To not have a credit card?

[CatsArePeople]

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

I use a credit card for booking holidays and buying stuff online as you get an extra layer of insurance. I pay the balance off immediately.

Fraud as pp have said. And mine is cashback.

I also use mine to manage my spending. I put everything on it- then at the end of the month I know my monthly spend and whether I need to cut back. Debit card all just goes out the bank and I can never be arsed to sit and add it all up.

I also have had a few 0% interest ones to manage holidays/cars/big purchases.

I have a no fee on currency one for using abroad as well.

I am vigilant about setting up dd’s though and always pay the full amount.

They give you more protection on large purchases compared to debit cards (section 75 of the consumer credit act). They are worth it for that alone. I have a credit card but don’t carry a balance, I use it instead of my debit card and pay it off in full every month. Mine is a reward card so I get free stuff (air miles/nectar points/etc) for using it.

I've never have a credit card. I have a mortgage.

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

Huh, how are you paying twice?

Use mine for everything. I have a cash back one. Pay it off in full every month, so I get cash back, extra protection for purchases over £100, a good credit score, and I’ve never paid a penny in interest. What’s not to like.

They're useful as an emergency backup if you ever suddenly need to make a large purchase, and you don't have cash readily available (depending on the limit on the card).

I've got one, but I don't use it for years at a time.

I've got a perfect credit score (999/999 on experian) and never use my credit card (although I do have one). You build up your credit score using all your payments now - rent/mortgage, mobile phone bill, utilities, etc.

I'm assuming it's just outdated advice. If you don't need a credit card, then don't get one.

I've never have one. Never had any issues with getting loans etc

They give you good consumer protection (Section 75) and easy access to emergency funds if you need them.

The only good reason to deliberately refuse to have one is if you suspect that you'll likely use it irresponsibly and drown yourself in debt. So in that case, it's more responsible to do without one.

Therefore, people with credit cards are either responsible or irresponsible, and people without them are in the middle.

We never had credit cards and got a large mortgage.

The focus for the bank was salary and deposit and that there were no CCJs.

Yeah, as others have said it helps your rating. But most importantly is you have protection with it that you don't with a debit card. If you buy something and it's not as advertised and the company won't refund you then the credit card will. Always, always buy holidays and big items on a CC as if something goes wrong the bank will refund you. It's a big risk not to.

@sbhydrogen

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.

Yeah, you can. I have rented loads of cars/vans using my debit card.

I've had a credit card since they were first introduced and have never paid interest because I set up a direct payment for full amount on due date from the bank account.

Actually we saved heaps (when interest rates were higher) because the money was sitting in the bank account earning interest while we used the interest-free days on the credit card.

Would never be without one, actually have two, so if one bank's computer system goes down, then still have the second card to continue shopping etc. Also great if you are travelling and worried about losing or having your wallet stolen...keep the second credit card in a spare wallet/handbag/etc as a replacement card can apparently take weeks to receive.

Gives a good credit rating for mortgage etc, can be used as proof of ID, better protection for purchases and last but not least, can do all your shopping, banking etc online.

A credit card is going to have little if any impact on a mortgage application, the mortgage provider has their own criteria and the debt will be secured.

So long as the adult doesn’t have an overspending problem, I think a credit card is a good idea to have for emergencies and also for the extra buyer protection.

I don’t have one and never have. I have a mortgage. And my credit rating on Experian is 999. DH has one and we use that if we want to protect purchases but it’s rarely used.

I don’t have one or any credit just now.
Credit score is fine. They are good for providing protection if you buy online though so there is that.
Boyfriend has one if needed but I prefer to pay with money I have than pay then pay back so works for me. Each to their own though.

Never had one, no problems getting mortgages, credit score has been 997 for ages. (Until this year I wasn’t and had never been on the electoral role either and still had 997!!)

Put everything on my John Lewis card and pay off when the bill comes in. Get vouchers 3 times a year...usually about £300 in precovid days

Buying anything on card gives you so much more protection in advent of problems than just cash or debit. Even if I have enough for new washing machine putting it on card is much safer option.

Plus it’s better have some Debt and slowly pay off for rating. Rather than just clear it all over month.

I don't have one and won't get one.

My mum was in permanent debt for virtually my whole life. She'd get a credit card to pay off a loan, a loan to pay off that credit car, a credit car to pay off that loan around and around. Occasionally she'd get some money and pay off all her debts and vow not to get into debt again. Nope. Soon a credit card would appear and it would start again.

I won't do the same. If I can't afford something outright I won't buy it.

And I have had a credit card before (joint with my ex) and it's so easy to spend and think you'll pay it off later. I'm too reckless (autistic and possibly adhd) with stuff to do that so I like to keep safe.

I have one for credit rating, protection for large purchases and also because I’ve already got £60 in Amazon vouchers for my normal spending. Lots of rewards options. I never pay any interest. Always save up for any large purchases so I can pay it off. Not sure why you wouldn’t have one really!

Never had a credit card, had lots of mortgages, never a problem. Perfect credit score.

I got one 3 years ago specifically for booking flights. Useless thing.

YANBU. DH and I don’t have them.

I’d always be worried about using it too much, or not paying it off promptly. I’m 35 and have never owned one. I try not to have debt aside from student loan and (hopefully, one day) a mortgage.

I appreciate the point about holiday refunds etc, but I still wouldn’t choose to have one.

I use it for extra protection on buying items over £100.00
I've needed one countless times for car hire when I am abroad. Every Car rentals place hasnt accepted debit cards.
Yeah, you can. I have rented loads of cars/vans using my debit card. is this in UK?
I couldn't get a car in Albania because I left my cc in my other wallet and they obviously refused cash and wouldn't accept a debit.

If you're getting by without one -fine.
It is a good way for young people to build up a good credit rating if they are living at home and don't have any bills in their name.
Both of my lads got a cc at 18 and also set up a dd to pay at least minimum balance if so they wouldn't miss a payment.

Section 75 Consumer protection - this is by far the most useful
Cashback
Additional source of funds in a real crisis (it's not the cheapest way of borrowing, but you can use it immediately and then you have a month to apply for an overdraft or whatever).
Additional means of payment if your bank account is temporarily inaccessible.
Extra layer of defence between you and fraudsters.