When you stack up the rewards on offer throughout the year against the annual fee – zero- this card is hard to beat for cardholders with decent credit scores.

If you typically stay in the United States and routinely monitor your categories of spending, the ABOC Platinum Rewards card ranks highly and is worth your serious consideration.

ABOC Platinum Rewards Spotlight

ABOC Credit Card Quick View

The ABOC Platinum Rewards card offers 0% Intro APR on Purchases for 12 months; after that the variable APR will be 12.90% –22.90% (V), based on your creditworthiness

After your 1 year anniversary, the APR adjusts to between 14.65% → 24.65%. The exact percentage of your APR will vary based on your credit score at the time.

You can earn 5x reward points on your first $1,500 in combined purchases each month based on the categories of your spending.

Those categories include:

• Restaurants
• Gasoline
• Travel
• Groceries

The spending is tallied on a quarterly basis.

There is no upper limit on earned points, which accumulate at the rate of 1 point for each dollar spent.

You select your rewards based on what suits your needs, and you can save your points for as long as you want. Points do not expire.

The ABOC Platinum Rewards card has no annual fee.

After you spend $1,200 within the first 90 days of having your ABOC Platinum Rewards card, you earn a $150 statement credit. This statement credit reduces the amount owed on your next bill.

ABOC Platinum Rewards
Pros and Cons

Apply Now >>

ABOC Platinum Rewards Program

The ABOC Platinum Rewards card is right for you when you want to strengthen your credit score while earning rewards for spending money.

It has more rewards for people with average credit than most equivalent cards offer.

How Does The ABOC Rewards Program Work?

For 2019, ABOC Platinum Rewards released a new type of rewards program. The categories of spending that you earn rewards on change every quarter.

For example, in one quarter, you might earn rewards on restaurant purchases. The next quarter, the rewards category might be groceries or automotive purchases.

If you do not mind keeping up with those changes and adjusting your spending to suit the rewards options, it could be an easy way to reap a lot of rewards.

Credit Card Perks

In addition, the ABOC Platinum Rewards card has several perks for you. The first perk is that you may be eligible for this card with average credit.

In contrast to many other credit cards that require you to maintain a good to excellent credit score in order to reap the full rewards, you can earn and redeem the full amount of the rewards even with an average credit score.

Apply Now >>

ABOC Platinum Rewards Card:
Key Facts

There is no annual fee for the ABOC Platinum Rewards card.

Plus, you can earn a sign-up bonus of $150 if you spend at least $1,200 within 90 days of opening an ABOC Platinum Rewards credit card.

How Much Are ABOC Point Worth?

Each quarter, the preferred rewards change. You earn 5 points per each $1 that you spend on purchases in the preferred categories, totaling up to $1,500 for the quarter.

In addition, you earn one point per $1 in spending for the non-preferred rewards categories purchases that you make each quarter.

There is no limit on point earnings for non-preferred categories, and you can redeem your points any time.

The redemption options include gift cards, statement credits, travel perks, and merchandise.

ABOC Platinum Rewards Rotating Categories

During the first quarter of 2019 (January 1 through March 31), the preferred rewards categories are grocery, pharmacy, and restaurant purchases.

During the second quarter (April 1 to June 30), the preferred rewards categories are home improvement, home supplies, and warehouse and wholesale club purchases.

In the third quarter (July 1 to September 30), the categories are airline tickets, cruise fees, car rentals, hotel stays, and travel agency purchases.

During the fourth quarter (October 1 to December 31), the rewards categories are automotive parts and service and repair purchases.

What You Need To Know

During the first six months of 2019, you must register your card at ABOCRewards.com in order to get your bonus points.

Beginning July 1, you must activate the bonus by logging into your ABOCRewards.com account.

Highlights of
ABOC Platinum Rewards Card

ABOC Platinum Rewards offers several highlights to cardholders.

Good Rewards For Fair Credit

When your credit rating is fair, it can be a challenge to find a card that rewards you for everyday purchases. ABOC Platinum Rewards is accessible to all cardholders.

ABOC Platinum Rewards does not penalize you for having fair or average credit.

Sign-up Bonus

Cardholders with fair credit ratings rarely qualify for a credit card that offers a sign-up bonus.

The generous $150 statement credit that you earn for spending $1,200 over the course of the first 90 days is more than most other credit cards offer customers with fair credit.

0% Intro APR

The 0% introductory APR lasts a full 12 months. It applies to your purchases and balances that you transfer from other cards.

You could save a good deal of money by transferring your balance from a card that has a high APR and paying it off within the 12 months.

Doing this could also help you improve your credit score.

No Annual Fee

When you are trying to raise your credit score, the last thing you need is unnecessary expenses and the good news is the ABOC Platinum Rewards card does not cost you a dime.

Closing accounts that you do not use could lower your credit score but keeping the ABOC Platinum Rewards account open will not cost you anything.

Apply Now >>

ABOC Platinum Rewards
Drawbacks

Like other credit cards, the ABOC Platinum Rewards card has some drawbacks, including:

Complicated Rewards System

You have to stay on top of the rotating rewards categories in order to maximize your point earnings.

In order to get those points added to your account, you also have to register your card on the company’s site and activate the bonus.

If you are not good about checking in with the rewards, you might miss out on points.

Another concern is that your expenditures might not line up with the timing of the rewards. For example, if your car breaks down, it might not happen during the time that the ABOC Platinum Rewards card offers the most points for automotive expenses.

Foreign Transaction Fees

ABOC removed its 3% fee on foreign transactions so frequent travelers get an even better deal signing up to this card now.

Another option for your international travels if you go abroad on a regular basis is the Chase Reserve.

Balance Transfer Fees

After your 12-month grace period ends, you pay either 3% or $5, whichever is greater, on any balance transfer to your ABOC Platinum Rewards card.

This fee structure is in line with similar credit cards in the industry.

Some cards aimed at people with fair credit charge a higher fee. This should not be a major downside for the ABOC Platinum Rewards card, but it is something to consider for the future.

What If Your Credit Score Is Poor?

If your credit is poor, you might not qualify for the ABOC Platinum Rewards card. The company requires a credit score of at least 630 to be considered for approval.

If your your credit score is low, consider taking some actions to improve it, such as getting credit for paying rent. Within a few months, you could increase your score to at least an average credit rating.

Got Bad Credit?

If you do have bad credit, you may want to try a secured credit card first. This type of card requires you to make a cash security deposit.

Your line of credit is equal to the amount of your security deposit. After making some payments on time and taking other actions to improve your credit, you could reapply for the ABOC Platinum Rewards card.

Is ABOC Platinum Rewards
Right for You?

If your credit score is average or better, the ABOC Platinum Rewards card may be a good one for you.

Its flexibility and generous rewards may be more useful to you than other credit card products.

However, if the bonus and rewards categories do not correspond well with your shopping habits, you might wish to look elsewhere such as the Capital One Savor card.

The ABOC Platinum Rewards card offers more flexibility than many of the other cards that you can get with an average credit score.

The low introductory APR and the comparable fees for balance transfers may help you to save money.

However, this card’s rewards can be a bit clunky. If you don’t have the time to analyze them, you might be better off with another card.

You will need to do some comparisons and take a close look at your spending habits in order to decide if the ABOC Platinum Rewards card is the best option for your situation.

Apply Now >>

The article ABOC Platinum Rewards Review: Now $0 Foreign Exchange Fees was originally posted on Investormint

PayPal Credit is subject to credit approval and is offered by Synchrony Bank.

As with other forms of credit it can be used to make both large and small purchases, and it may work best if you want flexibility to pay over time.

You get all the benefits of PayPal when you shop with PayPal Credit.

PayPal Credit Spotlight

How Does PayPal Credit Work?

Obtaining a line of credit through PayPal is relatively simple.

Step 1: Go to PayPal Credit site. Read “Terms and Conditions” and click on Apply Now

Step 2: Once you are logged in to your account, you can start the application process.

Step 3: You will be asked for your date of birth, your income after taxes, and the last 4 digits of your Social Security number, and then to agree to the Terms and Conditions.

You should receive a credit decision within seconds, and approved PayPal Credit offers a minimum credit line of $250.

Why Use PayPal Credit?

PayPal Credit allows you to make purchases wherever PayPal is accepted.

Your PayPal Credit account will be linked to your account with PayPal and you’ll see it as a payment option every time you check out with PayPal.

With PayPal Credit, you can enjoy No Interest if paid in full in 6 months on purchases of $99+. Interest will be charged to your account from the purchase date if the balance is not paid in full within 6 months. Minimal monthly payments required subject to approval; See Terms.

Whether you are buying the perfect gift or purchasing a new couch, PayPal Credit helps give you the flexibility to buy what you need when you need it.

PayPal Credit is accessible from any device 24/7, so you can easily manage your account online or on the PayPal mobile app.

Apply For PayPal Credit Today >>

PayPal Credit Features

With PayPal Credit, you can enjoy No Interest if paid in full in 6 months on purchases of $99+. Interest will be charged to your account from the purchase date if the balance is not paid in full within 6 months. Minimum monthly payments required. Subject to Credit approval, See Terms.

If approved, PayPal Credit is automatically added to your account with PayPal wallet. Check out in just a few clicks with no card numbers or expiration dates.

Managing your PayPal Credit account is easy. You can access your PayPal Credit account easily at any time.

If your purchase doesn’t match the exact description or doesn’t arrive at all, PayPal can refund the full purchase price plus original shipping costs. See Terms and Limitations.

Pros and Cons of PayPal Credit

Some of the pros of using PayPal Credit include the ability to get a credit decision in seconds.

The fact that you won’t have to pay interest for six months on purchases over $99.

Another great reason to use PayPal Credit is that you will receive at least $250 credit line if your application is approved. This is generally enough to shop for gifts, buy a computer, or take care of other small to moderate expenses.

Apply For PayPal Credit Today >>

Perhaps the biggest drawback to using PayPal Credit is that it can only be used on websites where PayPal is accepted.

Also, the interest rate may be higher than what an individual may be used to paying.

Another potential drawback to using PayPal Credit is that you aren’t entitled to any rewards points or other perks that may be associated with other credit cards.

Is PayPal Credit Right for You?

To decide whether PayPal Credit is right for you, the first question to ask is: does the retailer where you wish to make a purchase accept PayPal? If so, it could be an ideal means of payment.

PayPal Credit can also be a great fit for those who need flexibility to pay over time.

If you need more than six months to pay for a purchase, PayPal Credit may not be the best option on the market.

Instead, it may be better to go with a credit card with a low introductory rate that will last for 12 → 18 months. It may also be better to use a personal loan or other types of installment loans that have lower borrowing costs.

PayPal Credit may also not be the best choice for those who are looking for perks such as discounts on gas or groceries. However, it may be possible to use your PayPal Credit account to buy products from merchants that are offering special deals or incentives to those who use their PayPal accounts.

