Do i NEED a credit card

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Right so i was in the bank the other day and whilst the guy was sorting out what i was after he showed me a list of my transactions etc. He then went on to tell me that i have no credit record as such as I've never taken out a loan, bought anything on credit, I don't own a credit card etc. He said that the only things showing up was money in and money out, and that there would be nothing there which would get me credit if i ever need it.
He then explained that not having a credit rating would impact me further on down the line for instance when i need a mortgage buy a new car etc.
He Suggested taking out a credit card and showed my various offers that he could do for me. I explained to him that I live on the principal that if i can't afford it i don't need it, and that therefore i don't need a credit card. When i explained that even if i did have one i'd never use it he told me to just get it and cut it up. but whats the point in that?
So my question is do o really NEED a credit card like he was trying to tell me? I'm 20 years old i have never been in debt and I'm free of money worries.
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  • londonTiger
    londonTiger Posts: 4,903 Forumite
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    well that's the world we live in, everyone is in debt up to their necks. Working their !!! off to pay credit card, car payments, mortgage etc.

    If you want to be part of that world. you have to EARN it. You have to work up your proficiency of being in debt slowly and slowly until the banks are confident that you're a reliable [STRIKE]mug[/STRIKE] borrower.

    rant over.

    You could just get a few cashback credit cards, make purchases and pay it back in full. If you do it properly you'll be rewarded.

    I got £110 end of Jan from capital one. Felt good - but in all honesty, they probably took away as much in interest over the years.

    I used to be a sensible spender and never used CCs but then I got a cashback card and it slowely changed the way I look at money. End up spending more and on stuff I dont need. I'm reigning in my credit cards right now.
  • grumbler
    grumbler Posts: 58,629 Forumite
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    neon92 wrote: »
    ...I live on the principal that if i can't afford it i don't need it, and that therefore i don't need a credit card.
    Afford what?
    A credit card, if paid in full every month, costs you nothing, gives you
    • 20-50 days interest free period on purchases,
    • extra protection for bigger purchases,
    • positive record in your credit history
    - and, if it's a correct card, rewards or cashback.
  • JJ_Egan
    JJ_Egan Posts: 20,281 Forumite
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    I have a Credit Card only used for the extra protection on items over £100 .Paid off as soon as i get the bill .

    But the real question is for any user are you going to have a credit card splurge and spend what you don't have and cannot afford to pay back .

    So my question is do o really NEED a credit card like he was trying to tell me? I'm 20 years old i have never been in debt and I'm free of money worries.

    Thats says no debt free and no money worries stay that way .


    jje
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
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    if you plan to get a mortgage one day then a (good) credit history will help.

    sufficient would be to get a credit card, use it every month for things you buy anyway (maybe petrol, groceries) and pay in full each month (preferrably by DD so you never forget)

    that will build up a nice credit history for you

    also it's useful to note that things like contract mobile phone are credit agreements and some fixed land line and utilities and rentals will credit check you.
  • zerog
    zerog Posts: 2,478 Forumite
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    neon92 wrote: »
    I live on the principal that if i can't afford it i don't need it, and that therefore i don't need a credit card.

    So if you can't afford to pay for a house in full, then you don't need it and will continue to rent?
  • neon92
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    zerog wrote: »
    So if you can't afford to pay for a house in full, then you don't need it and will continue to rent?

    A house and maybe one day a nice car would be the only exceptions to this i can think of. Currently live with a friend and the arrangement we have now works great.

    Can anyone recommend any good cards that i could get with no credit history then?
  • grumbler
    grumbler Posts: 58,629 Forumite
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    Try Aqua Reward.
  • bsms1147
    bsms1147 Posts: 2,261 Forumite
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    Aqua

    It's a card designed for people with no/poor credit history, and has an unbeatable 3% cashback rate.
  • Johnmcl7
    Johnmcl7 Posts: 2,817 Forumite
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    I have had a credit card for years but never carry a balance on it, the reason I use it is for the much better protection it gives you compared to a debit card. I learned the hard way when Dell managed to muck up an order and took the payment several times and emptied my current account which would have been fine with the credit card account as it would have nothing to do with my current account. In addition I get a small amount of cashback which isn't much but better than nothing.

    John
  • ukflippy
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    I agree with most people here - I have no *need* for a credit card, but I have one, and do almost all my day-to-day spending on it. While the cashback/points etc. are nice, I actually find the main benefit the ability to track my spending.

    Every month, my current account has direct debits for all my bills, as well as my credit cards. This all happens in the first week of the month. Once that's all done, I know at a glance how rich I am for the next three weeks.

    For some reason, seeing a load of small debits for petrol/shopping has less of an impact on me than seeing one massive one once a month.

    In addition, if you're abroad, and decide against bringing cash (or don't bring enough), a credit card is generally the cheapest way of buying stuff, and even withdrawing cash, so long as you're on top of repayments.
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