Could someone help be with Credit Cards?

[Sniper82]

When choosing a CC do I try and get lowest APR or is there some other stuff I should be looking at as well. I am a bit of a newb when it comes to CC.

 

[Rike]

Get a card with no yearly fee and that gives you back something you can use, (cash, air miles, etc.). Then NEVER, EVER carry a balance on the card. In other words, pay it off in full, on time every single month without fail.

Use the card in like you're spending cash and you'll be fine. Never buy more just because you haven't hit your credit limit. That's what the CC companies want you to do.

 

[Howard]

If you're getting one to faciliate online purchases (and can afford it all) don't worry about APR. Look for something with a good reward plan.

If you're getting one to borrow the money... I can't help you.

http://bettercreditcard.com/

 

[Brainonska511]

Never use a CC to pay for something you can't afford in cash. APR shouldn't be an issue as you should be paying off your bill in full every billing cycle. Just get a card that gives you some type of reward for using the card and always remember to pay it in full.

 

[Capitalizt]

Don't spend money you don't have.

 

[ElFenix]

fatwallet finance thread

 

[shocksyde]

Like others have said: APR is not that important if you intend to pay your bill in full each month. A low APR may come in handy in an emergency, however.

As far as rewards go: Are there any places you shop at often? For example, I buy a lot of things off Amazon.com. They offer a visa card that essentially gives you 3% cash back (in the form of Gift Certificates). You need to look at all the different reward cards and decide which one will save you the most money.

 

[Modular]

I'd go with the Citibank card that allows you to make a temporary card number for online purchases. That things noice.

 

[jupiter57]

Seven great replies with good advice!
I'm willing to bet that at least 5 of these posters have at least one Maxed-out Credit Card though.
Typical of ATOTers, you see.
And yes, you do (usually) learn from experience.

 

[lavagirl669]

Lowest APR and No Annual Fee...Rewards or Cash back rewards is good too.

 

[imported_Imp]

Originally posted by: Rike
Get a card with no yearly fee and that gives you back something you can use, (cash, air miles, etc.). Then NEVER, EVER carry a balance on the card. In other words, pay it off in full, on time every single month without fail.

Use the card in like you're spending cash and you'll be fine. Never buy more just because you haven't hit your credit limit. That's what the CC companies want you to do.

What he said, exactly to the point.

You should NEVER have to consider APR. If you do, you shouldn't have a credit card cause you're just going to put yourself in debt. Yearly fee is stupid to me, but could be 'useful' to some people... rich people who don't really need the added benefits.

 

[Strk]

Originally posted by: Imp
<div class="FTQUOTE"><begin quote>Originally posted by: Rike
Get a card with no yearly fee and that gives you back something you can use, (cash, air miles, etc.). Then NEVER, EVER carry a balance on the card. In other words, pay it off in full, on time every single month without fail.

Use the card in like you're spending cash and you'll be fine. Never buy more just because you haven't hit your credit limit. That's what the CC companies want you to do.</end quote></div>

What he said, exactly to the point.

You should NEVER have to consider APR. If you do, you shouldn't have a credit card cause you're just going to put yourself in debt. Yearly fee is stupid to me, but could be 'useful' to some people... rich people who don't really need the added benefits.

That's not always true. You may occasionally have to carry a balance. However, I wouldn't make it the number one priority.

 

[imported_Imp]

You may indeed, but that would suggest poor spending habits or just poor planning. Guess you could plan for those emergency situations where ??something explodes/burns down??, and you need to carry a balance for a while. Luckily, of the 3 cards I have, I've never bothered looking at the APR (one is almost 30% apparently). If I have to carry a balance, means I screwed up somewhere and deserve to pay.

 

[Brainonska511]

Originally posted by: jupiter57
Seven great replies with good advice!
I'm willing to bet that at least 5 of these posters have at least one Maxed-out Credit Card though.
Typical of ATOTers, you see.
And yes, you do (usually) learn from experience.

I don't know about the others, but I have zero maxed-out cards and have paid my bills monthly (and in full) since receiving my CC 1 year ago (and plan on keeping it that way).

 

[TheoPetro]

Whats the point of a credit card if it doesnt increase your purchasing power?

Say I make $100 a week for $400 a month and I have a limit of $300 on the card. Now I dont pay off my card until the last day of the month. During week 1 if I max out the card (spending $200 more than what I currently have) but can cover it at the end of the month (not spending more than $100 the rest of the month) whats the big deal?

I understand there are emergencies and what not but isnt that what a savings account is for?

Having the card may not increase my monthly purchasing power but I dont understand why I shouldnt use it to increase my daily or weekly purchasing power.

If I am missing something, or not thinking of something please let me know.

 

[Special K]

OP, you might want to check out the FatWallet finance forums. They have one thread that has an up to date listing of credit cards with rewards:

link

Two in particular I am considering are the Chase World card and the Citi Dividend Platinum Select. That Amazon card also looks nice, as I buy enough stuff from them to take advantage of the 3% back.