PayPal Credit Alternatives

There are several alternatives to PayPal Credit that you may be interested in and eligible to apply for. For example, you may want to look into a PayPal Cashback Mastercard or PayPal Extras Mastercard.

At the same time, you may be entitled to purchase protection and other security features offered by PayPal.

You may also want to consider applying for a credit card that is not affiliated with PayPal.

Many cards offer 0% financing for new customers for up to 18 months, and the introductory offer could apply to balance transfers as well.

Most credit card companies have protections in place similar to those that PayPal provides to its customers. Therefore, you are unlikely to be responsible for fraudulent charges or those that were otherwise made without your permission.

A personal loan can be an ideal way for you to manage your finances in a convenient and affordable manner. Personal loans are designed for borrowers with both excellent and less-than-stellar credit scores.

Lenders may offer both secured and unsecured personal loans to meet your needs and borrowing preferences.

If you own a home, it may be possible to get a home equity loan or Home Equity Line of Credit (HELOC). Home equity loans are similar to personal loans in that loan proceeds are provided to you in a single lump sum and repaid in installments.

A HELOC is similar to a credit card in that it is a revolving line of credit.

PayPal Credit Review Summary

PayPal Credit is designed to be an effective tool for those who are looking for greater financial flexibility in their lives.

It can be used to purchase almost anything that is priced at or below your available line of credit, and it can be used at any retailer that accepts PayPal as a form of payment.

The application process is designed to be started and finished in a matter of minutes, and you can go through that process from any device that has an internet connection.

When approved for a line of credit, you can have full access right from your account with PayPal. If you don’t currently have an account with PayPal, you can sign up for one in a few easy steps. Signing up for PayPal is free.

If you make purchases that are $99+, you can enjoy 6 months promotional financing. Minimum payments apply.

Apply For PayPal Credit Today >>

The article PayPal Credit Review – Buy Now, Pay Over Time! was originally posted on Investormint

The PayPal Cashback Mastercard® is a credit card that offers cash rewards to customers. You can get cash back from every purchase you make using the card, making it an attractive option for customers who use credit on a regular basis.

This card is exclusive to PayPal customers, so you’ll have to set an account up before you can apply for this card, which includes perks like:

• 2% cash back on each purchase
• No annual fee¹
• No foreign transaction fee
• No limit on cash rewards

We’ve put together a handy primer about the PayPal Cashback Mastercard® so that you can get all the information you need in one place.

PayPal Cashback MasterCard Spotlight

PayPal Cashback MasterCard Features

The PayPal Cashback Mastercard offers 2% cash back* on every purchase you make with the card.

There are no minimum purchase requirements, so you can use the card as often or as sparingly as you’d like and still earn cash rewards. However, the more you spend, the more cash you’ll get back based on 2% of the purchase totals.

Unlike many cards, PayPal does not require your rewards balance to reach a minimum threshold before you can receive benefits. You can redeem rewards right to your PayPal balance*.

A big perk is that there are no restrictions on what type of purchases are eligible for cash back rewards. Even better, there are no pesky conditions to keep track of, such as rotating rewards categories.

For security-minded cardmembers, PayPal also offers zero liability on fraudulent purchases and PayPal Protection on all purchases made through PayPal using this card.

It’s not all sunshine and roses though. A drawback for new cardmembers is that no sign-up bonus is offered. No introductory APR nor annual bonus is offered either. However, you won’t be charged an annual fee¹ either, so you’ll save money yearly on using this card over some others.

Another blot on the copybook so to speak is the high APR. The variable annual percentage rate on this card is between 22.24% and 29.24% (as of 7/1/2019).

If a 0% balance transfer card suits your needs better, consider the Discover-It 0% Balance Transfer card.

How To Get Cash Back?

Getting cash back on the PayPal Cashback Mastercard is simple and easy.

You’ll start earning cash back as soon as you begin using the card. Every purchase you make with the card is eligible, regardless of what you bought, when you bought it, or how much you spent using your card over the course of the month.

When you are ready to redeem your cash rewards, sign in to your PayPal Cashback Mastercard account and request a rewards redemption.

Important information on redeeming Cash Rewards to your PayPal balance: You need to have a PayPal Cash or PayPal Cash Plus account to have a balance. If you do not have one of those accounts, you can only transfer your Cash Rewards to your bank account or debit card linked to PayPal.

Pros of PayPal Cashback Mastercard

There are several advantages to using the PayPal Cashback Mastercard.

• Simple, straightforward cash back program. The PayPal Cashback Mastercard has only one cash back tier. Every time you use your card, you get 2% cash back* on your purchases. You don’t have to worry about hitting a minimum threshold to get a higher reward level or about whether your purchases are eligible for the rewards program. Simply take out your calculator and figure out 2% of the total purchase price every time you use the card to figure out what your reward will be. And as an added bonus, the 2% is higher than the industry standard, which is only 1.5%!
• No minimum level needed for redemption. You can redeem your cash anytime you need it – even if you only have $5 in your rewards account! You don’t have to hit a minimum threshold. So if you find yourself a little short of cash, you can get your rewards with just the click of a button, no matter how small the amount.
• It’s a regular credit card. Don’t be fooled by the fact that it’s associated with PayPal, which is an online payment system. Your PayPal Cashback Mastercard is a Mastercard, so you can use it anywhere Mastercard is accepted.
• You can use it right away. Because PayPal is an online system, you don’t need to get the physical card before you can begin shopping online. Once approved, you can, in most cases, start using your card right away through your account wherever PayPal is accepted. You’ll still need the physical card to shop in brick-and-mortar stores, but you can start getting your cash rewards online while your card is in the mail!

Drawbacks of PayPal Cashback Mastercard

No card is perfect, including this one. Here’s a few things to consider.

• You have to have a PayPal account. The card is associated with PayPal, so you have to set up an account to even apply for it, and if you want your cash rewards you need to request them through PayPal – there is no option to get a check in the mail. It’s easy to set up and learn how to use PayPal, but if you aren’t a fan you might not like this card.
• No sign-up bonuses or introductory APRs. PayPal doesn’t offer anything special to new customers to entice them to sign up. Equally, it doesn’t require you to pay an annual fee so you save money that way. An introductory APR would be a nice thing to have since PayPal charges a higher-than-average APR on account balances.
• Associated with a bank ranked so-so in customer service. PayPal Cashback Mastercard is issued by Synchrony Bank, which gets so-so ratings for customer service according to ConsumerAffairs.
• Higher than average APR, especially if you have poor credit. If you carry a balance, you may end up paying a lot more in interest on this card than on some other cards.

PayPal Cashback Mastercard Credit Score Minimum

PayPal’s terms and conditions state only that you have to have a PayPal account in good standing to be eligible for this card. However, approval is subject to Synchrony Bank’s conditions.

In practice, it’s probably best to have a credit score closer to 700 or more than 600 before applying for this card.

Foreign Transaction Fees?

There are no additional transaction fees if you make purchases in foreign countries using this card so feel free to hop on that flight to Paris, Rome, Madrid or Tokyo and spend worry-free.

While quite a few other cards charge no foreign transaction fees, many charge an annual fee. What makes this card stand out from the pack is you don’t have to pay an annual charge in order to receive the perk of avoiding foreign transaction fees.

Is PayPal Cashback Mastercard Right For You?

If you are the kind of person who shops a lot but usually pays your credit cards in full at the end of the month, this card may be a good option for you.

It’s ideal for cardholders who want to avoid the hassle of keeping track of rotating categories too. Some other cards offer higher rewards on certain categories, like groceries or gas, but only at certain times of the year. These types of credit cards require cardholders to be vigilant year-round to make the most of their rewards.

The PayPal Cashback Mastercard is a good fit for both travelers and non-travelers. If you do fly abroad, you won’t be hit with forex fees. And if you don’t travel, you’re not missing out choosing this card versus some other cards that offer more points for travel, albeit usually for an annual fee.

For cardholders who like cash vs points rewards, this card is a hit. You don’t have to scratch your head with any complicated math converting points systems to cash rewards. Instead, you can see right away what you’ll get back in cash: 2% on every purchase. Simple!

You can still get this card if you have less than stellar credit, but your APR will be higher and if you don’t pay off your balance at the end of the month, you could be looking at paying a lot in interest.

How To Apply For The PayPal Cashback Mastercard

You can set up an account in minutes and then fill out your application. Once you apply, PayPal provides you with an instant approval decision. If you are approved, your PayPal Cashback Mastercard will appear in your PayPal account right away, allowing you to make online purchases with it even before you get the card.

PayPal will check your credit and give you an instant decision about approval.

Apply Now

FAQ

Is the PayPal Cashback Mastercard the same as the PayPal Extras Mastercard?

The PayPal Cashback Mastercard differs from the PayPal Extras Mastercard, which also offers cash back on a tiered basis. Customers cannot have both of these cards at the same time.

Terms and Disclosures

*Purchases subject to credit approval. See Rewards Program Terms for details and restrictions. To earn Cash Rewards, you must have an open account with PayPal in good standing to which your Card Account is linked. If your account with PayPal is closed for any reason or if your Card

The article PayPal Cashback Mastercard® Review was originally posted on Investormint

If we told you that Southwest was currently offering the greatest credit card deal of all time, it might sound like an exaggeration but when you learn about the offer you will see what all the fuss is about.

For a limited time only, Southwest is offering a Companion Pass to California residents only who qualify for a Southwest credit card and make a purchase.

If you want to take advantage of the “Fly One. Get One Free. For A Year” deal, you will need to apply before Nov 30, 2017.

But before you do, you probably want to know if there is a catch? Here is what you need to know.

How To Apply For a
Companion Pass Deal

To apply for a Companion Pass deal, you will need to take 3 steps:

1. Open a new Rapid Rewards® credit card account
2. Make a purchase
3. Get a Companion Pass

A $69 fee will be added to your first billing statement and the offer is only available to California residents.

What Are The Southwest
Credit Card Benefits?

After you spend $1,000 in the first three months of opening your account, you will earn 40,000 points.

Thereafter, you can earn unlimited points and you won’t be surprised by any blackout dates when you try to redeem points as you might on some other airlines.

Plus a year after you sign up, you will receive a Cardmember anniversary gift of 3,000 points.

Another nice feature is that your points never expire, so you don’t have to worry about redeeming them within a fixed time frame.

Each time you spend $1, you earn 2 points on Southwest purchases as well as Rapid Rewards® Hotel and Car Rental Partner Purchases.

For all other purchases, you earn 1 point for each $1 spent.

Other Ways To Apply For
A Companion Pass

Companion Pass is the most coveted loyalty status available to Southwest travelers and you don’t have to be a California resident eligible for this limited-time only deal to earn it.

To qualify for Companion Pass, you will need to:

1. Fly 100 1-way Southwest flights in a single year
2. Earn 110,000 Companion Pass qualifying points in a single year

As a California resident, you can see why the deal is such a winner. By simply applying for the card and making a single purchase, you get to fly with your companion at a 50% discount for a full year without having to jump through the hoops others do.

