So I’m going to take a different approach to answer this question. I think it 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?
Essentially you need to decide if you can pay off the full balance every single month. This is how you should be using your credit card!
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.
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!