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The only credit cards I will ever need.

Exorcist 199 22 October 30, 2015 at 11:12 AM
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Hi all. Slowly I am building my credit score. I am an immigrant and migrated to the US on H1b (professionals visa) 11 years back and now i am a Permanent Resident.

Every single time I visit a store they tempt me with their credit card offering me discounts for the purchases.
I was told by my Boss who is an army Veteran never to call for these cards. He's a great guy.
Anyways I'd really want to have those cards that actually benefit me and give me returns. I was told to get the chase freedom card, Amex blue card and discover as i will be getting a small % of discount on each online purchases. And Chase reimburses money yearly if you spend a certain amount every month (really). And same with Amex blue.

Please tell me if this makes any sense? What are the intelligent buyers primary choice when it comes to credit cards.
And yes we travel two times a year on foreign trips it be great to earn travel miles so that we can get discounts on tickets.

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#2
Quote from Exorcist View Post :
Please tell me if this makes any sense? What are the intelligent buyers primary choice when it comes to credit cards.
It depends on your purchasing and redeeming habits. For some cash back cards are the way to go, for others ones that give you travel benefits. Why not try running the #'s yourself. It's not that hard...
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#3
Cash is the way to go. Easy to track/budget. Www. Lookintowallet. Com to get your balance. Really no need to have any credit if you pay CASH for everything. No late fees no overdraft no monthly interest.

Having said that. I have discover it 1.5% doubled 1st year 3%. And couple others because of sign up bonuses. No car loan. But do have mortgage. Buying stuff on line you could always use your bank debit card. Run it as credit better protection from theft.

http://www.nerdwallet.com/the-best-credit-cards

Creditkarma.com is useful for tracking/building credit.

$5 or $10 off at kohls or pretty much any store not worth hassle for opening a store charge card. About $100 sign up bonus is my threshold.
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#4
Quote from tennis4789 View Post :
Cash is the way to go. Easy to track/budget. Www. Lookintowallet. Com to get your balance. Really no need to have any credit if you pay CASH for everything. No late fees no overdraft no monthly interest.

Having said that. I have discover it 1.5% doubled 1st year 3%. And couple others because of sign up bonuses. No car loan. But do have mortgage. Buying stuff on line you could always use your bank debit card. Run it as credit better protection from theft.

http://www.nerdwallet.com/the-best-credit-cards

Creditkarma.com is useful for tracking/building credit.

$5 or $10 off at kohls or pretty much any store not worth hassle for opening a store charge card. About $100 sign up bonus is my threshold.

Except you're leaving at least 1% "on the table" provided you have the will power to pay a CC back in full
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#5
Quote from Dr. J View Post :
Except you're leaving at least 1% "on the table" provided you have the will power to pay a CC back in full
My experience - YMMV - I spend much less than the 1% when I use cash vs. when I use a CC. Credit cards the pain is not really felt til I get the bill. When I look in my wallet & money is gone - the pain is immediate.

Mainly only reason I use my discover card is because of MS. I use my Discover card everywhere else to try to camouflage my MS.

When I put my monthly cash for the month in my wallet- I find it fun to try to make it on the amount budgeted. I have much fewer impulse purchases and will try to spend as little money as possible. Then when I buy something on line. I take it out of the cash in my wallet and put it back into the bank. This was working really well for me til I recently got my 3% back Discover card.

Credit card companies KNOW the numbers, percentages. You might beat the ODDs or you might win the lottery. But I would bet that the Credit card company is right MOST of the time. Kohls giving you $10 off first purchase. They KNOW they will make more than this off most people. That's why they so aggressively try to get you to sign up.
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Last edited by tennis4789 October 30, 2015 at 05:24 PM
#6
store cards will not add to your credit


if you travel make sure the card you chose does not charge 3%
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#7
Quote from bargeit View Post :
store cards will not add to your credit
Huh?

