Is it worth getting a credit card?

waqasahmed

If it meant that I'd make money from my credit card, Id apply quite quickly but it seems that for any cashback credit cards, you have to be earning at least 7.5K/year
http://www.moneysavingexpert.com/cards/cashback-credit-cards

As a student, I don't get that amount of money for the year

Without wanting to sound arrogant, I can manage my money(most of the people around me are already in their overdraft and some are even past that), where I've still got quite a high amount of money(relatively speaking) since my student finance went in to my account about 9/10 weeks ago

If I were to get a credit card, Id want to make sure that I can put the "pay off in full" comment in order to make the outstanding credit be debited straight from my bank account instead of leaving it up to myself, forgetting and paying interest

I understand that you can build up a "credit report" but I don't know if it's worth getting one at the age of 19 with absolutely no debts, no mortgage etc...

If it is worth getting and if I can have it automatically paid off via direct debit, which one should I get?

EDIT: Oh also do I actually need to build up a credit rating considering that I don't buy what I can't afford and don't intend to in the future, apart from a mortgage

rb10

Provided that you are 100% confident that you will only use the credit card for things you'd have bought anyway, and won't ever see it as 'free money', or the chance to delay paying for something for a while, then I would say go for it.

It's never too early to start building up a good credit history. When you come to apply for a mortgage, a bank is going to look more favourably upon you if they can see that you've paid off a credit card in full every month.

Try initially for a credit card with your main bank (or possibly a bank where you have savings). Since you don't currently have much of a credit history, others are less likely to want to take you, whereas your bank can see that you're a reliable customer, which should give you a greater chance of acceptance. After a year of managing this well, then you might be ready to apply for a cashback card.

waqasahmed

rb10 wrote: »

Provided that you are 100% confident that you will only use the credit card for things you'd have bought anyway, and won't ever see it as 'free money', or the chance to delay paying for something for a while, then I would say go for it.

Yup. The only reason I want it is to build up a credit rating for when I need to get a mortgage but then I got thinking, could I not just get a direct debit for a mortgage. Literally the only reasons I can think of myself for getting a credit card is
a) It's almost a requirement for getting mortgages(credit rating)?
b) It's possible to get cashback for them when earning

Truth be told, I've still got most of my student finance in the bank because I tend to buy food with it, activities and I tend to buy electrical items used or use HUKD to get good bargains (and don't buy what I don't need, apart from £10 PS3 games )

rb10 wrote: »

It's never too early to start building up a good credit history. When you come to apply for a mortgage, a bank is going to look more favourably upon you if they can see that you've paid off a credit card in full every month.

Try initially for a credit card with your main bank (or possibly a bank where you have savings). Since you don't currently have much of a credit history, others are less likely to want to take you, whereas your bank can see that you're a reliable customer, which should give you a greater chance of acceptance. After a year of managing this well, then you might be ready to apply for a cashback card.

Thanks for that. Say I pop in to Lloyds tomorrow (my bank provider) and ask for a credit card, do I have to tell them to put the option of "pay off in full" in the form? I'd much rather that a direct debit would be used to pay off any credit automatically each month than having to remember to do so myself

EDIT: I've also got absolutely no idea about which credit card to go for
http://www.lloydstsb.com/credit_cards.asp

waqasahmed

Seemingly I can get a Lloyds student credit card which simplifies things a bit:
http://www.moneysupermarket.com/credit-cards/providers/lloyds-tsb/

But there would still be the issue of being able to pay automatically via direct debit. Do I just tell the staff at Lloyds?

CLAPTON

usually you set up a DD after the card has been issued; it depends a bit on the card and how you apply (in branch, on internet etc)

waqasahmed

Thanks for that. I think Ill apply in branch and apply for their student account. I did get a student account with Natwest and I was meant to get a rail card for free but they havent gave me that, and so Ill let Lloyds get my custom instead (especially as that's who I put down as my bank for student finance)

iAMaLONDONER

waqasahmed wrote: »

Seemingly I can get a Lloyds student credit card which simplifies things a bit:
http://www.moneysupermarket.com/credit-cards/providers/lloyds-tsb/

But there would still be the issue of being able to pay automatically via direct debit. Do I just tell the staff at Lloyds?

Why don't you pay automatically using internet banking-that's what I do

waqasahmed

iAMaLONDONER wrote: »

Why don't you pay automatically using internet banking-that's what I do

You mean FPI's? That's what I did, and I've also cancelled this card now as well

itsanne

iAMaLONDONER wrote: »

Why don't you pay automatically using internet banking-that's what I do

It's much safer to pay at least the minimum payment by direct debit. If you're planning to pay in full every month, it's just as easy to set the direct debit to do that as to manually pay each month. That's not to say that you shouldn't keep close tabs on things, but if you are ill, harassed because of exams, your internet is down etc your payment will be automatically paid without any risk of being late or forgotten.

itsanne

:mad: I've just spotted that this thread goes back to 2011. What's the point in resurrecting it after a year and a half?