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  • FIRST POST
    • simonineaston
    • By simonineaston 17th Mar 17, 11:21 AM
    • 78Posts
    • 29Thanks
    simonineaston
    Do I need a credit card???
    • #1
    • 17th Mar 17, 11:21 AM
    Do I need a credit card??? 17th Mar 17 at 11:21 AM
    What's folks opinion on this very simple question? I'm in full-time work, own my own home and am solvent - I don't really have a need for a credit card, so am I missing something? Are there compelling subtle reasons tha I should apply for one?
Page 1
    • Ebe Scrooge
    • By Ebe Scrooge 17th Mar 17, 11:34 AM
    • 3,794 Posts
    • 3,149 Thanks
    Ebe Scrooge
    • #2
    • 17th Mar 17, 11:34 AM
    • #2
    • 17th Mar 17, 11:34 AM
    A credit card, if used sensibly, can give several benefits.


    Some cards will give you rewards for spending on them - airmiles, cashback, clubcard points, M&S points, etc.


    If you ever want to hire a car, most hire companies will only accept a credit card as payment.


    But the biggest bonus is Section 75 protection. If you buy something for between £100 and £30,000, and the company goes bust, or fails to deliver, the credit card company themselves will reimburse you.


    Using a credit card can also help to improve your credit history, useful if you ever want a loan or a mortgage in the future.


    The important points to remember : Firstly, only use the card for purchases you would have made anyway - don't look upon it as "free extra cash". But most important of all - pay off the balance every month, in full, when the statement arrives. As well as reflecting positively on your credit file, it means you'll never pay any interest. The safest thing is to set up a Direct debit for the full amount. That way, there's no danger of you forgetting, or missing a payment if you're on holiday or whatever.
    I may not know much about art, but I know what I like.
    • StevieJ
    • By StevieJ 17th Mar 17, 11:37 AM
    • 19,226 Posts
    • 32,116 Thanks
    StevieJ
    • #3
    • 17th Mar 17, 11:37 AM
    • #3
    • 17th Mar 17, 11:37 AM
    What's folks opinion on this very simple question? I'm in full-time work, own my own home and am solvent - I don't really have a need for a credit card, so am I missing something? Are there compelling subtle reasons tha I should apply for one?
    Originally posted by simonineaston
    Plenty, but No. 1 is section 75 (consumer credit act 1974).
    Paying for goods or services by credit card is now a major part of daily life, with many people preferring this method of payment to using cash or cheques. An advantage of using a credit card is that, under section 75 of the Consumer Credit Act 1974, customers who have a claim against a supplier for breach of contract or misrepresentation will generally have an equal claim against the card issuer.
    http://www.financial-ombudsman.org.uk/publications/ombudsman-news/31/creditcards-31.htm
    ‘Hard as it is to say now.. I look forward to a United States of Europe, in which the barriers between the nations will be greatly minimised and unrestricted travel will be possible.’
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    • molerat
    • By molerat 17th Mar 17, 11:41 AM
    • 16,797 Posts
    • 10,995 Thanks
    molerat
    • #4
    • 17th Mar 17, 11:41 AM
    • #4
    • 17th Mar 17, 11:41 AM
    Don't have to carry cash.
    Large purchases are covered by s75 protection.
    Interest free purchase periods allowing you to save the money in high interest accounts.
    Balance transfer cards - as above.
    Car hire - often need a credit card.
    www.helpforheroes.org.uk/donations.html
    • simonineaston
    • By simonineaston 17th Mar 17, 1:50 PM
    • 78 Posts
    • 29 Thanks
    simonineaston
    • #5
    • 17th Mar 17, 1:50 PM
    • #5
    • 17th Mar 17, 1:50 PM
    Cool - thanks, folks... Sounds like a Yes, then!
    • molerat
    • By molerat 17th Mar 17, 1:57 PM
    • 16,797 Posts
    • 10,995 Thanks
    molerat
    • #6
    • 17th Mar 17, 1:57 PM
    • #6
    • 17th Mar 17, 1:57 PM
    Cool - thanks, folks... Sounds like a Yes, then!
    Originally posted by simonineaston
    Play the game right and they pay you. I currently have £12.5K of their money earning me interest at no cost to me, some here have seriously silly amounts stoozed.
    www.helpforheroes.org.uk/donations.html
    • Marchitiello
    • By Marchitiello 17th Mar 17, 2:01 PM
    • 248 Posts
    • 89 Thanks
    Marchitiello
    • #7
    • 17th Mar 17, 2:01 PM
    • #7
    • 17th Mar 17, 2:01 PM
    With your situation I would only look at Rewards/Airmiles/Cashback cards as I also do not believe you will get Interest free period on purchase as first card for "stoozing" purposes.

