Is it necessary to have a credit card??

There's always talk of credit card debts, credit histories etc, and financial providers looking up people's credit history before lending them money. I've never seen the point of a credit card and always use a debit card.

Obviously it's good to have a good credit history, but because I don't have a CC I don't have a history. I've been told it won't affect my home loan application, but is it a good idea for the future to use a credit card to build up history?

I did get a no fee card last year but have never used it.

 

This is not the US...

You don't need to build credit as such...

 

but hire car companies will only accept credit card, they won't accept cash. We learnt the hard way with this, I think it's about accessing funds if something goes wrong.

 

A credit card (IMO) is best used for accumulating points while your savings sits in the offset. You then clear the credit card debt each month before interest kicks in.

It doesn't help a great deal when applying for a home loan (it may help slightly with credit scoring if you've shown good conduct - and certain banks consider credit card holders to be existing clients so offer higher LVR loans - ANZ for instance)

Cheers

Jamie

 

They accept debit cards though.

 

I always thought the deal was if there was some unauthorised activity on your credit card, it is the banks problem and they take care of it.
If it is on your debit card, too bad. You are out of luck.

Always made me avoid debit cards.

 

I paid for hire car with debit card but there may have been a condition which I can't remember now...an extra bond or something

 

As mentioned the existing customer thing can be handy.

Also if you have gold or platinum they give travel insurance if you purchase the holiday with the card. Haven't read the PDS on the insurance...

 

How do you brag to all your friends your credit limit if you dont have a credit card?

pinkboy

 

who needs a credit card when you can show them the size of your wallet..LOL

Seriously though, Hertz Hire would not take a debit card, I think it had something to do with the bond......and the credit card was overdrawn..... oops

 

Just be sure to triple check when closing one. Walked into ANZ a month ago to close my platinum card after refinancing my loan. All sorted in branch and I went on my way.

A month later I get a text saying card is overdrawn, yesterday I go in to close out my normal ANZ accounts and they said what about this overdrawn credit card. They couldn't even sort it in branch! Gave me a number to call, 4 transfers later they tell me it had pending charges and then because I didn't pay them they charged me.
Safe to say I demanded it be removed which they did oblige but point being that could have gotten nasty if I just left that going.

 

Don't you love credit cards, I know a couple of property investors who used their credit cards for deposits on units in Sydney, worked out very well, they were cash straped at the time. Those credit cards come in handy

 

Touche, I love your avatar.... LOL.....copying is the highest form of flattery...

How am I going to beat that one, let me think

 

Hire car companies we have used insist on credit card, debit card refused as they said they cannot pre-authorise the excess on debit cards.

Cruise ship insisted on credit card or hefty cash bond.
Marg

 

Credit cards have built in insurance that protects you, debits cards generally don't.

As a general observation, you don't need to have a large limit on your credit card for it to be useful. Credit cards can be in surplus, so you can throw $5,000 on a $1,000 card if you're making a large purchase.

 

random question. i went out last night and i was using my amex for the first time, every bar i went to the bartender said they accepted amex. but had me thinking maybe they were just charging me extra for using it and not telling me? / they didn't know / care. reason being amex is generally for bigger retailers?

question being how would you know if you got charged extra for amex is it just added to the bill or can you see it on the receipt?

 

Generally there is signage stating extra fees will be incurred if using AMEX

 

I have a 4k limit on my credit card and only use it for day to day living expenses. Like Jamie/Peter said, better off with money in offset and interest free, and just pay some $ onto it if needed for more than available limit

 

Having a credit card isn't necessary however it's nice to use the banks money for the 55 or so days interest free while your money sits in the offset account. On the condition each month the balance is paid out in full.