Credit Card Quick

Are your Credit Card Rewards Working for you? Tips for Getting the Most out of your Rewards

Credit Card Rewards

Credit cards with rewards features are arguably the most popular types of credit cards these days. Consumers want to see a return on their spending, and there is no better way than through rewards credit cards.

In exchange for making purchases with their credit cards, credit card companies are offering pretty lucrative rewards in return. However, in order to get the most out of your rewards credit cards you must be educated about your rewards program and what it can – and cannot – do for you.

Before selecting your next rewards credit card, take a moment or two to really scrutinize the rewards program. Pay close attention to the card’s terms and conditions, and don’t just go with a rewards credit card that sounds good. Make it your mission to find the best rewards credit card for your particular situation so you can be one of those consumers who truly benefit from rewards credit cards!

Some points to consider:

• Unless you plan on paying your card in full each month, don’t use a rewards credit card. It doesn’t make much sense to work towards rewards when you’re paying interest charges each month. In other words, weigh the benefits offered by your rewards credit cards with the interest charges you pay each month if you carry a balance and you’ll soon see that the negatives often outweigh the positives.
• Pay close attention to the level of spending you must achieve before you begin earning the maximum on your rewards credit card. For example, many credit cards offer “up to” a certain percentage in rewards, but many times the customer must meet a minimum amount of spending to actually achieve the maximum rewards percentage.
• If you choose a rewards credit card that offers frequent flier miles, really pay close attention to the level of spending you must achieve to earn a free flight. If you typically charge a lot on your credit card over the course of the year then a frequent flyer credit card is probably a good choice; however, if you tend to charge small purchases here and there you probably won’t earn enough points to qualify for a free flight for quite some time.
• Consider annual fees when choosing your rewards credit card. Some credit card companies charge a yearly fee, and others do not; but don’t dismiss the cards that do charge an annual fee, as their rewards program may far exceed their competitors that don’t charge an annual fee. In other words, weigh all of the card’s terms and conditions before you make a decision.

How to Find the Best Travel Rewards Credit Card

Credit Card Rewards

Travel rewards credit cards are a great perk for travelers; but all travel rewards credit cards are not created equal.

Don’t assume that your travel rewards credit card is just as good as the competition, as travel rewards credit cards can vary greatly regarding their rewards, terms and conditions.

So, how do you know if you’re getting best rewards credit card? Start by looking for a travel rewards credit card that offers the following features:

• An attractive sign-on bonus – Many travel rewards credit cards now offer fantastic sign-on bonuses that lure customers to their card. Many sign-on bonuses include free companion flights or a large number of bonus points or miles when you make your first purchase. Because so many travel rewards credit cards offer great sign-on bonuses it only makes sense to find a particularly attractive sign-on bonus.
• Look for extra perks – Many travel rewards credit card companies encourage consumers to use particular retailers by offering double or even triple rewards points. Other travel rewards credit card companies also offer bonus rewards points for shopping at certain retailer categories, such as home improvement or travel-related companies, for example.
• Terms and conditions – Aside from the obvious travel rewards points and perks, it is important to pay close attention to the card’s terms and conditions. Often times, credit card companies offer great travel rewards upfront, but catch the consumer on the back end by charging high fees or interest rates. There is no reason why you can’t find a travel rewards credit card that has both attractive rewards and competitive terms and conditions – it is just up to you to find the card that best works for you.
• Weigh the card’s benefits – if you are a big spender then a travel rewards credit card is probably right for you, as you are likely to earn travel rewards more quickly. If you pay off your card in full each month then a travel rewards credit card is also probably beneficial for you. However, if you don’t spend much or if you are often unable to pay your card in full each month then you may want to consider a standard credit card with a low, fixed interest rate.

RevolutionCard Brings Change to Credit Card Industry

Identity Theft

RevolutionMoney has finally launched its highly anticipated RevolutionCard, which is a secure alternative to standard credit cards.

Why the RevolutionCard is Different

Examples include the fact that the RevolutionCard has no account number, name, or signature line on it. The payments are therefore authorized by entering a PIN number, similar to that of a debit card. To make purchases online or by phone, customers can simply use their PIN number.  In other words, the cardholder does not have to provide an online retailer with a credit card number, thereby making the transaction more secure.

The RevolutionCard may act like a debit card, but customers receive the same rewards offered by standard credit cards. In fact, customers of the RevolutionCard are afforded plenty of loyalty programs, which include exclusive offers and discounts on many types of purchases.

