Credit Cards

Lifestyle Bazaar Talk
1

What to look for when shopping around for a credit card? It would be my first. Thanks.

2
  1. No Annual fee
  2. Low Fixed APR (Usually, many cards have very low introductory rates which last about 6 months, then the actual rate is about 19%...beware of these)
  3. Cash Advance Fees
  4. Large Credit Limit
  5. Points on purchases towards airline miles, and etc
  6. Visa/Matercard are the best
3

Ahmar, thanks, whats a good low fixed APR for an initial card?

4

9.99% - 19.99% would be a good APR for an initial card. I got my first card in 1998 and it was 21% APR

5

i have two cards..one is a visa and one is mc..the first one i got few years back..i searched for a while..and finally decided on some of the factors Ahmar listed here..mine is a walmart visa..and it had the lowest interest rate..it was around 14%..my mc card i just got few days back with a better limit but with higher rate..i was reluctant to get one..but my mom made me sign for it coz some acquaintance of our's was working as a rep..and she sign for it to help him..

i also look for grace period as well..i prefer paying off the amount before the grace period.

also, another thing that i have noticed..if you buy lot of things on credit..if you do big purchases and can't pay off..the better option is to get a credit card with annual fee of lets say $15..coz with annual fee i have seen that the interest rate is around 12%...so paying $15 or less a year..you are saving amount in the interest down the road.

hope this helps :)

6

I have always used Discover because of their Cash Back offers!

But I am looking into others that offer Flight Miles, on Delta, AA etc. If someone has any experience with that please do share ...

Munni, CCs are good if you are going to pay off everything at the end of the month!

7

what a co incidence i was going to post a thread asking for information on how to go about credit cards!
the problem with me is there r so many options and somehow i am not able to make a confident decision,something i have only experienced recently!why are their store credit cards like macy,s,walmart etc and are they better than the other bank credit cards?
Secondly what is the one best credit card for a student like me who will be opening a bank account for the first time and applying for the first card?

8

Could you please explain what APR is?

9

Umer: APR is annual percentage rater for loans etc.

I also look for cash back incentives , which is usually 1%. I just got a check back from my credit card company :)

10

Munni: no matter what please pay off your card every month otherwise you can be in a hole. Also look for a 0 liability card (online or off line) so that you are not charged for any unauthorized purchases. Citi babk has number of options with cash back of 1%. Discover card offers less cash back.

Good luck.

11

Another thing to look for is insurance coverage. If you are going to use the card for travel, and will be renting cars on it, then its a good idea to chack if the card will cover you if you get into an accident in a rental car. A friend of mine wrecked his rental car, and his credit card covered his deductible . Usually a Gold Visa or MasterCard will do that.