Hi all - Like everybody else, my credit card company wanted to raise my interest rate. I chose the option to keep my low rate any they just wont renew my card after the expiration date. But now, I need to shop for a credit card. My bank has so-so rates and I didnt see anything I really liked at my current company.
I could use your input on the best way to shop for a credit card without negatively affecting my credit score. I've never had to actually shop for one, they've always just been offered either through my bank or my mortgage company.
Bankrate.com is a reputable website to shop for rates on credit cards. Lots of valuable information on their website.
We heard a credit speaker who said all inquiries within a 2 week period count as one on your credit rpt, so you can shop around for a car loan, etc.
Might I suggest a different route and check out daveramsey.com. He discourages the practice of using credit cards entirely and becoming debt free so you can have a great life when you are older. If you need a suggestion, Total Money Makeover is a great place to start!
You don't ruin your credit by shopping for a credit card. Having lots of open credit actually raises your credit score, as long as that credit is availble and not all used (in other words, have a high credit limit but pay it off every month). They do pull credit to make sure you qualify for a credit card, which is not exactly ideal, but it does not ruin your credit. Is there something in particular you want to buy? If so, there are some stores that offer no interest for 12 or more months. If you want one for general use, I'd visit the major types online (discover, visa, etc) and see who is offering the best rate/incentives.
good luck!
To shop for credit cards, you can go online and see what the rates of cards are without applying. It is the applying for cards, and putting all your information in that affects your credit.
I would like to second Dave Ramsey. I'm not yet to the point where I don't use credit cards, but I do pay off the active ones every month, and am working to pay the others off too.
Maybe you've tried this, but we've had great luck with calling our cc company and telling them we're not happy with such and such and we'd like to cancel the card. They have bent over backwards to keep us as customers when we do that, upping our credit limit, waiving fees, lowering interest. But that was before the bubble burst, so maybe the game is totally different now. It sounds like they're choosing to cancel you instead of the other way around, but you never know. It may work!
I've read online that you need to be super careful these days about choosing a credit card, because the companies are losing money fast. So they're tacking on strange fees. Like a fee for paying off your balance every month (which is usually a GOOD thing!) I'd check out clarkhoward.com or some other financial radio guys' web sites for information about that, and tips on how to find a good card for you.
Be sure to read all of the agreement. I have had offers that are free for the first year and then have an annual fee and those can vary a lot too.
Banks, stores, airlines, schools and a lot of odd other things have related credit cards - check out some of those and check the benefits too - airline cards offer miles for money spent, stores offer store credit with more for spending outside their stores.
Do you need a low interest rate? i.e. are you 'planning' to carry a balance (not that I'd ever recommend that), or do you plan to pay it off every month (then look for discounts/points/miles on purchases). We have the card through my bank, simply because it is the easiest (ability to pay online, etc) - plus, we earn points towards my favorite store. I pay it off every month though, so the interest rate doesn't really matter. I would try sticking with a company/bank you've at least heard of, and I would bet there are reviews of banks/cards on some website or another.
Regarding your credit (and you may know this already), every time a lender makes an inquiry to your credit it DOES affect your credit score. Also, I learned the hard way that having/opening multiple accounts over the years (transferring balances in college to take advantage of 0% interest rates) - even though I ALWAYS paid on time - negatively affected my credit. After some 15 -20 years I still have credit cards on my credit report that I have not used in 10+ years, but they are really hard (some have proven impossible so far) to get rid of.
Get out of the credit game. No one is winning but the credit card company. Your rate doesn't much matter if you end up paying more than what things are worth through interest.
While I entirely agree that you should do without credit cards, We are in a pickle because my hubby has never had one. My hubby has never bought anything he didn't have the cash for, and now we can't get a home loan.
There are several sites (I know our bank web site does it too) where you can enter basic info (spending needs, age, income, general idea of credit score....) and see what cards are recomended for your needs, and compare them as well.