Most store credit cards used responsibly "DO add to your credit" translated use them and pay them off your credit score will increase. Don't use over 30% of your limit. Examplr $1000 limit don't go over $300

3% guessing is foreign transaction fee. Some credit cards do not have foreign transaction fees.
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#8
Quote from tennis4789 View Post :
My experience - YMMV - I spend much less than the 1% when I use cash vs. when I use a CC. Credit cards the pain is not really felt til I get the bill. When I look in my wallet & money is gone - the pain is immediate.

Mainly only reason I use my discover card is because of MS. I use my Discover card everywhere else to try to camouflage my MS.

When I put my monthly cash for the month in my wallet- I find it fun to try to make it on the amount budgeted. I have much fewer impulse purchases and will try to spend as little money as possible. Then when I buy something on line. I take it out of the cash in my wallet and put it back into the bank. This was working really well for me til I recently got my 3% back Discover card.

Credit card companies KNOW the numbers, percentages. You might beat the ODDs or you might win the lottery. But I would bet that the Credit card company is right MOST of the time. Kohls giving you $10 off first purchase. They KNOW they will make more than this off most people. That's why they so aggressively try to get you to sign up.
Interesting analysis, but in the end paying cash often does not yield the best price either. Online discounts, out of state purchases without sales tax, etc. often can all yield cheaper results than paying cash. So while paying cash may help you refrain from some purchases, it also is likely costing you more in many instances where the purchase is needed. Add in that when you pay by credit card and pay the balance in full each month, the money is effectively floated to you as an interest free 1 month loan. If you get 1% on the money in the bank for that month, you are that much ahead of the game as well.

Obviously, one has to have the absolute discipline to pay in full each month and to avoid non-essential purchases\impulse buying to take advantage of this. Also, it does not help as much with avoiding the impulse to go to a restaurant for dinner with friends or something like that where you may split a check and pay cash. In the end though, it all comes down to the individual's flexibility and discipline in sticking to a budget.
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#9
Quote from YanksIn2009 View Post :
Interesting analysis, but in the end paying cash often does not yield the best price either. Online discounts, out of state purchases without sales tax, etc. often can all yield cheaper results than paying cash. So while paying cash may help you refrain from some purchases, it also is likely costing you more in many instances where the purchase is needed. Add in that when you pay by credit card and pay the balance in full each month, the money is effectively floated to you as an interest free 1 month loan. If you get 1% on the money in the bank for that month, you are that much ahead of the game as well.

Obviously, one has to have the absolute discipline to pay in full each month and to avoid non-essential purchases\impulse buying to take advantage of this. Also, it does not help as much with avoiding the impulse to go to a restaurant for dinner with friends or something like that where you may split a check and pay cash. In the end though, it all comes down to the individual's flexibility and discipline in sticking to a budget.
CC companies make lots of money. Department stores know you will spend more if you have a charge card. I know I spend more with cc's than cash. If you think u can beat the odds go for it.

Thread helped me realize I'm going back to cash in my wallet. Pull out money i need for month. If i buy something for $40 with my cc i will take $40 in cash out of my wallet n deposit at the bank.

McDonald's reports its average ticket is $7 when people use credit cards versus $4.50 for cash. More info article below.

https://www.nerdwallet.com/blog/credit-cards/credit-cards-make-you-spend-more/
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#10
Quote from tennis4789 View Post :
CC companies make lots of money. Department stores know you will spend more if you have a charge card. I know I spend more with cc's than cash. If you think u can beat the odds go for it.

Thread helped me realize I'm going back to cash in my wallet. Pull out money i need for month. If i buy something for $40 with my cc i will take $40 in cash out of my wallet n deposit at the bank.

McDonald's reports its average ticket is $7 when people use credit cards versus $4.50 for cash. More info article below.

https://www.nerdwallet.com/blog/c...pend-more/

That may be true but it still comes down to personal discipline and use.

