Hi,
A lot of my friends suggested that I shop at Costco to get my groceries and other household supplies. After I talked to Costco, they told me that I could just get a membership card and use my own credit card, or I could get a Costco Visa card which will be both my membership card and credit card in one card. I just got my first job a few months ago and only have a debit card for my bank account at Bank of America.
Which option would you guys pick and why?
Appreciate your time. Thanks.
Which one? None of them. Do you need one? Didn't think so.
Why would you say I don't need a credit card?
>I just got my first job a few months ago and only have a debit card
the fuck you want a credit card for?
>>17282671
Tell me why you think you need one.
>>17282660
Do not get a Visa.
Visa recently increased their fees and are pissing off a lot of companies. MasterCard is your best bet at this point to get a card with some decent perks that can be used almost everywhere.
FuckCostco
Why do they have their own card? To make money
Their terms and conditions are atrocious
Because it's a convenient tool for paying while I can just save the money in my bank account instead of spending it using my debit card.
A credit card will also let me build my credit score so that I can apply for loans in the future for a car, house, etc. I plan on buying a new car next year.
>>17282684
Ok, I didn't know that. Who is the best vendor for getting a MasterCard? I already have a Bank of America account, so maybe I can get it from them?
>>17282689
Do you actually think you're better off borrowing money to use while you can 'save money in your bank account'? Do you actually think you can ignore it and don't have to pay it off or something? Wow, you're a credit card company's dream
>>17282689
Building credit is good, but the mentality that you're "saving" money is retarded. Don't get a specialized retailer credit card unless you shop enough at Costco for it to be worth it, i.e. several times a month and it's pretty much where you buy everything (food, clothes, medicine, appliances), or if you shop for a family.
For your first credit card, get something more general that gives cash back on all purchases. From there, you can figure out what kind of credit card user you are and get a specialized one if you're so inclined.
>>17282686
See, that's why I asked. I thought maybe there are some benefits of getting a credit card from Costco that I don't know about.
But if I get a credit card from Costco, it will only be valid as long as I am Costco member. I don't like that.
>>17282705
If you have bad credit capital one.
If you have no credit try anything and see if you get one.
If you have good credit get something with cashback.
>>17282660
Bank of America is actually has one of the best cash back cards available, and given that they're your bank, they're more likely to give you a higher line of credit.
>>17282708
>>17282716
No, that's not what I meant. I just want my bank account to be there for saving money, not for using that money for regular expenses.
I want to get a credit card to spend money on my regular expenses. And, of course, I am going to pay my credit bills every month.
I want to get a credit card for 1) separating my spending money and my savings, and 2) building my credit score.
>>17282750
You're not going to be saving money if you have a credit card. If you pay your bills each month, then you're spending the same amount you'd spend anyway, you just have to go about it by paying a different bill, and you'd be paying fees for having the card on top of it all.
>I want to get a credit card for 1) separating my spending money and my savings, and 2) building my credit score.
For 1) you can open another account at your bank and use the account you have now for spending. For 2) having a credit card can be good, but don't use it for your everyday spending. That's how people end up in debt
>>17282708
I'm not under the delusion that a credit card company will just give me some money to spend and not ask me to pay it back. I know how credit cards work.
The real question is whether I should get a Costco credit card or an independent credit card and just the Costco membership card.
>>17282766
I have no idea about costco's cards... but generally 95% of the time, department store/branded credit cards have terrible rates with terrible rewards, and terrible terms.
But it's also a good idea to have multiple credit cards if building your credit up is a good goal (as long as you can manage them all anyway)
>>17282764
>You're not going to be saving money if you have a credit card. If you pay your bills each month, then you're spending the same amount you'd spend anyway, you just have to go about it by paying a different bill, and you'd be paying fees for having the card on top of it all.
I see the point you're trying to make. Having a credit card will mean that I will have to pay fees for having it and pay interest on the amount of money I spend using that card every month. I am well aware of how a credit card works.
