Any Good Credit Cards

[abracadabra11]

Best bet is Schwab 2% cashback visa or the similar offering from Fidelity (Schwab provides the cashback immediately whereas with Fidelity you accrue points and receive a $50 deposit into your approved retirement account once you've reached 2500 pts.

 

[The Phiz]

I know this is an old old old post... but:

USAA. Best bank I've dealt with and you have access to it in BDCP.

The ONLY CC I have is with them: $10,000@7.75%. I carry a small balance on it, and pay off all of it every month, leaving maybe a small balance to continue building credit. If you want to build credit, get as HIGH a credit limit as you can, carry a small balance on it, and pay it on time, every time. Your credit will soar in no time.

Ummm, No. You don't build credit by leaving a balance. You give free money to the credit card companies. That is straight up bad advice.

Oh and by the way: A high credit limit will not help you with credit. It actually hurts you when you want to cash in in your good credit. Banks look at all credit cards as MAXED OUT when they consider you for a loan. So if you have a 25k limit, even with a 0 balance, they assume you are 25k in the hole. (whats to stop you from blowing 25k on the card after they approve you?)

Building credit doesn't even take a credit card. But if thats what you use, all you need to do is pay in full every month.

 

[RussBow6]

i've got a green amex. if you can get approved for it i'd highly recommend it... i really like having no limit and being able to do what i want when i want with it... just gotta be careful. you can get warranties on big purchases beyond the manufacturer's, customer service is pretty good (and they speak english!), you can link up all your other financial info be able to view/graph/track all of it in on spot on amex.com, you can earn 5x points on gas and groceries which are 2 of the biggest expenses i have, and frankly when i'm older i wanna see the member since year on there as being from a long time ago haha.

i have the usaa visa cash rewards as the back up for the amex in case someplace doesnt take it but the limit on the usaa, at least starting out, is way low... i think $1500...

my debit with usaa is mastercard so i've got all 3 and they are the only 3 credit cards i will ever allow in my wallet.

 

[FlyBoyd]

I know this is an old old old post... but:



Ummm, No. You don't build credit by leaving a balance. You give free money to the credit card companies. That is straight up bad advice.

Oh and by the way: A high credit limit will not help you with credit. It actually hurts you when you want to cash in in your good credit. Banks look at all credit cards as MAXED OUT when they consider you for a loan. So if you have a 25k limit, even with a 0 balance, they assume you are 25k in the hole. (whats to stop you from blowing 25k on the card after they approve you?)

Building credit doesn't even take a credit card. But if thats what you use, all you need to do is pay in full every month.

ummm....what?

While I agree with your clarification of Otto's post the rest is garbage.

Read here http://homebuying.about.com/cs/yourcreditrating/a/credit_score.htm

Debt to income ratio is the key. NOT ONCE EVER has a financial institution used my 60K available credit as a negative. Having high available credit not being used is a plus. It shows you are disciplined. For example, it is advisable to never exceed 10% of your available credit (especially revolving credit). If you charge everything and the pay it off at the end of the month (as I do) then make sure you don't exceed 10%. In my case a credit company can pull my credit at the worst time of month (highest balance) and it won't be 10%. If the crap you stated above was true I would have a 1:2 debt to income ratio = 50%. My last loan I was calculated around 5%. I have no bills other than a house (and related bills) and that is removed if you are applying for a primary residence. Your existing house is used (against you) for the purchase of a second property and you are often given a break if you can show a long term lease/rental agreement for the new purchase.

Dude, go to school.

 

[m26]

i've got a green amex. if you can get approved for it i'd highly recommend it... i really like having no limit and being able to do what i want when i want with it... just gotta be careful. you can get warranties on big purchases beyond the manufacturer's, customer service is pretty good (and they speak english!), you can link up all your other financial info be able to view/graph/track all of it in on spot on amex.com, you can earn 5x points on gas and groceries which are 2 of the biggest expenses i have, and frankly when i'm older i wanna see the member since year on there as being from a long time ago haha.

I'm not sold on the Green/Gold cards. This article outlines the case pretty well. Most cards have insurance, return guarantees, and rewards comparable to AmEx without the annual fee.

That said, I love my American Express Blue. I can ExpressPay (which is still cool, even though I've done it a million times), the rewards are good, and I feel safe with my purchases and if I should lose the card. And the customer service has been excellent thus far.

 

[The Phiz]

Debt to income ratio is the key.

And I thought that your credit limit was viewed as debt in the eyes of a lender. It is money that is pretty much available to borrow, no real questions asked. If you have a 20k limit, you can pretty much run 20k up after you get your loan. No?

 

[RussBow6]

I'm not sold on the Green/Gold cards. This article outlines the case pretty well. Most cards have insurance, return guarantees, and rewards comparable to AmEx without the annual fee.

yeah your absolutely right. the amex i think its blue cash back? card i think is the best deal. i dont know if those non annual fee cards have no limits on them though?? i did all the research awhile ago...

i just decided i'm ok with paying the annual fee to be able to put an amex down on the bar/table/whatever it may be for whatever i want to buy whenever i want to buy it... and i'll pay up for the platinum one day when i travel enough to rationalize that and then when i become a billionaire i'll get the black card (is amex's black? i know visa's is...)

 

[m26]

Blue is a good deal, and Blue Sky is a great (free) travel card. These do have limits, though... The article points out that the G/G cards do not have "pre-set spending limits," but AmEx will not necessarily approve any purchase made on the card. They have to be within a level that AmEx finds acceptable for that person's income and credit history, and consistent with past spending habits (i.e. you can't charge a Buick to an account that puts $1500 on the card each month).