    Who do you Bank with? Some banks have rewards card that comulate with bank accounts (e.g. RBS/NatWest Rewards CC is free for RBS/NatWest Rewards Current Account holders and would accumulate cash overall). Amex are also worth to look at. If you fly often for business and Leisure with a particular airline, it may be worth to look at the cards offered in Partnership with them. Same if you use often a particular Hotel Chain.
    • fifeken
    • By fifeken 17th Mar 17, 2:17 PM
    • 2,141 Posts
    • 1,104 Thanks
    fifeken
    • #8
    • 17th Mar 17, 2:17 PM
    • #8
    • 17th Mar 17, 2:17 PM
    Fees free foreign currency cash and purchases with the right card.
    • bris
    • By bris 17th Mar 17, 4:37 PM
    • 6,730 Posts
    • 5,769 Thanks
    bris
    • #9
    • 17th Mar 17, 4:37 PM
    • #9
    • 17th Mar 17, 4:37 PM
    Credit cards are the devil, for every 1 that can use them properly there is a thousand that are up to there eyes in debt with them. They also ruin lives as they are just to easy.
    • bigadaj
    • By bigadaj 17th Mar 17, 4:54 PM
    • 9,625 Posts
    • 6,131 Thanks
    bigadaj
    Credit cards are the devil, for every 1 that can use them properly there is a thousand that are up to there eyes in debt with them. They also ruin lives as they are just to easy.
    Originally posted by bris
    Silly statement, you are obviously one of the hard of understanding individuals that can't associate spending money with paying it back.

    Credit cards are very beneficial if used sensibly as described above.
    • PeacefulWaters
    • By PeacefulWaters 17th Mar 17, 5:48 PM
    • 6,734 Posts
    • 8,283 Thanks
    PeacefulWaters
    Credit cards are the devil, for every 1 that can use them properly there is a thousand that are up to there eyes in debt with them.
    Originally posted by bris
    Yet half of credit card users never pay a penny in interest.

    1000/1? Rubbish.
    • Superscrooge
    • By Superscrooge 17th Mar 17, 8:32 PM
    • 848 Posts
    • 589 Thanks
    Superscrooge
    Credit cards are the devil, for every 1 that can use them properly there is a thousand that are up to there eyes in debt with them. They also ruin lives as they are just to easy.
    Originally posted by bris
    Some people get into debt using credit cards. But according to MoneySupermarket 60% of borrowers always pay their balance in full each month and never pay a penny in interest.
    • jamie_02
    • By jamie_02 17th Mar 17, 9:32 PM
    • 84 Posts
    • 48 Thanks
    jamie_02
    It's not actually the credit card that gets into debt, it's the user. If you borrow someone's money you have to pay it back. That concept wasn't invented with the credit card.
    • Prothet of Doom
    • By Prothet of Doom 17th Mar 17, 10:17 PM
    • 3,130 Posts
    • 3,775 Thanks
    Prothet of Doom
    I have 3 credit cards, with the current balance about £300, which I pay off monthly.
    My wife hasn't got one.
    She needs to rent a car when she goes on holiday soon. How ?
    We've applied for a new card in her name, and an extra card on one of my accounts.
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