Ok, so I am trying to reseach credit cards for my fiance, and as we already have USAA bank accounts, I was hoping that a few people could give me their opinions on the credit cards and the apr's to find out if the credit cards are worth it.

I am not sure what you want to know - I have credit cards with all the big banks. If you plan to run a balance, "Edited for advetising"-USMCvet has info on the best deals on cards. I only use one card at a time. Easier to pay. Does USAA offer a credit card?

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Interest rates only matter if you plan to carry a balance. And, since carrying a balance on a credit card is a bad financial decision I'm sure you're going to try to avoid that.

Typically I'd suggest finding a (free, meaning no annual fee) rewards card of some sort. Usually cash back cards are best but if one of you shops regularly at a store which offers a rewards card, that might make more sense.

"Deleted" and "Deleted" are good sites to use to research different kinds of cards and what they pay out for rewards. Just read the fine print.

Edited for content-USMCvet

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I would highly recommend USAA's credit cards. They have a variety of types, competitive interest rates, and truly great customer service. I have had a USAA credit card for years and I love it!

An even better idea is to avoid credit cards at all cost and save to pay cash. I know this sounds like a crazy idea in our microwave culture but give it a try. It's amazing how much freedom you have when you're not driving a payment book or waiting for a bank to jack your rate "just because". Check out DELETED" for more help. Big supporter of our military.

I have nothing against USAA. In fact I have my auto, life and homeowners insurance with them. Great company, but I'm not going in debt again for any great interest rate.

Edited for content.-USMCvet

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I strongly disagree with the above post. Credit is necessary these days. Without credit you either can't do or will have a hard time with many of the following:

Insurance
Apartment Rentals
Housing Loans
Getting a Job
Getting Utilities

There are many things that are tied to your credit report and more are being added every day.

Instead of avoiding credit out of fear, learn to use it to your advantage and you'll see that rather than getting into debt, smart credit usage can actually increase your net worth.

Credit cards are a tool. No more and no less. If you use it correctly you'll build something good. If you use it incorrectly you'll ruin something.

But one thing is certain: Having credit cards DOES NOT mean you have debt. They are completely different things.

quote:

Originally posted by pf101:
I strongly disagree with the above post. Credit is necessary these days. Without credit you either can't do or will have a hard time with many of the following:

Insurance
Apartment Rentals
Housing Loans
Getting a Job
Getting Utilities

There are many things that are tied to your credit report and more are being added every day.

Instead of avoiding credit out of fear, learn to use it to your advantage and you'll see that rather than getting into debt, smart credit usage can actually increase your net worth.

Credit cards are a tool. No more and no less. If you use it correctly you'll build something good. If you use it incorrectly you'll ruin something.

But one thing is certain: Having credit cards DOES NOT mean you have debt. They are completely different things.

See what I mean? Credit is necessary? Research it yourself before you start building your life around a FICO score. Plain stupid.
Just a couple of examples:
The Forbes 400 is a list of the richest 400 people in America as rated by Forbes magazine. When surveyed, 75% of the Forbes 400 (rich people, not your broke brother-in-law with an opinion) said the best way to build wealth is to become and stay debt-free. Walgreen's, Cisco, Microsoft, and Harley-Davidson are run debt-free.
History of Debt
History also teaches us that debt wasn't always a way of life. In fact, three of the biggest lenders today were founded by people who hated debt. Sears now makes more money on credit than on the sale of merchandise. They are not a store; they are a lender with some stuff out front. However, in 1910 the Sears catalog stated, "Buying on Credit is Folly." J. C. Penney department stores make millions annually on their plastic, but their founder was nicknamed James "Cash" Penney because he detested the use of debt.

Henry Ford thought debt was a lazy man's method to purchase items, and his philosophy was so ingrained in Ford Motor Company that Ford didn't offer financing until 10 years after General Motors did. Now, of course, Ford Motor credit is one of the most profitable of Ford Motor's operations. The old school saw the folly of debt; the new school saw the opportunity to take advantage of the consumer with debt.

The Debt Myth
You have probably heard a lot of the sub-myths which fall in line behind the big one that says, "Debt is a tool." Are you beginning to understand that debt is NOT a tool? This myth and all its little sub-myths have been spread far and wide. Always keep in mind the idea that if you tell a lie often enough, loud enough, and long enough, the myth becomes accepted as a fact. Repetition, volume and longevity will twist and turn a myth - a lie - into a commonly accepted way of doing things.

No more. Debt is not a tool; it is a method to make banks wealthy, not you. The borrower is truly servant to the lender. Your largest wealth-building asset is your income. When you tie up your income, you lose. When you invest your income, you become wealthy and can do anything you want.

Debt free in "08" - Can't wait!

quote:

best way to build wealth is to become and stay debt-free

I don't disagree with this statement at all. What I disagree with is your assumption that credit cards = debt. This is absolutely untrue. Just because you have a credit card does NOT mean you have debt. Just because YOU could not control your spending doesn't mean everyone can't. Having available credit and having debt are two completely different things so you're really making the wrong point.

I disagree with a lot of the other stuff you said though, but your last sentence sums it up. You're currently recovering from your debt problem and you've been brainwashed by "DELETED". Nuff said. You are living in fear rather than learning to use a tool. That's fine. If you don't feel you have enough self control to manage your spending then you shouldn't have credit cards. But, for those who have self control, they are absolutely a tool which can be used to make money. I haven't paid a penny in interest in years and usually make $1500/year or so by using my credit cards.

This doesn't even take into account some of the things I couldn't even do if I didn't have cards.

