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Time to Get a Real Credit Card
It's time to trade one vehicle to slavery for another. After reading a thread on getting good credit, I got a secured credit card and paid it off every month for almost two years. Now my mailbox is stuffed with credit card offers. It's time to get a rewards card to get money back for all the things that I would buy anyways (I have no credit card debt and used to only pay in cash). It's true that people spend more with plastic over cash, but I'm fairly self-controlled.
What's your favorite credit card? (No, I don't qualify for an AMEX Centurion :) ) Can you recommend one without an annual fee? A few cards that caught my eye... My friend has the Citi Dividend card.
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I only have one and it happens to be my favorite. Nothing spectacular, but it works for me. It's a US Bank student VISA with no annual fee, and they have some semi decent rewards. The reason why I like the card is because it's integrated into my online banking, which is a huge convenience for me.
That chase freedom card looks pretty enticing though. |
I just recently got a BP Chase credit card. It gives a 10% cash rebate on purchases at BP gas stations, 4% rebate for dining, lodging, plane tickets, and rental cars, and a 2% rebate everywhere else (other than non BP gas stations) for sixty days, and then it reverts to 5%, 2% and 1%. No annual fee, no reward limit.
It seemed like a decent deal given the price of gas these days. I have a Capital One card for other everyday purchases but I'm not that thrilled with its rewards options and I may be looking into getting something else on that front soon. |
Be sure to check out the rates after the introductory period. ALthough you say you're "fairly self-controlled", life happens sometimes.
Scour the internet and shop it, just like you would anything else you plan to keep for a while. Check out the offers you get, and do read the fine print. Here's a link to start you off. |
I use the freedom card and love it.
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You can stop all those offers in the mail that open you up to identity fraud by placing a fraud alert on the one card you do have. It stops the general credit report info the cards companies receive to target mailing lists which in turn stops all those offers.
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Definitely get both Chase Freedom and Amex Blue Cash. I have both and they're great.
Of course, pay off your balances every month, otherwise the cash rewards aren't really much of a reward. |
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.
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. |
Make sure you read all of the fine print. That includes the entire cardholder agreement and all of the disclosures that nobody ever reads. This is part of the reason so many people are in trouble with credit cards.
Consider the Chase card you linked: Quote:
Citibank has a terrible reputation. I would recommend strongly against doing business with them. A credit card is a very versatile and powerful financial tool if and only if you use it correctly. Like any powerful tool, it has equal capacity for doing harm and good, and what it does for you will depend entirely on how you use it. Food for thought: My job (which I am currently on hiatus from) is offering credit cards. I'm a telemarketer; I call people up and I convince them what a great idea it is to get a card with Chase/BoA/whoever the client of the day is. This is my job, and I am good at it. When I am at work I spend a significant portion of every day perusing credit card offers, determining the merits and disadvantages of them, and going over the fine print. I don't carry a credit card. |
For what it's worth, I'll just toss out a friendly reminder (for reasons mentioned in the credit thread linked above) to seriously consider avoiding Capital One credit cards.
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The bottom line really is that regardless of which card you choose, they are designed to make the bank money. You would need to be a credit ninja to pay little or nothing and reap the rewards.
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Get a credit union account and then get a card from your credit union. There's a website out there that will direct you to your nearest credit union.
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AMEX Blue Cash.
I didn't have a rewards card for years, but always paid off my full balance anyways. My first full year of using the AMEX Blue Cash Card, and I had about $800 worth of Cash Back for the 2007 year. On my December bill, they deducted that $800 or so off my total bill for that month. I paid every month in full, had no late charges, no annual fee, and no hidden costs. I now seek out ways to use my AMEX card instead of my checking account. For example, verizon wireless and comcast accept credit card payments for monthly bills. In addition, I am disappointed when I can't use my AMEX blue cash card for a payment( insurance companies: Travelers and Progressive, State Tax Payment, select online companies, etc) |
Thanks for the advice guys. I am the new owner of a Chase Freedom card. Although I always pay the credit card bill in full every month, people spend more when using a card than with cash. We all should keep this in mind.
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I like Best Buy Reward Zone Master Card. You get points on anything you buy.
1,000 points = $20 gift card. With specials, you can get double, triple or quadruple points. Even more on very special occasions. |
I also recently picked up the Chase Freedom card after opening new checking and savings accounts with Chase. Their online system works well in that I can view credit card activity/statements at the same time I view my checking, and can do instant transfers between accounts/cards. The card is supposed to be switching to 3% in the top 5 categories in the near future, too.
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nothing to say
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