You've got your little dog, she's happy, holiday booked, nice little car, flat and finally feel like you're adulting! One question that we always seem to get asked, is whether someone should get a Credit Card or not.
So we're going to take a different approach to answer this question and decide whether getting a credit card makes sense for you.
I've Got a Dog. I'm Responsible. Should I Get a Credit Card Table of Contents
Should I Get a Credit Card?
It really depends on 4 things:
- How controlled you are?
- How much you are earning?
- How stable your salary is?
- What you are getting a credit card for?
You really need to decide if you can pay off your credit card balance in full every single month. This is how everyone should be using their credit card, as it means you don't have to pay interest on the money you have spent that month!
If you pay off the balance in full every month you don’t have to pay any interest on what you spend.
If you don’t pay off your balance in full, you end up paying all this interest that just seems to get bigger and bigger every month, until you need a second credit card, loan and end up with on debt consolidation plan.
This is how people end up in debt with a bailiff called Steve, sorry "Mr. Jones", knocking on their door at 7am in the morning. No one’s got time for that!
If you’re controlled and earn enough to pay off the full balance every month, getting a credit card can be a pretty good idea.
There are some pretty good benefits to using a credit card:
- Additional protection on your purchases – some credit cards offer extended warranties on things you buy and allow you to return “non-returnable” items. Most credit cards offer up to £30,000 of refund protection.
- Rewards & Cashback – you can save a lot of money from the cashback and rewards that some credit cards offer.
- Improves your credit rating – you can build up your credit rating by paying off your credit card on time. The funny thing is, if you have a good credit rating you actually get better interest rates. So you can borrow money really cheaply!
