what kind of credit card ???!!!

[shak]

There are probably a few dozen of different credit cards if not hundreds, what's the best out there? I know that different people have different needs, but is there a guideline that I should follow when applying for a new credit card? I notice that some credit card have a hefty annual fee but offer better rewards(like collect more miles/cash back ....ect), are those worth it?

On average I spent 45k on credit card every year and sometimes I wont be able to pay them off every month. Thus, low interest rate is probably important to me. I recieved this promotion letter offering an American Express card with "on-going" 9.99% interest rate with no annual fee. In addition a 3.99% balance transfer for the first 6 month. What does "on-going" mean here? I read the terms on the back of the letter, it actually says

The interest rates applicable to the account may be adjusted monthly

Does this mean, the bloodly bank could raise the interest rate any time they want?

 

[sirlickheralot]

If you want a low interest rate card where the rates should stay pretty stable go with a card issued by one of the big banks, I know RBC and CIBC both have low interest rate cards.

Be careful with American Express and companies like Capital One, Citibank, etc and read every little bit of fine print on the application and card holders agreement. These companies and others like them will use any excuse to jack up your rates. If you are even one or two days late with a payment they usually have clauses allowing them to double or even triple your existing rate. I've heard of situations where some of these companies will delay processing a payment for a couple of days after they receive it if they receive it close to the payment deadline, just so they can jack up your rates. The big banks aren't that likely to jack up the rates even if you make a late payment.

 

[ace85]

Go Get Yourself A Line Of Credit

Credit Cards are evil.

You must pay your card every month. Otherwise you are better using cash.

Not only do you pay interest on cash balances, but you pay the interest on every purchase from the day you buy it.

You should be able to get a line of credit to cover off the balances you can't pay off each month. That interest rate should be below 6%.

A credit card is a waste of money unless you use it strictly as a PURCHASING Card, for the convinience.

 

[sirlickheralot]

Also if you don't pay off your account each month don't bother with the reward based cards as the extra interest you will pay will cost you more than the rewards you will receive will be worth. The reward cards only really pay off if you spend alot then pay off your balance each month so you never end up paying any interest.

 

[Avery]

I recieved this promotion letter offering an American Express card with "on-going" 9.99% interest rate with no annual fee. In addition a 3.99% balance transfer for the first 6 month. What does "on-going" mean here?

It means that you'll pay 9.99% on purchases and cash advances. If you transfer a higher interest rate balance from another card, Amex will charge you 3.99% on that balance only for six months, following which any unpaid balance will be subject to their on-going rate.

Does this mean, the bloodly bank could raise the interest rate any time they want?

Yes, but not the 3.99% rate, only the on-going rate.

 

[Massagegirl]

Not only do you pay interest on cash balances, but you pay the interest on every purchase from the day you buy it.

Actually, both of my cards (and I think every CC) have no interest for the first 25 days, so you have to pay it off by then or get charged interest.

I recommend a card that gives you airmiles as using it that much will give you a free flight every year (or 2) which is worth the $39.00 annual fee. I don't have it but I should/would if I used it more than occassional unexpected emergencies or frivolous buys (like the new 48 gal fishtank I bought last week on a whim.)

A good tip is when one credit card raises the interest rate, do a balance transfer to another card and before it goes through they will call and offer you a better deal to keep it with them. That's the only reason I have 2 cards.

I really like my Citimastercard cuz it has my picture and my signature on the front which makes it harder for someone to use it, if it gets lost or stolen.

 

[Sonny]

Well, yes! The card agreements are written such that interest rates can be adjusted at any time - and the card companies have certainly done so in the past.

Number ONE rule of credit is DO NOT get into credit card debt (watch Suze Orman go bonkers on advising viewers to adhere to this). How to do it? Structure your purchasing to your disposable income, and live within your means. Interest rates then mean nothing, because you won't pay any interest!

Then, for rewards, unless you do a lot of leisure travel, I vouch for the cash back. Why? Because you can do anything you want with cash, which is not the case with points or miles.

If you need to borrow occasionally, see your bank about a line of credit, secured or unsecured. The interest rate is very close to prime.

 

[Quarter Mile'r]

V.I.S.A.

Victims.
In.
Satan's.
Alliance.


Line of credit is what I did too, paid off the credit card and only use
it for emergency. Takes alot of discipline, but pooning is a lot more fun
than racking up a credit card........IMHO

.............QM'r

 

[ace85]

Actually, both of my cards (and I think every CC) have no interest for the first 25 days, so you have to pay it off by then or get charged interest.

I recommend a card that gives you airmiles as using it that much will give you a free flight every year (or 2) which is worth the $39.00 annual fee. I don't have it but I should/would if I used it more than occassional unexpected emergencies or frivolous buys (like the new 48 gal fishtank I bought last week on a whim.)

