Credit Card Curiosity

[LikeSeriously]

I have never had a credit card before but I am thinking about getting the Chase Disney card. Initially I just wanted it for the $200 cash back bonus and I thought I would just pay off our trip with it (which I actually already have cash for, so not "charging" our trip really). Now I'm considering keeping the card and using it for the rewards points, but only for things I can pay off each month.

I'm wondering if anyone can explain the difference in the two cards.

And I'd also like opinions on using a credit card for reward points for someone who's never used one before. I was just brought up that you pay "cash" for everything or get a loan for big things. But I feel like my plans for the card are responsible. Just still hesitant.

 

[NHDisneyFan]

I have never had a credit card before but I am thinking about getting the Chase Disney card. Initially I just wanted it for the $200 cash back bonus and I thought I would just pay off our trip with it (which I actually already have cash for, so not "charging" our trip really). Now I'm considering keeping the card and using it for the rewards points, but only for things I can pay off each month.

I'm wondering if anyone can explain the difference in the two cards.

And I'd also like opinions on using a credit card for reward points for someone who's never used one before. I was just brought up that you pay "cash" for everything or get a loan for big things. But I feel like my plans for the card are responsible. Just still hesitant.

We utilize our Amex blue card for everything all month and then pay it off, have never carried a balance. We get Amex protection and earn cash back on every purchase. It comes out to an average of $800 a year back in my pocket. If used responsibly credit cards can be great.

 

[arminnie]

Most credit cards have an autopay option to either pay the minimum amount (bad) or to pay it off in full each month out of your checking account.

That is how I do it so there is never an issue of "oops I forgot to send in the payment". But it does require one to be careful and not spend more than will be available in your checking account. But it sounds like you are responsible and disciplined.

I have the Visa Disney but also like my LLBean card as I buy a lot from them. I also have a Marriott Visa to accumulate points for non Disney travel.

The problem with Amex is that so many places do not take Amex anymore.

 

[LikeSeriously]

Oh wow I had no idea that there were auto pay options. That curbs some of my fear. I think if I just use a spreadsheet identical to the one I use for our main checking account, and use that balance, that I would be fine and there would be no way to overspend.

And as long as I pay it off each month, there are no added cost or fees?

Thanks y'all!

 

[GusGus77]

As long as you pay it off every month there are no additional costs (for the basic visa.)

 

[leslie826]

I agree it can be a good move. I put most of our expenses on the Disney Visa card and pay it off each month so I don't pay interest. I have $300 in rewards for our upcoming trip. However, I have just realized that I've had to put $30,000 on the card to get this much in rewards. I'm thinking of switching to a different card with better rewards starting with the Southwest Visa I've been hearing so much about. I love "free" money!

 

[seasheller]

I have a Disney credit card but rarely use it because the rewards are so minimal. Originally got it for the $200 which we applied to a Disney stay. Now I use it when we are in Orlando. Amazingly the card was "compromised" while there when we first used it - we don't know how - but they called and said they were issuing a new one.

These days you almost NEED a credit card. When our sons were in college they always received credit card application propoganda in the mail, but never signed up for any. Then one of them was 35 years old, became an airline pilot, and needed a credit card. He had no credit rating and even though he had money in savings, his own bank would not issued him a card. He also had the cash to pay for a truck, but he applied for a loan to establish a credit rating - we had to cosign. After all that, he said, "If I ever have a kid he's getting a credit card when he's three years old!"

 

[bumbershoot]

I have never had a credit card before but I am thinking about getting the Chase Disney card.

Don't be surprised if they deny you. If you've never had any CC, it's good to know in advance that the Disney card is pretty strict about who they give it to. DH had "neutral" credit (per Chase when we got a car loan from them) because he had no CCs, no previous loans, and nothing in his name (our power has always been in my name, as is phone and cable) , and after about a year with the loan he applied for the Disney card and he was turned down.

So don't be surprised if that happens to you. I might look around for cards that are a bit easier to get; DH was able to get a CC from our credit union, which also helped establish more of a credit history along with the car loan.

 

[LikeSeriously]

Don't be surprised if they deny you. If you've never had any CC, it's good to know in advance that the Disney card is pretty strict about who they give it to. DH had "neutral" credit (per Chase when we got a car loan from them) because he had no CCs, no previous loans, and nothing in his name (our power has always been in my name, as is phone and cable) , and after about a year with the loan he applied for the Disney card and he was turned down.

So don't be surprised if that happens to you. I might look around for cards that are a bit easier to get; DH was able to get a CC from our credit union, which also helped establish more of a credit history along with the car loan.