What You Need To Know
About The Companion Pass Offer

The Companion Pass offer is available for the rest of the calendar year in which you receive it as well as the next calendar year.

If you sign up for the California-only limited time offer by Nov 30 then you will be eligible to use the Companion Pass until Dec 31, 2018.

You will need to provide evidence of a California residency address to qualify for the offer, and you can only designate one companion so you are restricted from bringing a different person each time you fly.

Don’t forget to make a purchase once you receive your card because that is a necessary step to qualify for Companion Pass loyalty status.

Sadly for current and previous cardholders, the offer is restricted to new cardholders only.

Other Southwest Airlines
Credit Cards

If you are not a California resident but still wish to take advantage of other Southwest Airlines credit cards, you can look to the Plus Card and the Premier Card, both of which have enticing benefits.

	Premier	Plus
Earn 40,000 bonus points after spending $1,000 upon account opening	✅	✅
No foreign transaction fees	✅	–
Annual Fee	$99	$69
Earn 2 points per $1 spent on Southwest Airlines purchases made directly with the airline	✅	✅
Earn 2 points per $1 spent on Rapid Rewards hotels and car rental partner purchases	✅	✅
Earn 1 point per $1 spent on all other purchases	✅	✅
Anniversary Points upon your 1 year cardmember anniversary	6,000 points	3,000 points
1,500 Tier Qualifying Points towards A-list and A-list preferred status for every $10,000 spent, up to $100,000	✅	–
Redeem points for International flights, cruises, hotel stays, car rentals, or gift cards	✅	✅

Southwest Companion Pass Deal Summary

Provided you meet the eligibility requirements and have good credit, the Southwest Companion Pass deal is about as good as it gets for any frequent Southwest flier living in California.

You will need to designate a single companion who can join you on all flights for the calendar year in which you receive your Companion Pass loyalty status as well as the following calendar year.

This limited time, California-only Companion Pass deal can be snagged up until Nov 30, 2017 and can be enjoyed until Dec 31, 2018.

If you and your partner live in California but regularly take trips say to the mid-west or East Coast to visit family, you effectively get to enjoy 50% off regular Southwest Airlines airfares.

Plus, you can take advantage of Southwest Airlines new route to Hawaii and save half of what you would ordinarily spend by signing up before the deadline.

The bottom line is the savings could amount to thousands of dollars, even for travelers who jet off a couple of times per year, and possibly much more for frequent fliers.

>> Get 4% Rewards Dining Out With Uber Visa Credit Card

>> Is Chase Sapphire Reserve The Best Travel Credit Card?

>> Is Discover It® The Best Balance Transfer Card?

The article Southwest Companion Pass Deal For California Residents was originally posted on Investormint

A joint effort of MasterCard, Goldman Sachs and Apple, the card offers cash back on your purchases with no annual fees, cash advance fees or finance fees (if you pay your balance off monthly). It pays you between 1 → 3% cash back on what you spend.

All these perks made us wonder whether there are any drawbacks to Apple’s new card, so we looked into the pros and cons to help you make an informed credit decision.

Apple Credit Card Spotlight

Apple Card Key Features

Pocket Money

Apple calculates and allocates your cash back on a daily basis, so you won’t have to wait until your next billing period to begin reaping your rewards.

Interest on Balances

As is standard with most credit cards, if you pay off your Apple Card each month, you won’t pay an interest finance charge.

However, if you do run a balance, you will pay interest at a rate that ranges from 13.24 → 24.24%, depending on your contract with Apple.

>> Related: What Is A Good APR Rate?

Stealth Purchases

When you use your no-touch titanium Apple Card, you are going incognito.

The card is not marked with your account number, an expiration date or a CVV number. All this is stored within a proprietary security chip.

Only your name appears on the card, elegantly etched by lasers.

Each time you charge something, you will receive a unique transaction code that you verify with Face ID or Touch ID technology.

No signature is ever required or stored in your account.

Convenience

You can use your Apple Card anywhere you might otherwise use a MasterCard.

When you are ready to pay your bill, simply send it electronically via ACH from your bank or your Apple Pay Cash account.

Financial Security

Every account has an associated account number. You can keep that same number as long as it works for you.

However, whenever you think your card may be vulnerable to theft, just tap the app, and it will issue a new account number.

You won’t have to wait two weeks for a new card.

What’s more, many retailers use account updater technology to ensure your bills continue to get paid despite the change.

Instant Answers

If you are unsure about any of your charges on your credit card bill, you don’t have to call a customer service number and get placed on hold.

Instead, just tap the charge on your iPhone screen to bring up a map. The map pinpoints where you made the transaction.

Text Support

The Apple Card features customer service by text, which is intended to get you the answers you need faster than an agent at a busy phone bank.

With your iPhone in hand to use your credit card, a text will take only a few moments.

Tracking Tools

Your Apple Card app sorts your purchases into various color-coded categories, making it easier for you to see how you spend your money at a glance.

You also get quick access to spend summaries that feature colorful graphics, making it more fun to stick to your budget.

Interest Calculator

If you are unable to pay your entire credit balance, Apple provides a tool that helps you strategize how much you should pay to optimize interest savings.

You enter the amount you are able to pay, and the built-in calculator estimates the interest that will be due on your balance.

The app can also offer some helpful tips on managing your Apple Card payments to save more.

Your Bonus Is In The Brand

While other credit card companies make various offers of bonuses and fee reductions to attract new customers, Apple is counting on its brand to do that.

It wagers that dedicated Apple users will welcome a card that is fully integrated with the family of Apple devices and apps.

>> Need A High Limit Credit Card?

How Much Is an
Apple Card Point Worth?

Unlike credit cards that offer rewards on your purchases in the form of points that you can use to get a limited menu of products, the Apple Card credits rewards in the form of cash back.

These are deposited into your Apple Pay Cash account daily or your Apple Card account each billing cycle.

Therefore, a $1 Apple purchase is worth 3 cents, and other $1 purchases are worth 2 cents or a penny if swiped.

Why Choose The Apple Card?

If you are a dedicated Apple user, the Apple Card could be the right card for you.

According to the manufacturer, it is based on the same principles as the Apple brand: transparency, simplicity and privacy.

Also, if you already are a whiz on your iPhone and have been using Apple Pay for a while, you can slip the Apple Card seamlessly into your Wallet for immediate use.

If you do everything on your mobile device, you will be a natural for adapting quickly and drama-free to the new Apple protocol.

The company has worked with Goldman Sachs as the issuing bank and MasterCard to remove many of the risks of transacting virtually all of your business electronically.

Cutting-Edge Security

If the idea of a no-fee cash-back card with exceptional security is something you have been looking for, the Apple Card would fill the bill, especially if you are reasonably tech-savvy.

If so, and you own an appropriate Apple device, this card would work for you.

Consider Other Cards If..

However, if you have not embraced the technology of the Apple universe and prefer to write checks to pay your monthly expenses, the Apple Card may not be very attractive.

Other cards, such as the Chase Reserve card or Capital One Savor card may be more suitable.

Also, if you do not own an iPhone, an iPad, an Apple Watch or a Mac, you would be facing a considerable learning curve to transition to the Apple Card.

How Does the Apple Card Work?

The Apple credit card works with Apple devices. The card itself is a laser-engraved titanium card the same size as a standard credit card.

You can use it at the point of purchase, but you still need to have the app at the ready to confirm and complete your transaction.

Your Wallet app holds the Apple Card.

You can use the card straight from the Wallet or go through your Apple Pay account, which is also in the Wallet.

The Wallet comes with your iOS, but Apple Pay is an extra account for which you must sign up.

Although you can make the majority of your transactions with your iPhone or other Apple device, you can also use the physical card should you come across a merchant that doesn’t accept Apple Pay, which is currently only about 30% of U.S. retailers.

Either way, when you make your purchase, the app sends you a dynamic security code that works only for that specific transaction.

The second part of this security procedure is your biometric code, which consists of either face recognition or your fingerprint. Then, at the time of your purchase, the system issues your cash back.

>> Save Each Time You Swipe With Acorns

Apple Credit Card
vs. Other Credit Cards

Other cards reel you in with special offers like no-interest balance transfers, sign-up rewards and 0% for six months. Their interest rates on revolving balances are on a par with the Apple Card.

For instance, the Citi Double Cash Card charges comparable, if slightly higher, interest than Apple at a range of 15.74 → 25.74%.

A couple of features that Apple offers that other credit cards cannot beat are the trustworthy Apple brand and the convenience of Apple Pay.

Also, the iconic brand’s cash-back proposition is equal to or greater than those of its competitors.

This includes the Chase Freedom Card, which only offers 1.5% cash back on all purchases. Also, you can use your Apple Card anywhere in the world without paying foreign transaction charges.

Compared to the Barclay Visa with Apple Rewards, the Apple Card has some advantages, such as giving cash back that you can spend on anything versus points toward a limited number of products.

One feature that Apple doesn’t provide but some of the other cards do is cash back on restaurant and entertainment purchases.

>> Check Out The Uber Visa Card

Apple Credit Card Pros and Cons

Is the Apple Card Right for You?

Apple is renowned as a trendsetter that has played a major role in determining the direction that technology takes in the future.

The Apple Card is no different with cutting-edge innovations and security that put it to the forefront of the credit revolution. When the rest of the world comes on board, you will already have your seat reserved if you adopt the Apple card early enough.

On the other hand, because the Apple Card is a brand-new concept, you may want to wait until it iterates through a few generations to make sure that any bugs have been worked out.

One of the reasons that Apple has maintained its reputation as a major innovator in the tech environment is its continual quest to improve its devices and apps to meet marketplace demands.

Of course, only you can determine whether the Apple Card is right for the way you like to manage your credit.

Backed by a trustworthy brand and designed to integrate effectively with existing Apple and Mac electronics, the Apple Card is likely here to stay, so you can take your time weighing the pros and cons before making a decision.

Apply For the Apple Card >>

The article Apple Credit Card Review – Say Goodbye To Fees! was originally posted on Investormint

Have you ever had that sinking feeling after you buy something that you made the wrong choice?

Maybe you bought a stock like Facebook or Amazon, and then changed your mind. Or maybe you bought a book and decided afterwards to return it.

In most cases, it’s no big deal to reverse transactions like these but what happens when you apply for a credit card and later want to decline it?

If you are wondering how to cancel a credit card application after the fact, you have some options that we will share below.

How Your Credit Score Is Affected
When You Cancel A Credit Card

Before canceling your credit card based on a knee-jerk reaction, it’s wise to school-up on the factors that affect your credit score so you make a more informed decision.

You may already know that paying your bills on time and paying off your balance each month help you to side-step penalties that could hurt your credit score.

But did you know that the length of time you have held your credit cards, otherwise known as Age of Credit is a factor too?

