First time credit card user

nicespringgirl · #1 Aug 13, 2007, 10:07 AM

For first time credit card user
is 11.99% is reasonable rate? with mastercard no annual fee.
earning world points

What do you think about the 95 cents per $100 protection fee?

what would you suggest?

Thanks.

GlindaofOz · Aug 13, 2007, 10:10 AM

Rate is pretty good for first credit card.

I would not do the protection fee i don't believe there is a need for it.

Emland · Aug 13, 2007, 10:12 AM

What is the "protection fee" for?

You are protected against fraud or unauthorized charges automatically. Should be no need for further protection.

Also, if you don't carry a balance, you don't have to worry about the interest rate

nicespringgirl · Aug 13, 2007, 10:19 AM

thank you ladies!

the protection fee is for over $100 monthly balance, you pay 95cents for every $100
if you move, get married, it will be responsible for the credit card company a minimum monthly payment for 3 months
if you are sick, ill in bed, can't work, it will be responsible for the credit company a minimum monthly payment for 18 months.

What is your definition of protection fee?

kp2171 · Aug 13, 2007, 10:29 AM

is it just an introductory rate? how long is it good for? its not a bad rate at first glance. arent you a grad student? maybe its a special rate for people in school...

forget the protection fee. and be prepared to tell them over and over as theyll keep trying to sell it to you. better for you to show financial discipline and not ever need to have someone cover your back... and you do this by saving some money in reserve (savings account) and by not using your line of credit to finance a standard of living you cannot afford.

and, as always and as mentioned, the % rate doesnt even matter if you can keep it paid off. its reasonable to have a line of credit, just makes things like travel easier, but you know the best thing you can do is to try not to keep a balance. but at the same time, use it and then pay it down... good to help you establish your credit.

Emland · Aug 13, 2007, 10:49 AM

It's not worth it, IMO.

I worked for a credit card issuer and was forced to offer that crap to customers calling in to activate their cards. That was the main reason I left that company - because I couldn't stand being forced to sell something I wouldn't buy or recommend to family or friends.

nicespringgirl · Aug 13, 2007, 10:55 AM

Scott, do you suggest me to get the "insurance"? I have good financial management skills, but I will never know if I will be getting ill or have accident, lose working ability.

Kp2171, I will pay it off every month.The reason I get the credit card is to build my credit history, I have never needed one. But seems like that is the only way to build my history preparing for purchasing a house with a mortgage in the future. It's good for whenever I am paying it off on time, I can call them back in half a year to bring it down-that's what they said.

Lowtax4eva · Aug 13, 2007, 10:57 AM

The credit card insurance is such a scam. Read the fine print there are so many exclusions to what "cant work" means