is it worth having a credit card?

GTR_King

is it worth having a credit card??

I have never had one (I am 25) & never been in debit and always have enough money to buy things etc...

never had a loan etc

JournalGirl

I have an M&S Credit card - I get vouchers built up over time based on how much I spend, and I get Section 75 protection on my purchases.

My direct debit is set to pay in full every month, meaning I get a few weeks interest on my own money before I clear the card.

GTR_King

yeah but i have never had one & felt I don't need one.

but is it worth getting one?

YorkshireBoy

GTR_King wrote: »

yeah but i have never had one & felt I don't need one.

but is it worth getting one?

Make yourself a list of pros and cons and then you can decide.

JournalGirl has already started you off with 3 pros, so build on that.

GTR_King

Yeah some do have pros e.g better protection when buying stuff but I have never had one before

SuperHan

GTR_King wrote: »

Yeah some do have pros e.g better protection when buying stuff but I have never had one before

They all have better protection when making purchases > £100.

Other advantages include :
Earning interest on your own money for longer
Various rewards/cash back available for spending
Can be used for booking rental car/hotels where debit cards are sometimes not accepted
Less inconvenience if you encounter fraudulent transactions as it is not your money lost.

daveyjp

0.5% or 1% towards vouchers on all purchases with one card and 1-3% cashback at selected retailers with another definately make them worthwhile.

Sanjjj1189

I am 25 too and never had a Credit Card UNTIL last month. (are you my twin?)

It is the best thing in terms of building up your credit history, when you want to buy a house (like me in 2 years) the lenders will look at how you've used credit in the past, so without a credit card its pretty hard to show them!

Nationwide gave me a £7500 Credit Card when signed up, gone up to £8000 a month later.

Even if you have enough money to pay for everything (like me!) its one of only a few ways to build a solid credit history.

So get a Credit Card that rewards you for spending! you'll enjoy all the free things you get, and your credit history will be better too for later in life.

Xstyle

Yes, what Sanj said!!!
Totally 100% correct to build up your credit score.

20aday

Is it worth having a credit card? Yes, I think it is.

I've earned more loyalty points by using my Tesco and Sainsbury's MasterCards in the time I've owned them and I've done well out of my Lloyds Bank American Express, too.

fred246

I have £20000 0% debt on credit cards. My non tax paying wife has £20000 in Santander 123 earning 3%. £600 a year free cash.
I always enjoy our regular meals out payed for with Tesco Clubcard points.
I have never payed a penny interest or any fees. If you are good with money they're great. If you're not stay well away.