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Credit Card Decision

DemonStaceyDemonStacey TTODewback's DaughterIn love with the TaySwayRegistered User regular
edited June 2012 in Help / Advice Forum
Thinking about getting one of the two following cards but don't understand what the one does AT ALL.

Thing to note: This will be a card that is paid off in full each month. I just would like to make some money off my monies.

Card 1:

Earn 1% cashback for every dollar spent.

Card 2:
The more you pay, the more you'll earn back with a statement credit.*
Pay 10% or more of your current balance and get a statement credit worth 50% of that month's interest charges.*
Pay 5% - 9.99% of your current balance and get a statement credit worth 25% of that month's interest charges.*

What in the world does card 2 mean?

Does that mean if I paid 100% I wouldn't get anything? Or would I get 50% of the interest that would have occured?

Thanks!

DemonStacey on

Posts

  • SeptusSeptus Registered User regular
    It definitely seems to me like you'll get nothing with card two, with the way you plan to use it. Presumably it's targeted towards people who want to open it and do a balance transfer?

    PSN: Kurahoshi1
  • CreamstoutCreamstout What you think I program for, to push a fuckin' quad-core? Registered User regular
    Go with Card 1, since you'll be paying off the card in full each month, card 2 offers no benefits for you. Card 2 gives you a break on the interest charged if you pay a certain % off each month. If you pay 100% each month on that card no interest will be charged, so you will not get any cashback. Neither of these cards sound that great, shop around there are a lot of good cards out there.

  • bowenbowen How you doin'? Registered User regular
    Yeah card 2 is more for people to get lower interest rates on the current outstanding balance.

    Wouldn't be helpful unless you carried a balance which you shouldn't do.

    not a doctor, not a lawyer, examples I use may not be fully researched so don't take out of context plz, don't @ me
  • DemonStaceyDemonStacey TTODewback's Daughter In love with the TaySwayRegistered User regular
    Creamstout wrote: »
    Go with Card 1, since you'll be paying off the card in full each month, card 2 offers no benefits for you. Card 2 gives you a break on the interest charged if you pay a certain % off each month. If you pay 100% each month on that card no interest will be charged, so you will not get any cashback. Neither of these cards sound that great, shop around there are a lot of good cards out there.

    Hmm interesting. So there are higher than 1% cashbackers out there?

  • kuhlmeyekuhlmeye Registered User regular
    Discover is 1% everywhere, with 5% rotating categories. Right now is restaurants.

    PSN: the-K-flash
  • DemonStaceyDemonStacey TTODewback's Daughter In love with the TaySwayRegistered User regular
    kuhlmeye wrote: »
    Discover is 1% everywhere, with 5% rotating categories. Right now is restaurants.

    oh that sounds pretty nifty...

    I will look at that. Thanks!

  • bowenbowen How you doin'? Registered User regular
    I think capital one has a 1% everywhere and 3% groceries.

    not a doctor, not a lawyer, examples I use may not be fully researched so don't take out of context plz, don't @ me
  • zerzhulzerzhul Registered User, Moderator mod
    Chase Freedom has 1% everywhere and 5% rotating categories as well.

  • darqnessdarqness KCMORegistered User regular
    I have the Chase freedom which started with $100.00 back if you spend more than $500.00 in the first three months. It also has rotating categories for 3-5% cash back. I made a lot of money back when Amazon was 5% cash back for 3 months.

    http://www.creditcards.com/cash-back.php

  • DeebaserDeebaser on my way to work in a suit and a tie Ahhhh...come on fucking guyRegistered User regular
    before you get a discover, take a stroll around your hood and see how many places that take MC/Visa do not take discover.

  • minirhyderminirhyder BerlinRegistered User regular
    Deebaser wrote: »
    before you get a discover, take a stroll around your hood and see how many places that take MC/Visa do not take discover.

    This. I've ran into quite a lot of restaurants that don't take Discover, which makes it a bit pointless since I get double cash back on restaurants and gas.

  • EggyToastEggyToast Jersey CityRegistered User regular
    My Amazon.com card through Chase offers:

    3% back on Amazon.com purchases
    2% back on Gas, Restaurants, Drug Stores, and Office Supply Stores
    1% everywhere else

    Discover does straight cash as their reward, which is nice, but other cards do this essentially now. The thing to look for is to see what the cash or account credit option is -- it SHOULD be equivalent to 100 pts equals $1. With the Amazon card, I can get a $25 gift cert in the mail for 2500 pts, or I can just use it on Amazon directly. That's nice.

    With Discover, the rewards often end up being more than 1%. If you get a Starbucks Gift Card, your $45 turns into $50.

