I don't have a Credit Card. Am I weird?

scrimshaw on 04/08/2015 - 18:20
Last edited 04/08/2015 - 18:23

Am I the only person in the world over the age of 20 that doesn't have a Credit card?

I still use Debit card for all purchases. I've never bought anything with Credit as I have never applied for a CC with my bank, nor done any research on it. I'm also told that Australia doesn't have a credit rating system like the US, where the credit rating can work with you or against you (i.e a positive rating allows you to borrow money easily, but apparently Australian credit ratings only work negatively)

My HSBC financial adviser spoke to me today and very strongly recommended I get a CC. Not sure if he's being a good salesman or being serious.

Assuming that I'm not a complete retard with money and spend more than I can afford to pay back, is it advantageous to have a CC?

Financial

Comments

  • GaelicAU on 04/08/2015 - 18:23
    +30

    You are totes weird dude. Go hang out at a goth forum or something.

    • scrimshaw on 04/08/2015 - 18:26
      +1

      But goth is so 2006.

      • altomic on 04/08/2015 - 18:35
        +6

        2006 is the new 2015

        • scrimshaw on 04/08/2015 - 18:46
          +15

          if that's true, then why the heck do I not look younger!?

        • altomic on 04/08/2015 - 19:16
          +1

          @scrimshaw: unfortunately time is linear.

        • hoju83 on 05/08/2015 - 09:47
          +4

          @altomic: Time is a flat circle.

        • altomic on 05/08/2015 - 11:09
          +8

          @hoju83: hoju83, you posted that same comment 16,045,543,324 years ago. it's getting boring. ;)

        • No ONE on 05/08/2015 - 16:37

          Like orange is the new black.

        • enforcer on 05/08/2015 - 21:53

          @hoju83:
          This is a lie. Ignore cubic math at your own peril

          http://www.timecube.com/

        • BuyoTheCat on 06/08/2015 - 10:03

          @altomic:

          Time is circular. That is why clocks are round.

        • altomic on 06/08/2015 - 13:58
          +1

          @BuyoTheCat:
          uuhhhh, like when people say "I'll get around to it"

        • [Deactivated] on 06/08/2015 - 14:31

          @Oz Bargain 3: Nah, Black is the new orange. Get with the times you jackaroo

        • BuyoTheCat on 06/08/2015 - 14:37

          @altomic:

          Its actually a quote from red vs blue.

        • altomic on 06/08/2015 - 15:06

          @BuyoTheCat: not Red and Blue?

      • nikey2k27 on 06/08/2015 - 18:35

        No you are not i know many people do not have CC. only get one if you can handle it. Debit card might make your life easier. i know friend who can not have CC they spent to much.

        • [Deactivated] on 01/06/2018 - 13:13

          Is this 1987?

    • rodinthink on 06/08/2015 - 15:22

      conformist

  • rompastompa on 04/08/2015 - 18:31
    +6

    I also only have a debit card. I use my wife's credit card for everything though ;)

    • Guilty Flamez on 05/08/2015 - 19:52
      +4

      I don't have one either I just use my husband's card and pay for it

    • montorola on 06/08/2015 - 11:10
      +3

      How'd you get a wife like that? 99.9999% of the time it's the other way around

      • rompastompa on 06/08/2015 - 11:17

        Ha! It sort of just happened… She was getting FF points, so it would be better to use her card. It then developed to almost everything on her cards. My wage basically goes to mortgage and beer. She wastes all her money on food and bills.

        Most of my OzBargain purchases go through her CC :P

        So, I guess the trick is to find the advantage, and exploit it!

        • [Deactivated] on 07/08/2015 - 13:32

          When you have enough of the latter, bills and beer start to feel like the same thing.

  • ChronoSphinx on 04/08/2015 - 18:39
    +8

    No big deal…if you don't need it then you don't get it. Most of them have annual fees and you don't want to pay the annual fee if you don't use the card.

    Some get the card for perks like Qantas points etc then cancel. I myself only got my first credit card end of 2014 (free annual fee for life) and I'm in my mid 20s. A handy CC to have is the 28 deg as that one also has no annual fees and is handy for travel as it has no currency conversion fees. Application process is also easy.

