When should I consider a new credit card?

[archcommus]

I'll be turning 20 years old on Thursday. This May will mark two years of credit history for myself, i.e. May 2005 I got my first credit card in my own name, a Capital One which I've been plenty satisified with. I've made all payments in full since then. At what point, if ever, should I consider getting a new/better card? What kind of benefits would I actually care about or notice? And what kind of cards could be in my reach?

Update 4/6: Okay guys, so last week in the mail I got a letter saying I am pre-approved for an American Express Rewards Gold Card, and that all I have to do is go online or call to accept it and it's mine. Should I do this? Is this card even a little difficult to get? And, is it worth the $110 annual fee for a low-spending, low income college student like myself? It said in the letter my financial records made their decision easy and they want me as a member, lol.

 

[jpeyton]

BetterCreditCard.com

 

[bctbct]

Fill the first one up first, then get another

 

[jagec]

If you don't have a card with a really good rewards program, or if there's a SCREAMING Hot Deal going on, then you get another credit card.

Other than that, no.

I'm happy with my 5%/1% rewards card, and unless my income level changes significantly, a much better rewards card comes out, or they totally nerf mine, I won't be changing anytime soon. I did think about jumping on that free $250 card in Hot Deals, but reading more about it didn't leave me convinced.

 

[GTaudiophile]

My first card was Discover when I was 19. I then quickly moved up to their Platinum card, earning 2% back or more. Then to Citi Platinum Dividend Select and then to AMEX SkyMiles Platinum. What have I learned? While I earn around $250-300 back per year with the cash-back cards, that value is little compared to 2-3 "free" round-trip domestic flights or one international flight. The dollar value of those is easily over $1K.

So my most recent card was a Chase Visa United MileagePlus Platinum. I now use it along with my AMEX SkyMiles as my two primary cards.

 

[Reckoner]

Should've applied for the chase freedom $250 offer I had posted in the hot deals forum

 

[LS20]

Originally posted by: GTaudiophile
My first card was Discover when I was 19. I then quickly moved up to their Platinum card, earning 2% back or more. Then to Citi Platinum Dividend Select and then to AMEX SkyMiles Platinum. What have I learned? While I earn around $250-300 back per year with the cash-back cards, that value is little compared to 2-3 "free" round-trip domestic flights or one international flight. The dollar value of those is easily over $1K.

So my most recent card was a Chase Visa United MileagePlus Platinum. I now use it along with my AMEX SkyMiles as my two primary cards.

what redemption level would you need to actually get a flight, though

all the ones ive seen are ~25,000pts (~25,000$), which is equivalent to 250$ cashback, which is how much a trip cost, anyway. so my personal preference is to get something i can cash out.

(today, i redeemed all of my "points" and cut away all cards that dont give cash rewards. transfered the ones i could to my FF account. hard set "points" are dumb)

 

[olds]

See sig.

 

[Mallow]

I had a basic MBNA Mastercard for years... I go to Sam's club a lot and I wanted a rewards card as my primary so I got the discover card w/ 12K promotional miles, same as getting $120 for free. Plus I get 1 mile on every dollar I spend.

 

[RossMAN]

Originally posted by: archcommus
What kind of benefits would I actually care about or notice? And what kind of cards could be in my reach?

Most consumer cards should be within your reach depending on your credit history, debt to service ratio and other factors.

I would say look for no annual fee and best rewards.

 

[archcommus]

Originally posted by: RossMAN

Originally posted by: archcommus
What kind of benefits would I actually care about or notice? And what kind of cards could be in my reach?

Most consumer cards should be within your reach depending on your credit history, debt to service ratio and other factors.

I would say look for no annual fee and best rewards.

My history *should be* two years of perfect records as of this May. My balance varies from $100 - $400 a month usually, but my stupid limit is only $800 at the moment. I have a few student loans in my name.