    Similarly, some merchants offer big bonuses for using your Discover card. Groupon gives you 15% back if you click through the ShopDiscover portal. 15%!

    || Flickr — || PSN: EggyToast
  • DeebaserDeebaser on my way to work in a suit and a tie Ahhhh...come on fucking guyRegistered User regular
    minirhyder wrote: »
    Deebaser wrote: »
    before you get a discover, take a stroll around your hood and see how many places that take MC/Visa do not take discover.

    This. I've ran into quite a lot of restaurants that don't take Discover, which makes it a bit pointless since I get double cash back on restaurants and gas.

    Yeah, I never had a discover card, but my buddy did. It was his only card. There were a few incidents where he wound up looking like a deadbeat dickbag.

    Though nowadays, debit cards and all. Just throwing it out there, OP.

  • ThanatosThanatos Registered User regular
    Do not get a Discover or American Express card as your only card, unless you also have a debit Visa or Mastercard. It's a total dick move.

    They can be great cards, but you need to have a Visa or Mastercard for the multitudinous places that do not take Discover or Amex.

  • EsseeEssee The pinkest of hair. Victoria, BCRegistered User regular
    Thanatos wrote: »
    Do not get a Discover or American Express card as your only card, unless you also have a debit Visa or Mastercard. It's a total dick move.

    They can be great cards, but you need to have a Visa or Mastercard for the multitudinous places that do not take Discover or Amex.

    Yeah, Discover is awesome (from personal/family experience), so I think (seeing as how you're going to be paying off anything you have every month) if you're interested in them it wouldn't be too bad to also get a Visa/Mastercard credit card of some sort. I mean, Visa is almost literally taken anywhere, so. Assuming you're going to pay off anything you use in full (which you are), and there's no yearly fee or anything, there's no real reason NOT to have a backup card you only use every once in a while. It even makes your credit report show more available credit just by being there.

    But if you already have a debit card, you don't necessarily need to do that. There's just not really any downside to doing it as long as you're being awesome, like me, and not carrying a balance from month-to-month. Because then you're using a credit card as a debit card that just happens to build credit (and can be paid off at the end of the month instead of immediately), which is really the best way to use them.

  • DraygoDraygo Registered User regular
    That is true. Discover also gets you some crazy deals on certain websites from time to time through e-coupon codes. My mother got 500$ off a new lenovo laptop on top of a sale price. Huge savings.

    So there is more to consider when picking a cc. 1% only is pretty meager offering and you could do better.

  • EncEnc A Fool with Compassion Pronouns: He, Him, HisRegistered User regular
    EggyToast wrote: »
    My Amazon.com card through Chase offers:

    3% back on Amazon.com purchases
    2% back on Gas, Restaurants, Drug Stores, and Office Supply Stores
    1% everywhere else

    Discover does straight cash as their reward, which is nice, but other cards do this essentially now. The thing to look for is to see what the cash or account credit option is -- it SHOULD be equivalent to 100 pts equals $1. With the Amazon card, I can get a $25 gift cert in the mail for 2500 pts, or I can just use it on Amazon directly. That's nice.

    With Discover, the rewards often end up being more than 1%. If you get a Starbucks Gift Card, your $45 turns into $50.

    Similarly, some merchants offer big bonuses for using your Discover card. Groupon gives you 15% back if you click through the ShopDiscover portal. 15%!

    I've been very pleased with my Amazon card. It's been the most usable bonus I've had on a card outside of a bank one which deposited back the 1% directly into a checking account. The other perks make it more worthwhile, in my opinion.

    Also: don't ever carry a balance. Assuming you pay back monthly you are essentially getting free shipping on something from Amazon every other month simply for buying with your card.

  • EncEnc A Fool with Compassion Pronouns: He, Him, HisRegistered User regular
    Also: It's a visa which is almost universally accepted. Many places do not take Discover because they charge vendors fairly high.

  • LaPuzzaLaPuzza Registered User regular
    EggyToast wrote: »

    Discover does straight cash as their reward, which is nice, but other cards do this essentially now. The thing to look for is to see what the cash or account credit option is -- it SHOULD be equivalent to 100 pts equals $1. With the Amazon card, I can get a $25 gift cert in the mail for 2500 pts, or I can just use it on Amazon directly. That's nice.

    With Discover, the rewards often end up being more than 1%. If you get a Starbucks Gift Card, your $45 turns into $50.

    Similarly, some merchants offer big bonuses for using your Discover card. Groupon gives you 15% back if you click through the ShopDiscover portal. 15%!

