Credit cards

[Pete]

Well basically I'm sick of not driving (yes I still don't drive) have never really had the money to do it all, well lack of being able to save anyway.
I'm consenplating (sp?) getting a credit card out and just using it for lessons, test etc and a daily runner, max limit would be 1k, and a plan of paying the minimum re-payments per month + the APR.

What's your opinions? And down falls etc?
And before anyone says it I really cannot save a penny, I'm useless, tried giving people the money to hold for me but I end up getting hold of it somehow.

[MK999]

Getting a credit card because you can't control your finances is a recipe for disaster.

[John]

Getting a credit card because you can't control your finances is a recipe for disaster.


This. DON'T do it. Just paying off the minimum payments will take you years to pay it off. If you're that crap with money (and please don't be offended by this) you need to learn some self discipline :)

[Pete]

It's a case of I get board, I don't have masses spare a month, probably about £350, and after recently moving I'm in the process of doing my place properly still, I always make re-payments on time without question, that's no hastle. But money burns a whole in my pocket.

If I was to get a card itd be chopped up once I'm driving tho, so I don't go silly with it

[Spudly]

Dude you dont need a credit card, if you have around £350 spare a month youre way better off than i am, after all my outgoings are paid, i have around £60 left a month, and i still live at home with the rents!

[John]

It's a case of I get board, I don't have masses spare a month, probably about £350, and after recently moving I'm in the process of doing my place properly still, I always make re-payments on time without question, that's no hastle. But money burns a whole in my pocket.

If I was to get a card itd be chopped up once I'm driving tho, so I don't go silly with it

If you have approx £350 a month "spare", open a building society accoent and bank say £175. Then budget the other £175. After 6 months you'll have the money to do it outright. You'll have to give up some of the things you spend the £350 on though.

[Pete]

I spend about £7 if not more a day on cigarettes, which is a habit I need to kick,
And I spend on junk food at work aswell due to working in a shop. That's were the majority of it goes.

As said tho, if me doing a card and paying it all back on time etc, would it not benefit me in 2 ways as in I get a better credit rating and i could be driving ASAP?

[Bubba]

If you have approx £350 a month "spare", open a building society accoent and bank say £175. Then budget the other £175. After 6 months you'll have the money to do it outright. You'll have to give up some of the things you spend the £350 on though.

THIS. i couldnt save for ****...when i found out i need to get my own place i managed to save £1200 in a matter of about 8 months. and for me that is gobsmacking lol (even though i spent half of it on a car, i made sure i had made it back on my other car first)

[Spudly]

Quit smoking mate theres a massive start, i did it going on to three years back now and ive never looked back, i can understand you wanting to get one to help with a bad credit rating as i have just done this and im making good headway with it as theyve nearly doubled the original amount i had on it, but if youre only doing it to help out with finances then i suggest NO, just save up for a few months and you will be better off anyways!

[John]

Yes, but could you honestly, hand on heart say you will make the repayments? (not just the minimum payment) I have a credit card, but when i get the bill i pay it off in full. I think you'd be better with a loan. :)

[MK999]

Spending £7 a day on cigs, of your £350 spare a month, you're inhaling £210+ of it.

[John]

you do know that a credit rating doesn't just take into account repaying a credit card Pete?

[bazil]

I'd be surprised if you got a 1k limit on your first card, TBH BELT UP, stop smoking save money and grow up,

Some of us have a 115k mortgage and other bills too,

I know it's harsh words but they are NOT credit cards they are DEBT CARDS don't get on the slippery slope.

[Pete]

In my current financial situation now John, I could guarantee I would make the payments, I say minimum as that's just to cover my own back just incase I need to pay for anything unexpected, but I would pay what ever I can spare. Not just the minimum.
Ive not looked into a loan at the moment, as it confuses me a little "/



But surely for 3 reasons alone it's worth the little bit of hassle?
1. Better credit rating
2. Driving
3. More freedom and a better career as most jobs require a lisence now?

[steviegsi]

Could you not just spend your £350 spare a month on lessons on payday? I'm sure you'd get a decent rate for block booking them anyway

[christurboo]

Could you not just spend your £350 spare a month on lessons on payday? I'm sure you'd get a decent rate for block booking them anyway

just what i was thinking just spend £100-150 on payday on lessons worry about insurance when it comes to it thats what i did

[Southie]

Avoid avoid avoid credit cards IMO, especially if you cr@p with your money.

If your spending that much a day on smoking you must be mad, buy rolling backie if you need to smoke and you'll 1/4 your spending, yes I smoke btw.

How much are driving lessons these days anyway? Surely you could pass for £350, no?

[joff-turbo-nova]

If you are dead set on lending money to do this then get a Personal Loan.