How Age Of Credit Affects Your Creditworthiness

Credit card issuers like to see that you have held your credit cards for a longer period versus a shorter timeline.

It shows them that you have demonstrated financial responsibility by paying your bills on time over a long duration.

When you cancel a credit card application, which effectively means canceling a credit card after it arrives in the mail, the maturity factor that affects your credit score is negatively affected.

Depending on the length of your credit history and the number of credit cards you possess, you will be affected more or less.

For example, a pensioner who has held say an American Express credit card for years along with half a dozen other credit cards may not be affected too much by canceling a credit card quickly.

However, a first-time credit card user who had a last minute change of mind after submitting a credit card application is likely to be more severely penalized because they have a comparatively limited credit history to help the credit card issuer assess how risky a user they will be.

Other Factors That Affect Your Credit Score: Credit Utilization

Beyond the Age of Credit, another factor that affects your credit score is your Credit Utilization.

Each credit card you receive comes with a credit limit. Intuitively, you might think you can spend up to the limit each month without consequence.

After all, why would a credit card issuer provide you with a line of credit unless they expected you to use it, right?

Wrong!

Credit card issuers like to see that you can manage your finances carefully and spend less than you need.

By maxing out your credit card limit each month, your credit card provider will probably adjudicate that you are struggling financially, which means you are put in a high risk bucket.

Unfortunately that means your credit score will probably take a hit.

That’s when the dominos start to fall because a lower credit score usually means higher interest payments on any new loans you receive.

To avoid paying higher credit card interest rates and more interest each month on any new loans, try to avoid maxing out your credit card each month.

A good rule of thumb is to keep your spending less than 30% of your credit card limit.

Or if you want to show your credit card issuer that you are very low risk, keep your spending capped at 10% of your credit line.

What Affects Your Credit Score? Number Of Hard Inquiries

One of the big things that affects your credit score is the number of hard credit checks or inquiries made on your account.

Let’s say you apply for a SoFi personal loan, for example, you will at some point in the application process be asked to consent to a hard credit check which may hurt your credit score.

Similarly, when you apply for an auto loan or mortgage, lenders will almost always perform a hard credit check.

The more inquiries on your account, the more likely it is that your credit score takes a hit.

With that said, credit bureaus like Experian, TransUnion, and Equifax know that when you shop for loans you will often inquire with many lenders in a short time frame, so a 30 day “grace” period is generally provided to allow you shop around for the best rates.

Is Your FICO Score Affected
When You Cancel A Credit Card?

When you cancel a credit card application, your credit score may take a hit but by how much?

In practice, the maturity of your credit is not a major factor in calculating your credit score so a prime borrower with lots of credit cards and a long history of making timely payments and paying off balances in full may not see their FICO score fall by much.

While the major credit bureaus don’t reveal precisely how they calculate credit scores, it’s probably a fair bet to assume that canceling a credit card is worth no more than a few percentage points overall.

All the other factors like credit utilization, number of hard credit checks, number of credit cards, payment history, and balances will all combine to affect your score more significantly.

With that said, if you can hang tight for a month or two before canceling your credit card or switching to another credit card, the better off your credit score should be.

Switch To Another Credit Card
When You Have Bad Credit

If you are thinking to yourself: “I applied for a credit card but don’t want it because I have fair credit or bad credit” then take a deep breath before selecting the “cancel credit card application” button!

While a credit card user with a long established history as a prime borrower may not be affected much by refusing a new credit card, a sub-prime borrower with a so-so FICO score needs to tread more carefully.

Rather than cancel a credit card application, give your credit card issuer a buzz to see if you can swap your card for another more suitable card.

Maybe you picked a credit card with a high annual fee like the Chase Sapphire Reserve Card and decided it wasn’t for you. By calling Chase, you may discover that the Chase Freedom credit card is a better fit.

Or maybe you chose a high limit credit card but decided a lower credit line would be more suitable based on your spending habits. Give the credit card issuer a call and see what credit card alternatives exist.

Should You Cancel A
Credit Card Application?

The allure of a new credit card is obvious: points, miles, rewards, and bonuses!

But after you apply for a credit card the reality sets in: annual fees, APR interest rates, credit card balances, and monthly payments.

It may be tempting to do an about-turn and decide to cancel your credit card application but, before doing so, compare credit card alternatives to see if another type of card might be a better fit.

A credit card with lower annual fees or a 0% balance transfer card may be an ideal fit and your credit card issuer may be willing to swap your current card for a more suitable one if you call them to inquire.

While canceling a credit card will usually result in a hit to your credit score, prime borrowers will likely be affected less than sub-prime borrowers, who may experience more pain. So, where possible it is best to swap out a credit card instead of canceling a new card.

Even if you don’t plan to use your credit card, it may end up helping your age of credit factor that in turn affects your credit score. Plus, you can always use your new credit card as a last resource if you need access to credit or cash in a hurry.

Have you ever had to cancel a credit card application? How did it affect your credit score? Share your experiences in the comments below, we would love to hear from you.

>> Is Discover It® The Best Balance Transfer Card?

>> Capital One Spark® Business Cash Back Card

>> Is Chase Sapphire Reserve The Best Travel Credit Card?

The article How To Cancel A Credit Card Application was originally posted on Investormint

Are you tempted to put a big purchase on your credit card? Think twice because if you go over your credit limit there will be consequences.

You may be in for a rude awakening the first time you exceed your credit limit because the first thing that takes a hit is your credit score.

Just because you receive a credit limit doesn’t mean you can use the entire line of credit up without a knock-on effect.

In fact, credit utilization or the amount of credit you use compared to your limit each month is a factor that contributes to your creditworthiness.

An individual with a 730 credit score could easily see 90 → 100 points knocked off their score in one period simply by maxing out their credit limit by making an unusually large purchase.

And that doesn’t hit doesn’t even take into account the impact of going past your threshold. So you might be wondering what happens if you go over your credit limit?

What Is My Credit Limit?

Your credit limit is the maximum line of credit offered to you be a lender or credit card company.

A good rule of thumb is that you should only use 30% of your credit limit in any given period in order to avoid negative hits to your credit score.

So, if you were issued a credit card with a $5,000 limit, a 30% credit utilization would amount to $1,500.

By spending $4,900, or 98% of the credit limit, a credit card issuer may conclude that you are struggling financially.

And as Murphy’s Law predicts, when it rains it pours. Just when you are falling behind in payments, credit bureaus take a less rosy view of your creditworthiness, which in turn hurts your credit score.

During those gloomy periods when it may not be possible to pay off your credit card balance in full each month, try to make minimum payments at the very least to limit the damage.

How Do I Check My Credit Limit?

If you are not sure how much credit has been extended to you be a lender, check your monthly statement or visit the online portal of the credit card issuer.

It is important to pay close attention to this number because the rates you are offered by lenders are influenced by your credit score.

And while it may not seem like a big deal to pay an extra 1% → 2% in interest charges each year, the additional costs over a 10, 20, or 30 year period can amount to tens of thousands of dollars or more in needless interest payments.

What Happens If I Go Over My Credit Limit?

You can probably already guess that if you are penalized for simply spending up to your credit limit, the consequences can be even more severe when you go over your limit.

Although overcharge fees may be assessed, your credit limit may be reduced, higher interest rate charges may be applied, and your credit score may be impacted, a silver lining does exist.

Can You Go Over Your Credit Card Limit?

Here is the good news, sort of!

Credit card companies are required by law to provide you the option to have transactions declined when you spend beyond your limit.

It’s tempting to opt out of over limit purchases because you don’t want to be left with a red face at the grocery store by receiving a “credit card declined” notification.

But the short term embarrassment may be better than a longer term impact to your cost of borrowing and creditworthiness.

Only you can make the decision for your own personal financial situation. If you do decide to allow over limit transactions, your credit card issuer will only permit a fixed amount so don’t think you’ve got a green light to spend liberally without a ceiling.

By choosing to have transactions declined when they exceed your credit limit, you avoid by default the credit limit fees that may otherwise be assessed.

How Over Limit Fees Work

Not all credit card issuers impose over limit fees when you go over your credit limit. But don’t think you’re out of the woods even if they have a zero-fee policy.

Credit card issuers can penalize you with other charges, such as higher interest rates and higher minimum payment requirements.

When you spend more than your limit, your credit card issuer will make a calculated assessment that you are struggling to budget responsibly and higher interest rates reflect the higher risk you pose to them.

Paradoxically the more they charge, the harder it is to keep up with payments but there is no getting around it unfortunately.

One piece of good news is that if a credit card issuer does charge a penalty fee, the amount is limited to no more than the excess beyond your limit.

So, if your credit limit was $5,000 and you spent $5,045, the fee applied could not exceed $45.

Credit Card Tips

Rather than wonder what happens if you go over your credit limit, contact your credit card issuer and request an increase in your credit limit.

If you have a history of making payments on-time and paying off your credit card balance each month, your credit card company may be willing to extend you a larger line of credit.

Another possibility is to pay off a portion of your balance before it is reported to the credit bureaus (Experian, Equifax, and TransUnion), which typically happens at the account statement closing date.

Even if your credit utilization remains high but you ensure your balance is below the limit, you may be able to avoid over limit fees, higher interest rate charges, and higher minimum payments.

Lastly, consider splitting a payment across a few credit cards rather than max out a single credit card.

Do you know what happens if you spend over your credit limit? Let us know if you have experienced issues going over your limit? Share your thoughts in the comments below.

>> What Is A Good APR For A Credit Card?

>> Can You Get A Credit Card Without A Job?

>> How Does Credit Card Interest Work

The article What Happens If You Go Over Your Credit Limit? was originally posted on Investormint

Are you looking to compare AmEx Gold Vs Platinum to figure out which credit card is best?

At first glance, the two cards may look similar but in practice they are very different and target two different types of credit cardholders.

Although a hefty annual fee is part and parcel of each credit card and both reward travelers, the American Express Premier Rewards Gold Card rewards everyday spending better while The Platinum Card^® from American Express is a better fit for frequent travelers.

So, which card is right for you, the Amex Gold or Platinum Card?

American Express Premier Rewards Gold vs Platinum Card

Day-to-day Spending

While both Amex Gold and Platinum Cards are great for travel, the Gold card is the better choice for daily purchases.

At restaurants, gas stations, and supermarkets in the United States, you will earn 2X points with the Amex Gold Card but just 1X Membership Rewards^® Points with the Platinum Card.

Travel Points

On travel, the Platinum Card shines brightest but the Gold Card is no slouch.

Platinum Cardholders earn 5X points on flights booked directly with airlines or via American Express Travel while Gold Cardholders earn 3X points on flights booked directly with airlines.

Annual Cost & Travel Perks

The AmEx Gold Card is quite a bit cheaper, costing just $195 per year versus $550 annually for the Platinum Card.

