I have to ask, why is cash a "bad idea" to use when Christmas shopping...I would honestly say that credit cards are the worst of the two-simply because unless you have 0% and pay the purchases off before that rate expires-you end up paying a lot more than what you would have if you had paid cash-even with a low rate.
As far as rates go-a lot of that depends on your personal credit history and score.
I personally shop with cash, or my debit card with my checking account-leaving me the ability to shop online as well. I save my credit card for emergencies, or things I CAN'T pay for all at once-like our license plates for our vehicles, which are all due in August-which also falls on school fees/supplies/clothes for the kids. It is always a rough month. But-they are necessities, so I don't feel abd about using the card for the plates.

Also-for the pictures I love using CVS online. I download them, and then pick them up in the local store when I go to get a prescription, etc. They are awesome.

I'm stating my opinion and only that :)

You shouldn't get a credit card for the purpose of carrying a balance. Credit cards can be good things if you know how to use them. They offer protections that are hard to match with debit cards or cash. If you have a charge that you need to dispute, then the credit card company will do that for you. In the meanwhile, you aren't out of pocket any money.

I use credit cards because they give me cash back. I don't even know what the APR on my cards are because I never carry a balance. I have 2 cards that I really like. One is an American Express Costco card. It gives me 3% cash back on eating out, 2% on travel and 1% on everything else. The other card I have is a Chase Cash Plus Rewards card which unfortunately they are no longer offering to new members. It gives me 5% on groceries, gas and drugstore purchases and 1% on everything else. There used to be a few cards offering 5% cash back on groceries, but I think most cards are no longer offered. It doesn't sound like much but credit cards pay me hundreds of dollars each year and I don't have to pay them anything.

Well, I just know too many people who got caught in the credit card game, and ended up way in debt. (Not myself...)

I believe that credit cards have their place-emergencies, rental cars/hotel reservations (where they are required in most cases) and things like that-not just for general shopping.

You may have learned how to have them pay you, rather than you paying them-but you are in the minority. ;)

I have a Dept. store card and my car-maintenance card, but I want a "universal" card. I plan on doing a bit of Christmas shopping online. Also, I don't live in an area where it's safe to carry a lot of cash. I can always cancel the card if someone mugs me or something. I'm starting to think they are good for emergency situations while I'm traveling.
What does "pre-approved" mean when you get the info in the mail? I get those all the time, but figured it was a hassle (or a rip-off).
Thanks for all your replies!!

Preapproved means that from "mailing lists" you have "passed" on the beginning requirements to get the card. A lot of cc companies can check to see if you have purchased a car recently, or that you own your own home, etc. so they know you have SOME credit history-and can preapprove you. This means you will not be DENIED a card...however, your actual credit history and debt to income ration will determine what rate and credit limit that you actually get-and they have to check your credit score/report for that.

So...credit card company B may pre-approve you for a card, but you have to request it, therefore releasing your credit report to them-to find out if you will get a card with a $500 limit, or a card with a $5000 limit.

Others have made a very good point that I failed to emphasize in my response. I use Discover, HOWEVER (big however), I pay off the balance every month. I make money on the cash back bonus because I don't pay any interest, service charges or late fees. I'm using the credit card to pay for things I would buy anyway, so it truly is a money maker.

I just assumed the OP wanted a credit card to try to establish some credit history, not to try to spend more for Christmas than she would have spent using cash (which is a really bad idea).

HappyHouseWife - My advice is don't let a credit card company pick you. Do your research and pick a credit card that works for you. I wouldn't worry about having a low APR because no matter how low the APR, it is still too much. The only reason someone should worry about the APR of their credit card is because they carry a balance but you shouldn't go into getting a credit card with the thought that you'll carry a balance.

