Credit cards

[Nightwish224]

nordlead said:
I am a big fan of Credit Cards, but only buying if you have the money ahead of time. Paying 20% or more interest isn't really my cup of tea. Why waste so much money.

However, if you plan on paying off your bill 100% every month, they are the best thing in the world as you don't have to carry $ with you and you earn money back. Currently Discover is offering a credit card with 5% back on certain categories and 1% on everything else.

I have a citicard that used to be like that but they changed the terms so now I get 2% on gas, food and something else. With over $700/month on those 2% items I save $15/month, if I upgrade to the 5% card I'll be saving $35/month, or $420/year, so I'll be applying soon.

(note, I'm referring to student cards, which have even higher interest rates than regular cards, so again, if you get one make sure you are going to pay it off 100% every time or you'll be spending thousands on interest every year)

Thanks for the response. You've given me a greater insight. I actually did apply and got accepted for the Discover student. As you stated, buy and pay off as soon as the statement is there. ;)