Credit card education

[OreoGaborio]

Where can I find unbiased info on different credit cards?

All I have right now is a debit card which I use for absolutely everything... would like to get away from that a little and use something that can help me build my credit a little.

Thus, something to use for gas (which accounts for about 100 bucks a week ), food shopping, restarants, track stuff, online purchases, typical small stuff etc. Pref something that has excellent rewards. Not overly concerned about APR's right now as I don't plan on buying anything in the near future that I can't pay off right away.




Already have BOA savings... may just get their cash rewards card.
•Online-exclusive $100 cash rewards bonus after you spend at least $500 on purchases in the first 90 days of account opening
•1% cash back on purchases everywhere, every time
•2% at grocery stores and 3% on gas for the first $1,500 in combined grocery store and gas purchases each quarter.
•Bank of America customers: Get an ongoing 10% customer bonus every time you redeem cash back into a Bank of America® checking or savings account
•0% Introductory APR for 12 billing cycles for purchases and for any balance transfers made in the first 60 days, then, 12.99% - 22.99% variable APR
•No annual fee
•No changing categories and your rewards do not expire

[tsorfas]

Creditcard.com

But for what you are trying to do it will come to either chase it discover.
No annual fee. 5% cash back bonus that changes every 3 months. 3-2-1% categories as well.

If your credit is really low then your only option will be capital one.

I'm not a fan of the big cards (Amex) because of the annual fees and because I use my cards only to build credit. For no other reason. So to me they bring no benefits (miles, points) don't mean anything to me. For some people who pay for everything with their card it's great. And if you manage to do that there are great benefits. It's just the way I do my finances and the benefits I get from my credit and debit cards.

[OreoGaborio]

Creditcard.com

Good. That's what I'm looking at now.

[JettaJayGLS]

Gas looks to be a big expense for you, I'd get whichever card rewards the most for gas. If you fly a lot, and on a specific airline, get a flight rewards card. If you don't do anything specific, a 3/2/1 with no annual fee seems to be the way to go. If you don't have an annual fee you don't have too much to worry about assuming you are responsible (which I know you are).

I personally use an Amex blue cash preferred as it pays 6% on groceries, and I eat a ton and cook just about all my meals. Sure there is an annual fee, but I'm making that back in 2 months of rewards and no one else is paying 6% groceries. Add in 3% on gas, 1% everything else and I make a few hundred bucks a year.

I have 2 suggestions for maximizing rewards with minimal risk of running up a balance:
-In stores, only use your card for transactions with higher rewards. I only use mine for gas/groceries in stores.
-Make all online purchases with your credit card. Since you are already at your computer, immediately go to the CC website and pay-off exactly what you just purchased. I also do this for big purchases. For example, I just bought a TV. Paid by credit card at Best Buy then went home and instantly transferred the money.

[ilikenapalm]

Since you already have Bank of America, I'll tell you what I do.

Two credit cards. First is the 3/2/1 cash rewards card. I put everything on this card. It pays 3% on gas, 2% on groceries, and 1% on everything else. The 3% often makes up for the difference between cash and credit at the gas station.

I also have the MasterCard better balance rewards card. Because you have a Bank of America account, you would get $30 a quarter for paying more than the minimum balance each month. I charge about $30 a month on this card and then pay it off in full every month. I earn $120 for about $400 spent.

Bank of America also has the most user friendly online banking experience I've ever had. Very easy to make transactions, and all of your accounts (including CC's) are right there looking at you when you log on.

[OreoGaborio]

Good recommendations, guys.



Question for those that have the BOA Cash Rewards card... I just saw "3% fee (min $10) applies to balance transfers.".... are they saying they're gonna charge me 3%, min 10 bucks to pay off my bill using my BOA checking account???

[ilikenapalm]

No. I believe it is a 3% fee if you're transferring rewards to your bill, though don't quote me on that. Take the extra step (and additional 10%) and transfer it into your bank account.

I pay my credit card from my checking account (also BofA), and no fees. I usually make 2 payments a month.

It's possible different account options have since popped up... make sure you confirm this with a rep before you sign up.

[OreoGaborio]

Word, thanks.

[BMMCBR]

What all these guys said.

I use the AAA Bank of America card. its 3% back on travel, 2% back on gas/groceries and 1% back everything else. I also have Discover, which is 5% back on Restaurants/Movies, Home Improvement, Gas, and Online Shopping rotating every 4 quarters. Then 5-25% back on specific online retailers which change all the time.

[KnuckleBallz]

If you go BoA make sure you talk to a rep, because you'll want to clarify that the card you're getting reports its limits to the big credit agencies. I believe their Visa cards do not, but their Mastercards do. Because of the way some of their cards are tied to your bank account, they fall under different reporting rules & may not actually factor into your score. I found this out the hard way.

[nhbubba]

http://www.nerdwallet.com/ Also has info about cards and picks.. AFAIK. I think I looked at that site last time I picked a new card.

Re: The balance fee. I thought that was with respect to balance transfers onto the card. Ie if you are looking for cash or looking to pay off another card (transfer that balance) to the card. Meaning debits not associated with goods or services.

They should not charge you to redeem rewards. If they do, that's bullshit.

[BMMCBR]

Re: The balance fee. I thought that was with respect to balance transfers onto the card. Ie if you are looking for cash or looking to pay off another card (transfer that balance) to the card. Meaning debits not associated with goods or services.

This is correct. Balance transfers refer to transferring the balance of another credit card to your current one.

