Comments on: Finding The Best Credit Card For You (And It’s Not The Same One For Everyone) http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/ Simple, applicable personal finance advice for the modern world Mon, 15 Mar 2010 11:40:50 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Titika http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/comment-page-1/#comment-62482 Titika Sun, 26 Aug 2007 20:20:46 +0000 http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/#comment-62482 As several others have said, credit cards can be useful if you are careful to avoid unnecessary purchases, pay them off every month, and have ones that don't charge fees. I used to use debit exclusively, but have recently resumed using my credit card for regular purchases because of the rewards. I am frugal by nature, but make sure to keep myself in line by recording the credit card purchase in my check register immediately (with a CC notation by it) so I always know I have the money to pay it off, and then I go to the card's website and pay it off approximately once a week. As several others have said, credit cards can be useful if you are careful to avoid unnecessary purchases, pay them off every month, and have ones that don’t charge fees. I used to use debit exclusively, but have recently resumed using my credit card for regular purchases because of the rewards. I am frugal by nature, but make sure to keep myself in line by recording the credit card purchase in my check register immediately (with a CC notation by it) so I always know I have the money to pay it off, and then I go to the card’s website and pay it off approximately once a week.

]]> By: amanda http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/comment-page-1/#comment-39203 amanda Mon, 25 Jun 2007 22:04:37 +0000 http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/#comment-39203 Instead of opting for a card with 1% cash back rewards, I got one through Upromise that offers 1% back towards my student loans. In the past few months, I've earned about $50 towards my loans. Not a huge amount but a great way to make business trips (flights, hotels, etc.) work for me. Instead of opting for a card with 1% cash back rewards, I got one through Upromise that offers 1% back towards my student loans. In the past few months, I’ve earned about $50 towards my loans. Not a huge amount but a great way to make business trips (flights, hotels, etc.) work for me.

]]> By: Bill http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/comment-page-1/#comment-38925 Bill Mon, 25 Jun 2007 04:53:42 +0000 http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/#comment-38925 My vote - Pursue the 0% cards and use as a financial tool. God bless the folks who can pay off their cards. Goals, Goals, Goals. My vote – Pursue the 0% cards and use as a financial tool. God bless the folks who can pay off their cards. Goals, Goals, Goals.

]]> By: ccboffin http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/comment-page-1/#comment-38564 ccboffin Sun, 24 Jun 2007 12:00:48 +0000 http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/#comment-38564 I must respond to Tyler's comment about getting a credit card to boost your FICO score. Seriously, as long as you utilize your credit sensibly, credit cards can be a very useful tool. (Provided there is a grace period, no annual fee or usage fee) As for your FICO score, its an essential part of 21st century life and will continue to be more important. FICO is not an "I love debt" score, its a very sound measurement of your credit utilization and history - to wit, your character. You may not *need* to borrow money, and let's all hope that's the case. But if you do, does it not make sense to get the best possible deal if you do? I must respond to Tyler’s comment about getting a credit card to boost your FICO score.

Seriously, as long as you utilize your credit sensibly, credit cards can be a very useful tool.
(Provided there is a grace period, no annual fee or usage fee)

As for your FICO score, its an essential part of 21st century life and will continue to be more important.

FICO is not an “I love debt” score, its a very sound measurement of your credit utilization and history – to wit, your character.

You may not *need* to borrow money, and let’s all hope that’s the case. But if you do, does it not make sense to get the best possible deal if you do?

]]> By: Lorie http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/comment-page-1/#comment-38195 Lorie Sat, 23 Jun 2007 12:39:26 +0000 http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/#comment-38195 I think of credit cards as necessary financial tools. In fact, when my daughter turned 16 I helped her get her first credit card so that she could establish her own FICO score. You have to have self accountablity with CC's just like anything else in life. If you don't have that then you really shouldn't have one(credit card). I don't carry a balance with my cards, as soon as the bill comes in, it is paid in full. My card of choice is my Capital One card with a 6.9% finance charge. I think of credit cards as necessary financial tools. In fact, when my daughter turned 16 I helped her get her first credit card so that she could establish her own FICO score. You have to have self accountablity with CC’s just like anything else in life. If you don’t have that then you really shouldn’t have one(credit card).

