So, were going on a cruise at Thanksgiving. Cruise reccomended putting a credit card on file, as they put a large hold on debit cards.
I havent had a credit card since shortly after i got sober. Wife has never had one.
Im thinking that ive heard radio ads for cashback, 0 interest stuff. Im trying to find the best way for someone else's money to work for me.
We will pay off as soon as bill comes, and probably cancel it at that time.
So, who, what, where and why?
Start at www.nerdwallet.com
And I would seriously consider keeping it afterward. I would never use my check card or bank account to make an online purchase. Credit Cards offer all kinds of buyer protection and some cards will give you 2% back on every purchase.
If you're disciplined enough to get sober (congratulations!) you're disciplined enough to use a credit card and reap the rewards.
I've long been a fan of Discover, but there are a number of good cards, including Capital One.
Since I've got the Best Western rewards mastercard because the challenge host hotel is a BW, I've had over a dozen free nights in hotels from the rewards. I would definitely get a card and hang onto it, I have several with really high limits that I only use when I get the "your account is getting closed due to inactivity" message because having a lot of available credit is good for your score, it makes the debt to credit ratio better when you have a mortgage or car loan
1988RedT2 said:I've long been a fan of Discover, but there are a number of good cards, including Capital One.
Saying "Capital One" is a good card, doesn't really mean anything. Each big financial institution that offers credit cards, offer multiple different ones based on what you want. Travel rewards? Flight miles? Cash back? Annual fee or no annual fee? etc
Patrick said:Since I've got the Best Western rewards mastercard because the challenge host hotel is a BW, I've had over a dozen free nights in hotels from the rewards. I would definitely get a card and hang onto it, I have several with really high limits that I only use when I get the "your account is getting closed due to inactivity" message because having a lot of available credit is good for your score, it makes the debt to credit ratio better when you have a mortgage or car loan
This. Between my 4 cards I have enough limit to buy almost 3 new Miatas. We don't use it, we use one card for everything. Utilities, groceries, fuel, going out, etc, and get the 2% cash back. When you spend thousands per month on it, it's not inconsequential.
I have one card with a $6k limit (edit: I roll cash back. I get hotel points another way but recommend them) and a score of 805. Use it but pay it off damn near every month. Maybe all debt is mid 90k.
I'm a player, but I hate the game.
My primary is a Amazon rewards card through Chase. 3% back on Amazon and a bunch of other things.
Edit: I also have a Ink Business Unlimited card from Chase for my business. It pays 1.5%.
1988RedT2 said:I've long been a fan of Discover, but there are a number of good cards, including Capital One.
Even with a 20 year perfect payment history and a credit score over 800, discover *dropped* my moms rate to only 26%. I still run into places that won't take it because of the fees they charge per swipe for the business too.
Capital one helped me ruin my credit at 18, so I'm loathe to recommend them, but they have been sending some very attractive offers lately, and they weren't bad to deal with, I was just 18 and stupid.
z31maniac said:Start at www.nerdwallet.com
And I would seriously consider keeping it afterward. I would never use my check card or bank account to make an online purchase. Credit Cards offer all kinds of buyer protection and some cards will give you 2% back on every purchase.
If you're disciplined enough to get sober (congratulations!) you're disciplined enough to use a credit card and reap the rewards.
Debit cards are for bank identity verification and ATM access when necessary, and nothing else unless you like risking having all of your accounts drained.
We primarily use two cards:
American Express cash back blue. It costs $79/yr, but due to 6% cash back on gas and groceries, it's worth a lot back to us every year.
Every other purchase goes on the CITI double cash which pays 2% cash back on everything.
All purchases that can be put on cards are, and I have both set up automatically pay the full balance every month. It's worth over $1k per year for us using these two cards.
If you're going to pay it off, see if they take Amex and just get one of them.
What do you purchase with it and what do you want to get back from it?
some cards are better for travel some are better for groceries some for gas.
my penfed 5% cash back on gas card (no longer offered) just gives a statement credit every month.
but something like the chase freedom earns points that you redeem for cash or travel or merchandise.
Unless you are keeping a balance the 0% interest does not matter. Since you say you are planning to pay it off every month the interest rate does not matter.
figure out what categories you would spend on the credit card or if you just want general cash back at a lower rate for all purchases. Check out the card finder on the nerd wallet site.
All the airlines offer huge miles for signing up. You make a purchase in the first month and pay the first year fee and you get two round trips anywhere in the continental US. You can cancel it after if you want.
In reply to bearmtnmartin (Forum Supporter) :
I have one with American Airlines. Don't cancel because you get points and mileage using it with their partners too. Hotels, car rentals etc
RevRico said:1988RedT2 said:I've long been a fan of Discover, but there are a number of good cards, including Capital One.