    • scrimshaw on 04/08/2015 - 18:48
      +2

      28 Deg — That's what I'm looking into as well. Doesn't have a points program, but at least actually discourages you from going on a spending spree.

      • DealzEddy123 on 05/08/2015 - 09:36
        +7

        get the Bankwest Zero Platinum. It's the same as the 28 degrees (no foreign transaction fees), no annual fee but with complimentary insurances

      • kasp on 05/08/2015 - 20:11

        If you make more than 75k you can get the citibank signature card.

        Usually it's free and has a rewards program. Only issue is citibanks web banking is a bit ordinary, plus it has a 15k minimum limit.

        • johnno07 on 06/08/2015 - 08:22
          +4

          citibanks web banking is a bit ordinary

          In my experience it's barely functional.

        • kasp on 07/08/2015 - 05:37

          @johnno07:

          It does the job but it is painful. I export all my data out so it's not that abd for me but you just can't beat how good the rewards system is for a free card.

          Been on it 3 years now and I have scored myself a decent soundbar and I am just about to grab a new camera. All while paying zero interest but I guess if you can't control your spending the 15k limit would be a nightmare.

      • RockyRaccoon on 07/08/2015 - 15:28

        @scrimshaw

        Who needs a credit card - Like who needs WYSIWYG or a mouse Go DOS with function keys!! Hell why even bother with a Debit card - Paypal or Cash!

        🍎

  • 2jzzzz on 04/08/2015 - 18:42
    +6

    I was advised that getting a credit card with a moderate limit is a good thing and helps you get a home loan. It proves you can control spending even with temptation of large amounts available. Now I have a mortgage, I get them for the points sign on bonus.

    • TailsK on 07/08/2015 - 08:08
      +2

      I don't think this is accurate. They look at your bank balance/savings overtime when determining whether or not you can get a home loan, not your credit card statements. At the same time, your credit limit is essentially a liability in the bank's eyes.

    • [Deactivated] on 07/08/2015 - 14:25

      Finally a decent response.

      My advice is shop around for a card that meets your needs. Credit cards are good for establishing credit history and if you travel (hotel/motel security deposits)

      I currently have a Commowealth bank Mastercard which attracts an zero annual fee so long as you make at least $1000 worth of purchases in a year compared to my old $30 annual fee for a ANZ credit card.

      Credit cards can be your friend so long as you get one with a zero annual fee and pay the full amount owed (ignore the minimum crap) every month without fail.

    • mousie on 07/08/2015 - 18:46

      A post paid mobile achieves the same thing. Usually it's a pass / fail score with credit checks, not a scaling system like the US.

  • Cheeper on 04/08/2015 - 18:51
    +2

    The main question is DO YOU have a need for one… or would you benefit from having one?
    It does sound like your HSBC advisor is pushing you to get one .. for his benefit somehow?
    You can get 100% fee free CC's.. Commonwealth Bank has a MC that is.. all you have to do it spend at least $1000 a year on it. Doing that is no problem as you can have some bills direct debited automatically to make the $1k yr.
    There is no interest on purchases and there is a period after the bill is issued where if you pay within that time again there is no fee.
    If you can fit one into your lifestyle and get one for free then go for it if you think you will benefit.
    I find the MC to be very handy for emergencies or impulse bargain buys :-)
    You are not nuts for not having one.. LOL

    • scrimshaw on 04/08/2015 - 18:57
      +1

      Not a big spender and I won't be buying a home soon (not in this overpriced city anyway) and I already have a vehicle.

      The only pluses I see is the accumulation of whatever points / rewards that the bank can offer, and possible other tricks like chargebacks and price protection. Maybe even travel insurance, but none of these seem like groundbreaking offers to me.

      Which is why I hadn't bothered applying for a CC but I sometimes wonder what I'm missing out. Not much I hope.