For the extra cost, Platinum Cardholders enjoy an abundance of luxury benefits, like free concierge service to book restaurants, Centurion Lounge access, a fee credit for Global Entry and TSA Pre-screen, as well as free Boingo WiFi access.

Platinum Cardholders also receive a $200 airline fee credit versus a $100 credit for Gold Cardholders.

And other perks for Platinum Cardholders include Hilton Honors Gold Status and Starwood Preferred Gold Status.

For Gold Cardholders, the usual $195 annual charge is waived in year one, whereas the full $550 Platinum Card fee needs to be paid in the first year.

Entertainment Perks

Both cards provide access to entertainment events and preferred seating benefits when available but only the Platinum Card features concierge service and access to the global dining collection.

For a side-by-side comparison of the two Amex credit cards, we dive into the nitty gritty below…

Amex Platinum or Gold Card:
How They Stack Up

Amex Gold vs Platinum Card:
Which Credit Card Is Best?

The AmEx Gold and Platinum Cards are both luxury credit cards designed to provide travel perks but the Platinum Card shines brightest for frequent travelers, who earn more Membership Rewards^® Points on flights booked directly with airlines and via American Express Travel.

Platinum Cardholders also enjoy Starwood Preferred Gold status and Hilton Gold Status, as well as  complimentary concierge booking service, a $200 airline credit fee and credit towards Global Entry and TSA Pre-screen, complimentary airport WiFi from Boingo, plus access to partner lounges around the world.

With so much going for it, you might be wondering why choose the Amex Gold card? For everyday spending at restaurants, hotels, and supermarkets, the Gold card rewards cardholders with twice as many points.

It also has a lower annual fee of $195, which is waived in year one, compared to the $550 annual fee charged by the Platinum Card.

So, which credit card is best? In a nutshell, frequent travelers will do better with the Platinum Card while cardholders who want to earn benefits from day-to-day spending would do better with the Gold card.

Did we miss any perks that you enjoy with the Amex Gold or Platinum cards? Let us know, we would love to hear from you.

>> Is Discover It® The Best Balance Transfer Card?

>> Get 4% Rewards Dining Out With Uber Visa Credit Card

>> Is Chase Sapphire Reserve The Best Travel Credit Card?

The article AmEx Gold vs Platinum: Compare Credit Cards was originally posted on Investormint

Are you struggling to get to grips with the Chase Freedom^® and Sapphire Preferred^® credit cards?

At first glance, it’s hard to separate them. Neither card will charge you an annual fee in the first year and both offer a standard 1% rewards rate on regular purchases outside of bonus categories.

But when you look a little deeper, you will discover both Chase credit cards have a lot going for them. The Sapphire Preferred^® card rewards frequent travelers generously while the Freedom^® card features as much as 5% cash back rewards.

So, which card is best: Chase Freedom^® or Sapphire^®?

Chase Sapphire or Freedom:
Spending Rewards

Both the Chase Freedom^® credit card and Chase Sapphire Preferred^® card reward day-to-day spending, but the Freedom^® card shines thanks to its rotating bonus categories.

You can earn as much as 5% cash back – up to $1,500 per quarter – when you make purchases in certain rotating categories, including:

• Gas stations
• Grocery stores
• Department stores
• Wholesale clubs

The way rotating categories work is every 3 months you will be notified that spending in a certain category will reward you with higher points.

For example, spending at grocery stores may earn 5% cash back rewards during one quarter while spending at gas stations may earn you 5% another quarter.

All other spending earns 1% cash back rewards.

The Chase Sapphire Preferred^® card won’t reward you as much for daily spending but stands out for its travel and dining rewards perks.

You earn 2 points for every dollar you spend on dining out and travel and 1 point for every dollar spent on other purchases.

Get Started with Chase

Freedom vs Sapphire Preferred Benefits: Travel Rewards

The Sapphire Preferred^® card is by far the better choice for frequent travelers.

Not only do you earn 2 points for every dollar spent on travel, but when you are overseas you won’t be hit with pesky foreign transaction fees – unlike the Freedom^® card which charges a 3% foreign exchange fee on purchases made abroad.

Another benefit of the Sapphire Preferred^® card, which isn’t necessarily obvious at first glance, is that each point earned is worth 25% more in value when redeemed through the Chase Ultimate Rewards^® portal.

That means on regular purchases that earn 1% cash back with the Freedom® card or 1 point on the Sapphire Preferred® card, your money goes further with the Sapphire^® card.

The way it works is you can book flights and travel via the Chase Ultimate Rewards^® portal and get 25% more your points than if you cashed in your points and booked directly with an airline or via a third-party website, like Orbitz.

Another bonus of the Sapphire Preferred^® card is the ability to transfer points to airline loyalty rewards programs. Generally, the exchange rate is 1-to-1, meaning each point you earn from your credit card spending translates to 1 point in the loyalty program.

Get Started with Chase

Chase Freedom or Chase Sapphire: Sign-Up Bonus

Where the Sapphire Preferred^® card really knocks the socks off the Freedom^® card is in the area of sign-up bonus rewards.

After you spend $4,000 in the first 3 months after opening an account, you will receive 50,000 bonus points, which translates to $500 of cash value.

But wait there’s more…

When you redeem them for travel in the Chase Ultimate Rewards^® portal, points are worth 25% more, meaning the total value is $625.

The sign-up bonus for the Freedom^® card is not shoddy by any means. You receive a $150 bonus after you spend $500 on it in the first 3 months after opening an account. But next to the Sapphire^® card, the bonus is fairly paltry.

Get Started with Chase

Chase Sapphire vs Freedom: How They Stack Up

Get Started with Chase

Chase Freedom or Chase Sapphire: Fees

While neither card will cost you a penny in year one, the Sapphire Preferred^® card applies an annual $95 charge after year one.

The initial sign-up bonus is so generous (after you spend $4,000 in the first 3 months) that it pays for at least five years worth of annual charges if you were to convert your sign-up bonus reward points to cash.

Of course, they go 25% further when you redeem them through the Chase Ultimate Rewards^® portal but the point really is that even though an annual cost applies, the rewards more than compensate you.

Ignoring the sign-up bonus, you might be wondering how much you need to spend each year to breakeven on the annual Sapphire Preferred^® card fee.

If you didn’t dine out or travel at all, you would need to spend a whopping $95,000 per year. However, you earn 2X points when traveling and dining out, so depending on how much you spend at restaurants and travel versus other purchases, the breakeven amount may be quite a bit lower.

Nevertheless, if you prefer to avoid an annual fee altogether, the Freedom^® card is the better choice.

Get Started with Chase

Chase Credit Card Comparison:
Freedom or Sapphire?

The choice between the Chase Freedom and Sapphire Preferred cards very much depends on your spending habits and preferences.

If the idea of paying attention to which category earns most rewards per quarter irks you then steer clear of the Freedom^® card.

On the other hand, if you don’t travel or dine out much, the Sapphire Preferred^® card won’t be a great match.

However, if frequent travel, eating out and exploring other countries is right up your alley, the Sapphire Preferred® card is a much better bet. It’s also a better choice if you like the idea of a generous sign-up bonus.

But don’t expect the sky-high 5% cash back rewards on rotating categories that the Freedom^® card offers. You’ll be limited to earn 2x points on travel and dining out with the Sapphire Preferred^® card.

Cardholders who like the idea of cash back versus points will find the Freedom^® card to be more palatable. It’s also a superior choice if you want to avoid the hassle and cost of an annual fee.

Plus, if you are willing to take a little more time to make the most of your reward points opportunities, the Freedom^® card is hard to beat for its 5% cash back offer, albeit up to a limit of $1,500 per quarter.

While each card has its own appeal, the reality is you could even take the plunge and choose both cards. When booking flights, use the Chase Sapphire Preferred^® card, and when buying groceries or filling up gas when the perks are highest, swipe the Freedom^® card so you get the best of both worlds.

Get Started with Chase

Do you know the difference between Chase Freedom and Chase Sapphire Preferred cards? What other perks or bonuses are worth pointing out? Share your suggestions in the comments below.

>> Get 4% Rewards Dining Out With Uber Visa Credit Card

>> Is Discover It® The Best Balance Transfer Card?

>> Is Chase Sapphire Reserve The Best Travel Credit Card?

The article Chase Freedom vs Sapphire Preferred Comparison was originally posted on Investormint

If you’ve got your eye on a new car or boat, and want to earn points or miles from your purchase, a high limit credit card might be just what you need.

Even if you have fair credit or bad credit, and want a little more cushion room to finance day-to-day spending, a credit card with a high limit provides peace of mind that you have reserves available on demand.

The last thing you want is to arrive at the grocery store cashier line only to discover your card has been declined because you hit the spending cap.

The good news is a long list of credit cards with high limits are available. But which ones have the best annual fees, rewards rates, and sign-up bonuses?

Rather than trudge through the weeds trying to figure out which credit card is best, we’ve done the hard work for you.

Best High Limit Credit Card Overall

The Chase Sapphire Reserve℠ credit card might well be the best credit card on the market, period!

Some of the highlights include:

While Chase applies a $450 annual fee each year, the net cost is $150 when you factor in the $300 travel credit.

But the perks don’t stop there.

Based on our research, the credit limit for the Chase Sapphire Reserve℠ card is $100,000.

Depending on your income, credit score, net worth, assets, and other factors considered by Chase, you could theoretically be approved for a credit limit as high as $500,000.

For such high credit limits, you will almost certainly need to earn a $100,000+ salary.

#1 High Limit Credit Card For Travel

If you travel often and want a high credit limit, the Capital One® Venture® Rewards credit card is a top choice.

You will need excellent credit to be approved for the Venture® Rewards card by Capital One®.

Here is a flavor of the mouthwatering rewards you can expect to enjoy:

If you spent $3,000 per month on average on everyday purchases using the Capital One® Venture® Rewards credit card, you would earn 72,000 air miles in 12 months.

Here’s a breakdown of the air miles you could earn based on annual spending.

Over and above these perks, the credit limit on the card is generous too. It is common to start out with a $5,000 → $10,000 credit limit but some cardholders claim to receive as much as a $50,000 credit line.

Credit Card With
High Limit & 0% Balance Transfer

If you are looking to transfer your credit card balance to another card and maintain a high credit limit, the Discover-It® 18 Month Balance Transfer card may be just what you have been looking for.

Compared with other balance transfer cards, the Discover-It® card has perks galore, including:

The bad news is you will be required to pay a 3% fee on balances transferred to the card.

But the silver lining is that, according to our research, a credit limit as high as $20,000 could be obtained.

Top High Limit Credit Card
With No Annual Fee

While luxury cards charge annual fees stretching to hundreds of dollars, it is possible to side-step an annual charge altogether and still enjoy a high credit limit.

The Chase Freedom® credit card won’t sting you with a yearly charge but the benefits don’t stop there.

It’s not all sunshine with the Chase Freedom® card because you will need to pay attention to rotating categories to make the most of the cash back rewards, and when you travel overseas foreign transaction fees will apply.

