Credit Card Quick

Your Key to Successful Rewards Credit Card Spending

Choosing Credit Card

Rewards credit cards are now the most popular type of credit card, by a landslide. Most consumers now understand that there are many ways in which they can benefit from rewards credit cards, thereby making simple, everyday purchases advantageous in the long run.

With that said, there are a number of things to remember when it comes to rewards credit cards to ensure you establish a successful relationship with your rewards credit card:

• If you are considering a rewards credit card, take the time to really consider which type of rewards card makes the most sense for your budget and your shopping habits. For example, if you are a business traveler, a rewards card for airline miles or points probably just makes sense. The best place to research rewards credit cards is online, as there are a number of websites that compare rewards cards, side by side, so you can decide which is best for you.
• Remember that all rewards credit cards are not created equal. Don’t assume that one cash back rewards credit card is going to feature similar features as its competitor. In fact, rewards credit cards can vary greatly when it comes to everything from rewards programs to interest rates.
• Carefully read the terms of your credit card’s introductory offer. Many rewards credit cards will feature very attractive initial terms, such as bonus miles or points, so make sure to take advantage of these offers. For example, some rewards credit cards will offer thousands of rewards “bonus” points simply for spending a certain amount of money during the initial months after you opened the account.
• Carefully read all correspondence from your credit card company. Many rewards credit cards feature revolving promotions that allow you to earn more rewards simply by shopping at certain retailers or at certain types of stores. For example, you may receive notice from your credit card company regarding additional rewards points for charging your gasoline purchases for the month of September. So, take advantage of these offers and maximize your rewards credit card!

Airlines Debut New Credit Cards

Choosing Credit Card

The airlines are pulling out all the stops to capture new customers, as is evident with their new credit cards that do everything from offer great airline miles and frequent flyer programs to a boatload of benefits that any credit card customer would be thrilled to have.

In fact, both American Airlines and United Airlines have recently announced new credit cards that feature their frequent flyer programs.

American Airlines Executive AAdvantage World Elite MasterCard

The new American “Executive AAdvantage World Elite MasterCard,” from Citi, for example, includes such perks as free bag check-in for the first bag for the cardholder and for up to eight of his or her traveling companions. It also offers priority check-in service and priority screening service. A special concierge service, along with unlimited access to American’s Admiral Club airport lounges, is also a special bonus for card members.

But what probably makes this Citi card from American Airlines so special is the big mileage bonuses for new enrollments or big spenders. Although the annual fee for this card is $450, frequent travelers will likely recoup this fee in no time.

In addition, for credit card consumers who travel overseas, this card offers no surcharges on foreign charges. And, later in the year, this card, will also offer a chip-and-pin capability, thereby allowing consumers to use the card easier in foreign countries where this technology is now frequently used.

United Airlines Mileage Plus Explorer Card

United Airlines hasn’t missed a step in the world of competitive airline credit cards either, mind you, as is evident with their new “Airlines Mileage Plus Explorer Card.” This card, which is distributed through Chase, is considered to be a bit more mainstream than the Executive AAdvantage World Elite MasterCard from Citi. And their $95 annual fee is proof of this.

Although it boasts a smaller annual fee, it no doubt still serves up great perks, including: a free first –bag check-in for you and a traveling companion; two, one-day passes to United’s Red Carpet Room airport lounge club; priority boarding;  miles that never expire; and plenty of bonuses for heavy users.

Personal Checks or Credit Cards: Which is Best?

Choosing Credit Card

Personal checks used to be the way to go. Whether you were buying groceries or a sweater from your favorite department store, you often used a personal check or cash. Although personal checks still serve a purpose in today’s society, there may be a smarter route to take when it comes time to pay for your purchases: a credit card.

