Which credit card to get?

[MVaden]

I agree with Nick. We use our credit cards for everything except fast food and small purchases under $10. 00. To me it just makes sense to not have to carry a lot of cash and or a checkbook around.



We get 5% cash back on all fuel purchases and 1% on everything else. We rarely have to purchase checks for our checking account anymore ($84. 00 last time) and we never pay checking account fees because our average balance stays higher.



I've been down the road of charge to the max and pay the minimum payment and that just doesn't work. At the old age of 42 I now know better, but I had to learn it the hard way instead of taking good advice that was offered to me.



I haven't paid interest on a credit card in over 9 years and don't intend to, ever again. I pay the balances off every month before the due date regardless of how much they are. Last year when we took a cruise for our vacation we recieved a pretty big credit card bill and my wife suggested spreading it out over 3 or 4 months but when it came time to pay the bill I just couldn't do it, I pulled money out of savings and paid it in full.



Credit cards can be can be tools to make your life more convienant.



OR



You can create a beast and if you don't feed the beast enough it will turn on you and eat you alive. Trust me, I know from experience, I'm still missing big ol chunks of flesh.

 

[guava]

Having been down the road of being up to my eyes in debt and nearly bankrupt AND surviving, I agree with the guys that say pay it off every month.



Try going to www.bankrate.com to do some research

They have a ton of information about various credit card deals and what works best. Since everyones situation is different, I don't think I could answer.



One thing that hasn't been mentioned (or I didn't see it) is the protection offered by purchasing things on credit cards. If you buy something and it doesn't work, doesn't look as expected, was misrepresented, you have the right to protest the charge. Having the Visa company on your side adds a lot of power to your purchase. I really enjoy seeing companies try to enforce their 14 day return policy after you've paid with a visa and the product doesn't work.

 

[KBennett]

that just baffles my mind hearing that. i won't pay cash on anything other than fast food [or something small under $20 like junkfood or groceries]. i use my amex 95% of the time, and the other 5% when they don't take amex, i'll put down the visa. now if you can't pay a card off in full every month, don't get one. but if you can, why not have one? with the dividend cards avalable, you can make money on them. i pay all my bills online for free, and i can arrange to have direct charges for cable, phone etc. put to a credit card. .



even for fuel. there are 2 station i know locally that has a cash discount [$0. 02 per liter off] over 100 liters fuel, but they are sub-par fuel quality there so i never go there.



but as always, everyone is entitled to their own opinions

I was not saying what was best for everybody, just for NPloysa. I personally use my credit card for all kinds of purchases but if NPloysa is concerned with being able to pay off the card then I would recommend that he saves up the cash and makes the purchase. If he wants he can put his purchase on a card and pay it off with the cash he has in the bank. I did some financial consulting in my past and it is amazing how easy it is for people to get trapped by credit card debt.

NPloysa said "Currently I save up, then spend it. But if I were able to put it on a card I could just pay the monthly payment and be done with it. "

Let's do a little math. If NPloysa charges $2000 on a credit card with a 15% interest rate and pays $50 a month to repay the debt it would take 56 months to pay off the the loan and he would have paid $790 in interest.

Flame me if you want, I was just trying to protect NPloysa from falling in a trap.

 

[BNH4221]

OK guys, heres my gig:



Have a Discover Platinum whatever card. Use it to buy EVERYTHING. That way don't carry much cash and purchases are protected.

Pay it off IN FULL every month. Disco pays me something like 1% cash back for all purchases.

Last year THEY sent ME a check for $350. I use their money for a month and they pay me to do it. Works for me!



One caveat: If the payment is 1 minute late there are interest charges and late fees up the wazoo. DON't BE LATE!





Best,



Steve

 

[Hohn]

OK guys, heres my gig:



Have a Discover Platinum whatever card. Use it to buy EVERYTHING. That way don't carry much cash and purchases are protected.

Pay it off IN FULL every month. Disco pays me something like 1% cash back for all purchases.

Last year THEY sent ME a check for $350. I use their money for a month and they pay me to do it. Works for me!



One caveat: If the payment is 1 minute late there are interest charges and late fees up the wazoo. DON't BE LATE!





Best,



Steve

This is an example of the Good that can come from a CC.



I didn't mean to imply that CCs are inherently evil. They aren't. They are neutral- just a tool, like all other money. No emotions.



Credit cards aren't the problem-- it's credit card DEBT. The numbers don't lie, and it's frightening how easily one turns into the other. Guess what? There are FIVE credit cards in circulation for every man, woman, and even child in the USA. The AVERAGE american owes $7500 in CC debt.



Now, the TDR isn't exactly the average American. People here are a little smarter (thus the purchase of a CTD).



So, IF you can manage the credit wisely, there's certainly nothing wrong with a CC, and they are mandatory in some cases (car rental comes to mind).



There are a LOT of positives to be had with certain CCs, but always be very careful.



All a credit card does is raise the stakes of cost/benefit. There are more benefits to be had from using it wisely, and costs that will make you pay dearly if you don't.



Justin

 

[NPloysa]

Thanks guys, makes me realize all the different scenarios your guys are in. I am still up the air about it for now. Just wanted opinions and I got 'em! Thanks a lot!