Credit Card Discussion 2015: Best Reward, 0 Intro APR, Balance Transfers

[Benedict1957]

I've never met anyone in the upper middle class or above who only uses debit cards and cash. They don't exist. Once you've reached a certain level of affluence, it's mainstream to use credit cards.

The only exception I can think of are drug dealers.

[TXSTYLE]

Originally Posted by fecurtis

Good for you, if I'm going to buy day to day things that I need anyway, may as well earn airline miles and/or cash back while I do it.

Keep paying with debit, I'll get something in return for making purchases I was going to make anyway. Another perk to credit cards over debit cards, I've yet to find a debit card that doesn't charge you foreign transaction fees while on vacation (Capital One credit cards, for example, do not). Have a fraudulent charge that was approved? It's much easier getting that sorted out with a credit card vs. a debit card. Like with all things credit, it's just a matter of not being an idiot and understanding that it's not "free money". If you're nervous about not being able to show personal restraint, then yes it's reasonable to stick with debit, or if you're just starting out building your credit (doesn't seem like you're one of those people), a secured credit card is a good way to go. Rule of thumb for me, if I can't pull out my debit card and pay for it right there, then I'm sure as hell aren't charging it. Also keeping my credit used vs. credit limit under 15% for me is another rule I stick buy. Using the two rules in tandem keeps you out of trouble. Those who get carried away from credit cards merely show a lack of fiscal responsibility.

To me it's stupid to pay full asking price for something using a debit card even if you got a .1% rebate from using a credit card (granted .1% cash back is a pretty crappy CC benefit, just using it for the sake of example). Why pay more if you don't have to? Any reasonable adult who tracks their finances can easily manage a credit card (I personally have 7...of those only 2-3 I actually use on a regular basis, I don't cancel the other ones though as it'll ding my score). How you can manage unsecured, revolving debt works can work wonders for you, even if you have largely secured, non-revolving debt reflected on your credit report/score. Outside of the airline miles/cash back, there's other benefits (aside from lack of foreign transaction fees). Cards can also give you added perks, such as an extra 1 year warranty on various electronic items above and beyond the standard manufacturer's warranty, additional rental car insurance free of charge (not to mention, to rent a car, you typically need a credit card, most places won't accept debit and if they do, they may require an extensive security deposit), there's also a perk to my Citi Diamond Preferred Card. If I purchase something and a month later that item from that same vendor is on sale for 50% off? Guess what? I call Citi, inform them, provide proof of the current sale going on, and I get that savings back as if I had bought that item on sale.

If you're responsible, credit offers several advantages over debit. Sounds like you just know a bunch of fiscally irresponsible, reckless, and immature people. I've saved tons of money by using credit cards over debit. I've had flights paid for just by doing shit like buying groceries I need. As for cancelling your Sleepy's account, it's because it was a new account. Your credit score is also a function of your longest active account, the longer you hold a card or account for, the more it hurts you if you cancel it. Reason being, if you've had a card for 10 years and still use it, that's just more history for reporting companies to rank your creditworthiness on.

OP to answer your question, American Express EveryDay card...the one you have pictured in your original post. The points you get are transferable to various airlines which gives tremendous return on airline miles and discount or free plane tickets.

I've heard nothing but great things about Chase Sapphire too. It does the same as above but has different airline partners. I've considered using the two in tandem but I don't think I spend enough money to make it worthwhile. You can get an EveryDay card that's free, Sapphire comes with an annual fee (first year free though).

Well stated sir.

[dreamingat30fps]

I just got the Capital One with the 2% cash back and loving it so far. I only use it for my business and before was using a Chase Ink with just 1% back. With their $250 bonus I already have $500 on my first statement.

I also have an AA Amex that gets miles, but honestly I don't travel enough to justify using it. I use it for personal stuff but not for the business. I have like 500,000 miles sitting there waiting until I actually have time to go somewhere.

[MidwestGolfBum]

I have a Amex Plat and Chase Sapphire Preferred cards. As KoJ said, I the Sapphire Preferred card offers almost all the same bennys as the Platinum card does so I will be dropping that down to a gold level. I have a few store cards that almost never get used save for the occasional purchase that I might make at that store, which typically gets me extra money off. The Points that I get on the Amex and Chase cards have paid for all of my personal vacations in the past 3 years. They are paid in full at the end of every month, and offer a nice protection if something breaks down the line since I can just call and they will replace the item at no cost to me, as an included part of the yearly fee.