Nevertheless, if you are looking for a credit card with no annual fee and a high credit limit, this card is hard to beat because the credit limit starts at $3,000 for many users but can stretch as high as $24,000 from our research.

High Limit
Credit Cards For Average Credit

If you have a fair credit rating, the Capital One® Quicksilver One® Cash Rewards card comes top of our list.

The benefits of the card include:

The Capital One® Quicksilver One® Cash Rewards card does come with an annual fee of $39 and a high APR rate, so it is important to make your payments on time.

The flipside is you get to enjoy a high credit limit of $5,000 based on our research.

Which High Credit Limit Card
Is Best For Students?

If you are college bound or already in college, Discover-It® for Students has much to offer.

The primary benefits include:

In addition to pluses like no changes to your APR rate when paying late, the Discover-It® card has a generous limit of $5,000.

Best Credit Card For Bad Credit

If you have bad credit, it’s tough sledding to find a good credit card with a high limit.

A lot of credit cards designed for cardholders with bad credit require a credit check, which in turn can further penalize your credit score.

However, the OpenSky® Secured Visa® credit card is available with no credit check.

Your credit line limit is based on the refundable deposit you pay upfront, and can be as low as $200.

A perk of the card is that, if you currently have no credit score, you will most likely get one within 6 months. The vast majority of people who regularly use the OpenSky® Secured Visa® credit card gain a credit record with either Experian, Equifax, or TransUnion within 6 months.

High Limit Credit Cards At A Glance

Best For	Credit Card	Credit Limit	Get Started
Overall		$100,000	Chase Sapphire Reserve Review
Travel		$50,000	Venture® by Capital One®
0% Balance Transfer		$20,000	Discover-It 18 Month 0% Balance Transfer Review
No Annual Fee		$24,000	Chase Freedom Review
Average Credit		$5,000	QuicksilverOne
Students		$5,000	Discover-It for Students
Bad Credit		Secured Deposit	OpenSky

Have you found other credit cards with high limits? Share your thoughts with us and tell us more.

>> Get 4% Rewards Dining Out With Uber Visa Credit Card

>> Is Discover It® The Best Balance Transfer Card?

>> Is Chase Sapphire Reserve The Best Travel Credit Card?

The article 7 Best High Limit Credit Cards was originally posted on Investormint

When you are job hunting, paying your bills can be a struggle. Without a nest-egg to dip into or a trust fund to pay your way, a credit card is an obvious choice. But can you get a credit card without a job?

It turns out that credit card companies are not so worried about whether you are employed as they are concerned about your income and debt levels. The good news is that means you can get a credit card even if you don’t have a paid position.

So how do you boost your chances of getting a credit card with no job or income?

How To Get A Credit Card
Without A Job

When you apply for a credit card you will be asked to state your total annual income. Even if you don’t earn a fixed salary, you can legitimately claim income from other sources.

When you add up all your income streams, you might be surprised to find you have money from many areas, including:

• Dividend income from stocks
• Interest on savings and bonds
• Social security income
• Alimony income

Even if you have no job, you are permitted to state income to which you have reasonable access. For example, married couples with a joint bank account could reasonably list the income of a partner.

That means even if you don’t have a job or any income, you could still be approved for a credit card. However, income is not the only criterion banks use to evaluate your creditworthiness and set credit limits.

The amount of debt you are saddled with is a key factor used during the approval process too. And here’s what you need to know about how debt relates to the likelihood of being approved for a credit card.

No Job, No Problem –
But Do You Have Too Much Debt?

Credit card issuers care about your income but they also emphasize how much debt you owe when evaluating your creditworthiness.

An applicant with $100,000 of debt may have no problem receiving approval if they have income of $1,000,000. But an applicant with no income and the same amount of debt could struggle to get a credit card.

A key ratio credit card companies use to make approval decisions is the debt-to-income ratio of an applicant. For example, if your mortgage debt payments are $2,500 per month but your income is $1,000 per month, your debt-to-income ratio is 2.5.

If you are struggling to keep up with interest payments on student loans, personal loans, auto loans, or other credit card debt, a 0% Balance Transfer card may be able to to ease the financial strains, at least for a limited time.

Discover-It® and Chase Freedom both offer credit cards that could help you lower your interest rates to zero for a certain time period. If you are in job-seeking mode and need to batten down the hatches on monthly expenses, these cards may just fit the bill.

Get A Credit Card With
No Job Using A Co-Signer

If you have no job, you are still eligible to apply for a credit card and may boost your chances of approval by adding a co-signer to the application.

Applying for a credit card with someone else can be a double-edged sword. On the one hand, you benefit by being able to cite their income. On the other hand, you run the risk of not receiving an approval if they have poor credit.

Before asking a friend or loved one to become a co-signer, have a direct conversation with them to better understand their creditworthiness.

Equally, they will need to trust that you will pay your credit card bills on time and not ratchet up a lot of credit card debt because they are on the hook if you can’t pay.

Become An Authorized User
On A Credit Card

Another option is to become an authorized user which gives you the right to use someone else’s credit card.

If Auntie Mary kindly adds you as an authorized user to her Chase Sapphire Reserve credit card, you are permitted to swipe it to buy things but you are legally free from the obligation to make payments.

While parents may commonly add children who are in college as authorized users, it is a big request of a loved one to add you when you have no job because they take on all the responsibility of paying the bills and need to trust you won’t pile on credit card debt by jetting off on first class flights to Bermuda and the Maldives for beach vacations!

Need Money?
Consider A Personal Loan

If you have no job and are considering applying for a credit card, a personal loan may be a good alternative to credit card debt.

Borrowers with excellent credit scores could look to SoFi personal loans as an option.

Another possibility is to visit your local credit union to enquire what personal loans they offer. You cannot find personal loans from Chase or many other big banks, so a credit union may well be your best bet.

Got Savings?
Apply For A Secured Credit Card

If you lack the income to qualify for a regular credit card, a secured credit card could be a solid alternative provided you have some savings.

Secured credit cards require you to deposit money which in turn acts as your credit limit.

It is a way to build up your credit score by making timely payments until you are eligible to be approved for a regular credit card.

However, you must make those payments otherwise the upfront deposit will be used and may ultimately be forfeited if needed to pay the bills.

Secured credit cards are a way for credit card providers to take little to no risk while offering you a way to boost your credit score.

If you are struggling to receive approval because you have no job or poor credit, start by visiting MyFICO to understand what steps you can take to improve your creditworthiness.

Paying your balances in full and your bills on time goes along way towards boosting your credit score.

Are you clear about how to get a credit card when unemployed? Let us know if you have found other creative ways to pay your bills without having a job.

>> American Express Gold Card Review

>> Why Was My Credit Card Declined?

>> Is Chase Sapphire Reserve The Best Travel Credit Card?

The article Can You Get A Credit Card Without A Job? was originally posted on Investormint

Can you buy a house with a credit card? The short answer is yes, you can.

But there are a lot of things in life you can do which are not good ideas, and this is probably one of them.

It’s tempting to buy a house with a credit card when you think of all the points or miles you could earn as part of a rewards or loyalty program.

And it also provides a way to get around the hassle of filling out forms when applying for a traditional mortgage.

But the costs of buying a home using a credit card could hurt your wallet much more than you think and offset any cash back, miles, or points benefits.

Here’s why…

The Cost Of Buying A House With A Credit Card

Buying a home with a credit card isn’t as simple as swiping a card at a grocery store checkout.

You will need to show evidence that you can afford a home downpayment when working with a title company during a home purchase.

That means you will need a cash advance from your credit card.

But cash advances are among the mostly costly financing options. Fees of up to 5% are applied to cash advances, meaning that you could pay as much as $2,500 extra if you needed to show proof of $50,000.

No matter what credit card you look at on the market, you won’t find one that offers special rewards for home purchases.

Even if you could earn 1% and transfer your points to a rewards program to get double the points, you would still end up in the red.

But wait there’s more…

Is It A Good Idea To Buy A House With A Credit Card?

Let’s say you found a great home on Roofstock and you also have a sufficiently high credit limit to put the purchase on your credit card.

The problem is your credit limit is most likely higher than your cash advance limit, which is needed to make the purchase.

Plus, you will start paying interest from the day the cash is borrowed, and it will compound daily.

Worse still, the interest paid on cash advances tends to be higher than the interest rates applied to purchases.

In fact, even if you wanted to use your credit card to make a downpayment, you would run into a brick wall because using debt to finance a downpayment is not permitted.

Creative Financing Options For Home Buyers

If you are considering a credit card to make a home purchase, other creative financing options may be more suitable.

Seller Financing

When the home seller becomes the lender, you get to avoid traditional lenders altogether.

Instead of paying the monthly mortgage due to your bank, you would deposit funds into the seller’s bank account.

Usually, you will need to agree terms with the homeowner ahead of time like the repayment schedule, interest rate, and the fallout from a default.

FHA Loan

If you don’t qualify for a conventional mortgage, an FHA loan may be an option.

The Federal Housing Administration (FHA) underwrites loans to borrowers who otherwise may not be approved by a traditional lender.

Many traditional lenders offer FHA-backed loans but keep in mind that you will need to pay a 1.75% insurance premium upfront.

Private Mortgage

A private mortgage won’t be an option for everyone but if you have a deep-pocketed friend who is willing to get you on the property ladder, it is one of the best creative financing options for homebuyers.

By loaning you money, the lender may be able to earn a better return on their savings than is available from a traditional bank savings account or certificate of deposit.

And by borrowing from them, you may be able to secure a mortgage at a lower interest rate than what a conventional bank or credit union charges.

To avoid any sticky situations later on in the event of delinquency or default, set out the terms and conditions of the loan ahead of time.

Dip Into Your Retirement Accounts Without Penalty

Normally, you cannot withdraw money from your retirement accounts, like your 401(k) or IRA, until you reach retirement age. Early withdrawals are usually subject to a 10% penalty fee.

But when you are buying a home for the first time as an individual or married couple, you can dip into your IRA to the tune of $10,000 or $20,000 respectively without penalty.

You will need to act fast if you go down this path because the funds you withdraw need to be applied to a home purchase within 120 days of withdrawal or else penalty charges apply.

If you don’t have an IRA but have a 401(k) instead, you can tap into as much as 50% of it, up to a maximum $50,000. But you will need to return the funds to your 401(k) within 5 years or the 10% penalty charge will apply.

Think of borrowing from your 401(k) as an interest-free loan for five years. Unlike an IRA where you can make a penalty-free permanent withdrawal, you must pay back the amount to your 401(k).

Buy An Option To Purchase A Home

Sometimes it makes more sense to postpone the purchase of a home until can afford the downpayment. But what if you are renting a place that you love and want to own it one day?

A creative option for homebuyers in this situation is to propose a “call option” to the homeowner.

