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Baraka_Guru · 05-06-2008, 05:38 PM

Words of warning on cards with rewards and no annual fee:

You said you are self-controlled, which is good. You also mentioned the fine print (which I browsed), which is also good. But realize that the banks must make their money somehow, and this is how they can do it.

They can have variable APRs which can get pretty high.
They sometimes shorten the period between the billing date and the payment due date, therefore encouraging late payments.
Late payments are ruinously expensive. Starting at around $100, the fee can be $30 or more.
Finance fees range between $0.50 to $1.00.

They money comes from somewhere. There is no such thing as free money. Be diligent.

Unfortunately, my favourite card is one that has a $25 annual fee and no rewards. The interest rate is a maximum of around 12% though (compared to 18.5% on my last card). I carry a balance because I'm still recovering from being a student. I'm sure none of this would interest you.

05-06-2008, 05:38 PM	#8 (permalink)
Baraka_Guru warrior bodhisattva Super Moderator Location: East-central Canada	Words of warning on cards with rewards and no annual fee: You said you are self-controlled, which is good. You also mentioned the fine print (which I browsed), which is also good. But realize that the banks must make their money somehow, and this is how they can do it. They can have variable APRs which can get pretty high. They sometimes shorten the period between the billing date and the payment due date, therefore encouraging late payments. Late payments are ruinously expensive. Starting at around $100, the fee can be $30 or more. Finance fees range between $0.50 to $1.00. They money comes from somewhere. There is no such thing as free money. Be diligent. Unfortunately, my favourite card is one that has a $25 annual fee and no rewards. The interest rate is a maximum of around 12% though (compared to 18.5% on my last card). I carry a balance because I'm still recovering from being a student. I'm sure none of this would interest you. __________________ Knowing that death is certain and that the time of death is uncertain, what's the most important thing? —Bhikkhuni Pema Chödrön Humankind cannot bear very much reality. —From "Burnt Norton," Four Quartets (1936), T. S. Eliot