Category Archives: Guides

8 Best credit cards with $0 annual fees – A complete guide

March 1, 2023 admin

No one likes to pay the annual fees of a credit card. People try their best to get away with not paying credit card fees. $0 annual fees credit cards offer some of the best rewards to the user with the perk of no annual fee.

Our list of some of the best credit cards with $0 annual fees

Rewards Credit Card – Chase Freedom Flex Credit Card
Travel Credit Card – Travel Rewards from Bank of America
Student Credit Card – CapitalOne SavorOne Rewards Card
Best Credit Card for People with Fair Credit – CapitalOne Platinum Mastercard
Secured Credit Card – DiscoverIt Secured Credit Card
Credit Cards with 0% APR offer – Citi Simplicity Credit Card
Credit Card for Rent Payments – Bilt Mastercard Credit Card
Business Credit Card – Business Advantage Customized Cash Rewards Credit card

Best Rewards Credit Card – Chase Freedom Flex Credit Card

Fees: Chase Freedom Flex credit cards charge $0 in joining and annual fees

Intro Rewards: This credit card offers a $200 bonus on a spend of $500 in the first three months of the card approval. It also offers a 0% introductory APR for 15 months on balance transfers and purchases.

Rewards: Freedom Flex offers 5% cash back on purchases from grocery stores, gas stations, and select online merchants. Further, it also offers 5% cash back on travel purchased through Chase Ultimate Rewards.

In a nutshell: Chase Freedom Flex Card offers excellent rewards on everyday purchases categories. For example, groceries, gas, and online merchants. Though, it also offers 5% cash back on travel through Chase Ultimate Rewards. This card also offers a 3% cash back on dining at restaurants and drugstore purchases. For all the other purchases, there is a cashback of 1%.

Cash back never expires on this card. This card also offers Zero Liability protection and purchase protection. Further, other additional offers and benefits are available from Mastercard.

Travel Rewards from Bank of America

Fees: $0 in Annual fees, a 3% fee on the balance transfer, and $0 foreign transaction fees

APR: 0% APR offers for 18 months

Rewards: Customers can earn 25,000 bonus points and a $250 travel or dining statement credit value. In order to, qualify for this offer they have to spend at least $1,000 in the first 3 months of opening the new card account.

In a nutshell: This credit card also offers excellent travel rewards with 3 points earned for every $2 spent on purchases. Customers get the flexibility to redeem points for a statement credit. They can also pay for travel and dining purchases made on the card through rewards. Further, there are no end dates of the points expiry on this card and there are no blackout dates.

Additionally, existing Bank of America customers receive higher bonus rewards. Bonus rewards depend on their Preferred Rewards tier with the Bank. For example, a preferred customer gets more points.

Best Credit Card for People with Fair Credit – CapitalOne Platinum Mastercard

Fees: This credit card is available with $0 in annual fees. It also offers $0 foreign transaction fees.

Joining Rewards: This credit card doesn’t offer any joining rewards.

Rewards: Mastercard offers $0 Fraud Liability if the card is either lost or stolen. Capital One has a tool to monitor the credit profile of a user. Card members get unlimited access to their credit score CreditWise from Capital One.

In a Nutshell: This is one of the best credit cards for members with Fair credit. This card automatically increases the credit limit of the user over time. They can consider increasing the credit limit starting in as little as 6 months.

CapitalOne takes into account payment history patterns to raise the limit. Finally, this is a great credit card for a starter person looking to build credit.

Capital One SavorOne Rewards for Students

Fees: This credit card charges no annual fee and no foreign transaction fee to their users.

Rewards: Card members earn unlimited 3% cash back on multiple categories. For example, the rewards are for dining, entertainment, popular streaming services, and at grocery stores. One-time $50 bonus on spend of $100 in first 3 months of card opening.

In a nutshell: Students from universities, community colleges, or other higher education institutions can apply for this card. This card helps students build their card history over time. Students receive a complimentary Uber One membership and 10% off on Uber and UberEats orders. They also receive unlimited 5% cash back on hotels and rental cars booked through Capital One Travel.

Best Secured Credit Card – DiscoverIt Secured Credit Card

Annual Fees: $0

Minimum Security: $200

In a nutshell: DiscoverIt Secured credit card requires a minimum $200 refundable deposit and offers the credit lines equivalent to the deposit. This card provides 2% cashback on fuel and restaurant and 1% cashback on other purchases. Discover also offers unlimited cashback matches for the first year.

Meanwhile, if a customer has a good payment history of six months, they release the deposit. This credit card also reports to the three major bureaus and helps build a credit score. This card offers one of the fastest six months upgrades to an unsecured credit card. Customers have to ensure a timely payment across their credit cards and on-time payment history.

Citi Simplicity Credit Card

Introduction Balance Transfer APR: 0% Intro APR for 21 months for balance transfers. Additionally, 0% intro APR for all new purchases for the first 12 months.

Regular APR after the Introductory period: Once the introductory period is over, a variable APR of 18.49% – 29.24% is charged. This APR will be on the creditworthiness of the customer.

