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moana posted:I suppose I was thinking that all of the daily transaction commissions would more than overwhelm the interest. Maybe that was true when I got my first credit card, but I really don't know what it is now. You're probably right. It's all risk based pricing so the interest rate is offset by the risk (it's the margin where the real money is).
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Oct 17, 2011 03:39
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moana posted:I suppose I was thinking that all of the daily transaction commissions would more than overwhelm the interest. Maybe that was true when I got my first credit card, but I really don't know what it is now. You're probably right. I see rewards cards so far as good as long as you know the rules of the game: -Never Carry a Balance -Remember that you have to pay off whatever at the end of the month -Addition to point #2, if you can't pay for it out of your bank account now, don't buy it -Focus it towards what you can make the most off of I have the BoA cash rewards 123 since I bank with them already and it has 3% on gas and I drive a lot. So I always use my cards when grocery shopping (2%) and paying for gas. I use it a bit on minor stuff (1%), but not completely. I also know that BoA limits their payouts on groceries and gas to a max spending of $1,500 a quarter (so i can make a max of $45 a quarter or $180 a year on gas, less when factoring in groceries). BoA also adds an extar 10% if i move said $45 right into my bank account, which makes it a max of $49.5. So anyway, the point is that it is small change, but I am now getting a return off of normal spending that I otherwise would not get. Any returns are completely irrelevant if you hold a balance since fees are so drat high. I'm glad for this thread too since it inspired me to write this on paper so I can better see what I am getting. I have gas and groceries covered, any thoughts on a good 2nd card for other expenditures? Beyond rent stuff that I would not use it for, the only main thing I do is eat out and occasionally buy stuff off amazon (not enough for a specific amazon card). I don't fly often and while I am open to points, I always preferred a cash percentage. And hey, I found out Comcast dinged me for some phantom $50 I apparently owe them on my credit score. Anyone know the quick/easy way to challenge that? Edit: Figured it out, my credit card application got rejected by Citi, and they said it was on TransUnion that they used. So I went through transunion, got a credit report (shouldn't count against my yearly free statement because i got rejected, but i could be wrong), and you can dispute through the report. Pretty easy actually. Duckman2008 fucked around with this message at 16:16 on Oct 17, 2011 |
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Oct 17, 2011 15:15
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I have the Amazon card and it's lovely. I guess it might be less lovely if I had ever carried a balance from one month to the next, but I never have. I used to be terrified of credit cards because I see so many people in debt, but now I use this one pretty much exclusively. You only get screwed with credit cards if you're foolish and/or inattentive to your finances.
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Oct 17, 2011 17:27
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baquerd posted:It's confusing to me how so many people misuse credit cards. Keep a 10-15% max of credit limit load on your card, pay it off every month, win. If once in a blue moon you actually need the credit, it's nice to have. It really is that simple. Likewise, I'm completely blown away by the number of people who gently caress themselves with a credit card. Where on earth do so many people get the idea that a credit card is just free money? A CC is a very simple concept, and following a couple very basic, very common sense rules make it pretty hard to get into trouble. I understood this when I was like 12, how can you be an adult and not "get" it? I don't even have a defined or written budget (I really should, though...), I just know about what my monthly expenses should be and casually keep a running tally of my account balances and sanity check them with my online balances every few days. By 1) never putting it on credit if I couldn't currently pay cash for it, and 2) ALWAYS pay off the statement balance no matter what, it's practically impossible to bone yourself barring some extreme corner-case emergency. I do virtually all of my spending on my rewards card, and have NEVER carried a balance on it, so the rewards are literally just free money compared to using a debit card the same way (what I was doing before). I have a second card with my CU with a much lower APR (6.9%), 10k limit, and no rewards/fees that I keep around in case of a real emergency occurs and I have to charge several thousand dollars that I won't be able to pay off at end of month. Doing that on my rewards card with its crazy ~17% APR would be financial retardation. Fortunately, I haven't had any large emergencies like that yet. Guinness fucked around with this message at 18:54 on Oct 18, 2011 |
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Oct 18, 2011 18:51
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I have a credit card with a low-ish limit, and I routinely have a balance of about 40% the limit by the end of the month (which I always pay off in full). Mint.com is advising me that this isn't great for me credit score. Should I find a card with a higher limit?
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Oct 18, 2011 22:01
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Large Hardon Collider posted:I have a credit card with a low-ish limit, and I routinely have a balance of about 40% the limit by the end of the month (which I always pay off in full). Mint.com is advising me that this isn't great for me credit score. Should I find a card with a higher limit? In general, you should be asking for limit increases on your cards every once in a while (I do this like once a year) until you get it to where you want it.