Benefits of the RevolutionCard

The RevolutionCard was designed to combat identity theft that has plagued so many millions of Americans. Many consumers are looking for alternatives to traditional credit cards out of fear of credit card theft, and the RevolutionCard fits the bill nicely.

The RevolutionCard is offered by RevolutionMoney, which is a part of Revolution LLC, a company founded by Steve Chase, the founder of America Online.

The RevolutionCard is the first of its kind in the industry, and is the first new credit card brand since the introduction of the Discover card in 1985. It is the first card that is activated and used by entering a four-digit PIN code.

Because there are no credit card numbers on the RevolutionCard, the chances of the card being stolen and used by credit card thieves is greatly reduced. The card also encrypts all transactions and activities, thereby providing an added level of security.

The processing involved with the RevolutionCard is also reduced, thereby offering retailers reduced fees and merchant incentives.

The RevolutionCard is currently accepted at over 650,000 retailers across the United States. In addition, 85 percent of ATMs now accept the RevolutionCard.

The RevolutionCard may become a growing trend in the credit card industry, as many traditional credit card companies hike up interest charges and related fees for their cards. As a result, many customers are looking for other options in an effort to avoid the skyrocketing charges associated with traditional credit cards.

Variable-Rate Credit Cards Entering the Market as Creditors Convert Fixed-Rate Cards

News

Hiking a fixed-interest rate credit card is going to be a whole lot tougher than it used to be, thanks to the federal credit card legislation set to take effect on February 2.

Fixed Interest Rates to Variable Interest Rates

This legislation leaves many credit card companies in a predicament when it comes to raising interest rates; however, the problem seems to have been averted as creditors turn to converting fixed-interest rate cards into variable ones.

Chase appears to be the leader of the pack when it comes to converting its customers fixed interest rate cards into variable interest rate cards. The new credit card legislation imposes tough standards on raising fixed interest rate credit cards, but excludes their variable interest counterparts, so creditors are taking advantage of this loophole and switching fixed interest rate cards into variable ones, even for those with high credit scores and excellent credit histories.

Hidden in the Fine Print

Creditors see this move as a smart financial one, as most variable rate credit cards are linked to the prime rate, which will most likely see a rebound as the economy continues to improve.

Chase, which started to convert credit cards from fixed rates to variable rates, also included an added margin, which is calculated by Chase.

Because the prime rate continues to be low – in fact, near an historic low – these changes are often not noticed by cardholders, as their interest rate likely holds steady. However, in the months to come, many consumers may begin to see a steady increase in their credit card’s interest rate.

Currently, the prime rate is 3.25; that’s down from 4 percent just a year ago. The federal fund rate, which is also at just .25 percent, down from 1 percent a year ago, often influences the prime rate.

Your Options

This latest tactic by credit card companies is yet another reason to pay careful attention to your card’s terms and conditions. Because of the low prime rate, you may choose to hold onto your current card and then re-visit the situation when the prime rate begins to rise next year. However, you may also choose to simply select another credit card that offers a fixed interest rate to save yourself from the hassle of waiting for the prime rate to increase, along with your interest rate.

How to Obtain a more Competitive Rate with your Current Creditor

Introduction

Everyone is struggling to survive this incredibly difficult economic time, and credit card companies are no exception.

Desperate to recover some of the losses experienced over the last year or two because of the meltdown of the credit sector and the subsequent fall of the housing market, many creditors began to employ less-than-upfront tactics to saddle consumers with more debt. As a result, the government enacted the new credit card legislation, which simply led to more underhanded credit card tactics before the law could be enacted.

You may have very well found yourself in the crosshairs of this credit card mess. If you received a statement or letter from your credit card company with news of an increasing interest rate, decreased credit limit or other changes to your card’s terms and conditions, you may be wondering what your options are, if any.

In particular, many credit card customers with great credit histories and strong credit scores have had their credit limits slashed or their interest rates increased. The question is: is there anything you can do to combat these new credit card tactics?

If you have consistently paid your bills on time and stayed within your credit limit then it is possible to convince your creditor to revert the changes to your account.