[gatorfast]

Originally Posted by TXSTYLE

Far be it from me to even suggest one take on credit cards if they choose not to. Out of curiosity though, how do you handle things like car, home or other large purchases and obtain the lowest rates available?

Or rent a car, stay in a hotel, buy a plane ticket, etc. I dont understand how anyone can live a normal life without a credit card. But to answer the OP, I use the Amex blue preferred cash card. 6% cash back on groceries, 3% on gas and department stores, 1% everything else. As gas and groceries are my two largest expenses this works out very well. It has an annual fee (think its $75) but the card quickly pays for itself.

Also, its pretty silly to carry a balance in order to get line increases. You are just paying interest for no reason. Request an increase if you need it but right now you are paying for it via interest. I have never carried a balance on my card and Amex has taken it upon themselves to give me multiple line increases.

[TXSTYLE]

Originally Posted by gatorfast

Or rent a car, stay in a hotel, buy a plane ticket, etc. I dont understand how anyone can live a normal life without a credit card. But to answer the OP, I use the Amex blue preferred cash card. 6% cash back on groceries, 3% on gas and department stores, 1% everything else. As gas and groceries are my two largest expenses this works out very well. It has an annual fee (think its $75) but the card quickly pays for itself.

Also, its pretty silly to carry a balance in order to get line increases. You are just paying interest for no reason. Request an increase if you need it but right now you are paying for it via interest. I have never carried a balance on my card and Amex has taken it upon themselves to give me multiple line increases.

LOL forgot about that important aspect. However, with the advent of Visa/Mastercard Debit cards, that typically solves that.

[Whostheboss]

Originally Posted by JasonCSU

I thought we convinced you of the basic need for a CC and their benefits in this thread?

http://www.2addicts.com/forums/showthread.php?t=1076269

Originally Posted by P1et

We must have not done a very good job

Originally Posted by Benedict1957

This is the mentality of a financially illiterate person, unless you're just so ridiculously wealthy (I'm talking like $10 million+ minimum) that any pittance of a credit card reward or boost in FICO score simply does not matter for you.

Originally Posted by gatorfast

Or rent a car, stay in a hotel, buy a plane ticket, etc. I dont understand how anyone can live a normal life without a credit card. .

The Debit card i have from my bank can also be used as a CC. It has a MasterCard logo on it. So that's how i get plane tickets, hotels, rentals etc. However, When i use it at stores/gas station, it asks me if i want to use as Credit or Debit. I always use Debit. I've probably used it as Credit maybe 2x.

Edited.

Trust me i've thought about opening up a legit CC but i keep having draw backs. So i think i really need to discipline myself and set mental rules before i pull the trigger.

Originally Posted by fecurtis

Good for you, if I'm going to buy day to day things that I need anyway, may as well earn airline miles and/or cash back while I do it.

Keep paying with debit, I'll get something in return for making purchases I was going to make anyway. Another perk to credit cards over debit cards, I've yet to find a debit card that doesn't charge you foreign transaction fees while on vacation (Capital One credit cards, for example, do not). Have a fraudulent charge that was approved? It's much easier getting that sorted out with a credit card vs. a debit card. Like with all things credit, it's just a matter of not being an idiot and understanding that it's not "free money". If you're nervous about not being able to show personal restraint, then yes it's reasonable to stick with debit, or if you're just starting out building your credit (doesn't seem like you're one of those people), a secured credit card is a good way to go. Rule of thumb for me, if I can't pull out my debit card and pay for it right there, then I'm sure as hell aren't charging it. Also keeping my credit used vs. credit limit under 15% for me is another rule I stick buy. Using the two rules in tandem keeps you out of trouble. Those who get carried away from credit cards merely show a lack of fiscal responsibility.