Credit cards simply offer better safety and security over personal checks, for a number of reasons:

• Checks can be stolen – If you use checks to pay bills, you may be surprised to find that check thieves will steal checks from the mail, “wash” them of their information, and use them to withdraw large sums of money from your checking account. In addition, carrying around your checkbook in your purse could also spell trouble if your purse is stolen. Although most banks have fraud protection in place to protect your money, the hassle of having your bank account drained is trouble in itself.
• Checks can trick you – Writing checks can often be tricky, as they don’t always appear right away. As a result, if you don’t keep super-accurate records of your check writing, you could be fooled into thinking you have more money in your account than you actually do. As a result, you could end up overdrawing your account, which may result in bounced check fees or overdraft fees.
• Checks are not always easily accepted – Unlike credit cards, which are now accepted at millions of places worldwide, cashing a check or using a check to pay for purchases is not always easy. Some retailers do not accept checks; others demand other forms of identification to cash a check. In other words, writing a check is often simply not worth the hassle.
• Checks cost money – Ordering checks costs money. Sure, it may be only $20 or $30 each year, but if you don’t need to pay this, why bother? Paying with a credit card, on the other hand, costs no money.
• Checks can’t be used online – Even if you enjoy using checks, if you purchase goods or services off the Internet, you will likely need to use a credit card to complete the transaction, as most online retailers do not accept checks.

What You Need to Know About Balance Transfer Fees

Choosing Credit Card

Ah, the balance transfer fee. It puts a damper on an attractive balance transfer every time. If you are looking to transfer your higher-rate credit cards onto a new credit card with a great balance transfer offer, you will surely want to check out the card’s balance transfer fee before making the move to the new card.

What is a balance transfer fee?

A balance transfer fee is the fee charged by the credit card company for the luxury of transferring other balances to the new credit card. Most credit card companies charge this fee as a way to recoup some of the loss they may experience from offering an attractive balance transfer rate.

How is a balance transfer fee calculated?

There are still some credit card companies that charge a flat fee for a balance transfer, but most charge the customer according to the balance transferred. The balance transfer fee is usually a percentage of the transferred balance, and most credit cards charge between three and five percent. For example, if you transfer a $10,000 balance and your balance transfer fee is five percent, you can expect a charge of $500 to appear on your credit card upon receipt of the balance transfer.

Are balance transfer fees worth it?

The short answer is: sometimes they are and sometimes they are not. In order to fully understand whether a balance transfer offer is advantageous for your financial situation you must do the math. Consider the interest you would pay on your current debt without transferring the balance. Then, consider the cost of the balance transfer fee. If the fee is less than the interest you would pay on your higher-rate debt, then you come out ahead. If not, it is probably best to pass up the offer and continue paying on your current debt.

Are balance transfer fees negotiable?

Most credit card companies do not negotiate when it comes to balance transfer fees, although it never hurts to ask. The best thing to do instead is to compare balance transfer offers from a number of credit card companies so you can find one that best fits your budget and your financial needs.

New Incentives Make Rewards Credit Card Offers Enticing

Choosing Credit Card

You may not have ever given the idea of a rewards credit card much attention, but with some of the new incentives being offered with rewards credit cards these days, you may just want to take another look at a rewards credit card.

In fact, you may have noticed an increase in the number of credit card offers you receive for rewards credit cards. If you look further into these offers, you will quickly notice that credit card companies are pulling out all the stops when it comes to their rewards card offerings, and some of these perks may be just what you’ve been looking for.

From thousands of extra airlines miles to merchandise discounts and gift cards, the new rewards credit cards are more appealing than ever.

Only Good Customers Need Apply

One major thing that has changed, however, is that credit card companies are only interested in consumers in good financial standing. So if you have a strong credit score, chances are you’ve been receiving your share of offers for rewards credit cards.

For example, CHASE Freedom is now offering $300 cash back if you spend $500 in three months. The Citi Forward card is similar, as it offers its customers 6,000 “Thank you” points for making $600 in purchases and singing up for their paperless billing. In addition, this card will give you another 1,200 points just for paying your bill on time and for not exceeding your credit limit.

Standing Out From the Crowd

The change in the credit card industry is likely because credit card companies are now looking for new and exciting ways to stand out from the crowd in the already-saturated rewards credit card market. And, after weathering the recession storm, credit card companies are now actively competing with one another for the best customers. In fact, in the first quarter of 2011, there were more than 1.4 billion credit card offers sent to consumers.