      • Cheeper on 05/08/2015 - 11:33

        The points game and the free? travel insurance does not interest me, I prefer to get the best available when I travel rather than the cheapest.. I figure that to be the best bargain.
        Regardless… cc's are easy to get so just leave it until you have use for one. We don't have to have it all LOL. Cheers :-)

      • mmd on 06/08/2015 - 01:16
        +1

        You've been missing out on all the amex deals scrim!
        Some cards also offer promotions occassionally

      • Bargainz on 08/08/2015 - 04:26

        I'm like you, only reason I have one is if i need a hire car. Been stung before on having to take out the "insurance" because they cant verify I can pay the excess, quite frankly makes no sense as you can max a credit card out anyways. But they insist on it and I refuse to pay more for nothing, have a no fees ones and it doesnt get used. :)

  • YTW on 04/08/2015 - 19:03
    +2

    We got caught out when we went on holidays and the hotel wanted a credit card imprint as security or an $800 bond. This was 15 years ago, we were young and didn't have $800 just sitting around in our account. Lucky for us they realised we weren't the types to trash the room and accepted a $400 bond when we explained our dilemma.

    After that we got credit cards. Free annual fee for life (thank you Virgin Money) and the most pathetic limit ever that you can't get these days (last time I was in the bank the teller thought she had misread it…hahaha…). They're great to have for purchasing small stuff online and when we check into hotels. Don't really use them otherwise and pay off the balance every month in full.

    • jaybmate on 04/08/2015 - 22:23
      +11

      what is the limit?

      • montorola on 06/08/2015 - 11:14
        +6

        Yeah I wanna laugh too lol

  • rockman117 on 04/08/2015 - 19:36
    +1

    i like to get rewarded for every dollar i spend. i assume you get cash back on paypass/wave transactions (tbh should be minimum requirement for ozbargainer), but for anything over $100 or where merchants don't have contactless payment, CCs that have points are the way to go. usually wait for banks to give bonus points for signing up where the annual fee is waived the first year (then cancel before 12 months) such as this ANZ CC deal

  • CyberMurning on 04/08/2015 - 19:37
    +18

    nothing do to with weird or not, but 2 facts:

    1. you are missing out alot of deals
    2. smart people borrow money but become richer, dumb people borrow money and become poorer.
    • rodinthink on 06/08/2015 - 01:47
      +6

      borrow money to buy SD Card and never use it?

    • Oofy Doofy on 06/08/2015 - 11:49
      +2

      smart people also borrow money but become poorer too, dumb people might borrow money because they have no other choice. Life is like that. I would say most poor people are risk averse.

  • chumlee on 04/08/2015 - 19:51
    +3

    Australia has introduced a comprehensive credit reporting system like whats in the USA and Australians now have a credit score. Having a credit card not a big deal fervour credit file.

  • spychiatrist on 04/08/2015 - 19:53

    Wow, the credit card rewards wasted. Nothing wrong with credit cards as long as you pay the full amount due - which in your case you can because there's money in your debit card.

  • [Deactivated] on 04/08/2015 - 19:56
    +1

    Credit cards are so mainstream.

  • ols108 on 04/08/2015 - 20:19
    +1

    32 years old and got my First CC approved on Sunday.
    I've never had a need for one, always paid cash for everything, cars, holidays, etc. but the last few times on holidays I've felt as though I should have a CC incase of emergencies etc.

    • DealzEddy123 on 05/08/2015 - 09:44

      yeh, I think this is the way to go. If you have enough cash flow to manage your day to day expenses then it's not required.
      Having it for travel emergencies is a good reason to have one.

    • T-man on 05/08/2015 - 19:53
      +1

      my grandparents use cash only for the rest of their life.

  • scotty on 04/08/2015 - 20:30
    +4

    Citibank Signature card deal - no annual fee and pretty good rewards (not as good as some AmEx though). As long as you pay of the balance each month, why not?

    • T-man on 05/08/2015 - 19:56

      Not everyone can apply, unless your income is $75,000 or over.

    • steve-oz on 09/08/2015 - 11:07

      @scotty - thought this deal had expired? I'd be interested if not.