BTW - rich people have no need to use credit because they can pay cash for what they want. But, as a regular Joe, unless you have a few hundred K laying around, you are going to have a hard time buying a house without a credit history.

And comparing personal finances to corporate finances is just silly. Why not compare a banana to a pineapple - they're both fruit.

One last statement: Credit cards DO NOT = debt. Spending more than you earn = debt. Knives can kill people, but they're also a useful tool so saying that all knives are bad and everyone should avoid them is just silly.

Edited for content.-USMCvet

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quote:

BTW - rich people have no need to use credit because they can pay cash for what they want.

BAAAAAAAAH....that's not true, that's a personal opinion. My mama's got money and has had 10-15 credit cards at one time or another. Pays the balance off each month. Most time she gets the card for the extra 10-15% off for her purchase and applying for the card. She'll pay it off, then cancel the card.
Larger stores that she frequents more often, those cards she's kept for over 20 years. Has an unlimited spending limit for those.

Her credit cards were absolutely used to help build her credit. I think she has 3 now: American Express, Penneys, and some children's store for her grand children.

bobbysangelwife I agree with you. I have a safe full of credit cards. My wife has another set. I use 2 most of the time, and pay off the balance each month. We get points and cash back. We get special offers from Dept Stores. With a credit card I can go back and look where I spent money for the month. With cash I have little or no record.

Also, most credit cards today double the warranty on items you buy. Real nice when the TV dies the second year.

quote:

BAAAAAAAAH....that's not true, that's a personal opinion.

bobbysangelwife, if you read closely you'll see that I didn't say rich people *don't* use credit, Sompin did. I was addressing his theory. People with money don't *need* credit because they also don't *need* to build a credit score so they can finance large purchases. They have the option to pay all cash if they so desire (silly use of cash IMO if you can borrow for cheap).

That doesn't mean they don't have and use credit to their advantage because that's what smart people do, rich or poor.

In fact, I think Sompin's theory is crap and the people with the most money usually use the most leverage to make it grow. Usually that leverage (for investment purposes) = debt.

Yeeeaaahhhhh, riiiiiiiigggtttt. I can see it now, me going into a Mercedes dealership with $100,000 in my pocket and then have the IRS and DEA investigating me.

Furthermore, credit cards are safer than carrying large amounts of cash.

I disagree, not with your usmcvet. Sometime people with money want to finance something. Not that they do not have money, but they do not want to use cash, but time payment.

Like a house or car. You need good credit to do that.

pf101 I'm not recovering from any debt problem, but thanks for making the assumption. Along with the rest of the assumptions you made about me. Brainwashed? Please. The real brainwashing is that you need a FICO score to live. Ever heard of manual underwriting?
Do you think all of these payday lenders are parked outside the gates of our bases because they like the scenery? NO! They're out there feeding off of our young men and women serving this country. Put that debt tool in your box. I'm not addressing this to the small number of people that manage to stay ahead of the debt game.

You're the one that's celebrating being out of debt in '08. That indicates that you had debt and based on my experience, your attitude towards cards would indicate that there was a problem of some sort.

I could be wrong but based on your statements and my experience it was a natural assumption.

As a financial planner I've worked with hundreds of people on debt and credit issues (including hundreds of pro bono hours with active military members). I've seen first hand the problems that not establishing credit can cause. It's not just about buying a house. More and more things are using your FICO score to evaluate you and charge accordingly. By not having a FICO or having a low FICO you're making things unnecessarily complicated. Why not just have a single card that you only use occasionally.

You need to disconnect credit cards from debt in your head because they are two completely different things. This thread was about credit cards. you made it about debt.

Bringing up payday loans is again taking it off topic. Pay day loans are about debt, not about credit cards. Granted, they are possibly being used as a result of the abuse of credit cards, but credit cards themselves are not the problem. The people using them are the problem.

People who use payday loans are foolish and are only digging a bigger hole. They aren't a debt tool. Not even close. There are zero advantages to using a payday loan while there are many advantages to using credit cards. Again, comparing pineapples to bananas.

Let's say you have $1000 deposited at your bank! The financial institution is legally allowed to lend 90% of your money each month, but, by law, they only pay you pennies. With $900, your bank can with $500 each set down a down payment in the purchase of a home which they then rent. At say $1800 per month's rent x 16 homes pocketed by the following month, what rating would you call this? Credit cards always look cute, but the more you know about them the uglier they get! Check your local library, I'm sure there's
a fairly large section there on how credit cards work!

Anyway, if you get a USAA credit card, let them know if you're deployed. They'll give you a discounted interest rate while deployed and once you return will rebate any interest paid while you're deployed. This is on their Mastercard. I don't have their American Express so can't comment on that one. Search keyword "deployment guide" on their website for more info.

And to further that Jim--USAA will temporarily lower the interest rate if you're PCS'ing as well.

I've had my USAA c/c for almost 2 years now. I've never had a problem with them--their CS is outstanding.
Given the fact that I personally have ZERO income, came off the backside of a divorce less than a decade ago, and really kinda had a spotty credit rating due to some hospital bills---they were kind enough to take a chance on me.
My APR wasn't the greatest to start out with, but after 6 months of paying my bill almost completely off(within $100 or so), they bumped my limit up, and after about 9 months they lowered my APR.

Having my credit card, paying my bill on time (most times more than the required amount) has been beneficial in more ways than one. Because of us rebuilding our credit over the past 3 years, paying bills on time, etc....we were able to get a good APR on a vehicle loan. That is the direct result of us having our cards, paying on time, keeping our noses clean. And as long as we continue to do that, it'll only get better.