I'm wondering if I should look for one with low interest, no annual fee, points, cash back, bonus', reward miles... ect.
I think that a non-negotiable woudl be no annual fee. If I don't plan on ever carrying a balance, EVER AGAIN, then the interest rate doesn't really matter. So that leads me to cash back/points/reward miles ect...
I'm wondering how people in the pf word have chosen which credit product they use?
Any tips?
I have an airlines card, but it has a $75 annual fee. I'm okay paying the fee though cause the rewards are awesome...to include a $50 companion ticket each year, which automatically makes the fee worth it.
ReplyDeleteMy advice, don't write the fee off totally, but definitely make sure if you are paying one it is worth it.
We don't get a lot of choice in NZ unfortunately. Maybe some people can negotiate to waive their fees and things, I don't know. I think my annual fee is about $20. I went with this card because, well, it's with my bank and keeping it all in one place works for me! I would love a cashback card but have never come across one. My rewards programme is pretty standard, just earning points which convert to real dollars on a special card that you can use to buy stuff at certain retailers. I usually make enough to cover my card fees and get some freebies as well. Unless you carry a balance, interest rates shouldn't be much a concern for you.
ReplyDeleteWhen you are ready, you could call your current provider, and ask what rewards you can attach to that card, giving up the low rate that you pay for. This way you keep that good length of credit history. I just switched my MC to cash back(.5%) from airmiles.
ReplyDeleteI just got the citibank driver's edge mastercard a couple of months ago. i did so because you get 2% back on purchases towards the price of a car - new or used, whichever model and brand you want. I will be buying a car within the next 3-4 years so i'm hoping to get at least $1000 back from all my purchases!
ReplyDeleteIn January, I switched from the CIBC Visa Classic card (which had absolutely no rewards) to the CIBC Visa Dividend card which gives ~1% cash back. No fees. High interest rate (19.5%) but I've never in my life carried a balance on a credit card so that wasn't an issue. At the end of the year, they will credit my bill for the amount I've earned, which at this moment is around $45. It's definitely better than nothing. I'm not ready for an annual fee yet either.
ReplyDeleteIf you are only planning on using your card for odds and ends then something like this might work.
I have three credit cards:
ReplyDelete1. Banana Republic card - can only use at Gap, BR & Old Navy and I use it to get $10 gift cards every few months.
2. Bank of America CC - this one was opened when I first graduated college because it would be two months until I received my paycheck and I needed something to hold me over. I use it only for emergencies and like that it's connected to my bank account.
3. Amazon CC w/ Chase - this one I got a few months ago since I buy things from Amazon frequently. The rewards are pretty good, but I don't use it enough as I should because I'm afraid of balances... it's nice to look over time and see how many points you rack up.
I only use my CC for huge expenses (to get points) or emergencies. I have thought about doing all of my purchases on one, but I'm not organized enough and disciplined yet. I don't know if I trust myself--the debit card depletes the bank account immediately and I like that.
It is hard to find reviews of Canadian cards, I find.
ReplyDeleteCurrently I have a VISA Select card with a low interest rate of 11.5%. This is because there is still a balance on the card and I want it paid off! Previously the card was the AeroGold card, which I liked because it covered the insurance on rental cars. I often rent cars for work/leisure so the annual fee ($120) got cancelled out with just one rental. My new VISA Select card still has an annual fee, but since this is my longest standing credit account, I didn't want to close it out or stop using it. $29 is still better than 19.5% on a balance.
I've got a couple other cards too (UGH, bain of my existence) but they are mainly to roll low interest balance transfer offers through. Once is paid off, and the other is carrying a balance at 1.99% until December. I'll need to transfer it again soon since I'm still paying off Credit Card #1 at a higher interest rate.
Congratulations by the way on paying off your credit card debt!