Today, I did something unusual. I opened a new credit card. I know, I know. Bear with me...there is a method to my madness. My current credit card was opened right after college, and thus has a high interest rate, no perks like cash back, and a fairly low balance. The low balance is good, because it has kept me with less than $1500 in debt, which I think is pretty darn good for someone my age, but I'd really like to have no debt whatsoever (aside from the house and my student loans) pretty soon here.
I usually trash credit card offers as soon as they come. However, today I got one from Citi that caught my eye--zero APR on balance transfers through May of 2010, and cash back eligible on all purchases, and a lower interest rate, with no annual fee. What? You mean I could pay down my debt without paying interest? And I could save up for big purchases, put them on the card, receive the cash back, and pay them off at the end of the month? Sign me up!
Also, the balance is much, much higher than my last card. As I said, I don't plan to actually USE the balance, but having my debt comprise a smaller percentage of the amount on my card will also improve my credit score.
So how do you handle credit cards? Do you have them at all? Do you put all your expenses on them to receive cash back and pay them off every month? Are you still struggling to pay down some excessive spending a few years back? Do you use your credit card more than you should? Clue me in!