Maybe the numbers have changed recently but 790 is a very good score that should get you the best deals.
Credit Card Question
- Thread starter cy4life94
- Start date
Maybe the numbers have changed recently but 790 is a very good score that should get you the best deals.
On average people who use credit cards spend about an additional fifteen percent over what they would have using cash. That adds up over time.
A 790 based off one account for four years? Wow. I'm assuming your parents have had that card for a long time as that entire history is counting towards your utilization. You have student loans as well?
I would get a credit card that gives you the rewards you want. If you travel a lot, get one that allows you to get miles. For me, I care more about getting cash back, so I use 2 cards.
- Capital One Quick Silver - 1.5% cash back on all purchases
- Bank of America Cash Rewards - 1% on everything, 2% on Groceries, 3% on Gas (I may have the Groceries and Gas reversed).
- Capital One Quick Silver - 1.5% cash back on all purchases
- Bank of America Cash Rewards - 1% on everything, 2% on Groceries, 3% on Gas (I may have the Groceries and Gas reversed).
Have to see how they all feel, figure out which you like best.
Once you know you have your self control, request a credit increase about every 6 months, but not the one where they have to do a credit check. Credit utilization ratio, though if that 790 is accurate, I guess improving your credit isn't a huge concern. Discover has an online form with about 5 questions I fill out a couple times a year and they increase the limit a few grand. Mine is over $30k now but the only time I break $1,000 on the card is when I buy our groups ISU season tickets.
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A responsibly used credit card is great for managing cash flow. It also provides more consumer protection than debit cards (they've updated the laws so you are on the hook for a comparable amount, but with a debit card it is your money in limbo, with a credit card it is the bank's money in limbo), and even a basic rewards card gets 1-2% back. If you pay your card off every month a credit card costs you $0.00 and not only that, the bank pays you to use it since they make money on transaction fees.
Sure, you can live without a credit card. But there's no reason to do so in this century.
If you use your debit card as a credit card (don't enter pin) you have the same protection from fraud.
That's true but misleading. Say somebody gets your card info and uses it for $1,000 in purchases
Debit card: For however long it takes to resolve the issue, your $1,000 is unavailable to you. Once the issue is resolved you get the money back. But it might be months before you have access to that money. The bank has little incentive to act swiftly because hey, it isn't their money.
Credit card: Your credit limit is effectively lowered by $1,000 while it is resolved. You still have access to all your money. The bank has incentive to act swiftly because it is their money.
This. Yes we all realize you can live life without a credit card, but unless you have no self control there really isn't a reason not to get one. Stick with one that has no annual fee and you're going to get kick backs in the form of cash back, gift cards, airline miles, etc.
Also if you're ever wanting financing for a car or a house you better play the, albeit stupid, credit score game.
Switched from Freedom to Amazon and it's been better for me since I also have a Discover. A lot of Freedom's 5% calendar synced up with what Discover was also doing.
Discover is also handy over seas. I always call in when I travel, and the few countries I've been to, there's been no foreign fees with it. Not sure if that's the norm or not with other cards.
Discover is also handy over seas. I always call in when I travel, and the few countries I've been to, there's been no foreign fees with it. Not sure if that's the norm or not with other cards.
yeah but on the flip side I get 15% more stuff
I would probably get two cards: one of the categorized cards that have been mentioned so far (amex, etc) for specific purchases, and a capitalone card like the quicksilver as a backup (and capitalone cards for the most part don't have international transaction fees, so if you think you may do some traveling in the future/buy things over the internet in other currencies it's nice to have).
I personally don't like messing with points or anything like that. Simple cash back card is good for me. I hate messing around with categories and electing into a category to get more points or more cash back - it just isn't for me.
Credit scores are dumb but that's how most lending is done anymore because banks/bankers are too stupid to figure out how to do a loan without the FICO program spitting out a number
Credit scores are dumb but that's how most lending is done anymore because banks/bankers are too stupid to figure out how to do a loan without the FICO program spitting out a number
It's literally one e-mail and one additional mouse click every 3 months to activate a category. They send the reminder e-mail stating the categories, I click on the Activate button in the e-mail, boom. Done. Most I think also have their calendar of categories posted online so you can see what's coming up.
To each their own though.
As to the other debate, I rarely use my debit card anymore. I could spend, say $1000, a month on my debit card and not get anything in return. Or I could spend that $500 on a credit card and receive at minimum $10 back. Not a lot at first, but adds up over a year especially with 2, 3, or 5% back categories. I'm single, no kids, live in a small apt and don't have a lot of expenses (and am trying to save; a little kickback here and there helps). I imagine a family of four easily brings in a substantial amount in cash back every year.
It just seems petty to me, I have better things to do with my time than mess around with a stupid rewards program.
I prefer cash to the card anyway. I have my monthly bills set up on the card and use cash in most instances where I am buying something face to face. Most would probably save more money by using cash vs a card with rewards anyway, but to each their own.
my first card was a parental co-signed card from target with a $330 limit.
once i graduated well fargo offered me a card with, i think, a $1000 limit. my advice is never put more than about 20% of your limit on it and always pay it off in full each month.
once i graduated well fargo offered me a card with, i think, a $1000 limit. my advice is never put more than about 20% of your limit on it and always pay it off in full each month.
It may seem petty but if you're smart about it you can get some amazing value, even above the 1-5% that Discover Offers. Here's a story of a college kid that spent 3 weeks in France for $0 (travel and accommodations) using points. He leveraged his Citi Thank You Points for $0.12 a piece and American Airlines Points for $0.08 a piece. That's better than nothing and certainly not petty.
He mentions 8 different credit cards in the article - how many total accounts do you think he has open? Do you think those airline miles and points are helping him build wealth? Not for me.
i'm shooting for 2016 avatar of the year. i'm hoping someone doesn't come in with something clever in november and wins by virtue of being "new".
