Credit Card Quick

Which Credit Card Rewards Program is Right for You?

Credit Card Rewards

Today, the choices in credit card rewards programs is vast and diverse, and to some consumers, having so many choices can seem overwhelming. However, there is a way to make things a little easier on yourself when it comes to choosing a credit card rewards program. You don’t want to go with just any old program. If you do, you might not see benefits that really suit you.

Lifestyle and Needs

Consider your income, spending habits and the way you pay your bills, especially a credit card bill. If you can pay the balance off every month, avoiding all that added interest, you have more flexibility in your choice of cards. If you will be carrying a balance, keep in mind that you will be paying more in interest, and it can take time for rewards to really add up. Look for a card that will benefit you most. If you need to save for something, get discounts on particular items and services that you frequently utilize, need to travel often, or just want cash back rewards, there are cards out there for all of that.

Options

Once you have considered your options for rewards, you need to take a look at and compare several cards to see who will give you the best bang for your buck. Ideally, you want plenty of benefits as well as a low rate. Compare other fees as well, like the annual fee, cash advance, late fees and other charges and look at just how your awards accumulate and how long it will take to be able to benefit from those rewards. Choose the card with the best balance among all of these things.

Read the Tiny Print

Some rewards programs have yearly and lifetime limits. Some are simple and straightforward while others are quite complicated. Be sure you understand what you are getting into and try to find a rewards program that does not leave your head spinning in the end.

Once you have found the card that best suits you, apply for it. Once you get it and start to use it and pay on it regularly, you can watch those perks and rewards really start to work for you. If you use it just right, a credit card can bring you lots of freebies from clothing to vacations and more!

A Closer Look at Credit Card Dependency

Credit Card Debt

No one wants to be dependent on credit cards all the time. Credit cards have their place: they can provide unmatched convenience and practicality; they can provide a safe, secure way of spending; they can increase our credit score so that we can be eligible for the lowest interest rates on other types of financing; and they can offer us rewards and perks for simply spending.

However, for many individuals, credit card debt has become a monkey on their back, so to speak. If you are afraid to open your credit card statement each month then you could very well be the credit card consumer who is in desperate need of a credit card intervention.

You can learn to use credit cards responsibly, and you can learn how to effectively eliminate your credit card debt so that you can lead a more financially secure future:

• Keep track of your spending – OK, so this sounds like a bit of a scary proposition; but the fact of the matter is that if you simply take one, full month and record each and every purchase you make, you may quickly become enlightened. If you scratch your head at the end of every month and wonder what in the world you did with all of your money then recording your purchases may be a great way to begin understanding where your money goes and how you can begin changing your spending habits.
• Take the extra money you found and put it towards your credit card debt – Take your newly found money – and there will be money after you begin understanding where, when and how you are spending your money – and immediately put it towards your credit card with the highest APR.
• Pay yourself first – Before you pay your first bill or spend the first dollar of your paycheck, take the time to pay yourself, however small. Better yet, set up an automatic deduction from your paycheck to a high-yield savings account through your employer or bank and you won’t even miss the money.
• Slim down the credit card pile in your wallet – There is absolutely no need to carry around multiple credit cards. One, competitive –rate credit card is all you need for your day-to-day living. Eliminate all of the retail cards in your life (the often have way too high APRs and fees) and take out all but one major credit card. Having a couple major credit cards is a good idea, but leave the others at home, in a safe place, instead of in your wallet. Eliminate the temptation that comes along with carrying around credit cards!

Which Credit Card is Right for You?

Choosing Credit Card

Once upon a time, credit cards were simple. A plastic card that allowed you to “charge it,” pay off the debt later with a few added fees, and that was that. Our fast paced world thrives on technology and options. Many cards now come with features and perks that make them more enticing to the consumer. Credit cards have become a competitive market where the idea is to gain and keep the customer through great rates, reward programs and more. However, it’s still up to the consumer to decide which credit card fits both their needs and wants. So, exactly what kind of options do you have?