I have established good credit lots of other ways so I don't see not having a previous CC being an issue.

 

[LikeSeriously]

I have a Disney credit card but rarely use it because the rewards are so minimal. Originally got it for the $200 which we applied to a Disney stay. Now I use it when we are in Orlando. Amazingly the card was "compromised" while there when we first used it - we don't know how - but they called and said they were issuing a new one.

These days you almost NEED a credit card. When our sons were in college they always received credit card application propoganda in the mail, but never signed up for any. Then one of them was 35 years old, became an airline pilot, and needed a credit card. He had no credit rating and even though he had money in savings, his own bank would not issued him a card. He also had the cash to pay for a truck, but he applied for a loan to establish a credit rating - we had to cosign. After all that, he said, "If I ever have a kid he's getting a credit card when he's three years old!"

Yes, the more I look at it, I think I will only get it for the initial bonus and then look for another rewards card if I decide to keep one. Do you know in what way, if any, getting a credit card and canceling it soon after will change my credit rating?

 

[Dictator]

If you are looking to get rewards back from your C/C, there are far better options than the disney visa. Frankly, the "cash back" rewards from the disney visa are some of the worst I've seen. just a standard 1% across the board.

 

[drnp]

I have been using the Fidelity Amex for about 3 years now and am very happy with it. I get 2% cash back on every purchase (sometimes more if I do online buying through their portal). Plus, they dont charge me an annual fee. I like cash because then I can buy whatever I want (hotels, flights, cruises, gift cards, etc).

 

[Luvchefmic]

I have established good credit lots of other ways so I don't see not having a previous CC being an issue.

Chase Disney Visa IS a tough get, PP was just trying to forewarn I had a mortgage and had had several car loans paid off but NO CC on my credit report
It took over a year of applying and they only would give a $500 credit limit, so yes sometime no CC is an issue

As others have suggested, there are better cards out there

 

[Pooh2]

I signed up a few years back for the $200 bonus no annual fee card. I know there are much better points programs out there and I participate in some, but none are as cute as my Disney card with Buzz and Woody!

 

[GaBelle]

Yes, the more I look at it, I think I will only get it for the initial bonus and then look for another rewards card if I decide to keep one. Do you know in what way, if any, getting a credit card and canceling it soon after will change my credit rating?

Yes. Anytime you cancel a cc it affects your credit rating/ score negatively.

 

[ceecee]

I signed up a few years back for the $200 bonus no annual fee card. I know there are much better points programs out there and I participate in some, but none are as cute as my Disney card with Buzz and Woody!

The cashier's are always commenting on my "cute" Disney card. We pay ours off every month and I put $880 on our trip this year. We recently got the Freedom from Chase as well and use it for the 5% rewards in the catagories they offer each month, we also got $150 bonus for signing up. Since they are both Chase, they come up on the website and you can pay them at the same time. Easy!

 

[Gamegrl1]

I'm thinking of switching to a different card with better rewards starting with the Southwest Visa I've been hearing so much about.

I'm a big fan of the Southwest Visa. I tell anyone who flies to check out applying for one. Yes, it has an annual fee (mine is $69) but if you fly even once a year, even on a short hop, it pays for itself. Or if you're trying to earn points for a big trip, hey...work that card by putting EVERYTHING on it and paying it off promptly and you could fly the whole family to Disney after a while! Just be sure to pay it off and do so on time, because carrying a balance (and paying the requisite interest) and/or paying late fees just misses the whole point of saving $.

For example, last year I flew one short round-trip, one short one-way, and one cross country flight (coast-to-coast) for under $100 (the $69 annual fee and the per-flight fee of $5). You can't beat that! It doesn't hurt that I fly a few times a year for work so the points do accumulate faster, but I'd still have this card if I had a different job.

I agree that the Disney card rewards are pretty pathetic. I signed up to get one a couple years ago when they had one of those $200 Disney Dollar promotions and that part of it was great, esp. because there's no annual fee. But I almost never use it because the rewards are so lame compared to my SW Visa.

To the OP: re: your question about cancelling a credit card...it depends. It can hurt your credit score. What I'd actually recommend doing is to check out a website called "The Motley Fool"...it is an excellent site full of all kinds of sound financial advice. Just go to www.fool.com ...you may have to create a log in but it's free. Then type "cancel credit card" in the Search box. I just did and it came up with a full explanation (but too much to put on this thread). They'd explain it better and more thoroughly than I could anyway.