Credit card advice`

Paddyshepherd

Hello all,

Currently considering another credit card, but before I go into the reasons etc I'll give you some background info on myself.

Currently 20 y/o with a good, secure job for my age, earning around the 1500pcm mark. Living at home but paying board etc. Currently put about 15-20% of my monthly earnings into a savings account (house savings, holidays etc), and have various bills paid from my wages.

I currently use a Halifax Clarity card as my everyday card - fuel, food, hobby stuff etc goes on here, and it gets paid off in full by my wages each month. Whatever I have left from my wages after this I then put into savings etc.

Now that you've got some basic info about me, hopefully you can help me out a bit.
I'm considering a 0% purchase card as a secondary card. This isn't anything to do with not being able to pay off current card or anything, I have no bother with that. The reason I'm considering a second card is for hobbies. I'm into my cars and motorbikes, and I'm wondering if a 0% purchase card would be a suitable buffer for things I need for my car or bike, which I can then pay off comfortably over the 0% period, paying more than the minimum payment each month.

Your opinions please. Will this help me? Will having two cards damage my credit score? Will it improve it providing I keep up with at very least minimum payments? Is it a good or a bad idea etc?

Thanks in advance. :beer:

grumbler

Two cards will not damage your history.
What interest are you getting on your savings? If very small, then just use savings instead. You can save more by getting Halifax Rewards account and getting its monthly £5 plus £5 monthly cashback on the CC spending (£300+ IIRC).

llan

Always preferred cash myself.

MrJester

I think it sounds like you're well off enough to be able to save a couple of months to get whatever you might want, rather than risking big purchases on a 0% card.
I don't doubt your commitment to paying your cards off etc as you are proving it with the one card, but when you get two.. things change. Your confidence grows and you get riskier, especially at your age like I did. I'm now just turned 25 and having to dig my way out.

Like grumbler said, if you have savings you already have the money just use it if you want to. What are savings accounts like 1.6% at best? You can just save up your money again. If I could I'd always go to use savings first before I think about having to get more credit cards just for 'ease'.

Paddyshepherd

Thanks for the advice gents - I currently have two savings accounts. One is a regular one where I'm putting money in each month and one is a 18 month fixed rate account that I can't touch. However, I can't alter what I'm putting into either - my regular one is a deal I made with my old man. I got myself into a tough situation a while ago because I didn't have savings. He bailed me out on the basis that I paid him back a set amount a month but after doing so I carried on saving that set amount per month. I'm now back on track and much better with my money management but out of respect for the agreement I made with my dad I can't use those savings. Hope this answers a few questions.


Grumbler - my current account is the halifax ultimate rewards one, and I always make sure I have more than 300+ on the CC to get my £5 back.

Cheers for the responses

andyfromotley

You have got yourself into trouble in the past and are now proposing to use credit to fund your hobby? (potentially free credit but credit nonetheless.)

Save and buy what you need once you can afford it.

Paddyshepherd

Haven't we all got ourselves into trouble though? Is that not how we learn? This was a while ago now. If I knew I was still bad with my money I wouldn't bother. I know how to discipline myself with my money now.

YorkshireBoy

Paddyshepherd wrote: »

Haven't we all got ourselves into trouble though? Is that not how we learn?

No. I learned by seeing others get into trouble. I didn't feel the need to try it out for myself. Then again, I'm from a different generation.


Interesting you've chosen to pay £15 a month for a bank account. Do you consider it value for money?

Paddyshepherd

I pay 10. If you have so much going in and out etc they discount it by 5 quid. Take into account the 5 I'm getting in cashback from the CC and realistically I only pay 5.

Considering I get phone, breakdown and travel insurances from that I see it as pretty good, as phone insurance alone is normally more than that per month.

YorkshireBoy

Paddyshepherd wrote: »

I pay 10. If you have so much going in and out etc they discount it by 5 quid. Take into account the 5 I'm getting in cashback from the CC and realistically I only pay 5.

Considering I get phone, breakdown and travel insurances from that I see it as pretty good, as phone insurance alone is normally more than that per month.

You're paying £10 and losing a fiver Reward payment, so you're paying £15.

If you switched to a standard Reward account you'd get a fiver. Put that fiver towards the £10 a month fee for a Nationwide FlexPlus account and you'd get all the benefits of the Ultimate Reward account plus 3% AER interest on your cash (up to £2,500)...for less.

Paddyshepherd

I don't understand what you're saying. How am I paying 15? They take 10 from me each month and I get 5 back from my credit card. To me 10-5 is 5.

Regardless, this has nothing to do with my original query.