The way it works is you “buy a call option” which gives you the right to buy the home at a fixed price by a certain date.

Let’s say you plan to buy the home within the next couple of years, you could propose a deal whereby you pay 2% of the value of the home today and, in exchange, have the exclusive right to buy the home for a fixed price within the next 24 months.

If you decide to buy the home during that time period, your deposit would be credited towards the home purchase.

Of course, if you renege on the deal, the current homeowner keeps the 2% deposit, which you would forfeit.

Boost Your Credit Score

To avoid buying a home with a credit card or other creative financing options, explore what credit score you would need to get more favorable rates from traditional lenders.

You can visit MyFICO to request a free credit report. Or alternatively, many budgeting apps, like Status Money and Mint, make it easy to access your credit score free of charge.

If your credit score is suffering, check out whether some easy-to-fix issues, like errors on your credit report, are to blame. These can usually be resolved by contacting any of the major credit reporting bureaus: Equifax, TransUnion, or Experian.

Another common cause for a low credit score is too much credit card debt. If you are struggling financially to keep up with credit card payments, consider a 0% Balance Transfer credit card.

Low-balance transfer cards provide a grace period, sometimes as long as 18 months, whereby you pay no interest.

During the period, you won’t benefit from traditional credit card perks, like cash back, points, or miles, but you do buy yourself a runway of time to get into a better financial situation.

The other catch of balance transfer cards is they usually sting you with a fee to move your money, but often this is a lot less than what you would pay in interest charges on your current card, especially if the interest rate is at the high end of the range.

The Bottom Line

Should you buy a home with a credit card? The bottom line is technically you can buy a house with a credit card but the fees you pay for a cash advance may be prohibitively high, so it is usually a better idea to secure a traditional mortgage.

Not sure where to turn? Try out local credit unions, which often have favorable rates, or private lenders like SoFi, who offer mortgages as well as student loans and personal loans.

If you find none of those to be a fit, a creative financing approach to buying a home may be worth exploring as well as big name banks when you have established a good credit score.

Disclosure: Information related to credit cards has been collected by Investormint and has not been reviewed or provided by the issuer of this card.

The article Can You Buy A House With A Credit Card? was originally posted on Investormint

Unlike that time you put your fingers into the cookie jar and got a slap on the wrist as a youngster, lying to credit card companies can lead to bad outcomes because it is 100% illegal.

Here’s what you need to know before you are tempted to fudge the numbers…

Are You Tempted to Lie About Income Earned?

Lying on credit card application income forms is tempting.

Boost your salary a smidge and a credit card company may offer you more credit.

Round down those student loans, auto loans, home loans, or personal loans and you could get access to even more spending power.

With a higher credit limit, you could buy that brand new Cartier watch or Louboutin shoes.

It doesn’t take much for the mind to drift off to a dreamy world of new, luxury goods.

Heck, if you get approved for enough credit, you might even be able to swipe your card and drive away in a new BMW – no more Ubers!

But before plunging head first into the deep waters of credit card debt, step back for a moment and consider the consequences of lowering your actual cost of rent or increasing your true salary on credit card application forms.

Why You Should Not Lie On Credit Card Applications

Sure, it’s tempting to inflate your income a bit to nudge the odds in your favor of getting approved for more credit. But the risks of lying on credit card application forms are grave.

Worst case, you could be slapped with a $1,000,000 penalty for lying on credit card application forms and be sentenced to 30 years in prison.

Credit card companies view lying as outright fraud and take it very seriously.

The reason is obvious. If you are not approved for a higher amount, it is because you most likely cannot afford the compounding costs of credit card interest.

Credit card issuers run calculations to assess the statistical likelihood that customers will pay them back.

When an application is denied, it is because the credit card company crunched the numbers and assessed the risk of delinquency or default to be too high.

> Related: Find Out Your FICO Score

By attempting to skirt the rules, you take on a great deal of risk. You are essentially betting that you are the rare customer who can defy the odds.

Much like the majority of people who think they are a “better-than-average” driver, so too most people may believe that they will be the customer for whom the rules of statistical analysis don’t apply.

But the laws of mathematics are likely to catch up with you if you run the gauntlet of misreporting financial data, so the best advice is to stay honest and jot down accurate figures.

If you earn $80,000 per year and report $83,000 it’s probably not going to have a big impact one way or the other (but you still shouldn’t do it!). However, if you earn $22,000 annually and report income of $83,000 annually, you are asking for trouble.

The Power of Credit Card Companies

Even if you understand the penalties associated with credit card application fraud and are still tempted, consider this…

When you apply for loans or credit cards, banks and providers have every right to ask for documentary evidence to support your income and debt claims.

If you think you can submit salary levels and debt amounts at will because you think those numbers will never be checked, you may be right.

But you may be wrong!

All it takes is for your bank or credit card provider to demand actual bank statements or loan statements for you to be exposed.

And that’s when the proverbial house could come crashing down because once you’ve been found out the dominoes could fall.

In the past, applicants who have been caught lying have been subjected to stiff penalties so there is no reason to think you could escape the long arm of the law.

Even if you get past the application stage and think you are free and clear, creditors can examine your financial situation at any time.

Over time the risks increase and the likelihood of getting away scot-free diminishes.

Worst case if you had to declare bankruptcy, you could still be exposed when legal representatives compare your tax filings with income claims and spot mis-matches.

The bottom line is the risks are simply not worth the rewards.

How To Increase Your Credit Card Limit

If you are tempted to lie on credit card application forms, it’s probably because you want to boost your credit card limit.

To do so legally without resorting to false statements, strive to increase your credit score.

If you have a fair credit score or bad credit, the odds are against you receiving approval for a high credit limit.

To be approved for high-end cards like the Chase Sapphire Reserve℠ card, you will generally need good → excellent credit.

The best strategy to boost your credit score and ultimately gain access to more credit is to demonstrate financial responsibility to creditors.

Pay your balances off each month if you can afford to do so. Make timely payments when bills are due. And be careful of how much credit you use.

When you use more than 30% of your credit limit, you risk being penalized with a lower credit score. High credit utilization is viewed dimly because it suggests that you may be struggling financially to keep your head above water.

Stick to the basics of financial responsibility and you stand a better chance of receiving approval for a higher credit card limit the legal way.

Have your ever been tempted to lie on a credit card application income form? What did you decide to to? We would love to hear from you.

>> Capital One Spark® Business Cash Back Card

>> Is Discover It® The Best Balance Transfer Card?

>> Is Chase Sapphire Reserve The Best Travel Credit Card?

The article Worried About Lying On Credit Card Application Forms? was originally posted on Investormint

When you carry a credit card balance, you will be charged an interest rate by your credit card company. The interest rate is called the APR or annual percentage yield. But how do you know what is a good APR for a credit card?

Credit card APR rates usually fall into a range that can be as low as 0% or as high as 29.99%.

A rule of thumb is the lower your credit score, the higher your credit card APR rate. And conversely, the higher your credit score, the lower your credit card APR rate.

Other factors like your credit card balance, income, and other debt may affect your APR rate too.

Of course, if you pay off your credit card balance each month in full, APR rates don’t apply. And because APR rates can be steep, especially if you have bad credit, the best money-saving approach is to pay off your credit card balance in full every month.

What is a Good APR?

The answer to the question “what is a good APR?” varies depending on factors like the current interest rate environment, your creditworthiness, and the type of credit card you have.

Interest Rate Environment

After the stock market crash of 2008-9, the Prime Rate to which credit card interest rates are tied was very low.

A good APR rate for a credit card in the following decade was under 13%, which was close to the average APR charged to cardholders according to official statistics.

But if you were to ask credit cardholders the same question in the 1980s when interest rates were much higher, they would have told you a good APR for a credit card was north of 20% because the Prime Rate was so much higher.

So the takeaway is when a Fed rate hike takes place, APR rates tend to increase.

Creditworthiness

The APR rate you will be charged also depends on how much risk you pose in the eyes of the credit card company.

Your credit card issuer tries to assess how likely it is that you will default on your credit card debt.

If you have bad credit, a good APR rate may be north of 20%.

On the other hand, if your credit is excellent, a good APR rate may be as low as 11%. Some credit unions even provide APR rates under 10%.

Check out the table below to see how creditworthy you are:

If you are not sure what your credit score is, visit MyFICO to request a free credit report.

Average Credit Card APR Rates

Good APR rates also vary by the type of credit card you are selecting.

When you choose a credit card with generous cash or miles rewards, you may be stung with higher APR rates.

On the other hand, balance transfer cards, such as the Discover It – 18 Month Balance Transfer Offer may have lower APR rates because they usually have few other perks.

The type of credit card you have will affect the APR rate. For example, business credit cards generally have much lower average APR rates than student credit cards or cash back credit cards.

A breakdown of average APR rates by credit card type is shown below:

Business credit cards enjoy the lowest average APR rate because they are perceived to be less risky.

Cash back credit cards are penalized most when it comes to APR rates because if you are using your credit card for a cash advance, it may signal that you have been unsuccessful in borrowing elsewhere or need money in a hurry.

How To Get A Good APR Rate

A good credit score is one of the most important factors to help you get a good APR.

If you are not sure what your current credit score is, you can request a copy of your credit report from MyFICO.

Paying off your credit card balance in full each month goes a long way towards building your credit score and qualifying for lower interest rates not just on credit cards but on other debt too, such as student loans and mortgages.

Credit Card Utilization

The amount of available credit you use each month is called your credit card utilization.

Credit card companies use this metric to evaluate how much risk you pose.

If you are maxing out your credit each month, it may highlight that you are hitting your financial limits.

Ideally, keep your credit card utilization below 35% each month to show your credit card issuer that you are living within your means.

Credit Report Errors

An easy way to boost your credit score is to remove errors from your credit report.

You can report inaccuracies to the three major credit reporting bureaus, Equifax, Transunion, and Experian.

A late payment that has been incorrectly reported or incorrect account information may be hurting your score but the good news is both can be easily fixed.

Get Credit Where Credit Is Due

You may not be getting the credit you deserve from timely bill payments you are currently making.

For example, many landlords do not report on-time rent checks to credit bureaus.

Companies like RentTrack and Rental Kharma solve this problem by reporting your payments so that you can build your credit without having to take on any debt or even take out a credit card.

Limit Credit Inquiries

Credit report inquiries won’t necessarily hurt you. Credit card companies and lenders know that consumers shop around for the best rates so if you make a few inquiries within a 30 day period you will usually not be penalized.

However, a large number of inquiries over a 12 month period can penalize your credit score.

The rule of thumb is to make fewer than five inquiries that result in hard credit checks over any twelve month period.

Don’t worry about soft credit checks. These won’t affect your credit score and are usually performed as part of background checks or to see if you qualify for a credit card.

Normal APR vs Penalty APR

If you ever missed a payment to your credit card company, you may be charged a penalty APR rate. But what is a penalty APR?

