Quote:
Originally Posted by Whostheboss
The only CC or 'line of credit' i've ever taken out was Sleepys when i bought my mattress. I paid it off. Called them and closed it. A few months later i checked my score. It was still good.
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Good for you, if I'm going to buy day to day things that I need anyway, may as well earn airline miles and/or cash back while I do it.
Keep paying with debit, I'll get something in return for making purchases I was going to make anyway. Another perk to credit cards over debit cards, I've yet to find a debit card that doesn't charge you foreign transaction fees while on vacation (Capital One credit cards, for example, do not). Have a fraudulent charge that was approved? It's much easier getting that sorted out with a credit card vs. a debit card. Like with all things credit, it's just a matter of not being an idiot and understanding that it's not "free money". If you're nervous about not being able to show personal restraint, then yes it's reasonable to stick with debit, or if you're just starting out building your credit (doesn't seem like you're one of those people), a secured credit card is a good way to go. Rule of thumb for me, if I can't pull out my debit card and pay for it right there, then I'm sure as hell aren't charging it. Also keeping my credit used vs. credit limit under 15% for me is another rule I stick buy. Using the two rules in tandem keeps you out of trouble. Those who get carried away from credit cards merely show a lack of fiscal responsibility.
To me it's stupid to pay full asking price for something using a debit card even if you got a .1% rebate from using a credit card (granted .1% cash back is a pretty crappy CC benefit, just using it for the sake of example). Why pay more if you don't have to? Any reasonable adult who tracks their finances can easily manage a credit card (I personally have 7...of those only 2-3 I actually use on a regular basis, I don't cancel the other ones though as it'll ding my score). How you can manage unsecured, revolving debt works can work wonders for you, even if you have largely secured, non-revolving debt reflected on your credit report/score. Outside of the airline miles/cash back, there's other benefits (aside from lack of foreign transaction fees). Cards can also give you added perks, such as an extra 1 year warranty on various electronic items above and beyond the standard manufacturer's warranty, additional rental car insurance free of charge (not to mention, to rent a car, you typically need a credit card, most places won't accept debit and if they do, they may require an extensive security deposit), there's also a perk to my Citi Diamond Preferred Card. If I purchase something and a month later that item from that same vendor is on sale for 50% off? Guess what? I call Citi, inform them, provide proof of the current sale going on, and I get that savings back as if I had bought that item on sale.
If you're responsible, credit offers several advantages over debit. Sounds like you just know a bunch of fiscally irresponsible, reckless, and immature people. I've saved tons of money by using credit cards over debit. I've had flights paid for just by doing shit like buying groceries I need. As for cancelling your Sleepy's account, it's because it was a new account. Your credit score is also a function of your longest active account, the longer you hold a card or account for, the more it hurts you if you cancel it. Reason being, if you've had a card for 10 years and still use it, that's just more history for reporting companies to rank your creditworthiness on.
OP to answer your question, American Express EveryDay card...the one you have pictured in your original post. The points you get are transferable to various airlines which gives tremendous return on airline miles and discount or free plane tickets.
I've heard nothing but great things about Chase Sapphire too. It does the same as above but has different airline partners. I've considered using the two in tandem but I don't think I spend enough money to make it worthwhile. You can get an EveryDay card that's free, Sapphire comes with an annual fee (first year free though).