Rewards: Citi Simplicity credit cards do not offer any rewards. This credit card is not meant to be a rewards credit card.

Fee: Citi simplicity credit card doesn’t charge any annual fees, late fees, or penalty fees.

Other Fees: Intro fees of 3% of balance transfer fees (least of $5) for the first 4 months of credit card account opening. After the Intro period, 5% of balance transfer fees (subject to $5). 3% of foreign transaction fees are applicable on foreign transactions.

Pros and Cons of this card: Citi Simplicity credit card is one of the best 0% APR credit cards. As this credit card offers a 0% introductory offer for all new purchases for 12 months. Customers can also use it for making big purchases. They can then pay the amount over a year.

Though this credit card does not offer any rewards, it offers the best balance transfer period of 21 months. Additionally, it offers 12 months of 0% introductory offer on new purchases.

Best Credit Card for Rent Payment – Bilt Mastercard Credit Card

Fees: This credit card charges $0 in Annual fees and foreign currency conversion fees

APR: 20.24% – 28.24% of variable APR

Rewards: BILT MasterCard lets the cardmembers earn points on paying rent. This card provides a 1% reward for paying the rent. This credit card does not charge any transaction fees. There is a limit to the total 50,000 points which members can earn from rent.

Pros of this Card: Bilt Mastercard offers 2x points on travel purchases. Card members earn points on flights, hotels, rental cars, and cruises. In order to qualify, the travel is to be booked directly with airlines, hotels, and car rental agencies.

The card also offers the members 3x points on dining. On the rest of the purchases, the card offers 1 point. All the expenses on the 1st day of every month offer double the rewards. Members get 6x points on dining, 4x on travel, and 2x on other purchases. Further, rent payments on the 1st do not qualify for this offer.

Bilt has been ranked as one of the most valuable reward points by Bankrate. It has been ranked above American Express cards and Chase Rewards cards.

Bilt offers up to $5,000 reimbursement for a non-refundable passenger fare. If for any covered reason the trip is interrupted or canceled. Bilt also offers reimbursement for expenses incurred on delayed trips over 6 hours. Covered reasons include Weather, aircraft breakdown, or air traffic control delays. In order to, qualify for this offer the card members need to book the entire trip on the Bilt Mastercard.

This card also offers Auto Rental Collision Damage waiver for any rental car charged on the card. BILT MasterCard offers better points as a rent or travel card.

Business Advantage Customized Cash Rewards credit card

Fees: This credit card charges $0 annual fees.

APR: Introductory 0% on purchases for the first 9 billing cycles. Once, the intro APR offer ends a Variable APR that’s currently 15.99% to 25.99% will apply.

Rewards: Card members earn a $300 statement credit after they make at least $3,000 in purchases in the first 90 days of the account opening.

Pros and Cons of this card: Firstly, credit card members earn 3% cash back in the category of their choice. For instance, gas stations, office supply stores, travel, TV/telecom & wireless, computer services, or business consulting services. Next, this card offers 2% cash back on dining purchases.

Card members earn unlimited 1% cash back on all other purchases. Customers can also earn up to 75% more cash back on every purchase. But to qualify they need to have a business checking account with Bank of America. They need to also qualify for the highest Preferred Rewards for Business tier for the best rewards available.

Credit Cards, Guides

Credit Card declined – Reasons and remedy to help you

February 25, 2023 admin

We all face a dilemma sometimes when our credit card declined in the middle of a transaction. This could be an embarrassing situation if you are using your credit card to purchase a service. Imagine having a great lunch at a restaurant and putting in your credit card for payment. The server informing that your credit card declined to pay.

A credit card may decline due to a number of reasons. In order to, avoid the heartache of handing over a credit card and facing a declined card, we recommend checking a few things beforehand. It’s always good to enable notifications from credit card providers. Also, enable the notification service from your mobile or cell phone to get a notification alert.

Credit cards may decline to pay in case of using an expired card, foreign transactions, large payments, and some cases incorrect data input.

Balance exhausted or Credit limit reached

The most common reason for a credit card to decline is overspending or shooting the credit limit. Every credit card comes with a credit limit, which is pre-set by the bank. Further, this credit limit defines how much a user can shop or use the card for a purchase. If a user hits the limit on his credit card. Consequently, if they try to purchase or use a credit card beyond this limit, the transaction will fail.

Do not spend too much money or have a large outstanding balance on the credit card. Always, keep your balance under the defined credit limit. If you need help managing credit card debt, do read our best tips to manage credit card debt.

Sometimes, you might have put an automatic payment like a utility bill or tax payment on your credit card. If that transaction hits your credit card, it may take 2-3 days to appear in the credit card summary. The credit limit immediately reduces to factor in the impending transaction. Further, if you hit the limit of the card and try to make any transaction the same may be declined.

Otherwise, if you have made a payment on a credit card to restore your balance, give at least 2-3 business days for the amount to settle in the credit card. Don’t expect that the balance will be immediately restored. Consequently, the balance of a credit card is increased only after making a payment.

