I need a Credit Card

[Freeker]

Thoughts, suggestions?

Which company is best? Who has the lowest interest rate?

Any advice would be great as my last CC didn't go very well.

[voodoolady]

You don't need a Credit Card!

[AdamH]

Yes you do, for so many reasons.

Of course the obvious thing to be diligent about is paying off your balance (best case) or making significant debt repayments well beyond the minimum monthly payment which might be $10 or $15. Otherwise you are ripping yourself off and making very rich banks even richer.

I've had a card with Citizen's Bank for the last two years or so. Initially I'd only had one credit card with CIBC and they didn't think my credit history is old enough but now they love me (or hate me since they make next to nothing on me0. My card is called Shared Interest because a portion of all transactions is pooled and, once a year, members choose a charity from a shortlist of nominees to receive the cash prize (which is around $25,000 for the organization). It's cool stuff but no, it doesn't earn you airmiles or anything.

If you are a constant balance payer the bank/credit union will eventually raise your credit limit on an automatic basis. I've heard that in fact having a high credit limit is bad for your credit but that may not be true. Also if you're more comfortable just keeping a $500 limit or whatever you can ask to disable the automatic raising of your limit.

In any case Citizen's Bank has been fine for me.

Edited April 17, 2007 by Guest

[Gateaux]

I would say don't bother Trev until you get other "debts" paid off.

[Northern Wish]

If you just want it for ordering and not for living off of, I went another route (once no bank would touch me and my Phish touring on VISA).

I got a secured VISA through Scotiabank. Basically you put down the money you want to be able to spend. They take your "deposit" and you get the interest back when you close the account.

Its a pretty good idea because you can't get into debt.

Having a huge limit is only bad when you want a mortgage or car loan etc. The value of the available credit is what appears on your credit report (ie. $5,000 limit = $5,000 debt not just the $420.00 you spent at Hooters).

Sean

Edited April 17, 2007 by Guest

[Booche]

I've heard that in fact having a high credit limit is bad for your credit but that may not be true

It affected us going for a pre-approved mortgage. We didnt owe one damn cent on the card but they got leary of how much debt we 'could' take on with a piece of plastic, so we called the CC and told them to reduce the amount.

[StoneMtn]

The cheapest interest rate I ever got was with MBNA Canada. They don't give you any Air Miles or points or anything, but I managed to get them down to an interest rate of 9.99% which is basically unheard-of for a credit card.

It takes some effort, though, and you'll need to talk to supervisors and managers and things.

[ollie]

FWIW, I got rejected by my own bank for a Visa card a few years ago due to lack of credit history. MBNA Mastercard didn't mind though.

[ollie]

The cheapest interest rate I ever got was with MBNA Canada. They don't give you any Air Miles or points or anything, but I managed to get them down to an interest rate of 9.99% which is basically unheard-of for a credit card.

It takes some effort, though, and you'll need to talk to supervisors and managers and things.

I got the 9.99% interest rate through an offer from my university.

Trev, do you ever get those offers in the mail from your school?

[StoneMtn]

That is true, but those offers are usually introductory rates for 3 months or so. Mine was a permanent interest rate.

[ollie]

That is true, but those offers are usually introductory rates for 3 months or so. Mine was a permanent interest rate.

Yep, mine too.

[Booche]

Trev, do you ever get those offers in the mail from your school?

Holy fuck. This is a comedians wetdream.

[Ms Zimmy]

Yeah, a credit card, full or not, is considered debt to a mortgagor. It's best to only have one low limit card when applying for a mortgage.

Freeks, they all suck...go with a bank who knows you, make an appointment, get a personal banker (I couldn't get a credit card for the longest time because I had no credit, then I started working for a real estate firm and had to deal with the bank everyday, certifying $300,000 mortgage cheques, I went to apply again 6 months later they gave it to me because they knew me...doesn't make sense)

They will most likely give you one for $500 or so, then if you have a steady income, in a year or two they will up it.

[Freeker]

Thanks for the advice guys. I just really need it to rent cars and buy tickets nothing else. It wouldn't be abused too badly.

-------------------------------------------------

For my next question. Who knows about Debt consolidations?