>For 1) you can open another account at your bank and use the account you have now for spending. For 2) having a credit card can be good, but don't use it for your everyday spending. That's how people end up in debt.
I personally don't think I am very irresponsible with my money. I also earn enough to be able to afford a credit card. It is true that some people end up in debt when they use a credit card. But, there are far greater number of people who don't.
And I will say this again. I am not asking whether I should get a credit card or not. The real question is whether I should get a Costco credit card or an independent credit card and just the Costco membership card.
I realize that some people here are suggesting against getting credit cards and suggesting me alternatives to credit cards. Can one of those people please explain to me why it is bad to get a credit card when a majority of people who spend money have and use credit cards?
>>17282766
just a friendly reminder you will likely have to make a security deposit before they give you one. probably 100-200$
>>17282819
>a majority of people who spend money have and use credit cards?
A majority of people who have and use credit cards struggle to pay them off as well.
>>17282750
>No, that's not what I meant. I just want my bank account to be there for saving money, not for using that money for regular expenses.
well that's fucking stupid
>>17282822
Yep, I am aware of that. Thanks for the reminder though.
>>17282829
All my relatives and friends seem to be doing okay and they all have credit cards. And I have similar spending habits.
>>17282830
Which part is the stupid part? Having the bank account for saving money part? Or not wanting to spend that money on regular expenses?
Neither of those seem stupid to me. Care to explain please?
>>17282764
>...you can open another account at your bank and use the account you have now for spending
That is also a good idea. I also won't need to pay interest and pay back the amount of money I spend. I will keep that option open.
Thanks.
credits cards are a trap for stupid people
Enjoy your debt!
>>17282855
Okay, why is that? Please explain.
For all of those people who say credit cards are bad. Read this: https://www.quora.com/Are-credit-cards-good-or-bad
>>17282829
Those people are probably very irresponsible with their credit cards and probably spend more than they can afford to pay back. They're stupid.
>>17282829
That's not the credit card company's fault. It's the fault of the people who use them.
>>17282888
You just described 95% of the human population.
Glad I'm in the 1%.
>>17282895
bitch you don't understand how costco or credit cards work, you're not in the top half
>>17282895
I don't know if 95% of people who use credit cards are irresponsible, I certainly am not and neither are the people I know.
>>17282912
Alright then, explain to us how they work?
Because, apparently, we, who know people who are doing alright with Costco credit cards and other credit cards and don't have any debt to them, are bitches in your opinion.
I managed to get one through my bank with a $1,000 credit limit. After about 6 months of buying a few things and paying it off complete every month a tidal wave of credit card junk mail started showing up. I haven't seen this shit since I was 18.
>>17282948
Oh, you can't avoid that shit though, whether or not you have a credit card or not. Even Google sends you ad shit to your email based on the searches you do and shit.
>>17282806
>>17282850
Just from the way you're talking about it, it's pretty obvious that you'll end up being another credit card debt slave. It's the same principle as 99% of drivers thinking they're in the top 1% in terms of driving skill. I told myself the same things, but it quickly becomes very easy to use your credit card when you don't feel like paying it *right* now, like a parking ticket or an expensive dinner.
It's a massive red flag that you even broached the idea of a credit card being a separate entity from your bank account. People should get credit cards (or enter them with the mentality) because they have to in order to build credit, and for NO other reason.
Your relatives have also been using credit cards for decades more than you have. At least one of them had to learn their lesson the hard way.
>>17282912
Here is how credit cards work. A credit card company asks you to make a security deposit. After you pay the deposit, they open an account for you and give you a card. You use that card to pay for the stuff you want to buy and the company gives the money for that. At the end of every month, the company asks you pay back money the lent you plus some interest.
Now, if you are not a dumb cunt, you use the card responsibly so that you won't have trouble paying back the company. If you are an idiot, you spend more than you can afford to pay back and then run into problems in the future. Whether you are the first type or the second type doesn't have anything to do with the company, it has to do with you and you alone.
