Credit Card Question

Grog · Aug 1, 2007

I have a bank debit/credit card that deducts directly from my checking account. This is what I use to make all my payments/purchases.

I am thinking that I might be missing out on some bonuses like frequent flyer mileage or cash back or whatever.

Does it make sense for me to get myself a credit card separate from my debit card?

Can anyone recommend a credit card company or type of card that gives good bonuses. I could probably put $40K/per year on it.

goodcall · Aug 1, 2007

Great idea if you know you can pay it off every month.

Get one without an annual fee. If you want cash back or airline miles you'll probably have to settle for a higher APR, but that shouldn't matter if you keep it paid off.

There are many sites out there that compare cards:
http://www.google.com/search?source=ig&hl=en&q=compare+credit+cards

Look around these for your opinion of the best blend of rewards and APR.

Most cards will let you automatically pay off the balance in full each month...it takes the money right from your checking account. I highly recommend setting that up.

It sounds like you might not have much credit...just keep in mind that will probably limit the cards you can get and will also limit the balance they allow you rack up.

good luck!

juice · Aug 1, 2007

American Express Blue
Cash back. 5% cash back on household purchases or something after you spend $6,500.

If you have the financial discipline to not carry a balance and pay it off every month, I would DEFINITELY get a credit card with some rewards like cash back or points and put everything on there.

Not only do you get the rewards, it will help build credit as well.

I always prefer getting cash back. For some reason when I have points accumulated I have the hardest time deciding what to spend them on. I finally just used up all my points this summer to pay for my honeymoon airline tickets and got 2 cash back cards (AmEx and Chase Freedom).

patswin · Aug 1, 2007

checkout creditcardgoodies.com, alot of good info on their about frequent flyer miles and cash back cards.

I've got 1 from Chase that gives a 5% rebate on purchases made at gas stations, supermarkets and drug stores and 1% on everything else. After you get $50 in credits you can redeem them for cash or gift cards at home depot or red lobster or other places. I use the card alot and pay it off every month. The last few years I have gotten about $400 in rebates per year.

iamnomad · Aug 1, 2007

whatever you do, heed goodcall's advice. even the best cashback or points deal will be negated if you carry a balance, which is what the credit card companies are counting on.

You can find an offer from Discover for a card that gives 5% cash back on gas purchases, and with today's prices, that can add up fast. I am using a National City card now that gives me 4% back on gas, 2% on groceries and restaurants and 1% on everything else. Only catch is they will not send me a check until I reach $100.

Be imaginitive, too. I bought $2k worth of furniture at Macy's. Used my credit card to buy $2k worth of Macy's gift cards at the local grocery to pay for it (the topper is that there is a separate deal from the grocery that's giving me a big discount on gas). That's $40 back right there.

If you think you'll consistantly carry a balance, best thing to do is shop for the lowest interest rate and forget about the extras.

fhmesq44 · Aug 1, 2007

Amex has a bunch of options. The card Juice mentioned and also their regular Gold card. I use AMEX Gold at this time, a lot of options for double points and companies with which you can use the points. We flew to Europe free last year with AMEX miles.

wolfie_cr · Aug 1, 2007

if you are going to get into the frequent flyer mile game make sure you check the bonus offers that many cc issuers have .......also the best card for you will be dependant on your location (that is , what airline are you most likely to fly )

do NOT get a capital one that gets you miles (Because the only way to get miles there is by purchases.......so it will take you about 25k USD spending to get a simple domestic ticket)

jeckll · Aug 1, 2007

If you are financially responsible and can pay off your bill at the end of the mont, there is no reason why you should not be using a credit card. In addition to the rewards programs you mentioned, there are many other perks to credit cards.

-0% Balance Transfers for a lot of cards
-Extended warranties and product protection
-Build your credit
-Insurance on things like Rental Cars, etc
-Charge disputes for crap merchandise, etc
-More protection in the event of a lost/stolen card

The following sites have great listings of credit cards:

http://www.bettercreditcard.com
http://www.indexcreditcards.com
http://www.fatwallet.com/forums/c/52/

If you would make the most use out of frequent flier miles, or points for hotel stays or other travel deals, there are cards for that. If you would rather have cash back, there are TONS of cards for that.

Personally, at the moment, I have many credit cards, and I use them differently depending on the rewards structure.