The Credit card is expired leading to the card declined

Every credit card comes with an expiry date on the front of the card. Sometimes we might miss that a credit card has expired and may try to use it. An expired credit card will be declined.

Additionally, banks and credit card companies cancel expired cards. As the same is no longer valid in their systems, holding an expired credit card is like holding a piece of plastic.

Using credit cards outside the USA

New credit cards disable the option of foreign transactions by default. Before you can use a credit card for a foreign transaction, you have to enable the same. You can enable foreign transactions from the website or the mobile app of the bank. Alternatively, you can reach them over call to enable the same.

Secured credit cards or basic credit cards are not available for foreign transactions. These cards do not allow foreign transactions at all.

Card declined on making an unusually large purchase

Credit cards may decline a usually large purchase on your credit card. They may suspect a large sum on your credit card is a fraud or theft transaction and may decline the same.

Say you have a credit card with a $5,000 limit. Usually, you make small transactions (under $500) with this credit card. You did a large purchase of day $4,000 on your credit card. This unusually large transaction may flag off risk systems. The bank may decline this transaction.

The Credit card is not in use for a long time

If you are not a frequent credit card user or if you have multiple cards, you may not use a particular card for long. In such a case, the credit card company or the bank may restrict transactions on the bank. This is to prevent unauthorized use of the credit card.

If the bank has disabled the credit card, the easiest way is to call the bank or reach through other channels to activate the credit card.

Entering incorrect credit card details in case of an online transaction

Always check twice before hitting the Pay button in an online transaction. It’s very easy to fill in the credit card details incorrectly in the payment details while shopping online. Especially, if you are using a mobile device to make a payment, say on amazon.com or an airline website the credit card declined may be due to entering incorrect details more often.

Some credit cards have dual-factor authentication, wherein you may have to enter an OTP (or a one-time password). This OTP may be in a form of a numeric code sent to a cell phone or an email id. Always, double-check the details as well as the OTP.

Things to keep in mind to prevent the credit card declined

We all can be a little proactive and keep a close tab on our credit cards. This would help us navigate any payment trouble or card declined scenarios.

Keep a sufficient balance on the credit card

Always keep a sufficient balance or credit limit on your credit card. It is also a best practice to maintain a good credit score to keep the overall credit utilization ratio below 30%. Read more to know about some of the other factors which help to keep a good credit score.

If you are fully utilizing your credit card limits every month, it would be difficult to keep track and you may face a transaction decline due to credit limit.

Opt-in for notifications services for your credit card transactions. Credit card companies provide an option to send you reminders if you are hitting your credit limit or max allowed balance.

Manage your credit limit to keep your balance below the same

Do not overshoot the credit limit of your credit card. Ideally, keep the credit utilization ratio below 30%. This will help keep the credit score of the user healthy. High utilization of credit cards may put a dent in the credit score.

Also if you are making a usually large purchase on your credit cards, do inform the bank or card issuer beforehand. They will honor a valid transaction if it is within your credit limit. In case, you fear that you may shoot the limit. Do call them and request credit limit enhancement. Alternatively, make a part payment to restore your credit limit or balance.

Although, credit cards do allow increasing the credit limit temporarily. Enquire from your bank for the facility of over-the-credit limit access. Though, you may have to pay a one-time fee ranging from $35 – $49 to enhance this limit. Although, this credit limit does not get added to your overall credit limit. Your credit card will restore the original credit limit as soon as you pay off the bills.

Check beforehand doing international transactions

Enable foreign currency or international transactions before using your card internationally. Also if you have to make payments in foreign currency online, ensure that international transactions are available.

Customers can enable the foreign transaction from the issuer’s website or mobile app. Alternatively, they can also call the issuer bank for enabling foreign currency transactions.

Keep a note of the last date or expiry date of the card

Always note the credit card’s expiry date. Credit card companies or issuing banks will reach out to you before the card’s expiry date. Ensure that your contact details such as email address, home address, and mobile phone numbers are up to date. Normally, they will reach you through the number or email registered with them. If any is changed, do update them with the bank.

If you are not using a credit card. Another good practice is to cut the older physical credit cards. Cancel the older credit cards with the issuers.

Keep using your credit card

If you have lots of credit cards, keep rotating the cards and use other cards. Normally, people keep one primary credit card for transactions and one secondary credit card as backup.

A good practice is to cancel cards not used frequently. Additional credit cards do not add any value but may affect your overall credit score. To know the best practices to build a credit score.

Guides

Credit Card Fees – Complete guide to avoid pitfalls in 2023

February 23, 2023 admin

Credit cards are an important financial product nowadays for everyone. But they come with an associated cost in terms of applicable credit card fees. These are fees for operating and maintaining the credit card. As a credit card is a revolving credit line or a loan from a bank. If you do not pay the loan on time, there are applicable penalties or fees on the borrower.

As per the Consumer finance bureau, the USA has the highest outstanding balance of almost a trillion dollars. Further, Americans pay in excess of $120 billion every year in interest and fee charges to the credit card companies. More than 175 million customers have one or more credit cards.