>>17282959
Addendum:
I didn't feel like paying for that dinner right then, but it's very difficult to think that my bank account had $100 less than reality, because my balance still showed the same despite having splurged on a nice dinner. Then, I'd go on spending money on my debt card like normal, and when the credit bill hit, I was even more sore.
I'm not broke and I pay off my credit bill in full every month (except the first few months I got it due to financial difficulties), but it was very easy to fall into the trap. Even to this day, paying my bill is still an unwelcome, unwanted, and in some ways unexpected expense.
>>17282958
Nah, it did not get any credit card offer junk mail until I got my first credit card from the bank. I kept getting turned down because I had no credit history. I had to go build one and I got one from my bank.
I guess having a high interest account with tons of benefits for years helps. I have never needed a loan and paid everything with cash up until that point.
>>17282959
>...but it quickly becomes very easy to use your credit card when you don't feel like paying it *right* now...
That is true for some people but I'm not one of those people. It's freaking stupid to say, "oh I won't pay this month's bill, let me just push it off till next month." People who do that are fucking stupid.
>...At least one of them had to learn their lesson the hard way...
None of the people I know ran into problems with credit cards because they were all responsible. They always were and still are smart people and know what they are doing.
>...It's a massive red flag that you even broached the idea of a credit card being a separate entity from your bank account...
So you're telling me that I can't have a Bank of America savings account and an American Express credit card and not have the two separated as far as the individual companies are concerned?
In this modern age, in america at least it is necessary to have and use a credit card in order to build a good credit history and get a good rating. I paid off my student loans in full before I applied for my first credit card, and even that was not enough to get me a high enough credit score to get anything but a secured card, which requires a deposit. a year or two later, after making all my payments, I had a great credit score. Credit score affects everything, from getting a loan for car or house, applying for an apartment or even when you apply for a job, they want to know that you are a fiscally responsible person. Anyone who thinks having no credit history is a good thing is a fucking moron and should not be listened to.
>>17282985
That's what I'm saying. You can't avoid that stuff with a lot of services these days. In your case, getting your credit card got you ads in your mail.
Some people have iPhones and they use the App Store, so they get annoying ads from Apple in their emails. Same goes for people with Android phones that use the Google Play Store.
>>17282997
>Credit score affects everything, from getting a loan for car or house, applying for an apartment or even when you apply for a job, they want to know that you are a fiscally responsible person.
This is the trouble I was running in to in life. I have a good savings account and investments but my no credit history.
>>17283000
>That's what I'm saying. You can't avoid that stuff with a lot of services these days. In your case, getting your credit card got you ads in your mail.
The sudden appearance of my credit history put me on their radar.
>Some people have iPhones and they use the App Store, so they get annoying ads from Apple in their emails. Same goes for people with Android phones that use the Google Play Store.
I've only ever gotten email from things I've signed up.
>>17282997
Finally, someone who has some knowledge.
>>17282806
You have bank of america right? The i got my credit card from them, they gave me one with no interest as long as i keep depositing a minimum amount of money in my checking account, for me it was no different than using a debit card except of course i have to pay the balance, never gone over limit and usually pay shit well before is due
>>17283009
>I've only ever gotten email from things I've signed up.
I was speaking generally. With the emails from Apple and Google, you can choose to unsubscribe, but with the ads in your mail, there's not really a way to "unsubscribe".
>This is the trouble I was running in to in life. I have a good savings account and investments but my no credit history.
>>17282997
Credit score affects everything, from getting a loan for car or house, applying for an apartment or even when you apply for a job, they want to know that you are a fiscally responsible person.
That's exactly why I want to get a credit card and why people need to get credit cards. Although, there are other ways to build credit score, credit cards are the easiest way to do that.
>>17282958
>Even Google sends you ad shit to your email based on the searches you do and shit.
