Do I need a credit card?
Discussion
I've recently been billed for the €30 credit card stamp duty, which has prompted me to question whether having a credit card is necessary again.
I make one or two purchases a month, which are paid off immediately.
To date, my rationale for having a credit card is for two reasons:
To maintain a credit record if I ever need to borrow money again (unlikely)
For a preauthorisation when hiring a car
I would cancel the credit card if the above reasons were unfounded.
I have EUR and GBP Visa Debit cards and a virtual Revolut card.
Can anyone advise on this?
I make one or two purchases a month, which are paid off immediately.
To date, my rationale for having a credit card is for two reasons:
To maintain a credit record if I ever need to borrow money again (unlikely)
For a preauthorisation when hiring a car
I would cancel the credit card if the above reasons were unfounded.
I have EUR and GBP Visa Debit cards and a virtual Revolut card.
Can anyone advise on this?
I always put online purchases on a credit card rather than debit card on the assumption that it is 'safer'.
I've never been scammed or had to claim on the small print so who knows if it is worth it.
As the OP suggests, credit cards are also good for rental car and hotel deposits as they just put a hold on virtual money rather than real money if you use a debit card.
I've never been scammed or had to claim on the small print so who knows if it is worth it.
As the OP suggests, credit cards are also good for rental car and hotel deposits as they just put a hold on virtual money rather than real money if you use a debit card.
I have had to claim twice on credit card. Once for a hotel which was not as advertised, then an item not being received. In both cases the credit card company provided refunds (partial refund in the hotel case) and were the last point of call when communication broke down. I wouldn't have that protection if I used a debit card or bank transfer.
Not sure what you mean by the Card Stamp duty? Can you not get a card which doesn't charge you fees?
I have one card now which is from New Day, it's an Amazon card so I get Amazon vouchers for my spending, the interest rates are terrible but it's irrelevant because I pay it off every month. Thhey are good for the additional protections they offer.
I have one card now which is from New Day, it's an Amazon card so I get Amazon vouchers for my spending, the interest rates are terrible but it's irrelevant because I pay it off every month. Thhey are good for the additional protections they offer.
Also good for any potential "Oh crap, I need a couple of thousand pounds right now" emergencies and you don't have instant access to your savings, etc. Stick it on the credit card and move money to pay it off when the emergency has passed. This hasn't ever happened to me, but it's good to know I have that potential with me if ever I need it.
So long as you are sensible, having a credit card is a good idea, as it gives more protection for some purchases than a debit card and allows you to deal with potential short term cashflow issues more easily.
Also, I believe having a credit card which you pay off regularly can help improve your credit rating.
Also, I believe having a credit card which you pay off regularly can help improve your credit rating.
Simpo Two said:
Never heard of that. Do you live in Europeland?
Looks like an Irish thing: https://www.revenue.ie/en/property/stamp-duty/othe...Worth it for section 75 of the CCA especially for large purchases. For example if you want to buy a second hand car, pay a small amount - for example the deposit, on a credit card and you will get protection for the entire purchase as the credit card company becomes jointly liable for any breach of contract or misrepresentation by the trader (eg the engine falls out 10 miles down the road)
robbieduncan said:
Looks like an Irish thing: https://www.revenue.ie/en/property/stamp-duty/othe...
Well I never. Well if there's no choice (ie by changing card provider) then I'd agree with the others that it's worth it for the back-up if things go wrong. Thanks to S75 I was able to get back a four-figure deposit from a company that did half a job then lost interest.Just a shame they don't do 1% cashback any more
Simpo Two said:
robbieduncan said:
Looks like an Irish thing: https://www.revenue.ie/en/property/stamp-duty/othe...
Well I never. Well if there's no choice (ie by changing card provider) then I'd agree with the others that it's worth it for the back-up if things go wrong. Thanks to S75 I was able to get back a four-figure deposit from a company that did half a job then lost interest.Just a shame they don't do 1% cashback any more
We put 99% of our purchases through credit card.
