what credit card should i get

[Greg S]

3% is the most any credit card gives you in rewards?

do the rewards go farther in the form of frequent flyer miles?

Sorry, mistyped. I meant 5% and 1%. We have the Citi cashback card.

 

[benimal]

http://cgi.money.cnn.com/tools/informa/credit.jsp

While it's good to solicit everyone's opinion, some people will be biased toward/away from a card that might be a good fit for you.

Ben

 

[scorch70]

My advice is to not worry about cash back or rewards. No one gives you anything for free in the credit world, so you pay a higher interest rate for these cards that give you "something" back. They are really screwing you by charging you a higher interest rate.

And remember, no matter how good you are at paying bills on time, one day you will go a month or two or twelve where you cant pay the entire balance off at the end of the month. This is when you will be glad you got a lower interest rate card instead of one that gives you "rewards." That s*** is mostly a scam, just like extended warranties at Worst Buy.

 

[Mach 3.5 Turbo]

My advice is to not worry about cash back or rewards. No one gives you anything for free in the credit world, so you pay a higher interest rate for these cards that give you "something" back. They are really screwing you by charging you a higher interest rate.

And remember, no matter how good you are at paying bills on time, one day you will go a month or two or twelve where you cant pay the entire balance off at the end of the month. This is when you will be glad you got a lower interest rate card instead of one that gives you "rewards." That s*** is mostly a scam, just like extended warranties at Worst Buy.

I've had a credit card for over 4 years now, and I've never missed a payment. The interest rate couldn't mean less to me, it might as well not be there. I know the possibility of me not being able to pay it very real, but I'd rather not live my life preparing for the worst. Give me rewards. I'm smart enough to take advantage of the credit card companies, not the other way around. I've got a cashback US Bank card now, and a credit card from my local hillbilly bank where I used to live. I've switched to purchasing everying with my US bank card. It just makes sense to me. You have to be disciplined though, so don't get a credit/rewards card without knowing what you're doing and being prepared to use it responsibly. If you're smart, you can screw the credit card companies.

For the people who said not to get a credit card at all, I'd like to see how you plan on buying a house in a few years. Did you have to get a cosigner on your car loan? I'd rather not risk someone else's credit in case something happens to me. The only way to build credit is to use credit wisely. Granted, if you're an irresonsible spend-happy person maybe you shouldn't get a credit card. If you have a dab or two of common sense, get one or two and use them as much as you can. When I went to buy my car last year (at age 20), I was approved for up to a $37,000 car with no cosigners or any strings attached. In a few years, I'll be able to buy a house myself without risking my parents on the loan. The trick is to you use your credit to the limit, but never to cross it.

 

[rjmhotrod]

My wife and I have been considering a Capital One card or some such that offers mileage rewards without charging a fee to get them. We currently have a BB&T Visa that gives us mileage points but for like $40 a year or something. We've taken several trips using frequent flyer miles combined with rewards points including a trip to Hawaii last February. My business card is an AmEx gold, lots of membership rewards and protection if needed. Rates on cards don't mean a thing to me because I pay off my cards in full every month. And we use our credit cards for everything that we buy. That's my advice to you. And get Quicken and learn how to use it and set up a budget. Once you learn your spending habits, you may find ways to save money for the things you really want anyway. DO NOT get a credit card just so you can buy more things and pay it later. That's the quickest way to get into financial trouble, especially if you are not disciplined in your spending.

 

[girth]

I've had a credit card for over 4 years now, and I've never missed a payment. The interest rate couldn't mean less to me, it might as well not be there. I know the possibility of me not being able to pay it very real, but I'd rather not live my life preparing for the worst. Give me rewards. I'm smart enough to take advantage of the credit card companies, not the other way around. I've got a cashback US Bank card now, and a credit card from my local hillbilly bank where I used to live. I've switched to purchasing everying with my US bank card. It just makes sense to me. You have to be disciplined though, so don't get a credit/rewards card without knowing what you're doing and being prepared to use it responsibly. If you're smart, you can screw the credit card companies.

For the people who said not to get a credit card at all, I'd like to see how you plan on buying a house in a few years. Did you have to get a cosigner on your car loan? I'd rather not risk someone else's credit in case something happens to me. The only way to build credit is to use credit wisely. Granted, if you're an irresonsible spend-happy person maybe you shouldn't get a credit card. If you have a dab or two of common sense, get one or two and use them as much as you can. When I went to buy my car last year (at age 20), I was approved for up to a $37,000 car with no cosigners or any strings attached. In a few years, I'll be able to buy a house myself without risking my parents on the loan. The trick is to you use your credit to the limit, but never to cross it.

