Why do I need a Credit Card

[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?

It’s all marketing.
And they earn a commission on any application you make via their “offers”.

[Deleted User]

nicetomeetyou wrote: »

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.

You being accepted for credit again is not based on any improvement in your “score”.

[Deleted User]

renegadefm wrote: »

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.

It’s not “easy” to get credit at all - this forum alone is an example of littered posts from people saying they have “excellent scores/ratings” yet cannot get accepted for any lines of credit.

It’s not “trendy” to have a credit card either - having a credit card offers, amongst other things, cashback, rewards, insurances, Section 75 Protection and so on.

renegadefm

Well its too easy to obtain credit from my point of view because someone posing as me successfully got lots of credit in the shape of phones and in store credit cards over Christmas totalling over 4 grand. He wasent even using legitimate ID. In my view this country throws credit at people. I just dont get it, it all has to be payed back or face bankruptcy as I did.

Sarah-J26

Getting a credit card and spending 4th of your credit limit every month and paying off full monthly will help to increase your credit score. The opinion is totally based on my personal experience.

yksi

I agree with you, OP. Don't get a card. We don't advise alcoholics to learn to drink in moderation, and nor should we encourage people who have trouble with credit cards that they should use them.

There are other ways to build your history and other forms of credit, but only you are fit to judge if you trust yourself. The obvious one is an overdraft on your bank account, but these are expensive if you don't think you can stay out of it safely.

Mobile phone contracts are one (choose a sim-only contract, and make sure it has a cap so that your bill can't blow out). You can also opt to pay certain things "by the month" as some of them will report on a credit history and help you build it up. Things like insurance often do, or breakdown cover.

You could consider Loqbox, which is a savings account that most people don't tend to like, but it does have the benefit of building credit history without borrowing money.

Finally do the simple things like registering on the electoral roll and making sure all your addresses are up to date.

[Deleted User]

Sarah-J26 wrote: »

Getting a credit card and spending 4th of your credit limit every month and paying off full monthly will help to increase your credit score. The opinion is totally based on my personal experience.

So...
You completely went over everything else in this thread regarding ignoring the score and then post that.

Great :money:

[Deleted User]

yksi wrote: »

I agree with you, OP. Don't get a card. We don't advise alcoholics to learn to drink in moderation, and nor should we encourage people who have trouble with credit cards that they should use them.

There are other ways to build your history and other forms of credit, but only you are fit to judge if you trust yourself. The obvious one is an overdraft on your bank account, but these are expensive if you don't think you can stay out of it safely.

Mobile phone contracts are one (choose a sim-only contract, and make sure it has a cap so that your bill can't blow out). You can also opt to pay certain things "by the month" as some of them will report on a credit history and help you build it up. Things like insurance often do, or breakdown cover.

You could consider Loqbox, which is a savings account that most people don't tend to like, but it does have the benefit of building credit history without borrowing money.

Finally do the simple things like registering on the electoral roll and making sure all your addresses are up to date.

Advising someone to use an Overdraft and Loqbox over a credit card is outrageous.

yksi

!!! wrote: »

Advising someone to use an Overdraft and Loqbox over a credit card is outrageous.

Hmm... well a £50 overdraft is safer than a credit card, and you seem to have missed the caveats. And at least with Loqbox it's your own money, although I get why people don't like it. But maybe you have other suggestions that you just haven't wanted to share?

db2016

before xmas, i cleared most of my vanquis card, (post BR, and they were only one whod give me one). paid over the times of having the card maybe 90% in full, only have minimal fees on a couple occasions.

showed them i could be good for upto 2.5k, from £500. they changed it about 5 times over 3 years.

so being responsible i phoned them and said i have an upcoming purchase, which is around £2.5-3k can i have an increase, and they guy was saying, well no, because we wont do that till you spend 50% of your limit for 3 months.

i was shocked i mean in the beginnging (lower limit) it was easy to spend most of the limit, but of course the larger the limit, the less i use it (in % terms).

so i moved to a tesco one, and will close that, i just thought it was a high percentage that they encouraged me to use! even if i fling every purchase i make a month at it, im not more than 20%