Credit cards

[Tennis]

How do you choose a new one?

There are so many options out there.

[pionock]

You don't. You simply don't choose one. I don't agree with everything Dave Ramsey says but he's right on credit cards just generally being a terrible thing.

However, if you feel like you're responsible enough to be able to use it and reliably pay off the balance in a timely manner, I would see if you can get one through your bank. I was in the marines, so I used my bank Navy Federal.

[bladeXcrasher]

Didn't you post a thread about how terrible credit cards are? Why are you getting one now?

[GodlyBob]

You don't. You simply don't choose one. I don't agree with everything Dave Ramsey says but he's right on credit cards just generally being a terrible thing.

However, if you feel like you're responsible enough to be able to use it and reliably pay off the balance in a timely manner, I would see if you can get one through your bank. I was in the marines, so I used my bank Navy Federal.

Bank is a great place. They're easy to manage payments with.

[Forgettable]

Whatever earns you the most money. I have a TD Visa First Class Travel card that they waived the annual fee on, so I make about $10/month on it by just putting all my basic purchases and bills on it and paying it back every month.

[Tennis]

Didn't you post a thread about how terrible credit cards are? Why are you getting one now?

I have one. I want to get a new one and get rid of the current one.

I said it's terrible when you don't pay it off each month and have to pay interest.

[ItsRainingMetal]

Visa CC, they work pretty much everywhere.

/thread

[Self Inflicted Wounds]

Didn't you post a thread about how terrible credit cards are? Why are you getting one now?

I was thinking that as well... didn't he post about how credit cards, and debt are for losers or something?

[Lohkay]

Simple.

1) If you can't pay it off before the end of the month, don't get one at all. Or if you feel obligated, get the one with the lowest interest rate possible.

2) If you do pay it off every month, go for the card that gives the best cash back. In case you spend a lot (10k-20k/year) with it, you might look into cards that have annual fees but compensate with better cash back. For example, to break even on a card that costs 200$/year with 2% cash back, you need to spend 10k. From that point on, its free money.

As an example, I have the MC world which costs 220$/year, gives me loads of benefits and 1.5 to 2% cash back depending on the spending bracket. Since I use it for everything, I can go through 50k+ in a year, that gives me back ~800$/year or 580$/year in profit. Thats on top of the fact that since doing that, I was able to reduce my debit card usage to nothing and remove any fees in that regard.

[Stormspellz]

low interest and no yearly fee's, if you never had a credit card before, keep your limit on the low side, to build credit you want to use it, but don't hold a balance on it.

I have two credit cards myself, my every day one (don't use my debit card) & and an emergency card, always paying off the balance each month.

[chazus]

Simple.

1) If you can't pay it off before the end of the month, don't get one at all. Or if you feel obligated, get the one with the lowest interest rate possible.

2) If you do pay it off every month, go for the card that gives the best cash back. In case you spend a lot (10k-20k/year) with it, you might look into cards that have annual fees but compensate with better cash back. For example, to break even on a card that costs 200$/year with 2% cash back, you need to spend 10k. From that point on, its free money.

As an example, I have the MC world which costs 220$/year, gives me loads of benefits and 1.5 to 2% cash back depending on the spending bracket. Since I use it for everything, I can go through 50k+ in a year, that gives me back ~800$/year or 580$/year in profit. Thats on top of the fact that since doing that, I was able to reduce my debit card usage to nothing and remove any fees in that regard.

Pretty much this. Doing some research is critical. What credit card you can/would get is related to what you want to do.

Are you looking to build credit from bad? What's wrong with your current card?

Different cards do different things. Some people rotate through 3-5 cards to get those $100-400 cash back deals.

I use my Bank of America card that gets 1-3% cash back, and just shove everything through it I can. I just use it as if it were my checking/savings account and pay it off every other week.

[Symphonic]

I like mine where I get points for every dollar i spend, and then I can redeem them for cash. This makes every purchase I make give me money back. I also would only use a credit card like a buffer, where you only spend what you actually have money for, and then pay it off every month. I let the credit card statement show all my purchases I've made, and then my actual bank account only shows money going in from work, and money going out for paying bills. I prefer to have a card that has no annual fee (I have a USAA Visa - my dad was in the air force so I have enjoyed working with USAA).

[Tennis]

Whatever earns you the most money. I have a TD Visa First Class Travel card that they waived the annual fee on, so I make about $10/month on it by just putting all my basic purchases and bills on it and paying it back every month.

That doesn't add up. The website says it's a $120 annual fee.

[Forgettable]

That doesn't add up. The website says it's a $120 annual fee.

Yea but my bank waived the fee for me personally as a special offer. Probably not available anymore and I'm just grandfathered in.

[cuafpr]

try sites like http://www.creditcards.com/, and others get reviews on the type of card you want, cash back, reward points, miles, zero interest, no balance xfer fees. If looking to build or re-build credit look into secured Credit cards, basically you get a low credit amount like 500 and you pay the bank 500.00 get a CC with that limit and they log the payment as a secured loan to the credit reporting agencies does wonders for rapidly rebuilding credit (i know first hand).

[Matchles]

If you can avoid getting a credit card, don't get one. Same goes for any sort of loan.

That is actually pretty terrible advice. Without any sort of credit history you are going to have an absolute bitch of a time getting a home loan.

[Tennis]

That is actually pretty terrible advice. Without any sort of credit history you are going to have an absolute bitch of a time getting a home loan.

What if you don't need a loan?

[Drungan]

I have a mastercard with low credit limit around 500 $ only time i use it is for when i buy stuff online, it just feels safer, as if the card info gets abused it is limited what damage it can do before the limit is met and it can not be used anymore.

but depends what you need it for i guess. best advice would be to talk with your bank and see what they can offer, normally they have some deals that removed annual fees with some card types.

[Molis]

If you can avoid getting a credit card, don't get one. Same goes for any sort of loan.

Because we all have half a million dollars laying around to purchase house.

Being a responsible borrower is a part of life.

[Tennis]

Because we all have half a million dollars laying around to purchase house.

Being a responsible borrower is a part of life.

You don't need to purchase a house. You can just rent.