I don’t carry a balance with my cards, as soon as the bill comes in, it is paid in full. My card of choice is my Capital One card with a 6.9% finance charge.

]]> By: martha in mobile http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/comment-page-1/#comment-38182 martha in mobile Sat, 23 Jun 2007 11:34:04 +0000 http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/#comment-38182 I agree that it all has to do with your spendy-style. I became disciplined with credit cards only because I wanted to live up to my new husband's absurdly high opinion of me -- that was 15 years ago, so now it's a habit. We use a 1% cash back (starting with the first dollar), no fee credit card. The interest rate? Who knows? We don't carry a balance, so it's not relevant. What is relevant is that we have received over $3,000 over the past several years. It's not a whole lot, but it is nice. I agree that it all has to do with your spendy-style. I became disciplined with credit cards only because I wanted to live up to my new husband’s absurdly high opinion of me — that was 15 years ago, so now it’s a habit. We use a 1% cash back (starting with the first dollar), no fee credit card. The interest rate? Who knows? We don’t carry a balance, so it’s not relevant. What is relevant is that we have received over $3,000 over the past several years. It’s not a whole lot, but it is nice.

]]> By: Rob in Madrid http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/comment-page-1/#comment-38122 Rob in Madrid Sat, 23 Jun 2007 07:04:53 +0000 http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/#comment-38122 When my Wife and I moved to Madrid from Germany last year we made the decision not to take any credit (other than a corporate Amex which she needs for traveling). Some people can handle credit, others can't. We are defiantly in the latter. We've had consumer debt for years and this finally gave us an opportunity to finally start over fresh and I don’t' want to start out by digging our selves in a hole again. Very very few people are disciplined enough to pay to pay the balance off monthly. Why put yourself in harms way. I had a family member who converted their mortgage to a line of credit 10 years ago to save 3% a year and just hit the financial wall; they came very close to losing the house they've lived in for 25 years. I've been telling him for years that lines of credit are dangerous things and he keeps telling me that the interest rate is much lower on a LofC than a regular mortgage. This is becoming quite common in Canada as the banks have aggressively promoted mortgage backed lines of credit. Unless you are very disciplined and naturally frugal don’t put your self in harms way. We've had consumer debt for years and this finally gave us an opportunity to finally start over fresh. When my Wife and I moved to Madrid from Germany last year we made the decision not to take any credit (other than a corporate Amex which she needs for traveling). Some people can handle credit, others can’t. We are defiantly in the latter. We’ve had consumer debt for years and this finally gave us an opportunity to finally start over fresh and I don’t’ want to start out by digging our selves in a hole again.

Very very few people are disciplined enough to pay to pay the balance off monthly. Why put yourself in harms way. I had a family member who converted their mortgage to a line of credit 10 years ago to save 3% a year and just hit the financial wall; they came very close to losing the house they’ve lived in for 25 years. I’ve been telling him for years that lines of credit are dangerous things and he keeps telling me that the interest rate is much lower on a LofC than a regular mortgage. This is becoming quite common in Canada as the banks have aggressively promoted mortgage backed lines of credit.

Unless you are very disciplined and naturally frugal don’t put your self in harms way.

We’ve had consumer debt for years and this finally gave us an opportunity to finally start over fresh.

]]> By: Tao Jones http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/comment-page-1/#comment-38045 Tao Jones Sat, 23 Jun 2007 02:03:12 +0000 http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/#comment-38045 No credit cards = no temptation to do stupid things with credit cards. I'm a "spendy-natured" person, so just like a former alcoholic won't keep a bottle of booze around -- I won't keep a credit card around. No credit cards = no temptation to do stupid things with credit cards.

