Student Credit Card, yes or no?

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I get paid weekly, so if I want to buy something a 7 day wait is not bad at all and I don't mind. The only reason I'd actually want to get the credit card is that I've been told it would be a good idea to get one now and boost my credit rating as it might save me money in the future etc.

I don't understand credit ratings, so can someone just explain (in a very dumbed down version) of the pros and cons of me getting the card and what effects it will have.

I will 100% be able to be able to pay back any money I spend on it, as I'd only spend the minimum, and I'm not even that sure if I'd even use it ever. I'm not a big spender and I get decent wages (living with parents too) so I really don't need it. I see where it would come handy of course, but that's all.

Thanks for any replies.

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  • InsideInsurance
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    Brokelife wrote: »
    I don't understand credit ratings, so can someone just explain (in a very dumbed down version) of the pros and cons of me getting the card and what effects it will have.

    This is a very broad topic and itd be easier to answer more specific questions.

    Lenders don't like uncertainty and so are reluctant to lend to someone who's not had previous lending as they've no idea if you'll be a good or bad customer. By having a credit card and using it sensibly it'll help future potential lender (eg mortgage providers) to decide if to give you credit or not and at what rate.

    There are few downsides really from just having a single card unless you start spending on it and then cannot repay it. When problems do arise is where you start having too many lines of credit and so new providers won't consider you. Again not much a problem if all the lines are unused but if you've given in to temptation then again can be a problem.

    Whilst getting a reward card now is probably unlikely when you do have a better history behind you and a job etc then you have the option of going for a cashback/ reward card which ultimately gives you something simply for buying something you were already intending to buy in which case you want to put every bit of spending you were already going to be doing onto it to maximise the rewards. I get a few almost free flights a year or free upgrades on paid for flights simply by using a credit card rather than debit card to pay for my weekly shopping, petrol etc.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    Combo Breaker First Post
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    get a CC now

    -use it regularly for things you buy anyway (maybe petrol or weekly shop)
    - once the monthly statement arrives then pay in full (set up a direct debit for the full amount so you never forget )
    -never go to near the CC limit (so if the credit limit is 500 then stay under 300)

    this will show future lenders (maybe for a mortgage) that you can handle money properly
  • Brokelife
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    There are few downsides really from just having a single card unless you start spending on it and then cannot repay it. When problems do arise is where you start having too many lines of credit and so new providers won't consider you. Again not much a problem if all the lines are unused but if you've given in to temptation then again can be a problem.

    I know I'd always repay. I'm very sensible with money so I think I'd avoid the negative sides to it.
    CLAPTON wrote: »
    get a CC now

    -use it regularly for things you buy anyway (maybe petrol or weekly shop)
    - once the monthly statement arrives then pay in full (set up a direct debit for the full amount so you never forget )
    -never go to near the CC limit (so if the credit limit is 500 then stay under 300)

    this will show future lenders (maybe for a mortgage) that you can handle money properly

    Might sound stupid but if I do a direct debit how will I know what amount if I'm spending differently every month?
  • grumbler
    grumbler Posts: 58,629 Forumite
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    They send you a bill (possibly, online) about 20 days before the DD is taken.
    And with all cards you can use online account to see your current balance.
  • Brokelife
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    grumbler wrote: »
    They send you a bill (possibly, online) about 20 days before the DD is taken.
    And with all cards you can use online account to see your current balance.

    Aah okay. Thanks. I'ma go in and talk about it with them after work tomorrow. thanks guys!
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