Why do I need a Credit Card

renegadefm

Hi, Apparently to gain a good credit score I have been encouraged to get a credit card, but I find this a strange way to get a better credit score as to somone like me who was bankrupt over 10 years ago I was advised to never have one ever again as having a credit card before was what led me into a spiral of debt.
Surely having a credit card equals spending money I dont have which has to be repayed. My parents always used to say if you havent got the money you should go without. Wish I listened to them when I left home, but my bank kept pushing me to have a crefit card, which I eventually did get, but it was the start of serious debt. So how do I resist the temptation of having a credit card again if this will help me gain a better credit rating?
Surely a person would get a better credit rating from showing how well they manage the money they got, not the money they dont?

[Deleted User]

Surely not.

Instead of building a credit score, which can be achieved by never using credit, you want to build a credit history, showing lenders that you can handle credit.

That doesn't need to be via a credit card, but it's the easiest and free way of doing it.

However, if you cannot handle credit, it's best not to get one

renegadefm

Well I been a recent victim of stolen identity so someone took out a load of credit in my name, so I am hoping that doesnt affect my credit score, but even before that happened to me Clearscore said to gain a better credit score I need a credit card. But to me this is poor advice to people who dont manage money well.

[Deleted User]

Again, ignore the score and the CRA’s “advice” on improving it.

Lenders do not see nor care about them.

[Deleted User]

Your credit score is neither here nor there. It's your credit history you need to establish.

But if you cannot handle credit or are scared of it, it's best to stay away. No credit history is slightly better than a poor one, though not by much.

nicetomeetyou

I've had poor money managing skills in the past. Got into Debt. I paid all my creditors off and my credit score is improving and I'm being accepted for credit again. I look at it this way now, I know it's not my money I'm spending and I'll have to pay it back. I'm glad that banks don't include your overdraft as available money like they used to.. My money management skills have improved and I can trust myself not to get into debt.

[Deleted User]

renegadefm wrote: »

Hi, Apparently to gain a good credit score I have been encouraged to get a credit card, but I find this a strange way to get a better credit score as to somone like me who was bankrupt over 10 years ago I was advised to never have one ever again as having a credit card before was what led me into a spiral of debt.
Surely having a credit card equals spending money I dont have which has to be repayed. My parents always used to say if you havent got the money you should go without. Wish I listened to them when I left home, but my bank kept pushing me to have a crefit card, which I eventually did get, but it was the start of serious debt. So how do I resist the temptation of having a credit card again if this will help me gain a better credit rating?
Surely a person would get a better credit rating from showing how well they manage the money they got, not the money they dont?

Why do you want to have a better credit score?*

*I'm ignoring the fact that no lender bases a lending decision based on a credit score generated by the likes of ClearScore.

renegadefm

I just think society has gone mad really. It seens far too easy to obtain credit in this country, yet its obviously not so easy to pay back otherwise the country wouldn't be in so much debt.
Its as if its trendy to have a credit card, but I fail to see how its cool or trendy to have access to money that isnt yours, and needs to be payed back. Ok I admit I havent been so wise, but I learnt the hard way.
I reckon these things should be taught at school because I found out too late. By my late 30's I was 38 thousand in debt all brought on by advice from my bank to have a credit card.
In the right hands I guess credit can work well for them, but far too many dont manage money well like me.

renegadefm

Lover of Lycra, I don't necessarily want a better credit score. My whole point is if Clearscore is advising me to have a credit card as a way to get a better credit score, how many people fall for that?

[Deleted User]

Just because credit hasn't worked out for you it doesn't mean it's not beneficial for anyone else. The S75 protection that comes from purchasing using a credit card has saved my bacon on more than one occasion. I'm not spending money that isn't mine. I'm spending money I have already budgeted for and choosing a credit card as my method of payment.

[Deleted User]

renegadefm wrote: »

Lover of Lycra, I don't necessarily want a better credit score. My whole point is if Clearscore is advising me to have a credit card as a way to get a better credit score, how many people fall for that?

If people want to build credit history then a credit card is a legitimate and free way of doing it. Those thinking of applying for a mortgage in the near future can improve their chances by using a credit card to build credit history showing that they are responsible borrowers.