dfings

I was just wondering if any of you know about what credit cards are good to get. Ones that have low interest rates and special promotions with the more times you use the cards. Any help will be greatly apreciated.

jorgelito

Check www.Bankrate.com to compare cards

arch13

Don't bother with special promotions. Few people ever actually use them, despite how much they thought they would.
Instead, look for the best interest rate you can get, and work on maintaining a balance you pay every month.

__________________
Seen on an employer evaluation:

"The wheel is turning but the hamsters dead"
____________________________
Is arch13 really a porn diety ? find out after the film at 11.
-Nanofever

Melka

Is it true that, even if you aren't going to use it anymore, you shouldn't close your credit card account? My sister was telling me it's better for your credit that way, but don't really know where she was getting this info from.

tupacbiff1

no never close an account...it shortens your credit history & after a 10 years the account is gone completely. This is a huge mistake many people make.

Sage

what if you close one credit card because you opened another one and transferred the balance?

__________________

RickB

Credit card companies like stability. They like to see history. The longer you have a card (and don't abuse it by making late payments and so forth), the better it looks to the various credit reporting agencies.

tupacbiff1

NEVER CLOSE AN ACCOUNT - NEVER.

just keep it open and dont use it. Cut it up if you want just dont close the account it will hurt your credit score.

Matadon

Mind providing a source for this? Your FICO score is partially based on the amount of revolving credit you have available already, because any potential creditor is going to want to know how much debt you can get yourself into, on top of what they grant you. Why does this matter?

Let's say you want to get a mortgage for $300,000, and pull in about $75,000 a year. If you have a good credit rating (e.g., no bankruptcy, a few years at the job, regular payments, etc.), and a couple of credit cards totalling a $5K limit, then you stand a good chance at getting the loan, because the deepest 'in the hole' you can get is $305,000. Now, let's say you have more than a couple of credit cards, plus a bank line of credit, and as such have access to $50,000 in revolving credit. This means you can now sink yourself a hell of a lot deeper in debt after taking out that mortgage, and your lender can do nothing but watch.

In addition, unused accounts can be targets for theft and fraud; best to just close them. If you don't want such a high limit on a card, but want to keep the account, you can just call your credit card provider and ask them to lower the limit -- this is a common tactic when shopping around for mortgages.

Personally, I keep two cards, an AMEX Blue and a Visa. I use the AMEX for any large and/or online purchases (because their customer service is top-notch), and the Visa for small stuff in-town (because their customer service is NOT top-notch).

My recommendation, since you asked for 'what card to get', is to apply for an AMEX Blue. They don't require a huge income ($21K for a base, IIRC), and there are a lot of member benefits, they're great if you travel internationally, and it's the only card you can use at a CostCo. I've had nothing but a good experience with AMEX, and they have stood up for me on a lot of disputed charges, including once when a bartender charged me $40 for a single pint of Fosters. That's what I call service!

Whatever card you get, PAY THE BALANCE EVERY MONTH! DO NOT CARRY A BALANCE AT ALL! The companies make money whenever you purchase something with the card, and there is no good reason to give them any of your hard-earned cash in the form of interest. If you want something, save up, put it on the card when you've got the cash, and pay off the bill when it comes. Your advantage over cash comes in the form of frequent flyer miles and purchase protection (insurance, fraud protection, etc.), NOT in the ability to pay things off over the course of a year.

Emergencies, well, that's different, but that's why you keep some spare change tucked in your savings account. If you work full-time, I recommend six months' pay in savings; if you work part time, try to save up three to six months' worth of expenses. It seems wasteful to have all that cash there when you want to buy that new big-screen TV, but it sure comes in handy when the mafia blows up your car, you lose your job, or your cat gets sick and you have to pay the vetrinary bill.

superiorrain

Matdaon has wise words and couldn't dispute any of his claims. Just make sure once you get a card you don't start getting another one, then another one, then another one, you catch my drift.

There are some good deals from the internet credit card companies going around, like cash back, better than those fucking air miles, which here in england would take you spending about 10k a month for 3 years before you could get a free flight.

__________________
"The only way to discover the limits of the possible is to go beyond them into the impossible." - Arthur C. Clarke

tupacbiff1

Matadon- your thoughts are respected. Their are many different views on how to build a high fico score. Some can obtain a high fico with 2 cards others do better with 5. However, a major factor in obtaining a high fico score is credit history, the longer the better. You lose that history by closing a card.

I am a frequent poster on creditboards.com where this arguement is dealt with on a much deeper level. Im not going to go into detail as to why my method is better. I suggest each person does the research themself to full understand credit issues. I will say your view is so to speak more basic in terms of credit scoring. This is a subject which even so called experts like Suze Orman cant comprehend.

Cynthetiq

With all due respect that's the reason this poster, both thread starter and Matadon are posting here. We're looking to enlighten and be enlightened.

Please feel free to enlighten us. You won't break our brains.

__________________
I don't care if you are black, white, purple, green, Chinese, Japanese, Korean, hippie, cop, bum, admin, user, English, Irish, French, Catholic, Protestant, Jewish, Buddhist, Muslim, indian, cowboy, tall, short, fat, skinny, emo, punk, mod, rocker, straight, gay, lesbian, jock, nerd, geek, Democrat, Republican, Libertarian, Independent, driver, pedestrian, or bicyclist, either you're an asshole or you're not.

hrdwareguy

Even a closed card will stay on your credit report for a period of time. I believe it is a year but am not sure off the top of my head.

__________________
Gun Control is hitting what you aim at

Aim for the TFP, Donate Today

tupacbiff1

A closed positive account will stay on 10 years. A closed engative account 7 years.

The reason to keep it open is simple each day your account gets older and helps your credit history. By keeping it open you extend the length and never have to worry about losing the account from your report.

Furthermore, another factor in determing Fico scores is available credit and avail credit vs. credit in use. You can help both these factors by keeping a card open.

I suggest using a card every 3-6 months even if it is for a $1.00 purchase just the card company is forced to update your account ont he credit report.

What are the advantages to closing an account? NONE....unless you buy into it makes it harder to be a victim of fraud. Look, if you are a victim of fraud you are not respondsible for the payments plus you are just as likely for it to happen with 2 cards or 10.

Their are people with scores of 800+ with 25+ cards and with 1 or 2 cards. It is a scret formula tht FICO will not disclose. If you are respondsible with credit then it should not matter. I have between 5-15 open accounts and have never closed an accout and my FICO is over 800.

I agree with what Matadon said though:
always pay in full
amex blue is a fine card and amex tends to back its customers slightly more then others but if you are persistent and have evidence any card will back you.

I do not pay cash for anything, anywhere. I get tons of miles this way. Im talking a $1.00 coffee at the deli. they dont take credit they dont get me as a customer.

777

Yeah, try to keep your credit card use to a min. If you really need some money, try to ask your bank for a personal loan. You'll recieve that at a lower interest rate than that of the ave credit card.

__________________
"I don't know that I ever wanted greatness, on its own. It seems rather like wanting to be an engineer, rather than wanting to design something - or wanting to be a writer, rather than wanting to write. It should be a by-product, not a thing in itself. Otherwise, it's just an ego trip."

Roger Zelazny