I definitely want no annual fee, and I've looked over all the cards at bettercreditcard.com and it seems a bit hard to pick the one with the "best" rewards. Everything has its pros and cons. I'd like some kind of AMEX just because of their known quality customer support, but I don't want to use a card that I can't always use everywhere, and AMEX isn't accepted at a lot of places. However there is that American Express Blue Cash
card, which says "up to 5% cash back on nearly all purchases." How close to 5% would it normally be, and how can you know?

Or, sticking with Visa and MC, there are still a lot of choices on that website.

 

[RossMAN]

Are you a member of CostCo or considering joining?

 

[KillerCharlie]

Originally posted by: archcommus

Originally posted by: RossMAN

Originally posted by: archcommus
What kind of benefits would I actually care about or notice? And what kind of cards could be in my reach?

Most consumer cards should be within your reach depending on your credit history, debt to service ratio and other factors.

I would say look for no annual fee and best rewards.

My history *should be* two years of perfect records as of this May. My balance varies from $100 - $400 a month usually, but my stupid limit is only $800 at the moment. I have a few student loans in my name.

I definitely want no annual fee, and I've looked over all the cards at bettercreditcard.com and it seems a bit hard to pick the one with the "best" rewards. Everything has its pros and cons. I'd like some kind of AMEX just because of their known quality customer support, but I don't want to use a card that I can't always use everywhere, and AMEX isn't accepted at a lot of places. However there is that American Express Blue Cash
card, which says "up to 5% cash back on nearly all purchases." How close to 5% would it normally be, and how can you know?

Or, sticking with Visa and MC, there are still a lot of choices on that website.

Yeah just look at the fine print. It's much less than 5% until you hit $6500 in a year. Once you hit that, it's only 5% for certain purchases. I just got a new card after a lot of searching and decided that the Chase Freedom Visa was the best for me.

 

[Skeeedunt]

Don't forget that most AMEX and other Platinum/Diamond/Plutonium cards give you perks like extended warranties, rental car insurance, and a few other things (read the fine print of course).

 

[archcommus]

Originally posted by: RossMAN
Are you a member of CostCo or considering joining?

Nope, not worth the $50/year or whatever it is to me.

My most significant purchase by far is food, both grocery and dining out, so maybe something that focuses rewards on that would be best.

 

[RossMAN]

http://www.fatwallet.com/forums/messageview.php?catid=52&threadid=100210

 

[Reckoner]

Originally posted by: archcommus

Originally posted by: RossMAN
Are you a member of CostCo or considering joining?

Nope, not worth the $50/year or whatever it is to me.

My most significant purchase by far is food, both grocery and dining out, so maybe something that focuses rewards on that would be best.

Here you go

 

[archcommus]

Okay guys, so last week in the mail I got a letter saying I am pre-approved for an American Express Rewards Gold Card, and that all I have to do is go online or call to accept it and it's mine. Should I do this? Is this card even a little difficult to get? And, is it worth the $110 annual fee for a low-spending, low income college student like myself? It said in the letter my financial records made their decision easy and they want me as a member, lol.

 

[dullard]

Annual fees are almost always a very bad idea. There are a few exceptions, but you probably don't fit any of them. Move along.

 

[archcommus]

Originally posted by: dullard
Annual fees are almost always a very bad idea. There are a few exceptions, but you probably don't fit any of them. Move along.

Don't all American Express cards except for Blue carry annual fees though? And I figured if I was ever offered a chance to have an AMEX that I should.

 

[dullard]

Originally posted by: archcommus
Don't all American Express cards except for Blue carry annual fees though? And I figured if I was ever offered a chance to have an AMEX that I should.

Do you mind if I quote yourself?

Originally posted by: archcommus
I definitely want no annual fee...I'd like some kind of AMEX just because of their known quality customer support, but I don't want to use a card that I can't always use everywhere, and AMEX isn't accepted at a lot of places.

Two bullseyes right in the heart of that card. It violates the two rules that you want.