There is, of course, the most common option of the standard credit card. These are unsecured cards offered by most any bank or financial company that issues credit cards. The APR on these varies from issuer to issuer. Standard credit cards include balance transfer cards, which allow the cardholder to transfer the balance owed on a high interest card onto a lower interest card. Another type of standard credit card is the low-interest rate card. This might be a card that offers a lower introductory rate and then increase after a period of time or a low fixed-rate APR.

Credit Cards with Incentives

Many credit cards these days offer perks and rewards just for using them. If you frequently use your credit card, this might be the best option for you. By simply using your card for purchases, travel, etc. and keeping your balance paid,  you can earn rewards, points and even cash to use for future purchases and other things. Talk about customer appreciation! It’s really a nice perk for credit card holders.

There are several different kinds of rewards programs, so you will want to explore the options and decide which suits you most. Cash Back credit cards reward you by allowing you to earn cash on eligible purchases. Everyone loves cash, so this is a popular incentive. These cards only offer a small percentage back on purchases and may take time to add up. They also typically have an annual fee of $50 to $100. However, if your faithful about paying your balance and using your card, it can be well worth it. Some credit card companies are also offering a similar incentive with their savings account program. They will deposit so much per transaction into a high yield savings account.

Points cards offer the cardholder a chance to earn points on their purchases. After accumulating so many points, they can be redeemed for specific items. The promotions and conditions are subject to change, so be sure to stay up-to-date on the fine print. some of these cards will have an annual fee, while others do not. There are also specific points, rebate and rewards programs for travel such as airfare (frequent flier programs) and hotels, retailers, and gasoline purchases. There are other points programs out there, but these are among the most common and most popular offerings.

Credit Cards To Repair Your Credit?

Yes, there are also credit cards made for those with bad credit and in need of credit repair. Some of the best options among these are secured credit cards, which usually require an application fee, an initial deposit equal to or greater than the credit on the card, and a low credit limit. These will allow you to use the card and make payments, helping to repair your credit rating. Another good option is a pre-paid credit card. It’s a lot like a gift card or a debit card, however, you can use it anywhere and don;t run the risk of going over your limit or going into debt because you load the money onto it and you control the spending.

There are also credit cards geared toward businesses and students, so if you fit the bill, you might look into these options.

A credit card can be a great asset to have, however, terms, conditions and rates will vary between card companies, so be sure to read the fine print so you will know what you’re getting and what to expect.

How to Avoid the Pitfalls of Credit Card Debt

Credit Card Debt

Think of your credit card as an opportunity to prove your credit worthiness. Your credit card is your chance to build a strong credit history so that you can enjoy all of the benefits that come with a strong credit score.

Here are some tips for preventing the pitfalls of credit cards that so many consumers have found themselves in:

• Find the credit card that is right for you – Instead of choosing a card because of rewards or introductory rates, concentrate on the basics of the credit card, including the APR and the annual fee. Your ability to build a strong credit history relies on your ability to pay your card on time and pay it off in a reasonable amount of time. It is therefore imperative that you find a card with only the most competitive rate and terms.
• Understand your card’s terms and conditions – Your card’s terms and conditions are likely to change because of the new credit card legislation, so it is more important than ever to pay close attention to any and all changes relating to your credit card’s terms and conditions. It is ultimately up to you to understand your credit card and all of the rules and regulations that go along with it.
• Know your credit card’s APR and pay close attention to any changes –Always pay close attention to your credit card’s APR. In fact, it is a good idea to take note of the APR every time you receive your credit card statement. Although credit card companies must provide you with at least a 45 day notice of any changes to your card’s APR, you may miss this disclosure. It is therefore always a good idea to take note of your card’s APR.
• If your card isn’t working for you, don’t be reluctant to find another card that will work for you. You must remain in charge of your financial well being, and that includes taking charge of your credit card. If you don’t feel as if your credit card is giving you the most competitive rate and terms, then by all means find another card that will.

Pumping and Dumping: Be Careful when using this Rewards Credit Card Tactic

Credit Card Rewards

There is a tactic used by many credit card customers called “pumping and dumping.”