At some point I might go Gold, so that I can eventually get the Platinum card, which is pretty sweet. The Centurion Card is black, but it's not properly known as the "Black Card." That thing is awesome. Personal concierge, personal shoppers, free companion tickets on international flights, free first class upgrades etc, etc, etc. I think you have to have had a platinum card for a few years, and be spending upwards of $100,000 on it. And then it's still by invitation only.

One day, I shall have that card

And yeah, VISA cashed in on the AMEX hype by making a "Black Diamond" card, or some such. It's got some game, but it's more for surgeons, rather than, say, moguls of various sorts.

 

[FlyBoyd]

I know this is an old old old post... but:



Ummm, No. You don't build credit by leaving a balance. You give free money to the credit card companies. That is straight up bad advice.

Oh and by the way: A high credit limit will not help you with credit. It actually hurts you when you want to cash in in your good credit. Banks look at all credit cards as MAXED OUT when they consider you for a loan. So if you have a 25k limit, even with a 0 balance, they assume you are 25k in the hole. (whats to stop you from blowing 25k on the card after they approve you?)

Building credit doesn't even take a credit card. But if thats what you use, all you need to do is pay in full every month.

And I thought that your credit limit was viewed as debt in the eyes of a lender. It is money that is pretty much available to borrow, no real questions asked. If you have a 20k limit, you can pretty much run 20k up after you get your loan. No?

First, you stated it as fact like you know and then, once confronted, you ask like you aren't sure?

Don't talk out of your ass about subjects where the only knowledge you have is what you thought.

Negative rep...don't make me stop the car.

 

[RussBow6]

One day, I shall have that card

you and me both brotha. those are some ridiculous stats to get the card though wow. i'm not sure how i could rack up $100k every year for a couple years... i guess you'll always find something to buy though haha

and ya i think thats why i didnt go with the blue cause i wanted to have the no limit... and your right its not like i can go out and drop $50k no questions asked but i'll get call on charges over a certain $ amount and they just ask... sir did you make that purchase, when, where, how much?, are you sure? blah blah blah. they've never said no cause they love making the 4% charge on the big stuff haha.

i did try and put my Toyota Tacoma on my amex but the dealer only let charge $2k on it... it was worth a shot ha

 

[BACONATOR]

And I thought that your credit limit was viewed as debt in the eyes of a lender. It is money that is pretty much available to borrow, no real questions asked. If you have a 20k limit, you can pretty much run 20k up after you get your loan. No?

First of all, as was stated, debt:credit ratio is KEY. It's not like anyone who is considering you for a big loan is just going take a passing glance at your credit history.

They are going to look at your credit report and credit history. Sure you have 25K of credit that you can spend with impunity, HOWEVER, do you have a history of running up your cards and paying minimum, or worse, missing payments? No. In fact, you have 25K of credit and use it minimally, and pay it off every month, that shows you are, in fact, very responsible and are probably a VERY safe bet to give a competitive rate on the loan you are requesting (if it's within the realm of your being able to pay it off).

As for the leaving a balance, that may be an urban myth, but that's what I've heard multiple times and my credit score seems to keep climbing, so if it's simply correlation and not causation, I'll keep doing it out of superstition alone.

 

[The Phiz]

First, you stated it as fact like you know and then, once confronted, you ask like you aren't sure?

Don't talk out of your ass about subjects where the only knowledge you have is what you thought.

Negative rep...don't make me stop the car.

Wow, Well I thought it fact untill you brought it up...Thats what I was taught (or at least what I remembered). After looking into it I guess I was wrong. I stand corrected.

You don't know what you don't know.

 

[Picaroon]

As for the leaving a balance, that may be an urban myth, but that's what I've heard multiple times and my credit score seems to keep climbing, so if it's simply correlation and not causation, I'll keep doing it out of superstition alone.

I feel like you guys are talking about separate things. Otto, I think the confusion is that when we say we pay off our cards every month, we equate that with not carrying a balance so when you say "leave a balance" it causes confusion.

 

[BACONATOR]

I feel like you guys are talking about separate things. Otto, I think the confusion is that when we say we pay off our cards every month, we equate that with not carrying a balance so when you say "leave a balance" it causes confusion.

Well what I meant was, in fact, LEAVING a balance on there. 100 bucks, whatever. Paying 7 bucks of interest a month is fine by me if it means my credit goes up. I mean paying off MOST of the balance every month, on time, which is obviously necessary to maintain good credit and to keep it rising. I charge EVERYTHING I do to my card (for rewards) and pay it all off, or mostly off every month. Seems to be working for me. They were almost confused when I called and asked them to increase my limit, as I never charge that much (more credit that I don't use = higher Credit:debt ratio = better score).

 

[FlyBoyd]

I mean paying off MOST of the balance every month, on time, which is obviously necessary to maintain good credit and to keep it rising. I charge EVERYTHING I do to my card (for rewards) and pay it all off, or mostly off every month.

We do something similar...

We charge everything we can (airline miles). We pay the bill to zero on the statement received on the last day possible (electronic) payment. Between the time the statement was generated until it is due (couple weeks) we end up charging more. Our card is never zero and we never pay interest. This links into my 10% discussion above.

When your credit report is pulled there is no way to tell if the balance on your CC is being carried month to month or if you pay it off. $3000 could be new this month (not payed off yet) and $100 could be carried as you state above. You can't see the difference. It is considered owed.

IMO, paying any interest is just a waste of money considering the formula looks at payment history (on time, 30+ days late etc), length of credit history (years old) and the balance owed compared to your income....plus some other things too.

Sorry, if it seems I am all militant with this subject but the amount of misinformation out there only serves to confuse things. The number of people (IPs and students) that really have no clue astounds me. So many times just tweaking the way they do business with no real lifestyle change can have a huge effect on their credit. They just don't know any better.