Which is the better credit card?

Question

I'm in dilemma between these 2 credit cards that I just received.

1st Card:

-8% APR (fixed)
-3500 points ($1 = 1 point) is equal to 25 dollars cash back. (less than 1% cash back).

2nd Card:

-13.24% APR (variable, not fixed)
-2500 points ($1=1 point) is equal to $25 cash back (1% cash back).

I'm planning to use this for 5 years or so. I have a good credit - no balances.

Which one is a better offer?

Thanks!

--sophie

Answer 1

A lot depends on how you use the card. If you faithfully pay on time and in full, interest rate doesn't matter. I've used credit cards for a couple of decades now and have never paid any interest or a late fee. If you can't have enough self discipline to do this, don't get a card. The interest will kill you.

After all that, if you're going to get a card and pay it off every month, then get the card that pays you back the most. I've used the Citibank Dividend Platinum Select Mastercard for about 3 years now. It pays me 5% on gas, supermarket and drugstore purchases, 1% on everything else, up to a maximum of $300 per year. My wife uses an American Express card from Costco which pays her back 3% on dining out, 2% on travel and 1% on everything else. Neither card has an annual fee.

The key is to make the card companies pay you and don't let your spending get out of control. Sure, the card companies will lose money on you, but they more than make up for it by tempting people who overspend and can't pay their cards off on time and in total. What they lose to you is just the cost of doing business for them. So be an expense to them, not a profit center. Good luck.

Also, stay away from debit cards. They offer none of the protections that credit cards offer.

Answer 2

It really depends on what rewards you're looking for. If you want cash back, airline flights, cash back for spending, cash back for gas. It also depends on how you pay on your credit card, If you pay it all back every month, the sky is the limit. Do you mind paying an annual fee? If you don't mind, then I would go with American Express. I heard it's like $125 but the people who told me about it said it was amazing. Someone bought a TV, which came with a warranty, but AMEX gave a 3 year warranty above and beyond what the warranty they got in the store, then something happened to it during the AMEX warranty and they replaced the TV. It was a high ticket item too. Any credit card will work well, provided you ALWAYS pay the bill. Don't EVER miss a payment. HSBC has a good card. You can check online. Sorry I couldn't be of more help. I hope this helps

Answer 3

Clearly the first oneis better, but why even get a credit card. Studies show that people spend 17-20% more when they use a credit card even if they pay off the balance evry month. If you are interested in the points then get a preferred debit Mastercard. Those have poins just like a credit card, come directly out of your checking account. Hope this helps, best of luck. SA

Answer 4

Of the two, pick the first. Always go with a low fixed rate instead of a higher variable rate. The rate on that card might be 13/24% this year, next year it might be 25%, you never know that's why it's variable, it raises everytime the nation interest rate average goes up. Forget that point system, it's useless.

Answer 5

Well, let's see:

Card one - you give them 8% for every dollar you spend and they give you less than 1% cash back. In other words, you spend $100, pay them $108 and they give you less than $1.

Card two - you give them 13.24% for every dollar you spend and they give you 1% cash back. Or, you spend $100, pay them $113.24 and they give you $1.

Doesn't sound like either is a very good deal to me. I haven't used a credit card in years and couldn't be happier. Get a check card attached to your checking account and stop worrying about cash back 'rewards" - what a crock!

Answer 6

none! stay away from credit cards, you don't need them, few and far between is the person that didn't get burned by a credit card.

the banks own the cards and the lowest you got there is 8%! uummmm, i'm guessing that you are not getting 8% back on your savings acount.

check out daveramsey.com he's super awsome and has a lot of real good financial advice.

Answer 7

The first one...it has the lower APR and the APR is fixed, which means they can't move it up after you get the card and make you pay more!

Answer 8

I would choose the first card. The APR seems much better, even for a fixed APR.

Answer 9

Forget about the points for now.

Do you plan to pay the card off each month, or do you plan to have balance? If you pay it off, go for the cheapest points available to you.

If you're planning to carry a balance, then forget about the points, you're going to pay an expensive price to get them. Go for the lowest APR.

Answer 10

Your husband!!! is the best credit card

Dont fall into the trap of credit cards.
Get a debit card instead.
Else go for the first one. But check for various banks. And dont get into late payments. It will ripp u off.