Should I get a credit card?

R.C.Anderson · 21 Oct 2013 at 03:21

Something I've been considering for a while, but can't really decide if I should or not.

I don't need it for the credit & wouldn't use it as such, but I've heard it's quite good to get a 0% one & ensure it's paid off every month to improve credit ratings.

Currently, I think the only things I've ever had that would effect my credit rating are:
Phone contract (about 3.5 years worth)
Utility bills (also about 3.5 years worth, but all shared with other people if it makes a difference)

Should I look at getting a credit card to try and improve my credit rating somewhat, so when I come to get a mortgage, it looks better?

ricky1981 · 21 Oct 2013 at 03:39

Yeah, as long as you pay it off in full every month then it's worth building up your credit score. Some offer a reward points system so as long as you only spend EXACTLY what you would spend without one then you can end up better off (although not by much unless you are on a good wage and spend heavily).

I did the same through uni and my first job and it made approving my mortgage much easier according to the bank.

GTanny · 21 Oct 2013 at 06:54

always worth having but try to pay it off every month, even the highest APR bad credit cards are 0% if you pay them off every month.

just keep control as you will very soon end up with a limit which is very hard to pay off in a single month.

Jester* · 21 Oct 2013 at 07:50

I have one and just use it for transactions online, paid off every month.

Keeps the credit score ticking!

Russinating · 21 Oct 2013 at 07:53

Yes, definitely. Use it for everything you possibly can and pay it off in full every month.

If you've never had a credit card before you may struggle to get anything but a standard one with your bank, but a year after that start looking at ones that give you bonuses or perks.

I was in the same position as you - I even got declined a T-Mobile contract because I didn't have a credit history - and now I have about 10.

The_blue · 21 Oct 2013 at 09:08

No, it's a mugs game.

Cyclone · 21 Oct 2013 at 09:11

There's always the prepaid credit cards where you can only spend what you put on it. Having loads of money to spend on a normal card is such a temptation.

Outline · 21 Oct 2013 at 09:12

Echoing what has been said, get one and only use it for what you know you can afford. Pay it back immediately and build up your credit score. Profit?

ricky1981 · 21 Oct 2013 at 09:18

The_blue said:
No, it's a mugs game.

Only if you fall into the trap of spending more just because it's available (which is obviously want banks want you to do).

We stick our supermarket shop, petrol and utilities (where possible) on the card as these are all things where we'd spend the same whether we had a credit card or not. The danger is if you start putting lots of smaller items or any type of "treat" that you can't really afford.

The only other thing we would ever use our card for is emergencies (flights back to the UK for family illness for example). Anything else big we just save for or stick on the mortgage if it's essential.

Craig321 · 21 Oct 2013 at 09:18

Don't see why not, they only benefit you if you can pay it off in full every month.

Russinating · 21 Oct 2013 at 09:23

Cyclone said:
There's always the prepaid credit cards where you can only spend what you put on it. Having loads of money to spend on a normal card is such a temptation.

This doesn't affect your credit rating as they're basically just a gift card. I mean... they don't provide credit so why would you think they affect it?

Scougar · 21 Oct 2013 at 09:40

If you don't need a credit card the only reason to get one, is to build up your credit history. I.e. It shows evidence of you borrowing money, so in the future they can judge you if you need to borrow.

Mikey1000 · 21 Oct 2013 at 09:40

Good advice to pay it off every month.

Get one that gives you points, like the Tesco credit card - points everywhere you use it, plus link it to your Tesco points card and get twice the points when you use it in store.

With the x4 (or x3) offer I manage to get a free holiday every year!
Now that's worth it by doing nothing more than spending money you would normally spend but spending it on the card!

AmyS · 21 Oct 2013 at 09:43

Scougar said:
If you don't need a credit card the only reason to get one, is to build up your credit history. I.e. It shows evidence of you borrowing money, so in the future they can judge you if you need to borrow.

This, really. My sister thought when she applied for a mortgage that the fact she didn't have credit cards would show she was a sensible spender but the opposite is true, proving that you DO repay the credit is beneficial.

Soundood · 21 Oct 2013 at 09:45

I just got one myself, the bank (Lloyds) let me know I had been pre approved,

so after some discussion about credit score etc, I decided to go with it, they gave me £10K, not that I will use it,

but I do pay for a lot of things with it now, including online purchases for the protection,

and of course, pay it off in full each month

PhilGQ · 21 Oct 2013 at 09:46

If you want to be a slave to someone else (and not in a good way).

Then you should smoke, do drugs and get a credit card. If not don't do any of them.

Mortgages, Loans and overdrafts can all help with cash flow, credit cards only help you mismanage your cash flow. Stay well clear.

The argument about being careful seems a good one, until you lose your job, have big car repair or some other expensive emergency. Your credit card means you kick the problem into the long grass instead of dealing with it.

Basher · 21 Oct 2013 at 09:50

Scougar said:
If you don't need a credit card the only reason to get one, is to build up your credit history. I.e. It shows evidence of you borrowing money, so in the future they can judge you if you need to borrow.

And rewards, of course ...

Cyclone · 21 Oct 2013 at 09:50

Russinating said:
This doesn't affect your credit rating as they're basically just a gift card. I mean... they don't provide credit so why would you think they affect it?

I never said they affect your rating. Just saying having a credit card with all that money can be a bad thing as there is temptation to spend it. Then, obviously, you have to pay it back.

Basher · 21 Oct 2013 at 09:51

PhilGQ said:
If you want to be a slave to someone else (and not in a good way).

Then you should smoke, do drugs and get a credit card. If not don't do any of them.

Mortgages, Loans and overdrafts can all help with cash flow, credit cards only help you mismanage your cash flow. Stay well clear.

The argument about being careful seems a good one, until you lose your job, have big car repair or some other expensive emergency. Your credit card means you kick the problem into the long grass instead of dealing with it.

Ignore this. It's complete rubbish.

Mikey1000 · 21 Oct 2013 at 09:52

PhilGQ said:
If you want to be a slave to someone else (and not in a good way).

Then you should smoke, do drugs and get a credit card. If not don't do any of them.

Mortgages, Loans and overdrafts can all help with cash flow, credit cards only help you mismanage your cash flow. Stay well clear.

The argument about being careful seems a good one, until you lose your job, have big car repair or some other expensive emergency. Your credit card means you kick the problem into the long grass instead of dealing with it.

RUBBISH!!!

If you can't make a credit card work for you then cut it up with a pair of scissors