First Credit Card
Discussion
Amex and Santander 123 come up a lot for the "perks" you can get for spending on it.
I personally use the 123 card and if you have a current account with Santander they practically throw them at you. I get about enough cashback from it monthly to soak up my £5/month current account cost and get me a couple of coffees so nothing significant.
If you're paying each month, rates are less of a concern to you - and perks are the only thing that will really set them apart.
I personally use the 123 card and if you have a current account with Santander they practically throw them at you. I get about enough cashback from it monthly to soak up my £5/month current account cost and get me a couple of coffees so nothing significant.
If you're paying each month, rates are less of a concern to you - and perks are the only thing that will really set them apart.
If you plan to fully clear the balance every month, *You do not need* a credit card. You are already living with your means. I personally don't think the benefits of carrying a credit card come anywhere near to the risks of carrying one.
Like that new TV ? Sure, go buy it. But can you clear the balance every month ? If not, they've got you paying interest and you've lost the game.
Like that new TV ? Sure, go buy it. But can you clear the balance every month ? If not, they've got you paying interest and you've lost the game.
gavsdavs said:
If you plan to fully clear the balance every month, *You do not need* a credit card. You are already living with your means. I personally don't think the benefits of carrying a credit card come anywhere near to the risks of carrying one.
Like that new TV ? Sure, go buy it. But can you clear the balance every month ? If not, they've got you paying interest and you've lost the game.
Entirely depends on the individual. I've had a credit card since I was 19, so that's getting on for 40 years, and have always cleared the balance every month. You can even make it easy for yourself by setting up a direct debit to do just that. Like that new TV ? Sure, go buy it. But can you clear the balance every month ? If not, they've got you paying interest and you've lost the game.
The various consumer protections you get compared to a debit card, plus the incentives you can get with various credit cards definitely make it worthwhile in my opinion, if you have the small amount of discipline required.
outnumbered said:
Entirely depends on the individual. I've had a credit card since I was 19, so that's getting on for 40 years, and have always cleared the balance every month. You can even make it easy for yourself by setting up a direct debit to do just that.
The various consumer protections you get compared to a debit card, plus the incentives you can get with various credit cards definitely make it worthwhile in my opinion, if you have the small amount of discipline required.
This.The various consumer protections you get compared to a debit card, plus the incentives you can get with various credit cards definitely make it worthwhile in my opinion, if you have the small amount of discipline required.
I've had credit cards for 20+ years and never paid a penny in interest. Pretty much everything I buy goes on credit card - section 75 (and other) protections, plus regular cashback, it's a no brainer.
The only time I use a debit card is foreign currency purchases which count as cash advance so would incur a credit card fee.
Edit to add: Plus, if you're just starting out, having a credit card and paying it off regularly improves your credit score, which will help if and when you want a mortgage/loan/car finance etc.
Edited by deggles on Monday 12th August 13:01
deggles said:
This.
I've had credit cards for 20+ years and never paid a penny in interest. Pretty much everything I buy goes on credit card - section 75 (and other) protections, plus regular cashback, it's a no brainer.
The only time I use a debit card is foreign currency purchases which count as cash advance so would incur a credit card fee.
Edit to add: Plus, if you're just starting out, having a credit card and paying it off regularly improves your credit score, which will help if and when you want a mortgage/loan/car finance etc.
Exactly this. I've left university with no overdraft, never used a credit card/taken one out and now I know I will be able to pay off my balance off in full every month, so I aim to build my credit score for the future. I've had credit cards for 20+ years and never paid a penny in interest. Pretty much everything I buy goes on credit card - section 75 (and other) protections, plus regular cashback, it's a no brainer.
The only time I use a debit card is foreign currency purchases which count as cash advance so would incur a credit card fee.
Edit to add: Plus, if you're just starting out, having a credit card and paying it off regularly improves your credit score, which will help if and when you want a mortgage/loan/car finance etc.
Edited by deggles on Monday 12th August 13:01
I have been looking at the AMEX Platinum Cashback card but only getting a 4/10 chance of approval. Whereas the American Express Card COA is 8/10.
Any idea on how representative the approval calculator is?
The extra "I didn't pay for this yet" protection of a credit card is valuable, but I'm not sure i buy the issue of "improving your credit rating".
it's like improving your credit rating is an end in itself, not just a means to an end. Is that really the case - do people really worry about how good their credit record is - over and above not getting things like CCJs' onto it ?
OP - If you already have the financial discipline to use one without incurring interest then fill your boots, but be aware of the pitfalls and that it's a slippery slope.
You can see a credit card as a length of rope with which to hang yourself.
it's like improving your credit rating is an end in itself, not just a means to an end. Is that really the case - do people really worry about how good their credit record is - over and above not getting things like CCJs' onto it ?
OP - If you already have the financial discipline to use one without incurring interest then fill your boots, but be aware of the pitfalls and that it's a slippery slope.
You can see a credit card as a length of rope with which to hang yourself.
SSG1000 said:
deggles said:
This.