You are exactly right. Only FOOLS get a credit card as a way of actually borrowing money. If you don't pay your balance off every money you ARE getting screwed, regardless of which card you have. On top of that, the interest rate is even MORE meaningless when you consider that the bank can change the rate any time they want and basically ALL of them do. I got a yahoo credit card a few years back because it advertised "7.9APR for the life of the card" -- well, about 12 months after getting it they jacked the rate up to 16.99%. So a lot of good that 7.9% rate did me. That's just ONE example of how they all operate.

 

[Protege52003]

capital one offers prime rate as the APR, but the first time you are late on a bill the rate will jump up well over 15.00%.....you have to pay every bill on-time....

i use AMEX Blue 5.99% on balance trans till paid full
Chase 4.99% on my balance till paid in full

and i use my DCU gold Visa for all my purchases and pay it off every month. DCU has pretty good reward programs and i build up points fast.

All three CC's have 9.99% APR for purchases. As I said above I only use my DCU gold and pay it off every month. Just have some balancs on AMEX and Chase I am working on at low Rates.

 

[DaViper]

If you're smart, you can screw the credit card companies.

Haha and I can see you're also smart enough to realize that you're not screwing the credit card companies even when you pay all your bills on time (sarcasm)....they make money from your purchases no matter what....you aren't screwing them. Please dont run for president haha.

-DaViper

 

[scorch70]

Haha and I can see you're also smart enough to realize that you're not screwing the credit card companies even when you pay all your bills on time (sarcasm)....they make money from your purchases no matter what....you aren't screwing them. Please dont run for president haha.

-DaViper

My thoughts exactly. No one gets one over on the credit card companies. They are getting money everytime you use the CC. They would not do business with you unless they KNEW they could make money. Yes, they are making less than they would like if you pay your balances off every month. But they are still getting their cut.

 

[Mach 3.5 Turbo]

Haha and I can see you're also smart enough to realize that you're not screwing the credit card companies even when you pay all your bills on time (sarcasm)....they make money from your purchases no matter what....you aren't screwing them. Please dont run for president haha.

-DaViper

(gtfo)

Hey, I haven't paid a credit card company a damn cent. Someone always pays, and with the case of credit card companies it's the guys who hold a balance each month. Think about it, if just one in ten people carry a 16% interest rate on their stuff, and they pay out a 1% cash back to those who never carry a balance, they still gain 6% from that one irresponsible guy. That's being pretty generous too, I bet about a third or better carry a balance each month. They are relying on the numbers working in their favor, and they always do, so they win. So I guess you're right, I'm not screwing the credit card company. I'm screwing the poor suckers that owe them half their paycheck each week. It's all the same to me. I haven't paid anyone a dime, I've used a super convenient service, and they pay me to use it. I'd say I'm making out pretty well. Mach for president in 08!!

 

[DaViper]

(gtfo)

Hey, I haven't paid a credit card company a damn cent. Someone always pays, and with the case of credit card companies it's the guys who hold a balance each month. Think about it, if just one in ten people carry a 16% interest rate on their stuff, and they pay out a 1% cash back to those who never carry a balance, they still gain 6% from that one irresponsible guy. That's being pretty generous too, I bet about a third or better carry a balance each month. They are relying on the numbers working in their favor, and they always do, so they win. So I guess you're right, I'm not screwing the credit card company. I'm screwing the poor suckers that owe them half their paycheck each week. It's all the same to me. I haven't paid anyone a dime, I've used a super convenient service, and they pay me to use it. I'd say I'm making out pretty well. Mach for president in 08!!

Yea but the credit card companies get a percentage of the money from all your purchases....they CAN'T lose money. I'm not sure what they charge a store when you buy something there, but it's probably somewhere around 3% or 4% (maybe more?). If they offer you 1% or 2% cashback they're still making 1% or 2% of your purchase each time you buy something.....but yea they do make most their money off the interest when people don't pay off their balances. Haha I really dont think you're even screwing anyone...more like the credit card companies screw all of us because they're technically making less money go to the stores we buy from (which I would imagine increases their prices).

