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Credit cards are more secure in that if there is a problem, the money isn't taken from your checking account regularly. I highly recommend a credit card as long as you pay the balance off each month. Look for one that can pay rewards, 1-5% of your purchases. A highly recommended card on this forum is the PenFed Visa Platinum card - if you meet the eligibility requirements to join PenFed credit union. Chase Freedom offers up to $300 just to get the card. Costco's Amex is also pretty good if you are a Costco member.
To be eligible to join Penfed you can join National Military Family Association (NMFA) for a one time $20 fee. I should mention that while Penfed is awesome, they can be difficult at first to get approved for credit products. I'd join and try anyway, they pull a hard inquiry to join but will use that pull for any credit application for the first 60 days so you might as well try for the credit card. They have two cards that both give 5%/5pts per dollar spent on gas. The points version also gives 3 points (currently a point is worth 1%) for grocery store purchases. This is great because most grocery stores sell gift cards for just about everything, so you get 3% for those too. Also, currently Penfed is offering 5k points for fist purchase and 20k points for spending $1000 in the first 3 months when you open the points version. That's $250 worth of visa gift cards!
Like I said, they may be finicky at first, but stick with them. I have great credit and they only gave me a $5k credit line at first. Within 2 years they upped that to $50k
Location: ๏̯͡๏﴿ Gwinnett-That's a Civil Matter-County
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Reasons you may want to get a credit card.
To earn rewards For the convenience of not having to record each debit card transaction To not worry about overdrawing on your bank account To help establish a credit history To have a backup in case your debit card stops working or if you lose your debit card. (A number of CC issuers will overnight you a new card if lost, plus the most you're liable for is $50 for a lost CC) To be able to make hotel and rental car reservations. (Many no longer authorize debit cards for reservations) Credit cards allow you to float some debt without paying interest if you pay on time.
Reasons you may not want to get a credit card,
If you don't have enough income to cover what you're charging. (The credit limits are usually way too generous) You will start to receive a lot of junk mail and credit card offers. If you aren't disciplined enough to pay the bill in full each month. Increases the risk of identity theft Your address will also end up on those people search sites, if it isn't already. There is a growing movement to avoid using credit as using credit means profit for wall street and many of the banks who many people blame for our economic crisis. It's one more bill you gotta pay on time each month.
I agree with the other posters that said there is no reason to stretch the payment over months just to increase your credit rating. That is a myth. I payoff my credit card bill every month since I've been 18, and my credit score was around 790 last time I looked. If you leave a balance, all that is doing is charging you a finance fee. The CC company loves that because they're already getting paid a swipe fee by the merchant when you used the card, and now you are also paying them to leave a balance.
As far as getting credit card offers, you can opt-out here: Prescreened Offers of Credit and Insurance After I submitted and then returned the paper form to opt-out permanently, my junk mail plummeted. If I want a new card, I'll go out looking for one. I don't need to be told all the great cards that I'm eligible for, because I don't care for opening up anymore lines of credit.
I'm not really sure how getting a credit card opens you up for identity debt. Care to explain?
You could actually have less bills to pay if you tell your utilities to auto-draft your credit card. I pay my gym/cell phone bills with my card automatically. That way I don't have to remember to pay them, they're just auto-billed to my credit card. I get the perk of earning more points that way too. I figure I'm already going to pay the bill, why not get something out of it?
From the following link...
"a credit card with a perfect payment history and no balance will not raise your credit score as much as a credit card with a low balance"... New Credit Advice: Dont Pay off Those Credit Cards!
From the following link...
"a credit card with a perfect payment history and no balance will not raise your credit score as much as a credit card with a low balance"... New Credit Advice: Dont Pay off Those Credit Cards!
If you pay your bill in full after the statement cuts but before the due date, a balance IS reported and you still pay no interest.
There is a big difference between allowing a balance to report to the credit bureau's and revolving a balance with the credit card company. The bureau's have no idea WHEN you paid that balance off. Could be the day after it was reported to them.
well i just got one today. i bank with wells fargo and was approved for one with a $3,000 limit. i've been doing monthly expense reports for my work credit card so i'm used to it now and felt comfortable with the idea.
anyway i intend to just use the car for gas, travel, and online purchases and pay it off monthly. however, i have no interest for the first 6 months so im wondering if paying off one of my student loans with it would be a good idea? i have $2,800 left on the loan and it has the highest interest rate of all my loans (6.8%). i've been throwing $500-$1,000 a month at it to finish it off so it should be done within 6 months anyway. it wouldn't save me a whole lot to save the interest for 3-6 months but it would be something. just wondering if there are any gimmicks or anything i need to watch out for should i choose to do this?
well i just got one today. i bank with wells fargo and was approved for one with a $3,000 limit. i've been doing monthly expense reports for my work credit card so i'm used to it now and felt comfortable with the idea.
anyway i intend to just use the car for gas, travel, and online purchases and pay it off monthly. however, i have no interest for the first 6 months so im wondering if paying off one of my student loans with it would be a good idea? i have $2,800 left on the loan and it has the highest interest rate of all my loans (6.8%). i've been throwing $500-$1,000 a month at it to finish it off so it should be done within 6 months anyway. it wouldn't save me a whole lot to save the interest for 3-6 months but it would be something. just wondering if there are any gimmicks or anything i need to watch out for should i choose to do this?
I wouldn't do it. Sounds like you are just a few months away from retiring that debt. Why stick it on a credit card?
Use a credit card only for when you absolutely need to. Business travel is a big reason.
I wouldn't do it. Sounds like you are just a few months away from retiring that debt. Why stick it on a credit card?
Use a credit card only for when you absolutely need to. Business travel is a big reason.
well since the credit card is interest free for the first 6 months, i would save about $30 in interest. it is risky, though, since i can stop paying extra on my loan at any time but if i can't pay off the CC within 6 mos i'm screwed with a high interest rate.
well since the credit card is interest free for the first 6 months, i would save about $30 in interest. it is risky, though, since i can stop paying extra on my loan at any time but if i can't pay off the CC within 6 mos i'm screwed with a high interest rate.
Exactly. Anything can happen.
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To earn rewards
If you don't have enough income to cover what you're charging. (The credit limits are usually way too generous)
