Sensible credit
Discussion
Im finally in the position where I take an income from my business. Currently £500 a week after tax.
Ive always been wary around credit cards and only used debit cards. Am i stupid to keep using debit cards ? Do i need to bother with credit ? It would make life easier for sure, but I dont like owing anyone anything ?
Ive always been wary around credit cards and only used debit cards. Am i stupid to keep using debit cards ? Do i need to bother with credit ? It would make life easier for sure, but I dont like owing anyone anything ?
It is entirely sensible and prudent to use a credit card even if you don't need credit. The benefits of a credit card far exceed the idea many have that its simply a way to buy now pay later.
If you don't need credit, then pick a decent credit card, buy things with it, and have a direct debit pay the full balance each month. This has the following benefits:
a) You build a credit history - this makes it easier to get more credit in the future should you need to
b) You benefit from protection on purchases under the Consumer Credit Act
c) You can benefit from the features some cards will offer you.
If you ALWAYS intend to pay the card in full at the statement date, you will never pay interest on purchases. As a result you need not worry about what the APR is on any card you choose to apply for.
Instead, pick a card based on the benefits it offers YOU that you'll find useful.
Some cards offer extra insurance on electrical goods.
Some cards offer excellent terms on foreign purchases - if you travel abroad then the RIGHT card can be the absolute most convenient and cheapest way of buying things (Halifax Clarity is the winner here)
Some cards offer other benefits, perhaps free travel insurance
Some cards offer you cashback on every purchase you make - usually 1%.
Be sensible, don't see it as free money and don't spend what you don't have and a credit card is an essential thing to have, in my opinion.
If you don't need credit, then pick a decent credit card, buy things with it, and have a direct debit pay the full balance each month. This has the following benefits:
a) You build a credit history - this makes it easier to get more credit in the future should you need to
b) You benefit from protection on purchases under the Consumer Credit Act
c) You can benefit from the features some cards will offer you.
If you ALWAYS intend to pay the card in full at the statement date, you will never pay interest on purchases. As a result you need not worry about what the APR is on any card you choose to apply for.
Instead, pick a card based on the benefits it offers YOU that you'll find useful.
Some cards offer extra insurance on electrical goods.
Some cards offer excellent terms on foreign purchases - if you travel abroad then the RIGHT card can be the absolute most convenient and cheapest way of buying things (Halifax Clarity is the winner here)
Some cards offer other benefits, perhaps free travel insurance
Some cards offer you cashback on every purchase you make - usually 1%.
Be sensible, don't see it as free money and don't spend what you don't have and a credit card is an essential thing to have, in my opinion.
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