Hi, I'm 26 and have never owned a credit card. All of my friends own credit cards. I never though I needed to own one as I always make sure I have enough money to pay for every purchase, big or small. However, would it be better to get a credit card and make some purchases, just to develop a good credit rating for when I eventually go to the bank for a loan?

Just wondering why people have credit cards, apart from needing money (which I don't at the moment).

[LucreziaBorgia]

We have one with a nice big credit line on it for emergencies. We generally take it with us when we travel. Its nice to have it there in case we need it.

We have a couple more, but we don't use them. Now we just pay them off.

It can't hurt to get a card and build a good credit history, though. Sometimes no credit history can be as difficult for you as bad credit history. Next time you go to your bank, see if someone there can offer you some financial advice on building a good credit history.

[dyermaker]

Originally posted by CharlieGirl
However, would it be better to get a credit card and make some purchases, just to develop a good credit rating for when I eventually go to the bank for a loan?

Yes.

Just wondering why people have credit cards, apart from needing money (which I don't at the moment).

I have mine to buy things online.

[moimeme]

It can be very hard to do things like rent cars without one. Also, if you want to cash in your air miles, some of the collection plans will only accept credit cards to pay the fees. And, as others have pointed out, if you're travelling and get stuck, it's useful to have a card handy.

So, yes, it would be useful to get one for yourself. Pay it off before interest kicks in each pay period and you can use it like a free loan while your own money continues to collect interest.