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Oct 18, 2011 22:30
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OK, I'll call and try to get it raised. I got the card as a freshman 2 years ago, when I wasn't buying groceries, gas, etc. I've been using the card primarily to build credit, since mummy and daddy would bail me out of any emergency, but I'm looking to take some baby steps towards independence. Thanks for your help.
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Oct 18, 2011 22:41
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moana posted:I would recommend having at least 2 cards, not just for this reason. If one of your cards is compromised and you have to cancel it, it's good to have a safety CC sitting in a drawer, to keep your credit history long and your limit high, and in case you actually really need it. If you're only concerned about your limit, then you should ask them for a limit increase. Worst they'll say is no. What about paying off what's on the card every week or so? That's what I'm doing, to make sure I don't screw anything up. Does it matter that there's a $0 balance when the statement period ends?
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Oct 18, 2011 23:29
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tzirean posted:What about paying off what's on the card every week or so? That's what I'm doing, to make sure I don't screw anything up. Does it matter that there's a $0 balance when the statement period ends? Generally no, just pay your bill in full before the due date and you'll never pay interest.
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Oct 18, 2011 23:34
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royalejest posted:Generally no, just pay your bill in full before the due date and you'll never pay interest. I'm not worried about interest, just my balance-to-limit ratio. Is it a problem if that ratio goes higher than the ideal max of 30% or whatever if, by the time the statement's issued the actual balance is $0?
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Oct 19, 2011 14:21
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tzirean posted:I'm not worried about interest, just my balance-to-limit ratio. Is it a problem if that ratio goes higher than the ideal max of 30% or whatever if, by the time the statement's issued the actual balance is $0? Credit cards typically report balance one per month, and not necessarily at the time of the statement. You should ask them to increase your credit limit if your average utilization is that high.
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Oct 19, 2011 14:53
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baquerd posted:Credit cards typically report balance one per month, and not necessarily at the time of the statement. You should ask them to increase your credit limit if your average utilization is that high. It isn't that high yet, it was more of a preventative question. I'll make sure to make payments before I get close to 30% in that case, thanks. I've had the card about two months, they're likely not inclined to raise my limit at the moment.
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Oct 19, 2011 16:00
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I'm looking to put a small amount of money ($15k) for a very short term (6 months) into something that will give me at least a little bit more than leaving it all in my savings account. Is 0.40% for a 6-month CD a good rate? Is there a better low risk option? (Sorry if I missed an investment thread; I only found the one for long-term investments.)
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Oct 19, 2011 23:02
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muscat_gummy posted:I'm looking to put a small amount of money ($15k) for a very short term (6 months) into something that will give me at least a little bit more than leaving it all in my savings account. Is 0.40% for a 6-month CD a good rate? Is there a better low risk option? (Sorry if I missed an investment thread; I only found the one for long-term investments.) Short term interest rates are extremely low, and I highly doubt you wish you take on a risky investment for this money that you need in six months. In this environment, you're not going to be well compensated for locking up your liquidity, just leave it in a savings account would be my recommendation.
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Oct 19, 2011 23:09
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You can get better yields than a 0.40% CD in a "high yield" savings account from somewhere like ING Direct or Ally Bank. My ING Direct savings account is 1.0% APY, without forfeiting any liquidity (beyond the ~3 day transfer time).
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Oct 19, 2011 23:20
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TraderStav posted:Short term interest rates are extremely low, and I highly doubt you wish you take on a risky investment for this money that you need in six months. In this environment, you're not going to be well compensated for locking up your liquidity, just leave it in a savings account would be my recommendation. Would there be a downside to it, though? My savings account gives all of 0.18% so it's at least more than that. A tiny bit more. $15k is not a lot of money.  Those high yield savings accounts look better, but will I be selling my soul to a bank in the process? I'm a credit union type of person.
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Oct 20, 2011 00:33
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Wow and I thought term deposits in Australia at 5.00% for 6 months were low.
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Oct 20, 2011 00:37
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imnotinsane posted:Wow and I thought term deposits in Australia at 5.00% for 6 months were low. Yeah, but we can also get mortgage loans below 4%, and car loans at 0%. Rates are low in the USA on both ends.
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Oct 20, 2011 00:49
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muscat_gummy posted:Those high yield savings accounts look better, but will I be selling my soul to a bank in the process? I'm a credit union type of person. You will probably have to put it in a bank (and most likely an online bank at that) vs. a credit union, yes, unless you live near one of those awesome credit unions that offer great rates on things like high yield checking accounts (but then watch for loopholes) but... nothing bad happens to you when you put your money in a savings account. It's FDIC insured. You just stick your money in there, leave it there, and close the account when you want to take it out. So long as you pick an account without a balance minimum and don't plan on making excessive withdrawls (usually greater than 6 in a month - in which case, a CD isn't right for you either) - nothing bad happens. I have used both American Express (1%) and Discover (1% or 1.05% if you have and go through your Triple A membership) savings accounts, other people use ING and Ally - all are good and no hassle.
