Credit Cards

Mossyoakglock · July 10, 2009

Ok, I currently have good credit (around 730 I believe), just not enough of a history. I am wanting to get a credit card to get some more history. I will pay it off every month and only purchase things like gas and the occasional dinners. I currently do all of my banking with Bank of America (checking, savings, CD's). Does anybody have any experiences with their credit cards? I figured since I do all my banking there, having the credit card there will make it easier to make payments and do all the online banking, etc. I woud like something with air miles too.

The other card I am considering is the American Express Blue Sky Miles card. For those of you with this card, or any Blue card, what are your experiences?

Finally, the last card I've looked at is The Southwest Airlines Rapid Rewards Visa Signature ® Card. Whenever we fly, we always fly Southwest so I figured as far as air miles go, this wouldn't be a bad choice.

So, any help on any of these card, or any other suggestions on cards? I've heard to stay away from Capital One, but that's just what I've heard. The interest rate doesn't matter much since I'll pay it off every month. I also do not want any annual fees on the card. If not a card with sky miles, something with cashback will work too.

Sorry for the long post, but I'm trying to get all the information that I can so I can make the right decision.

Thanks guys.

ryan_hermanutz · July 10, 2009

Don't get a credit card, get a loan.

Matt_ · July 10, 2009

I have a Bank Of America Visa and an American Express Blue

There was recently "fraudulent activity" on my Visa... which was a $1.00 iTunes purchase and $2.xx at some gaming website... within minutes of the charges BOA E-mailed AND called me to inquiry about these charges since they were 'flagged' due to my purchase history (i never use iTunes or go on gaming websites). Within an hour of the charges my account # was changed and a new card was being sent to me. I have to admit, VERY impressive on their part.

American Express has been good... no complaints really. But it seems like more places accept Visa, especially gas stations; for some reason, a lot of gas stations around here don't accept American Express

Good luck

Gil85 · July 10, 2009

I have cards but try to pay off at end of the month, depends on what I purchase. I've got a BOA credit card but do not use it. Recently got an AmEx blue card, spent $500 on it to get 25,000 miles/points enough for a free airline ticket on any airline, the rate on this card is not bad. I use Discover (high rate so pay off every month) mostly for cash back or gift cards from them is a better option. For example get an Applebee's $45 gift card for $40 exchange. And I have the GM Card by HSBC on the old program where you can only rack up $500 of discount a year by charging $10,000 a year on it. Saved me $3400 on my new GMC. I buy everything on CCs to get the perks, you have to be able to pay off at end of month though. With AmEx, Mastercard, and Discover I should be covered with any merchant.

gave20 · July 10, 2009

More credit cards won't help they''' hurt your credit since your debt to income ratio will go up. Are you trying to buy something? credit history is credit history, the number of cards won't increase your history.

mkelly · July 10, 2009

More credit cards won't help they''' hurt your credit since your debt to income ratio will go up. Are you trying to buy something? credit history is credit history, the number of cards won't increase your history.

That is not entirely true.

having a credit card will help your credit as long as you dont carry a large balance on it.

If you dont have a card or current loans your credit rating will take a significant hit. Its sad but true.

LawmanSS · July 10, 2009

More credit cards won't help they''' hurt your credit since your debt to income ratio will go up. Are you trying to buy something? credit history is credit history, the number of cards won't increase your history.

That is not entirely true.

having a credit card will help your credit as long as you dont carry a large balance on it.

If you dont have a card or current loans your credit rating will take a significant hit. Its sad but true.

I ran into this issue years ago when I finished college and was buying my first new vehicle. While I did get the loan, the bank flagged me as "not having a significant credit history." Having a card can help in that regard. That being said, just make sure you don't carry a huge balance and be sure to make your payments on time. And be very cautious of how easy it is to use a credit card...if you catch my drift. It feels like free money, but it sure isn't.

Outbacker · July 10, 2009

The only advice that I will give for any credit card is get the credit limit no higher then you actually need it. By going with what you said, a limit of 1-2 K would be plenty. Reason is if you apply for a mortgage, or a loan for a new truck, the limit of the credit card is looked at as accessible cash, and this can lower the amount that you would be entitled to for the loan. Say you are eligible for 100K, and you have a credit card that has a limit of 20K. This may drop the amount you get to 80K since the other 20K is accessible, even though there is no balance on the card. Does that make sense? Watch for hidden fees, and watch the interest rate after the introductory period. They typically go up a few percent. Also look at the interest rate if you use the card to withdraw $$$ from a bank machine. This rate is often different from the balance owing interest rate. And a final point, ensure that your card has a grace period so that you are not paying interest the moment you buy something. Most cards have a 20 day grace period before the interest is applied to any balance.