This newest tactic is used when credit card customers open an account to take advantage of credit card rewards bonuses and points during a promotional time period, only to “dump” the credit card thereafter.

The Allure of Sign-Up Bonuses

Sign-up bonuses for rewards credit cards are quite common, as this is how many creditors lure customers into signing up for their credit card. However, many credit card customers are now signing up for these rewards bonuses and then quickly canceling the card once they have earned the bonus rewards and once the promotional rate has ended.

Earning air travel mileage is often a popular reason for “pumping and dumping,” as many customers are out for free or reduced air travel. Although this tactic has worked for many credit card customers, it can potentially backfire if used too often.

Tracking your FICO Score

The reason for this is because opening up and subsequently closing a large number of credit cards over a short period of time can lower your FICO score. So, although you think you are making out a like a bandit with rewards points, you may be actually hurting your credit score – and your ability to obtain low interest rates – in the process.

Another reason why “pumping and dumping” may be detrimental to your credit score is because a portion of your credit score is based upon the length of time you have had credit. In other words, a long relationship with a single creditor will likely give you a boost in your credit score, while short relationships with a number of creditors will likely put a ding in your credit score.

Many credit card analysts often recommend closing the newest credit card accounts before you close older accounts, as this will help protect your credit score.

Finally, “pumping and dumping” can prove to be quite confusing for many individuals, as opening and closing several accounts at any given time can result in forgotten accounts and forgotten payments. Often times, sticking to one or two credit cards, instead of becoming involved in a cycle of opening and closing various accounts, allows you to better track your spending and your credit cards.

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.

Creditors Flaunting More Enticing Rewards as Holiday Season Approaches

Credit Card Rewards

Credit card issuers are expected to be particularly competitive this holiday season, and are betting on enticing rewards to get consumers to spend.

With many Americans either not eligible for credit cards or choosing not to spend on plastic this year, credit card companies are finding ways to draw in their existing customers. To do this, they are offering bigger and better credit card rewards than ever before.

Discover

Discover, for example, is ramping up its Cashback program by offering consumers Cashback bonuses extending to 20 percent this holiday season. For a limited time, consumers spending on their Discover cards will enjoy nearly a dollar-for-dollar Cashback reward system.

Discover has its own website for Cashback rewards, www.ItPaystoDiscover.com, which details this program and provides their customers with tips on getting the most out of their rewards.

Discover’s Cashback program includes:

• Up to 20 percent Cashback Bonus or double miles
• Access to shopping at over 150 online retailers
• Additional holiday CashBack Bonus to more than 35 retailers
• Exclusive Cashback Bonus Weekly Specials, including Free Shipping, and Exclusive Offers

American Express

American Express, like Discover, is looking to increase its share of spenders this holiday season by offering additional Membership Reward points if consumers spend through Amazon.com between Black Friday and Cyber Monday.

Wells Fargo

Wells Fargo’s program includes a special shopping portal that allows members to earn more rewards. Called “Earn More Mall,” this program allows customers to earn additional rewards points for making purchases at select online retailers.

Although these holiday rewards programs can be very tempting, it is still in your best interest to pay close attention to the card’s terms and conditions, as the fees and interest rates charged may outweigh the benefits of the rewards programs.

In fact, many consumers are more likely to find better deals with credit cards with low, fixed interest rates and competitive terms and conditions, so always make it a point to check your card’s terms and conditions before heading out the door to start your holiday shopping.

How to tell if your Credit Card isn’t Working for you Anymore

Choosing Credit Card

Your beloved credit card, which you have toted around with you since college, may just not be working for you anymore.

Many creditors are in the process of changing their terms and conditions because of the newly introduced credit card legislation. It is therefore extremely important to keep abreast of all changes that may be taking place with your creditor and your credit card.

Don’t cast aside the information included in with your monthly statement; instead, make sure to read it carefully, as it could change the way you use your card. It may also prompt you to ditch your current credit card in favor of another one with more competitive features and benefits.

