Yeah, but you're never getting a mortgage without a credit history.
Too many credit cards? aka "The Credit Card thread"
- Thread starter robfosters
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Yeah, but you're never getting a mortgage without a credit history.
But you don't have any debt if you pay off your balance every month and you enjoy the benefits. No downsides at all.
Soldato
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It depends if you are ever going to be tempted to use more than you can actually afford (pay off at the end of the month). If you have the self-discipline to never spend more than your means, then it's irrelevant. If it's going to prove a temptation, then you should ask for the credit limit to be greatly reduced. Better still, if you don't need the credit, then consider getting rid of your credit cards completely, and do everything on your debit card. This will ensure you never fall in to the trap of paying credit card interest.
Soldato
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You don't need a credit card for mortgage lenders to build a financial profile on you.
Soldato
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I think the benefits are very overrated and they are just a way to convince people to get a credit card in the hope they then get in to debt. I appreciate what your saying is correct, but only for people in a strong financial position with good self-discipline. There are many people that aren't like that.
There's other products, yes. Used correctly a credit card is not a problem
Its more that should anyone have a credit limit over thier salary?
It was feels like asking for trouble?
Im fine with it. But it does seem a tad irresponsible
Soldato
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Whilst I agree it can be done, a lot of people can't do it, and the credit card issuers know this. Thus anyone saying they don't have, don't need and don't want a credit card, I say excellent!
Soldato
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The whole concept of giving people credit cards is irresponsible, the interest rates are terrible, and it gets a lot of people into debt (not necessarily you). The whole business model is irresponsible. Personal credit is best avoided completely if at all possible.
Soldato
They're not right for everyone but I've had a lot of benefits from mine, and I've not paid a single penny of interest.
You've saved with Amex Offers
£752.66
This doesn't include cashback on all purchases, I can't get a report of how much this is, but I'd say this is usually around £100 or so per year. Have been with Amex since 2015 so probably another £900-£1000 cashback on top of the above, not a bad average return.
I think people can make up their own minds as to whether they trust themselves with one or not though, and if not, that's fine too.
You've saved with Amex Offers
£752.66
This doesn't include cashback on all purchases, I can't get a report of how much this is, but I'd say this is usually around £100 or so per year. Have been with Amex since 2015 so probably another £900-£1000 cashback on top of the above, not a bad average return.
I think people can make up their own minds as to whether they trust themselves with one or not though, and if not, that's fine too.
I've got 12k on a 0 percent deal as I'm using the cash to pay for a van
Basically it's a 0pc loan.. Not bad when most actual loans are 7pc
Handy for work expenses like travel & hotels, keeps it all separate from my actual account.
Soldato
That's really good but such a large figure on a card needs even more care and discipline than usual!
Yeah it does I've basically been spending all my day too day for months as well as a balance transfer.
While saving nearly all my salary into premium bonds.
When I find a van I want I can just withdraw the cash and then move to paying off the cc.
Probably will be paying off at 500 s month
The deal is 14 months so may need to do another BT at the end. Or if no deals I can just pay it off from my isa.
Does it? Setup a minimum DD payment for each month once, and shift it all to long period 0% balance transfer card before the end of the initial 0% purchase period? Rinse and repeat until paid off. It's no wonder people struggle when that level of mathematics and organisation is considered hard.
I've credit card tarted loads over the years to buy large purchases instead of loans. Nothing wrong with it imo. It's infinite 0% credit, minus any balance transfer fees for the duration of your tarting. It's much more flexible than a loan as well.
People who get credit cards and don't understand how they work are the danger. It comes down to financial awareness and lack of financial education, which a lot of people are saying should be taught in schools, which I agree with. I mean surely that over history/religion.
Soldato
The risk is that you need a plan to pay it back, and if you f.ex lose your job, or don't have investments/savings to cash in, you can owe a large balance that you can't easily pay off.
This is no different to the risk of having a personal loan though I hasten to add.
In general I try and avoid large loans where I have no collateral (credit card or otherwise!). But needs must, and I've had a few in my time.
Yeah I've certainly never had such a big CC debt. Before this i used to bounce round 3kish
Id never stack this amount up without the ability to pay it back.
Its saving about 2k doing it via CC vs loan
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Soldato
Usually I'd say "can I have your stuff?" but in this case I don't want the debt!
Yeah sucks to be my family on so many levels tbh. CAT5 in every room tho!