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Is it strange not to have a credit card through choice?
mums angels
05-Jan-07, 23:00
No I don't think its strange, I think its sensible. My husband and I have no credit cards and no debts other than the mortgage - we're happy with that !
footie chick
05-Jan-07, 23:08
Is it strange not to have a credit card through choice?
No very sensible
Stay away from the Devil's plastic!
Stay away from the Devil's plastic!
I will do, it's just it was suggested to me that maybe I should get one but I'm not into them, cash is what I believe in.
Conscience
05-Jan-07, 23:20
No. I have not had a credit card for twenty years. I get along just fine without one.
I am a firm believer in saving for something I want, and earning interest on those savings as they accumulate, rather than buying it on the never never with a credit card and paying extortionate interest to someone else.
DarkAngel
05-Jan-07, 23:24
As footie chick said..Its very sensibe not to have one thru choice!.. I got a credit Card when i turned 18 and i thought it was great..Went about swiping here and there..Now im 21 and im still payin it off..Little by little as not working at the moment..Nearly there though But "NEVER" again!!
They are dangerous if you unsensible lol :lol:
Whitewater
05-Jan-07, 23:44
Cedit Cards are OK as long as you use them sensibly i.e. pay them off at the end of every month. Any articles purchased with a credit card are protected, but they must not be used to purchase articles you would not otherwise be able to buy as the Interest rates are far too high. PAY THEM OFF FULLY AT THE END OF THE MONTH. If you can do without them, that is good, but it is rapidly reaching the stage where cash will not be so readily acceptable in some areas of the retail trade.
Conscience
05-Jan-07, 23:48
but it is rapidly reaching the stage where cash will not be so readily acceptable in some areas of the retail trade.
Then those areas of the retail trade will not get my business.
Getting a credit card, even if you use it vary rarely, is a good way to build up credit. As others have said always pay it off at the end of the month.
If you buy a lot of goods online I believe using a credit card, vs a debit card, gives you better protection but I would check with your bank.
Bobinovich
06-Jan-07, 00:17
I have 2 credit cards - one is joint with the wife (we don't have a joint bank account) and is used for all household purchases (food, stuff for kids, etc.) and gets paid off every month (bill is split down the middle). It is a GM (General Motors) card so the use of it adds to our points total, this subsequently takes pounds off when we renew our Vauxhall cars. We both saved approx. £1000 off each of our current vehicles when we bought them after using the card for just 3 years.
The other card is one I've had since I was much younger - it's seen me through many tight spots but now serves me well in my business, allowing me to protect my purchases as well as keep easy track of them. The balance is higher than I'd like but I intend to change that in due course at which point I'm going to reduce the limit drastically! I admit I've accrued a lot in interest over the years but there have been times (especially when I was establishing my business) where it has been my only option.
While the latter could be dispensed with eventually, the former works well for us!
Lolabelle
06-Jan-07, 01:26
I have never had a credit card and will not, I have not got the discipline required and I know I would get myself in trouble. Fortunately I don't really need one. We do have debit cards, but even our business doesn't have an overdraft.
If we don't have it, we don't spend it. Personally or in the Business.
j4bberw0ck
06-Jan-07, 01:40
The simple argument in favour of credit cards is protection under the Consumer Credit Act for purchases in excess of £100 paid for on the card; several Farepak agents who'd routed their clients' payments through their own credit card were able to claim back the entire amount from the credit card issuer.
Also, it's a firebreak between your debit card / bank account details when buying on line.
I keep 2 credit cards; one exclsuively for online use with a low credit limit. One with a higher credit limit for everyday use. Both paid off in full each month, which is the only way to go.
And as Tristan says, it builds your credit record.
Conscience's attitude is fine, but a little like cutting off your nose to spite your face. IMO of course.
Conscience
06-Jan-07, 02:14
I was brought up to not spend what I don't have. I have no debts at all. My home is paid for, my car is paid for, all my utility bills are paid on time or a couple of days early. I earn a lot of interest on my savings. I see no point paying interest to someone else just so I can 'have it now'.