How to tell if it’s time to move on:

• Customer service is lacking – Excellent customer service is usually on the top of many cardholders’ wish lists when it comes to deciding on a credit card company. You may want to ask yourself if you have been satisfied with the customer service the last time you called. For example: Did the customer service rep handle your problem/question in a professional manner? Was the problem remedied in a reasonable amount of time? Was the customer service rep polite and friendly? If you answered “no” to any of these questions, then it may be time to find a creditor that takes pride in excellent customer service.
• Your interest rate goes sky high – Many creditors, in response to the new credit card legislation, are now raising interest rates to make up for decreased profits. If you have been a loyal customer and have always paid your bills on time, then you should not have to put up with a hike in your interest rate.
• Your credit limit is cut – Just like increased APRs many creditors have begun cutting credit limits on current customers. Once again, if your credit limit has been cut but you have proven to be a loyal and responsible customer then you shouldn’t have to deal with a decrease in your credit limit.
• Your rewards are not what they cracked up to be – If you chose a rewards credit card, but the rewards are riddled with exceptions and restrictions, then you may want to look for a new rewards card with less restrictions and more ,well, rewards!

Finding the Best Credit Card Offer: do you Know What you’re Looking for?

Choosing Credit Card

Even with the unsteady state of the credit card industry, there are plenty of credit card companies and credit cards from which to choose. For someone looking to get a new credit card, the process of finding the card that’s right for them can be downright confusing.

Given all of the credit card options available, how can you be sure you’re getting best deal and the most competitive rates?

Well, the first thing you can do is use the Internet to research and compare the top credit cards by each credit card company. However, there are several other factors that you may want to look at next time you are considering applying for a new credit card:

• Read the fine print when it comes to cards boasting a zero percent interest rate. More importantly, find out whether this zero percent rate is fixed or variable, and whether it is simply a promotional or “teaser” rate that will last just a few months. Many consumers fall into the zero-percent-interest trap, only to be stuck with a high interest rate once the promotional rate expires.
• Look further than just the interest rate. A credit card company could offer you a fantastic interest rate, and then sock you with outrageous fees. Check to see if the credit card company charges an annual fee for the card; also, check the card’s fees and penalties for cash advances, late payments and over-the-limit fees.
• Make sure the credit card you choose has a grace period. Some credit card companies charge interest from the moment you make a purchase, while others offer consumers a grace period during which they can pay off the card with no interest charges.
• Look beyond rewards and perks. Some consumers are drawn into using a credit card simply because it offers them some type of reward program or perks for using the card. However, what many consumers fail to realize is that the rewards they think they are earning are merely being trumped by high interest rates or other fees and charges. In other words, make sure you are not paying out more simply to earn rewards points.

Are you Taking Full Advantage of your Rewards Credit Card?

Credit Card Rewards

Many of us have taken advantage of rewards credit cards because they reward us for spending. However, do you know if you’re fully taking advantage of everything your rewards credit card has to offer?

There are many ways to ensure that you are getting the most out of your rewards credit card:

• Before applying for a rewards credit card, do your research on a variety of different rewards cards to be sure that you are getting the card that best fits your lifestyle and spending habits. In other words, it doesn’t make much sense to have a credit card that offers airline travel rewards when what you really need is a gasoline rewards credit card because you travel by car much more than you do by air.
• Once you receive your rewards credit card, read the cardholder agreement carefully, so that you fully understand how the card works. In addition, read any information that is sent with your monthly statement, as this may contain important information about your credit account and rewards system. For example, many rewards creditors offer additional rewards or benefits when you use the card at certain retailers, and these benefits usually change on a monthly basis.  In other words, it always pays to check your cardholder statement!
• Read the reward terms carefully, too! This is a very important step that many cardholders fail to do, which therefore leaves them in a quite a bind when they learn that their rewards points have expired or changed. It is up to you to learn about your rewards, and that includes how to redeem them, how to use them, where you can use them, when you can redeem them, etc.
• Don’t lose all the advantages of your rewards credit card by racking up interest charges. The best way to get the most out of your rewards credit card is to pay your bill in full, if possible. After all, it doesn’t make much sense to earn rewards when you end up paying much more in finance charges.