People who ask "should I get a credit card?".

Whiner

Can't help thinking the answer to this is always "no".

Thoughts?

Idiophreak

No, the answer isn't always "no".

reclusive46

There are plenty of reasons to get a credit card. Rewards and travel being the main ones. Good luck travelling the world with just a debit card.

Herbalus

Asking whether a credit card is a good idea does not necessarily signify that the person can't handle it or isn't responsible enough.

For example, anyone who wants a mortgage and doesn't have a credit card would be quite right in asking whether a credit card (properly managed) would make them look like a more responsible borrower.

Or people who don't know what a credit card is - asking what it is and whether they should get one are perfectly valid questions, and not summarily dismissed.

nomoneytoday

Think of the free loyalty points and no bill until the end of the month

giblet10

I'm indifferent to be honest. If someone comes on here asking "should I get a credit card because I'm hiring a car, need additional failure protection etc" then they've already answered their own question really.

If however someone asks "how do I get a credit card with a terrible credit history" I tend to suggest "no, just no, don't do it"

Herbalus

giblet10 wrote: »

If however someone asks "how do I get a credit card with a terrible credit history" I tend to suggest "no, just no, don't do it"

These people will find CCs useful for hotels and hiring rental cars just as much as the next person.

The answer shouldn't be a flat "no", but probably something along the lines of "get a 'beginners' card (like the Cap One CC that doesn't automatically decline CCJs), spend £5 per month with a DD to pay it off in full and get some positive credit history".

leeroy2009

a credit card is a nice thing to have!! I have several, some I have a balance on charging interest - who cares though, the money I make in interest on my current accounts pays for the interest on my cards charge each month - free lending - cant be bad, oh and barclaycards 33 month bt offer - amazing,little gutted that I only got 31 months when I applied 2 months ago.


cant complain though as id did get the best apr of 18.9%

d70cw6

leeroy2009 wrote: »

a credit card is a nice thing to have!! I have several, some I have a balance on charging interest - who cares though, the money I make in interest on my current accounts pays for the interest on my cards charge each month - free lending - cant be bad, oh and barclaycards 33 month bt offer - amazing,little gutted that I only got 31 months when I applied 2 months ago.


cant complain though as id did get the best apr of 18.9%

the interest you make on your current account is greater then what you're being charged on your cc's? i'm quite surprised!

Thrugelmir

Having a credit card can be useful for various reasons. As for boosting a credit rating for say a mortgage it makes little difference. Focussing on saving would be a better use of time.

adindas

d70cw6 wrote: »

the interest you make on your current account is greater then what you're being charged on your cc's? i'm quite surprised!

Yes true .....
If you pay your balance in full within the statement month you will never pay interest. So here even the interest is 1,000% it is irrelevant to some people as they will never pay interest.

Many people could buy an item directly in cash. But why should they do that if they could get grace period of one month before paying the item. Better you put your money somewhere else which will earn interest for at least one month. Think also about the cash back (few credit card have this perks) you will be getting by paying by credit card instead of cash .... There are few more perks come with CC which you do not have it if you pay in cash ....

Some people are using it for stoozing moving balance from one credit card to another for several months without paying any interest. Say you have £10,000 and moving it to zero percent on BT credit card with 1.5 BT fee (or even zero). It is the same that you are borrowing £10,000 from the bank and just pay 1.5% interest. You could now put the money into high interest current accounts paying net interest higher then 1.5%.