Speak for yourself. I don't get that shit.
>>17283012
See that's my point. If you are responsible with your credit card, you won't run into problems like debt or whatever. And some people here don't get that simple point.
>>17283020
http://www.forbes.com/sites/benkepes/2013/12/04/google-users-youre-the-product-not-the-customer/#675deea5c162
>>17282994
Yes, people who do that are fucking stupid. You are, too. I never said that I put off a MONTHLY bill. I just would pay for my dinner or ticket at the end of the month instead of right that second. It's good to hear that you are literally the only person on this Earth who is surrounded by intelligent people, including yourself.
And the mentality is wrong. It doesn't matter that you're getting a Bank of America savings and Amex card, a credit card is not for spending while a bank account is for saving. A credit card is nothing more than a delayed debit card, plus fees. I eagerly await your thread in a few months of you panicking about how to pay off your credit debt, because you just had to for an emergency.
>>17283019
>I was speaking generally. With the emails from Apple and Google, you can choose to unsubscribe, but with the ads in your mail, there's not really a way to "unsubscribe".
I am aware of the ads in my Gmail account. The costs of the "free" service.
>>17283030
>Yes, people who do that are fucking stupid. You are, too. I never said that I put off a MONTHLY bill. I just would pay for my dinner or ticket at the end of the month instead of right that second. It's good to hear that you are literally the only person on this Earth who is surrounded by intelligent people, including yourself.
Actually a lot of people are surrounded by intelligent people. I don't know who you surround yourself with. And I don't know, what your are trying to say. I don't know why you are so stubborn about not getting credit cards. If you are responsible with your credit card, you won't run into problems like debt or whatever. You just need to spend the amount of money that you can afford to pay back and pay it back when they ask you to. If some people don't have control over their spending, then they need to go get some help.
>And the mentality is wrong. It doesn't matter that you're getting a Bank of America savings and Amex card, a credit card is not for spending while a bank account is for saving.
I am not saying that a bank accounts are exclusively for saving and credit cards are exclusively for regular expenses. It's just that I want to use the two in that manner. I'm not saying you're wrong in that aspect and I don't have any misconception on how they work. I even said that your advice on opening another bank account and use that for regular expenses is also a good idea.
>>17283036
With Google and a couple other tech companies, you are the product, not the consumer.
>>17283061
You're confusing me with someone else. I do have two credit cards, but I understand how they can be pitfalls, even for people who fancy themselves as smarter than average. But this post >>17282689 was a complete red flag, unfortunate wording be damned.
>>17283069
As I said, I am not saying that a bank accounts are exclusively for saving and credit cards are exclusively for regular expenses. It's just that I want to use the two in that manner.
Using a credit card will help me build my credit score, which is extremely crucial these days.
>...but I understand how they can be pitfalls, even for people who fancy themselves as smarter than average...
I don't understand how they can be pitfalls if you only spend the amount of money you can afford to pack back and then pay it back with the interest when you get the monthly bill. And I'm not saying that I'm better than everyone else or something. All I'm saying is that I spend my money responsibly and don't screw around.
Not OP but I have the same question. I want a credit card to build credit (I plan to be a homeowner some day) and to use for online purchases, since my debit card is actually tied to my bank and all the money I have which is considerably less safe than using a credit card.
I'm not too knowledgeable about credit cards and don't have anyone I can go to to ask them about it though so I need advice both on what card to pick/how to pick it and anything else that might be worth mentioning.
>>17283084
Because I thought the same exact thing, and so did everyone else. Keep in mind that most people aren't so retarded, that they treat credit cards like free money. There's no way to really explain it better. You'll see when you get a credit card.
>>17283110
Pick a card with the lowest rate and basically use it like debit card but pay your balances, however you state that debit cards arent safe because they are linked to your checking account. That right there is the big problem if you know you are prompt to spending more that you have then dont get a credit card.
