Should I get a credit card?


#21

Which card?


#22

Which AMEX? The unpaid option is mostly pointess for points…


#23

Five reasons:

*Section 75 protection
*Credit score
*Car rentals (they often won’t accept debit cards)
*To get a Visa card (it’s good to carry both MasterCard and Visa in some countries)
*Unlimited fee free foreign ATM withdrawals (with a Halifax Clarity card)


#24

Can I ask for some details please :slight_smile:

Which Amex card is that?
How much does it cost?
Which airline loyalty scheme to you get points with?
How much have you spent over the past three years to earn those fights (if you don’t mind me asking)?


#25

Well sound likes I should get one but does anyone have one they recommend?


(Jack) #26

It entirely depends on your situation. I know Tandem bank do a credit card and they are a fintech so you could check them out?


#27

I like the Halifax Clarity for the foreign ATM withdrawals.


#28

Cash on a credit card? Do they not charge interest from the day you pull it?


(Jamie 🏳️‍🌈) #29

Yes. You can pay it off immediately to get the benefit of foreign ATM use and avoid interest, but these days a Starling debit card achieves the same result without the hassle.


(Lewis King) #31

BA Premium card, and then churning a Gold card every 6 months.
Ba Premium card is £195 a year, but you get a 2-4-1 avios redemption which I found worth it when I wasn’t single.
BA Executive Club.
I would say nothing over my normal spend, but you do have to hit £10k in a year for the BA card, easier with a partner. Not going to manage it this year.


(Gavin) #32

Having had credit cards for a number of decades, I honestly wouldn’t wish one on my worst enemy.

There are better ways to build a credit score, if that is what you wanted to do. An overdraft, a phone contract, or a loan for something specific and that has a definite end date. Credit cards can all too easily become an expensive way to acquire a lot of stuff you may not need or really be able to afford.


#33

True, if you aren’t sensible with money, it can be a very slippery slope indeed.

But… In my experience, credit cards are an excellent way to manage finances, limit risk, build credit history and accrue “points/cashback” by doing absolutely nothing that you wouldn’t already do.


(Gavin) #34

Really not sure about the “limit risk” part. I’d argue it’s more of a false sense of security that would encourage some to take on risk they wouldn’t normally consider.


#35

Introducing… Section 75 - Your way to limit risk when spending over £100 on your credit card :smiley:

https://www.money.co.uk/credit-cards/how-does-section-75-protect-your-credit-card-spending.htm

Edit…

If this applies to someone, I’d agree that they probably shouldn’t have a credit card.

But for the millions of people who don’t feel the need to buy things “just because I have a credit card”, using a CC is simply a better way of doing it.


(Gavin) #36

If this applies to someone, I’d agree that they probably shouldn’t have a credit card.

Which is why I couldn’t recommend someone get a credit card, knowing they could be one of those people.

Particularly as the average UK non-mortgage debt is hovering around £8000. There are a lot of people who fall into that trap:


#37

:man_shrugging: I can’t see how suggesting to not get one is going to help.

People need to take responsibility for their finances.

I’ve saved thousands (literally, thousands) by using credit cards, taking advantages of the offers/cash back/points etc etc.

If more people did that in a responsible way, maybe they’d be better off?


(Gavin) #38

It’s a big if, that. :slight_smile:


(Jamie 🏳️‍🌈) #39

Do you not recommend driving anywhere, in case the driver runs someone over? Don’t recommend someone uses Google, in case they look up long lens pictures of pop stars on the beach?

I’m genuinely interested on where you see your responsibility for others ending.


(Gavin) #40

I don’t think the level of risk is comparable. The chances of running someone over is probably relatively small compared to the chance of someone borrowing more than they can realistically afford to pay back.

Could I ‘recommend’ someone I didn’t know take up smoking or binge-drinking? No. They might be fine, they may really enjoy it, but then again they may end up an alcoholic.

Whilst what they do isn’t my problem, I can’t recommend someone do something that may end up causing them problems down the line.


#41

Some road stats for you…

In total, there were 170,993 casualties of all severities in reported road traffic accidents in 2017. This is 6 per cent lower than in 2016 and is the lowest level on record. However, this figure should be interpreted with caution for two reasons as it has long been known that non-fatal (and particularly slight) casualties are underreported to the police and therefore this figure is likely to be an underestimate of the total and the introduction of online self-reporting by the Metropolitan Police Service in 2017 is likely to have led to an increase in the number of non-fatal (and particularly slight) casualties reported in London and therefore impact the total for Great Britain.

That’s 468 casualties every day… A huge number.

On that basis, I couldn’t recommend anyone drive, ever.

Don’t get me wrong, I understand what you are trying to say - I just think you are perhaps talking from a negative experience (given what you’ve said previously), and actually, if you’d used credit cards to your advantage, you could perhaps teach others how best to use them, and everyone would be better off.

For example, my family all use credit cards now - They all take advantage of the offers and cash back, and all of them are much better off for it.

The point still stands that if you are not financially savvy or irresponsible with money, you are probably better off staying away from them.

But I can safely say to the people who ARE responsible - A credit card is hands down the best way to go about your spending.