Banks are owned by shareholders who want the banks to squeeze every last penny out of their customers.

Credit Unions are owned by the depositors, in other words, the customers. They can offer excellent rates because they don’t have to siphon off income to feed the shareholders.

They’re probably not as talented as the big banks at investing, but they cost less to operate so the customer still comes out ahead in the end.

I have a 5.9% Visa card with a grotesquely high credit limit which I pay off every month. (No, you won’t get my grotesquely high limit, but that’s because you’re not me…)

My Visa has no annual fees, but I choose to pay an optional $20/year to get a frequent flier air mile for every dollar I spend.

I don’t think they have a cash back option, but I figure I do OK on the air miles.

But wait, there’s more: I’ve got an interest bearing checking account with no fees. No fees for ATM withdrawals. If I overdraft, it comes right out of savings with NO fees. Of if you don’t want to keep emergency money in savings, you can set up the overdraft to come from Visa instead, also with NO fees (up to certain limit).

When I made a very unusual purchase with my credit card, they called me in less than 5 minutes to verify my card number hadn’t been stolen.

There probably are some kinds of accounts you wouldn’t want to deposit at a Credit Union, but I can’t think of a good example. If you haven’t checked out banking at a credit union, you may be wasting your money.

WALK AWAY from cash back, airline miles, bonus rewards, or whatever cards.

They throw pennies at you, hoping you will spend dollars.

If you carry a balance – ever – and most Americans do, the interest will more than exceed that $99 “free” flight to Duluth.

A CREDIT CARD IS A DEBT INSTRUMENT – A LOAN – SO DON’T BE DISTRACTED BY FREE MILES, MONEY BACK, CREDITS, S&H GREENSTAMPS, FREE TOASTERS OR WHATEVER.

Would you get a 15% mortgage on your home because they offered free airline miles? Of course not, don’t be stupid.

Staggering credit card problems are hard to get out of, and usually the trap was baited with airline miles or cash back.

Get a low rate card, keep a low limit, pay it off every month, live a CASH lifestyle.

It is important to treat your credit card like cash, money coming straight out of your bank account. If you know you can’t afford something without credit, then it is probably best to try to avoid the purchase.

Find out which cards have lower rates than your current card – this applies to both new user and for those who are considering a balance transfer.

I recently stumbled onto that quirk of paying utilities using my CC. Usually I paid utilities from my checking. However, there are some bills I can pay with my CC with no extra fee. Like my cell phone bill. I can pay it using my CC: no difference in what I pay but since it is using my CC, I also get credit towards cash back.

And since I pay my CC bill, like all bills, in full every month, things are ok.

http://postcardsfromthezone.blogspot.com/2006/06/213-card.html

Honestly, I’ve moved almost all of my financial accounts over to Schwab. I really like all of their products, especially this credit card and their checking account.

Because I have Internet banking with my credit card, I often pay off the balance several times a month (that is, if it’s a small balance and it makes sense to just clear it.)

Does anybody know if this could have any effect on my credit score – either positive or negative?

Some information on the Barnes & Noble Mastercard:

I have a Barnes & Noble Mastercard. Instead of opening it via the internet, I called the telephone number specified. I think that when I was asked I just said that I did not have a membership number and that I saw the card information on the website. Barclays Bank opened the account without my having a B&N Membership. I used that card for over one year without having a membership, with no problems from Barclays Bank and no annual fee charged.

According to the FAQ on the B&N website:
“Do I have to be a Member to apply for the Barnes & Noble MasterCard?

No. Anyone can apply for the Barnes & Noble MasterCard.”

FAQ: http://www.barnesandnoble.com/membership/mc.asp?PID=19265&cds2Pid=16385#2

I received a $25 gift card right up front for opening the account, an offer which is still valid on the website.

I receive 5% cash-back credit for any Barnes and Noble purchase, in-store or online, credited directly to the statement.

Then, every non-B&N purchase dollar spent adds up to create rewards for a B&N gift card. They send it to you automatically upon reaching $2500 spent.

The 5% statement rebate also applies to used copies of books or textbooks, not just new ones.

This month I did choose to become a member because I entered graduate school and my university has a B&N college bookstore, so I will automatically get 10% off my textbooks and any purchases, plus the 5% rebate on the credit statement. Frequently, they send coupons via email which I can also use for regular books, music, or videos (not used or text) which can get me an extra 10% or 15% reduction as well. I will definately make back the $25 membership fee in saved dollars.

I checked the fine print on the B&N gift cards and they can be used at any B&N store, college bookstore or otherwise. According to the B&N website, they DO NOT expire.

After I finish graduate school, I will probably drop the B&N membership. I chose not to have it automatically renew.

The purchase APR I have on this card is 15.74%. This does not concern me since I pay the balance in full on this and my other cards, every single month.

This card really works for me for my own purchases, as well as the potential to earn gift cards that I can then use as gifts for friends and family, since all have access to B&N stores or online.

DeeBee

Also, doesn’t Discover do two-cycle billing?

There’s effectively a $25 annual fee, since in order to keep the card, you need to maintain your B&N membership at $25/year.

But you get a $25 B&N gift card for every $2500 you spend outside of Barnes & Noble, and an extra 5% over the member discount when you use the card in the store.

By using the card for everything, and paying off the balance every month, I generally get a gift card every month (including purchases I make for work that get reimbursed).

So the card effectively funds all or most of my B&N expenses for free, since I spend roughly $30/month there.

There are many cards like this, that aren’t store charge cards like Macy’s cards, but rather good credit cards that have excellent bonuses in a niche market. I prefer cards like this to gas cards, because the rewards fall into a splurge category rather than a necessity category like a gas card. But if you want to cut out extras from your budget, then a card linked to a necessity might be better in the long run.

Has my credit rating been hurt because of this? Not really, its still above 720. You just have to be smart and play the game with the credit card companies.

I just searched for the HSBC card, and I can’t find my deal anymore. I did a little searching, according to http://www.creditcardgoodies.com forums they changed the rewards program last year. But they seem o have grandfathered everyone in who already had the 5% cash back, because I am still getting it, as is my wife.

Sorry to get your hopes up!