To the other anon that keeps telling OP not to get credits cards because people get easily in debt yea, stupid people will get indebt no matter what if they spend more than they earn/have.you dont know op so i wouldnt talk
So whats the lesson I give you anon
>>17283208
Good. Here's the guy that actually answered the original question. Thank you.
>>17283208
>however you state that debit cards arent safe because they are linked to your checking account. That right there is the big problem if you know you are prompt to spending more that you have then dont get a credit card.
Uh, what? I said that because I will not ever buy something online with my debit card. If something were to happen a debit card has much less protection than a credit card does and it has all of my money from my jobs tied to it. It'd be a lot less easy to undo someone fucking with my bank account and it's a lot more to risk. Right now when I want to buy things online, I buy a gift card first.
>>17283223
Actually it's real easy to prove it's not you spending money on your debit card. I had mine stolen, it fell out of my wallet in a parking lot and I proved the time and place I last had and made a purchase according to my history and boom, all the false charges that were tacked on were dropped and I got a new card, and nothing bad happened.
Just keep an eye on your bank statements.
>>17283252
I think >>17283223's point is that it's less of a hassle with a credit card if something like that were to happen and that kind of depends on the company providing the credit card.
But yeah, you should be okay if you keep an eye on your statements and just deactivate that card and ask the company/bank/whatever to provide a new one and they are usually nice about it.
>>17283252
I do keep an eye on my bank statements. I'm incredibly religious about this. Every time I go out with the intent to buy something, I swing by the bank first and get a printout of my recent statements and how much I currently have in my checking and savings accounts. But that doesn't change the fact that credit cards are a lot less hassle to undo anyone stealing, undo any faulty purchases, and a lot more secure. I don't get direct deposits straight into my would-be credit card.
If someone did get my debit card, they have the potential to have all of my money that I presently have plus my future money as well. I'm not saying I would let them if they did, nor am I saying I take stupid risks. I'm saying I would rather take this as an added measure of security against this. I won't even buy from places like Amazon or Steam or whatever other reputable things with a debit card, it's just an unnecessary risk that I'm unwilling to take.
OP here
>>17283276
You're right. I mean you can never be too safe, can you? But I think >>17283252's point is that debit cards are not as bad as you think they are all. They are also really good.
Please ignore all of the spergs and the financially illiterate.
You should use your credit card to pay for fucking everything if possible. $1 piece of gum? Fucking card that shit if they'll allow it. The ONLY WAY that people get fucked by credit cards is when they spend beyond what they can afford to pay back, and why do they do that? Because they are either morons or they were already stuck between a rock and a hard place to begin with.
Reasons to card:
1. Fucking points. You spend $10,000 cash a year on various things? (Gas, food, phone bill, internet bill, trips, going out, beer, plane tickets, dental visits, doctor visits, whatever the hell) If you spend $10,000 in cash, that's it - you're out $10 grand. You spend $10,000 using credit cards? In most cases that's about $150-500 cash or equivalent back.
2. It's not actually your money being spent yet. Some faggot in Russia hacks your credit card number and racks up $5000 in female condoms? That's Chase/Visa's problem. You get a new card and a new number. Some asshole hacker group hijacks Target's card readers and stole your debit card to buy $3000 in male enhancement drugs? Guess what bro, that's 3000 actual fucking dollars actually missing from your actual checking account. Sure, you'll PROBABLY get it back, but it might take some time.
The only danger in Credit Cards is psychological: You don't feel the pain of seeing cash leaving your wallet or your checkings shrink, so it's easier to spend more money. In fact, that's the reason why merchants are even willing to deal with credit cards (they get charged a fee every time they accept payment in credit) - because it's the difference between getting your business or not.
OP here
>>17283285
Thanks man. I was making the same points as you just made this whole freaking time and some people just don't understand the concept of being responsible with money. I don't how you can be responsible with credit cards and then get screwed over at the end. There might have been such cases but I don't think that speaks for all credit cards.
