cut up those fake credit cards, aka - debit cards. If a thief gets the numbers, you are screwed until you sort it out with the bank, and all of your other checks will bounce, then you will pay insufficient fund charges for each bounce. By using a real credit card or charge card (like the traditional AM EX), your checking account is protected, because you can contest any credit card charges prior to paying them. Pay off the full balance monthly. Also, many credit cards like Am Ex will double the manufacturer's warranty on many items purchased, and will also cover the purchases from theft or loss with certain limitations.
Go with an awards card which puts cash back in your pocket. You should be able to find them without annual charges.
From
ClarkHoward.com:
Oct 15, 2007 -- J.D. Power names best and worst credit cards
Several weeks ago, Clark told you that
Consumer Reports rated
the best and worst credit cards in America. The single best card was the USAA Federal Savings Bank MasterCard, while all cards issued through credit unions came in at No. 2. Meanwhile, the big banks that issue the bulk of cards in America got stinky scores. Now there's a new survey out from J.D. Power and Associates that corroborates the findings of
Consumer Reports. The J.D. Power tally focused on the big names only and is topped by American Express and Discover. On the bottom of the heap, J.D. Power says HSBC is the worst, followed by Bank of America and Capital One. That's very similar to what
Consumer Reports said in ranking Capital One as the worst followed by Bank of America. Meanwhile, Citibank, Chase, Washington Mutual and Wells Fargo all got lousy scores from J.D. Power even though they came in near the top of the tally. So the important thing to note is that you should get your credit card through a credit union if you have access to it. Don't go through one of the giant monster mega-banks. Size does not equal quality in the world of credit cards.