    This. If you do it right, it increases your payback drastically. Instead of $800 spent=$8 cash, you end up with $800 spent=$40 cashback=$50 Gift Card.

    Also, Discover has a great Android Ap - I use it to cash in my cashback when I'm in the store where I want to spend it, and just give the e-certificate code to the store and get my stuff for free. tap-tap-tap=Free Shirt! is a very fun process

  • MalgarasMalgaras Registered User regular
    edited June 2012
    I currently use two cards in tandem myself:

    Blue Cash from Amex
    3% on groceries
    2% on gas
    1% on everything else

    Citi Forward Visa
    5 points on Restaurants(including fast food),
    5 points on bookstores (notably including Amazon.com, whether you buy books or not, the main reason I got this card really as I do tons of shopping there, It is actually a better rate than the Amazon.com store card if you use your points intelligently.)
    5 points on Video Stores and Movie theaters
    5 points on Music stores
    However, reward points aren't as straight foward with this one. Statement credits come out at like 3.X% due to the point conversion. Amazon gift cards clock in at 4.1% when they are available though, which is as good as cash for me.

    I find they are great as the Visa is fantastic for places where you often can't use your Amex (certain restaurant's etc.)

    Malgaras on
    1tLJUH2O.png
  • DivideByZeroDivideByZero Social Justice Blackguard Registered User regular
    I also use Amex Blue Cash and can count on one hand the number of places that turned it down. Carry a backup Visa to cover your bases; something with no annual fees so you can get away with almost never using it. Everything goes on the Amex and at the end of the year I get a nice $300-$500 credit. Plus their warranty extensions and perks are pretty nifty.

    First they came for the Muslims, and we said NOT TODAY, MOTHERFUCKERS
  • Inquisitor77Inquisitor77 2 x Penny Arcade Fight Club Champion A fixed point in space and timeRegistered User regular
    One important thing to keep in mind is how you get your "cash back". For some of these cards, what they actually do is give you gift cards for vendors and retailers rather than real money back. Also, some of the terms can be quite onerous, including deadlines for both claiming and using them. If you can avoid the really asinine ones though, cash back is usually the best way to go, as it ensures that you're getting an actual return that you can use relatively quickly.

    Also, I'm sure you know this, but I'll echo it again: Never leave a balance on your card. Always pay it off in full. If you don't, then you might as well not bother shopping for a credit card, because you're going to get shafted so far up the ass in fees and interest rates that your paltry 1% cash back bonus will be but a single tear drop of lubrication for your chafing, burning bunghole.

  • Shazkar ShadowstormShazkar Shadowstorm Registered User regular
    chase freedom is a good option

    poo
  • xThanatoSxxThanatoSx Registered User regular
    I have a Capital One VentureOne Rewards card. No annual fee, 1.25 points/miles per dollar, redeem points/miles for gift cards or travel.

    I've been using this card card in various forms over the last 10+ years - I've never had any issue with it. Bonus - it doesn't charge fees for out of country transactions.

    Insert all the usual advice about "don't carry a balance" here - this fact can't be stressed enough. Once you're in a hole on credit cards, it can be... difficult... to climb your way back out of it.

  • ScooterScooter Registered User regular
    Personally what I do is carry a Mastercard with me, and keep a Discover at home which I use for all my online shopping. That way if I lose my wallet or something I'm not cardless until I get a replacement. With Mastercard it's basically just cashback, but you have to have $50 before they send you a check. With Discover I was using it to convert to Amazon MP3 bux for the bonus, but they dropped that bonus so I haven't really picked an alternative reward yet.

  • DemonStaceyDemonStacey TTODewback's Daughter In love with the TaySwayRegistered User regular
    One important thing to keep in mind is how you get your "cash back". For some of these cards, what they actually do is give you gift cards for vendors and retailers rather than real money back. Also, some of the terms can be quite onerous, including deadlines for both claiming and using them. If you can avoid the really asinine ones though, cash back is usually the best way to go, as it ensures that you're getting an actual return that you can use relatively quickly.

    Also, I'm sure you know this, but I'll echo it again: Never leave a balance on your card. Always pay it off in full. If you don't, then you might as well not bother shopping for a credit card, because you're going to get shafted so far up the ass in fees and interest rates that your paltry 1% cash back bonus will be but a single tear drop of lubrication for your chafing, burning bunghole.

    Oh don't worry paying it off will be no problem. I'm 24 I own a house and a car and I have used nothing but a debit card all my life... Paying things off is NOT something I let slide. I've just been looking at credit cards and realizing that since so many people DON't pay their cards off those of us that do can literally get free money... Thus the thread!

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