Should I get a credit card?
- Thread starter R.C.Anderson
- Start date
No seriously, only borrow the money you need to for specific purposes.
If you need a car get a loan or car finance.
If you get paid 4 weekly and have a difficult month once a year, get a small overdraft to smooth the bills out, great.
Don't bother doing your grocery shop on a credit card so you can earn 2% extra nectar/club card points or whatever. You could save more shopping in ASDA.
If you need a car get a loan or car finance.
If you get paid 4 weekly and have a difficult month once a year, get a small overdraft to smooth the bills out, great.
Don't bother doing your grocery shop on a credit card so you can earn 2% extra nectar/club card points or whatever. You could save more shopping in ASDA.
Soldato
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And what about using a 0% credit card to pay for your car insurance in one lump sum, thereby saving hundreds in interest over if you paid it monthly? besides, i'd much rather do that than dip into my Halifax overdraft which charges £1 per day!
Soldato
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I got my first credit card for emergency use only
Two months later I had a big debt, but my lounge was furnished with a top of the range plasma £2,500, £2,000 worth of audio equipment, and a new PC
Credit Cards are brilliant
once I paid it off, I bought a fancy weeks holiday to New York staying in a VERY nice hotel.
after using CCs for over ten years, I've not once used it for an emergency lol
Two months later I had a big debt, but my lounge was furnished with a top of the range plasma £2,500, £2,000 worth of audio equipment, and a new PC
Credit Cards are brilliant
once I paid it off, I bought a fancy weeks holiday to New York staying in a VERY nice hotel.
after using CCs for over ten years, I've not once used it for an emergency lol
I have one and use it for everything id normally buy.
Better buyer protecton, better credit rating and no cost to me at all. Also means security abroad and I earn a percent on all my spendings too.
Really no downside for me but the key thing is.... I can trust myself not to go mad with it- can you?
Better buyer protecton, better credit rating and no cost to me at all. Also means security abroad and I earn a percent on all my spendings too.
Really no downside for me but the key thing is.... I can trust myself not to go mad with it- can you?
As above, ensure that you pay it off each month and it won't cost you anything. Even better go for the rewarding cards. I have the mbna dual card AMEX/VISA, gives me 2/1 points per pound spent, which certainly adds up. Can swap these for a number of rewards.
Also if you're interested in your credit rating, do one of the free trials from equifax/experian. They do require you to sign up with a card, but as long as you cancel within a month you won't get charged. Also when you ring up they'll try and offer all sorts for discount, just be firm and request they close the account. Can also make some money by going through topcashback/quidco etc.
Also if you're interested in your credit rating, do one of the free trials from equifax/experian. They do require you to sign up with a card, but as long as you cancel within a month you won't get charged. Also when you ring up they'll try and offer all sorts for discount, just be firm and request they close the account. Can also make some money by going through topcashback/quidco etc.
It's a mugs game when you want credit in the future and were too stupid to not create some credit history for yourself.
Also, if you are paying it off full end of every month, yeah this is encourages, but then you are effectively taking your salary at the end of the month, putting it back on the card, then you will have to end up using it again during that month.
No, not really.
Let's use some simple numbers.
You are paid £1,000 on January 1st. Let's assume you've already secured your credit card with a limit of a £1,000.
During the month of January you put all purchases on the credit card and spend, say £500.
You're then paid £1,000 on February 1st. Your current account is now £2,000. You use £500 of that to pay off your statement on the due date, and continue to use your credit card for all purchases through the month of February.
You don't have to play catch up if you don't want to. That's using credit cards for credit, which isn't advisory. You simply pay off the balance in full with the money you've already been paid.
Soldato
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Long story short if you don't have a credit card out of choice, then you are an idiot.
FYI most credit cards do not charge you interest if you pay it off in full at the end of the month, or the last time i looked it was 59 days. So just get a card and do this.
Or you could increase debt to whatever you want it at or max 65% of available credit. This to me is useful in other ways, but you build your rating faster @ 2% interest per year, taking advantage of balance transfers and then paying them off (decreasing debt) or 0% on purchases (increasing debt). Or you could just do perma balance transfers but its best to pay off £1k card when BT period runs out, then take 0% on purchases and run up that same £1k.
And that is where you are wrong, loans like like 4-6%
Credit cards are around 1.5-3.5%
FYI most credit cards do not charge you interest if you pay it off in full at the end of the month, or the last time i looked it was 59 days. So just get a card and do this.
Or you could increase debt to whatever you want it at or max 65% of available credit. This to me is useful in other ways, but you build your rating faster @ 2% interest per year, taking advantage of balance transfers and then paying them off (decreasing debt) or 0% on purchases (increasing debt). Or you could just do perma balance transfers but its best to pay off £1k card when BT period runs out, then take 0% on purchases and run up that same £1k.
And that is where you are wrong, loans like like 4-6%
Credit cards are around 1.5-3.5%
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![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
Worst post of the week.
Credit cards are excellent. Simply set up a direct debit to pay it off in full every month and never use it for something you dont have the money for and that instantly nullifies the argument about getting into debt, because if you run the card that way, you can't.
You are then free to benefit from:
a) Protection from fraud and problem retailers under the Consumer Credit Act
b) Rewards and promotions from card issuers
c) Specialist cards for things like free-free foreign transactions abroad.
d) Being able to do things like rent cars etc and leave security deposits without hassle or faff
Seriously, why WOULDNT you want a selection of credit cards for different purposes unless you lacked the willpower to not spend what you dont have?
This, so this. Especially the protection. It's so much harder to argue your point when the money has already left your bank, this is not the case when you spend on a CC and generally they fight your corner pretty well when it comes to disagreements with a seller etc
Many of them give you some kind of points/reward system as well. It's a win win situation. Just pay it off every month and you are sorted.
You can use credit cards in ASDA, too ...
And get mugged on the way out. Or in store, why not
Hate that place (our local one anyway)!
Im seriously considering one when my mortgage is complete and the house is bought. So far ive done well not having one and every bit of credit ive applied for, car/mortgage has been approved no questions asked. So not having one has never caused me an issue.
I would just like one their to help in case of an unexpected bill i.e. Car needing new tyres for example. Wouldn't even keep it in my wallet if possible. But as Fox highlights above they carry lots of good reasons, its just finding a good deal out there at the moment.
I would just like one their to help in case of an unexpected bill i.e. Car needing new tyres for example. Wouldn't even keep it in my wallet if possible. But as Fox highlights above they carry lots of good reasons, its just finding a good deal out there at the moment.
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Man of Honour
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Only if you abuse it.
I use it to buy things online as it offers me more protection than my debit card. I also clock up points with it. So it's win win really. I pay it off in full every month, or if I can't I make sure I pay it off as quickly as possible (this rarely happens fortunately).
However they allow a bit of flexibility and can offer good things if you use it sensibly.
I use mine for any purchase online really and just top up at pre statement date to clear the balance to zero. If it's a bigger item then I pre load the card with most of the value and buy the item just after statement comes in, repay the last bit and back to zero before the next month hits. Also set up a DD for the card to take money for minimum payment if you forget or are unable too is a good backup.
Just be sensible with what you can afford.
Just be sensible with what you can afford.