-Citi Driver's Edge gives me 6% cash back at gas stations, grocery stores and drug stores for the first 12 months (3% after that), and they will double it based on reported miles you drive on your car. I'm effectively getting 12% back at these places for the first 12 months.
-American Express Costco card (if you're a Costco member) gives you 3% at restaurants, 2% on travel purchases, and 1% everywhere
-Chase Freedom gives you 3% on whatever "category" you spend the most on
-Amex Blue Cash gives 5% back on every dollar over $6500

If you pay your bills, and are shrewd with use of your cards, you can get big savings using rewards cards.

BAGIANT · Aug 1, 2007

You know you can use your debit card as a credit card also.

bigtendominator · Aug 1, 2007

Debit cards are for idiots. There is no way you should be using plastic without receiving some benefit (assuming you are paying it off every month).

AA Citi cards, you can get unlimited miles, but check there are 2 different types of cards there, one has cap other doesn't. Also, Chase-Continental. I am not sure who the primary carrier is at Logan or who fly with, but that is what I would consider.

I have a very old shell m/c, which is now some chase bs, but they just credit me 1% of my bill each month. Spend $10K they take $100 of the bill, amount due $9900. No hassle, no bs.

Whoson1st · Aug 1, 2007

Grog said:
I have a bank debit/credit card that deducts directly from my checking account. This is what I use to make all my payments/purchases.

I am thinking that I might be missing out on some bonuses like frequent flyer mileage or cash back or whatever.

Does it make sense for me to get myself a credit card separate from my debit card?

Can anyone recommend a credit card company or type of card that gives good bonuses. I could probably put $40K/per year on it.

I used to use my B of A debit card that way, but they would charge a small fee (years ago) for using it this way. Came straight out of my checking account. But when I used the same card as a "credit card" there is no fee. I don't know it they still charge a fee for using it as a "debit card". It goes by the name check card.

will.cover · Aug 2, 2007

Grog said:
I have a bank debit/credit card that deducts directly from my checking account. This is what I use to make all my payments/purchases.

I am thinking that I might be missing out on some bonuses like frequent flyer mileage or cash back or whatever.

Does it make sense for me to get myself a credit card separate from my debit card?

Can anyone recommend a credit card company or type of card that gives good bonuses. I could probably put $40K/per year on it.

To quote Dave Ramsey:

"Have you seen the restrictions on airline miles lately? Jupiter has to align with Mars while you’re standing on one leg to cash in on those things. It’s ridiculous! Plus, statistics from Consumer Reports show that 78 percent of all airline miles are never redeemed. What does this mean? It means in most cases people end up with no cool trip and a bunch of debt."

WC

will.cover · Aug 2, 2007

Debt is dumb. Cash is king.

All you Dame Ramsey's followers know what I am talking about.

WC

wolfie_cr · Aug 2, 2007

will.cover said:
To quote Dave Ramsey:

"Have you seen the restrictions on airline miles lately? Jupiter has to align with Mars while you’re standing on one leg to cash in on those things. It’s ridiculous! Plus, statistics from Consumer Reports show that 78 percent of all airline miles are never redeemed. What does this mean? It means in most cases people end up with no cool trip and a bunch of debt."

WC

Only thing with airline miles is if you HAVE to fly on SPECIFIC dates....other than that there is no trouble whatsoever, I have redeemed about 8 flights Costa Rica to the US with no trouble and the only reason I don't redeem more is because I don't have more time for vacation (or because of business trips that require specific dates)

oldirtyku · Aug 2, 2007

If you travel frequently then get a travel card like a USAirways, United, or Marriott card....

With all the traveling I do, and with having these cards I was able to get 3free really nice vacations in the last year...

jeckll · Aug 2, 2007

will.cover said:
Debt is dumb. Cash is king.

All you Dame Ramsey's followers know what I am talking about.

WC

Sorry but Dave Ramsey is for people with no self control. If you have even an ounce of restraint, you can save yourself a lot of money by using credit cards.

If you don't, then sure, stick with cash. But that's costing you 3%+ on everything.

oldirtyku · Aug 2, 2007

cklennon said:
Sorry but Dave Ramsey is for people with no self control. If you have even an ounce of restraint, you can save yourself a lot of money by using credit cards.

If you don't, then sure, stick with cash. But that's costing you 3%+ on everything.

Agree 100%... Just pay off your CC statement every month and you have nothing to worry about. If you can't do that then don't get a CC...

Whoson1st · Aug 2, 2007

Banks-Debit Cards (called check cards) are no longer charged a fee for using them as a "debit" card rather than a "credit" card?

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