[Mouselander]

When the Disney Visa card was issued by Bank One the interest rates were sort of ok for a card with points - if you paid off WDW tickets and vacations within three or four months. Of course monthly charges paid in full each month do not have interest added so it's great if that is all you use it for. NOW, however, since Chase has bought out Bank One, I have heard from several Bank One Disney Card holders that Chase has raised the rates from 3% up to as much as 5% because someone at Chase thought the person carried too much personal debt. It had nothing to do with income, expenses, payment history, credit scores and the like. Simply a Chase employee deciding that a persons personal debt was too high. I haven't heard of then raising existing Chase cardholders interest, only former Bank One customers.

I have a Bank One Disney Card and was going to charge our WDW tickets on it next month. It usually takes three or four months to pay for our annual WDW vacation, then we just use and pay off monthly for the other eight or nine months of the year. Now I will be charging the tickets to another card with a 6.25%, well I guess next months interest rate will be 6.50% thanks to Greenspan! I'll use my Disney Card points earned to reduce the cost though.

I agree with everyone who advised to use it for regular purchases and pay in full each month.

[rlcarmichael]

LOTS of good advise here...

No - interest rate is high and the rebate is low. You really don't get anything other that another high rate card with a Disney picture on it. Big woop. You can't see the picture in your wallet.

You need to establish credit, but you DON'T need balances. Your local bank is your best bet. Start with a secured credit card - deposit money in a savings account which they will pay you interest on, then pay off the balance EVERY MONTH without fail. You are establishing credit and not costing yourself anything.

Balances on your credit cards are a GIANT BLACK WHOLE. You will end up paying many times over what you originally spent in interest and late charges. Most people take 10-20 years to dig out usually after getting to the point they have so many accounts that they can only make the minimum payments. That's what the banks want you to do. They are making SERIOUS money 15-25% plus assorted late and over balance charges. They make 7-10% on other loans. Why else would you see so many credit card ads on TV and in the mail. Those ads aren't free you know.

Only use credit and payments for things that have value like houses and cars.

There are cards that offer much better rebates. ESPECIALLY when your rebates are restricted to one company product. Chase offers 1% in Disney dollars. But the GM Card offers 5% - towards the purchase of a new car which is great if you buy a new car every four years or so like I do in my business.)

Heck, my AAA card gives me 1-3% CASH back on pay at the pump gas purchases! And at todays prices that's almost 9 cent per gallon discount!!! THAT'S why you use credit cards. Make the system work for you, NOT the other way around.