New Credit Card. Should I buy a new car?
Posted on | February 8, 2008 |
Tuesday night, after getting in from the airport just in time to grab a bite to eat, grab the kids, and dash to our local precinct in time to vote for Barack Obama, The Husband gave me an American Express application he’d received in the mail. Actually, I’d received it but he had opened it and looked at it. Normally that type of thing goes straight into the trash. But this time he handed it to me and said he thought I should give them a call and get a card.
The application was for an American Express Blue Cash® card and it had an RSVP number printed on it and invited me to simply call their 800 number, give them the RSVP number, and quickly be done with the application process. I put it in my “to do” pile. Last night, while waiting for The Husband to be ready to watch our movie together, I gave American Express a call.
The application process was not quite as quick as I’d hoped. I already have an AMEX card through our business but since I was applying for a personal card in my name, I had to go through a few hoops. Nothing too strenuous or bothersome, though, and after about 10 minutes I was very politely informed that my application had been approved. In a few weeks I’ll receive my new American Express Blue Cash® card — with an $18,500 limit. When the customer service rep informed me of the credit limit, I joked that I could go out and buy myself a new car. She thought it was very funny. The Husband, who at this point was sitting and waiting for me to finish, smiled at my joke too.
I sure am glad that there isn’t any part of me, not even the most remote part of my being lurking in the shadows of my subconsciousness, that takes my little joke seriously.
This will not be my first credit card. It isn’t even my fourth or fifth or sixth credit card. It isn’t my highest credit limit card either — though it’s probably in the top three. The Husband’s rationale for encouraging me to apply for the card was: one, it would be good to have a personal AMEX card for purchases at places like Costco that only accept AMEX; two, it’s always a good idea to have a card for emergencies like airline tickets; and three, it’s a good idea for me to have a couple of cards in my name only just in case something happens to him. This card will help build up my personal credit score (my credit is squeaky clean but I don’t have a great deal of credit that isn’t tied to his credit — which, naturally, is as clean as can be) and will likely prove to be very important in the event of his demise (since he’s got terminal cancer, his demise isn’t quite as theoretical as I’d like it to be).
The card has no annual fee and offers 1.5% cash back on “virtually” every purchase I make and up to 5% cash back on purchases at grocery stores and gas stations. The fine print excludes purchases at “departments of superstores or warehouse clubs” which means that none of my Costco purchases (warehouse or gas) will qualify for the cash back rewards. I anticipate switching to this new card for all of my Costco purchases (warehouse and gas) as well as using it for all of my non-Costco gas station purchases. Other than that, I expect the card will sit in my wallet quietly building my credit and sitting at the ready should an emergency arise that I want to spread out a little and not lump together with my monthly household expenses. The one thing I can guarantee it will not buy? A car.
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February 9th, 2008 @ 9:06 am
You brought up a very good point about having credit cards in your own name. Not those where your husband is the main card holder & you are the given a card w/ your name on it. It can be very important for a wife to have. My uncle passed away suddenly @ age 34 married w/ 3 small childern. My aunt did not really have any credit souly in her name.Everything they owned was in his name & his credit alone.Home, cars, credit, etc. Her untimely death was work related & involved her needing lawyers . And costly travel expensises. Not having credit in her name caused a few delays & issues.
I ‘m hoping you can do a entry regarding such a subject. For a lot of coulpes in their 30’s , the last thing were thinking about are such issues.
February 9th, 2008 @ 12:53 pm
Kristine — Thanks for your comment and for recommending I write an entry specifically about the subject of developing one’s own credit and preparing for the unthinkable. You’ve inspired me!
I intend to begin working on a new series — Preparing for Widowhood. Why? Because that’s essentially what I’m doing in my own life and with my own finances right now. As with my other posts, it will be more of a journal of the steps I take rather than expert advice but hopefully some of what I do and say and learn will help others.
I think you make an excellent point, too, that even couples in their 30’s need to address these issues and plan for these contingencies. In my little circle of friends it had long been assumed that I would be the one left widowed. Then, very unexpectedly and quickly, a friend’s husband was diagnosed with cancer. He died within 6 months of diagnosis. He was young and very fit and doing everything right in his life. She was devastated, naturally. But having never considered the possiblity of being widowed, she had never put an ounce of thought into how she’d handle the financial aspects — life insurance, mortgage, children, cars, medical insurance, etc. She ended up making some very ill-advised decisions in the first year after he died that, in retrospect, she really regretted.
February 13th, 2008 @ 1:04 pm
[...] Amex card is usually third though I’ll probably retire that card altogether when my new American Express Blue Cash® card arrives. After the Amex card comes my two Chase cards (rarely ever used but carried [...]