To me it's stupid to pay full asking price for something using a debit card even if you got a .1% rebate from using a credit card (granted .1% cash back is a pretty crappy CC benefit, just using it for the sake of example). Why pay more if you don't have to? Any reasonable adult who tracks their finances can easily manage a credit card (I personally have 7...of those only 2-3 I actually use on a regular basis, I don't cancel the other ones though as it'll ding my score). How you can manage unsecured, revolving debt works can work wonders for you, even if you have largely secured, non-revolving debt reflected on your credit report/score. Outside of the airline miles/cash back, there's other benefits (aside from lack of foreign transaction fees). Cards can also give you added perks, such as an extra 1 year warranty on various electronic items above and beyond the standard manufacturer's warranty, additional rental car insurance free of charge (not to mention, to rent a car, you typically need a credit card, most places won't accept debit and if they do, they may require an extensive security deposit), there's also a perk to my Citi Diamond Preferred Card. If I purchase something and a month later that item from that same vendor is on sale for 50% off? Guess what? I call Citi, inform them, provide proof of the current sale going on, and I get that savings back as if I had bought that item on sale.

If you're responsible, credit offers several advantages over debit. Sounds like you just know a bunch of fiscally irresponsible, reckless, and immature people. I've saved tons of money by using credit cards over debit. I've had flights paid for just by doing shit like buying groceries I need. As for cancelling your Sleepy's account, it's because it was a new account. Your credit score is also a function of your longest active account, the longer you hold a card or account for, the more it hurts you if you cancel it. Reason being, if you've had a card for 10 years and still use it, that's just more history for reporting companies to rank your creditworthiness on.

Yes! And that is the reason why they got it in the first place. They thought it was 'free money'.

"Rule of thumb for me, if I can't pull out my debit card and pay for it right there, then I'm sure as hell aren't charging it."
This is very inspiring. Thanks.
JasonCSU and P1et have also given me lots of educational thoughts.

[P1]

Originally Posted by Whostheboss

The Debit card i have from my bank can also be used as a CC. It has a MasterCard logo on it. So that's how i get plane tickets, hotels, rentals etc. However, When i use it at stores/gas station, it asks me if i want to use as Credit or Debit. I always use Debit. I've probably used it as Credit maybe 2x.

Edited.

Trust me i've thought about opening up a legit CC but i keep having draw backs. So i think i really need to discipline myself and set mental rules before i pull the trigger.




Yes! And that is the reason why they got it in the first place. They thought it was 'free money'.

"Rule of thumb for me, if I can't pull out my debit card and pay for it right there, then I'm sure as hell aren't charging it."
This is very inspiring. Thanks.
JasonCSU and P1et have also given me lots of educational thoughts.

If you're worried that you'll start charging more than you're comfortable with, then you can just get a credit card with a really low limit!

[fecurtis]

Originally Posted by P1et

If you're worried that you'll start charging more than you're comfortable with, then you can just get a credit card with a really low limit!

I'd advise against that. Since credit utilization plays a big role in calculating your score, if you get a low limit, you can really hurt your score.

So, if you get a card with a $500 limit, and you spend $250/month, that's a 50% credit card utilization, not good. Best to stay below 20% or so. So even though most anyone should be able to not get over their head in a card with only a $500 limit, you'll get killed on credit utilization which will hurt your score.

[P1]

Originally Posted by fecurtis

I'd advise against that. Since credit utilization plays a big role in calculating your score, if you get a low limit, you can really hurt your score.

So, if you get a card with a $500 limit, and you spend $250/month, that's a 50% credit card utilization, not good. Best to stay below 20% or so. So even though most anyone should be able to not get over their head in a card with only a $500 limit, you'll get killed on credit utilization which will hurt your score.

"really low" is all relative. How about $2,500 to start off with?

[fecurtis]

Originally Posted by P1et

"really low" is all relative. How about $2,500 to start off with?

True, $2,500 isn't bad.

[Templar]

I tend to use credit to take advantage of the "12 months interest free" type of deals. Why? Because it actually is FREE MONEY. I can certainly afford what I am buying, so that's not the problem. I laugh at the misconception that if you need to charge to a credit card, you can't afford it. Wrong. Most people don't "need" to use a CC, they "want" to for benefits. Sure, if you're stupid and don't meet the requirements (i.e. minimum payments each month, paid off in X months) then you'll get slammed with an interest bill. But why not take advantage of it if you KNOW you can make the monthly payments?

Hell, when I bought my house and me and my then girlfriend (now wife) moved in together, we needed some more furniture to finish furnishing the house. I didn't want anything super nice or expensive because we have too many dogs. Eventually our spare living room/rec room will have nicer stuff since the dogs don't go in there, but for now we wanted some cheaper stuff. I went to Rooms to Go, found a nice dining room set and bedroom set, got 2 years interest free on it (with a good credit score) and done. They are both paid off now and I didn't pay a single cent in interest.