And, yeah, now I understand how credit cards can also be safer than debit cards. I don't care about the points, although I'll happily take them, but credit cards mainly help with building credit score and that's crucial for car loans, house loans, jobs, etc.
>>17283285
There are also some more complex ways to use Credit Cards as an emergency reserve fund, but that requires a more informed and calculated assessment of how you value risk.
For example, let's talk APR. If you use credit cards like I do and pay off the full balance due every month, your APR is going to be sky high - e.g. like 20% or higher. That's because, according to the credit card company's actuarial analysis engine, you're a higher risk because they haven't see what your behavior is like when you carry a balance (as in, having actual credit card debt and paying it off monthly).
People lower their APR by purposefully carrying a balance. For example, like if I keep a $500 balance on my credit card at all times even though I can easily pay it off. This demonstrates to the lender (credit card co.) that I can hold debt on my credit card and continue to pay it off over time. One of my managers does this and his APR is like half of mine - something like 10%.
In the grand scheme of things that's still a relatively high interest rate, but say he got cancer tomorrow or something and all his money gets drained, he can start dipping deeper into his credit card as an emergency and be able to pay it back at a lower rate. If I had to carry $10,000 in CC debt all of a sudden I'd be way more than twice as screwed with a super high APR.
I DON'T do this because it is in my estimation that the scenarios where I'll need to max out or come close to maxing out my credit cards are extremely unlikely, thus I don't think paying the interest for carrying a Credit Card balance is worth it the lower APR.
>>17283298
The thing is that those points add up, though. I mean if you think about it in terms of financial investment in today's environment, I would be happy with a 3-5% return on any investment.
Some cards offer 2-5% in points (or cash back), and sometimes there are huge points bonuses for certain cards. It isn't really a stretch to end up having $10,000 in expenses a year depending on where you live and how much you spend on leisure, and $150-500 worth of points is easily a plane ticket or a nice new toy... or you find a way to use it to buy something that you needed anyway and then invest the cash you would have spent.
And on the topic of a Costco Card vs. another Visa - the Costco card is hard to beat as a day to day card if you already planning on being a Costco member.
4% cash back on gas worldwide, including at Costco? That automatically makes it one of the best if not the absolute best CC for gas out there.
And then there's 3% cash back on restaurants and travel purchases... Chase sapphire and many other cards only manage 2%
2% on all costco purchases - that's pretty decent.
1% on all other purchases is pretty standard.
If you were already planning on being a costco member, and you drive a car regularly (to work or whatever) then you should definitely get it IMO.
OP here
>>17283324
Dude, that's freaking awesome. Where did you find this information? Do you have a link? I'm also looking at other cards and exploring what benefits they have. My only concern is what if I decide not to be a member anymore or I move to like a village where there isn't a Costco nearby (probably not going to happen but who knows), I would then have to go get another card and that's freaking annoying.
But, my dad is a Costco member, he's been a Costco member for about 5 years now and he's happy with it. I used to go with him to help him get everything and I liked the products that Costco sells, Kirkland is amazing.
>>17283416
Getting a new credit card is NBD, once you have good credit. If you did drop your membership and needed a new card ASAP, got to your bank and within 30min-1 hour, depending on how busy they are, you will have a new credit card. Also, here's something I didn't realize until I needed it - after a certain period of time, like a year or two, CC company will raise your credit some. If you call them and ask to have your credit raised, they'll ask you for some info regarding salary and if you have good credit and good salary, they will raise it for you to the amount you request(within reason). I was on a business trip and because my company only deals with 4-5 star hotels and my trip kept getting extended, I was faced with a 10K bill with only a 3 or 4K limit on my card - I called up, told them I needed my limit raised, and it was done. Obviously you should not try and boost your limit past what you can afford to pay back - even without my company's reimbursement I had the liquidity on hand to cover that sort of expense.
>>17282683
To build credit?
