Do I need a credit card?

olliecampbell

Hello,

I promise this post isn't here to wind people up, it's a genuine question!

I have switched my spending onto a Halifax/BoS cashback credit card, of course paying back in full each month.

I'm finding it hard to easily see how much disposable income that I have each month as the payments are always a month in arrears.

Ideally I'd like to cancel the card, but know it can be handy to have one for large purchases or those that you need extra cover for.

Are there any other benefits to having one?

Glasgow_Al

Just for starters - being able to check into a hotel, or hold a reservation, being able to hire a car, being able to easily use your card abroad, having section 75 protection, having flexibility in your finances... I don't see how you could actually not have at least one card these days.

JimmyTheWig

olliecampbell wrote: »

Ideally I'd like to cancel the card, but know it can be handy to have one for large purchases or those that you need extra cover for.

Are there any other benefits to having one?

You could just stop using the card rather than cancelling it. So it was still there for the "large purchases or those that you need extra cover for".

One benefit is obviously the cashback that you get from this card.
Another benefit is that it should help your credit rating.

But both of these are probably overshadowed by what you are losing out on by not knowing where you stand each month.

grumbler

Glasgow_Al wrote: »

Just for starters - being able to check into a hotel, or hold a reservation, being able to hire a car, being able to easily use your card abroad,

Can you not do all this with a debit card? It's a genuine question as I have at least five credit cards.

ariba10

I have a cash back C C .that I pay off every month.

Not a lot, but it does mount up, and pays back once a year.

Glasgow_Al

grumbler wrote: »

Can you not do all this with a debit card? It's a genuine question as I have at least five credit cards.

On hire cars - if they cannot pre-authorise your credit card, then they will want a very large cash deposit... so you probably could use your debit card assuming you had the funds available, but you would potentially be without them for weeks before they got around to reversing the transaction. Some hire companies will only take credit cards.

Similar principle, though lower amounts, for hotels.

Abroad - IME, debit card acceptance can be patchy (e.g. I recently accidentally handed over my Maestro card in a jet-lagged state in the US, and got a bit of a blank look in return!).

No section 75 protection on debit cards.

olliecampbell

Some great points here, lots I hadn't thought about, thanks everyone.

I'm not 'too' bothered about the cashback, at the moment I don't get a great amount as everything is paid for through a joint bank account instead.

I think I need to go and have a look at the best non-fee credit card and see what's out there.

Mozette

I keep a simple spreadsheet of my income, outgoings and what is on my CCs, so I always know what position I'm in with my money. I find it strangely addictive, but then I'm odd:o

grumbler

Glasgow_Al wrote: »

On hire cars - if they cannot pre-authorise your credit card, then they will want a very large cash deposit... so you probably could use your debit card assuming you had the funds available, but you would potentially be without them for weeks before they got around to reversing the transaction.

I don't see any difference between a credit card and a debit card with (or even without) an overdraft. It's a matter of finances / cash flow and falls within your 'flexibility' point.

Some hire companies will only take credit cards.

I have not heard of any, but that's may be just me.

Abroad - IME, debit card acceptance can be patchy (e.g. I recently accidentally handed over my Maestro card in a jet-lagged state in the US, and got a bit of a blank look in return!).

This may be correct for Maestro (and Visa Electron), but not all debit cards are Maestro. In fact the majority are Visa in UK.

No section 75 protection on debit cards.

I have not questioned this point.