This has a number of benefits over a credit card :-


Lower APR than a Credit Card
Structured payments that you HAVE to make
Specific term that you will have to stick to and agree at commencement


Making minimum payments on a credit card with an APR of around 18% will take around 16 years to repay and cost you about 4 times the original amount you lend not a good option!

Kick the fags into touch, take a packed lunch to work and limit how much you spend a week. Eg Pull out £40 each week in cash and then leave your cash card at home, therefore you cannot "waste" money pulling out cash just because your wallet is empty. Once your £40 is gone, then tough.

Joff

[Jack]

they are NOT credit cards they are DEBT CARDS
Amen. If only they called them that, people might think twice about using them. The only credit card I have is a works one given to me by Boeing and even that I don't like using. You're basically spending money you don't have.

I've been caught in the debt trap before, spent pretty much 10 years paying off various loans etc. Its so much better once you knuckle down and clear it, now I'm sitting on a growing pile of cash which is earning me (a crap rate of lol) interest rather than costing me money each month. The ability to stick that monthly payment into a savings account and see the money sitting there each month is better than just seeing a constant -£ figure on your balance sheet!

And seriously don't worry about your credit rating. The fact you have a mortgage/rent payments going out (I assume, as you say you have your own place?) then that counts good on your record. If you're that worried, wait til you can afford something then buy it on a 0% card and pay it off before the 0% runs out.

Don't get me wrong, credit has its uses; but generally if you can't afford something outright, or have a legit reason to need it now (I'm talking about stuff like the roof just fell off your house, emeergencies like that lol), then its best avoided.

[Lee H]

Never had a credit card and probably never will. If you can't afford something without getting credit surely you shouldn't have it? (obviously a house is different before anyone picks up on that)

[Tanya.]

Could you not just spend your £350 spare a month on lessons on payday? I'm sure you'd get a decent rate for block booking them anyway


I agree with this. Book them on payday and then you won't have the chance to spend the money. I was also terrible with money (still am sometimes) but you need to prioritise. It's only for a little while until you've passed etc. Then once you've got the job you want, you can spend it again on what you like. Although by then it might of helped you a bit with pointless spending.

As other people have said, curb the smoking too! That takes a lot of your money.

[Pete]

Thanks for th reply guys, hugely appreciated.

Well to cut a long story short, My Grandad is willing to lend me 1.2k and I pay it back as and when. No intrest etc,
Just have to wait for 3 weeks till his money comes through from selling his old house.

[Andy]

Spending £7 a day on cigs, of your £350 spare a month, you're inhaling £210+ of it.
Agreed,bacca ftw

[Mike]

Just dont mate.

[mk1nova_rich]

Don't do credit cards.

Its already been mentioned but I was also going to suggest a personal loan if you have to borrow money. BUT I took out a loan for £1500 over 12 months which works out at £140/month repayment, combined with the £380 car insurance deposit and £140/month repayments for that it nearly bankrupted me in the first few weeks as everything came at once. I ended up borrowing money off friends to pay bank etc so it doesnt take much at all to get caught in a downward spiral if your financial control is sh1t like mine!!

About two months ago I had the opportunity to take on a temporary second job which has really boosted things, as I have gone from being in debt to having plenty of money in the bank and feel safe in the knowledge that there is already enough to make the next few payments if anything should happen! I know it may not be ideal and is very hard work (I'm currently doing between 65-80 hours a week) but is there no option of doing this for a while rather than making a big financial commitment such as a credit card or loan. In the last 3 weeks I have saved nearly £800. Its just a shame this didn't come about before I made the decision to take out a loan, but now I'm in control its not too bad really.

I know there are plenty of folk on here who have bigger financial commitments so they will know more, but I hope this advice is of some use :thumb:

[Pete]

Well things got better yesturday, I got a tax re-inbursement of just under 1k, £972 to be precise.
So really happy with that, so no need for a credit card or borrowing money off my grandad.
Also payday in a week, so I'll use my £350 spare towards a cheap car.

Any opinions on a vectra estate? And also taking a crash course?

[Edd]

Hope you didn't reply to the scam email pretending to be H+R revenue ?? I just had one from the scamming coonts

I've been there with loans/cards, I really wouldn't bother getting in to debt if you can help it

I nearly went bankrupt for £13k personal debt, still have a year of paying it off, it can quickly get out of control trust me

[Ben]

for the first time in my adult life i am now debt free, it took me 12/13 years to get here. As said steer clear of credit cards they are a slippery hole.

[brainsnova]

I've never had or used a credit card the way I look at it is if I really want something then I save up and pay in full. If you can't save then that's what you need to work on.

[Pete]

Yeah I decided not to go with the card, and was going to borrow off family,
But no i got q cheque come through the post, and when and put it into my account this morning.

[Alex J]

i started of with a £250 mountain bike on tick, soon went crazy with cards, (6 in totallol) , personal loans , loans, you name it, i had it, that was when i was 21, and went bankrupt at 26, for £30k. not a good look:roll: