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

  • Weezle on 05/08/2015 - 18:41
    +1

    Not weird at all. I don't have a credit card yet and I'm 21.
    Absolutely no use for one at this stage.

  • Godric on 05/08/2015 - 18:51

    I think if you get it and pay it off regularly it helps you build a positive credit rating, at least that's what i think lol

  • Lancerx on 05/08/2015 - 20:35
    -1

    you're not weird, just not smart enough to utilise the benefit of cc..

    • driew on 06/08/2015 - 21:44
      +2

      Not a nice comment. The OP is probably just unaware of the benefits of having a CC; I don't begrudge others for their choice.

      If you know you're going to overspend, then I think it's smart not to have a credit card.

      I got into the habit of saving before I got my first credit card which wasn't until my early twenties.

  • shortgum on 05/08/2015 - 21:50

    Missing out the AMEX deals! Best cardsss to have in my life!

  • Aneurism on 05/08/2015 - 21:58
    +2

    I have a credit card, but treat it like a debit card in regards to purchasing only things if I have the equivalent in cash. I pay the card off in full at the end of the month, and rarely have to pay any interest.

    It makes things convenient and easy (because I trust myself with spending and moderate my spending behaviours).

  • Aust on 05/08/2015 - 23:33

    Only have a debit card, which means as part of the great unwashed I have to put out more cash sometimes eg, Avis hire car insisted on full payment of excess up front as only I only have said debit card and not a credit card, oh well.

  • McFly on 06/08/2015 - 01:10
    -1

    Yes, you're weird.
    Getting a CC probably won't change that. :p

  • geoffellis on 06/08/2015 - 05:36
    +1

    Personally, I would advise against getting a credit card.

    It can very easily lead to spending above your means. I knew this and never planned to have any credit card debt. Intended to pay off my amount owed every month. Yet within about 6-7 years of getting my first card, I had 3 and was almost 12k in debt and struggling to pay it off (This was in north america, and I was only making 25k a year)

    Since moving to Australia, as I am not a citizen or permanent resident, I wouldn't even be given a credit card due to the high risk. it has forced me to live within my means, and plan for worst case scenarios, keep a savings account, etc, and I have more money in my account than ever before.

    Australia also makes the need for a credit card obsolete, as far as I am concerned. as you have debit/credit cards here. You can make purchases with your debit/credit card easily, online, which was my initial reason for getting one back in 2004. They just don't have them back home. You need to get a specific credit card.

    but ya, in my experience, even the best of intentions led to disaster.

  • johnno07 on 06/08/2015 - 08:24
    +4

    If you have a good sense of self control - get a credit card.
    If you don't have a good sense of self-control - don't get a credit card.

    If you can get one without fees, and you pay it off on time, you are actually making money (interest on your money you would have otherwise spent) by having one.

    • rawm on 06/08/2015 - 17:12

      I've never had a credit card. Im 31. I have a nice home, wife, 2 kids, 2 cars and never had a need for one. If you don't have the money, it's not yours to spend (apart from a mortgage and maybe car). That's been my motto since I was 18. I dont believe in this making money philosophy. Having credit breeds a relaxed sense of value for everything.

      • johnno07 on 06/08/2015 - 18:17
        +2

        Im 31. I have a nice home, wife, 2 kids, 2 cars
        …
        I dont believe in this making money philosophy

        Obviously you believe in making money in some form! I would have thought an Ozbargainer/family-person would be looking for a way to save any extra they could. Using credit is not inherently bad. Like I said above, it depends greatly on your sense self control. You can only have a "relaxed sense of value" if you let it happen.

        I'd personally rather use the bank's money for 50ish days, earn a bit of extra interest, then pay them back.

        • rawm on 06/08/2015 - 19:15
          +1

          Agree to disagree; I know what you're trying to say - getting one up on the banks is good in principle, but I have some principles of my own - they mightn't be right for all but one of them is NO CREDIT - Money spent which isn't yours is fraught with danger (and I own shares too btw, so am one for risk). It's served me well over the years.

        • driew on 06/08/2015 - 21:47
          +2

          @rawm: Unless you purchased your home outright, you would've needed a home loan which is a form of credit.

        • rawm on 07/08/2015 - 08:14

          @driew:Maybe if you read my above comment which stated '…it's not yours to spend (apart from a mortgage and maybe car).' you would know I mentioned this. Maybe driew, one of your principles needs to be read, then reply.

        • driew on 07/08/2015 - 14:00
          -1

          @rawm: Didn't see your first comment. Didn't realise I had to read every post from a particular user before I was entitled to reply to one of them.

        • rawm on 07/08/2015 - 14:58
          +1

          You learn something new every day.

        • wildstone on 07/08/2015 - 16:12

          @rawm:

          With 2 kids, 2 cars a wife and a nice home, I would imagine your disposable expense be around $30k to $40k mark per year, may be even more. Now, imagine if you have paid this $30-$40 grand using a credit card and earn reward points… That is at least 30,000 points which is $200-$300 of value redeemable.

          So yeah it comes down to self control as mentioned by previous poster. You could have made a little extra cash by just paying things with credit cards.

        • rawm on 07/08/2015 - 17:02

          @wildstone: I completely understand what you're saying wildstone, but for me it's more than 'self control'. I have decent self control in general, but don't like the philosophy of using cash that's inherently from a source other than your own income/winnings/dividends/capital growth. For me, credit cards can give you points and might save you money, but they're not part of my 'rule book'.

        • MountFranklin on 08/08/2015 - 11:07

          @rawm: I see it as I'm going to use my savings anyway to pay for everything so why not use my credit card and get points to redeem cash/items back! I just set up my savings account to pay the credit balance at the end of every month thus avoiding any interest ever! If you have self control then why not get something back from your everyday spending. Your rule book is keeping you in the past. Think of it as just shifting your money around to get more value from it - in the end it's another way to save - you are still using your savings to pay for the items but not immediately.
          I also do a yearly budget on my essential expenditure so I know what is my approximate limit

        • rawm on 08/08/2015 - 11:31

          @MountFranklin: haha, maybe my rule book is a little dated, but hey it's worked for me this long so I'll keep it going. Different strokes for different folks. All this money shifting; meh. Self control comes from controlling key fundamentals; one of mine is no credit card!

        • illumination on 08/08/2015 - 13:23

          @rawm: I agree with MountFranklin. That was my first "step" into Credit Cards. It was the realisation that, well I have the money anyway, and I am buying this thing anyway, so I might as well keep that money in my savings account to earn a tiny bit more in interest.

          I take it from your "rulebook" that you are potentially fearful you may not be able to control yourself if you get a credit card, hence the reason for the rule. Rules are rules for a reason afterall, and there must be some logic behind why you would set such a rule. I also feel it could possibly be a lack of familiarity with how credit cards work + bad stories/experiences from a close friend or relative that may have put you off?

          Another way you could do it, although this would take too much effort for my liking, is every time you pay for something with a credit card, just pay it off immediately via Bpay on your phone. That way you still "feel" the money leaving your bank account for something you've bought, but you still get the benefit of having received the points on your credit card.

        • rawm on 08/08/2015 - 14:17

          @illumination: Well said. Yep, rules are made for a reason. While I don't completely trust my self with a lot of things (honestly, who can?) Logically for me though, it's the foray into accepting 'credit' from outside sources that to me is incompatible with how I view finances.

          Everyone is different, and while I'd say im quite knowledgeable in all matters finance/financial literacy I have many friends/family that are constantly not using their money properly IMO (aka Hardly Normal 48mths interest free, credit cards, novated leasing on cars…the list goes on). I just completely disagree with these decisions outright.

          Thanks for all your suggestions, but I'll now happily ride into the sunset without any form of someone else's money except when it get's dark and I head home to my dwelling paid for by credit!

        • illumination on 08/08/2015 - 14:19

          @rawm: I will accept that too..!

          ..because (from a selfish point of view) one less savvy credit card user means the banks will keep trying to get some of those elusive customers like you to join up, whilst offering 50k bonus points and first year annual fee waived which people like me can take advantage of. All whilst still trying to tempt you!!

          My suggestion at the end of my last reply is probably a bit too much effort. Personally I wouldn't bother, but that's why I don't do it that way. Just tried to think of something that may have tempted you to cave in… didn't work!

  • c64 on 06/08/2015 - 08:26

    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.

    i've got some old hsbc accounts that i never use and unfortunately hsbc are always sending me pre-filled credit card applications every month so i'm guessing it is marketing. it prompted me to ring up and get them to stop sending me junk mail. the csr had difficulty even with that …

  • Sex on 06/08/2015 - 08:48

    Almost in my mid 20s and don't have a credit card either. Thinking of getting one to build my credit history though.

  • jellykingdom on 06/08/2015 - 09:15

    I have a whole heap of them for various points and AMEX deals but to be honest, do you NEED one? Probably not.

    There's lots of advantages, like you can make a large purchase when you don't have the cash upfront (like a new fridge or something), and often hotels wont accept debit cards for a deposit

    But i suppose noone really needs one. I have friends (nearly 30) who don't believe in them

  • Tarnos on 06/08/2015 - 09:43

    On the passive side, the money you would use on the credit card gives you interest free days to earn money in the bank savings. Points are great but it takes a long time of usage to have decent tangible value.

    On the more active side, your credit card is the easiest way you could effectively run a small business without big capital. You buy stock on credit then you sell it and make a profit.

    If you are looking to buy a house someday, you are probably going to have to get used to the idea of borrowing money and building discipline.

  • BuyoTheCat on 06/08/2015 - 10:04

    Someone who does credit checks for bank advise that to have positive credit history, get a card but do not use it.

    • angelkulit025 on 06/08/2015 - 10:36

      but getting a card involves annual fee from that credit card even though you don't use it.

      • BuyoTheCat on 06/08/2015 - 10:44
        +2

        There are cards with no annual fee

        • angelkulit025 on 06/08/2015 - 10:46

          sorry, didn't know about that, that only shows my insufficient knowledge regarding CC's.. =)

        • BuyoTheCat on 06/08/2015 - 10:50
          +1

          @angelkulit025:

          We learn something new everyday.

          The Citibank Platinium reward card which many ozbargainers have is quite a good card. as long as you pay it off each month as the interest rate is not the lowest.

  • Jules_d1 on 06/08/2015 - 10:26
    -2

    I dont have one nor do I want one. They can only lead to trouble.

    For everyone who has them for the points rewards- I dont know one wealthy person who attributes their wealth to rewards or frequent flyer points. Its all a ploy to get extra fees/interest out of you (even if you plan to pay of all debt each month, you forget at times.

    Credit card companies would offer rewards points if it wasnt a good deal for them.

    • spiff on 06/08/2015 - 12:03

      Nobody claims that their points make them wealthy. It's about getting a little extra out of the dollars you would already spend. All the downside risk you're talking about comes down to whether you are financially responsible or not. Being forgetful (irresponsible) isn't a reason not to recommend a credit card.

      In the last 18 months I utilised 3 credit card offers with ANZ, NAB and Westpac to get 150k QFF points. The spending requirements were more than reasonable, I didn't pay any interest, and now all 3 cards have been cancelled. At the very least, with 150k QFF points I can claim around $1,000 worth of Myer gift cards which are essentially "free".

  • angelkulit025 on 06/08/2015 - 10:34

    Everyone in my family doesn't have one. I also told mum and dad just to use a debit card instead of a credit card.
    Coming from an asian country who migrated to Australia, getting a credit card here is absolutely insane considering the over the top interest rate of CC's here in AUS.

    • driew on 06/08/2015 - 15:12

      getting a credit card here is absolutely insane considering the over the top interest rate of CC's here in AUS.

      Credit cards generally have an interest free period - 45 days or 55 days if you're lucky. The interest rate is moot if you're disciplined enough to pay the closing balance each month so you don't pay interest. At the same time, you may be accruing points for free flights or gift cards.

      There's more benefits to using a credit card and I'm not going to list them here. As with anything, research it and you'll find that it's not as black and white as you paint it.

    • Kenb0 on 06/08/2015 - 15:54
      +4

      what kind of asian family are you? Every good penny-pinching ozbargaining asian knows that you always pay off the full balance at the end of the month, thereby incurring no interest charges at all. I know, because I am one, and so are a lot of my asian friends and family :) I personally could care less if the interest rate on my credit cards are 50% or higher, I'm not using the cards as a loan facility, I'm using them as a cash substitute temporarily.

    • Marcsie on 07/08/2015 - 19:07
      -1

      Most Asian people are smart, now I realise that some are not :)

  • Shwayne on 06/08/2015 - 11:12
    +4

    I would only recommend them to responsible people, and I would highly recommend it to them.

  • pg88 on 06/08/2015 - 11:17

    I used to be in the same boat, but being paid monthly in my job really ties down cash flow. But with a CC now I can manage bills an expenses, and then just clear it off with my monthly pay cheque. I have the cash but would rather the money sit in my savings generating whatever interest they can rather than drawing out of that to top it up later when I get paid.

    I disagree that it will make you spend more. I haven't spent more than I usually would now that I have my card. I had a CC 3 years before I got my current job and all it did was just sit in my wallet in case I was stuck in an emergency.

    Imo if I was you, I'd just get one with no fees and continue living life as per usual. If you've had no need for a CC and start using it, I doubt you'll have much trouble managing it

  • [Deactivated] on 06/08/2015 - 11:35
    +1

    Credit card with interest free period is good for parking your cash in high interest savings account, or your offset home loan account, before paying your CC debit in full on the due date.

  • Talonparty on 06/08/2015 - 11:36

    No I'm the same, I'm in my early thirties and have never had a credit card, but really the reason is I've been so poor most of my life that I've never thought I'd qualify and of course I don't really have the funds to spend up too big.

    I'm trying to finish my doctorate and I feel like I've been studying for the majority of my life. As a result I've only had fleeting moments of anything close to wealth. I never felt like I could afford one because I haven't had regular income beyond a few months except for my PhD scholarship and a short career in retail when I was younger but they were both low pay and are finished :(

    You've mad me sad now sniff

    • [Deactivated] on 06/08/2015 - 11:39

      I was issued a CC based on Austudy allowance 10 years ago. Based on why I see in shops, it looks like they hand them to teenagers like lollies these days.

      • Talonparty on 06/08/2015 - 11:41

        That's crazy. I've never been rejected for one because I've never applied, but I could barely live when I had youth allowance and a casual job as an undergrad. I never felt I had a use for a credit card because I had so little disposable cash in the first place.

        • [Deactivated] on 06/08/2015 - 11:55

          My opinion is that they want to give you one, because they make money from you.
          I wanted one because it was cheaper to pay for bills then go to the post office and pay using money order(obsolete), buy cheaper products in online stores, and saving time travelling to stores to pay cash/debit.

        • Talonparty on 06/08/2015 - 12:01

          @ssa02: Yeah I know what you mean about them trying to make money from you.

          I have used bpay for my bills since eternity though, and I got a visa stamped debit card (from home building society) back in 2001 as soon as I turned 18 so that I could pay for my ultima online subscription :P

          it was great because you could use it for online purchases and I even used it for security at hotels and restaurants before they became more common and people stopped allowing it.

  • scratchback on 06/08/2015 - 12:25

    A bit weird coz it does not mean you have to change your spending style with credit card. Credit card offers a lot extra benefit, reward points, insurance…

  • ashikk on 06/08/2015 - 13:21
    +1

    I have 4 CCs. 1 for every day purchase and pay in full when statement arrives. 3 of them are all balance transferred to my home loan offset a/c. Saving a lot of money on HL interest. when the time comes to pay them back transfer the money from HL to CC or ask the bank to extend the BT for another promo period they currently have. If they don't then close that and apply another one. Basically rolling the money. I have successfully extended to their latest offers.
    If you don't have HL then put that money in high interest saving a/c to earn money ( and pay extra tax!) so that you can buy lots of SD cards/SSD or eneloop that you don't need.

  • maximum on 06/08/2015 - 13:39
    +2

    I think credit cards are great for budgeting. I never carry much cash. I have to think if I have money for small things so never buy coffee or other small impulse purchases etc. Also if you put everything on card you know exactly where all your money is going. If you use cash it's easy to spend $50 as soon as it is "broken" they tend to disappear.
    You have to know if you are careful enough with your money that you are going to be able to use a credit card without ever paying interest. (I have had a card for 20 years and never paid a fee or interest)

    • HoneyComb on 06/08/2015 - 17:40

      I am the opposite. I spend less with cash and find it easier to budget with cash.

      I have a few $10 notes in my wallet that's been sitting there for 2 weeks because everytime I look at it. I get reminded to not spend it. A card doesn't feel like it's money to me.

      example, Yesterday. I went to get food and it was exactly $10 and I had the $10 note in my wallet but I paid with debit card.

      It feels like it's virtual not real currency so I spend more with my debit card than i do with cash. Plenty of times, I withdraw cash but never end up using it cos I look at the money and don't want to spend it. lol

      • driew on 06/08/2015 - 21:52

        It feels like it's virtual not real currency so I spend more with my debit card than i do with cash

        That's all in your mind. I feel like I spend exactly the same amount whether I'm using a credit/debit card or with cash; the difference being that using a card avoids the hassle of dealing with change.

  • imahapyboy on 06/08/2015 - 13:57

    yes you are

  • netsurfer on 06/08/2015 - 14:24

    Some people don't like credit cards. One of my friends was quite concerned when I paid for movie tickets using a credit card instead of cash. She forgot that I already used up substantial amount of cash paying for an expensive lunch. She thought I have a truck load of credit card debt.

    For a regular member of OZB, it is a bit weird though. Isn't the OZB spirit collect every reward point and save every cent?

    Jokes aside, it is good not to have a credit card. OZB is full of enticing deals.

  • ProjectZero on 06/08/2015 - 14:48

    Honestly, no one needs a CC… do yourself a favour and stay off the credit radar for as long as you can. If what you're doing now is working for you don't change it… getting a CC doesn't help you in anyway, if anything it hurts you (in terms of credit rating).

    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.

    No financial adviser should recommend a CC, he was only trying to sell. My mate works at NAB and sales CC to people when he can, but even he doesn't want a CC.

  • driew on 06/08/2015 - 15:01
    +1

    You should only get a credit card if you're disciplined financially, ie you're able to pay off the closing balance each and every month so that you don't pay any interest.

    Personally I do the following:
    1. Anything under a hundred dollars, I use my ME Bank card to get 5% back on each purchase
    2. Once the ME Bank promotion ends, I'll use my ING for 2% cash back
    3. Anything over a hundred dollars, I use my credit card so I can get points (assuming I'm unable to split the transaction into multiple pay pass transactions)

    A credit card can be beneficial or detrimental to you; it all depends on how you use it. I've never paid a cent in interest in my life and can't understand why anyone would.

  • rav_stk on 06/08/2015 - 15:52

    you don't have a credit card but have a financial adviser. I don't' think you are wired .

  • [Deactivated] on 06/08/2015 - 16:28

    Get a debit master card. No need to get a credit card unless you want a positive credit history or want points and perks.

  • umoddbro on 06/08/2015 - 16:42

    Why get one if you don't need it.

    • [Deactivated] on 06/08/2015 - 17:38

      Just spent $200 on a microphone that I will use for games, skype and perhaps some basic video tutorials. I buy shit I don't need all the time.
      Why have we evolved into materialistic beings who think we need to keep spending to be happy? HELP ME! I HAVE A PROBLEM!

  • Neoika on 06/08/2015 - 17:34

    If your debit card is ING Direct,Orange Everyday Account,then you are using the best card.

  • sprucemoose on 06/08/2015 - 19:30

    You're not weird but there is nothing wrong with having one IF you are good with money.

    I have had 28 Degrees card since I was 21 (24 now) and have never paid a cent in interest. I have also benefited from not getting charged FX rates on overseas purchases.

  • porsche26c on 06/08/2015 - 20:38
    +1

    ive been using a credit card since i was 16. (30 now). i use it more now as its 55 days interest free - thus for 55 days my money sits in my offset account or savings account (in your case) to gain or offset interest. spend what you normally spend (no more) and you will benefit from it esp. if points are acquired.

  • wog_ta on 06/08/2015 - 22:24

    Well if your going to buy a house the mortgage package will usually include a free credit card. I'm with commbank and have a platinum amex/mastercard credit card and have it set to auto payback the minimum required amount each month as to not incur interest and accumulate points in the process. Also when you have credit card with commbank you also can get a free travel debit card.

    Do i need the card? no. But the convenience, extra warranty, travel insurance and points in addition to being free in my circumstance make it worth it.

  • alexthebargainman on 07/08/2015 - 09:04
    +1

    ITT: Lots of people who think credit cards are only a bad thing.

    I love my credit card, it is set up to pay itself off every month. I generate more $ in award points than my annual fee so works out +ve dollars for me.

    They are only good when you can afford them!

  • hopper on 07/08/2015 - 12:12

    If you are a OZbargainer and want to take opportunity of all the deals, then have a credit card. (like if u want to buy a cheap airfare and u don't have money ATM)

  • Marcsie on 07/08/2015 - 12:21

    of course you should get a credit card, but use your BRAIN to control it, not your heart, as simple as that, my credit limit is $43,000, and an average spend is $5000 per month,that includes my investment properties insurance,coucil rates,repair and maintenance,interest payment top up after rent etc…And I still not pay a cent for credit card interest as I always pay the balance on time by automatic payment !

  • kevsta on 07/08/2015 - 12:45

    Definitely NOT weird at all.

    I once worked with someone that had accumulated up to 20k of debt on his credit card. He was always asking if it was pay day yet and at the end of the week was asking people to lend him money so that he could buy his own lunch.

  • h4lcyon on 07/08/2015 - 13:02
    +3

    Credit cards are just a tool, like a car, like a fork, like ozBargain.

    They are definitely geared towards making you pay the bank interest in return for borrowing money, but like everything in life learn how to use it, work out what benefit you can derive from it, any risks that might apply to see if it's worth it for you.

    I have quite a few that I use for different things, like overseas travel, everyday purchases, or interest free promotions for big items (that I need, not just want). All cards have interest free days, no annual fees and some kind of benefit to me.

    Here are some benefits to me,

    • I don't have to carry cash
    • It's not my money (especially important when overseas). So if my card/account is defrauded I'm don't have to suffer a hit to my cash balance whilst the bank investigates.
    • Cheaper currency conversion rates when buying in an overseas currency compared to the web-site converter or PayPal
    • Points for purchases I need to live, food, petrol, electricity, rates, rego, car, blah blah blah. That might equal $200 of bunnings gift cards or whatever that I would not have got.
    • I have a few high limit credit cards that I rarely use who have offered 0% balance transfers, I've taken these and put the cash into a mortgage account to offset the interest payable each month, at the end of the balance transfer period I'll pay the credit card back in full (and ask for another 0% transfer if needed).

    Some of none of these may benefit you, but it's worth looking into if you have time.

  • Cheap as chips on 07/08/2015 - 16:04

    I was about 25 before I got one - never spent beyond my means. I ended up getting one though because of the protection it gives you against fraud over a debit. And if your smart with it you can earn more interest on your savings (rates obviously really low now so doesn't make much difference) + point add up over the years.

  • greatlamp on 07/08/2015 - 20:11

    There is an advantage to having a credit card. You have much more protection if you ever get ripped off by seller if you pay by credit card than debit card - you can request a chargeback and the card issuer will investigate for you.

    Some debit cards let you do this too, If you choose credit when paying.

    If someone has your Debit card (or clones it) and your pin they can rob your bank account and no one will help you.

    Like you I used to think I didn't need a credit card and I didn't get one until I started working full time. People told me to get one to help my 'credit rating' but I knew that was BS, if you want a loan the banks will check your assets and income. If they think you need a credit card they will give you one with the loan for free.

    However don't let paranoid old fashioned people fool you. There is nothing honourable about not having a credit card and putting your money at risk.

  • abh_gup on 07/08/2015 - 21:03

    Advisors advice is spot on.