That is the thing. As soon as you are not paying the whole balance once, you are paying interest on going on all purchases. You have to pay the whole statement amount off to get out of that cycle. And if you cant pay it all this month , then next month you will likely be chipping away at the old balance.

That is where they get you.

 

[noneasgood]

If you want a low interest rate card where the rates should stay pretty stable go with a card issued by one of the big banks, I know RBC and CIBC both have low interest rate cards.

Be careful with American Express and companies like Capital One, Citibank, etc and read every little bit of fine print on the application and card holders agreement. These companies and others like them will use any excuse to jack up your rates. If you are even one or two days late with a payment they usually have clauses allowing them to double or even triple your existing rate. I've heard of situations where some of these companies will delay processing a payment for a couple of days after they receive it if they receive it close to the payment deadline, just so they can jack up your rates. The big banks aren't that likely to jack up the rates even if you make a late payment.

Don't know about that, Let's look at my situation and see if these comments are true.

I have four or five credit cards. I have a CIBC Visa and a BMO mastercard both at interest rates of 18.9% I pay this off monthly. I have an MBNA Mastercard, which has a fixed interest rate of 6.99%. I also have a CITI credit card where the interest is 4.99% in the initial withdrawal of up to $7,000 and get this, there is no time period to pay this off, other than making the minimum monthly payments. I can't remember the normal rate, might be 19.99% or some such rediculous rate.

I also carry a balance on this because it's cheaper than my overdraft.

I also have a home deposit card, I use to fixed up our rental properties. No interest and no payments for a year. So I carry a small balance because I'd sooner have access to the money.

All my payments are paid on-line and I've never had an issue with missed payments or late application of payments.

So based on my personal experience, I would say the above comments are false.

One little tip to avoid being late is you can have the payments automatically taken out of your bank account on a certain date. I have this set up on my BMO Mastercard.

 

[wolverine]

Another thing is that the low interest rate only lasts for a few months just to lure you in and then they jack it up to 20%.

I try to limit my credit card for vacations (hotel, car rental, flight, etc), internet purchases, automotive repairs, big-ticket items like furniture, pay-at-the-pump gas, purchases if Interac is not available, or for emergency use. And I always ensure that I pay the full balance every month - and if I can't then I ride the balance for only a couple of months max.

 

[shak]

I know that I should pay off the balance every month to avoid interest charge. However; I am a graduate student and I dont have a steady in-come. Therefore from time to time, I just cant pay off the charge all at once. The current credit card(BMO Mastercard, Mosiak or whatever its called) that I have interest rate 19.5%.




BTW, thx for all the quick response and suggestions

 

[sirlickheralot]

Yes, but not the 3.99% rate, only the on-going rate.

Actually if you read the fine print on some of these promotional offers you will see they have the right to raise this amount (in some cases up to 23.99%) if you are so much as 1 day late with a payment. If decide to take advantage of one of these promotional rates make sure you make your payment well in advance of the payment due date.

The banks don't usually try to screw you by jacking up your rates because in many cases their credit card clients also have bank accounts, mortgages, investment accounts, etc with them so they don't want to piss people off and risk losing all their business just to squeeze a little more money out of them on credit card interest. Alot of these other credit card issuers don't give a rats ass if they piss you off.

 

[noneasgood]

Actually if you read the fine print on some of these promotional offers you will see they have the right to raise this amount (in some cases up to 23.99%) if you are so much as 1 day late with a payment. If decide to take advantage of one of these promotional rates make sure you make your payment well in advance of the payment due date.

The banks don't usually try to screw you by jacking up your rates because in many cases their credit card clients also have bank accounts, mortgages, investment accounts, etc with them so they don't want to piss people off and risk losing all their business just to squeeze a little more money out of them on credit card interest. Alot of these other credit card issuers don't give a rats ass if they piss you off.

You know, you're constant defending of the banks isn't based on any reality that I'm a part of. For starts they pay about 1-2% lower on their GIC's than say ING (3%) or many other institutions and I personally own 2-3 credit cards that charge a fraction of what the banks do, including Citibank and MBNA. The highest of which is 6.99%. The bank credit cards I own are in the 18-19% interest rate range.

 

[wolverine]

I know that I should pay off the balance every month to avoid interest charge. However; I am a graduate student and I dont have a steady in-come. Therefore from time to time, I just cant pay off the charge all at once. The current credit card(BMO Mastercard, Mosiak or whatever its called) that I have interest rate 19.5%.

