New Credit Card

I still have 1 credit card, but I'm actually in the green by 2 pounds on it! I keep it for emergencies, but don't use it.

I bought my last bike on a 0% credit card over 12 months and paid it off, dividing the cost by 12 and religiously making the payments, so it cost me nothing to borrow. I do think that credits cards can become a slippery slope though - At one point I had 4 card with ~8000 pounds limit on each. That is a heck of a lot of money I could borrow. I didn't owe that much mind - I was just hopping from 0% card to 0% card and never got round to canceling the old ones.

Personally it's choice and only you know what you are like with money as to whether it is worthwhile or not. I do think though that we live in a 'want it now' society where people aren't willing to wait and save for the goods they buy and credit cards companies prey on this.

[Viney]

Originally Posted by Blue_SV650S

Credit cards are only evil if you use them to spend money you don't have (or wont have come settle up time) ... if you use them to spend money you have; but have a belated payback on it ... that money is still in your pocket for a few weeks and can be 'working' for you elsewhere

Basically, by 'staggering' your cash/payments like this you can effectively be making money ... {quick calculation} - I 'make' enough money off staggering money on credit card to tax and partly insure my bike every year! Its not masses, granted, but its still money for nothing!! - I could use my debit card, but using the CREDIT card is simply convenient and 'safe', I'd use it anyway, but to make a bit of money off it is a real bonus!



Still got it, this one I got simply so I can segregate the spend into distinct categories easier!

Again, all nice in theory.

Originally Posted by lukemillar

I do think though that we live in a 'want it now' society where people aren't willing to wait and save for the goods they buy and credit cards companies prey on this.

Indeed, if you are bad with money and/or have ideas above your financial station (or to my mind a fecking idiot) you can get yourself in all sorts of financial trouble ...

For most people there is no good reason for it ... the sums are pretty easy ... so its just stupidity ... HOWEVER it's not just morons that get in trouble ... I had a colleague who's wife became long-term ill and couldn't work, they had a young daughter at the time too so he had to care for the kid and couldn't work either ... he used the credit card/s to bridge the financial gap ... 10 years later and he was still struggling to pay them off!! (he does have it under control now, its just a slow process).

Ok, so he is financially crippled for many years after, but at least the card/s made it possible to 'easilly' survive over that torrid period ... so the cards were actually a good thing!!

Originally Posted by Viney

Again, all nice in theory.

Its not just a theory ... I have actively been doing this for years!!

Its not the credit cards that are evil, its the users!! ... its a bit like guns ... "guns don't kill people - people do" ... but yes, with all that 'power' in your hands, its a dangerous combination for a moron or a madman!!

However, if used responsibly, BOTH can be great tools!

Just set it up to be paid off in full after 56 days and don't spend more money than you'll have in 56 days time. I use my card this way and it essentially means I'm not of out pocket whilst waiting for expenses to clear from work. It also provides you with a lot more protection than a debit card when making big purchases. It's when people start using it as an alternative to a loan, or adopt a "kid in a toy shop" attitude and forget they have to pay for it later (and then some) that it all ends in tears.

[G]

I have minee for making over the phone/online payments.

Once I have recieved an item I pay the card off over the phone, whether its 3 days or 56 days later.

I never spend on it if I havn't got the money sat elsewhere in a current account.

Never understood the people who live off credit cards.......come pay day they pay most of it off, but are then left with no money again so have to use the credit card.....very dangerous game.

[Viney]

Originally Posted by Blue_SV650S

Indeed, if you are bad with money and/or have ideas above your financial station (or to my mind a fecking idiot) you can get yourself in all sorts of financial trouble ...

For most people there is no good reason for it ... the sums are pretty easy ... so its just stupidity ... HOWEVER it's not just morons that get in trouble ... I had a colleague who's wife became long-term ill and couldn't work, they had a young daughter at the time too so he had to care for the kid and couldn't work either ... he used the credit card/s to bridge the financial gap ... 10 years later and he was still struggling to pay them off!! (he does have it under control now, its just a slow process).

Ok, so he is financially crippled for many years after, but at least the card/s made it possible to 'easilly' survive over that torrid period ... so the cards were actually a good thing!!



Its not just a theory ... I have actively been doing this for years!!

Its not the credit cards that are evil, its the users!! ... its a bit like guns ... "guns don't kill people - people do" ... but yes, with all that 'power' in your hands, its a dangerous combination for a moron or a madman!!

However, if used responsibly, BOTH can be great tools!

I know what you are saying, but i then dont see the point of using a credit card at all. If you are in such a rosy financial situation then just use cash. For the ammount you 'make' its really not worth it imho.

Originally Posted by Blue_SV650S

I got a new credit card today ... a Nationwide 'Gold' Visa card ... it looks really nice ...

This might not be exciting to many, but its only the 2nd ever credit card that I have had (that isn't simply a replacement)!! ... so its cool to/for me!!

What shall I go buy to test it out!!?!?

Originally Posted by Viney

I know what you are saying, but i then dont see the point of using a credit card at all. If you are in such a rosy financial situation then just use cash. For the ammount you 'make' its really not worth it imho.

My point is, I'd use it anyway, coz as Ceri JC and I have alluded, its 'safer' than cash or debit card and lest face it, more convenient!! If I make a few quid to boot its just a bonus!! ... its hard to calculate exactly, but I would guess I am making in the order of ~£100/year for doing absolutely nothing, well actually making my life easier/safer ...

So lets put this another way .... you telling me that if I was to simply give you ~£100/year or ~£10/month in your greasy palm, no questions asked for doing absolutely feck all you wouldn't take it?!!?

Its no hardship to use the credit card and as long as you don't have ideas above your station/can budget correctly, they really are fantastic ...

Seems a few others that have posted on here agree too that credit cards themselves are not the enemy!

The statement "guns don't kill people - people do" says it all really ...