Recent data also shows that nearly 60 percent of credit card offers sent to consumers in the past quarter had some kind of incentive attached to it, such as cash back rewards, gift cards and bonus airline miles.

In short, it may be time to look a little closer at the next credit card offer you receive in the mail!

How to Make a Store Credit Card Work for You

Choosing Credit Card

It’s no secret that store credit cards cost consumers quite a bit of money every year. Store credit cards are quite easy to get, and are quite easy to use, thereby leaving many consumers in deep when it comes to exorbitant interest rates and mounting balances.

Although it always pays to thoroughly examine the terms and conditions of a store credit card, including the interest rate and related fees, there are ways to make a store credit card work for you.

In other words, although your favorite store credit card boasts an interest rate high enough to make you break out into a cold sweat, you may actually be able to beat the store at its own game. Here’s how:

• Pay off your balance each and every month, without fail. Using a store credit card can be quite convenient – that is, until you begin paying steep finance charges on your balance. You can avoid paying any fees or finance charges by simply paying off your store credit card before the due date each month.
• Take advantage of the store card’s initial discount. If the store offers you an attractive discount just by opening the account, by all means take advantage of it. However, once again, it is important to pay off your balance when the bill arrives. After all, paying interest on your purchase will likely negate any benefits you received from your initial discount.
• Take advantage of the member benefits of the card. Carefully read any correspondence you receive from your store so you know when to shop. Most store credit cards come with special discounts, coupons and shopping days for card members, so remember to pay attention to these offers so you can save the most money.
• Be aware of your shopping habits. If you tend to spend more because you have a store credit card in your back pocket, it may make more sense to pass on using a store credit card. It may also pay to shop first without your credit card and then return with your credit card once you have given some thought to what you need and what you can afford.

Study Ranks the Best and Worst Banks for Small Business Credit Cards

Choosing Credit Card

A recent study by Card Hub ranked the best and worst credit cards for small business. The study, which ranked the top 10 credit card companies according to their transparency and the extent to which they extended the new CARD Act protections to their business credit card customers, showed that not all credit card companies were fair and forthright to their business cardholders.

Because the CARD Act, which was enacted in 2009, does not apply to business credit cards, not all credit card companies extended the protections of the law to their business credit card customers. There were a few exceptions, though. Bank of America, in particular, was the only major credit card company to extend all of the protections of the CARD Act to its business customers.

Although many suspect that small business owners will soon be given the same protections under the CARD Act that individuals consumers are now afforded, the fact of the matter is that, at the current time, it can be quite tricky to be a small business owner with a business credit card.

Some of the results of the Card Hub study include:

• Wells Fargo, HSBC and U.S. Bank failed to provide any of the CARD protections to small business owners, and they also failed to provide transparency to small business owners about their policies.
• Citi, Chase and Discover ranked slightly higher than Wells Fargo, HSBC and U.S. Bank because they were upfront when it came to informing small business owners that the protections afforded to individuals consumers under the CARD Act did not apply to their small business credit cards.
• American Express and Capital One extended many (but not all) of the CARD Act protections to their small business credit card owners. It is important to research these credit cards before opening an account so you fully understand the card’s terms and conditions.
• Bank of America was the only credit card issuer to give its small business customers an important part of the CARD Act: They do not increase interest rates on its small business cards until the account is 60 days delinquent.

Traveling in Style: Choosing the Best Credit Card for Traveling

Choosing Credit Card

Regardless of whether you are traveling for the first time or the thousandth time, it pays to consider the value of a great credit card. Although credit cards with travel rewards are best suited for individuals who frequently use their credit card for travel, a comprehensive credit card with a number of consumer protections and features are ideal for nearly anyone who uses a credit card.

From rental car insurance to lost or damaged luggage protection and roadside assistance, some of today’s best credit cards do far more than offer you a low interest rate and frequent flyer miles.