Various kinds of Credit Card fees

Credit cards apply various types of fees. These could be genuine fees such as annual fees, foreign transaction charges, or such other charges. They may also apply other fees or interest charges on outstanding balances.

For example late payment fees, balance transfer fees, cash advance fees, and finally the APR. We delve into each of these fees and will also help our user to identify correctly what are applicable fees.

Credit card fees on Amex, Visa and Mastercard

Annual Percentage Rate (APR)

The Annual Percentage Rate refers to the interest rates applicable on a credit card. In layman’s terms, this is the interest the bank will levy on the balance on your credit card. If you have a credit card with an applicable APR of 22%, it means that any balance you carry past the due date will have this much interest.

APR could be of 3 types: fixed, variable, and introductory or promotional APR. In the fixed rates, your APR is likely to stay the same throughout the time you have your credit card. Variable rates may increase or decrease depending on the federal rates as well as the risk categorization of a borrower.

Promotional or Introductory rates include 0% or low-interest periods offered as introductory rates by credit card companies.

If you pay the amount in full by the last date, you will not be charged any APR or late fee. If you fail to pay or only pay the minimum due, the APR will start kicking in. As every month has different days, credit cards will multiply the average daily balance by the daily periodic rate.

To calculate, the daily periodic rate is to divide the APR by 365. This average rate is then multiplied by the outstanding balance. This daily periodic rate is applied to the daily outstanding balance.

Illustration of APR

For example, if you have a balance of $1,100 on your credit card on the 1st of the month. Or we can say you make a purchase on the 1st day of the month.

Say, the applicable APR on the card is 22%.

The applicable daily periodic rate is 22% / 365 = 0.060274%

Further, your last date of payment is the 28th of the month.

If you pay only a minimum of say ($100) and do not pay anything.

The applicable daily interest charged would be = $1,000 * 0.060274% = $ 0.6024 or only 60 cents a day.

Now, this is a fallacy as you might think that it is such a small amount. But the bank will compound the interest rate every day. They will also charge interest from the day the purchase was made.

Finally, the applicable interest would be = 28 * 0.6024 = $16.86

This might again seem like a small amount, but there are other fees also to consider with a credit card. Like the Late payment fees to be paid as well.

Late Payment Fees

Every time the cardmember delays the balance payments. They will have to pay a one-time fee. This is called late payment fees. Usually, this fee can range from $29 – $99 or even more for some credit cards.

Further, this late payment fee is in addition to the applicable APR on the loan. A late payment fee is a one-time fee for every late payment.

For example, if a card member delays payment six times in a year. Then, they will have to pay this late payment fee every time.

Annual Fees

Some credit cards also come with a fixed amount of annual fees. These annual fees can vary from $29 for a basic credit card and can go as high as $650 for a high-end credit card. Credit card companies levy annual charges to cover fees for providing additional services on cards. These are administrative charges for providing additional services on the credit card.

These additional and complimentary services can include –

Zero Liability protection
Purchase Protection
Additional Warranty
Access to credit score and credit history
Foreign conversion fees
Airport lounge access
Checked-in baggage
Contactless cards for on-tap support

Annual fees help credit card companies offset some of these frisbees. These offers attract customers but they are additional services. Someone has to pay for these services. An annual fee is one way to offset this cost. Some other credit card companies may also have high annual charges to limit the users. This makes their credit card more desirable.

Usually, the offers on the credit card will offset the annual charges. But, the user should be careful in selecting the right card. If they travel a lot a travel co-branded credit card, an airline co-branded credit card, or a hotel credit card may be best.

Balance Transfer Fees

Balance transfers are the facility to transfer the outstanding balance from one credit card or lender to a specific credit card. Members can transfer the balances up to their credit line on the credit card.

Credit card companies charge an amount or fee which is a percentage of the balance transfer. This could vary from card companies. Further, it makes sense to transfer the outstanding balance if the new credit either offers introductory or lower rates. Nonetheless, some banks do offer an introductory period with no balance transfer fees.

Read more about the best balance transfer credit card.

Foreign transaction fees

Foreign transaction charges or fees are applied to purchases made outside the USA. For example, if you are traveling and using your credit card for payments, an amount usually in the range of 3-5% is applied. If you are in the USA but using your credit card for online shopping from a website with a currency other than the US dollar. You will have to pay these fees in that case as well.

Finally, travel credit cards and some other high-end credit cards waive foreign transaction fees.

Cash Advance Fees

Credit cards also charge a one-time fee and interest fees on any cash advances. Cash advances are loans from a credit card. Cardmembers can use the credit card at any of the ATMs to withdraw cash.

Credit cards may also charge a one-time fee of $29 to $49 for any cash advance. The cash advances are treated as a loan. There would be an APR which would be charged on the cash advances. The applicable APR on cash advance fees is usually the highest category.

Over-the-limit fees

Credit cards have a credit limit assigned to them. The cardmembers can’t spend any amount over the credit limit. If they try to make a transaction over the credit limit, the transaction would be denied.