For stuff like MickyDs averages, you have to factor in things like who eats at MickeyDs and who uses there credit cards there and when. Obviously, larger orders will necessitate a higher chance of credit card use since who really is going to charge a shake or fries or some cookies or a coffee to their credit card? Order meals for a family of four and sure, the total is 20+ dollars and people will pull out their card more often.

Again, I do not think it really is causal in a credit card means you spend more at a place like MickeyDs. Just that a credit card means you are more likely to use it imo for convenience sake, cash back\points or both. Now if one is the type of person that spends on impulse, one likely will do that with or without the card. Paying cash just means one is likely to control that impulse easier. If that is case then sure, by all means pay cash if that works. One has to do want works best for them.
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#11
Just wanted to weigh in with my two cents...

Credit cards are a very helpful tool that can really be beneficial when you factor, rewards, convenience, and customer service.

I very rarely have cash in my wallet, I actually don't carry a wallet, just a binder clip with plastics. I have a small stack of one dollar bills in my car for tips, and rarely ever use cash.

I would like to use a few real world examples that may or may not help you...

Scenario 1:
You are on vacation on the opposite side of the country and your bank card is flagged for fraudulent charges and now you have no access to your money and only have whatever cash you may or may have not had on your person.

Scenario 2:
On this same vacation you want to rent a car, book a hotel, but some souvenirs, purchase your return flight ticket, and pay some bills. Is there a chance you may go over your available limit, freezing your card until the following day?

Scenario 3:
You are on this same vacation and the rental car you opted against the insurance on, was just in an accident, even if you were not at fault. The rental company charges your card for the cost of the car.

Scenario 4:
You spend $100 on amazon. Most cards will give back at least 1% on everything. Amazon card is 3%, Discover is 5% 3-6 months a year. If you can save the cost of sales tax or have an item discounted by 3-5% isn't that savings?

Scenario 5:
You have an Amex Blue card which offers 6% back at grocery stores. Myself, I live directly across the street from a supermarket, enjoy cooking, and spend $5000+ a year. If I were to use my bank card I don't save anything. There is a $75 annual fee associated with the card; however, if I spend 1250, that fee cancels itself out.

Scenario 6:
You purchase an item and have trouble returning it. Most banks will not help you with the dispute. Most credit card companies offer stronger customer service. Not without question, but credit card companies appear to value customers more than banks do.

I am a big fan of credit cards strictly for the rewards, but also the security in knowing if I am not near my hometown bank, I have access to cash, because in my world, it's better to have and not need, than need and not have. I agree that discipline plays a large factor in cards, a decade ago I used the cards the wrong way like every kid. With understanding, Im able to maximize my savings and the amount of accounts. Hope this helps.
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#12
Quote from Exorcist View Post :
Anyways I'd really want to have those cards that actually benefit me and give me returns. I was told to get the chase freedom card, Amex blue card and discover as i will be getting a small % of discount on each online purchases.
Those are 3 cards I use most, but a couple others worth considering are Cash+ and Sallie Mae. Cash+ gives you 5% on 2 categories you choose every quarter. I choose Electronics as one of my categories every months and buy Shell/BP/Exxon/Mobil giftcards at Best Buy. This way I get 5% cashback on gas all year round. Sallie Mae gives you 5% on groceries (sadly, $250 spend limit/mth) and 5% back at Amazon as well (up to $750 spend).

