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credit card advice

So my husband and I recently did a ton of work to repair our credit and now my husband's credit is good, while mine is still average. We have a 1 year plan to get mine into good standing and his into excellent. Anyway, we have 1 credit card that has a zero balance right now, but a high interest rate. We called several times to try to convince them to lower the interest rate, but they wont. They say it is because they aren't offering lower rates to anyone right now, it's not just us.
So, I've been researching for a new card and I found that our bank that we have our checking, savings and mortgage through offer a card that offers 1% rebate on purchases to be applied to your mortgage. 1% isn't much, but over time it adds up. We also don't plan on using the card much, so 1% really is even less then. Is this a good card, or is it best to try to find a card that offers cash back on purchases or points?

 
CJM_SHM

Asked by CJM_SHM at 2:14 PM on Jul. 9, 2010 in Money & Work

Level 15 (2,208 Credits)
This question is closed.
Answers (4)
  • If you don't plan to carry a balance, it probably wouldn't be a good idea to open a new card right now to save 1%. New credit lowers your score for about 6 months.
    JulieJacobKyle

    Answer by JulieJacobKyle at 2:17 PM on Jul. 9, 2010

  • Don't charge anything first of all. But if you need a backup card for emergencies, find the lowest interest with no fees. Forget about the points offerings.
    tasches

    Answer by tasches at 2:18 PM on Jul. 9, 2010

  • I HIGHLY recommend applying for an American Express card...which does NOT charge any interest rates/finance charges, BUT you have to pay the entire balance by the due date. If you can't pay it all off, the only thing that happens is your account is frozen until you do (after the grace period), and once you pay it off, you're automatically good to go again.

    Since you're not planning on using credit cards much, it would probably help your credit rating, as you would be showing your ability to not rack up charges, paying them down quickly, and not having to incur finance charges. That 1% "cash back/credit" is quickly lost once the first month's bill comes in charging you up to 30% in interest!!
    LoriKeet

    Answer by LoriKeet at 2:20 PM on Jul. 9, 2010

  • well, any card I'm looking into will have a low interest rate, because that is my first priority. The home mortgage card has 0% for the first 6 months and then 12% after that.
    Julie- I didn't know that new credit lowers your score for 6 months. After working so hard to get to where we are, that seems like a bad idea. I just got off the phone with my husband and told him to call the credit card company we currently have and be demanding that they lower our rate. Hopefully he can get somewhere! Thanks!
    CJM_SHM

    Comment by CJM_SHM (original poster) at 2:33 PM on Jul. 9, 2010