it off once the statement arrives.

platinum87 · 4 Jul 2017 at 10:08

diamount said:
I don't understand. Assuming you're not in debt due to financial emergencies, then what else would you call it? Simply pointing out the cc companies prey on those individuals by increasing it each time when they purchase stuff they cannot afford.

My point is basically answering the question of the thread, should i have a credit card or not, the answer is absolutely yes.

The only reason anyone can give you no as an answer is by saying you are weak-willed and prone to impulse buying when you cannot afford it.

Thus anyone who recommends no is directly insulting the OP.

And sometimes i just quote someone randomly when posting....

MikeTheNative · 4 Jul 2017 at 10:19

I use it for everything apart from PayPal stuff, pay it off full at the end of the month. I had a Barclaycard as my first card ever with a starting limit of £400. It was always maxed and i even had to pay it off as soon as my bill come in to clear it and be able to use it again. They raised my limit to £800 then to £1600 and now it's at £2500 without me requesting for a limit raise.

killsta · 4 Jul 2017 at 11:20

I've 2 cards with a combined limit of £20k. Get used regularly, but I'm not a child, I only purchase what I can pay off instantly and use them for the protection and usage abroad. Current balance across both is about £600.

I use debit cards for all day to day card present purchases, credit for any large items and for all online/abroad transactions.

I have friends who use credit cards as a means of extra money i.e. so they can spend what they don't have sitting in their current account. Not a wise idea, and quite easily becomes a slippery slope.

diamount · 5 Jul 2017 at 07:23

platinum87 said:
My point is basically answering the question of the thread, should i have a credit card or not, the answer is absolutely yes.

The only reason anyone can give you no as an answer is by saying you are weak-willed and prone to impulse buying when you cannot afford it.

Thus anyone who recommends no is directly insulting the OP.

And sometimes i just quote someone randomly when posting....

Because plenty of those people exist, I'd say it's the majority of people because credit cards wouldn't exist without those people as they are the chief way those companies make money. If everyone paid off their CC every month without accruing interest then there is no financial incentive for companies to offer them.

KNiVES · 5 Jul 2017 at 08:20

I only have one simply because I needed to build a credit history up

My spending habits are exactly the same, just petrol and shopping etc. Maybe people spend more than they would otherwise but they end up paying for it all just the same. It's not 'free money'

platinum87 · 5 Jul 2017 at 08:55

KNiVES said:
I only have one simply because I needed to build a credit history up

My spending habits are exactly the same, just petrol and shopping etc. Maybe people spend more than they would otherwise but they end up paying for it all just the same. It's not 'free money'

If i were you, what i would do is.

1) Apply for a 0% purchases card

2) Spend as usual, petrol, shopping etc.. (Paying the minimum)

3) After some time passes you begin to nearly max the card, but not more than your original card.

4) Apply for a 0% balance transfer card.

After that you will have 3 cards, two of which are empty, and the balance you owe on the newest, you will have in your current account as you've not been paying it off, all the time you've paid no interest also, well except the balance transfer fee, but that is 2.5-3% and that would be over a period of 2+ years so its fine.

Assuming say you have a £2k limit, after that process you will have combined £6k limit, or more, thus you have more available credit, and therefore your rating is improved.

mark1284 · 5 Jul 2017 at 09:16

If you have a wife with a hunger for spending... no

Bassmansam · 5 Jul 2017 at 09:20

I have around 800 on a credit card as i just bought a flat and had to furnish it. I am just doing a balance transfer now so I won't have to pay any interest. I do have 4k spare if I wanted to pay it off on one go but no need to with a 0% card.

413x · 5 Jul 2017 at 17:31

platinum87 said:
If i were you, what i would do is.

1) Apply for a 0% purchases card

2) Spend as usual, petrol, shopping etc.. (Paying the minimum)

3) After some time passes you begin to nearly max the card, but not more than your original card.

4) Apply for a 0% balance transfer card.

After that you will have 3 cards, two of which are empty, and the balance you owe on the newest, you will have in your current account as you've not been paying it off, all the time you've paid no interest also, well except the balance transfer fee, but that is 2.5-3% and that would be over a period of 2+ years so its fine.

Assuming say you have a £2k limit, after that process you will have combined £6k limit, or more, thus you have more available credit, and therefore your rating is improved.

I've never paid a balance transfer fee. And I've done it 4 times. There's always an offer for 0pc fee. My last one, barclaycard were even giving 20 quid cashback and 0pc fee and 0pc on transfers for 2 years.