TheChai Posted June 15, 2008 Report Share Posted June 15, 2008 Debate! I am looking at abbeys Zero card, seems very attractive, especially the 0% foreign exchange rate. What are your experiences with credit cards? when do you lose out the most when you get one? how can you make it such that it benefits you? Any help would be great.. I am in need of money for a trip back to Singapore. Quote Link to comment Share on other sites More sharing options...
Smo™ Posted June 15, 2008 Report Share Posted June 15, 2008 Save up bud. Credit cards are a gateway to massive debt. Quote Link to comment Share on other sites More sharing options...
Sonny Clarke Posted June 15, 2008 Report Share Posted June 15, 2008 Save up bud. Credit cards are a gateway to massive debt. What he said, credit cards are actually made to produce debt, your are buying stuff with money you potentialy don't have. Quote Link to comment Share on other sites More sharing options...
Fish-Finger-er Posted June 15, 2008 Report Share Posted June 15, 2008 it depends how your going to use it, if your using it as something to fall back on as an emergency, its useful(bear in mind genuine emergencies, not your mates are going out friday, and you want to go) or if your using it to buy stuff you already have the money for, then go for it. but if your using it to buy stuff on the premise that youll be able to afford them 4 months down the line. then dont get them. As although technically you will, 4 months down the line, you wont have anything new, and theyll be something else you want. so youll most likely get that new thing on their. I use mine for big stuff, car insurance, festival tickets, and the like. but the trouble is, when youve stuck £700 for festival tickets on there one month, sticking £20 here and there for fuel or to keep your current account looking healthy. sound adds up. admittedly im now in a situation where i owe more money than i have, by about £1500. but if i hadnt had credit cards, id likely of ended up having a loan for my car. and id be paying my car and bike insurance monthly, and would technically owe them £900 via direct debit. Theyve benefitted me hugely, but for a couple of weeks between paychecks, theyve looked like they crashed my world(last month i owed like £3000 on them, and had £0 in my current account, whilst i was waiting for several large cheques to clear, which looked a bit daunting). and ive seen people run up £10000 + debts on them, just on nights out, big tvs they dont need, new computers, and shopping trips etc. Quote Link to comment Share on other sites More sharing options...
haydon_peter Posted June 15, 2008 Report Share Posted June 15, 2008 Nationwide also do commission free use abroad, this comes with their credit and debit cards so you could set up a current account with them and just get a debit card. My experience: I got a Nationwide credit card for my trip to Australia last year, I only got it as a back up but in the end used most of the £1500 limit. It really did help with my trip and I ended up paying hardly any interest however this was because... At the time I got the card there was a 3 months interest free offer, I knew I was only going away for 2-3 months and I also knew that I had a full time job when I got back! If you go down the credit card route you could easily get yourself into debt but as long as your sensible and know you can afford to pay the card off when you return home you should be fine. Quote Link to comment Share on other sites More sharing options...
Revolver Posted June 16, 2008 Report Share Posted June 16, 2008 Credit cards are shite, but they improve your credit rating. However they don't improve your credit rating if you don't use them. Quote Link to comment Share on other sites More sharing options...
monkeyseemonkeydo Posted June 16, 2008 Report Share Posted June 16, 2008 Click me. I have a credit card but use it only for internet purchases (you then have some comeback if something doesn't turn up, which I don't think you do with a debit card). Also quite good to have as a backup if you go abroad. I also make sure I clear it off at the end of every month so I never really use the 'credit' facility properly. Best way to play it I reckon. Quote Link to comment Share on other sites More sharing options...
BONGO Posted June 16, 2008 Report Share Posted June 16, 2008 how can you make it such that it benefits you? Get one with 0% for longest etc etc, shop around and you know the best when you see it. when do you lose out the most when you get one? When you use it!! Hehe, no seriously, you lose out when you begine spending on it and can't pay it off quickly. Best thing to do is say, if you can't afford to pay it off in the next month, it's too expensive to get. If you KNOW you can pay it off quickly, no problem. Don't go putting 2k on it unless you are sure you can pay it off and are happy paying the interest. Make the most out of the 0% interest while you can, then my advice would be to enter the interest period with nothing outstanding, and keep it that way. Great for emergencies so worth having one. What are your experiences with credit cards? Good. I have 2, both used in emergencies, or i'll have the money, but buy with credit card and pay it straight off, that way, you can benefit from the insurance on the product which you get by buying it with the card. I am in need of money for a trip back to Singapore. Plan how you are going to repay it as fast as possible. If there is no visible way of repaying when you're back, then you can't afford it and you're on the way to getting in the vicious circle of credit card bills building and building. You can end up paying £100 per month, yet your bill only drops by £10 or £15 per month. They're good if you're good. They're handy and can pull you out of circumstances like losing your wallet, forgetting your debit card at the petrol station etc. bongo Quote Link to comment Share on other sites More sharing options...
JB1 Posted June 16, 2008 Report Share Posted June 16, 2008 I have one, but only use it for emergencies or purchases from the internet. Mainly for the insurance I get with it. Only ever use it to buy things if I have the money ready to pay it off straight away. Very easy to get into dept with them though, espescially if its your first c.card! Quote Link to comment Share on other sites More sharing options...
TomR Posted June 16, 2008 Report Share Posted June 16, 2008 Like it's been said above, don't get one to buy stuff you know you can't afford. I've had my debit card cloned for he second time (£800 first time, £1500 second time) and im looking to get a credit card for the extra security they offer, but that's it, i'll be buying stuff i already have the money for so debt's not going to be problematic. Quote Link to comment Share on other sites More sharing options...
Diz Posted June 17, 2008 Report Share Posted June 17, 2008 If i could, i'd go back and never apply for my credit cards. I got them when i was back in uni and still have them now...completely maxxed! At the moment i have almost 7 grand on cards...i did buy two bikes and loads of cds, dvds etc, but reckon i'll be paying these off for the rest of my life!? At the end of the day, if you can afford to live without them, do it. Otherwise try and pay it off asap, or work it so that you keep switching between cards with 0% balance transfers, that way at least you're only paying for the money you've borrowed rather than the stupid amounts of interest. Check out this site: http://www.moneysavingexpert.com/cards/ Quote Link to comment Share on other sites More sharing options...
TomR Posted June 17, 2008 Report Share Posted June 17, 2008 I think the main point is credit cards aren't the liability, the person is. Quote Link to comment Share on other sites More sharing options...
Diz Posted June 17, 2008 Report Share Posted June 17, 2008 I think the main point is credit cards aren't the liability, the person is. True... Quote Link to comment Share on other sites More sharing options...
Mike Deere Posted June 18, 2008 Report Share Posted June 18, 2008 My credit card has been a constant pain in the arse... Just 'cause it's there. It has been a big help in emergencies though. Tough call. Quote Link to comment Share on other sites More sharing options...
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