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Recommend me a Credit Card
Folken Fanel
anime afWhen's KoFRegistered User regular
anime afWhen's KoFRegistered User regular
I'm in the market for a new credit card. The one I currently have recently decided to change its interest rate to something ridiculous like 33%. I don't use it that often, and only keep it for emergencies, but if I ever use it, and say a bill payment gets lost in the mail or something, I really don't feel like spending that much on interest.
I'm looking for a replacement with no activation fee and a really low interest rate. I'm not entirely sure what "low" is for interest rate though. Also, I'd like something with some kind of cool benefit attached to using it.
I thought about going for the Sony Card since they're doing a promotion where spending over $299 at their store gives you a $150 credit, but they're interest rate is stated as:
Not sure what all these different interest rates are, but 12% seems kind of high (or is it?)
Any chance there exists a card with zero activation fee, 5% interest and some kind of sweet promotion?
Btw, I'm 24 and living as a broke graduate student in America if that matters.
I'm looking for a replacement with no activation fee and a really low interest rate. I'm not entirely sure what "low" is for interest rate though. Also, I'd like something with some kind of cool benefit attached to using it.
I thought about going for the Sony Card since they're doing a promotion where spending over $299 at their store gives you a $150 credit, but they're interest rate is stated as:
Sony Card Fine Print wrote:Purchase APR=11.99% variable; Overdraft Advance APR = 13.99% fixed; Default APR= up to 28.99% variable; Cash Advance APR = 20.99% variable;
Not sure what all these different interest rates are, but 12% seems kind of high (or is it?)
Any chance there exists a card with zero activation fee, 5% interest and some kind of sweet promotion?
Btw, I'm 24 and living as a broke graduate student in America if that matters.
Folken Fanel on
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If you're really just using it for emergencies and the like, the APR isn't a big deal -- that's less than 3% a month. But if you're really THAT worried about a lost payment, almost all credit cards offer online billpay, which is secure, reliable, and almost instantaneous -- my payments post to my account the next day.
Shogun Streams Vidya
So pay this fucker off, then save it for emergencies. Don't keep it in your wallet, you might use it.
I can has cheezburger, yes?
I don't think I was clear on this. I have a 0 balance on my card. Every time I've used it, I paid it off as soon as the bill arrived in my mail box. The new shit interested rate was not a result of me being late with a payment.
The new (not additional) credit card will be to replace this shitty interest rate.
Hm... true. I guess I could pay bills online with the debit card. I'd still feel better off with as low an interest rate as I can muster though.
Purchase APR: Your normal interest rate you need to be aware of. This is what you will pay on things you buy.
Overdraft Advance APR: If you exceed your credit limit, this is your interest on that excess.
Default APR: When you fuck up and don't pay bills, etc., this is the interest rate they're allowed to charge you. End of story, pay your bills.
Cash Advance APR: You normally only use a credit card at a store, but many have the option to literally draw cash from your card as if from an ATM. But the interest rate is insane. It's not usually smart to make wide, sweeping statements about finances, but in 99% of all cases you shouldn't be doing this.
12% is typical. You can find better ones out there (or get lucky and be in a bank like USAA with insanely low card interest rates), but 12% is the best you can hope for. As far as cool benefits, the only thing I can suggest is getting the card through the store you visit the most (like a BestBuy Mastercard or something). In general those benefits shouldn't make or break your decision, as they're pretty marginal. I would also second the recommendation for American Express, with the qualifying statement that there ARE still places that won't take it (this would have bitten me in the ass on Spring Break if I hadn't had my MC). You may also look for a card with a 0% APR for 6 months type of special.
PSN: TheScrublet
Also, 12%-ish is pretty decent for most cards given your current situation.
Finally, just in case you dont realize (a lot of people dont) but APR stands for Annual Percentage Rate. So if you miss paying a (assumed monthly) bill, it doesnt mean that 33% interest rate is going to magically turn your $100 debt into $133. It will be closer to $103. (of course, this doesnt take into account any late payment fees you may incur
11.99% variable is pretty average, especially if your credit isn't spectacular. Really, as a 24-year-old grad student you shouldn't really expect much better, and you shouldn't be carrying a balance anyway (which is sounds like you don't).
The best card we have right now is a 6.9% fixed rate, but that's because we applied to have our rate lowered during a year when we were making over $70K...I doubt we'd get the same rate now.
As for bennies, in general on a card you're going to have to choose between a better rate or better bennies. We have a total of three cards: the Discover, which offers a mediocre rate (12%-ish) but has the best benefits for using it (as far as cash-back goes), a Citibank Mastercard, which offers a shitty rate (14%-ish) and has mediocre benefits but obviously will be accepted more places than the Discover, and a BofA Visa, which is the 6.9% one that offers no benefits whatsoever except for a screamin' interest rate.
We sometimes carry a balance on the Visa, but we mostly use the first two for our spending and pay them off at the end of the month. None have any sort of regular fees or drawbacks, and all have grace periods if you pay your full balance every month.
