Credit cards?
I’m so confused. I"m getting to the age where the option of having a credit card is drawing near.
I’ve been looking at different cards, but I can’t seem to make heads or tails of the terminology. I would love if someone could explain these things to me.
Also, what are your expiriences with credit cards? Any good companies to go with? Should I even get a card at all?
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Before you do anything, do some research on the credit card industry. Find out the tricks of the trade in the industry. I’m assuming that your younger, probably colllege-aged, correct?
This is where I would start. The first thing I would do is check out the "Secret History of the Credit Card", a documentary by PBS Frontline. This is a comprehensive study of the credit card industry. So check that out here:
http://www.pbs.org/wgbh/pages/frontline/shows/credit/
Next, I would check out this PDF document entitled "College Students and Credit Cards" from the US General Accounting Office (GAO). It covers many of the ins and outs on student credit cards as well as legislation regarding on-campus credit card solicitation. This is overloaded with information but essential to understanding how credit card companies target young people.
http://www.gao.gov/new.items/d01773.pdf
Next, I would check out this book entitled "Strapped: Why America’s 20 Somethings Can’t Get Ahead". This book goes deep into the subject of why young people get hamstrung so early on in life with credit card debt. Will be a must read for my children.
http://www.strappedthebook.com/facts.php
Then, I would check out this 2007 Credit Cards Survey, which is a published survey of 20 credit card issuers and 83 different credit cards on the good, the bad and the ugly of a wide variety of products, services and industry practices in the credit card industry:
http://www.consumer-action.org/downloads/english/CA_News_CC_07.pdf
After you’ve done all of that, only then would I take a look at some credit card resource sites online:
http://www.creditcards.com/
http://www.creditcardassist.com/
http://www.cardratings.com/
These are sites that have a wide selection of student credit cards from a wide selection of card issuers. I would not recommend going to a single card issuer site like a Visa, Mastercard, Discover or American Express site. They’ll only be soliciting their specific products.
Credit card resource sites like the above mentioned tend to be card issuer "agnostic" and do not have a preference or specific product that they are beholden to. That gives these sites the ability to offer relatively unbiased information and recommendations on card products.
Happy hunting!
"If you tell the truth, you don’t have to remember anything."
Mark Twain