Do I need a credit card?

supersophiee

My boyfriend and I are both 22 and still living with our parents. I am a primary school teacher and he is a training pilot in the RAF. He has a credit card, but I don't - only a debit card. I don't have any student loans or unpaid debts. I rarely go into my overdraft, and if I do it's paid off within days. I have several monthly payments that come straight from my bank account e.g. rent, phone bill.

We are both planning to move in together in a couple of years once we've saved enough money - will my not having a credit card affect my credit rating / ability to get a loan or mortgage when we need one? I'm not really sure how it works. I've had a look round the internet but different sites say different things. I'm quite happy with my debit card at the moment, but am only worried for the future.

[Deleted User]

Having a credit card, using it regularly and paying in full each month is a good way of building a good credit history. And try to stay out of your overdraf.

Sagz_2

Deleted_User wrote: »

Having a credit card, using it regularly and paying in full each month is a good way of building a good credit history. And try to stay out of your overdraf.

Make sure you get a card that pays cashback :money: and make it earn you money

grumbler

Deleted_User wrote: »

Having a credit card, using it regularly and paying in full each month is a good way of building a good credit history. And try to stay out of your overdraft....

...and a CC can help to stay away at no extra cost.

Gentoo365

Always useful to have a credit card for emergencies. Especially when travelling abroad. As you know that worse come to the worse you can pay for hotels and transport.

Also in case there is an RBS style issue with normal bank accounts. It means you can pay for stuff until a payment issue is resolved.

Other advantage is that you can use it for online purchases, knowing that there is some cover for items not received, and also if there is fraud you just don't pay until it is sorted.

[Deleted User]

Definitely get one. Having good credit isn't simply about not being in debt or having money in the bank. It's about showing that you can be trusted to borrow money and pay it back on time.

Bear in mind that without a credit history, lenders (inc mortgage providers) have nothing to go on when you make an application. They only have the information you provide in the application and anything on your credit history. They don't know, for example, that you're a nice person, or that you're honest, or you always pay back your mates when you borrow £10 in the pub.

If you are sensible and know how to work them, credit cards are the best way to spend and better than a loan for borrowing.

Hazzinho

Yep get a card, no credit =no credit history.

poggles

Hazzinho wrote: »

Yep get a card, no credit =no credit history.

The OP already appears to have credit

poggles

supersophiee wrote: »

My boyfriend and I are both 22 and still living with our parents. I am a primary school teacher and he is a training pilot in the RAF. He has a credit card, but I don't - only a debit card. I don't have any student loans or unpaid debts. I rarely go into my overdraft, and if I do it's paid off within days. I have several monthly payments that come straight from my bank account e.g. rent, phone bill.

We are both planning to move in together in a couple of years once we've saved enough money - will my not having a credit card affect my credit rating / ability to get a loan or mortgage when we need one? I'm not really sure how it works. I've had a look round the internet but different sites say different things. I'm quite happy with my debit card at the moment, but am only worried for the future.

If you don't think you need one and so won't use it, don't get one

Lots of people have mortgages that have never held a credit card. But there are a lot of people with credit cards that can't get a mortgage

sicker

Get a credit card that gives you cash back and is interest free. Set up a direct debit to clear the full balance each month and MAKE SURE YOU DO CLEAR IT EACH MONTH. Any relaxation tends to snowball. I have an aqua card which has a 0.5% cash back payable annually and I use it for every thing I can, clearing it monthly.

onerickylambert

No, you don't need a credit card. Your bank account has an overdraft (that's credit history) as part of your bank account, if your phone is a contract phone, that's also credit history being built.

However if you can manage it well then it won't hurt to get one. This gives you cashback on your spending and £10 every year for paying on time (which you should do if you want a mortgage later) http://www.capitalone.co.uk/creditcards/classic-extra-credit-card.jsf or if your bf is sick of flying planes round RAF Valley this card will get you a free return flight to Europe after just using it once and then miles https://apply.creation.co.uk/microsites/flybe/