Quote from YanksIn2009 View Post :
Obviously, one has to have the absolute discipline to pay in full each month and to avoid non-essential purchases\impulse buying to take advantage of this.
+1

Quote from tennis4789 View Post :
Credit card companies KNOW the numbers, percentages. You might beat the ODDs or you might win the lottery. But I would bet that the Credit card company is right MOST of the time. Kohls giving you $10 off first purchase. They KNOW they will make more than this off most people. That's why they so aggressively try to get you to sign up.
Indeed. The credit card companies have done the research and they know that most people will spend beyond their means and accrue interest charges. They prey on these people. It's not a "lottery" though; you simply have to know yourself and what you are and are not capable of. If you find yourself overspending when using credit, then it is wise for you to use cash. However, if one can control themselves and spend responsibly, then you can literally save thousands per year by using credit. Moreover, doing so helps you build good credit.
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As the username says ...
#13
Quote from ManUpOrShutUp View Post :
you simply have to know yourself and what you are and are not capable of. Moreover, doing so helps you build good credit.
Why do people think they are special and that they won't be like other people? My experience is that including myself - "people's self image is far different than the how the world perceives them." I'm disciplined. I won't be like the rest of the people that are irresponsible. Most people just ignore statistics and data.

Ask most people and if they are honest they will say they have paid interest carried a balance and even further credit card issues. If you use 100% cash your credit score does not matter.

Having said that - Does Sallie Mae card have other benefits? I don't shop at Amazon much because in IL it now has tax and minimum buy for free shipping. I'm not willing to pay for prime spending money to spend more money hmmm. & Aldis grocery chain only accepts debit & cash. Although pin enabled GC seems to work too.
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#14
doing this on a phone, so i apologize. listen, get a credit card that fits and best rewards you for your shopping habits. Suppliment that with cash. use your habits to filter out cards that don't fit and then it gets easy to pick a FEW cards (this maximizes your potential return). $0 annual fee, if you can. when you buy cash, you actually are paying for the cresit card fees, unless your store lets you pay less for goods wth cash (and there are those that do). Most people angst about things that have more to do with BUDGETING and GOOD FINANCIAL HABITS than credit cards themselves. for credit cards themselves, pick things that give you an overlap so that you get greater than 1% in rewards. citi double cash with 2% on everything, Amex every day blue with 3% at supermarkets plus discount programs, capital one visa quicksilver with 1.5% and 0% foriegn transaction fee, and a card that maximizes your gas points and travel at 3% or more are some good ones to start with. Try to sign up when they will send you money for signing up and using them or give you time to pay. You may start with an annual fee, but push for those without it. NEVER SPEND MONEY YOU DONT HAVE OR WONT GET. Best advice: make a seperate savings account to put money in that that go for just paying your credit card bills so that you don't get yourself in a mess one month.
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#15
Quote from tennis4789 View Post :
Why do people think they are special and that they won't be like other people? My experience is that including myself - "people's self image is far different than the how the world perceives them." I'm disciplined. I won't be like the rest of the people that are irresponsible. Most people just ignore statistics and data.

Ask most people and if they are honest they will say they have paid interest carried a balance and even further credit card issues. If you use 100% cash your credit score does not matter.

Having said that - Does Sallie Mae card have other benefits? I don't shop at Amazon much because in IL it now has tax and minimum buy for free shipping. I'm not willing to pay for prime spending money to spend more money hmmm. & Aldis grocery chain only accepts debit & cash. Although pin enabled GC seems to work too.

Again one needs to know oneself. I for one have NEVER paid one red cent in credit card interest and I use them all the time. I am sure there are many others on a place like SD that have a similar experience. I am also sure there are many that have indeed paid interest. Everyone is different but blaming the product for the behavior of the user is sort of the same as blaming those that sell fast food because it is unhealthy and not the people that eat too much or spend too much there. The bottom line is that Credit Cards are a tool that if used properly will save you money (and that is the name of the game). Like any other tool, if used improperly can cause a lot of problems.

As to Amazon, a separate discussion, but I do not have Prime either because I simply will not pay $100 to get shipping in 2 days vs 4. There are people here who will and somehow think that is an essential part of life because they need as near instant gratification as they can get or do no planning at all, I am not in that camp either and my wallet is $100 heavier for it. And as you noted, Amazon now charges tax in many areas and as such is now usually not the cheapest option online imo unless they have a sale.
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