Choosing the Right Credit Card

Hi Joel,

I spend $50,000 per year or more via credit cards. I use AmEx for most, but some vendors won't accept it. I'm bewildered by the credit card offerings available because I'm unable to get all the facts and compare apples to apples.

I pay off the entire balance every month, so the interest rate doesn't matter. Because I travel, the grace period does matter. Most importantly, I want a card on which I can earn points that do not expire and one where I can use the points on the airline of my choice.

What's your recommendation?

Thanks.
Paul

Hi Paul,

The credit card world is indeed bewildering. I compliment my Diners Club Card with a U.S. Bank Visa Business Card (qualification is based on your personal credit history—you don’t necessarily need to be a business owner to qualify). This card has no annual fee with an APR of Prime +3.9%. In addition, you can choose to add a travel reward program for a $55 annual fee.

A good resource for determining what mileage-earning credit cards best meet your needs can be found at this link: Choosing the Right Credit Card.

Incidentally, the new edition of the Penny Pincher’s Passport (May 2004) has a chapter devoted to credit card offerings. You can pre-order a copy through Amazon.com by following this link: Penny Pincher.

All the best,
Joel