Total lack of self awareness here
Too many credit cards? aka "The Credit Card thread"
- Thread starter robfosters
- Start date
I meant credit karma.. not credit monkey.
It doesn't matter. Both provide subjective opinions of your data. Neither are factual representations of how lenders assess your credit files.
I never said it was.
You don't say very much of value tbh.
Haha OK.
Commissario
When I was rebuilding my credit, the first credit card I got was an Aqua card. I've not used it since February because I have other cards which are much better. Just got notification that they've dropped my limit from £3200 to £1000. That's no great loss.
While I agree with the sentiment, they've already got your data, you're just accessing it by signing up for free.
I use Credit Karma, Clearscore and MSE Credit club to keep an eye on things, mainly conscious of searches. My wife is also signed up to these services and found out someone is using her details to sign up to multiple betting sites, at last count is was 8 different companies. Luckily they are just soft searches but it's rather frustrating.
Random musing..
I just applied for a new 0pc balance transfer + 0pc fee debt shift card. Which I do every year. (got a free 10 pounds for doing it too. Win!)
But how much credit is too much?
I think I have an irresponsible amount (credit limit not debt).
Should I really have access to. 60k of credit. With a salary of 55k?
I think this is excessive. Especially in the market we are in now
I just applied for a new 0pc balance transfer + 0pc fee debt shift card. Which I do every year. (got a free 10 pounds for doing it too. Win!)
But how much credit is too much?
I think I have an irresponsible amount (credit limit not debt).
Should I really have access to. 60k of credit. With a salary of 55k?
I think this is excessive. Especially in the market we are in now
Man of Honour
- Joined
- 21 Nov 2004
- Posts
- 45,937
There seems to be no limit to the loans and credit cards I can get, well over what I earn. I don’t take it, but it could easily land someone in a mess.
Soldato
Up til about 10 years ago I had access to over 50k of credit on cards. Daft, so now I have one CC, with a limit of 3.5k, which is more than enough.
Soldato
Got the cash to pay off all my 0% credit but stuck it in premium bonds instead for a punt, will pay it off next October when it runs out
Soldato
I already have a Halifax Clarity credit card, mainly for the free use abroad (purchases).
I have been thinking about getting a reward card and looking on MSE the Amex Rewards card with no annual fee might be a good choice. Is this a decent choice any others to consider?
(I was also looking at the American Express Nectar Credit Card but see it comes with a £30 annual fee after the 1st year.)
Will be paying the card off in full each month.
I have been thinking about getting a reward card and looking on MSE the Amex Rewards card with no annual fee might be a good choice. Is this a decent choice any others to consider?
(I was also looking at the American Express Nectar Credit Card but see it comes with a £30 annual fee after the 1st year.)
Will be paying the card off in full each month.
Soldato
I've had Amex for years and can recommend them, no hassle when I had to do a couple of chargebacks as well, some decent offers on the cards from time to time also and usual cashback for every day spending.
Same as you, I pay it off in full each month, I just configured max payment via DD for that.
The paid for one works out better when you churn enough through the card in a year, otherwise the fee-free ones pay a bit less on the rate but there is no downside to having it.
They do offer a ref scheme, haven't checked what it is lately, but make sure you get one done as it pays something to the person who refs and the person who takes out the card bit like the Octopus one.
Soldato
Never owned a CC. I just couldnt bring myself to get one. Never liked having 'debt'. I know they have their advantages though.
Soldato
This has been discussed earlier in the thread but if you're sensible you don't wind up paying any interest, there are lots of benefits to using a CC over a debit card:
- Cashback on purchases
- Card member benefits (deals or perks)
- Better buyer protection
- Bank Statement looks way cleaner (one monthly outgoing to CC company instead of multiple small spends)
Two main ways to use them sensibly:
1. Treat it like a Debit Card. Always pay in full via DD, never spend money on it you don't have funds for in your bank account. This way it's not a debt-building instrument, it's just a way of getting benefits and having no interest costs.
2. Interest free card for larger purchases. Have a plan to pay it off before the Interest Free period ends. Good for example if you need to buy some larger stuff and don't want to take out finance or loans.
I don't think other uses of the cards are sensible, but I'll put my petrol, shopping, amazon purchases etc onto it, stuff I'm having to buy anyway, and get cashback and other benefits.
Well get rid of some cards then if you think you can't trust yourself with that credit facility.
If you can then what's the problem?
When I left the psychotic ex all those years ago, she'd left me in a right financial state. I didn't know much about credit either but she'd taken pay day loans out in my name back when you just had to tick a box and even had them paid to her account. Yet I was deemed responsible for them.
I couldn't have bought a pencil on credit then. Now, despite being unemployed due to disability I have a good credit score, with plenty of available credit that I manage very well. It took me a long time to learn but it started with a Vanquis credit card with a £500 limit and an insane interest rate. I used it to pay for food shopping and paid it off in full each month. There's now an insanely high available credit limit at a pretty decent interest rate. This card just gets used for fueling the car now, I'll always keep it as it shows a long standing financial relationship.
I now have a total of 2 credit cards, a small loan and an overdraft and am regularly being offered new financial products which I don't need.
I couldn't have bought a pencil on credit then. Now, despite being unemployed due to disability I have a good credit score, with plenty of available credit that I manage very well. It took me a long time to learn but it started with a Vanquis credit card with a £500 limit and an insane interest rate. I used it to pay for food shopping and paid it off in full each month. There's now an insanely high available credit limit at a pretty decent interest rate. This card just gets used for fueling the car now, I'll always keep it as it shows a long standing financial relationship.
I now have a total of 2 credit cards, a small loan and an overdraft and am regularly being offered new financial products which I don't need.
Soldato
- Joined
- 24 Sep 2007
- Posts
- 5,179
Good. You don't need one. Credit cards are unnecessary, it is far better to pay for everything outright and never get in to any debt. The complete avoidance of debt (aside from perhaps a mortgage) is an excellent strategy in life. The "perks" of a credit card are not that significant, and definitely something that can be lived without, particularly when it means you have no chance of ever getting in to credit card debt. Keep it up.