How to pick a CC?

**Rangia** · 09-01-2009, 08:53 AM

Ok, long story short... Our Visa Credit Card account through our bank was closed. The lender no longer carries this type of service. Hubby and I don't really understand but whatever. So our bank offered us a new Master Card. She told us we would get 7.93% interest rate and a yearly fee of 40 Euros. The perks are free travelers insurance. So we went with it.

Now we have received the cards. I am one who likes to put groceries on it and then pay it off at the end of the month. Less complicated for me. Well low and behold, I got the statement. I get charged a fee for using it. I am not sure what it is called in English but "Sollzinsen" German. Not only that but instead of the promised 7.93% interested that we were promised and on the form we signed for the CC it is now 14.93% interest. Our Visa was 12% interest with a yearly fee of 10 Euros.

With the other issues we have had with out bank lately, we are shopping around for a new account. However, I am also shopping for a new Credit Card. Perhaps not one through the bank we will select. So I am interested in what things should I be looking at to get the best deal? I am not sure if a higher yearly rate is better or not? What sort of interest rates are considered good? What about perks? Miles? or anything like that?

The only thing it is for is to purchase and pay off or otherwise large emergencies.

Thanks for the help.

**Greebo** · 09-01-2009, 09:07 AM

Points are nice and all that but honestly? You're better off just saving up whatever your current credit limit is in an account you won't touch, use a debit card, and forget the credit card rip off artists who will change the terms on you at the drop of a hat.

**Greebo** · 09-01-2009, 09:08 AM

Oh and, why do you care about the interest if you intend to ALWAYS pay off the card each month?

**a.nonymous** · 09-01-2009, 10:34 AM

Originally Posted by Rangia

I am not sure what it is called in English but "Sollzinsen" German. Not only that but instead of the promised 7.93% interested that we were promised and on the form we signed for the CC it is now 14.93% interest.

Sollzinsen = interest.

I assume the interest is accumulating immediately. As for the 14.93% vs 7.93%, you'd better start reading the fine print. Maybe it's only with selected vendors.
Or could it be that you withdrew cash from an ATM with the card? In that case, interest rates typically are quite a bit higher for cash wthdrawals.

At the end of the day, clinging onto credit cards out of laziness (versus planning ahead) typically ain't the best of signs that you're really committed to debt freedom.

**Preston** · 09-01-2009, 12:38 PM

Cancel the stupid credit card. Any cc with an annual fee is a rip off in my book.

Just find a new bank, get their debit card, and use that one. That way you aren't subjected to the CC shell game.

**Palooka** · 09-01-2009, 11:13 PM

Yeah, those annual fees are just a rip off. I would pay it off and cancel it.

**Palooka** · 09-01-2009, 11:15 PM

Originally Posted by Greebo

Oh and, why do you care about the interest if you intend to ALWAYS pay off the card each month?

She also said large emergencies in the post.

**Greebo** · 09-02-2009, 06:13 AM

How often is she expecting a "large emergency" to happen that makes her worry about the interest rate?

If you have a genuine emergency and need $$, truly desperate, and need to use the credit card, interest rate is the last of your worries...

Course, when I was in college I had a very different definition of emergency...like, we were out of beer, we were out of pizza...

**Rangia** · 09-02-2009, 10:29 AM

I just might be in a poor mood lately, but I really do have to say what I think. To me being frugal is about using my money wisely and knowing where it is going. This year is the first year I have used credit in 11 years but it was a necessity. There was no way around it. I hate the fact that we had to use it but life has a way of changing things up. For the record, I did have the emergency fund established (approx. 5.5k Euro) but it was eaten up quite fast.

I stopped coming to this board because I felt everyone lived in their little boxes and if you couldn't fit in it, then you were treated negatively. I really do like some of you guys but not everything is black and white.

Yes, I require a credit card and as far as I am concerned if I ever have to use it, I want the best deal. It is my right as the consumer to get the best from any product/service.

Which of course brings me to the point of large emergency, I live thousands of miles from my parents and siblings. If a family member suffers from anything serious like Stroke, Heart Attack, etc (which has happened twice) this can be taxing on finances when you have to fly internationally (possible even back and forth a few times) and then stay for an extended length of time. So I find that I would need too much for a "emergency" account for this purpose. I would rather dump that kind of money into a retirement fund and then deal with the credit card bill should this arise.

**beks37** · 09-02-2009, 11:46 AM

My advice is to look for a card that has no annual fee. There are a bunch out there. Not sure about the interest rate. I'm sure some cards will have an "advertised rate" like starting at 4.99%, then when you apply and are approved, they will adjust it based on your credit report information. Maybe that's what happened in your case, but not sure.

I, too, keep a credit card for certain things. I also pay it off each month so as to avoid interest charges. I think it is okay to have a credit card as long as you are disciplined in using it and paying it off timely.

**frugalfranny** · 09-02-2009, 01:10 PM

It was just on TV this morning that the cc co's are pulling back on all their perks and if you were counting on saving your 'points' for some trip or etc. that it probably won't happen. Lots of them are cancelling those.

My disc. card cashback has already gone from a $20 'turn in amt' to $50. Quite a jump when it is basically pennies on the dollar.

I would cancel any card that charged an annual fee the instant that I got the notice. Shop for one w/o a fee. Also, while shopping, might as well look for one with a lower int. rate......not just a low intro. rate. (for those times that a large emer. might happen.) Wrap it up in one shot if you can then you won't be 'scrambling' when you have to carry a balance.......if it happens......which you hope it won't.