Should I get a credit card

Help us out with the reason you think you might need it. Do you have plans for a personal loan, new car finance, a house? Have you looked at any of your credit reports to see what they say about you in general?

Sophie123456 wrote: »

Would anyone advise me getting a credit card or overdraft or something? What are the pros and cons etc?

Don't get one, that's what I advise

The pros are: If you manage it really well (pay it off in full, never go over the limit and never withdraw cash) then it makes you more favourable to lenders in the future.
The cons are: If you aren't managing your money really well then you will quickly get into debt that will be much harder to get out of than avoiding it in the first place.

Sophie123456 wrote: »

Along with rent, bills etc I don't really get left with much at the end of the month, only about 100/200 pounds.

Just save your £100-£200 at the end of the money and build up some savings. The last thing you need is a credit card bill to pay for once you have racked up a thousand or 2 of debt.

Sophie123456 wrote: »

Hi there,

I am pretty clueless when it comes to credit cards etc so I thought id come on here to get some advice possibly.

I have been trying to budget better recently as our circumstances changed last year. I have recently got a car and that has been money constantly too. Along with rent, bills etc I don't really get left with much at the end of the month, only about 100/200 pounds.

Would anyone advise me getting a credit card or overdraft or something? What are the pros and cons etc?

Any help would be appreciated! :wave:

If you only have £100/£200 pounds left at end of the month I dont think a credit card is for you.


Could you clear the amount each month ?


All depends on what you would put on it, if just some fuel and only fuel then maybe yes get 1 (just don't spend more than £200).


Maybe you should spend a few months putting the £100/£200 to 1 side/in an account and move into the main account the amount you spent on the credit card and have a standing order setup.

There is no right or wrong answer to this one - just people's opinions and preferences.

When you say you are left with £100/£200 after expenses, could you enlighten us as to what those expenses include? For example, if they include food shopping, petrol and general living expenses, then a credit card is (in my opinion) your best friend.

All you do is use the credit card for all of those expenses that you would normally pay with cash/debit card (petrol, food etc) and then make sure you set up the card to pay in full by direct debit each month.

What this does is ensures you don't spend any more than you normally would, and defers the point at which your current account actually pays for things until at least one pay day later, thereby leaving the cash in your current account (earning interest, hopefully).

Obviously, don't go mad spending all that cash buffer but you can, of course, still save the £100/£200 that you would normally have left over after all expenses paid.

Ideally, a credit card should not be viewed as a way of buying things you cannot afford, it should be viewed as a way of deferring payment for all your normal monthly cash expenses by as much as 56 days (card dependent) and clearing them in full after each statement.

I've been doing this since the mid eighties and it's worked fine for me, but you do need to be careful and, I accept, credit cards are not for everyone - especially those who just cannot control their spending habits.