Should I get a credit card?

BrookesAndrew

I have just turned 18 recently. On my birthday I got a phone contract. I was turned down for Orange and also T - Mobile but I got one on Vodafone. The contract is for two years so I have a direct debit coming out of my account and also another direct debit coming out of my account for the insurance for the phone.

I really want to get a house when I am around 24 or 25 or whenever I can afford to really. I am currently saving money in a Cash ISA. I want my credit rating to be good as possible for later in life.

The phone contract will be boosting my credit rating up because I always have money in my account. If anything happended with my job I have enough in my savings account to cover the contract.

The question I wanted to ask everybody should I get a credit card to make my credit rating better for when I am older or will be the phone contract be enough.

Thanks in advance.

Drp8713

It cant do any harm so long as you are diciplined and only making purchases you can afford to pay off in full each month.


I didnt borrow a penny until i was 25 and im now building a history when if i had known then what i know now i would already have

Thrugelmir

BrookesAndrew wrote: »

The question I wanted to ask everybody should I get a credit card to make my credit rating better for when I am older or will be the phone contract be enough.

Thanks in advance.

Start saving for a deposit now. The larger the deposit you have to put down the easier you'll find it to obtain a mortgage. The discipline of saving for a deposit tells a lender a lot about your attitude to personal financial management.

DCFC79

Runnign your account very well will also help too. Get a CC if you think you can pay it off as and when but don't get complacent and keep on delaying paying the balance off.

Naf

As above, really. I thought like you that getting a CC as soon as I was 18 could be a good move - now I have just over 6k on credit cards that I'm paying down. So only get it if you'#re already super organised and disciplined with your money.
Personally I think I'd suggest concentrating solely on the saving for now - get yourself a nice big deposit saved, keep up paying the mobile bill and see where the market etc. is by the time you have enough deposit to consider it.

matttye

Yes, but pay in full every month to avoid paying interest. Anything that you pay in interest is money that could've gone into your house deposit.

I just use mine to buy fuel and the odd low value purchase.

w211

Applying for a credit card with the same bank you have your ISA in will probably help you get a mortgage from the same bank by the time you're 25.

BrookesAndrew

Thank you very much for all your help! I am still unsure on what to do but for the time being I am just not going to get one. (If in doubt then do nout!). It seems like a credit card is great if you have enough money to pay it off and don't go mad with it.

Cycrow

Yes credit cards can be very useful when used correctly.

unfortunately, when they are not, they can lead to debts.
but managing credit and budgeting is something most people will have to learn at some point

unimaginative_user_name

If you change your mind later just use your card for something like petrol which you are unlikely to buy more of just because you are using a credit card. Don't use it for all your spending as that's how you can end up unable to repay it. You could even lock your card away at home and just take it with you when you need petrol.

matttye

BrookesAndrew wrote: »

Thank you very much for all your help! I am still unsure on what to do but for the time being I am just not going to get one. (If in doubt then do nout!). It seems like a credit card is great if you have enough money to pay it off and don't go mad with it.

The idea is to only spend what you would usually.

I just use mine to buy fuel. I seldom buy anything else on it.