I’m a “spendy-natured” person, so just like a former alcoholic won’t keep a bottle of booze around — I won’t keep a credit card around.

]]> By: A Tentative Personal Finance Blog http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/comment-page-1/#comment-38004 A Tentative Personal Finance Blog Fri, 22 Jun 2007 23:23:15 +0000 http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/#comment-38004 Total agree that credit cards are not the devil of people. It's just another financial tool you can use to get rewards for spending. Total agree that credit cards are not the devil of people. It’s just another financial tool you can use to get rewards for spending.

]]> By: Dave http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/comment-page-1/#comment-37984 Dave Fri, 22 Jun 2007 22:45:07 +0000 http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/#comment-37984 I've never paid a cent in interest (or fees) to a credit card company, and have been paid $400 cash in rewards. It's just important to develop sound financial habits BEFORE you get a credit card, rather than after. I’ve never paid a cent in interest (or fees) to a credit card company, and have been paid $400 cash in rewards.

It’s just important to develop sound financial habits BEFORE you get a credit card, rather than after.

]]> By: Dean http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/comment-page-1/#comment-37951 Dean Fri, 22 Jun 2007 20:52:47 +0000 http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/#comment-37951 I'm surprised that no one has mentioned annual fees. There are many cards out there that charge these and there are many that do not. A good way to save money is to avoid those cards that charge them. I’m surprised that no one has mentioned annual fees. There are many cards out there that charge these and there are many that do not. A good way to save money is to avoid those cards that charge them.

]]> By: 60 in 3 http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/comment-page-1/#comment-37947 60 in 3 Fri, 22 Jun 2007 20:33:18 +0000 http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/#comment-37947 Tyler, I've had credit cards for 15 years now and never carried a balance. That's just part of being financially responsible for me. Also, people might need a credit score for other reasons. For example, some jobs check on your credit. If you want to rent an apartment, you might need good credit. It's not just for buying stuff. Credit cards are actually a wise financial tool if used correctly. You can earn rewards plus they're an interest free loan for 30 days. Again, assuming you pay off the balance each time. Finally, watch out for cards with rewards programs that will encourage you to spend more. I have an Amazon rewards card and I finally decided to stop using it as my main card since the thought of "ooh, if I buy this I can get another $5 free on amazon" was too much of a temptation. For me, the best reward card is one with a simple cash back program. I don't know what my spending habits will be years from now, and I intend to hold on to these cards for years. So I don't really target any specific spending area. Gal Tyler, I’ve had credit cards for 15 years now and never carried a balance. That’s just part of being financially responsible for me.

Also, people might need a credit score for other reasons. For example, some jobs check on your credit. If you want to rent an apartment, you might need good credit. It’s not just for buying stuff.

Credit cards are actually a wise financial tool if used correctly. You can earn rewards plus they’re an interest free loan for 30 days. Again, assuming you pay off the balance each time.

Finally, watch out for cards with rewards programs that will encourage you to spend more. I have an Amazon rewards card and I finally decided to stop using it as my main card since the thought of “ooh, if I buy this I can get another $5 free on amazon” was too much of a temptation.

For me, the best reward card is one with a simple cash back program. I don’t know what my spending habits will be years from now, and I intend to hold on to these cards for years. So I don’t really target any specific spending area.

Gal

]]> By: Ira http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/comment-page-1/#comment-37944 Ira Fri, 22 Jun 2007 20:29:20 +0000 http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/#comment-37944 I get really annoyed by people who say that credit cards automatically make you in debt. I use my credit card all the time, but I have never made a purchase on one that I didn't have the cash for. If I want to buy something, I think about what it costs the same way no matter how I pay. "No debt is the single best way to live life free." I don't consider myself as having debt. I get really annoyed by people who say that credit cards automatically make you in debt. I use my credit card all the time, but I have never made a purchase on one that I didn’t have the cash for. If I want to buy something, I think about what it costs the same way no matter how I pay. “No debt is the single best way to live life free.” I don’t consider myself as having debt.

