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Question: I have been investing regularly in stocks for a number of years at BUYandHOLD. (In fact, I followed your earlier advice about dollar cost averaging) and am pleased with the results.) However, maybe you can help me with something else. I am a rather old-fashioned when it comes to money management and have resisted all credit cards except a gasoline card. I am retired and want to travel but hotels and airlines seem to insist on credit cards for making reservations. I guess I'll have to make a change!

Sam

Answer:

Dear Sam,

Congratulations on being so self-disciplined about your investments. Don't worry too much about signing up for a credit card. That same characteristic, which you seem to have in abundance -- self-discipline -- will keep you out of trouble with plastic. And, you're right. It's pretty much impossible to buy an airline ticket or book a hotel room in advance without a card.

I suggest you begin your search by looking into AARP's Rewards Platinum Visa Card. You mentioned you are retired so perhaps you are already a member of AARP. If not, membership costs $12.50 for one year -- that includes your spouse or partner -- and it comes with quite a few benefits. You must be 50 years old to join. Details: www.aarp.org.

AARP's Visa card offers various discounts plus 1% back on purchases -- that is, 1% back on purchases starting with the first dollar you spend. The 1% refund can be taken in either cash or in gift certificates. There's no annual fee, a 25-day grace period and the card comes with 100% fraud liability protection.

A perk that will help you save money when you travel -- cardholders are entitled to 10% to 15% off on many hotels, including Best Western, Holiday Inn and St. Regis as well as some savings on some flights with U.S. Airways.

Details, www.aarp.org/bankone or call: 888-595-0542.

If you wish to widen your search, the best one-stop source for credit and debit card information is www.bankrate.com. The site highlights those cards with low interest rates and no annual fees.

Good luck!

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