Shopping for a Credit Card

[RoJoHen]

American Express started offering credit cards in the last decade or so...

Just to clear this bit up... American Express lauched its first credit card in 1987. Their first charge card however was launched 29 years earlier, in 1958.

And Mr. Laser Beam, I'm sure you've seen this American Express card...

It's the current look for their classic charge card. It's also the Amex card most people are familiar with, although many probably don't know that it's not actually a credit card.

I always thought "credit card" and "charge card" were synonyms. I guess I was wrong.

 

[Rocketman]

I did too, but got sick of paying the interest. I found it easier to just save for what I want and buy it than to buy it with a credit card and have to pay interest on it or a fee.

At the risk of drawing in the usual credit card nazi, that doesn't make any sense. At least, if you have any self control, the credit card doesn't make a difference.

I think that at this point, you're erring in the same degree that our favourite local credit card activist does; you're assuming that what works for you will work for everyone else.

Lookingglassman tried using credit cards, but he found it didn't work for him. Some people are fine controlling their spending on plastic, other people need a 'visual aid' in the form of a slinking supply of bills in a wallet to tell them their budget is running out.

For the latter group, the money saved by that visual aid far exceeds the rewards they could earn from credit cards.

And don't be too quick to blame the above behaviour on "shitty spending habits"--I used to be able to stay within a reasonably tight budget, easily. Now that that budget has slunk slightly, I find myself reverting to the above system--my spending habits didn't automatically shrink to accommodate the budget.

To a large extent, "good spending habits" thrive on having a budget as large as, or larger than you're accustomed to.

 

[SmoothieX]

The BEST way to do it (IMO)? Save up to buy the item. Buy it on your credit card, which should get you reward points, or cash back, or whatever scheme you've picked. Then pay off the credit card with the money you saved up.

That's what I try to do. I have an AMEX card tied to a Delta Airlines frequent flyer account. Whenever I have a large charge, furniture, computer, scheduled car maintenance, etc. I save up until I have about enough, swipe the card to get the miles, then pay it off online the next day. Obviously I carry a balance for a month or two when something crops up out of left field, but in general I'm in the clear.

When I want to take a trip and am a few miles short of a ticket, I'll charge everything for a few weeks - groceries, gas, stuff like that until I hit the needed mileage.

 

[Lookingglassman]

I controlled the use of my credit cards, but to me it didnt make much sense to pay interest and fees on money I borrowed when I could just save up and buy it with straight cash so I got rid of them. I just save my money and if I need $1000 bucks for something like car repair, I just dip into my savings and there it is, interest free and not have to worry about getting screwed by a credit card company if I made a late payment or they decided to tack on extra fees.

It is a great feeling when I hand someone the cash and knowing the transaction is complete and I dont have to worry about getting a payment in on time or risk a higher interest rate.

 

[Agent Richard07]

^ Using a card doesn't automatically mean paying interest. Just pay for your car repairs with the card, then pay that $1000 in full to the card. In the end, you will have paid the exact same amount you'd pay if you used cash, but you'll also get rewards, which you won't get by paying cash.

 

[SmoothieX]

^It is helpful to have a credit card, as its necessary for certain things. Plus, having a credit card that you pay off regularly helps build your credit score.

They're not totally evil, it's just that there are a lot of irresponsible people out there and the credit card companies use predatory tactics against those people.

 

[Scout101]

right, no fees if you pay it off at the end of the month. Late fees are a product of your own irresponsibility, not the card's fault, you get 20 days or so after the bill is received before you have to pay, and you can do it online. Or just pay it immediately after you buy the item.

By using the card, and getting cash back, it's the equivalent of getting 2% off of every purchase. Kinda dumb NOT to do that, imo. Just gotta have the money for whatever you buy already in the bank, and enough self control to not be retarded with it.

 

[Lookingglassman]

I see what all of you are saying and there are benefits to having one, but I prefer my debit and cash. It makes my life so much easier.