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.

yes i have a few! rely on them often.

I have my card as an app on my phone, it shows the balance updated daily and has the facility to pay in full at the click of a button. Makes it very easy to keep track of spending and pay it off. It’s very useful for me to see how much I’m spending each month and where my discretionary spending is going.

Yes I have 3. I just use it as a method of payment and clear the balance by direct debit. I don't find that I overspend, I generally buy sensibly and just buy what we need.

I do but I am fucking useless at using it. Maybe like once every year 🤣

my in laws use one all month and pay it off at the end of each month.

And I don't even think it's that cut and dried. Even used as a loan, if done well, can be good. We bought our kitchen on credit card, transferred it to a 0% credit card (with a 0% fee offer). Much cheaper than a loan and allowed us to choose the best kitchen supplier for our needs.

No, I’ve never had one.

DH has one but it’s only ever been used for car hire when we are abroad

Nope. I’ve never had one and I doubt that I’ll ever will.

I thought that I’d need one to build up my credit score when I was in the process of buying my house, but it appears that one wasn’t needed at all!

I haven’t got an overdraft either

I've had one since I was 18 I think.
I pretty much use it exclusively for online purchases, or things I don't feel like paying for until the end of the month. ;)
I used it yesterday to pay for car parking for the holiday I'm going on in April.

Yes supermarket one gives cash back on all purchases. Pay in total every month.

Yes, I have two. One is a JL credit card and I use that for everything to get the points/JL vouchers. I pay it off in full every month and have never been charged interest. I get free money (in the form of vouchers) for using it; surely that makes more financial sense than spending on a debit card?! Plus all the protections that a credit card gives you. The other one is kept as a pure emergency credit card.

Have exclusively used credit cards for all my spending for the last 10 years or so. Pay in full every month, get rewards for use.

If used sensibly, sure, credit cards are fine. But if you use it like OP would be tempted to and rack up any interest it makes you poorer in the long run. Banks don't offer credit cards out of the goodness of their hearts, they do it because they know some % of people will get into debt and have to make repayments. Now I'm pretty sensible and maybe I would be fine, but I've never felt a need for that added complexity in my finances.

*

As for everyone saying they earn money from it through cashback or gifts etc.— I have to assume they're spending a lot more money than I am to get that much back in return. Another case of it being easier to get money when you have money.

People say you need one to get a good credit rating, but in my 20+ years of having a bank account I've never needed it. Just paying bills on time gives you a boost, right?

I do pay all my bills on time, using a credit card to do so doesn’t give me less of a boost. I do then get another boost when I’m able to visit a good friend or travel for free using the points gained on my credit card, which also is paid in full on time. There’s no moral high ground to be gained by being inefficient with my money.

I guess the point is that the fact that some people can’t control themselves while using them, or trust themselves to manage them sensibly, doesn’t mean they’re inherently bad.
Even if I’d only made £50 in vouchers from my CC, that would still be more than it has ever cost me. And no complexity involved for me, bar the 2 mins it took me to set up the DD debit to pay it monthly in full when I first got the card.

Any "debt" gives you a boost if you pay it - so direct debits, phone contracts etc.

I have three. One at 0% which is paying off some debt I got into when young and stupid. A JL for everyday spending, paid off in full each month. One for travel that offers free overseas use, and paid off in full on return.

I have a DD for the first, the others are paid manually so I keep an eye on the total amount.

Vickyvogue25. I knew how things would pan out with my DKs.money was discussed at an early age..at one point my oldest DS lodged with his sister. Her (now ex) boyfriend took out a credit card in my son's name. This was the days when the application forms came in the post,you can imagine the problems it caused! Me, I wanted a small loan to buy a bicycle with seat for said oldest DS to get to work. Bank wouldn't give me a loan that small, said get a credit card. I did and then lost my job, I couldn't pay the balance, the Banks weren't reasonable in those days.. then my ex H was sacked, I had to take on the mortgage payment. Now,it's save up for the item or go without.

I have two and use them for day to day stuff and then pay the balance when it's due. No stress involved at all.

Same.

@mossylog

have you actually checked your credit score?

the time you need a good score will be too late to rectify a bad one

Yes, and it's used for just about every purchase. We pay it off every month and then get John Lewis vouchers as a reward.

I have a Tesco credit card so my spends give me Clubcard points. I have a standing order that pays off the amount every month.

Having a well established line of credit is very useful if you want to apply for things like a mortgage or to rent a home, or even take on a mobile phone contract.

That said, if you feel you have no self control and will spend money you don't have on it, then don't get one. It used to be easier to do because you could get the card and cut it up so you weren't tempted but with online spends you don't need the physical card so much.

Just checked it now with Experian. It says I have an "Excellent" score — 963/999, with four positive influences. I assume that includes having long standing direct debits, and having an overdraft that I never use.

Yes we have 2, an Amex we use for most things and get points from, and a Mastercard we use for places that don’t take Amex, that one gives us cash back. Both are paid off in full every month. I very rarely actually pay for anything with a debit card.

You’re missing the point.
It’s the excess that goes onto the car, in case you have an accident. Once you return the car, it’s cancelled.
You haven’t as such spend the money but it’s blocked ‘just in case’.

Absolutely nothing to do with using a CC to get through your hols.