To not have a credit card?

[CatsArePeople]

Somebody just told me that credit cards are must have for a responsible adult. Seriously? Why?

Help with credit rating.

Because it helps you build up a credit rating. Otherwise when you come to apply for a mortgage, car loan etc you'll have no credit history and they won't be as keen to lend to you.

My dad marched me into a bank as soon as I turned 18, made me get a credit card, told me to put a minimum of £10 on it a month and set up a direct debit to pay it off in full every month. (don't forget to put it in DD else you may forget to pay the bill and ruin your credit).

When I came to apply for my first mortgage i had a perfect credit rating.

I don’t have one

I dont have one and dont have a poor credit rating. Credit ratings are also based off payment of bills etc.

They help with your credit record/credit history, which is important if you need a mortgage/loan or similar later. Lenders need to see you can manage money, borrow and pay back responsibly.

Never had a credit card, and never had a problem getting mortgage.

I do have one now, but have never used it. I refuse to pay twice for things!

The better your credit rating, the less you need credit...

I would also say that I havent struggled to get a mortgage either. You dont need one.

As others say they’re good for building your credit rating (if you buy things and pay them off in full). I also find they’re quite good for booking things like holidays as they have added protection if the operator goes bust.

Never had one, got a mortgage no problem

Never had a credit card - never had problems getting a mortgage.

I didn't have a credit card when I got my first mortgage, nor the last time I moved. I currently only have one as needed it to secure car hire on holiday (although paid in advance on my debit card), I've never spent a penny on it and my credit is perfect.

My BFF has several and the temptation of free and easy money has been too much, she's paying off thousands plus astronomical interest and this has destroyed her credit rating.

There are many ways to build and maintain a good credit history, I've managed to lead a very responsible life without a credit card!

Mine offers me lots of things like cashback and Airmiles (or Avios or whatever they're called these days). I got to fly business class on holiday once 😌

I don't have one and I my credit rating is not remotely important to me.

They’re great provided you pay off in full each month. Many places only accept credit cards for example some foreign car hire companies, also additional legal/refund protection for purchases over £100, convenient for group purchases (if I’m buying concert tickets/plane tickets for a group, can be purchased and paid by friends/family when they have time), show you have had access to (and wisely/conservatively used it) which is good for lenders when looking for larger credit such as mortgages or loans.

I also use my credit card online, because if something goes wrong you'll get your money back. With a debit card you're screwed. I use mine for renting vehicles, too. I don't think you can do that with a debit card.

DH is from overseas and we’d have struggled to get a mortgage offer if he didn’t have a credit card, therefore a credit rating.

That’s despite us having to pay a 25% deposit.

They're important too, for consumer protection on purchases as well as credit rating. I also always felt it's important to have a way to pay for things in such emergency instances as car breakdowns and getting me going again etc. So I got one as soon as I could and now I have a cashback credit card so make money from it as I pay it off each month. It's great!

I have one for online purchases, you have greater protection plus in the worst case fraud scenarios it’s limited and not the same as emptying my account/ overdraft via my debit card.

Never had one and have good credit and never a problem getting credit either

I don't have one, no issues with getting a mortgage.

Foreign car hire - we nearly ended up without a car on our honeymoon. Eventually used DH's work credit card which we technically shouldn't have done.

I also agree with the fraud scenario. Better a credit card bill that you can dispute and not pay than an empty bank account.

They help with credit rating as outlined but depending on the card can have other benefits. I have one where the points mean I have had free entry to places like Legoland, Sealife centre, Conkers, West Midlands Safari Park and the Jvorvik Viking centre, plus multiple ferry trips and free magazine subscriptions. DH used his to pay for a weeks car hire in America and we have stayed in a couple of really decent hotels. He also had one where you could earn money. We use our credit card like it’s a debit card. Plus if you buy some items there is another layer of protection.

I’m 23 without a credit card because I know I’d be really irresponsible with it.

I don't have one. It would be dangerous for me as I can be a reckless spender.