]]> By: Michael http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/comment-page-1/#comment-37942 Michael Fri, 22 Jun 2007 20:25:27 +0000 http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/#comment-37942 One reason might be for balance transfers. If you're trying to pay off cards those 0% transfer options are really nice. Transfer the balance, close the old card, and pay it off. One reason might be for balance transfers. If you’re trying to pay off cards those 0% transfer options are really nice.

Transfer the balance, close the old card, and pay it off.

]]> By: Chris Burgwald http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/comment-page-1/#comment-37936 Chris Burgwald Fri, 22 Jun 2007 19:53:31 +0000 http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/#comment-37936 I can't think of a reason why anyone who would answer the question "Will you likely carry a balance on the card?" affirmatively should get a credit card at all... anyone know of a reason? I can’t think of a reason why anyone who would answer the question “Will you likely carry a balance on the card?” affirmatively should get a credit card at all… anyone know of a reason?

]]> By: Tyler http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/comment-page-1/#comment-37935 Tyler Fri, 22 Jun 2007 19:48:48 +0000 http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/#comment-37935 David, yes it's true it's money for nothing. But slip once and the interest you must pay will diminish all those returns you made on your card. David, yes it’s true it’s money for nothing. But slip once and the interest you must pay will diminish all those returns you made on your card.

]]> By: David Hunter http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/comment-page-1/#comment-37934 David Hunter Fri, 22 Jun 2007 19:44:08 +0000 http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/#comment-37934 In contrast to Tyler I will say, if you can be dedicated to paying it off each month (Hint your available credit should not be higher than your monthly salary... This is just asking for trouble.) Then why not get a cashback credit card. It is literally money for nothing, although you do have to be careful that you aren't being charged extra for the credit card transactions, which for example cheap airlines in the UK tend to do. In contrast to Tyler I will say, if you can be dedicated to paying it off each month (Hint your available credit should not be higher than your monthly salary… This is just asking for trouble.) Then why not get a cashback credit card. It is literally money for nothing, although you do have to be careful that you aren’t being charged extra for the credit card transactions, which for example cheap airlines in the UK tend to do.

]]> By: Tyler http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/comment-page-1/#comment-37922 Tyler Fri, 22 Jun 2007 19:07:34 +0000 http://www.thesimpledollar.com/2007/06/22/finding-the-best-credit-card-for-you-and-its-not-the-same-one-for-everyone/#comment-37922 I just got my first credit last month (I am 24 and own a house). For me, I wanted to "make my FICO higher!" I am now realizing how stupid this is. For those that get a credit card to just "boost" your FICO score, please reconsider. FICO score is an I-Love-Debt score. You honestly don't need a FICO for anything, including a mortgage! If you want to buy a home, do so with a mortgage company and offers MANUAL UNDERWRITTEN mortgages. If you want a car, save up for one! Want that diamond necklace? Save up for it! For me, no debt is the single best way to live life free. Chasing a "few pennies" on every dollar spent with reward cards is not worth it for me. Instead of trying to get the free money from credit card companies, I am dedicating my time to finding more ways to earn money. Right now, it's working. Also, borrowing money that I really do not need does not make sense. I just got my first credit last month (I am 24 and own a house). For me, I wanted to “make my FICO higher!” I am now realizing how stupid this is.

For those that get a credit card to just “boost” your FICO score, please reconsider. FICO score is an I-Love-Debt score. You honestly don’t need a FICO for anything, including a mortgage! If you want to buy a home, do so with a mortgage company and offers MANUAL UNDERWRITTEN mortgages. If you want a car, save up for one! Want that diamond necklace? Save up for it! For me, no debt is the single best way to live life free.

Chasing a “few pennies” on every dollar spent with reward cards is not worth it for me. Instead of trying to get the free money from credit card companies, I am dedicating my time to finding more ways to earn money. Right now, it’s working. Also, borrowing money that I really do not need does not make sense.

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