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.

Also, you can order online and return things before the bill is paid, so can order lots of different sizes and options.

I use Klarna for this, I find it easier than having to check my bank account. I am a bit of a shopper!

Yep - I have two and DH has one. Would never use a debit card for a large purchase - especially not online. Credit cards offer you so much more protection and don't cost you anything as long as you pay them off in full.

Yes, pay for everything with it then clear it at the end of each month. I collect air miles and have had free flights to Thailand, Mexico, The Maldives and Italy for five of us over the last three years. I never pay interest on it. You obviously have to be disciplined and remember it’s a limit not a target!

No, not had a credit card for a good 20 years. Got myself into about 5k debt in my early twenties on two cards. Paid them off and never been tempted since. I try to live on my pay packet. If I can't afford something I simply go without.

Yes, but until recently I've rarely used it. However, I went on holiday to India in the autumn and was told debit cards wouldn't be accepted there. Using it for all my holiday spending and ATM withdrawals made it much simpler to track holiday spending, so I'm planning to use it for holidays in future.

I had major issues receiving debt collection letters from Klarna - I've never even used them. Their systems don't seem very safe or secure to me 😬

Never had a problem myself.

No. I’ve never had one.

What credit card offers the most benefits to someone using it for all purchases and paying off every month?

Yes, I use it for big purchases where I need to buy it now and transfer the money out of savings, eg when the washing machine packed up, booking holidays with friends where I need to pay now to secure it and then get the money off them, and occasionally big purchases where I want the extra protection. It's paid off in full every time.

I wouldn't use it for daily purchases because I'd worry I'd go over what I could afford to repay, and never to buy something I wanted but couldn't afford. If I can't afford it now, chances are I still can't afford it next month when the bill comes in.

Lots of people don't realise they need to have an extra £1500 - £2000 for the insurance excess. So if they don't have a credit card, and don't have the cash in their debit account then they end up having to use their holiday spends or overdraft.

Yes, for the protection and the credit rating. I only use it to buy things I've already got the money for, so don't have to worry about the issue of running up large debts. In temperament I'm more the sort of person who's itching to pay it off, rather than running up a bill and burying my head in the sand.

Pretty much all our spend goes on credit cards and they get paid off in full each month. Over the years we've changed the cards we used. For a long while we used a Tesco card for the points and got lots of money off vouchers as well as being able to convert the points for rewards. Currently we use 2 cards that give us BA Avios points as we travel quite a bit so getting money off our flights / holidays is a massive bonus. We have 2 as not everywhere accepts Amex. Never paid a penny in interest as we pay the balance off each month.

Amex is objectively best but not everyone takes it, which is a pain.
https://www.moneysavingexpert.com/credit-cards/best-credit-card-rewards/
A lot of people like the John Lewis credit card which is simple and just posts you JL vouchers each quarter.

I didn’t use to but (despite luckily never being in debt and always paying off big purchases like cars immediately), I discovered that I had a poor credit rating. Discovered when I tried to open standard bank accounts for kids. Reason was no credit history.
So I have one now and I have some accounts like Amazon directly linked to it. Then I use my everyday day account to pay it off automatically each month. Credit rating v good now.

Yes. Use it for all online purchases. Paid off in full every month.

And I've been at a car rental in Greece where I had booked a car on DHs name who didn't have his credit card with him. They did not accept debit cards he offered and literally refused to give us the car - had to change the booking to my name so I could use my credit card as security.

I think there are 2 separate topics here.

Credit card as such, very useful.
Credit card used as a loan, limit spent and not paid back, especially over a longer period of time - really not a good idea.

I've got a few- all paid off every month. One we just use when we're abroad as it has no fees etc. we earn Avios on the other 2. Useful for all the reasons posted by others.

I agree. But given that something like two thirds of people use their cards as a payment tool and pay it off in full every month, rather than to borrow money they don't have, it's a bit of a reach to go straight to 'I don't have a credit card because I'm not one of those awful people who spend money they don't have' as is seen in all discussions on here about credit cards.

Yip I have 2. I recently closed another one down as I didn't really use it.

One is a zero fee card for using abroad and the other just a regular credit card. Both with who I bank with.

They are cleared every month by direct debit. There's no temptation at all for me as I'd never build up debt knowing the crazy interest rates. Sometimes my min payment is £5 but the interest if £7 😮 I think that should be illegal. You pay the minimum payment and every month the balance increases. That's why it's so easy to get in to debt!

it's a bit of a reach to go straight to 'I don't have a credit card because I'm not one of those awful people who spend money they don't have'

Oh absolutely, my cards are always fully paid off. The late payment fees are way too high not to.

Exactly. I wonder about the financial literacy of those people to be honest.
We got £800 in vouchers last year from using our credit card for all spend and paying back in full at the end of the month. Basically free money, which paid for Christmas.

But why?

My credit card makes it pretty tricky to find what the total balance is that needs paying. Just a big "payment due £10.56" in bold letters. There's a lot of clicking though to find the £1,056.32 that's actually outstanding.