Credit card companies can give an option to the members to temporarily increase the credit limit for a fee. Hence, the name is over the limit fees.

Returned Payment Fees

If a card member has scheduled payments on their checking account for the credit card. If for any reason usually a low balance, a payment might be refused. This return payment fee is applicable in this case.

Credit Cards, Guides

How Credit Cards actually work – a complete guide for 2023?

February 22, 2023 admin

Credit cards are an essential part of many people’s financial lives. They are also an important financial instrument. They offer convenience, flexibility, and rewards. But what exactly are credit cards and how do they work? In this post, we’ll explore the basics of credit cards. We will also explain how they can help you manage your money and build your credit score.

With all good things, there are some bad ones as well. The same is the case with credit cards. Indiscriminate high usage of credit cards and carrying balances can affect credit scores. Credit cards carry one of the highest interest rates on loans. These may be recipe for disaster for users as this may add to their debts.

To read about more basics of credit cards, please do read below:

What is a credit card?

First, let’s define what a credit card is. A credit card is a debt-based financial product. A credit card offers revolving credit limits to the issuer. The borrower or the credit card member can use the credit limit to make payments. They can use credit cards for shopping, dining at restaurants, and buying things online or at-store. The credit card company will send the member a bill for their outstanding balance.

Cardmembers will have to pay a minimum balance amount. If the member pays the bill in full in advance, their credit limit is restored and they have to pay no fee or interest. If the card member does not pay the balance, they will have to pay an APR (Annual Percentage Rate) and other late payment charges.

A credit card lets a credit card member borrow money and pay it back later. This means you can use a credit card to make purchases even if you don’t have the money in your bank account at the time. The credit card you use will determine how much you can borrow and the interest rate you’ll pay. Credit card companies are businesses that issue cards with specific terms and conditions.

When a card member uses a credit card, they’re taking out a short-term loan from the bank. The loan is from the issuer of the credit card issuing bank. As a customer of the credit card, you have a fixed period usually 25 days to pay the balance in full. A Card member has to pay late payment fees if they do not make the payment in time. The bank will charge APR on the amount as well. The interest rate on a credit card depends on the type of card and the creditworthiness of the card member.

Who are the different parties in a credit card?

Credit cards are a loan from the issuing banks to the card members. Unlike a personal or consumer loan, the credit card offers the flexibility of use. There are many parties in play with a credit card.

Firstly, the borrower or the card member who applies for the Credit Card. The card members apply for the credit card and sign the card member agreement. A Credit card is a form of loan from the card issuer bank to the card member. They will check for the credit score of the card members before issuing the credit card.
Next, issuing Bank that issues credit cards. They govern the payment terms, and applicable interest rates, and provide credit risks.
Credit cards come printed with the names of other financial institutions. These include American Express, Visa, Mastercard, or Discover. These are the payment networks. These payment networks help clear payments while card members use their cards worldwide.
Further, there are also co-branded credit cards by airlines, hotels, retailers, and other issuers. These co-branded cards provide bonus rewards to card members. These bonus rewards are applicable only to the issuing brand.

Key advantages of using Credit Card

Flexibility

Compared to debit cards, credit cards also offer great flexibility. A member is always limited with the balance in the checking account for spending. The spending power is equal to the money in hand. On the other hand, with a credit card, a card member can spend money on the basis of their credit limit.

Credit cards have a credit limit and card members can spend up to that limit in a given billing cycle. Further, they can use their credit cards to make emergency purchases. They can indulge to pay for things they can’t afford at the moment. They may not have that money available to them right now. Members can spend the money on credit cards and pay it on a fixed date as per the terms and conditions of the credit card.

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For payments credit cards also offer flexibility. Card members can pay off the balance in full each month. They can also pay the amount in payment plans over months by paying the applicable APR or interest rate. Some credit cards also levy late fees and other charges on delayed payments. Always be conscious of spending money on a credit card. Do not get into the trap of spending too much.

Protection

Another, important key advantage of using a credit card over cash is an offer of a greater level of protection. When a customer buys something using a credit card, they are protected by the Fair Credit Billing Act. This law requires merchants to correct any errors on the credit card bill. It also gives the cardmember the right to dispute any charges they didn’t approve.

Rewards

Another important and lucrative advantage of using a credit card over cash is that it allows one to earn rewards. Credit cards have programs to offer rich rewards. Reward programs allow card members to earn points, miles, or cash back on their purchases. This means that every time a member uses their credit card, they’re also earning rewards.

Credit card issuers offer multitudes of rewards which may include:

Airline miles with the airline and bank co-branded credit cards
One-time bonus points or statement credits on new cards issuance
Introductory low or even 0% APR on balance transfers or new purchases
Bonus points on the anniversary of the cards for paying annual fees
Free nights on co-branded hotel cards
Faster points or miles on specific spend on dining out, travel, or streaming services
Access to airport lounges on airline or travel credit cards
Statement credits against fees of incidental charges on airports and other airport services

Credit Score

Besides the above advantages, using a credit card can also help build a card member’s credit score. A credit score or the most popular version FICO score is a three-digit number. This number reflects the creditworthiness of a customer.