I mostly have student loans, some with the bank some with both the federal and NS gov't and I'd just like to organize them all.

[Blane]

After getting off to on the wrong foot with a CC as an undergrad and finding myself in collections a couple of years later, I've managed to work it out.

Since I get points from my card (Royal Bank), I put most of my major purchases (including groceries, etc) on my card and pay it off religiously. So far I've paid about 30 bucks interest since I got it a year ago, due to missing one payment while being out of the country. Aside from that one incident last year, the card hasn't cost me anything. In fact, since transactions on my CC don't count as monthly transactions, it helps to keep my bank account from accumulating extra transaction costs.

I'm surprised about high available balance counting against you for credit. I thought it was the opposite!

OH YEAH, and for suggestions...

If you use online banking with your bank currently, I strongly suggest getting one through your bank. It makes monitoring your balance and making payments so much easier.

Edited April 17, 2007 by Guest

[Jaimoe]

Credit card interest rates become an almost non-issue if you have a line of credit from your bank. It's something you should investigate with your bank. My line of credit has saved my skin many times over the years.

[phishtaper]

credit is evil

[popo weenie]

Thoughts, suggestions?

Which company is best? Who has the lowest interest rate?

Any advice would be great as my last CC didn't go very well.

better ask kung he has 10 cents he may be able to give you half

[Jaimoe]

credit is evil

It's only evil if you can't manage your finances and spending habits.

[phorbesie]

exactly...credit has made soooo many things possible for me, it has enhanced my life a great deal.

although, i can't manage my finances and spending habits either.

also, credit is now essential for me as i get paid irregularly (sometimes only once in 6 weeks)

Edited April 18, 2007 by Guest

[phishtaper]

do u think its fair to dangle a sweet bag of addictive xyz in front of a gaggle of teenagers?

that's exactly what so many of the major credit card companies do every fall term on university and college campuses across the country. student? sure, here ya go, free $1000 "credit". don't spend it all before christmas.

sure, credit cards are not a problem for individuals with financial self-control ... but neither are casinos.

[ollie]

I would hope a *university* student would be smart enough to know what he or she is getting into. If not... oh well.

[phorbesie]

do u think its fair to dangle a sweet bag of addictive xyz in front of a gaggle of teenagers?

that's exactly what so many of the major credit card companies do every fall term on university and college campuses across the country. student? sure, here ya go, free $1000 "credit". don't spend it all before christmas.

sure, credit cards are not a problem for individuals with financial self-control ... but neither are casinos.

i don't know what's unfair about it.

i got a credit card my first week at university. of course i racked it up (they only give you 1000 limit anyway with no prior credit history), but i saw lots of shows, did cool stuff and had money i wouldn't have had otherwise, to enjoy myself. i paid it off later. seems fair to me.

[Jared]

how is credit evil? this year, I bought a house, and got a new car, all on credit. A few years ago, I couldn't have gotten a 5 year loan for a pack of smokes. But I made an effort to stay on top of bills, pay of old debt and put some money away.

Next thing you know, boom, morgage and car loan. now I have my own place and wheels.

As for credit cards, I love my visa gold travel. I have had it for ever. I am pretty sure you dont pay intrest if you pay the balance every month. BUT... you get money that you can use at the TD travel agent.

I just just use it for gas, groceries, and a few bills. and pretty much I can get a free round trip air fare and hotel for a week, every year.

When I have to pay for expensive things, like car repairs, and such. I'll use it also and then pay it right away.

Last year I had to fix, The breaks, and transmition on my truck. I pretty much got a 2 day trip to halifax for that.

When I got a house I spent alot of money at home depot, and ikea. maxed my card out probably 3 times in the month. I got enought points for that to pay for round trip air fare for BC, and a hotel room for 3 weeks, and I still have enought points for a trip to Florda.

The way the work, is that you basically get a percentage for of travel dollars for what you spend, They have a travle agent so you can book any thing you want. no points, no special times or deals, any thing you could pay to book they can book. I've even called them from the lobby of a hotel and the set up the room for me in under 10 min.

I even get free insureance on rental cars

[hamilton]

I am pretty sure you dont pay intrest if you pay the balance every month.

Of course you don't pay interest if you pay the balance every month. That's true of every credit card.