Here's a piece from Yahoo that says the new "One" credit card by American Express isn't the great deal it's cracked up to be. Let's start with the details of the card:
"One by American Express" automatically deposits 1 percent of every purchase you make into a savings account. There's no minimum balance required in the savings account, which offers an APR of 3.5 percent. At the moment, AmEx is offering a $25 kicker into the savings account with the first purchase on the card.
This seems to be an "ok" deal to me, but certainly not the greatest. I get more than 1% back in cash over the course of a year based on how I use my current credit card. Plus, 3.5% isn't great. You're better off going with Emigrant Direct.
But it gets even worse. Here's the fine print:
A year after you start using the card, AmEx charges an annual fee of $35. So, you must spend at least $3,500 on the card to break even, since 1 percent of $3,500 is $35 (you'll earn a buck and change in interest on the $35.)
Pay late just once, and you'll ring up a late fee of $29.
The card's APR ranges from 13.24 percent to 15.24 percent. Miss the due date three times, and the APR soars to nearly 22 percent.
My credit card habits include:
1. Developing a budget for all my spending.
2. Don't buy/charge anything not in the budget.
3. Pay off the full balance every month.
4. Use a cash back card. I use the American Express Blue card and should get about $300 or so back for 2005.
Comments