i have a credit card question... i want one but dont know which one is better or which i would get screwed on?

Question

i've received about 6 offers in the mail and narrowed it down to two. the one m most interested in is one from GM:

0% introductory APR on balance transfers til FEb 2008, rewards: 1% cash back, 1%toward any new vehicle or 3% towards any eligible new Gm vehicle. no annual fees of $100 or more. variable premium APR: 9.99 %, 14.99%, or 17.99%, and 20 grace period for repayment.

i need one, and i figured i could use it to pay my rent and then use the cash i normally would use and pay off the credit. does this sound like a good thing or could i possibly get screwed over hard on it?? i have "a little above average" credit for my age: 720 (when in bought my car in september) and make my payments on time; sometimes like 2 weeks late but never 30 days late. PLEASE let me know out there!!!! thanks

Answer 1

CHOOSING THE RIGHT CREDIT CARD OFFER FOR YOUR NEEDS

Selecting a credit card is not easy. Featured below are pros and cons of several of the major types of credit card offers. This information will assist you in selecting a card that is most specific for your needs.

Reward Credit Cards

Pros - These credit cards have many different types of perks associated with them when they are used for making purchases. Some of the most typical types of rewards offered are cash, airline miles, gas rebates, and/or points that can be used for discounts and savings at participating restaurants and stores. A reward credit card is one of the best choices you have if you anticipate paying your bill in full every month.

Cons - You should always read the terms and conditions of reward cards carefully before you commit to any offer. These card types typically have higher interest rates and costly annual fees. Carrying a balance every month is likely going to result in you paying more in interest fees than you are being rewarded.

Student Credit Cards

Pros - A student credit card is one of the best means for establishing credit. In fact, these types of credit cards are specifically designed to help those with no credit establish positive credit histories. There are even a variety of student credit cards for people with bad credit looking to rebuild their credit.

Cons - The interest rates associated with student credit cards tend to be higher than other card offers. Also, it is very typical for students to end up in debt as a result of not using a credit card wisely. We feature an entire section dedicated to helping educate people on smart credit card use.

Pre-Paid Credit Cards

Pros - These cards can be used in the same manner as regular credit cards. However, your are required to 'load' money onto your card when you want to use them instead of taking advantage of the revolving credit lines normal credit cards offer. You are able to spend as much money as you have on your card. Achieving approval is very simple for prepaid credit cards, even for those with the worst credit histories or those with no credit.

Cons - Your payment history is likely not going to be reported to any of three major credit reporting agencies. Therefore, this type of credit card offers no real benefit for building or rebuilding credit. There are also many different times when you can not use a prepaid credit card for purchases, i.e. hotels, airline tickets and car rentals.

Secured Credit Cards

Pros - A secured credit card is probably the best credit card type for establishing or reestablishing credit. These credit cards offer the same type of functionality as regular credit cards.

Cons - You will need to leave a security deposit when looking to apply for a secured credit card. These deposits are usually between $150-300. The annual fees and interest rates associated with secured cards are higher than normal credit cards. In fact, interest rates can be as high as 30%! Typical annual fees range between $50-100.
read more about creit card at: http://www.card-gallery.com/article

Answer 2

Use the card to transfer your balance & get 0% financing.

Do not use it to pay rent - it is too easy to spend the rent $ elsewhere.

Then work out a monthly payment schedule so you can have the balance paid off by Feb. 2008. Always pay more than the minimum due. Credit card companies gamble that people will not pay the balance transferred off before the grace period ends.

Be sure to make payments on time (w/in grace period) because a late payment will trigger a penalty (fee, interest, etc.). If you bank online, set up monthly automatic payment.

Note: If you cannot pay the balance off by Feb. 2008 call your current credit company & tell them about GM's offer to negotiate a better interest rate with them before you apply/accept the GM card.

Transferring balances can get consumers into trouble because they keep opening credit accounts and do not stop using the other charge cards.

As you pay off your transferred balance, make all purchases by cash or check to avoid running up another debt.

Also, check to see what the interest rate is for any additional purchases on the GM card. Sometimes, new charges have a steep interest rate.

Here are 2 useful articles regarding managing credit cards:
http://www.fool.com/personal-finance/credit/2006/12/14/managing-credit-cards-intelligently.aspx
http://finance.yahoo.com/banking-budgeting/credit-cards

Answer 3

Mandy - AVOID THEM. PERIOD.

If you must have one, try to get one with NO annual fees at all - they do exist. Youre paying interest - why pay an annual fee. Furthermore, why choose one that will give you cash towards the purchase of a new car, when you already bought a new car??? 0% on balanece tranfers - USELESS for you - you have no credit card balances to transfer!

Why pay rent with credit, then use cash to pay off rent+ interest? It makes more sense to pay rent with cash. And, Ill tell you what will happen - you will pay rent with creidt the first couple of times...but then, you will find yourself paying rent with credit and wasting your cash on other items you want. Next thing you know, youve got no cash and no rent...and youve screwed yourself.

Id look into HSBC bank - they are from Europe and dont charge any fees. Also, look into opening an ING Direct account - 4.5% interest on savings - that like 4.25% more than banks are paying!!!

Answer 4

Well if your getting a credit card to pay your rent off I'm not sure you can do that. I tought it had to be cash,check or money order. check into that! But on that credit card situation, all I can tell you is capital one screwed me and about 5 other people I know, so dont accept any offers from them. Also dont accept any credit card that has an anual fee, you can get one with no fee. Good luck with you credit card search.

Answer 5

the finest way is to get one with the help of your economic agency. I easily have economic agency of u . s . a . and after I became 18 and were given my debit card, they requested if i needed to adhere to for a mastercard. I stated definite and it took about per week and that i have been given my card. they could ensure in about 2-4 minutes no matter if you get a CC or no longer. i replaced into issued $900 credit reduce with 3.9% pastime cost and no annual fee. Its an elementary Visa Card. I also did no longer have any form of credit in the previous.

Answer 6

hmm. I used to get the same feeling when I first decided to acquire a cc...I got cc assistance from NHBS and luckily I am able to enjoy it/them
hope this resource will be of help to you too
goodluck and have a nice day ^__^