having no credit cards

Dabooka

Well it depends doesn't it; if having one will tempt to you spend on it, then steer clear.

On the other hand, and as has been pointed out, they can be very useful too if used sensibly. I must admit I never have a rolling balance now (but did once upon a time, never again though!) and wouldn't buy any significant on it as that should be planned for. I do find it very useful for online shopping, Sec 75 (never needed to claim, but hey you never know...) and the now rather limited rewards and cashback.

Gromitt

I make cards work for me - I grab ones which have 0% on purchases for X months, then put my usual spending on them, paying back just slightly more than the minimum payment. After the 0% has expired, I pay off the card in full and look for another

So my cash spends most of its live in 1 year bonds. Not brilliant, but better than spending it straight away I think.

Never done a balance transfer as I refuse to pay the 3-4% fee.

A_Flock_Of_Sheep

I don't have a credit card.

What is it like?

I have no emotional feeling about it. I also don't have a food processor, a door stop with Tower Bridge on it or a clockwork train set. I feel equally no emotion about that.

Kitte

I've had lots of credit cards since I turned 18. However, they were only really used for stoozing or monthly spend to earn cashback or rewards.

Now I only use one credit card for larger online purchases.

I've closed the majority of the card accounts but still have 5 card accounts, two of which will be closed shortly when the annual cashback arrives.

I've decided the small amount of cashback (~£80 per year for me) isn't worth the hassle and now I use a debit card for the vast majority of purchases.

Feels great.

eilidh_s

I have a credit card as I used to work abroad and it was easier to pay for things with a visa than with with a maestro! I have savings but I can't access them in a hurry so having the credit card means I can get access to money right away so say if my cooker blew up then I could buy one right away rather than wait for my money from my savings account. I also use it for purchasing online and so that I am covered by S75. Plus the cashback and rewards are a nice little perk.

However, I won't spend on it if I didn't have the money to pay it off.

ses6jwg

Making a choice not to have a credit card is like making the choice to cut your own nose off to spite your face.

It doesn't do you any favours.

Have 1 card, have a perk that suits you such as cashback or free use abroad. Pay off in full each time. Enjoy 56 days interest free and the security offered by the Consumer Credit Act.

Simples.

boo2410

A_Flock_Of_Sheep wrote: »

I don't have a credit card.

What is it like?

I have no emotional feeling about it. I also don't have a food processor, a door stop with Tower Bridge on it or a clockwork train set. I feel equally no emotion about that.

:rotfl::rotfl::rotfl::rotfl:

Gromitt

Kitte wrote: »

I've decided the small amount of cashback (~£80 per year for me) isn't worth the hassle and now I use a debit card for the vast majority of purchases.

What hassle is there? You still have to stick your card in a reader and type your pin, the only difference is one comes from your bank account straight away and the other comes out after they have sent you a statement. I prefer the later as I can budget better.

I did originally use my debit card for most things, then I thought "If someone copies my card details they can drain my current account" and never used it as such since, unless theres a really good incentive (like free use compared to a credit card).

GSMAnon

I got my first credit card in June. Got it just because of the legal protection offered for online purchases and to help build up a credit history. I pay it off almost immediately after I use it, and very rarely use it anyway.

It's good to have for emergencies and, like I said, for the protection... or for the offchance that I'll see an investment opportunity that'll provide a greater return than the interest rates on the card, and my only available capital is from the credit card.

Just don't go down the route of getting a card, using it to pay for stuff you can't currently afford and expecting to be able to pay it off in the future without trouble, and continually asking for increases on your limit to fund a growing consumer debt!

In my view, there's only two smart ways to use a credit card.

1) To pay for something you can afford anyway, and will pay off the balance straight away, but to use the protection benefits of a credit card
2) To use your credit to invest or fund business growth.

Using it for consumer debt that you can't afford is a sure way to have a miserable several years.

Derivative

Gromitt wrote: »

What hassle is there? You still have to stick your card in a reader and type your pin, the only difference is one comes from your bank account straight away and the other comes out after they have sent you a statement. I prefer the later as I can budget better.

I don't understand why you would choose to pay by debit as opposed to credit.

However, I personally don't use a credit card for most purchases even though I own one. I feel that paying by cash makes me much more reluctant to spend.

I understand that it may be irrational, and that I could make money from 'stoozing' the interest - but I feel the amounts are so low as to be negligible. On my grocery shopping, we'd be talking sub £5 a month. I feel that I 'save' more than £5 by simply looking at the fresh crisp notes and preferring to keep them tucked up in my wallet instead of giving them to a checkout operator.

Strange perhaps, but how I work.

I do use a credit card for online purchases though.