54days interest free payment terms.
Usually get points which on the John Lewis cars means cash vouchers usually at good times / Xmas Easter summer. We either use them to pay for some Xmas gifts etc. Card costs nothing.
We have a number of other cards again with reward schemes.
Naturally pay off in full each and every month. Sometimes there can be great 0% for 3 years on purchases (so drop that cash into the mortgage instead or a savings account paying more you make money for nothing).
If you have personal loans with high APR you can find plenty of credit cards offering 3-4 years 0% with a 1.99% “fee” so again you can drastically reduce the interest you would have been paying.
As others have said the safety net of if you buy a holiday flights items over £100(?) then your fully covered. To the point I’d struggle to comprehend why you wouldn’t.
Clearly if you cannot control spend then ask the credit card to lower your limit which they will happily do. They will only increase your limit after a long period of time /evidence of payment management of funds. You can ask to increase limit not sure how often or if they allow it rather it’s credit score + total short term debt you have + income
54days interest free payment terms.
Usually get points which on the John Lewis cars means cash vouchers usually at good times / Xmas Easter summer. We either use them to pay for some Xmas gifts etc. Card costs nothing.
We have a number of other cards again with reward schemes.
Naturally pay off in full each and every month. Sometimes there can be great 0% for 3 years on purchases (so drop that cash into the mortgage instead or a savings account paying more you make money for nothing).
If you have personal loans with high APR you can find plenty of credit cards offering 3-4 years 0% with a 1.99% “fee” so again you can drastically reduce the interest you would have been paying.
As others have said the safety net of if you buy a holiday flights items over £100(?) then your fully covered. To the point I’d struggle to comprehend why you wouldn’t.
Clearly if you cannot control spend then ask the credit card to lower your limit which they will happily do. They will only increase your limit after a long period of time /evidence of payment management of funds. You can ask to increase limit not sure how often or if they allow it rather it’s credit score + total short term debt you have + income
I put absolutely everything I can on my credit card, and pay it off in full every month. You get extra protection, and depending on the card you get, a good bonus as well. Mine is a cashback one, so I got £250 last year - free money.
If you're sensible and don't see the limit as an extension of your bank account, there is no reason not to have one. I've never paid any interest on mine and hopefully never will.
If you're sensible and don't see the limit as an extension of your bank account, there is no reason not to have one. I've never paid any interest on mine and hopefully never will.
SD_1 said:
I put absolutely everything I can on my credit card, and pay it off in full every month. You get extra protection, and depending on the card you get, a good bonus as well. Mine is a cashback one, so I got £250 last year - free money.
If you're sensible and don't see the limit as an extension of your bank account, there is no reason not to have one. I've never paid any interest on mine and hopefully never will.
This. Been using the Amex Platinum cashback card for probably ten years now just buying stuff that I'd buy anyway (food, petrol etc) and normally end up with a few hundred pounds back. If you're sensible and don't see the limit as an extension of your bank account, there is no reason not to have one. I've never paid any interest on mine and hopefully never will.
Also have a couple of old balance transfer cards kicking around that I've thought about cancelling before where I know I can get money relatively cheap and quickly. Needed £5k last year and had a money transfer rate on one of 3.6% p.a. and no fee. Paid it back within a few months at a cost of about £40.
I have one for work expenses, large purchases, online purchases.
I prefer it to cash for protection against fraud, etc and, crucially, if the card is cloned or similar, it's not my "own" money in my current account getting hit.
I pay it off every month - never paid a dime of interest.
I think some people are scared of them because they assume they cost money to have. That's only if you don't pay it off.
I prefer it to cash for protection against fraud, etc and, crucially, if the card is cloned or similar, it's not my "own" money in my current account getting hit.
I pay it off every month - never paid a dime of interest.
I think some people are scared of them because they assume they cost money to have. That's only if you don't pay it off.
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