What's your credit card and why is it best for you?

[Kasz216]

the2real4mafol said:

Kasz216 said:

the2real4mafol said:
The credit free life.

But seriously, i won't get a credit card because i don't think they are worth it. It's so easy to get into debt with that bit of plastic. I would rather use my own money thanks.

Not like it matters now, but i'm from London, England.

Problem with that is... if you don't get a credit card, you don't build up a positive credit hisotry.  Which if you don't have a credit history you may as well have a shitty credit history.

Then your stuck unable to get a house loan at a good rate... if at all.

I have one credit card that i use for bigger purchases, and i pay it off in full at the end of the month.

I don't understand that at all. Why can't they just use my bank account/ debit card history to determine if i can a mortgage/ loan?

Not like it matters, there is no way i could afford to own a house in London anyway. Most people can't, anymore. Damn housing bubbles!  

Because a debit card is just a plastic check.  Checking accounts aren't reported to credit score companies.

Largely because well... they aren't credit.

The money disapears right away so you never build up debt.

 

Banks don't want to see if your responsible enough to not spend yourself into more debt.

They want to see if you are responsible enough to not spend now, when you have to pay off debt later.

 

Think of it this way.  If you have $5 in your pocket.  It's easy to spend 3-4 dollars on food and not go over or in debt.

If you owe someone $5 it's a lot harder to hold on to that money.  A lot more tempting to spend it.

 

I guess living in England you can go without a car... but quite honestly, it's worth building up a credit rating, you never know when you'll find yourself wanting to buy a house, a car, start up a buisness, etc.