  • djones145 on 04/08/2015 - 21:24
    +2

    do you have a home loan?
    does it have an offset linked to it

    by using credit card with up to 55 days interest free
    you can buy something, not pay for it for up to 55 days
    and have the money saving u interest on ur homeloan

    however with record low interest rates, using paywave and getting 5% discounts is more worth while!

    • Chik5555 on 05/08/2015 - 08:35

      Yep this is what I did and will shortly do again. Plus, points. I have gotten heaps of free stuff with points (over $1000 worth of gift cards, etc)

  • Holysmoke on 04/08/2015 - 22:02

    You need to go here: https://www.ozbargain.com.au/wiki/american_express_referrals

  • TheAviator on 04/08/2015 - 22:13
    +6

    I've got one but only really use it for online purchases and purchases over $100 in store. For everything else, there's my ING Direct debit card with 2% paywave cash back! :)

  • mskeggs on 04/08/2015 - 22:19
    +2

    Also, a credit card offers protection advantages for online purchases. If it is used fraudulently, the issuer is obligated to protect you. With a debit card you have less protection, not least as the money is gone immediately from your account.

  • na8an on 05/08/2015 - 01:20
    +1

    It's gud to have one, esp those once which provide -

    Travel insurance for trips
    points which later u can use for buying stuff (CBA rewards - myer)
    free money transfers for 18months - citi bank
    platinum/gold cards for airline lounges
    not to mention those ozbargain deals which only you get by using those cc

    lastly
    emergency money..

  • boccos on 05/08/2015 - 07:23
    +2

    I think I seriously spend more because I own a credit card. It is really very easy to purchase something when you have a credit card begging to be used in you purse or wallet. Convenient, yes, but waaaaaay too easy. Spending your own money is a lot harder than spending the banks money (in the form of the limit on the Credit card).
    Now that I have one though, it will be near impossible to pry it from my possession.

    • DealzEddy123 on 05/08/2015 - 09:41

      agree. it doesn't feel like real money :P
      just numbers on a screen right?

      but yeh that's the point. they make it as convenient as possible for you to spend money, and also the points schemes subconsciously makes you think you're getting value, when the actual return on points is 1% or less of spend.

      it's good when you can smash your business/company expenses on it and get points though.

  • Chik5555 on 05/08/2015 - 08:39

    I don't have one right now but will shortly apply for one
    I intend to use it as follows/for these reasons (had one before and did this):

    • pay in full before interest free period ends so no interest
    • my cash can sit in an account earning interest for that time
    • I earn points
    • DealzEddy123 on 05/08/2015 - 09:39

      lol interest & points

      • Justtip on 08/08/2015 - 11:18

        Why are you laughing?
        I bought my car on cc, cost me about $250 in fees but I got $600 cash back in to my home loan account via points AND saved about $500 in interest for two months before I paid it off. That's almost $1000 in savings.. Plus there was a bonus that I, regrettably, missed out on where I could have seen $200 or so in extra points.
        Laughable?

  • adamvlad on 05/08/2015 - 08:45
    -2

    I have 2 Debit Cards, but NO CREDIT Card! I can do everything I need to do with a Debit Card.And feel much better for not buying things I cannot pay upfront for.

    • timohill on 06/08/2015 - 09:02
      +8

      You're assuming people with Credit Cards don't have the money upfront. It's basically a debit card with overdraft.

  • backpaqer on 05/08/2015 - 09:32

    Australia is introducing Positive CCR - still in the ramp-up phase, will take some time to completely roll out.
    Without a CC, you are letting a lot of bargains slip through your fingers.
    The basic plan is to ensure that you always pay it off on time. The "real" credit cards will cost you in annual fees and the only way to minimise these is to sign up for a gold card and then as your credit history remains untarnished, the bank will offer you free upgrades to higher level cards at the same price as the gold card. So my diamond cba card is costing me a few hundred pa…I'm easily making $500pa min on rewards points, free insurance on my purchases for 90 days, free extra year warranty over and above standard warrantees, free travel insurance, free concierge services (not that I've ever found them all that useful for finding bargains…this site is so much better!). I've also found that some international sites don't like debit cards to buy things…need credit card…preferably Amex…and most major bank credit cards come with an Amex linked to your normal CC with the offer of bonus points to tempt you to use it more, which you do if they don't charge you extra % over and above the purchase price…so most supermarkets are fair game.