A variety of factors affect the credit score of a card member. These include payment history, credit utilization ratio, credit mix, and credit history. It’s used by lenders to determine whether to approve them for credit and what interest rate to charge.

When a member uses a credit card, they’re building a credit history. This is an important factor in determining their credit score. Credit card companies report to the bureaus about the usage of cards, and late, or missed payments. As long as you make your payments on time and don’t exceed your credit limit, your credit score remains great. By using credit cards in a responsible manner, members can improve or build credit scores.

Always pay your credit bills on time and in full to the extent possible. I have personally had the misfortune of getting slapped with a late payment fee as well as credit bureau reporting for getting late for a single day. This is after I have a spotless history of on-time payments for more than 5 years.

Cash advance in a credit card

A cash advance is a facility to take advance cash from a credit card. A participating ATM can dispense this cash. This cash is a loan from credit card issuers and charges interest. There are fees for using this facility. The cash advance also carries higher applicable interest charges. This is a great facility in case of emergency or pinch. Do not take cash advances as a practice. It not only affects one’s financial goals, but a missed payment may also affect your credit score.

Shortcomings of Credit Card

There are several disadvantages or shortcomings of using a credit card. Firstly, it is a great financial product with ease of use. On the other hand, it is a disaster in hands of an overspender. For a shopaholic credit card is a path to Nirvana. It can fuel the endorphins of the shopper but may push them into the credit card debt trap.

Credit Score deterioration of the card members

High usage of credit cards can affect the credit score of members. If they consistently carry a high balance or make late payments, their credit scores may suffer. For a business loan or a mortgage, a good credit score is essential. A lot of young adults spoil their credit scores through the indiscriminate use of credit cards. Later when they actually need a loan they struggle.

Interest Rates and high fees

Credit card issuers charge high fees and interest rates on unpaid balances. They often come with fees, such as annual fees, balance transfer fees, and cash advance fees. These can pile on if a user is dependent on credit card debt. This can spiral out of control and leave unsustainable levels of debt.

Fraud

Additionally, credit cards are vulnerable to fraud and identity theft. They can cause financial and personal stress if you fell prey to the same. Always practice safe card usage. Read more for details on how to use your credit card safely.

Guides, Rewards Programs

Chase rewards credit cards – A complete guide for 2023

February 21, 2023 admin

Chase Bank is one of the largest financial institutions in the USA. They serve almost half of the US population with their products. Chase offers a variety of products such as Chase rewards credit cards, checking accounts, ATMs, Debit cards, mortgages, loans, and other financial products. JP Morgan Chase and Company is the parent company of Chase Bank.

Chase offers a number of Rewards credit cards. They also offer co-branded credit cards with Marriott Bonvoy, United, Southwest, and Air Canada airlines. Chase also offers co-branded credit cards with Amazon. Finally, to know more about shopping credit cards read our post.

Chase Rewards Credit Cards Advantages and Offerings

Chase Rewards offer a number of advantages to credit card members. Some of these include.

Zero Liability Protection

Chase Rewards credit card offers zero liability protection. Members are not responsible for any unauthorized charges made with their card or account information. They have to call Chase Credit cards to report any theft or loss of the credit card.

Purchase Protection

This card also offers Purchase Protection for new purchases for 120 days. Any new purchases made on the card are covered for $500 of theft or damage claim. Every account is covered for a sum of $50,000.

Auto Rental Collision Damage Waiver

Chase Rewards card offers Auto rental collision damage waiver. Members have to decline the rental company’s collision insurance to qualify. They need to charge the entire rental cost to their card to qualify for the damage waiver claim. Coverage is provided for theft and collision damage for most cars in the U.S. and abroad. In the U.S., coverage is secondary to personal insurance.

Extended Warranty Protection

Chase Rewards credit card extends the time period of the U.S. manufacturer’s warranty by an additional year, on eligible warranties of three years or less. This is nifty for new purchases, especially for electronics and appliances.

Trip Cancellation

Further, Chase credit card offers Trip Cancellation and trip interruption Insurance. To be eligible for this travel insurance the purchase must be made on the Chase Freedom Unlimited credit card. Although, the maximum reimbursement is up to $1,500 per person. There is also a $6,000 per trip restriction. To qualify, trips should be all pre-paid, non-refundable passenger fares.

Chase Rewards Credit Cards List

Herein, we will review the current Chase Rewards credit cards for their offers.

Chase Freedom Unlimited credit card

Fees: This credit card charges $0 in annual fees.

Intro Rewards: Cardmembers can earn a $200 bonus after they spend $500 on purchases in the first 3 months from account opening. They can also earn 5% cash back on grocery store purchases up to $12,000 spent in the first year. This offer excludes purchases at Target and Walmart. This amounts to a saving of $600 on everyday grocery purchases. Furthermore, this card offers an introductory 0% APR for 15 months on balance transfers and purchases.