-DaViper

 

[Mach 3.5 Turbo]

Yea but the credit card companies get a percentage of the money from all your purchases....they CAN'T lose money. I'm not sure what they charge a store when you buy something there, but it's probably somewhere around 3% or 4% (maybe more?). If they offer you 1% or 2% cashback they're still making 1% or 2% of your purchase each time you buy something.....but yea they do make most their money off the interest when people don't pay off their balances. Haha I really dont think you're even screwing anyone...more like the credit card companies screw all of us because they're technically making less money go to the stores we buy from (which I would imagine increases their prices).

-DaViper

Sounds about right, we're all getting screwed to some extent. The way I look at it though, I don't pay any more when I use a credit card than the next guy who uses cash. I get a little back each month, so I win. Everywhere I shop uses credit cards, so since everything costs the same either way, I might as well use my convenient plastic and get some of it back. I'm a big advocate for credit card usage, just never hold a balance. You're right, I'm probably not screwing anyone, but I'm ahead of the pack.

I still think I'd make a good president in `08, they'll just have to change the minimum age requirements.(boom01)

 

[ChopstickHero]

whatever card you get, just learn to use them wisely.

I have 4 CC's ... all of them in perfect standing...

Even if you're not going to use them, they are a good form of starting some credit.

 

[Greg S]

Yea but the credit card companies get a percentage of the money from all your purchases....they CAN'T lose money. I'm not sure what they charge a store when you buy something there, but it's probably somewhere around 3% or 4% (maybe more?). If they offer you 1% or 2% cashback they're still making 1% or 2% of your purchase each time you buy something.....but yea they do make most their money off the interest when people don't pay off their balances. Haha I really dont think you're even screwing anyone...more like the credit card companies screw all of us because they're technically making less money go to the stores we buy from (which I would imagine increases their prices).

-DaViper

Close, the fees that merchants pay for credit card usage are about 1-1.5% for Visa and Master Card and 3% for American Express. Visa and Master Card will return the transaction fee if the product is returned but American Express will not, so even if you return something that you bought on AMEX the vender still has to pay AMEX the 3% of the purchase price. This is why a lot of places do not like to accept AMEX. We do at my work but we let people know that if they return something that it will cost them that 3% and since almost everyone who has and AMEX has both MC and Visa it's usually not a problem.
Basically the vendors are paying for all those cashback and milage plans for the credit card companies in the form of transaction fees which in turn rusults in prices being raised up to compansate for it. You'll find that paying cash will bet you the loest price on large ticket negotiable items because this gets rid of many of the fees that the endor has to pay for you to use plastic.
Don't get me wrong I still use my credit card for almost everything that can't get a cash price negotiated and pay it off at the end of each month so my wife and I get our cashback but I would rather save the transaction fee off the price of the product whenever possible instead of getting it back in the form of a check from the credit card company which will also have a 1099 tax form sent for it around the end of this month.

 

[Gbourdon]

I have the uber most credit card debt. I went back to school and had no job for about 7 months. Paid for all my books and car insurance etc etc.

I was used to having a full time job and lived the same lifestyle with no job at all.

I have only ever had 2 late payments in the past 6 years and they were on a card that charged me an annual fee that I never even used. My credit isnt great but it isnt bad. I have never had a cosigner or anything and I was approved for a mortgage a year or so ago. My debt to income ratio is all fuxxored because I overextended myself. I am glad I learned my lesson early on when I was young and stupid. I will never make the same mistake again.

 

[txrxs]

My debt to income ratio is all fuxxored because I overextended myself. I am glad I learned my lesson early on when I was young and stupid. I will never make the same mistake again.

i'm with ya on that one

 

[jred321]

i just got a bill of $0 from one of my credit cards today and realized that it expires next month so i looked at the cnn money link above and was poking around a bit. it looks like amex blue is pretty good, 0% apr for up to 15 months (depending on credit), no fee, don't have to pay off every month like other amex cards. they have rewards too but that part seems a little confusing. the only real bad part is that not everywhere takes amex, but i have a disney visa ) no 0% apr til sept) that i can use other places if need be, but since i don't really have an income right now i dont use them anyways. when i graduate though it's a few months before i start my job so i'll probably acquire some debt then since i plan on traveling so hopefully i can find a 0% interest rate for a while.


is amex accepted in other countries, especially europe? that's where i'm looking to travel after school