The best card you're likely to get, based on the little you've told us, will probably be something like the Mastercard above...a halfway decent rate (in the teens), no yearly fees, and maybe some small cash-back bonus (like 1%). For your spending pattern (seldom carrying a balance) your primary concerns are probably going to be:
A) an interest-free grace period
C) a small cash-back bonus
...and you may not even be able to get (C). I do definitely suggest looking around for a new card, because 33% is a fucking insult and will hurt a bit if you ever do find yourself in a situation where you have to carry a balance for a few months. But anything in the mid-teens would probably be fine, provided it meets at least (A) and (B).
Never ever ever get an AMEX as your only card. Along with Discover, you'll run into a lot of places that won't take it. Visa/MC will be taken just about everywhere that takes cards (except Costco).
Beyond interest rates, something else to look out for are monthly/semi-annual/annual fees. That kind of thing can hurt you more than the interest, especially if you don't plan on using the card on a regular basis.
The third thing to look out for are any "special" fees they might levy in certain situations. Hell, they might charge you a fee just for charging more than X amount on the card. They can and will charge you for just about anything and everything, so be careful in that regard as wel.
The way most people need to look at everyday use of credit cards is as a way to delay payment on something for a few weeks to a month at the most - not as a way to pay for something you can't afford right away. The interest rate on a credit card is entirely irrelevant if you pay off the entire balance every month.
This rule still applies if you're planning on using credit cards "in an emergency". If you have the foresight to plan ahead and get a credit card just to pay for something on the spot when you have no other options, it stands to reason that you should take the next step and actually have that money available in the bank (or in something with similar liquidity) so that when the time comes, you can actually pay off the bill.
And especially as a broke student, there's very little reason to have a card with annual fees. The ONLY reason you should get an Amex card are 1) it's free if you already need a Costco membership, or 2) you fly JetBlue a lot
Honestly, I wouldn't worry too much about interest rates if you don't plan on carrying a balance often - the 10% difference between cards will probably be less than the late fees you're going to have to pay anyway, and it should be a vanishingly rare event if you're semi-attentive to your finances
I'd say either something like a gas station visa/mc (which are usually 5%-ish on gas and 1-2% on anything else), or maybe capital one? (though I hate their online stuff for no real legitimate reasons)
But rates may well have gotten worse since.
Though really, rate is not a primary concern for you anyway, and can be safely ignored in favor of other requirements (like no fees, grace period). I wouldn't normally even sweat the 33% you're at now, except for the fact that any company that would charge rape rates like that will jump at any opportunity to fuck you over in other ways...not that credit card companies are known for customer service and working with people anyhow, but this company would certainly try to outdo the rest.
What the hell is this nonsense? So.. I'm approved with 0% APR for 6 months, and then its 8.9% after that.
But! looking on the bottom right column the very same card is 0% for the first 6 months, then 19.8 after that. WTF?
edit: Also Capital One is an absolute rubbish credit company. They will ream you at every available opportunity.
Shogun Streams Vidya
The one that has the 8.9% apr has a annual fee of $39.00.
The one that has the 19.8% apr has no annual fee.
Also, back to your original card: I know some credit card companies will put you in the default rate (33%) based on your credit report. Have you contacted them to confirm why they increased the rate?
A couple years ago I paid a phone bill late. I paid for half of it before it was due, then paid off the rest after the due date. Wouldn't be surprised if this is what made my interest rate go up on my current card, even though I never paid for my cell phone bill with my credit card, I've never been late with any other bill ever, and I've always paid off said credit card immediately after getting their bills. No idea why I didn't think of this when I made this damn thread to begin with...
Anyway, I really want to get a hdtv... and Amazon.com has a special where the tv I want qualifies for no interest for the first 6 months. (I could afford to pay off this tv in full in 2 months btw) if I buy it with their credit card. I'm thinking about taking the plunge. Details below (important stuff bolded):
No interest and no monthly payments for 6 months if paid in full within 6 months on select items sold by Amazon.com. Items sold by third parties do not qualify.
The Fine Print
Note: To immediately use your card to place an order to an address that is not currently on your Amazon.com account, please add the address to your Amazon.com account before applying for the Amazon.com Store Card. To add an address, visit the Address Book. To purchase downloadable items such as e-books with your Amazon.com Store Card, you will have to wait till your card arrives in the mail.
The Amazon.com Store Card is issued by GE Money Bank. If you have questions about the Amazon.com Store Card, call 1-866-634-8379.
