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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To think this is not abnormal?!

380 replies

Linnylinn1 · 24/10/2019 16:19

In work today one of the girls asked me something about a credit card and transferring a balance. I said “oh don’t ask me I have never had a credit card, I don’t know anything about them!” She was totally shocked that I don’t have one (as were the rest of the office!” AIBU to think it’s not THAT shocking!!??

OP posts:
PancakeAndKeith · 25/10/2019 16:07

I find it hard to believe that is all “free” are they not all paid for by the annual fee on your card??!!

I have it on my Amex. There is an annual fee but I cancel it each year before the fee is due and then reapply.

Whitney168 · 25/10/2019 16:13

I find it hard to believe that is all “free” are they not all paid for by the annual fee on your card?

Plenty of cards available with no fees in the UK.

saraclara · 25/10/2019 16:33

@Linnylinn1 I've never paid a fee for a credit card! Bank ones have no fees. It's only companies like American Express that charge a fee.

I have Barclaycard (because it saves me £5 on each cash transaction.abroad, compared to my debit card) and a Tesco MasterCard ( which gives me loads of clubcard points)
Neither charges a fee, and I've never paid a penny in interest.

saraclara · 25/10/2019 16:36

@Linnylinn1 whether or not you want to have a credit card, I really do suggest that you read the Martin Lewis website. I genuinely don't mean to belittle you, but you do seem very uninformed on financial stuff. I've learned loads from that website, and it's saved me a lot of money and stress, and given me a good home finance education.

Original poster
Linnylinn1 · 25/10/2019 16:43

@saraclara I am not in the uk.

OP posts:
Original poster
Linnylinn1 · 25/10/2019 16:46

@saraclara I can manage my home finances perfectly (I have never been in the red, have never had a car loan or finance or even had an overdraft) and I am very well informed in many areas. Yes I may not be up to par on credit cards but I am constantly looking into /reading up on things. I don’t go into anything lightly.

OP posts:
SoyDora · 25/10/2019 17:14

I find it hard to believe that is all “free” are they not all paid for by the annual fee on your card?

No annual fee on any of my credit cards.

NoIDontWatchLoveIsland · 25/10/2019 17:30

I have one I got as a student to book a flight before a university grant came through. The only time I've ever used it since was to pay a deposit for a car we were paying for in full (no finance), for the consumer protection.

Have never had any problems with credit rating and was able to get a good mortgage no trouble. I think it's a myth that everyone needs a credit card to have a good credit rating, although having one and paying it regularly no doubt improves a poorer rating.

ConFusion360 · 25/10/2019 17:38

I find it hard to believe that is all “free” are they not all paid for by the annual fee on your card?

You are correct, somebody is paying. It's just not you.

Every time you use your card, the retailer pays a fee.

HoldMyLobster · 25/10/2019 17:50

Retailers pay a fee whether you use a debit card or a credit card, don't they?

(I'm in the US and I know how it works here - might be different in the UK.)

HoldMyLobster · 25/10/2019 17:51

The credit rating thing again depends on what country you live in.

We had no credit rating when we arrived in the US, so our mortgage was very expensive. As soon as we'd built up a reasonable rating by using credit cards, we remortgaged and cut our rate by 3%. Made a massive difference.

That's more of a US thing though, I suspect.

PancakeAndKeith · 25/10/2019 18:00

Retailers pay a fee whether you use a debit card or a credit card, don't they?

They pay more for a credit card, and that fee varies. Amex costs more for example which is why some smaller retailers don’t take it.

HoldMyLobster · 25/10/2019 18:05

Makes sense - credit card would cost the retailer more because it's giving the user more benefits.

Gwenhwyfar · 25/10/2019 21:29

"I think it's a myth that everyone needs a credit card to have a good credit rating, although having one and paying it regularly no doubt improves a poorer rating."

It's not that you need a credit card, but that you need to show a history of managing debt and a credit card is the easiest way of doing that.
Someone above mentioned a phone contract or having a car on finance as alternatives, but not everyone has, or wants to have, those.

Gwenhwyfar · 25/10/2019 21:31

"I just remembered that DH has one with a high limit for emergencies/natural disasters. "

Natural disasters? Where do you live?

user1019273703 · 25/10/2019 21:33

I have never had one and never intend to! I don't think it is abnormal at all

Gwenhwyfar · 25/10/2019 21:33

"It isn't necessary to have much credit history to take out a mortgage."

Ok, but your daughter got a mortgage at the age of 23 so probably a very high earner to be able to get a mortgage by herself at that age, or obviously destined to be one e.g. future doctor.
I don't think the rules are the same for ordinary earners.

TheHonestTruth100 · 25/10/2019 21:48

I've never needed one either, but I got one simply to do purchases on and pay off every month to build up my credit history. They can have great perks for abroad/cashback etc and insurance on bigger purchases so I'd say it's good to have one if you're the sort of person who doesn't treat it as extra money to spend. I literally do all my spending on it every month, get the cashback then pay the balance off in full so I'm making money from it.

Wouldn't say it's abnormal not to have a credit card, but a credit card isn't only to borrow money you don't have.

broomzoom · 25/10/2019 21:53

"I just remembered that DH has one with a high limit for emergencies/natural disasters. "

Natural disasters? Where do you live?

Well I did say he was a pessimist & it was emergencies/natural disasters.

We live in England so only really at risk of flooding I guess. However we have visited Thailand, Japan, New Zealand etc hence why he wants it for abroad.

RiftGibbon · 25/10/2019 21:56

I haven't had one for a decade.

AngelsOnHigh · 27/10/2019 21:10

Spidey, perhaps now you can tell me why I can't seem to make smiley faces. Never seem to work for me Smile

AngelsOnHigh · 27/10/2019 21:11

Damn, it just worked. First time ever.

Gwenhwyfar · 27/10/2019 22:58

"We live in England so only really at risk of flooding I guess."

And even then only if you live on a flood plain.

Cornishclio · 27/10/2019 23:58

I was a debt counsellor in a previous life and post regularly on the money saving expert debt forums. There are many people who should never have credit cards and get themselves in a lot of trouble. I also doubt the cashback/rewards are as much as some have said. To get £1000 cashback you would need to spend £100k which is beyond most people.

We have a credit card each and use it for supermarket shops and fuel spends and pay it off in full each month. The cashback is normally around £8 a month and the fee is £3 so not a fortune. For the odd big spend it might be worth it for the s75 protection but many times you have to pay more if you pay using a credit card.

FlashesOfRage · 27/10/2019 23:59

34, never had a credit card 👍 find the concept bizarre and risk filled

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