Is it ever a good idea to get a credit card?

[SapphireSeptember]

We had the Vanquis people hanging around outside where I work today, and they got me good. Still don't technically have a credit card as I asked them to phone me back tomorrow. (You need a fucking microscope and a degree to read the terms and conditions leaflet, I've had better luck reading the ingredients on tiny lipstick boxes!)

But as I found out today my credit score is really low, because at the age of 28 I've never had a loan or a credit card, because I want to be sensible! I've seen my parents get into debt through getting loans and credit cards, when I first got a job my now husband was unemployed, so I ended up paying off his credit card debt, and to be quite honest, I don't trust myself with a credit card!

Aren't Vanquis the people with the 40% APR?? Seriously, ask your own bank for a credit card, then keep it in the freezer for emergencies.

Interest rate could be a million percent APR and it wouldn't matter if the card is paid off each month Jan as the cost would be zero.

And it's probably better for credit rating purposes to use the card instead of letting it lay domant. Just use it to pay for a tank of fuel or weekly shop, so normal spending, not rampant uncontrolled shopping.

I just put the online shopping on it every week. I could use a debit card, I suppose, but I just use the cc and treat it as if it were a cash purchase. Likewise some other regular purchases.

Barbara is of course right (but if you are unsure whether you trust yourself with a credit card, dont choose one with a massive interest rate).

I think you ought to try one out. If you're very tentative, maybe acquire one with a good interest rate and set yourself a low credit limit - but the ability to manage finances is what people such as mortgage lenders are mainly going to be looking for in future years with you. If you're alert to your issues, there's no real reason why you should fail with it.

It would be a good way of getting yourself a good credit rating if you can trust yourself with it and pay it off in full each month. Maybe just use it for fuel or supermarket shopping and have a direct debit that pays it in full each time. That's how I use my card. I have Tesco and Sainsburys cards that I use for my shopping so that I get extra clubcard/nectar points each time I shop.

Also you can ring them and get the credit limit reduced to £500 or something low. If you feel in any way that you would be tempted to get into debt, then don't do it.

Meant to say, but not a Vanquis one though, get something else!

Yes - I have a direct debit that pays it off in full each month.

Credit cards vary.
If in doubt, avoid any that are chasing you as they are just after fees.
Mine is John Lewis.
I put everything on it every month - several thousand pounds
But I also pay it off in full every month.

I last paid interest 7 years ago during building work as I used consumer protection to buy stuff online.

Credit cards are fab IF
and its a very big iff
You use them to time schedule spending rather than borrow.

I have recently got a credit card - my credit rating was terrible and having clawed my way out of debt I wanted to repair my rating for the future.

I have an Aqua card. It does have a huge APR and a low credit limit but I pay it off in mid month and in full every month so it costs me nothing.

I use it for household expenditure rather than personal expenditure which helps me track what we're spending on bits and bobs!

So you might say that having it has been - now - a fairly positive experience for you?

Not vanquis. Never vanquis.

Out of interest, does anyone know if having a 'piggyback' card can help you with regard to a credit rating? (I'm thinking of the youngsters in our own family who are not really in a position to acquire their own yet, but could do with learning some financial skills and managing their money. I wondered whether having a 'partner' card to those of the adults - or whatever they're called - might help them?)

@cozietosie. It's definitely been positive for me. Obviously I wouldn't advocate getting into debt....BUT...I am so much better at handling my finances now.

Getting a credit card to rebuild my rating was a bit scary - do I trust myself to use it responsibly? Turns out I'm a grown up after all!

Well done.

I have four. All are used at some point but cleared in full every single month. I have a cashback one for petrol and shopping, an amex for all other spending that pays cashback, one I can use abroad fee free and another that I keep as a just in case.
Ten years ago I owed £22k in unsecured debt. I was in a right mess. I worked my backside off to clear it and I learned my lesson. Only money I owe these days is a mortgage. It isn't a case of trusting yourself. If you say something like that it is just an excuse you can use if you max out a card and end up in debt. I have a monthly budget on my cards and I don't go over it.

You could check whether the IKEA credit card is available in the UK (as in the US), there's no annual fee. You don't have to carry it with you, there's no obligation to use it often... and you can pay it off straight away, no need to pile up a debt. There's this (somewhat weird) insurance aspect that goes with credit cards but not debit cards, worth looking into.