    You should get just 1 credit card with a limit of maybe $500 only. Use only sometimes and set up a direct debit to clear the full amount outstanding before monthly interest is charged. In just over 3-5 years, you would obtain a Veda credit score of 1 out of 10 (1 being best, 10 is bad)

    Also, you could go for a no annual fee card.

    The idea is to build a credit reputation / credibility. It's great that you don't use a credit card, nor should anyone rely on it. But modern day systems are weird, making credit ratings a criteria to get loans in the long term (for home, property, business setup, etc)

  • Captain Electrode on 08/08/2015 - 00:20

    I never had a credit card until I turned thirty. I only got one to use for PayPal, but then I needed it to get broadband internet, because my ISP wouldn't take any other form of payment, at the time.
    As far as I know, the Australian government does only record poor credit ratings, but lending institutions, such as banks, keep full records.
    Credit cards do have benefits, such as insurance against retail fraud. A good credit card record (ie. bank statements) can also help with getting a loan for a car or house.

  • charng on 08/08/2015 - 10:12

    Didn't have a credit card until almost thirty. Had been using a debit mastercard to do online shopping.

  • MountFranklin on 08/08/2015 - 11:10

    Credit card with automated closing balance at the end of the month is best - no interest charged!. Also estimate how much is your yearly spend on daily living and from there you can set a credit limit.

  • sintro on 08/08/2015 - 11:39

    All banking products are there to make them profit, especially through lending whether you pay it all back every month or not.

    If you don't see a need for a credit credit card then don't get one. It'll mean you have to pay your CC bill every month and that can be a hassle.

    Learn more about money here:
    The Biggest Scam In The History Of Mankind (Documentary) - Hidden Secrets of Money 4 | Mike Maloney https://www.youtube.com/watch?v=iFDe5kUUyT0

    Send me a message if you have any questions.

    • MountFranklin on 08/08/2015 - 17:06

      Bill at the end of the month is not a hassle if you set up automated closure of balance like any other direct debit payments you make in life. You can also get no fee credit cards

  • illumination on 08/08/2015 - 13:17
    +2

    Think this topic has received enough responses from both sides for OP to decide which camp he sits in, but I just thought I'd add that I'm definitely in the "you should definitely get a CC camp (if you are disciplined with money)".

    Reasons have been outlined very well in various posts above.

    The only reason not to get one is if you believe you will be more inclined to spend.

    Provided your spending pattern does not change and you understand all the deadlines and potential fees associated with the cards, you will only be up.

    In fact, I feel it is worth having an fee-free AMEX (Qantas Discovery) alone even if you use it for nothing but the AMEX statement credit deals that come up from time to time here.

  • dezzy on 08/08/2015 - 22:21

    I used to not having credit card at all. Until I was planning to purchase my first property, and was told that I need to get one to prove my credit rating is good. I just ended up getting a free annual fee card and never use it really.

    That was a few years ago though, not sure if the bank has changed their home loan process.

  • BuyoTheCat on 17/08/2015 - 13:08

    Credit cards are awesome. It feels great to be spending the banks' money. not mine.

  • illumination on 20/03/2017 - 02:12

    Scrimshaw, it's been 1.5 years. Are you still credit card-less out of curiosity? LOL

    • scrimshaw on 20/03/2017 - 11:54

      NAh, I have a CC now, it is basic CC from HSBC with a 1K limit. Gotta build that credit rating :)

      • illumination on 20/03/2017 - 12:03
        +1

        Was that the one that was annual fee free for life?

        There are many more cards you can get..!

  • MementoMori on 11/05/2018 - 09:45

    You're smart. The HSBC guy is a salesman, probably without knowing it himself.

    You'd like the book The Barefoot Investor, he discusses the pro's of what you are doing.

  • Sofie519 on 04/06/2018 - 13:31
    +1

    I have a business credit card which earns all the points. Fees and interest (which I don't incur) is tax deductible. For personal, I have a debit card which, because it's VISA, still gives me same protection etc on purchases. For online purchases, I use a rechargable credit card due to the horrific, true stories I have encountered from friends and clients about stolen identity, fraudulent charges etc

    So there is nothing wrong with your situation, you do not need a credit card to increase your credit rating etc.just do what is comfortable for you.

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