Rewards: Cardmembers earn cashback of 1.5% for every purchase. Apart from this cashback, they can also win 3% cash back on dining and drugstore purchases. Dining rewards are available for dining at restaurants, takeout, or even delivery from restaurants. Members can win 5% cash back on travel bookings through Chase Ultimate Rewards.

In a nutshell: The Chase Freedom Unlimited Credit card is one of the best rewards cards in the market with $0 annual fees. It offers a flat 1.5% cashback on most purchases. It also offers additional cashback on other categories such as travel, grocery, drugstores, and dining out. Finally, this card is a 0% introductory APR credit card. It offers this 0% APR for 15 months.

Chase Freedom Flex Credit Card

Fees: Chase Freedom Flex credit cards charge $0 in joining and annual fees

Intro Rewards: This credit card offers a $200 bonus on a spend of $500 in the first three months of the card approval. It offers a 0% introductory APR for 15 months on balance transfers and purchases.

In a nutshell: Chase Freedom Flex Card offers excellent rewards on everyday purchases categories. For example, groceries, gas, and online merchants. It also offers 5% cash back on travel through Chase Ultimate Rewards. This card also offers a 3% cash back on dining at restaurants and drugstore purchases. For the other purchases, there is a cashback of 1%.

Cash back never expires on this card. This card also offers Zero Liability protection and purchase protection. Further, other additional offers and benefits are available from Mastercard.

Chase Sapphire Preferred Card

Fees: Annual fee of $95 and a 3% introductory balance transfer fee which increases to 5% of the balance transfer fee

Intro Rewards: 60,000 bonus points after the card member spends $4,000 on purchases in the first 3 months of the new card opening. These bonus points are worth $750 when redeemed for travel through Chase Ultimate Rewards.

Rewards: This credit card offers $50 statement credits every anniversary year for hotel stays purchased through Chase Ultimate Rewards. This card also offers 5x total points on all travel purchased through Chase Ultimate Rewards. Card members can also earn 2x points on airfare, hotel booking, and taxis. Card members can earn 3x points on eligible online grocery purchases and on dining and takeout from restaurants.

In a nutshell: Chase Sapphire Preferred is a great travel rewards credit card. Read more to know more about the best travel credit cards. The best part about this credit card is the bonus anniversary points. Each anniversary year the card member is eligible for 10% of bonus points of the total spent in the last year. If a customer made a purchase of $10,000 in a year, they are eligible for 1,000 bonus points. This card offers discounts or membership benefits from several other companies like Doordash, Instacart, Lyft, etc.

Amazon Prime Rewards Visa Credit Card

retailers credit card — Amazon Prime Rewards

Fees: $0 with a valid Amazon Prime membership

Intro Rewards: Card members earn a $150 welcome Amazon Gift Card upon approval of a new credit card.

Rewards: Further, members earn 5% back in rewards on Amazon.com and Whole Foods Market. They also earn 2% rewards in restaurants and gas stations. Finally, they receive 1% reward on the rest of their purchases.

In a nutshell: Firstly, this card requires the card members to have a valid Amazon Prime membership. This is good for existing card members. The current cost of the Prime membership is $39 per month. Chase and Amazon also offer another credit card Amazon Rewards Visa Card. The card doesn’t require a Prime membership but it also offers lower rewards.

Card members can redeem the cashback on Amazon.com or they can select to redeem it for gift cards, travel, or dining deals on Chase Rewards. Finally, this card offers the card members complimentary Visa Signature Concierge Service 24 hours a day.

Chase Freedom Student Card

Fees: This card has no annual fee.

Intro Rewards: Card members earn $50 bonus on making the first purchase within 3 months of card opening.

Rewards: Chase Freedom offers very little incentive to users. For instance, it offers a measly 1% cashback on all purchases. On the other hand, the main advantage of this card is the high acceptance rate for students. Chase Freedom Student Card provides free access to credit scores as well.

In a nutshell: No credit score is required to apply for this card. This is a good starter credit card to build credit over time. This card rewards making timely payments by increasing the credit limit. They also provide a good standing reward of $20 each anniversary year for 5 years.

Guides, Personal Finance

How do you select best credit card in 2023 – Complete guide

February 17, 2023 admin

Are you looking for a guide on how to select best credit card for yourself? We bring you our expert question base guide to select the best credit cards in 2023.

If anyone looks in their wallet, they will easily find 5-8 credit cards. Everyone is just obsessed with these plastic shiny cards. The United States of America has one of the highest credit card ownership. We have more than 900 million credit cards outstanding in 2022. On average, every adult American owns 5.5 credit cards. We also carry huge trillions of US dollar balances on our credit cards.

People select a new credit card for a number of reasons!

Reasons to select best credit card

They may see great rewards from the card
Looking to build credit score over time
Using credit cards to revolve money before a paycheck arrives
The convenience of using cards against carrying cash
Traveling for pleasure or business
Spending on business spends which will get reimbursed in some time

Whenever you face the choice of selecting one more card, how do you select it? Do you choose the card rationally? Do you select a credit card because you need to have it? Or you are too polite to refuse a pushy salesman at a checkout counter. Whatever triggers you, always do a thorough analysis before selecting a credit card. Do not let your emotions trump your financial goals by getting into the trap of too many cards.

