credit cards..which one's? (student loan, debt, payments, financial)

[Live&Learn]

what's the key to knowing which credit card one should get. what things should i look for?

i usually use my debit card for everything. i am really good at making payments and im never late. however i may be making a big move and need a credit card. i cant buy everything i need all at once just using whats in my bank account. i wouldn't mind paying off a monthly installments/balance using a credit card. plus i need to build up credit bc i basically have none.

thanks for any advice

[lumbollo]

^There is no clear answer to this. Once you make the decision that you are going to finance today's living with revolving debt then you are handing the banks a license to let you have as much as they can. Credit card terms and conditions change so much these days there a recommendation now is going to be irrelevant in a few weeks.

However assuming you are going this route then I highly recommend joining a credit union, not a bank, and get a card issued by the credit union. They at least won't try to profiteer off of you.

[chet everett]

When you use this site and stick with their actual content (as opposed to the links to advertisers) you can generally get a card that will work for you. Credit Cards | Best Credit Card Offers | Low APR Interest Rewards | Bad Credit Application Secured Apply Compare Report Score

When making a move, like the OP, it can be easy to ring up lots of new expenses. That is never a good idea. It might be a workable strategy to have one card with very low rate that you use for major purchases (like furniture) and another for the stuff that you know you can pay off monthly (like cleaning supplies). I think that some card issuers (like Chase) are adding features to their systems so you can go online and designate which portion of your bill is paid off first. If you stay on top of these things it could yield some nice benefits. Similarly there are other card issuers that use "more carrot, less stick" by using a system that results in lower rates or higher rewards when you can stay under your credit limit and keep payment history clean. This is not 'made up' it is evidence that the card issuers want customers that use credit responsibly and they are willing to help...

[sterlinggirl]

X2 on a credit union. You probably won't get as high of a limit because they tend to use conservative lending practices, but that's usually a good thing because it helps to keep you out of trouble.

[Tightwad]

Originally Posted by Live&Learn

what's the key to knowing which credit card one should get. what things should i look for?

i usually use my debit card for everything. i am really good at making payments and im never late. however i may be making a big move and need a credit card. i cant buy everything i need all at once just using whats in my bank account. i wouldn't mind paying off a monthly installments/balance using a credit card. plus i need to build up credit bc i basically have none.

thanks for any advice

Now here's a novel point of view to ponder.........

Why is it that people think they need Credit Cards when a Debit card is so much better way to use your money? Is it because people think that a CC is somehow 'free' money? Or is it that they are so naive that they just love to give their money to people who rip them off at every chance?

Everything you do with a CC can be done with a Debit card and pay your way as you go.

Gosh! You mean no interest?

Yep, and if you can't use your debit card then you don't need it 'cause you can't afford it!

Yep, sounds like a much better way to live to me!

[chet everett]

Do you pay cash for your car too?

What about a house?

I fail to see why there is something especially noble about saving up for things that one can budget for and make payments on an appropriate time-line...

[Tightwad]

Originally Posted by chet everett

Do you pay cash for your car too?

What about a house?

I fail to see why there is something especially noble about saving up for things that one can budget for and make payments on an appropriate time-line...

A house and car being the two largest expense (not counting student loans ) are the biggest debt most have. These debts are called "managed debt" if done right not "consumer debt" where CC & debit apply.

Got it?

[chet everett]

Frankly no.

The OP said they are moving into a new apartment. They will probably need furnishings of various kinds, all told much of this durable (bedroom set, dinette set, cookware) and will almost certainly last at least as long as a car. If they are smart enough to try to shop for a good deal on a credit card it seems likely they are smart enough NOT to spend indiscriminately.

You may also note that I suggested they MIGHT want to shop for TWO cards, one that they would use for "consumable" items and pay off every month and other with an attractive rate for longer term purchases.

By wisely managing debt one can enjoy all the benefits of paying for durable goods over the reasonable life of the item(s). If the alternative was "to save up for it" they'd have money in the bank earning a paltry return while sleeping on the floor and eating while seated at the toilet...

The consumer lending business ADDS to the US economy while affording consumers a higher quality of life. To assume that everyone is incapable of using credit wisely is to deny the very existence of the reason for revolving credit. Economists widely accept the fact that a healthy economy NEEDS credit to function.

GOT IT?

[Thepreacherswife]

Originally Posted by Tightwad

Why is it that people think they need Credit Cards when a Debit card is so much better way to use your money?

Just a few examples:

1. Using a debit card vs. a credit card does not allow you to build a credit history, as the OP noted.

2. "Blocking transactions": Use a debit card to pay for gas, car rentals, or hotel rooms and the merchant will typically put a block of an amount larger than the transaction. This money is withdrawn from your account and then replaced after the transaction is finally settled. In the case of car rentals, this can be several hundred dollars and the practice can cause you to overdraw without realizing it.

3. You have chargeback rights when paying with a credit card; if you use your debit card and you have a problem with the merchant, you're generally SOL because the merchant has your money.

4. Better fraud protection: If your credit card is stolen, the maximum liability is $50. For debit cards, if you fail to notify the bank within 2 business days the maximum liability is $500; or unlimited if the bank is not notified within 60 days. Plus, it's very easy to dispute and not pay for fraudulent credit card charges; with a debit card you have to convince the bank to return your money.

[Tightwad]

Originally Posted by chet everett

Frankly no.

The OP said they are moving into a new apartment. They will probably need furnishings of various kinds, all told much of this durable (bedroom set, dinette set, cookware) and will almost certainly last at least as long as a car. If they are smart enough to try to shop for a good deal on a credit card it seems likely they are smart enough NOT to spend indiscriminately.

You may also note that I suggested they MIGHT want to shop for TWO cards, one that they would use for "consumable" items and pay off every month and other with an attractive rate for longer term purchases.

By wisely managing debt one can enjoy all the benefits of paying for durable goods over the reasonable life of the item(s). If the alternative was "to save up for it" they'd have money in the bank earning a paltry return while sleeping on the floor and eating while seated at the toilet...

The consumer lending business ADDS to the US economy while affording consumers a higher quality of life. To assume that everyone is incapable of using credit wisely is to deny the very existence of the reason for revolving credit. Economists widely accept the fact that a healthy economy NEEDS credit to function.

GOT IT?

Originally Posted by Thepreacherswife

Just a few examples:

1. Using a debit card vs. a credit card does not allow you to build a credit history, as the OP noted.

2. "Blocking transactions": Use a debit card to pay for gas, car rentals, or hotel rooms and the merchant will typically put a block of an amount larger than the transaction. This money is withdrawn from your account and then replaced after the transaction is finally settled. In the case of car rentals, this can be several hundred dollars and the practice can cause you to overdraw without realizing it.

3. You have chargeback rights when paying with a credit card; if you use your debit card and you have a problem with the merchant, you're generally SOL because the merchant has your money.

4. Better fraud protection: If your credit card is stolen, the maximum liability is $50. For debit cards, if you fail to notify the bank within 2 business days the maximum liability is $500; or unlimited if the bank is not notified within 60 days. Plus, it's very easy to dispute and not pay for fraudulent credit card charges; with a debit card you have to convince the bank to return your money.

I morn for the days of common sense and financial responsibility of the recent past after reading these two post.

It seems that the banks ,and other money lenders, have brainwashed those born in the last 30 yrs into believing there is such a thing as 'free' money thus erasing all the lessons they should have learned from their parents and grandparents about money.

Easy Credit is not the way to avoid debt bondage.