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Oct 20, 2011 01:00
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muscat_gummy posted:Would there be a downside to it, though? My savings account gives all of 0.18% so it's at least more than that. A tiny bit more. $15k is not a lot of money. Karma hit most of it on the head. It's just another type of bank that can afford to pay you more interest because they do not have a lot of real estate to have to pay for. It's likely a very good place with minimal risk, equivalent to a credit union.
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Oct 20, 2011 01:18
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Well, I'm one of those Occupy Wall Street supporters; that's why I'm iffy about big banks such as Capital One. It's an ideological thing, I guess. But thank you for all of the info; I just need to make a decision now! 
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Oct 20, 2011 02:22
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Can someone explain to me (or direct me to where it is explained) about this whole thing about not wanting to carry above whatever percentage on your card? I usually put between 25-40% on my card every month and I had no idea I was doing anything wrong. Why is this bad? Edit: I pay off the entire balance every month, for the record.
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Oct 20, 2011 03:45
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Mighty Amoeba posted:Can someone explain to me (or direct me to where it is explained) about this whole thing about not wanting to carry above whatever percentage on your card? I usually put between 25-40% on my card every month and I had no idea I was doing anything wrong. Why is this bad? People try to game utilization rates.
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Oct 20, 2011 04:19
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LorneReams posted:People try to game utilization rates. What is the goal of doing so?
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Oct 20, 2011 04:26
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Mighty Amoeba posted:What is the goal of doing so? Utilization is one of the drivers of FICO (and most credit scoring actually)
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Oct 20, 2011 04:32
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Lower (but non-zero) utilization rates can raise your credit score slightly because it gives the impression that you don't need all of your credit to survive. In reality unless you are planning a major purchase like a house or are using 100% of your credit every month it probably doesn't matter that much. Much more important to be debt-free. But it never hurts to ask your card to raise your credit if you want and aren't prone to over-spending; the worst they can do is say no.
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Oct 20, 2011 04:33
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Sophia posted:Lower (but non-zero) utilization rates can raise your credit score slightly because it gives the impression that you don't need all of your credit to survive. In reality unless you are planning a major purchase like a house or are using 100% of your credit every month it probably doesn't matter that much. Much more important to be debt-free. But it never hurts to ask your card to raise your credit if you want and aren't prone to over-spending; the worst they can do is say no. Ahh, I see. I just applied for and got an AmEx cash back card for the higher rewards than my Citi, and they said something about that I didn't really understand when they gave me a fairly low limit, so I'm glad to know what that was about. Looks like getting the second card is also a solution to lowering my utilization rates.
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Oct 20, 2011 04:41
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Guinness posted:Likewise, I'm completely blown away by the number of people who gently caress themselves with a credit card. Where on earth do so many people get the idea that a credit card is just free money? A CC is a very simple concept, and following a couple very basic, very common sense rules make it pretty hard to get into trouble. I understood this when I was like 12, how can you be an adult and not "get" it? The problem with common sense is that it isn't that common. Financial literacy isn't taught in schools and the entire credit industry is based around convincing people that they can "afford the payment" rather than letting them realise how much they'll be paying in the long run if they pay out the minimums only. I'd be interested to read a 'dumb financial decisions' thread. Like a mini-version of zaurg or tuyops thread just for one-off dumb decisions to serve as warnings to other goons. I've got heaps of stories from my previous jobs in retail about the various credit traps on offer and I'm sure there's plenty of people out there who have tales to tell about how one bad decision they made later on hit them hard in the wallet. Then again I'm sure anyone who visits here already knows about the different ways you can screw up your life/credit score or at least can figure it out on their own.
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Oct 21, 2011 07:21
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froglet posted:The problem with common sense is that it isn't that common. Financial literacy isn't taught in schools and the entire credit industry is based around convincing people that they can "afford the payment" rather than letting them realise how much they'll be paying in the long run if they pay out the minimums only.
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Oct 22, 2011 10:01
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"froglet" posted:The problem with common sense is that it isn't that common. Financial literacy isn't taught in schools and the entire credit industry is based around convincing people that they can "afford the payment" rather than letting them realise how much they'll be paying in the long run if they pay out the minimums only. Please link that thread here if you make it.
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Oct 22, 2011 15:39
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I'm not sure if this should go here or in the CV/Resume thread, but these are (very) newbie questions, so: What's the typical etiquette on looking for a new job without quitting your old one first? I just started a low-level retail job last month, but I would like to find something with better pay, and currently having a job helps in the search, right? How long would most people wait before applying somewhere else? Should I tell employer or not that I'm looking elsewhere? Thankfully I don't have much debt or bills right now, so I'm able to save up fairly easily if it takes a while.