Bottom line is that credit is certainly not a bad thing, it's quite the opposite. You just can't be lazy/stupid/irresponsible with it. Last thing I charged to credit was my new Wii U and a few games to my Best Buy card. Had plenty of cash to pay for it. Instead, I got some cash back and don't have to have it paid for until June (and no interest).

[SunnyD]

Originally Posted by fecurtis

Good for you, if I'm going to buy day to day things that I need anyway, may as well earn airline miles and/or cash back while I do it.

Keep paying with debit, I'll get something in return for making purchases I was going to make anyway. Another perk to credit cards over debit cards, I've yet to find a debit card that doesn't charge you foreign transaction fees while on vacation (Capital One credit cards, for example, do not). Have a fraudulent charge that was approved? It's much easier getting that sorted out with a credit card vs. a debit card. Like with all things credit, it's just a matter of not being an idiot and understanding that it's not "free money". If you're nervous about not being able to show personal restraint, then yes it's reasonable to stick with debit, or if you're just starting out building your credit (doesn't seem like you're one of those people), a secured credit card is a good way to go. Rule of thumb for me, if I can't pull out my debit card and pay for it right there, then I'm sure as hell aren't charging it. Also keeping my credit used vs. credit limit under 15% for me is another rule I stick buy. Using the two rules in tandem keeps you out of trouble. Those who get carried away from credit cards merely show a lack of fiscal responsibility.

To me it's stupid to pay full asking price for something using a debit card even if you got a .1% rebate from using a credit card (granted .1% cash back is a pretty crappy CC benefit, just using it for the sake of example). Why pay more if you don't have to? Any reasonable adult who tracks their finances can easily manage a credit card (I personally have 7...of those only 2-3 I actually use on a regular basis, I don't cancel the other ones though as it'll ding my score). How you can manage unsecured, revolving debt works can work wonders for you, even if you have largely secured, non-revolving debt reflected on your credit report/score. Outside of the airline miles/cash back, there's other benefits (aside from lack of foreign transaction fees). Cards can also give you added perks, such as an extra 1 year warranty on various electronic items above and beyond the standard manufacturer's warranty, additional rental car insurance free of charge (not to mention, to rent a car, you typically need a credit card, most places won't accept debit and if they do, they may require an extensive security deposit), there's also a perk to my Citi Diamond Preferred Card. If I purchase something and a month later that item from that same vendor is on sale for 50% off? Guess what? I call Citi, inform them, provide proof of the current sale going on, and I get that savings back as if I had bought that item on sale.

If you're responsible, credit offers several advantages over debit. Sounds like you just know a bunch of fiscally irresponsible, reckless, and immature people. I've saved tons of money by using credit cards over debit. I've had flights paid for just by doing shit like buying groceries I need. As for cancelling your Sleepy's account, it's because it was a new account. Your credit score is also a function of your longest active account, the longer you hold a card or account for, the more it hurts you if you cancel it. Reason being, if you've had a card for 10 years and still use it, that's just more history for reporting companies to rank your creditworthiness on.

OP to answer your question, American Express EveryDay card...the one you have pictured in your original post. The points you get are transferable to various airlines which gives tremendous return on airline miles and discount or free plane tickets.

I've heard nothing but great things about Chase Sapphire too. It does the same as above but has different airline partners. I've considered using the two in tandem but I don't think I spend enough money to make it worthwhile. You can get an EveryDay card that's free, Sapphire comes with an annual fee (first year free though).

Let's say you have $5K cash to put down on a new car. Would you rather write the dealer a check and get nothing in return, or would you rather put it on a cash back card that yields 2% (Fidelity Amex, etc.) and get $100 back? You'll still pay the card off in full at the end of the month since you had the cash readily available anyway. Not sure how affluent you are, but I'll take the free $100 any day of the week.

[Billup]

I've pretty much based my life on my credit. Between the motorcycle, BMW, all brand new furniture in my apartment, and now getting approved for a house on my own...., if I didn't have established credit, I'd have terrible rates for my ages and most people probably wouldn't consider me for most things.

When I financed my furniture just to help with my score, 4 years no interest @ $2,500 with $750 down. I'll already have it damn near paid off and it's only been a year. What did I get from it? Extending payments out instead of up front, increased my credit score with payments before due and triple the minimum.


