Do You Have A Credit Card?

[RabbitsRock]

DH has one - I did for a while but found it too tempting to spend more than I could really afford plus it’s sometimes tricky to keep up with the repayments. I have had credit accounts with catalogues such as Bon Prix & Damart. These days I use Clearpay & Klarna which are really useful although again obviously you have to ensure you can make the repayments.

I use one every day. It's always paid off in full. I earn a lot of points

Yes, I use it for absolutely everything.

Because of the extra section 75 protections
Because I get a hundred quid or so cash back each year
Because it's useful to have two means of payment available at all times in case one fails.
Because in case of fraud it's an extra line of defence between fraudsters and my actual bank account.

That, plus mine gives the entire family a really decent travel insurance.

Nope, never had one and can't see I ever will

I don’t understand the comment about being poorer? If used sensibly, a credit card is just a method of payment, nothing to do with a loan, and it costs no more than using cash or a debit card.

I’ve had multiple cards for 40 odd years and have never paid a penny more than I’ve spent, so have certainly not ended up poorer than using cash/debit card.

Same. If anything actually richer due to cashbacks, points and offers

I've got one that I only use for large purchases, for the added protection.

Obviously none of the advantages are worth it if you're psychologically vulnerable to spending money you can't afford on it for some reason. In that case the upsides wouldn't be worth the risk.

I can't remember the last time I used a debit card. Absolutely everything goes on a credit card and it's paid off by DD every month. No juggling needed unless I've paid for something big, like flights, where the money isn't coming from the current account and I need to transfer it from savings.

The benefit (apart from protection)... hundreds of pounds of John Lewis vouchers!

There used to be much better rewards cards around ( Tesco Clubcard CC was brilliant for years), but they've pretty much disappeared now. But the JL one is still pretty good - if you put all your spending on it. If you just used it here and there, you wouldn't get much back.

I did after when I went to get a mortgage and a few banks said I had no credit history so I was a 'risk'. Seems odd to me that spending within your means made you a risk, but there it is!

Now I have one which I use for holidays (extra protection) and for small purchases monthly that I can pay back straight away in order to keep my credit score high. When I first got it though I had a short phase where I viewed it almost as 'free money' but now I am much more sensible. I am lucky though, that although COL has affected us (not least because my workplace went bust after covid and I am now taking temp work) I can still pay for our outgoings - albeit with hardly any wriggle room. I imagine a very great many people live on credit just to afford the basics.

And yet we did the opposite, encouraged our adult son and daughter to have them, use them sensibly and pay off monthly, so it enhances their credit scores.

Living within your means is a specific financial lesson to teach children and nothing to do with owning a credit card. Plenty of people have money ‘problems’ even without a credit card eg building up large overdrafts.

No. It's like any loan, in the long run it's just agreeing to give the bank your money, you end up poorer than you would be
Yes some people manage to juggle around and pay off each month— but I've never seen the benefit of giving yourself that stress
This is really confusing. UUsing a card is just a tool for making a payment. How does it make you poorer. People do a quick transfer or pay by dd and once it's paid back before a certain date there are no charges.
That's hardly stress, it takes less than a minute to do a transfer and you get financial protection on your goods s well as other perks.

I've had one since I was 20 and I'm in my 50's now.

I use it for everything and pay it off at the end of the month.

I have got myself into huge trouble with them in the past but I do have 1 now that has a zero balance but i can use if I am travelling etc in an emergency.
DH also has one with me and DD as card holders that she can use in an emergency and he uses on a day to day basis for cashback. Its set up to pay off in full every month though.
They can be great if used properly but can cause a lot of financial hardship if you see it as free money

@BuzzieLittleBee

Same here, only use debit card to take cash out occasionally.

We have had many Eurotunnel trips free with Clubcard points, but as you say, not as good these days. May have to look at a JL card.

For people who fear that they cannot trust themselves not to use CCs unwisely...

Triple wrap it in ziplock bags and freeze it in a tub of Ribena. Leave it at the bottom of the freezer - underneath the peas, fish fingers etc.

Hopefully, by the time you've retrieved and defrosted it, you'll have come to your sense...... but you'll still have it if you really need it.

Yes. I've had one since I was 19 and I'm now over 60.
In my younger days I would use it at the end of the month or for emergency purchases. But I was always in control of the debt as I worked in banking in the days where overdrafts weren't allowed and all spending was monitored by your manager - and was a disciplinary if you got into financial difficulty.
Now I only use it for big bills or to pay deposits on things where there may be a risk to my money if a business goes bust (section 75 protection ). It is always cleared in full every month.
I would never travel abroad without an additional card to my debit card as extra back up.

I wouldn't want to have my debit card left on Amazon, Paypal, those sort of online shops where it just sits there, ready for use.

Yes i did the same. Taught them good financial management

Not having a credit car would make my life very complicated. I just witnessed a long discussion at a car rental, where the person renting had to pay a very large deposit on their debit card, because they didn't have a credit card. Many hotels also insist on credit card for security, not sure what they would do if you didn't have one.

Another reason why I prefer CCs is that the monthly statement provides a clear record of expenditure. Much easier than going through my bank account.

I think it depends how disciplined you are, I got one at 18 and overspent wildly 😅 Then avoided like the plague for a few years.

I have 3 now - one for all personal spending/bills etc, one for holidays and one for work. I play the points game and between all three cards I normally have enough to cover all our personal flights every year (we travel a lot, but always economy) ~ each of them get cleared every month though! The trick is just to act as though it's a debit card and still work through the 'can I afford it' criteria.

Yes. I've had at least one since I was 18.

I use it for all my spending as I get cashback. It also provides additional protection on purchases over £100.

I can count on one hand the number of times I've not paid it back in full, and that's usually an emergency expense (exhaust on my car fell off).

I don't ever use klarna or any other accounts though as I feel they're much worse value for money, but I guess it massively depends on what you find easier and keeps your spending in check!

Yes, paid in full every month by automatic direct debit so no risk of not remembering to pay. Very convenient.

I have one, I put everything on it (points) then clear on payday. I was told to get one by a mortgage broker as my credit rating was lower not because I was in debt but because I wasn’t using credit responsibily as didn’t have any. He said get a phone contract and a cc card you pay off in fill every month. I used to PAYG and use my debit card. Financially it makes no real difference as I don’t overspend.

My advice to my kids is consider how much time it costs you to earn that money. Is it worth two hours of your time to buy fast food. I’d that coat worth ten hours?