I was brought up to not spend what I don't have. I have no debts at all. My home is paid for, my car is paid for, all my utility bills are paid on time or a couple of days early. I earn a lot of interest on my savings. I see no point paying interest to someone else just so I can 'have it now'.
As long as you clear the full amount every month then there is no interest to pay. I have three Credit Cards and would not be without them because, used properly, they are very useful. They are not for everyone though and I think the issuers should be more strict about who they allow to have a card. I have seen many get into trouble through the credit being so easy to access. I have no debt either but it is scary to think that I could obtain more than £10,000 in credit without even having to ask anybody!!
I refused to join the plastic fantastic brigade until last year. I realised i had very little credit rating and it is one of the best ways to get good credit. I spend a litttle on it each month (any big payments or important payments) and then pay it off each month in full.
Like has been said before it is good for shopping online and for buys of over £100 as you are covered.
Is it strange not to have a credit card through choice?
Not at all.. i would say its sensible, if nothing else....
I do have a 1 high limit credit card but it very rarely gets used, its more of an emergency life line if ever in need, thankfully its been around 10 pence in credit for a few years now.
There have been a few occasions where it was invaluable and strangely the only option to purchase in a few occasions, (this was while traveling) but i make a point of transfering the balance as soon as possible.
I also read some information about some people without credit ratings being in real trouble in the future, if certain laws are enforced and the banks have to rethink how to continually make billions in profit every year as we (uk) have a pretty unique banking system compared with most other places and strangely enough, some would say we have extremely cheap banking practises, mainly becasue of people who live beyond thier means, (and i accept its not all through choice) who in turn kind of subsidise our current banking practises.
If these get tightened up whoever already hasn't signed up may find it excedingly dificult to find credit. unless it is with new type "banks" with even scarier interest rates. but sadly i cannot seem to track the info anymore, Newsnight on BBC2 informed me of the situation intially.
Conscience
06-Jan-07, 20:03
Why would I care what my credit rating is? If you don't live outside your means you don't need credit.
j4bberw0ck
06-Jan-07, 21:36
Ey oop, Conscience is in holier-than-thou mode again <yawn> .
Credit cards are a payment facilitator first and foremost. They make life more convenient for those who wish to have the convenience. Most people need access to some sort of credit at times during their lives; the trick is using it properly and paying it off again as quickly as reasonably possible.
I agree, though, with those who've said that credit cards are too easily available with high credit limits. I think it's particularly cynical and loathsome that many credit card issuers (who aren't all banks, incidentally) have reduced the minimum repayment to 2% or 3% of the balance outstanding - it scarcely covers the interest, leaving the balance outstanding much higher for much longer.
We have a credit card with Alaska Airlines and its affiliate, British Air. We charge everything on it, petrol, groceries, clothing, but pay it in full every month. Have enough mileage now for both of us to fly anywhere inthe world (and back!) lol
And it builds a credit record for when we arrange a loan to buy a house.
Credit cards are not for everyone though. It's easy to get into big debt. Just read a newspaper article; on average, Americans have a larger debt load than savings account. Shocking. Talk about a house of cards.
I am in the fortunate position of being able to pay by cash and I accept that not all can do this.
However, I use credit cards all the time and pay off every month so having no debt. I have no debt of any form, except during the month while I wait for the bill, despite having the cards. They are a protection against faulty goods, non delivery of goods, etc. They can sometimes save time in stores and petrol stations and certainly save me hunting around for cash in my pockets. They also are great when eating out or on holiday.
I get points on my M & Card, which I use a lot, so can use the vouchers in their stores - at Tesco I get points on my Tesco Card for Petrol and I pay with M & S getting double points to spend
They, of course, have some disadvantages but those are far outweighted by the convenience.
If you have the discipline and can pay off each month have a credit card - if not - think twice.
rockchick
06-Jan-07, 22:05
Taking Conscience's point with a (big) grain of salt...
