Wouldn’t it be great if you could design your own credit card? Imagine a credit card that would be absolutely perfect for you and your finances, down to the very last detail.
So, what are the most important features that every credit card should have? Well … If I were a benevolent king I would decree that every card in my kingdom must have the following 10 features:
No annual fee for life. There’s nothing worse than paying a credit card company an annual fee. As king, I’d send those fees to the gallows.
Long 0% introductory rate. Let’s face it: For many royal subjects, credit card introductory rates come and go too quickly. Just as they get used to that 0% rate, the offer expires and then they’re stuck paying much higher interest. In my kingdom, the introductory rate would be extended.
Impervious to fraud. Wouldn’t it be great if you never had to worry about becoming a credit card fraud target or even losing it? A benevolent king such as myself would make the perfect card 100% fraud-proof.
Cheap cash advance rate. If you’ve ever opted for a cash advance on a credit card, you know that high-interest charges begin accruing immediately. Is there that much difference between withdrawing cash and making a purchase? If I were king, cash advances would be treated the same as a purchase credit.
Reduced fees on late payments. No matter who you are, the time will probably come when you slip up and fail to pay off your bill before the grace period expires, or — even worse — make a late payment. Unfortunately, unless you have excellent credit, most credit card companies offer little leeway in this situation and immediately hit you with a late fee. If I were king, the perfect credit card would automatically waive those fees if you had an excellent payment history.
A rewards program with a high earn rate on domestic and international purchases. It’s great to earn credit card points when you make purchases with your credit card; but with most programs today, points inflation makes it harder than ever to earn those rewards quickly. Wouldn’t it be nice if your reward program offered a higher earn rate for each dollar you spend? It would in my kingdom.
The ability to redeem your points at any time for anything. If I were king, you could instantly redeem your points at any time for concert tickets, utilities, groceries, grog, gold, renaissance fairs, or even tarot card readings. Well, assuming tarot cards are your thing.
Personal concierge service. Yes, it’s true that many credit cards offer a personal concierge service. However, oftentimes they come with a high annual fee or special qualifying conditions. If I were king, concierge service would come with no strings attached.
Great customer service. Who hasn’t called their credit card company with a question, just to get pushed off on somebody else, who then passes you to another department? If I were king, every credit card company would offer top notch customer service — or it’d be off with their heads!
Flexible payment options. If I was in a really good mood, I might even consider hiring a guy like Robin Hood who would be responsible for automatically drawing payments from somebody else’s account — preferably a ridiculously wealthy billionaire duke or duchess who would never miss the cash. Yeah, yeah. I know what you’re thinking — but it ain’t gonna happen: The gold in the crown’s coffers would be strictly off limits.
Hey, it’s good to be the king.
Photo Credit: Rochelle, just rochelle
Actually, the ideal credit card would like an unworked jigsaw puzzle, freshly out of the food processor. But I wouldn’t expect a credit card referral site in Australia to write that, even on a blog for responsible people.
Responsible people, TML, don’t fear credit cards because they already know how to use them properly.
True, but responsible people do not make money for credit card issuers. The irresponsible use of credit causes problems for all of us and the credit card companies share in the blame.
Responsible people make plenty of money for their credit card companies simply through all the purchases they make — those merchants pay a small fee every time a purchase is made using those credit cards.
The credit card companies are no more to blame for the woes of people who abused their credit cards than alcohol companies are for drunk drivers who chose to get behind the wheel while intoxicated. Most personally responsible people understand this.
Yankee Thrift: 1) Don’t buy unless you absolutely must have it. 2) Don’t buy new if used can and will do. 3) Until you’ve exhausted ALL other options , never,ever use a credit card. 4) Immediately, if not sooner, pay that credit charge.
Tip: Try to negotiate with the merchant if you pay cash-at least for the cost of the fee he/she must pay to the credit card company.
Ben said:
3) Until youve exhausted ALL other options , never,ever use a credit card….
I disagree.
The cost of the merchant’s fee is built into the price of the merchandise generally, so unless there is an equal or greater discount for cash payment at the time of purchase, we are forced to subsidize the credit card industry if we don’t play the game. Often, it is illegal in places to even offer such a discount (CC industry lobbying, no doubt).
SO, the key is to take advantage of the discount ‘points’ offered by using plastic on purchases you were going to make anyway (gas, groceries, etc) AND NEVER, EVER RUN A BALANCE AND PAY THE BLOODSUCKERS A DIME IN INTEREST.
The “best” card depends in part on how it will be used (I realize this post is about an imaginary “ideal” card, but it might be helpful if I relay my experience with respect to a real card):
Points 2 and 4, 5 and 10 are not important for those who pay their balance in full every billing cycle and have the funds to make sure that happens in the event of unforeseen financial reverses.
Point no. 3 is impossible, as some of the most sophisticated organizations in the world are finding out – hackers have always found a way in. But, all credit cards are required by Federal law to relive the credit card holder of obligation for fraudulent charges if the card has not been lost and the fraudulent charges are reported within 60 days.
Points 1 and 6 through 9 are well met by my Capital One Quicksilver Visa card, IMO.
But, since fraudulent charges increase the cost of credit for all of us, Report any such to the credit card company and cooperate fully with their investigation.
Managing your credit card may be challenging at times so it is essential to have the right knowledge about it. I encourage people to use credit cards only when there is no other option.
Disagree. As tnandy pointed out above, there’s nothing wrong with using credit cards as long as you pay them off in full at the end of the month.