Even with a 20 year perfect payment history and a credit score over 800, discover *dropped* my moms rate to only 26%. I still run into places that won't take it because of the fees they charge per swipe for the business too.
Capital one helped me ruin my credit at 18, so I'm loathe to recommend them, but they have been sending some very attractive offers lately, and they weren't bad to deal with, I was just 18 and stupid.
I'm not sure what issue you have with your mothers experience on % rate? CC rates are always incredibly high, because it's unsecured debt. My Chase Sapphire card is around 22% (I have something stupid like an 830 score) and I have a $30k limit on that card. That's why we rarely keep a balance on it.
But you're follow up paragraph says "Capital One helped you ruin your credit at 18" and then you say "I was just 18 and stupid." I'm confused by that.
I use Discover. I got hosed by Chase about 15 years ago, and swore off credit cards. Bro talked me into getting a Discover. I pay it off every month. I've earned about $100 cash back this year. Not much, but its something. I would have just used my debit card with zero money back otherwise.
In reply to bearmtnmartin (Forum Supporter) :
z31maniac said:RevRico said:1988RedT2 said:I've long been a fan of Discover, but there are a number of good cards, including Capital One.
Even with a 20 year perfect payment history and a credit score over 800, discover *dropped* my moms rate to only 26%. I still run into places that won't take it because of the fees they charge per swipe for the business too.
Capital one helped me ruin my credit at 18, so I'm loathe to recommend them, but they have been sending some very attractive offers lately, and they weren't bad to deal with, I was just 18 and stupid.
I'm not sure what issue you have with your mothers experience on % rate? CC rates are always incredibly high, because it's unsecured debt. My Chase Sapphire card is around 22% (I have something stupid like an 830 score) and I have a $30k limit on that card. That's why we rarely keep a balance on it.
But you're follow up paragraph says "Capital One helped you ruin your credit at 18" and then you say "I was just 18 and stupid." I'm confused by that.
Compared to all the other card offers we receive which are less than half that 26%, it seems unnecessarily high, especially with such an extended history. A store card, like my Lowes credit card, it makes sense, but for a major provider, it doesn't. Do I expect it to be the 5% my secured card from my credit union is? No, because that's MY money on the secured card, but anyone can get a better rate than 26% pretty much anywhere else. Could probably get a better rate as a NEW customer than a continued one, like cable.
My beef with capital one was every time i called to raise my limit, they did it. Good business for them, bad for anyone who went to an American high school and never got a lesson in credit, IE me.
Checking credit karma, my most attractive offer is a Chase Sapphire, at 0% for the first year on purchases and transfers then only 8% Apr after that, on a $10k limit. Might actually be worth checking there first, especially if you haven't used your credit in a while.
I use my Discover for pretty much every purchase that will accept it and pay it off each month. I do this mainly for the cash-back, which I usually use for Amazon purchases. The bill each month is usually substantial (especially when I'm traveling for work), but the number doesn't surprise me. Fortunately, my employer reimburses expense reports pretty quickly, so it's rare I'm not paid for an expense before I have to pay the CC bill.
I haven't carried a balance in 20 years, so I honestly don't know what the interest rate is. Probably somewhere in the mid-20's.
My beef with capital one was every time i called to raise my limit, they did it. Good business for them, bad for anyone who went to an American high school and never got a lesson in credit, IE me.
That sure sounds like it's your parents fault, or your schools fault, or "surprise" your fault.
Nah, blame Capital One, must be their fault for giving you the opportunity to be responsible.
I did not realize there were so many private school/non American school people in the USA because I know there are many with good credit here
If you do Costco or Sam's they both offer cash back cards. We've been using the Sam's MC for the last 15 or so years. Used to get a nice check in late Feb for $7-800 of our money back. We use it to pay as many bills as possible and all food/gas/purchases then pay in full each month.
This also gives you a nice cutout for fraud. CC are more likely to write off a stolen card and charges than a bank card tied to your account. Never had an issue when the cards were stolen about them cancelling the card, removing the charges and issuing new cards.
Just make sure it offers rewards. We have a VISA through our local bank. Costs us $50 a year. We have over $700 cashback so far in 2022. And as you said, pay it off every month.
Ian F (Forum Supporter) said:I haven't carried a balance in 20 years, so I honestly don't know what the interest rate is. Probably somewhere in the mid-20's.
So much this. Rate doesn't matter if you pay in full each month.
The only cards I carry a balance on have interest free promotions going on
Steve_Jones said:My beef with capital one was every time i called to raise my limit, they did it. Good business for them, bad for anyone who went to an American high school and never got a lesson in credit, IE me.
That sure sounds like it's your parents fault, or your schools fault, or "surprise" your fault.
Nah, blame Capital One, must be their fault for giving you the opportunity to be responsible.I did not realize there were so many private school/non American school people in the USA because I know there are many with good credit here
That was very helpful.
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