[OreoGaborio]

If you go BoA make sure you talk to a rep, because you'll want to clarify that the card you're getting reports its limits to the big credit agencies. I believe their Visa cards do not, but their Mastercards do. Because of the way some of their cards are tied to your bank account, they fall under different reporting rules & may not actually factor into your score. I found this out the hard way.

Hm... just found this
http://ficoforums.myfico.com/t5/Cred...re/td-p/971712

Looks like it reports as an FSA? Whatever that means.

[OreoGaborio]

So will the BOA card report in a way that helps me build my score?

If not I may apply for Chase Freedom...

•For a limited time, earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening. Offer ends June 30, 2014. Apply now!
•Earn a $25 Bonus after you add your first authorized user and make a purchase within this same 3-month period
•0% Intro APR for 15 months on purchases and balance transfers. After the intro period, a variable APR of 13.99%-22.99%.
•5% Cash Back on up to $1,500 in combined purchases between July 1 and September 30, 2014 at gas stations and Kohl's®
•You'll enjoy new 5% categories every 3 months like gas stations, restaurants and Amazon.com. It's free and easy to activate your bonus each quarter!
•Unlimited 1% Cash Back on all other purchases
•No annual fee and rewards never expire

[csmutty]

I like my AMEX cash card too. No fees and pretty good cash back. Also depending on your credit or lack of it might be hard to get a first card. The only card that would take me for my first one was cap one. And yes the BOA credit card will report.

[TheIglu]

Just be wary. Our card recently changed it terms.

Previously, if you racked up $2500 in charges, then paid off $2k of that at the end of the billing cycle, you'd be charged interest on the $500 remaining.

Now, if you don't pay off the complete balance, they charge you interest on the average daily balance for the billing cycle, aka, the full amount no matter how much you pay off.


Crooks, the whole lot of them.

[obsolete]

I have Amex Cash Preferred Blue and Chase Blue. Chase for dining and travel, Amex for gas, groceries and well everything else. I'm gonna use the chase points I've earned to get to round trip tickets and have a few hundo to spend from the Amex. Then I'm canceling them and getting the Sallie Mae Master card.

[Viper897]

If you have never had a credit card, or have no credit history. It will be easiest to get a card through your bank, build some credit with that. And then you can get one from a different company. There are a few exceptions to this, like if your in college banks will often be able to give you a credit card without much hassel and then you will get auto uped on your limit based on full payment of billing, not your case but an example.

Like tsorfas, I am someone who sees no purpose in the rewards, and Im sure if the credit card cpmpanies could take them away from me they would. I pay in full every single time, this helps build your creidt, as well as periodically and incermentally upping your limit will help as well.

Just my thoughts.

[csmutty]

I have Amex Cash Preferred Blue and Chase Blue. Chase for dining and travel, Amex for gas, groceries and well everything else. I'm gonna use the chase points I've earned to get to round trip tickets and have a few hundo to spend from the Amex. Then I'm canceling them and getting the Sallie Mae Master card.

Why would you cancel them? That would significantly lower your credit score.

[csmutty]

Creditcard.com

But for what you are trying to do it will come to either chase it discover.
No annual fee. 5% cash back bonus that changes every 3 months. 3-2-1% categories as well.

If your credit is really low then your only option will be capital one.

I'm not a fan of the big cards (Amex) because of the annual fees and because I use my cards only to build credit. For no other reason. So to me they bring no benefits (miles, points) don't mean anything to me. For some people who pay for everything with their card it's great. And if you manage to do that there are great benefits. It's just the way I do my finances and the benefits I get from my credit and debit cards.

Not all big cards charge fees. Usually you have to have good credit to get the fee associated cards anyways. And cards that have fees only make sense if you are using them a ton, as it takes a lot of $$ spent to see a benefit with the greater rewards over the annual fee. Both of my amex cards have no fees.

[tsorfas]

Not all big cards charge fees. Usually you have to have good credit to get the fee associated cards anyways. And cards that have fees only make sense if you are using them a ton, as it takes a lot of $$ spent to see a benefit with the greater rewards over the annual fee. Both of my amex cards have no fees.

Ya I'm talking about the big cards. I know Amex makes
Cards that are discover and chase level as well.
I'm just saying the benefits that fit
Me best were at discover.

[csmutty]

Good recommendations, guys.



Question for those that have the BOA Cash Rewards card... I just saw "3% fee (min $10) applies to balance transfers.".... are they saying they're gonna charge me 3%, min 10 bucks to pay off my bill using my BOA checking account???

Balance transfers refers to balances from other cards that you are transferring to the BOA card balance. They usually make money charging the vendor 3% on everything you buy, but since their is no vendor to charge when you are transferring a balance from another card they charge you instead.

[xsiliconkid]

Why would you cancel them? That would significantly lower your credit score.

When seeking a loan (e.g.house mortgage) your current credit card's max limits are taking into account as if you borrowed on every card to the max. They become existing liabilities for the purposes of how much you can borrow.

[obsolete]

Why would you cancel them? That would significantly lower your credit score.

Nope, it wouldn't. Available vs used credit is what's important. They have annual fees, if I don't use them the points don't cover the fees and I have to pay for them.

[csmutty]

When going for a loan (e.g.house mortgage) your current credit card's max limits are taking into account as if you borrowed on every card to the max. They become existing liabilities for the purposes of how much you can borrow.

But what about the average age of credit lines?