Whenever a person applies for a credit card, the credit card agency does a hard pull on the credit score. This affects a person’s credit score negatively. Too many open credit cards also affect the credit score. Also, it’s practically difficult to manage too many credit cards.

So, if you have decided to go for a credit card and are sure of it. We have listed some of the below criteria to help select you a credit card easily. Ask yourself the below questions to narrow down the credit card.

What are your needs for a credit card?

You should, first of all, identify the need for a credit card. Is the card going to be your primary card or you are choosing a secondary card? Members should always be sure what the primary use of the credit card they are applying for is. Do not apply for a credit card at the insistence of a sales representative or a friend.

Select a card on the basis of its merit. If you are looking for a rewards credit card. Select one of the best rewards credit cards. Frequent travelers should opt for travel focus credit cards. They can select co-branded cards from airlines or hotels. These credit cards offer rewards favoring travelers. For example, access to airport lounges, free check-in luggage, priority boarding, early check-ins, and late checkouts at hotels.

If a person shops from a specific retailer, they should select the credit card from them. This would help them in maximizing rewards from the chain of these retailers. This can also help them with other benefits like free shipping, extended returns, or exclusive access to discounts. Read more to know the best credit cards from retailers.

Identify your credit score to select best credit card

It’s good to start from the basics, what is your current credit score? Members may want to build their credit or they may look to select one of the best credit cards to build their credit score. Read on to know more about improving your credit card score here.

Students may opt for Student credit cards. These are specially designed for students registered in a US university or school.

Top rewards cards or some of the premium credit cards require a high or excellent FICO score. It is best to apply for these credit cards only when you have a such high credit score. They easily reject people with a fair or average credit score.

Card members should monitor their credit scores regularly. They can either get a free credit score from their credit card. Or they may access free reports once a year from all three credit rating agencies viz. Experian, Equifax, and TransUnion. They can also access free credit score copies from AnnualCreditReport.com. This is a federal government-controlled site that provides consumers with access to a free copy of their credit reports each year. The reports are available from all three credit bureaus.

What is your typical credit card use?

The market is full of all sorts of credit cards. Always select the credit card which helps you in the best possible way. The card should add value to the user and should help with their financial goals. Adding a credit card should not add worries. Also, it should not increase your debt levels.

Students or credit-building adults

Students or credit-building adults could opt for secured credit cards. These credit cards take a security deposit and provide a credit limit. The credit limit is equal to the security deposit. Once you start paying back for the payments, the bank will report the payments to the credit bureaus. This will help in building the credit score of the member.

Everyday purchases

Rewards credit cards are best for everyday purchases. These everyday purchases may include groceries, gas, utility payments, streaming services, internet, and other online or in-store shopping. Reward cards offering cash back either directly in form of statement credits or points are best bets for such purchases. Rewards credit cards should always be the primary card to maximize rewards and value.

Balance transfer or 0% APR credit cards

Cardmembers with a balance on their credit card can look to opt for balance transfer credit cards. These credit cards provide better APR and lower interest outgo. Similarly, 0% APR credit cards offer introductory offers on new purchases or balance transfers. They could be excellent instruments to reduce overall interest outgoing by taking advantage of intro offers.

How much does this credit card cost me in fees?

Credit card charges a number of fees. For instance, annual fees, balance transfer fees, APR on outstanding balances, and late payment charges. They may also charge access fees for using certain services. Normally, credit cards also charge international transaction charges. These are currency conversion charges for using the card outside the USA.

Users should be aware of various fees applicable to their cards before applying for the same. Check the credit card issuer’s website to know the applicable fees. Also, check the rewards offered by the credit card. Some rewards are introductory and available one-off. Don’t be lured by such one-off rewards. Look for the overall value offered by the credit card.

What are the signs to avoid a credit card?

Sometimes not doing something is better than taking the step. Do not apply for a credit card and look for the following signs.

Accepting a credit card because your friend has recommended it. No harm in taking advice from a loved one. But do your own due diligence. Your financial situation, goals, and paying capacity might not be the same. Applying for a credit card with a $400 annual fee doesn’t make sense. The prime feature of the card may be access to Golf courses. Unless you play golf or visit golf courses doesn’t make sense for you.

If you already have several credit cards. Do not add more credit cards. Close the existing credit accounts before opening a new one. Credit card companies take a negative view to too many credit cards. They consider sucha person at ta risk of default. Also, utlize the limit of your credit cards judiciously. Keep the utilization ratio of the credit cards to below 30%.

Have you got the shiny new card? What Next?

Once you have got a credit card in your hand, always enable the SMS or app notification of the credit card provider. This will ensure that you are using your card safely and you get notification is any unauthorized charge is made on the card.

Always pay the balances on time and in full. Monitor the credit report periodically, for any change. A healthy financial life is important to keep up your mental health.