Credit cards are a great financial tool, but, like most tools, they don't take the place of common sense of the tool wielder! Credit cards are an expensive way to borrow - and when you borrow, you have to pay back.
It's a bit of a game between yourself and the credit card company. You are betting on the convenience and the extra safety that using a credit card allows...and if you pay off your balance every month, so that you don't have to pay interest or the extortionate charges, you will win. The credit cards are betting that, given the financial freedom of "free" money, you will overspend, and have to pay them back, usually at 16% interest, but up to 29% interest on store cards. Obviously the credit card companies are winning the bets, otherwise there wouldn't be any money in it! and they would shut down.
I was brought up on the principle that, if you couldn't afford to pay cash for an item, you probably didn't need it, and could go without. With the exception of a mortgage this has held true. I don't "need" Sky TV, or a brand-new leather couch (but it's been really nice when I can afford them!) I do have credit cards, both for the convenience and to build up a credit record, but they are paid off each month, and I rarely pay interest on borrowed money. Wish we could all be so lucky!
j4bberw0ck
07-Jan-07, 02:18
:lol: Just got negative reputation from Conscience, who said:
I stated my belief that credit is unnecessary. That does not warrant accusations or insults of being 'holier than thou'.
Conscience, of course, has disabled PMs in his or her profile so I can't respond that way. I stated my belief, and for the record I stand by it, that Conscience has consistently adopted a "holier than thou" attitude in this and other threads.
I think you'll find, Conscience, that many people less exalted than you see yourself as being have a place for credit in their lives, and more, a place for a convenient means of making payments for goods and services - especially living in a remote area of the country such as Caithness or Orkney.
In another thread, you said:
I am a manager and forklift driver for a large goods in/goods out warehouse.
which makes me wonder whether you're a reincarnation of the late and not deeply lamented Dreadnought, who (as I recall) had a similar occupation down in the south east of England and a similarly yes/no, 0/1, black/white, holier-than-thou interpretation of the world. If it is you, permit me the observation that it must be nice, sometimes, to be able to wander down the road to some enormous retail outlet and get what you want for cash.
Conscience
07-Jan-07, 02:32
Below are original posts and my replies. Please explain how my replies warrant your insults. You will notice I have remained on topic, I have not attacked or belittled anyone for their views (read the quotes below to see who is doing that). It seems to be commonplace on this website, that when people cannot argue the point they turn their attention to the poster's character to try to discredit them. Again, the quotes below show this happening.
Is it strange not to have a credit card through choice?
No. I have not had a credit card for twenty years. I get along just fine without one.
I am a firm believer in saving for something I want, and earning interest on those savings as they accumulate, rather than buying it on the never never with a credit card and paying extortionate interest to someone else.
but it is rapidly reaching the stage where cash will not be so readily acceptable in some areas of the retail trade.
Then those areas of the retail trade will not get my business.
Conscience's attitude is fine, but a little like cutting off your nose to spite your face. IMO of course.
I was brought up to not spend what I don't have. I have no debts at all. My home is paid for, my car is paid for, all my utility bills are paid on time or a couple of days early. I earn a lot of interest on my savings. I see no point paying interest to someone else just so I can 'have it now'.
I refused to join the plastic fantastic brigade until last year. I realised i had very little credit rating and it is one of the best ways to get good credit.
Why would I care what my credit rating is? If you don't live outside your means you don't need credit.
Ey oop, Conscience is in holier-than-thou mode again <yawn> .
and so on into your most recent post.
j4bberw0ck
07-Jan-07, 02:36
Conscience, I'm under no obligation to explain anything to you. I doubt you'd listen anyway.
The truth must hurt. Can I take it, then, that you are the late Dreadnought? :lol:
Conscience
07-Jan-07, 02:39
I have no idea what you are talking about. You look like you are trying to drag this thread off topic to me.
Please explain how it is better to be in the red and paying interest to others rather than in the black and earning interest?
using a credit card doesnt mean you have to be in the red and paying interest. How can you not seperate the two? A person can use a credit card to advantage (mileage points, General Motors etc) without paying interest. Ye missed the point about paying off balance each month.