How to Achieve Success with your Credit Card Company Following a Hike in Interest Charges and Fees:

1. Contact your credit card company upon receiving news of your credit card’s terms and conditions and let them know that you are a valuable customer and that you want your card’s terms and conditions reverted back to their original status.
2. If the credit card company is not receptive to this request, let them know that you may be forced to cancel the card and instead accept a better offer from another credit card company.
3. If you don’t have any luck with a customer service representative, ask to speak to a supervisor.
4. If you don’t get anywhere with a supervisor, cancel the credit card. The creditor must then allow you to pay off the balance of the card at the original interest rate. However, it is best to secure another card before canceling your current one.

Are Retailer Credit Card Rewards Worthy of Your Interest?

Credit Card Rewards

You know the holidays are upon us when retailers begin pulling out all the stops with their credit cards. Great deals for opening a retail credit card; great deals for using your retail credit card; and special bonuses, coupons and shopping events for being a cardholder are just a few of the things that retailers use to entice us into using a retail credit card.

However, are retail credit cards all they are really cracked up to be?

You may find it all a bit too tempting when you go to make a purchase and a store associate tells you that you can open a store credit card within minutes and save as much as 20 percent on your purchase. This is usually the time when you must make a decision regarding the advantages and disadvantages of owning a retail credit card.

Weighing a Discount vs. a High Interest Rate

If you know, unequivocally, that you will pay off your credit card purchase when your first statement comes then it may be worth your while to open a retail credit card account. However, if you even have the smallest inkling that you may not be able to pay the balance in full then you are probably better off passing on using a store credit card.

This is because retail credit cards come with notoriously high interest rates. In other words, any discount that you may have received for opening a new account will likely be erased the first time you are unable to pay your bill in full.

Too Much Temptation

Another factor to consider is your spending habits. Many times, individuals armed with retail credit cards are likely to spend more than if they were using another form of payment.

You may find yourself making more frequent purchases, purchasing more expensive items or simply purchasing more than you otherwise would have if you were paying with cash, for example.

Consider your Credit Score

Although a nice payment history on a store credit card may bode well for your credit score, missing even one payment may have a strong impact on your credit score, in a negative way. Plus, retail credit cards have lower credit limits, which may just not make much sense when you have a perfectly good major credit card with a low, fixed interest rate.

‘Superprime’ Consumers see Surge in Credit Card Offers

News

Although the economy and the credit sector is still far from being strong, there does seem to be small changes taking place that are giving many economists reason to be optimistic.

Creditors have begun extending credit to excellent credit card customers, also called “superprime” customers, as evident in the increase in credit card offers being delivered to the homes of these consumers.

In fact, credit card promotional mail volume rose 34 percent between September and October, which equals about 180 million pieces of new mail. This level is the highest it’s been since December 2008. It was also the largest month to month increase in credit card promotional mail volume since 2004.

Lower Credit Card Defaults Equal More Lending

The industry has begun to see a small drop in credit card defaults over the last two months, which may have banks breathing a little easier and offering to extend credit a bit more.

As credit card companies begin to spend more for their marketing efforts, many analysts see signs of credit deterioration beginning to subside.

It’s still important, however, to note that total credit card promotional mail volume is still down a whopping 74 percent from this time last year, which is the lowest level in 10 years.

Affluent Customers Only, Please

Only the most affluent customers will likely see an increase in credit card promotional mail, though, as credit card companies are expected to target only those customers with excellent credit histories and large incomes.

The two largest increases were seen from Chase and American Express over the last two months. Much of this activity from JPMorgan Chase & Co. is due to the release of its newest card, Sapphire.

American Express continues to aggressively compete with Chase to capture the wealthiest of customers, as seen by its increase in marketing spending – nearly $150 million more in the third quarter than the second quarter. American Express notes that it will continue to increase its marketing efforts as loan losses decline.

Credit card companies are also pulling out all the stops with their rewards programs in an effort to snag the affluent sector of the market.

Easy Ways to Manage your Household Budget to Avoid Credit Card Debt

Credit Card Debt

Many of us, at one time or another, have found ourselves short on money and our paychecks remain days – or weeks – away. Overspending can result in high credit card debt; something that we all want to avoid.