  • DealzEddy123 on 05/08/2015 - 09:38

    no, not weird. it's good.

    and having a credit card doesn't really help you getting a home loan. a good deposit and a "good job", quote joe hockey, helps you get a home loan lol

  • strikerzebra on 05/08/2015 - 09:40
    +4

    Only get a credit card if you are going to pay the full balance before the minimum payment is due, if you can control yourself just get a card with no annual fee and the best rewards program

  • fredblogs on 05/08/2015 - 12:16
    +1

    scrimshaw, I used to be like you. But you can automate the payment from your normal account so that you don't have to remember to pay it. Advantage is the rewards, and that the money is in your account for longer earning (tiny) interest.

  • inherentchoice on 05/08/2015 - 13:13
    +7

    I always just had the one credit card with no annual fee.

    But then I met someone who travels overseas frequently by getting the credit cards with bonus frequent flyer points, and this person would just cancel the card before the annual fee.

    Now I have over 100,000 QFF points just after ~5 months. Only cost me $10 for the CBA fee. I also got FREE return flights with the AMEX Platinum Edge deal.

    Even if you get a boring card with no rewards, you can still take advantage of the interest free period to reap extra dollars by keeping your money in an interest-earning account for longer.

    • ilikeradiohead on 05/08/2015 - 16:24

      This is almost verbatim what I would have written haha, I have just over 100k after a year, haven't paid any interest, haven't paid any fees (although I need to cancel my first one soon).

      • Hikey on 07/08/2015 - 11:49
        +2

        Same here. I usually apply for any FF credit card that does not have an annual fee in the first year. Just cancel after you received the bonus miles. Easy to make 100.000 QFF miles in a short time (that is around $600 in gift cards).

  • bathuu on 05/08/2015 - 14:34
    +1

    Simple, better to have one than nothing. But it is gotta be point saving zero fee card.

  • anonymous01 on 05/08/2015 - 14:47
    +1

    I don't have a credit card and I am in my late 20's. I don't think I will ever have a credit card, I hate the idea/feeling of having to owe someone. Even when I bought a car I saved up for it. The only time I will probably take a loan will be when I plan to buy a house. You are not weird at all.. because that would make me weird too.. and I am not WEIRD! I SAID I AM NOT WEIRD! DAMNIT!! 'Cries' .. f*** I am pretty weird. Get a credit card dude.

    • scrimshaw on 05/08/2015 - 15:45
      +1

      TFW when you don't feel you are a fiscally responsible adult until you own a Platinum grade credit card.

      Hmmm. Perhaps we never grow into adults, we just get older. Feels bad man.

    • Zachary on 05/08/2015 - 15:38
      +4

      You're just being paranoid….I doubt they have the time to spy on us and keep all this information just to use it back on us….

      So what happens when someone knocks you out in a fight or something or you somehow ended getting robbed(from what ever means and reasons), how are you going to get that $500 cash back? This is one reason why I no longer carry this much cash on me, UNLESS I am going to use it up as soon as possible, like for example pay cash to buy a car. I've already lost my fair share of cash when I wasn't looking….

      • Justtip on 08/08/2015 - 11:20

        In all seriousness.. You need to see a shrink

    • ilikeradiohead on 05/08/2015 - 16:25
      +5

      I hear tin foil hats are also shiny.

    • dazweeja on 05/08/2015 - 16:35
      +2

      Tell me - how does it affect me if every aspect of my life is stored somewhere? How is it negatively impacting my life?

      Obviously for you the costs outweigh the benefits. I'm aware of the benefits but you haven't explained the costs.

      Besides, it's simple enough to put a packet sniffer on your phone (if rooted) or your router and disprove your theory that your phones cameras are spying on you…

      • altomic on 05/08/2015 - 16:59

        Skynet.

        • Euphemistic on 06/08/2015 - 13:48

          I named my wifi Skynet. It's only a matter of time now…

    • This Guy on 05/08/2015 - 20:40

      Reward cards are just for upselling.