I got approved for my first home just the other day at a fixed rate of 4.09%, so that's a pretty good feeling.

[fecurtis]

Originally Posted by SunnyD

Let's say you have $5K cash to put down on a new car. Would you rather write the dealer a check and get nothing in return, or would you rather put it on a cash back card that yields 2% (Fidelity Amex, etc.) and get $100 back? You'll still pay the card off in full at the end of the month since you had the cash readily available anyway. Not sure how affluent you are, but I'll take the free $100 any day of the week.

I had a friend who bought a new Honda Accord and charged the entire thing to her credit card. The next day, went online and paid off the balance on her card for that exact same reason.

To a much lesser extent, I also pay my deposits/down payments with credit for the same reason.

[SLOWER]

Originally Posted by fecurtis

I had a friend who bought a new Honda Accord and charged the entire thing to her credit card. The next day, went online and paid off the balance on her card for that exact same reason.

To a much lesser extent, I also pay my deposits/down payments with credit for the same reason.

What did she pay for the car?

The past 3-4 cars I've bought I have put the down payment on the credit card. Usually the most they will allow is $5k as the dealership doesn't want to pay AMEX the 3% fee. Maybe the profit on the car was so great that they had the $700 or whatever card fee covered.

[M_Six]

Originally Posted by Templar

I tend to use credit to take advantage of the "12 months interest free" type of deals. Why? Because it actually is FREE MONEY. I can certainly afford what I am buying, so that's not the problem. I laugh at the misconception that if you need to charge to a credit card, you can't afford it. Wrong. Most people don't "need" to use a CC, they "want" to for benefits. Sure, if you're stupid and don't meet the requirements (i.e. minimum payments each month, paid off in X months) then you'll get slammed with an interest bill. But why not take advantage of it if you KNOW you can make the monthly payments?

Hell, when I bought my house and me and my then girlfriend (now wife) moved in together, we needed some more furniture to finish furnishing the house. I didn't want anything super nice or expensive because we have too many dogs. Eventually our spare living room/rec room will have nicer stuff since the dogs don't go in there, but for now we wanted some cheaper stuff. I went to Rooms to Go, found a nice dining room set and bedroom set, got 2 years interest free on it (with a good credit score) and done. They are both paid off now and I didn't pay a single cent in interest.

Bottom line is that credit is certainly not a bad thing, it's quite the opposite. You just can't be lazy/stupid/irresponsible with it. Last thing I charged to credit was my new Wii U and a few games to my Best Buy card. Had plenty of cash to pay for it. Instead, I got some cash back and don't have to have it paid for until June (and no interest).

I have an Amazon store card for just this reason. I could buy my cameras and lenses outright, but why? Better to put them on the store card and pay them off in a few months. Costs me nothing and evens out the cash flow.

[bkM3]

Originally Posted by KingOfJericho

Closing things like Best Buy cards shouldn't harm your credit in any significant way since they usually have such low limits. If you close a Chase Sapphire you've had for 10 years with a $20k limit, yeah, that'll fuck up your score. You'll lose the history of on-time payments and the ratio will get screwy.

its not just the credit limit, if you close one of your older cards than that negatively impacts the average age of your credit.

i currently use the chase sapphire preferred. rewards are awesome and transferring 1:1 to certain travel partners is huge. i was able to stay at $500/night resort for 15k points per night.

if you like to travel this one is hard to beat. well worth the $95 annual fee. it has already saved me $3500 from the one trip i booked with it using the sign up bonus plus some extra points.

also, they have an awesome rewards shopping portal where you can get up to 7x or 8x points from certain retailers just for clicking through their portal.

[W///]

I've got a few credits cards, but my favorite one is Chase Freedom card. 5% quarterly cash back on a few things that are really useful, such as gas, restaurants or Amazon.com.

[P1]

Originally Posted by W///

I've got a few credits cards, but my favorite one is Chase Freedom card. 5% quarterly cash back on a few things that are really useful, such as gas, restaurants or Amazon.com.

I agree with you...

[BimmerRookie]

I travel frequently and caryy SWA's rapid rewards premier and UA united explorer plus.

Both very simple cards with mainly travel rewards. Stay below 20% of your available credit limit and pay statements in full when they're due. Works for me.

[rjd598]

how's the citi double cash card working out for you? i was actually looking for a better rewards card and the citi has popped up more than once in recommendations