R we back on topic now.
Credit cards are a must if you have to travel a lot or work away. i would not leave the house without them.
As said previously you need to manage them and don't get carried away.
It's a bit of a game between yourself and the credit card company. You are betting on the convenience and the extra safety that using a credit card allows...and if you pay off your balance every month, so that you don't have to pay interest or the extortionate charges, you will win. The credit cards are betting that, given the financial freedom of "free" money, you will overspend, and have to pay them back, usually at 16% interest, but up to 29% interest on store cards. Obviously the credit card companies are winning the bets, otherwise there wouldn't be any money in it! and they would shut down.
There is still money in it even from people who pay off their credit cards every month. The credit card companies charge the retailer a percentage but make them sign an agreement not to charge more for credit card sales. So in effect even people who pay cash are paying the credit card companies.
Also, if someone settles their credit card bill at the end of the month then the chances are that they are paying the credit card company before they part with any money to the retailer, you are effectively lending the credit card company money not borrowing it.
Naefearjustbeer
07-Jan-07, 11:22
Why would I care what my credit rating is? If you don't live outside your means you don't need credit.
If you take out a mobile phone contract they run a credit check on you first, If you do not have a credit rating you do not get the phone and will have to stick to the much more expensive pay as you talk options. I am sure there are many other things that require a credit check that you may get refused if you do not have that credit rating.
We have 3 credit cards and use one of them every month and pay off large amounts every month. Our Alliance and leicester card gives us cash back every year so if you clear your balance every month then you will actually save money in the long run as you pay no interest and get a small percentage back. I also have a MBNA card which I have in my wallet as an emergency life line card only to be used if the world collapses around my ears. We also have an egg card and it is incredibly easy to use and manage online. Also as mentioned for purchases you have the added protection and we have in the past reclaimed payments made with our card. I do not like having a balance left on my card at the end of the month but it happens sometimes. By having 3 cards you can do balance transfers to zero percent offers and not pay any interest on your cards. The scary thing is that across our 3 cards we have more than 30 grands worth of available credit. We would never run up our cards but the temptation to the weak willed shopaholics must be great.
j4bberw0ck
08-Jan-07, 09:38
Hehehe - notified last evening of three fraudulent transactions on my credit card. All for online gambling (and no, I don't).
I'm careful about my card details (worked in the industry for 15 years) so this one is a mystery. They didn't need a PIN to use the card for online poker, but did they need the CVV (the number of the back - three digits). If so, they must have lifted my card details from an online / telephone purchase or by physically having the card.
I have my suspicions but the Fraud Team at my card issuer is investigating. Sadly, I'll never find out what the outcome was.....
Full marks to the credit card issuer for picking up "outside of normal" transactions using the card.
Using a credit card can be very benificial - if you have the discipline to use it right. I have a credit card that pays me 0.5% money-back on it, so every time I spend money on it, I get a few pennies back. Its not much, but it adds up and it also lets me leave my money in my bank for upto 60 days earning a few pennies interest. I paid for all my Xmas shopping with it even though I already had the money set aside. Because I pay my balance in full every month it means I never pay any bank charges and get money back and intrest at the same time. I also paid for most of my wedding using my credit card, so this year we've got enough money back to treat ourselves to a meal out. :D
But, its scary to think that despite paying for our wedding reception by credit card, the minimum payment was so pitiful that it wouldn't have covered the intrest they put on if thats all I paid. I would NEVER use a credit card if I thought there was a chance I would splash out and not be able to pay it off at end of the month. I know too many people that are still trying to dig themselves out of a financial mess because they used their card in 'emergencies' (xmas presents for kids, new computer, holidays .......)
I dont have one - I found out that you need to have the money to afford the things you buy on the credit card. If i cant afford it then i dont buy it -simple. I would get into such a mess swapping cards and zero interest offers and the like. I am better without one.
The Bruce has one that pays for satellite and nothing else but is there for emergencies. He is never tempted so its not a problem
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