      Now your cell phone meta data… brb, someone is knocking on my door.

    • Ughhh on 06/08/2015 - 18:51
      +4

      You have made 3 post and 25 comments on ozb as of now. Google and scotty already know everything about you, it's too late!

  • gummibears on 05/08/2015 - 15:26

    No credit card here either.

  • Zachary on 05/08/2015 - 15:41

    Yeah, you're not the only - I don't have one either; only debit cards….

    EDIT: I agree with the others - having a credit card means you are more obliged to spend than save; unless you can control yourself. ☺

    • dazweeja on 05/08/2015 - 16:29
      +3

      But if you can control yourself and pay it off every month, you get purchase protection, complimentary travel insurance, rewards, etc. Like me - I never pay the banks a cent in interest on my card but I get all of the above and 50000 QFF points free (which is worth hundreds of dollars). Some cards have free flights. All gold as far as I'm concerned.

      • Zachary on 05/08/2015 - 16:51
        +2

        Hmm, fair enough - but seeing how I've never owned one; I am not sure if I can control myself…..that and I seem to be below the income threshold level to even apply for my own credit card….

        • dazweeja on 05/08/2015 - 17:23

          I'll admit that when I was in my carefree twenties, the banks did get a bit of interest off me ;)

  • humdogg on 05/08/2015 - 16:54
    +8

    credit cards can be fantastic for smart people and terrible for the clueless.

  • altomic on 05/08/2015 - 17:03
    +1

    I have 2 credit cards. 28degrees and Citibank. Both are for overseas travel . though 28degrees is used for OS internet purchases as well. Both have a zero balance and are loaded up before going overseas. Otherwise I use my everyday debit card for everything else.

  • Yumi on 05/08/2015 - 17:10
    +1

    CCs seem to benefit big spenders the most. If you're fairly modest with spending (+ rarely dine out, travel etc), the benefits are quite minimal.

    There's some convenience with not having to transfer funds to your transaction account, but that's offset somewhat by places imposing (sometimes absurd) CC surcharges and having to check that.
    There's also some benefits from reward points (typically <1% of spend value), and reduced interest if you have a loan, but the 2-5% cashback via the Paywave deals are often better.

    This is, of course, assuming there's no annual fee, and you're responsible with spending.

  • arescarti42 on 05/08/2015 - 18:00
    +10

    If you manage them well, credit cards are great. Benefits include:

    -Zero cost to you if get one with no annual fee and pay off amounts before the interest free period expires
    -Bank is liable for losses if you're the victim of fraud
    -Reward points, free travel insurance, and other benefits depending on card.
    -Use the bank's money to buy things, and keep all your money in a savings account earning interest, rather than a low/no interest transaction account.
    -Instant access to lots of money on the off chance you ever need it.

    That said, if you manage them poorly they can be a total nightmare. Where banks make all of their money on credit cards is from people who don't pay their debts before they start accruing interest, and miss payments and get charged exorbitant late fees.

    If you don't think you have good financial discipline then definitely don't get one, but if you do, then you're missing out on some free benefits.

    • hayne on 05/08/2015 - 18:42

      Good summary, arescarti, in addition to what others have mentioned on 1) 28 degrees or Bankwest Platinum allowing you fee-free exchange rate conversion for international travel, 2) providing a guarantee - rental car agencies in the US don't take debit cards, for instance, and 3) you do build a positive credit history which will come in handy if you want finance or a mortgage later (since the credit rating scheme has changed).

      So OP, you could look at Citibank Signature or Amex Qantas Discovery if you want points. You can access both fee-free for life. If you sign up for the Amex, you can get a sign-on bonus with points - go look at the Ozbargain Wiki link that someone posted above and you get extra points (and help out an Ozbargainer). Citibank charges you if you want to sign up to convert your points to Qantas ($49?) while Amex Qantas Discovery is free I think. Also, the HSBC Platinum is also fee free for life but I don't know if you get Qantas points with that or if you have to pay an annual fee to convert.

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