OT: Credit Cards

[Madmannsucks]

I’ve always been against credit cards. When I was younger I was terrible with finances and saw my brother fall victim to tens of thousands of dollars in debt when he was in college even tho he was on a full ride for football. He got out of that hole and has been doing well since financially and has a great lifestyle.

Today I’m wiser with finances. My credit score is great despite not having a credit card with school and car loan payments. There’s no need to boost my credit score. I purchased a house last year, getting married in a couple months, and have a solid job. I’ve been feeling pressure to finally get a credit card.

Does anyone know where to start, friendly websites, or a helpful quiz/survey I can take?

I’ve done research on my own but there’s so much out there and bankers try to sell you on what they have. Should I get one or just pay off my current debt - car and school? It adds up quite a bit and I’m not sure if it would be smart getting one.

I think this would also be a good thread for any students that are debating on getting a credit card with respect to what happened to my brother. Would love to hear your feedback.

Go Huskies!

Credit union.

 

[blue93]

Nerdwallet.com and thepointsguy.com are good places to start, to see what's out there.

If you treat your credit cards as if they were debit cards, there's only upside and you can get a lot of free stuff. Personally I have a Chase Sapphire Reserve (effectively 4.5% back on dining and travel expenses), an Amazon credit card (3% back from Amazon), a Discover card (rotating 5% cash back categories ranging from gas to groceries to restaurants), and Citi Double Cash (effectively 2% on everything, which I use for expenses that don't fall under any of the above).

So for anything I buy, I'm never getting less than 2% back in rewards. It adds up really quickly!

The Amazon card recently increased to 5% cash back if you're a Prime member (plus 2% restaurants/gas stations/drug stores & 1% on everything else). I buy a lot on Amazon anyway, so the points end up paying for the Prime membership and then some.

 

[Husky25]

I’ve always been against credit cards. When I was younger I was terrible with finances and saw my brother fall victim to tens of thousands of dollars in debt when he was in college even tho he was on a full ride for football. He got out of that hole and has been doing well since financially and has a great lifestyle.

Today I’m wiser with finances. My credit score is great despite not having a credit card with school and car loan payments. There’s no need to boost my credit score. I purchased a house last year, getting married in a couple months, and have a solid job. I’ve been feeling pressure to finally get a credit card.

Does anyone know where to start, friendly websites, or a helpful quiz/survey I can take?

I’ve done research on my own but there’s so much out there and bankers try to sell you on what they have. Should I get one or just pay off my current debt - car and school? It adds up quite a bit and I’m not sure if it would be smart getting one.

I think this would also be a good thread for any students that are debating on getting a credit card with respect to what happened to my brother. Would love to hear your feedback.

Go Huskies!

Actually, all things being equal, I'd argue that you are less financially wise simply because you do not have a credit card.

Be that as it may, anyone will tell you that the key is and always will be knowing how to stay within your means. So before you settle on which card from whatever bank, create a budget that includes a certain amount of savings. After you get your card, do not deviate very far (Otherwise what is the point of the budget?).

If your budget is cash flow positive, there is absolutely no reason you can't use the card to cover your expenses, so long as you do not miss a full payment...ever. Once you build a cushion, you'll learn when and how to go negative in the short term (i.e. a given month). It's a 30-60 day interest free loan. Better terms you will never find.

Security wise (fraud as well as identity), it scares the stuffing out of me whenever I see someone pay for anything with a debit card or a check. I normally have some cash on me, but I use it very infrequently. It's convenient for the little things, but a credit card is the safest way to buy anything in 2018.

My only advice, in terms of which card to get, is to stay away from cards with an annual fee. The services they provide are never as valuable as the what you pay.