Should I get a credit card?

Wondering if you should get a credit card? A credit card can be incredibly useful, and with our helpful guide, you'll learn if a credit card is right for you.

Written by Hayley Bevan and Victoria Smith

Published: 22/12/25Published on December 22nd, 2025

Last reviewed: 22/12/25Last reviewed on December 22nd, 2025

7 mins read

Credit cards can be a useful financial tool to build your credit history, earn rewards and spread the cost of living. But to know whether a credit card is right for you, it’s important to look beyond the top-level benefits.

As with any type of short-term loan, there are multiple factors to consider before you apply. In this guide, we’ll walk you through the risks and rewards of a credit card, traps to avoid, and how to find a card that’s right for you.

Why should you get a credit card? Top reasons to get a credit card

Provided it’s managed sensibly, there are many advantages to using a credit card. Not only can it offer flexibility in how you budget your finances, but it can also open doors to other possibilities you might not get with a typical loan.

Building or repairing credit

By staying within your credit limit and only borrowing what you can comfortably afford to repay each month, credit cards can help to build credit. With an improved credit score, you’ll also be in a stronger position to secure other types of loans, such as a mortgage.

Renting a vehicle

Whether it’s renting a removals van for your next move or securing a family car, having a credit card as a financial tool can help you get things moving. Without a form of credit acting as a security deposit, rental companies may be reluctant to release a vehicle.

Booking hotels

Securing a room with a credit card not only offers financial security against supplier failure, but it also means you can earn rewards along the way, such as points, airmiles, and cashback. With some providers, you might get other perks, such as travel insurance and late checkouts.

Managing emergencies

As organised as you might be with your finances, it can be difficult to budget for life’s twists and turns. Whether it’s a car repair, medical bill, or replacing a broken appliance, a credit card can help to spread the cost of living over a manageable timescale.

Fraud protection

Every purchase on a credit card is covered under Section 75 of the Consumer Credit Card Act. So, if a fraudulent transaction is made from your account, there’s a layer of defence to protect you from being liable. Should you spot fraudulent activity on your account, it’s important to make your lender aware straightaway.

Purchase protection

Similar to fraud protection, Section 75 of the Consumer Credit Card Act also protects you in the event of receiving damaged or broken goods. Instead of putting up with disappointment, you have the ability to potentially claim your money back from the card issuer.

Access to better financial products

By demonstrating responsible borrowing behaviour, you could get access to other financial products, such as higher credit limits, preferential rates, or securing a mortgage on a family home. Even if you currently have bad credit, sensibly using an Aqua credit card can help you get things back on track.

The risks of getting a credit card

As tempting as it might be to get a credit card, there are certain risks you need to consider before making an application. Here are some of the most common drawbacks and potential pitfalls that come with lending.

Debt accumulation

When you have more access to funds, it can be tempting to increase your daily spending. But, as with every type of loan, you’ll need to pay it back. For that reason, a credit card should be used sensibly to spread the cost of living or manage unplanned, emergency purchases. Carrying a significant balance from one month to the next will only put more pressure on your finances.

High interest rates

Some credit cards have high interest rates. Should you continue to leave your debt unpaid, interest will be applied to your balance which can make it harder to manage your finances. That’s why it’s important to only borrow what you can comfortably afford to repay every month.

Additional fees

Depending on your lender, there could be fees attached to unintended use of your credit card. Typical types of fees could be a charge for missing a payment deadline, exceeding your credit limit, withdrawing cash, or using your card abroad without lender authorisation. For that reason, always read the terms to double-check what you’re signing up for.

Potential credit score damage if you miss payments

Before you apply for a credit card, it’s important to know what you can afford to comfortably repay each month. Falling behind on payments or carrying a balance from one month to the next could weaken your credit score and make it harder to secure other financial products such as a loan, mortgage, or mobile contract. By sensibly managing your spending and making payments on time, you can build your score and open doors to other financial possibilities.

Common credit card traps to avoid

If you’re new to the world of credit cards, there are certain traps you should avoid to protect your credit score and overall financial health. Signing up for a credit card without an awareness of the risks could leave you worse off in the long run.

Introductory 0% APR offers

Some lenders attract new customers with 0% APR offers. Although it might seem appealing on the surface, you could be faced with higher interest rates once the introductory period has ended. To avoid the risk of more debt, it’s important to pay off what you borrow within the promotional period.

Using a credit card to withdraw cash

When you withdraw cash using a credit card, you could be charged a cash advance fee which varies depending on your lender. In some instances, you might also pay interest on the withdrawn amount which accumulates daily without any interest-free grace period. Withdrawing cash abroad can also incur additional fees.

Making minimum payments

Treating your credit card balance as a non-priority for payment might seem convenient. But by continuing to carry debt, you’ll accumulate interest that soon mounts up. In some instances, it might make more sense to pay off the minimum. But, as a general rule, you should always aim to clear your balance every month.

How to choose the right credit card for you

Choosing the right type of credit card can feel overwhelming, especially if you’re new to credit. So, to narrow your search, think about how you intend to use credit and what you want to achieve with your finances. Here are some credit card options to get you started:

Credit builder credit card

Designed for those with little or no credit history, a credit builder credit card can help to repair or improve your credit score. As with all types of credit cards, you’ll only build credit by demonstrating responsible borrowing behaviour.

Balance transfer credit card

If you already have credit and want to transfer your balance to a lender offering a lower interest rate, you might consider a balance transfer credit card. As part of your research, be sure to check transfer fees and post-promotion interest rates.

0% purchase card

With a 0% purchase card, you can take advantage of a no-interest promotional period to spread the cost of costly purchases such as a holiday, electronics, or furniture for your new home. Even though you benefit from no interest, it’s sensible to pay back what you borrow before the promotional rate has ended.

Rewards credit card

A rewards credit card gives you the ability to unlock perks such as points, airmiles, or cashback on your purchases. Although it’s a benefit to receive perks and rewards from your lender, it shouldn’t serve as an incentive to spend beyond your means.

Before you settle for a credit card, it’s wise to compare the terms set out by your new potential lender. As well as interest rates and additional fees, you should also check eligibility requirements and whether you’ll have access to any money management tools.

A credit card can be a useful tool to spread the cost of living by offering flexibility with your finances. Provided it’s used sensibly, you can also build your credit score to open doors for other financial products.

Whether it’s your first credit card or you want to repair your credit health, an Aqua credit builder credit card can give you the power to get moving in the right direction. All with 24/7 fraud protection, personalised credit limits, and expert support and tools.

Representative 39.9% APR (variable) on Aqua Classic

Contributors

Hayley Bevan

Hayley is an editor at Aqua.

Victoria Smith

Victoria is an editor at Aqua.