Some places where you can do your research:
http://moneycentral.msn.com/banking/...creditcard.asp
http://www.bankrate.com/brm/rate/cc_home.asp
http://www.cardweb.com/

Also here is the top 10 list from consumer reports for consumer-friendly credit cards:
Platinum MasterCard Town North
Visa Platinum First Tennessee
Visa Gold Pulaski
Visa Platinum Rewards Simmons First National
Target Visa Target
Visa Platinum BB&T
Platinum MasterCard Franklin Templeton Bank & Trust
Visa Platinum RBC Centura
Visa Platinum Commerce
Visa Platinum Zions

aphil - yes I know a lot of people who have got in trouble with their credit cards and even at one point I was one of those people. Somehow I didn't realize that my income couldn't match my expenses. Luckily, I didn't end up in too much trouble that I couldn't handle. I use credit cards for everything but I don't think credit cards are for everyone.

If you don't have a credit card, don't get one. Just don't get started with that mess.... seriously. If you have the money for christams shopping and just don't want to pay in cash, then open a separate christmas checking account and get a debit card for it. You can avoid paying "stupid tax" on your christmas gifts.
I would never, ever, ever! recommend getting a credit card for ANYONE.
I also recommend visiting www.daveramsey.com where you can read more about stupid tax and credit cards.

and i can say, i totally second this. Chase is BAD NEWS. DH and i had a heck of a time with our card... we used it more than usual one month, but didn't charge it over the limit - we left enough space for the interest, and whatnot, and we'd always been good about paying it early or on time. But they decided that because we had a "high balance", they had to DOUBLE the interest, so when they charged the interest, it put the card over the limit... so of course they tacked on overlimit fees on top of that. THEN we got into a financial bind, so we could only afford the minimum payments for a few months, which didn't do any good, because of all the interest and overlimit fees... by the worst of it all, a $200+ payment only put about $1 towards the principal, and the balance was almost EIGHT TIMES the original limit!!!! :mad:

they did this to a friend of mine, too... doubled, almost TRIPLED her interest rate, when they bought out one of her credit card companies, because her credit report showed a "high balance". nevermind, that it was on THEIR card, and she had a flawless payment history. :(

DH has a First Premier Visa card, which is pretty good... i think it's one of those, meant for people who have no credit, or are rebuilding their credit, 'cuz he hadn't bothered getting any credit cards until a couple of years ago. it's been a good one, though :)


as for photo stuff, i wouldn't have a clue. i don't generally use a digital camera

I have gotten several pre-approval notices in the mail, and I did take one, and only one, with Capital One. When I entered all of my info online, they didn't ask for any employment info, just our annual household income. I stay at home and only my DH works, but they still issued me a card with no annual fee, and a high credit limit. Just check them all out, but I have had no problems with CO.

I respect Dave Ramsey's position on credit, to an extent. One needs to have a good credit score to get the best interest rate for a house, for example. I don't think it's reasonable to think you can pay cash for a home.

I know people who can pay cash for just about anything. Until they got a discover card, they didn't have a credit score and were unable to obtain credit when they wanted it for convenience because they'd never used credit for anything.

I think it's prudent to establish a strong credit history and to use credit cards if you have enough self control to charge only what you can afford to pay off at the end of the month and only what you would buy if you were using cash.

I'm not planning to carry-over a balance. I noticed today that one of my store cards increased my credit limit. I've had the card about 6 years. I didn't authorize it.. is it common for them to "automatically" increase your limit???
Opening a "Christmas account" might not be a bad idea.... Thanks for the idea. So far, it seems Capital One would be the best way to go-as far as a good company. I might look into that later.
Has anyone even used an online service (Experian, Transunion, Equifax) to look at their credit score/credit report? Is it safe???? How much does it cost??

I had a both a Citibank, Fleet & Capital One until I did a debt consolidation loan to get rid of all my credit cards, some miscellaneous medical bills and paying off my daughter's braces, Capital One was the one with the lowest balance and the hardest to get an answer on the payoff, I paid off the amount they said only to be billed a small amount the next month I finally just ended up doubling what they said and they had to send me a refund check that took almost a month to get to me when they said that I would have it in three to seven business days.

You get a free credit report from every service every year. Go to their websites for details.

I've already requested a copy of my free credit reports, but you have to pay $5.00-6.00 for the credit "score".