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Oct 22, 2011 19:19
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I have a question about whether I should take up a credit card offer I got in the mail. The offer is for an American Express Blue Cash Everyday Card and it looks pretty good: 3% cash back on groceries, 2% on gas and "department stores" and 1% on everything else with no annual fee and an okay interest rate (17.24% variable). Considering two of my biggest credit card uses are groceries and gas it's almost as if they are targeting my demographic with those rewards  . It would also be nice to have a card I could use where Visa isn't accepted or if my Visa ever got stolen (or vice versa).Right now I have three credit cards: two store cards and a Visa. The store cards are a JCPenny card that I never use (but which was my first credit card account from this April) and a Kwik Trip card that I got because there were two stores right by my old place and because it had good introductory rewards (5% rebate on gas, 10% on in-store purchases) which have since expired. Both of these cards have $500 limits and sucky interest rates but I don't spend much on them and always pay them in full so those haven't been an issue for me. My Visa is a "Golden Rewards" card I got through a local credit union as my first "real" credit card. It has a 10.9% fixed interest rate and a $1000 limit. I have it as part of a joint account with my father because at the time I applied for it the only credit history I had was that one payment I made on that JCPenny card so they wouldn't approve me by myself. As a credit card it's good but as a rewards card it sucks with only 0.5% cash back. Like my other cards I've always paid it in full every month. None of my cards have annual fees. My main concern with taking this offer has to do with that Visa. When I applied for it, the lady at the credit union said that I could have my father taken off of the account after 1 year. What I'm wondering is how getting another credit card would affect that. I'm not sure if getting another card would make me look like a bigger risk or if it would actually help by decreasing my overall utilization and increasing my total available credit. I was also thinking about calling them in January and asking for a limit increase, although if I got another card that would be a little less pressing (I managed to max out the Visa last month with expenses related to moving; I usually don't put more than $500 a month on it).
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Oct 22, 2011 19:46
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Miracon posted:What's the typical etiquette on looking for a new job without quitting your old one first? I just started a low-level retail job last month, but I would like to find something with better pay, and currently having a job helps in the search, right? How long would most people wait before applying somewhere else? Should I tell employer or not that I'm looking elsewhere? This goes for everyone: even if you don't plan on switching jobs anytime soon, you should still be looking for and applying to other jobs to keep up on what skills are most in demand and what kind of salary you are worth.
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Oct 22, 2011 19:52
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Mr.Radar posted:I have a question about whether I should take up a credit card offer I got in the mail. The offer is for an American Express Blue Cash Everyday Card and it looks pretty good: 3% cash back on groceries, 2% on gas and "department stores" and 1% on everything else with no annual fee and an okay interest rate (17.24% variable). Considering two of my biggest credit card uses are groceries and gas it's almost as if they are targeting my demographic with those rewards There's a credit card thread that would likely be a huge resource for you. Take a look!
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Oct 22, 2011 22:42
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TraderStav posted:There's a credit card thread that would likely be a huge resource for you. Take a look! Thanks for pointing that out. I've been lurking BFC on and off for months but I somehow overlooked that thread. 
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Oct 22, 2011 23:56
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I currently have a BoA credit card with a $0 balance and 5,000 limit. This is my only card. In response to their future debit card fee crap, I've opened up an account with a local credit union. They have a "Platinum Rewards Visa" at 9.9% APR that the lady I opened my account with said my credit would be more than good enough for. Should I go ahead and open a card with the credit union? Would it hurt to have 2 credit cards?
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Oct 23, 2011 03:24
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edit: nm, my mistake
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Oct 23, 2011 03:45
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"zelah" posted:I currently have a BoA credit card with a $0 balance and 5,000 limit. This is my only card. Woah, what debit card crap? Edit: ah, $5 a month to use a debit card. Total bullshit. The biggest thing tying me down to bank of America is a pretty good savings rare (just over 1%) and honestly I've been with them over 8 years and they treat me really well as a result. The probable result for me is to not use my debit card (which I am trending towards anyway) and just pay off credit cards every month. But I will at least research other options. Duckman2008 fucked around with this message at 13:39 on Oct 23, 2011 |
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Oct 23, 2011 13:16
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zelah posted:I currently have a BoA credit card with a $0 balance and 5,000 limit. This is my only card. From this very page: moana posted:I would recommend having at least 2 cards, not just for this reason. If one of your cards is compromised and you have to cancel it, it's good to have a safety CC sitting in a drawer, to keep your credit history long and your limit high, and in case you actually really need it. If you're only concerned about your limit, then you should ask them for a limit increase. Worst they'll say is no.
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Oct 24, 2011 23:52
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Brennanite posted:From this very page: Ah I'm sorry. I remember reading the last part about that post regarding asking for limits but I guess I missed the top part. Thanks.
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Oct 27, 2011 04:03
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