Instead of using credit cards to make ends meet, make a household budget to better manage your money. Luckily, there are easy ways to get a grip on your budget so you can save your credit card purchases to only those that you can afford to pay back:

• List all of your expenses, even the most insignificant – The best place to start when making a budget is with a list of expenses. Account for every expense – even the cup of coffee you purchase every morning on the way to work – otherwise you won’t have a clear picture of where your money goes every month. From gasoline and groceries to clothing, entertainment and utilities, make a comprehensive list and go from there.
• Be realistic about your monthly expenditures – You can’t make a budget if you aren’t honest with yourself. If you make a restrictive budget that is simply not realistic you cannot expect to keep it. Be honest about your budget so you can better manage your expenses.
• Pay your bills –and yourself – first – Don’t spend a penny until you have taken care of your obligations, which should include your bills and your savings and retirement accounts. Many individuals make the mistake of spending elsewhere before obligations have been met, which surely leaves them in a bind when it comes time to paying bills. Paying your bills on time, which includes your credit card bills, is incredibly important for maintaining your credit score and credit standing, which thereby saves you money from late payments, high interest rates and an overabundance of debt.
• Better manage your monthly bills with online bill paying – If you are having difficulty balancing your checkbook or getting checks written and sent in time then you may be able to benefit from the convenience of online bill paying. Online bill payment systems, which are often available through your bank, allow you to better manage your money by paying your bills on time and by providing you with a current account balance at any given time.

Prepaid Credit Card Usage Surges as Holidays Approach

Choosing Credit Card

Prepaid credit cards are gaining in popularity, and their usage is expected to hit an all-time high this holiday season.

Prepaid credit card usage has always increased during the holiday season, and this year looks like it will be no exception. However, in addition to giving gift cards as holiday gifts, many consumers are turning to them for holiday purchases.

Prepaid credit cards, which often come with the Visa, MasterCard, Discover or American Express symbol, enable consumers to spend without the inconvenience of high interest rates and ATM fees. In addition, many consumers, who are simply fed up with the rising interest rates due to the impending legislation of the Credit Card Act of 2009, are simply abandoning their credit cards in favor of a simpler alternative.

In other words, all of the consumers that don’t want to spend the better part of next year paying off bulging credit cards are finding simpler ways to pay for holiday purchases; enter prepaid credit cards.

They allow consumers to “load” the card with a specified amount of cash so that it can be used like a debit card. They offer control and flexibility, both of which are very attractive to consumers, especially during these difficult financial times.

Prepaid credit cards can also serve as gifts to children, friends and family members, as the consumer can give cash to a loved one in a convenient, handy form.

It is important to remember, however, that prepaid credit cards may also come with their share of charges and fees, so it is best to carefully read all of the card’s terms and conditions beforehand.

Advantage of Prepaid Credit Cards

• No interest charges
• No over-the-limit fees
• No credit checks
• No bank account required
• Accepted at all locations that traditional credit cards are accepted
• May also be used online or to pay bills
• Often issued by large banks, such as Citibank, Bank of America and Chase

Prepaid Credit Card Statistics

• The prepaid credit card industry is nearly 12 years old
• Nearly eight billion dollars was loaded onto prepaid credit cards in 2008, which was twice as much as 2007

What to do when you can’t Afford to Pay your Credit Card Bill

Credit Repair

If you find yourself in the difficult situation of not being able to pay even the minimum payment on your credit card, there are a number of things you can do – and ignoring the problem is not one of them.

Many of us, in the midst of financial despair, may choose to ignore the creditor phone calls and letters; but this simply doesn’t solve anything. Instead, face the problem head-on and figure out what you can do today to get out credit card debt tomorrow.

• Sit down and make a budget. Not just a general budget, but a detailed budget that accounts for every penny going in and out of your household each month. Examine your monthly expenses and look for ways to cut back.

You may want to consider abandoning your land line if you have a great cell phone plan; you may want to drop your expanded cable television package for its basic counterpart; or you may want to make an effort to cut down on your grocery bill every month by clipping coupons and shopping sales. The bottom line is that most everyone can find an extra $50, $100 or more in their budget if they just take the time to re-examine their spending.

• If you’ve lost your job, make immediate, drastic cuts in your lifestyle. Don’t wait until you are behind on all your payments to start making changes. Immediately cut out all unnecessary expenditures and live lean until you can find another job and regain your financial footing.
• If you’re simply in over your head in credit card debt, and can’t seem to find a solution, you may want to consider contacting a non-profit, credit counseling service. These agencies can help you find ways to meet your financial obligations without getting bogged down by late payments and over-the-limit fees.
• If you find yourself struggling to make your minimum payment, you may be able to negotiate a lower, monthly payment with your creditor. Always remember that it never hurts to ask. Many creditors, aware of the financial problems of so many Americans, understand that it is in their best interest to help consumers find a solution to their credit card debt.