Yeah I've been there. Way back when I was a university student, I viewed a credit card as an extra source of income instead of a loan, and I continued to carry that mindset with me for a while. As a result, I carried a large balance for many years, and only got the damnable thing paid off a few years ago. So consider this a cautionary tale.

 

[sirlickheralot]

I have four or five credit cards. I have a CIBC Visa and a BMO mastercard both at interest rates of 18.9% I pay this off monthly. I have an MBNA Mastercard, which has a fixed interest rate of 6.99%. I also have a CITI credit card where the interest is 4.99% in the initial withdrawal of up to $7,000 and get this, there is no time period to pay this off, other than making the minimum monthly payments. I can't remember the normal rate, might be 19.99% or some such rediculous rate.

So based on my personal experience, I would say the above comments are false.

The banks don't promote their low interest rate credit cards you need to ask about them. If Shak doesn't have a steady income and there is any chance that he won't make the scheduled payment right on time I still say the bank issued cards are the safer bet.

 

[noneasgood]

The banks don't promote their low interest rate credit cards you need to ask about them. If Shak doesn't have a steady income and there is any chance that he won't make the scheduled payment right on time I still say the bank issued cards are the safer bet.

Don't know about that 18.9% seems pretty high to me. If you can't make the scheduled payments you shouldn't have ANY credit cards. And if you do own one the rate shouldn't be higher than 8%. Otherwise you're walking into a credit trap. Seems to me if the banks were really your friends they WOULD be promoting the lower interest cards, and well as providing competite GIC rates.

Here is a link on the best rates.

http://www.cannex.com/canada/english/

Also ING also pays about 3% and it very liquid so this is an alternative.

There website is below

http://www.ingdirect.ca/en/

 

[sirlickheralot]

Don't know about that..18.9% seems pretty high to me. If you can't make the scheduled payments you shouldn't have ANY credit cards. And if you do own one the rate shouldn't be higher than 8%. Otherwise you're walking into a credit trap.

18.9% isn't a low interest rate card, like I've already stated you need to ask the bank to give you a low rate card, they aren't going to suggest this card to you. Citibank offers low rate cards but they also set lots of traps in their agreement so they can screw you over for the slightest reason. I have a Citi Mastercard so I am aware of how they do business. I was 2 days late with a payment and they instantly raised my rate to 23.99%. I phoned to complain and they told be too bad I'd have to wait at least 1 year to go back down to the normal interest rate. I went right to the bank and paid off the entire balance on my account and they dropped my rate the very next month. If I didn't have the means to pay off my account in its entirety I would have been screwed and had to pay their ridiculously high rate for an entire year. The people who are victimized by these tactics are the ones who can least afford these punative interest rates.

The banks are far less likely to impose punative interest rates for the reasons I have already stated. I don't work for the banks so I have no vested interest in who Shak gets his card from. If you have a steady income and their is no chance you will ever be late with a payment they by all means go with Citi, Capital, MBNA, etc. I don't really care.

 

[noneasgood]

18.9% isn't a low interest rate card, like I've already stated you need to ask the bank to give you a low rate card, they aren't going to suggest this card to you. Citibank offers low rate cards but they also set lots of traps in their agreement so they can screw you over for the slightest reason. I have a Citi Mastercard so I am aware of how they do business. I was 2 days late with a payment and they instantly raised my rate to 23.99%. I phoned to complain and they told be too bad I'd have to wait at least 1 year to go back down to the normal interest rate. I went right to the bank and paid off the entire balance on my account and they dropped my rate the very next month. If I didn't have the means to pay off my account in its entirety I would have been screwed and had to pay their ridiculously high rate for an entire year. The people who are victimized by these tactics are the ones who can least afford these punative interest rates.

The banks are far less likely to impose punative interest rates for the reasons I have already stated. I don't work for the banks so I have no vested interest in who Shak gets his card from. If you have a steady income and their is no chance you will ever be late with a payment they by all means go with Citi, Capital, MBNA, etc. I don't really care.

Fair enough, I'm not trying to start an argument, just presenting alterate facts. I've never been late on any of my cards and could pay them off if need be, so I don't pay attention to being late. But banks aren't the one's offering me low rates, so I don't have a lot of use for them. But the bigger point is if you use credit cards you have to be able to pay them off monthly, or be able to take advantage of special offers, (ie home deposit, no interest, no payments for a year. Pay the card off day late and the interest is back dated. So decipline is required for all credit cards.

Otherwise you shouldn't own one.

 

[shak]

The banks don't promote their low interest rate credit cards you need to ask about them. If Shak doesn't have a steady income and there is any chance that he won't make the scheduled payment right on time I still say the bank issued cards are the safer bet.

oh, I can make the scheduled payment on time, its just alot of times I can only pay the minimum payment rather than the whole thing.