People on these forums have a hardon for AMEX, but I don't really see why. I guess I was tainted by AMEX's old policies from 20 years ago. But oh well, they are better now. AMEX is a good company, but if you rarely use a card, why waste $110/year?

I think most people should have 3-5 cards:
(1) A reward card that best meets their needs. Studies have shown Discover's 1% cash back tends to be the most free benefit for most people. However, there definately are better cards if you aren't an average purchaser.
(2) A backup Visa/MC for purchases everywhere in case no other payment form works.
(3) A third card for emergencies only that you keep $0 balance on and never carry with you. Suppose your wallet is stolen, you can still go home and get by with your 3rd card while waiting for the other cards to be mailed to you.
(4-5) Optional different reward cards for specialty uses. Like 5% back on purchases at certain stores or whatever reason you want different rewards.

Coincidently, 3-5 cards with one card carrying a $0 balance (you don't have a $0 balance even if you pay off in full each month) gives right near the best credit score. Fewer cards can hurt, more cards don't help. And despite all the people who will be angry at me for saying this, one credit score company gives a slight benefit on your score if you have a CC you don't use.

So to answer your original question, you should consider more cards now.

 

[archcommus]

Thanks for the info. Funny that I contradicted myself there. It's only because I posted that a couple weeks ago, and that was my mindset at the time, and then I was thinking I wouldn't even be approved for a non-Blue AMEX. Then I got this pre-approval letter in the mail and was surprised and thinking I should really do it.

Why was I thinking I should really do it? I don't know. I guess because of influence on here. I just felt like it's a really good card with a really good company and could help my credit score, so I should use it for my daily purchases and only use my Capital One when AMEX isn't accepted or for emergencies like you said. But as you said, I can get a card that is accepted everywhere and has benefits and still with no annual fee.

In the end, I'm only 20 years old, so throwing away an AMEX card chance just seems wrong, heh.

 

[LS20]

1. get a AMEX card because they have THE best perks (ie travel insurance, extended warranty, stolen/damage protection, etc).. and a generous limit
2. get an MC/VISA card because they can be used as backup where AMEX is not accepted


for amex, get Blue Cash or Sky... i prefer Sky because i think i get better rewards that way

discover is junk. capital one is JUNK. i have good credit factors (good score, good salary, good history) and have 10k+ limits on all of my cards. my cap 1 -- which ive had the LONGEST history with -- is at 2000!!!! its now hidden in my car in case i drive somewhere and forget to bring my wallet.

 

[archcommus]

Originally posted by: LS20
1. get a AMEX card because they have THE best perks (ie travel insurance, extended warranty, stolen/damage protection, etc).. and a generous limit
2. get an MC/VISA card because they can be used as backup where AMEX is not accepted


for amex, get Blue Cash or Sky... i prefer Sky because i think i get better rewards that way

discover is junk. capital one is JUNK. i have good credit factors (good score, good salary, good history) and have 10k+ limits on all of my cards. my cap 1 -- which ive had the LONGEST history with -- is at 2000!!!! its now hidden in my car in case i drive somewhere and forget to bring my wallet.

Yeah I've been with C1 for two years and while they've been very good to me and haven't given me any problems, my limit is still only $800. I don't spend more than that per month anyway but I'd like a much higher limit.

So you say to get Blue, so I can have the benefits of AMEX but without an annual fee. Is there really any reason for someone like me to ever consider their charge cards then? They just seem so prestigious, lol.

 

[LS20]

Originally posted by: archcommus

Yeah I've been with C1 for two years and while they've been very good to me and haven't given me any problems, my limit is still only $800. I don't spend more than that per month anyway but I'd like a much higher limit.

So you say to get Blue, so I can have the benefits of AMEX but without an annual fee. Is there really any reason for someone like me to ever consider their charge cards then? They just seem so prestigious, lol.

No reason to get charge cards -- gold, green, etc -- unless you purchase for a business or something and need the extra ceiling

Throw the C1 under the mattress and replace it with a Citi Dividend (cashback) or something else.