Comments on: How to Pick the Best Credit Card

By: Paige

Paige — Thu, 09 Apr 2009 16:00:39 +0000

I have to agree with Michael Harr. He makes good points.

You should really research the checking accounts your bank offers. Mine offers a high APR each month if I do x number of debits, get e-statements, and have direct deposit. What they offer is better than any credit card I have seen.

By: Martin

Martin — Wed, 08 Apr 2009 11:16:40 +0000

“I’ve always seen them as useful tools, powerful in the hands of a responsible creditor, and dangerous in the hands of someone unfamiliar with how they work.” Um, I think you meant to say “in the hands of a responsible *debtor*”. The bank that issues the card is the creditor, not the person who uses it.

Anyone thinking of getting their first credit card should absolutely NOT do so until they are already financially stable, with an emergency fund and a budget.

A credit card in the hands of a “needy” person guarantees that momentary pleasure will be traded for years of slavery. College students especially need to watch out for this trap.

By: Eric

Eric — Tue, 07 Apr 2009 22:51:11 +0000

I love credit cards…in a good way.

Solid advice for anyone starting out. I agree that it’s totally a personal situation. Whenever I apply for a new card, you can be sure there’s been a lot of research done beforehand.

By: rob

rob — Tue, 07 Apr 2009 17:19:07 +0000

Credit cards have benefits over debit cards, based on your bank account. Some bank accounts have a flat rate for any number of transactions, others have a limit for that fee and then you pay a small amount per transaction. Using the credit card at all times possible limits your bank account transactions and can allow you to use a less expensive bank account. There are a number of variables with bank accounts, and if you hold this amount in the account you get this free, etc. but I know that my number of transactions would double if I didn’t have a credit card.

By: Travis

Travis — Tue, 07 Apr 2009 17:18:03 +0000

You are paying higher prices because of credit card transaction fees. So if you can manage it a free rewards credit card like the Costco Amex or something similar is good. Amex will refund the membership fee if it doesn’t pay for itself. Not bad if you shop at Costco. However I have done the cut up all cards and do only debit and cash and that works too and i didn’t miss the rewards but they rewards are nice.

By: Kyle

Kyle — Tue, 07 Apr 2009 15:53:54 +0000

What are your thoughts on the Upromise credit cards? The points you earn on most cards are pretty negligible compared to what you are spending so is it worth it to just pump the rewards into Upromise and possible a supported 529?

By: Michael Harr

Michael Harr — Tue, 07 Apr 2009 14:56:45 +0000

I wouldn’t say that credit cards are a useful financial tool or the devil. Rather, I think of them as a nice, strong rope. Some people put ropes to good use while others hang themselves.

Credit cards offer no net value in the accumulation of wealth and that’s why I don’t carry one. They are a convenience tool that makes it easier to spend money, but debit cards offer the same benefit. So let me rephrase. Credit cards are a convenience tool that makes it easier to spend money you don’t have.

In all seriousness, if you really want to get ahead financially, you’re better off without every carrying a credit card.