I've had credit cards for 20+ years and never paid a penny in interest. Pretty much everything I buy goes on credit card - section 75 (and other) protections, plus regular cashback, it's a no brainer.
The only time I use a debit card is foreign currency purchases which count as cash advance so would incur a credit card fee.
Edit to add: Plus, if you're just starting out, having a credit card and paying it off regularly improves your credit score, which will help if and when you want a mortgage/loan/car finance etc.
Exactly this. I've left university with no overdraft, never used a credit card/taken one out and now I know I will be able to pay off my balance off in full every month, so I aim to build my credit score for the future. I've had credit cards for 20+ years and never paid a penny in interest. Pretty much everything I buy goes on credit card - section 75 (and other) protections, plus regular cashback, it's a no brainer.
The only time I use a debit card is foreign currency purchases which count as cash advance so would incur a credit card fee.
Edit to add: Plus, if you're just starting out, having a credit card and paying it off regularly improves your credit score, which will help if and when you want a mortgage/loan/car finance etc.
Edited by deggles on Monday 12th August 13:01
I have been looking at the AMEX Platinum Cashback card but only getting a 4/10 chance of approval. Whereas the American Express Card COA is 8/10.
Any idea on how representative the approval calculator is?
As noted already, if paid-back in full each month, it really comes down to the ancillary benefits, aside from the valuable Section 75 consumer protection.
If you had a loan to transfer to the card on a 0% interest deal, then selecting the longest transfer interval at 0% would make sense.
I like to travel, so the Halifax Clarity is something I really should have taken-out before now, specifically for its no-fee benefit re spending & cash withdrawal abroad.
Amex is something I know a lot of others bemoan as awkward, as quite a few businesses refuse to accept it on account of Amex's higher fees charged to them.
Aside from the above considerations, some cards offer airport lounge access, travel insurance etc. - but you'd need to ensure you weren't indirectly paying for those via the fees charged.
If you had a loan to transfer to the card on a 0% interest deal, then selecting the longest transfer interval at 0% would make sense.
I like to travel, so the Halifax Clarity is something I really should have taken-out before now, specifically for its no-fee benefit re spending & cash withdrawal abroad.
Amex is something I know a lot of others bemoan as awkward, as quite a few businesses refuse to accept it on account of Amex's higher fees charged to them.
Aside from the above considerations, some cards offer airport lounge access, travel insurance etc. - but you'd need to ensure you weren't indirectly paying for those via the fees charged.
gavsdavs said:
If you plan to fully clear the balance every month, *You do not need* a credit card. You are already living with your means. I personally don't think the benefits of carrying a credit card come anywhere near to the risks of carrying one.
Lots of small 'perks' to using certain cards, like others on here we simply have a 'pay in full' amount setup every month and use it like our debit cards.Currently we have 3 cards.
1: AMEX for as many things as possible, use to have the Virgin flying miles version ('free' tickets annually + really cheap way to upgrade to premium economy/business class) but AMEX stopped dealing with Virgin and we fly less with a toddler these days. So now on the cashback card- in 10 months we have so far accumulated £198.00 cashback.
2: Nectar Mastercard for shopping/Nectar bonuses, use to have Tesco club card but Tesco offers are now rubbish. Built up £100 worth of nectar points in about 12 months, we'll spend it when they do the annual one point = 3 offer.
3: Halifax card for spending on holiday.
Finally I recent had to contact Mastercard for a non delivered internet purchase. The first time I've had a problem with an online purchases ever. Mastercard refunded me straightaway and chased up the vendor with no more interaction from me.
So in just the last 12 months we've accumulated £300-400 worth of 'perks' simply for spending money on stuff we would have done anyways if we didn't have the credit cards.
Set up 'pay in full' direct debits and your all good. We've never paid a single £ in interest on any credit cards and never intend to
.Note: Tesco Clubcard points + Tesco Mastercard use to be really good, it was double points if you paid with the Tesco Mastercard. In the past we previously go enough points for whole family weekends out for West Midlands safari park, free meals at PizzaExpress, even our current microwave and iron were all 'bought' using Tesco Clubcard points - Sadly all in the past now
.Edited by gangzoom on Wednesday 14th August 06:55
The AMEX everyday cashback one is good, you get 5% back on everything for the first three months and then 1% after. That is for the free one, I think the one with a fee is slightly higher.
Their customer service is really good, and I haven't found anywhere major that doesn't accept it. Mostly some small local businesses that don't.
If you start being irresponsible with it, that is another story of course.
Their customer service is really good, and I haven't found anywhere major that doesn't accept it. Mostly some small local businesses that don't.
gavsdavs said:
If you plan to fully clear the balance every month, *You do not need* a credit card. You are already living with your means. I personally don't think the benefits of carrying a credit card come anywhere near to the risks of carrying one.
I disagree, you are building your credit rating, getting benefits (cashback / points etc), and you have an extra layer of protection for large purchases. I can't see a reason not to have one. Pay it off in full every month and you will never see any interest. If you start being irresponsible with it, that is another story of course.
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