26-Month Financing Offer: Offer is subject to credit approval. Applies to any order total that includes an advertised eligible product sold by Amazon.com made between 1/29/09 and 4/30/09 on an Amazon.com Store Card account ("Qualifying Purchase"). 1-Click and phone orders do not apply to this promotion. Any purchase of products sold on Amazon.com by third-party sellers do not count as a Qualifying Purchase but may receive the benefit of this offer if on the same order as a Qualifying Purchase. Under the promotion, no finance charges will be assessed on the promotional purchase as long as you pay the following in full within 6 months: (1) the promotional purchase amount, and (2) any optional credit insurance/debt cancellation charges related to the promotional purchase. If you do not, finance charges will be assessed on the promotional balance from the date of the purchase. Standard account terms apply to non-promotional purchases and, after promotion ends, to your promotional purchases. Existing cardholders should see their credit card agreement for their standard terms. APR varies and is assigned to each account when opened. As of 1/1/09, variable APR for the cards offering the promotion is 21.9%. Variable delinquency APR: 26.75%. Variable cure APR: 21.9%. Minimum finance charge $1.50. The Amazon.com Store Card is issued by GE Money Bank. If your transaction is eligible for more than one type of financing promotion, the promotion deemed most favorable will be applied to your total transaction.
So I guess my questions are:
1) How do I go about deciding how good/bad my credit is?
2) How does this card look? Am I screwing myself in the ass or taking advantage of a sweet deal?
Anyway...you should have four open trade lines at all times, just for the record; having just one "emergency" card and no other trade lines might be good for your spending habits but you'll have a bank tell you you'll need to use non-traditional credit--and pay a much higher rate--when you try to get a mortgage or other kind of loan heavily dependent on credit history.
Student and car loans, credit cards, and mortgages all count as trade lines. Stuff like phone bills generally don't.
If you pay your bills off in full every month, take whatever card benefits you most; otherwise, look for a no-frills with a lower rate (right now it will likely be in the 9-12% range, even if your score is good. simply because of the way the credit market is right now)
Anyway, Shogun, you recommended the annual-fee Amex card...can I ask why? I have an Amex Blue (no-fee) among a half-dozen other cards (all with zero balance, most I use once or twice a year just so they don't close them on me) and from what I can tell it has the same features as the annual-fee card, but you may know different...any idea?
Sorry to butt in but I work for AMEX's rewards department so I have a bit of familiarity with them. Also, I'm not a plant so please dont burn me at the steak here.
AMEX uses two different models for their cards. The no Annual Fee cards are their revolving cards aka credit cards. They have an APR and a decently high one for most credit card companies.
The Annual Fee cards are called charge cards, no APR but they do not carry a balance between months.
Between the two if you're not going to be carrying a balance, you will get what you pay for. The Charge Cards will almost always have more benefits.
From my experience AMEX does well for the people who spend a lot of money with them, We can bend some rules a bit if we find that you spend a good deal on the card monthly. The cards tend to be expensive but do offer some decent benefits. Most of the cards carry shopping protection plans and travel insurance. Most of this might not apply to you if you're only going to use it for emergency purchases but it may be useful down the road.
For the rewards. AMEX uses two basic models, points or cash back. They have a slew of different point models, either their general system called Membership Rewards or a few systems tied with an airline or hotel. So should you decide to go with a points card, try to decide what you want out of it first. I know the MR program well, they have a decent selection of stores that you can get gift cards for with the points.
But most of all for fucks sake READ THE TERMS THAT COME WITH THE CARD! There have been many times I've seen someone really fucked because they were entirely ignorant of the card T/C. Though that should pretty much go without saying for ANY credit card.
I'm thinking about going with Amazon's card mostly because I'm in the market for an HDTV and their 6 month's no interest benefit is appealing. Someone tell me if this seems like a good idea.
How's your money for the next 6 months? Remember, the terms say that if you haven't paid IN FULL at the end of those 6 months, they charge you for interest for the WHOLE 6 months. It should probably read "no interest for now". (Though I am thinking about doing this so I can grab one of the Pioneers before they disappear).
PSN: TheScrublet
It will list all the 0% intro rates, deals, steals etc. As credit cards only exist to abuse the free gifts, pay off without paying any interest, and for general sexiness.....
Basically, if you are as sensible as you sound, the interest rate is irrelevant because you'll never have a balance on the card that will cost you interest
Talk to your bank. Usually, the bank you use for your normal banking is a good source of good credit cards, particularly if you are with a local bank. I've had my credit card for 6 years now, and unfortunately I'm carrying a somewhat high balance right now, but the interest is still sitting at 8.9%. Just keep in mind, getting a new credit card, at least for a little while, will hurt your credit if you're going to be buying anything else (car, house, whatever).
Not purchasing anything that big anytime soon (nothing bigger than a tv anyway).
How does adding a second credit card look long term? Should I cancel the first card before adding the new one? I really didn't want to until the second one came in just in case I needed it for an emergency.
Two cards is fine. I have an AMEX that I use for most purchases because the interest rate is lower, and a second emergency Mastercard since you can still find places that won't take AMEX. It's when you start talking four or five cards, or frequently opening and closing cards to balance transfer shit across, that you start raising flags.
PSN: TheScrublet
See, I have a Visa. Should I get a non-visa as my second card or just get the Amazon visa for the short term benefits?