Here are a few we really like:

• Capital One Venture Rewards – We like the fact that the Capital One Venture Rewards credit card has no foreign transaction fees and double miles earned on every purchase. The points earned on this credit card can be used toward any number of things, including plane tickets, hotel rooms, rental cars, and even cruises! Although the Capital One Venture Rewards card has an annual fee of $59, we think the cost is worth it, considering the money this card can save the traveler.
• Escape by Discover – Discover’s Escape card comes with its share of perks, including $50,000 primary collision damage waiver coverage (which means you won’t have to file an auto claim through your traveler’s insurance policy), roadside assistance, lost  or damaged luggage insurance and even trip cancellation insurance.  This card is particularly unique, as it offers $500,000 in flight accident insurance. The annual fee for the Escape by Discover card is $60 but, once again, it is usually well worth it.
• The Chase Freedom Visa – In addition to providing cardholders with one percent cash back on all purchase, the Chase Freedom Visa also allows cardholders to earn five percent cash back on certain purchases each quarter. Unlike some cards which only allow cardholders to earn points, the Chase Freedom Visa allows them to earn cash back, which is something everyone can understand and appreciate. This card, because it does not have an annual fee, is particularly useful for the casual traveler.

A Look at Choosing Between the Five Basic Types of Credit Cards

Choosing Credit Card

You may become quite overwhelmed at the sheer number of credit cards out there at any given time. Although finding the right credit card for your needs, your budget and your financial situation may be a time-consuming process, you can narrow down your options by first deciding which type of credit card you need or want.

The following is a list of the basic types of credit cards so you can begin narrowing down your credit card options:

1. Secured – A secured credit card is the ideal credit card for an individual with either bad credit or no credit. A secured credit card is a credit card that requires a deposit that is equal to your credit limit. The deposit is like an insurance policy for the credit card company, and they hold it as collateral should you fail to make a payment on your credit card. As you begin establishing a positive credit history through timely payments, you will likely then be able to apply for an unsecured credit card.
2. Unsecured – Unsecured credit cards are credit cards best suited for individuals with a strong credit score. Unsecured credit cards require no deposit and usually come with competitive interest rates. Unless the card specifies that it is of the secured variety, you can assume it is an unsecured credit card.
3. Rewards – Rewards credit cards are the name of the game when it comes to credit cards these days. Rewards credit cards can be anything from gasoline and airline rewards to cash back credit cards. In short, they are credit cards that reward customers for shopping and spending money on their credit cards.
4. Student – A student credit card is one that is marketed and targeted primarily to college students. They will likely come with low credit limits and higher interest rates, but are often a smart choice for young adults looking to build a credit history.
5. Business – A business credit card is one that is used primarily by small businesses. A business credit card will likely come with a higher credit limit and features that allow business owners to better manage their businesses and business expenses.

How to Prepare for an Instant Credit Card Approval

Choosing Credit Card

The applications for most credit cards are quite easy, as they allow you to apply for, and be approved, in a matter of minutes. If you are applying for an instant-approval credit card, you will likely do so either by phone or over the Internet. With that said, there are a number of things you should have ready so your application and approval process will go quickly and smoothly. Here’s what you should have on hand when it comes time to apply for an instant-approval credit card:

1. Social security number and other personal information – The most important information required for your instant-approval credit card application will be your social security number, your address and your birth date.
2. Co-applicant information – If you will have a co-applicant on your credit card application, you will need to provide the credit card company with their personal information, as well. You may want to decide before you begin your application whether you want a co-applicant or just an authorized user on your card.
3. Basic household information – The credit card company will likely want your basic, household information; in particular, your household income. Your household income will include not only the salaries brought in by you and others in your household, but also other sources of income, such as alimony and child support. In addition, they will want to know the debts paid by your household, including your mortgage payment and payments on other debts.
4. Other account information and balances for balance transfers – If you want to open a credit card so you can transfer other higher-rate balances onto that card, you will need to have the names and addresses of the other debtors, as well as the account information and the current balances. Regardless of whether you are transferring balances from credit cards, car loans or personal loans, it is important to first determine their current balances or payoff information so you can pass this information along to the credit card company for balance transfer purposes.