This is some of the lessons I have learned WRT a credit card, and they may not apply to where you live, but it worth looking into.

Mossyoakglock · July 10, 2009

I graduated from college not too long ago and my goal is to go get a house soon. I went to get pre-approved for a home loan through my bank but got a letter back saying that I had good credit, just not enough of a history. So, I figured a credit card would help in getting some credit history built up when it comes time to look at houses.

mkelly · July 10, 2009

I graduated from college not too long ago and my goal is to go get a house soon. I went to get pre-approved for a home loan through my bank but got a letter back saying that I had good credit, just not enough of a history. So, I figured a credit card would help in getting some credit history built up when it comes time to look at houses.

Unfortunately if you are looking into a house in the next 6 months or so opening a new credit card will probably have a worse effect on your credit rating than not having one. You might want to ask your banker if he/she thinks getting a card is a good idea. Every inquiry into your credit has a negative impact. Even moving into an apartment where they check your credit for utilities will hurt you.

The best thing you could do if you want a house is to make sure you have %20 + ~6k for closing costs + 2 months mortgage in the bank before you buy. That means for a 200k house you will need approx 49k in the bank.

mkelly · July 10, 2009

The only advice that I will give for any credit card is get the credit limit no higher then you actually need it. By going with what you said, a limit of 1-2 K would be plenty. Reason is if you apply for a mortgage, or a loan for a new truck, the limit of the credit card is looked at as accessible cash, and this can lower the amount that you would be entitled to for the loan. Say you are eligible for 100K, and you have a credit card that has a limit of 20K. This may drop the amount you get to 80K since the other 20K is accessible, even though there is no balance on the card. Does that make sense? Watch for hidden fees, and watch the interest rate after the introductory period. They typically go up a few percent. Also look at the interest rate if you use the card to withdraw $$ from a bank machine. This rate is often different from the balance owing interest rate. And a final point, ensure that your card has a grace period so that you are not paying interest the moment you buy something. Most cards have a 20 day grace period before the interest is applied to any balance.
This is some of the lessons I have learned WRT a credit card, and they may not apply to where you live, but it worth looking into.

I was told that the amount of available credit have no impact on your credit rating. The only thing that counts against you is the minimum monthly payment and late payments.

Nick The Great · July 10, 2009

I'm a big fan of my Best Buy Mastercard. I put all my expenses on it, and I got so many points / dollar. Of course, you get more points / $ when you buy from them. But I probably get $20 or $30 per month in Best Buy Gift Certificates. The old lady just got a Barns & Noble card, much to the same effect.

I've heard these cards have have APR and your limit is probably a little lower. It doesn't matter to me, since I pay it off every month.

My BOA card is alright. I don't use it much, since I have my Best Buy card.

gave20 · July 10, 2009

The only advice that I will give for any credit card is get the credit limit no higher then you actually need it. By going with what you said, a limit of 1-2 K would be plenty. Reason is if you apply for a mortgage, or a loan for a new truck, the limit of the credit card is looked at as accessible cash, and this can lower the amount that you would be entitled to for the loan. Say you are eligible for 100K, and you have a credit card that has a limit of 20K. This may drop the amount you get to 80K since the other 20K is accessible, even though there is no balance on the card. Does that make sense? Watch for hidden fees, and watch the interest rate after the introductory period. They typically go up a few percent. Also look at the interest rate if you use the card to withdraw $$$ from a bank machine. This rate is often different from the balance owing interest rate. And a final point, ensure that your card has a grace period so that you are not paying interest the moment you buy something. Most cards have a 20 day grace period before the interest is applied to any balance.
This is some of the lessons I have learned WRT a credit card, and they may not apply to where you live, but it worth looking into.

^this

gave20 · July 10, 2009

I was told that the amount of available credit have no impact on your credit rating. The only thing that counts against you is the minimum monthly payment and late payments.

No way, the bank has to weigh in your available credit; even though you may not max out your cards you have the potential to. The bank has to take that into consideration, thus lowering your credit score.

mkelly · July 10, 2009

I was told that the amount of available credit have no impact on your credit rating. The only thing that counts against you is the minimum monthly payment and late payments.

No way, the bank has to weigh in your available credit; even though you may not max out your cards you have the potential to. The bank has to take that into consideration, thus lowering your credit score.

I just went through the process of getting a mortgage and I was told that it doesnt matter at all. I was told that the percentage of your available credit used is the number that hurts you..... So if you have 2k on a card with a 4k limit you are at 50% utilized and that hurts. If you have 2k on a card with an 8k limit you are at 25% and are good....... Doesnt make sense to me, but then again that could be part of the reason banks are in so much trouble ;)

http://en.wikipedia.org/wiki/Credit_score_...he_credit_score