 

[TheoPetro]

Originally posted by: Special K
OP, you might want to check out the FatWallet finance forums. They have one thread that has an up to date listing of credit cards with rewards:

link

Two in particular I am considering are the Chase World card and the Citi Dividend Platinum Select. That Amazon card also looks nice, as I buy enough stuff from them to take advantage of the 3% back.

I got the Citi Dividend Platinum Select a few months ago and am pretty happy with it so far. The only complaint I have is the website. I track my bank accounts and cards with quicken and if I didnt have that it wouldnt be very easy for me to track my purchases and whatnot through their website alone.

 

[MrChad]

Originally posted by: TheoPetro
Whats the point of a credit card if it doesnt increase your purchasing power?

Say I make $100 a week for $400 a month and I have a limit of $300 on the card. Now I dont pay off my card until the last day of the month. During week 1 if I max out the card (spending $200 more than what I currently have) but can cover it at the end of the month (not spending more than $100 the rest of the month) whats the big deal?

I understand there are emergencies and what not but isnt that what a savings account is for?

Having the card may not increase my monthly purchasing power but I dont understand why I shouldnt use it to increase my daily or weekly purchasing power.

If I am missing something, or not thinking of something please let me know.

Credit cards certainly give you the flexibility to extend your purchasing power, but the attitude you've just described can get you in trouble.

What if, after maxing out your $300 credit card and expecting to pay it back at the end of the month, you are hit with unexpected bills such as car repair or medical expenses? Now your $400, which was already stretched thin, can barely cover your minimum payments.

It is far safer not spend money you don't have on hand, credit card or not.

 

[ghostman]

Originally posted by: TheoPetro
Whats the point of a credit card if it doesnt increase your purchasing power?

Say I make $100 a week for $400 a month and I have a limit of $300 on the card. Now I dont pay off my card until the last day of the month. During week 1 if I max out the card (spending $200 more than what I currently have) but can cover it at the end of the month (not spending more than $100 the rest of the month) whats the big deal?

I understand there are emergencies and what not but isnt that what a savings account is for?

Having the card may not increase my monthly purchasing power but I dont understand why I shouldnt use it to increase my daily or weekly purchasing power.

If I am missing something, or not thinking of something please let me know.

What if you maxed out your card in the first week, then get fired the next week? If you have a savings account that can cover it, then it's fine (in which case, your ability to purchase was not extended by the credit card). If you don't have the savings to cover it (or not enough to cover both the CC bill AND the fact that you'll need to tap into the emergency fund now that you're laid off), then you really need to rethink your personal budget.

I try to put everything over $20 on my CC because of the rewards. I have no clue what my APR is on my CC nor do I care. I know I can pay my CC purchases off every month.

 

[TheoPetro]

Originally posted by: ghostman
<div class="FTQUOTE"><begin quote>Originally posted by: TheoPetro
Whats the point of a credit card if it doesnt increase your purchasing power?

Say I make $100 a week for $400 a month and I have a limit of $300 on the card. Now I dont pay off my card until the last day of the month. During week 1 if I max out the card (spending $200 more than what I currently have) but can cover it at the end of the month (not spending more than $100 the rest of the month) whats the big deal?

I understand there are emergencies and what not but isnt that what a savings account is for?

Having the card may not increase my monthly purchasing power but I dont understand why I shouldnt use it to increase my daily or weekly purchasing power.

If I am missing something, or not thinking of something please let me know.</end quote></div>

What if you maxed out your card in the first week, then get fired the next week? If you have a savings account that can cover it, then it's fine (in which case, your ability to purchase was not extended by the credit card). If you don't have the savings to cover it (or not enough to cover both the CC bill AND the fact that you'll need to tap into the emergency fund now that you're laid off), then you really need to rethink your personal budget.

I try to put everything over $20 on my CC because of the rewards. I have no clue what my APR is on my CC nor do I care. I know I can pay my CC purchases off every month.

Living paycheck to paycheck or not having a savings account with enough $ in it to cover you for at least a month is a much stronger indicator of a person who cant manage their money than their credit card habits. I see where youre coming from but it makes no sense to me to have a card if it wont increase your purchasing power. Having the kind of situation you described requires you to have horrid financial planning in the first place. The inability to pay off the card is just the icing on the cake IMHO.

 

[mugs]

Originally posted by: TheoPetro
Whats the point of a credit card if it doesnt increase your purchasing power?

Say I make $100 a week for $400 a month and I have a limit of $300 on the card. Now I dont pay off my card until the last day of the month. During week 1 if I max out the card (spending $200 more than what I currently have) but can cover it at the end of the month (not spending more than $100 the rest of the month) whats the big deal?

I understand there are emergencies and what not but isnt that what a savings account is for?

Having the card may not increase my monthly purchasing power but I dont understand why I shouldnt use it to increase my daily or weekly purchasing power.

If I am missing something, or not thinking of something please let me know.

Using a credit card like that is a recipe for disaster. Don't get into that cycle.

 

[zerocool1]

Originally posted by: Modular
I'd go with the Citibank card that allows you to make a temporary card number for online purchases. That things noice.

discover does that too.