A penalty APR rate is a higher interest rate charge that is applied to your credit card balance which takes effect when you are more than 60 days delinquent in making a minimum payment.

Penalty APR rates can be as much as twice the level of normal APR rates. And the kicker is they are not easy to remove.

Your credit card company will take a dim view of you missing a minimum balance payment over a 60 day period. It effectively means you didn’t pay them even the minimum amount in two consecutive periods, so it suggests that you are financially struggling.

If you missed payments because you were ill or for some medical condition that rendered you unable to make payments, call your credit card issuer and explain the situation. They may be willing to reinstate the normal APR rate.

What is a
Good Credit Card APR Rate:
The Bottom Line

A good credit card APR rate will depend on the type of credit card you hold, your creditworthiness, and the interest rate environment.

Cash back credit cards and student credit card typically suffer from the highest average APR rates compared to travel reward credit cards and business credit cards.

Cardholders with bad credit will often be hit with APR rates north of 20% unless they choose a balance transfer card, which features a grace period of low or no-interest rate charges.

If you have excellent credit, you could enjoy APR rates in the low teens or even under 10% from some credit unions.

During high interest rate environments, APR rates for all credit cards tend to rise because they are all tied to the Prime Rate.

The best way to enjoy lower APR rates is to make regular payments, and at the very least, pay off your minimum balance each month.

Ideally, spend less than your credit limit too in order to keep your credit utilization rate low.

And if you believe you are paying high APR rates unnecessarily, double check with the main credit bureaus, Experian, Equifax, or TransUnion, to ensure no errors feature on your credit report.

Do you have a better handle now on what is a good APR rate for a credit card? Let us know what other factors have affected the APR rates you pay. We would love to hear from you.

>> Is Discover It® The Best Balance Transfer Card?

>> Get 4% Rewards Dining Out With Uber Visa Credit Card

>> Is Chase Sapphire Reserve The Best Travel Credit Card?

The article What Is A Good APR For A Credit Card? was originally posted on Investormint

It doesn’t take much to fall behind on credit card payments, but do you know how interest charges are calculated when you are in the red?

If you have ever wondered how does credit card interest work, you might be surprised by what you discover!

In this article, we will show you how you can calculate interest charges on your monthly credit card statements in order to make better financial decisions.

How Do Interest Rates On
Credit Cards Work?

When you make purchases on your credit card, an APR (Annual Percentage Rate) may be applied to balances that are not paid off in time.

The APR can seem misleading because most consumers focus on a yearly time frame.

For example, a consumer might think that a 20% APR applied to a $10,000 credit card debt balance would cost them $2,000 over a 12 month period.

But it’s not that simple!

Credit card companies convert APR rates to daily percentage rates. So a 20% APR actually converts to a daily percentage rate of 0.05479%.

It may seem odd that they would do this until you dig a little deeper and discover that card issuers will multiply your current credit card balance by the daily percentage rate to arrive at a daily interest charge.

The daily interest charge is then added to your credit card balance the next day.

If you ever wondered why it is so hard to figure out how to pay off credit card debt, a big reason is the power of compounding is working against you.

How To Calculate Interest
On A Credit Card?

The power of compounding means you end up paying a lot more in interest charges than you might expect.

And it takes a lot longer to pay off credit card debt than you may intuitively think.

For example, imagine you had $10,000 of credit card debt at an APR of 20% and decided to pay $500 each month, how long would it take to get out of credit card debt?

The total interest charges over the 25 month time period would be $2,266.

So why does it cost more than you think?

The answer lies in how that pesky daily percentage rate works.

With a balance of $10,000 and a daily percentage rate of 0.05479%, the interest charge of $54.79 is added to your principal balance the next day.

The same process continues each day until the end of the monthly billing cycle.

So on day 2, you will be charged 0.05479% on $10,054.79.

You can quickly see how the power of compounding works against you because the daily percentage rate is continually charged on an ever growing principal balance!

Left unchecked, compound interest can cause credit card debt to spiral out of control. In fact, Einstein is said have stated:

How To Avoid Paying Interest
On A Credit Card

Generally, your credit card company will not charge you interest on purchases when you pay your balance in full by the billing due date.

The period when no interest is applied is called a grace period, and it typically lasts for 21 days.

But keep in mind that the grace period can be forfeited by not paying your bill on time.

If you are struggling to keep up with your credit card payments, you may wish to consider some form of credit card debt relief.

Balance transfer cards are among the most popular ways to defer interest charges.

However, you will typically stop earning rewards points, cash, and miles bonuses when you move your balance to a lower interest rate balance transfer card.

So how do balance transfer cards work?

How Do Balance Transfer
Credit Cards Work?

When you choose a balance transfer credit card, your balance switches from your current card to a lower interest rate card.

Many of the best balance transfer cards, such as the Discover It – 18 Month Balance Transfer card, offer 0% interest introductory offers.

Once you make the switch, your interest rate charges are placed on hold.

However, a fee in the range of 3% → 5% will be applied when you make the switch.

So, on a $10,000 balance the fee could range between $300 → $500.

And while that is a hefty price to pay, it can work out to be quite a bit cheaper than paying high interest charges over a long time period.

Like many of the best balance transfer credit cards, Discover and Chase offer generous time periods when interest rates are low.

Lastly, you will need a good credit score to qualify for a balance transfer. If you are not sure how good your credit is, MyFICO can help you out.

What Other Factors Affect
Credit Card Interest Rates?

Always review your cardmember agreement terms for specifics about which factors affect your credit card interest rates.

Penalty Interest Rate

A common cause for higher interest charges is failure to pay on time.

This usually triggers a penalty interest rate that can be avoided by setting up automatic bill payments.

Generally, the penalty interest rate applies when you are more than 60 days late. It is typically the highest APR rate that the credit card issuer can apply.

Credit Score

Credit card issuers usually reward customers with excellent credit scores (750 or higher) by providing lower APR rates because they are considered lower risk.

If your credit score is fair (between 550 and 699), you may be categorized as having higher risk and be charged a higher rate as a result.

Fed Rate Hikes

Even if you don’t do anything wrong, your interest rate can increase.

When a Fed rate hike takes place, variable interest rate charges generally increase too.

Credit card issuers alter variable interest rate charges based on the Prime Rate, which is 3% higher than the Federal Funds Rate controlled by the Federal Reserve.

How Credit Card Interest Works:
The Bottom Line

The best way to avoid high credit card interest is to pay off your balance in full each month. But when you fall behind on credit card payments, you may be charged higher interest rates.

Interest charges compound over time, so where possible set up an automatic bill payment plan.

If you are late in paying your bill, a penalty interest rate usually kicks in after 60 days. This is often the highest APR rate applied by the credit card issuer.

You can defer high interest rate charges by moving your balance to a 0% balance transfer card, especially if you have a good credit score.

If your credit score is fair to poor, strive to make full payments consecutively. Generally, if you can make a handful or more in a row, you may be rewarded with a lower rate.

Are you clear about how credit card interest is calculated? Share your tips about the best way to pay off credit card debt. 

>> Is Chase Sapphire Reserve The Best Travel Credit Card?

>> American Express Gold Card Review

>> Why Was My Credit Card Declined?

The article How Does Credit Card Interest Work? was originally posted on Investormint

Can you pay off one credit card with another credit card? The short answer is you cannot directly do so.

But don’t despair because we will reveal some creative ways that may help you out of a cash bind.

Whether your cash is in short supply or you want to avoid paying higher interest rates on your current credit card, 0% balance transfer credit cards and cash advances are two ways to save money.

So how do they work?

Pay Off A Credit Card Via Cash Advance

Usually you cannot directly pay off a credit card with another credit card which means you need to get creative.

If you are short of cash to pay off your balance, a cash advance is an alternative financing method.

How To Use A Cash Advance To Pay Off Credit Card Debt

Here is the 3 step process to using a cash advance to pay off your credit card:

1. Using your other credit card, take out a cash advance at an ATM
2. Deposit your cash into a checking account
3. Pay off your existing credit card balance with the cash in your checking account

Costs Of Using Cash Advance To Pay Off Credit Card Debt

Paying off a credit card using a cash advance is an expensive way to clear your credit card balance.

The interest rate charged when making purchases is usually lower than the interest rate for cash advances so it could be an expensive source of financing.

Plus, you will usually pay fees that can stretch as high as 5% for the privilege of a cash advance.

So, if a cash advance is a costly way to pay off your credit card balance, what other methods can you choose?

Use A Balance Transfer Credit Card

If you feel like there is no light at the end of the tunnel when it comes to paying off your credit card balance, hang tight!

Lots of people struggle to keep up with monthly payments, especially when interest charges are tacked on.

But fear not, Balance Transfer cards can be the answer to your prayers when you run into cash flow difficulties.

Even if you simply want free or low-cost financing to make a large purchase, low-interest or no-interest balance transfer credit cards can be a compelling option.

How To Use A Balance Transfer Card To Pay Off Credit Card Debt

To lower your interest rate, consider transferring a balance on one credit card to another credit card that specializes in balance transfers.

Balance transfer credit cards usually charge lower interest rates for an introductory time period and the best balance transfer cards frequently advertise 0% interest rate promotions.

For example, the Discover It®  – 18 Month Balance Transfer Offer card is about as good as any card if you want to chop your interest rate charges significantly.

You pay 0% on balance transfers for 18 months and 0% on purchases for 6 months.

Costs Of Using Balance Transfer Cards To Pay Off Credit Card Debt

When you need some extra runway to pay your credit card bills, balance transfer cards can extend the timeline before payments are due but they have some “gotchas” you need to know about before making the switch.

Balance transfer fees can range from between 3% → 5% which can add up to a hefty sum, especially on large balances.

For example, if you transferred a $15,000 balance from an existing card to a 0% balance transfer card, you may pay between $450 → $750 in fees.

Still, those fees may be a good deal less than the total interest charges you would pay by sticking with your current card.

You’ll need to run the calculation for your own situation to see if it’s a good deal.

Another gotcha to know before transferring your credit card balance is that you will usually stop earning cash back, points or miles rewards.

The benefit of a low-interest or 0% balance transfer card is that you defer interest charges but there is no free lunch unfortunately. The price you pay is no more rewards.

Balance Transfer Credit Card Tips

• Check out the interest rate you will be charged after the grace period. In some cases, it may be higher than your original rate.
• Make sure not to miss a payment because it can trigger higher rate charges immediately.

Cash In Your Rewards Points

Credit card reward programs usually feature an option to cash in the points you have earned.

All you need to do is select the cash back option and voila, your cash crunch may be somewhat alleviated if you had previously built up a stack of points.

If you are a Chase cardholder, for example, you can apply your points to pay your bill directly in the Chase Ultimate Rewards® portal.

Some other credit card programs will credit your checking account with cash rewards, which you can then apply to your credit card balance.

Like the cash advance method, cashing in points to pay your bill can involve a few steps but the upside is you don’t pay fees and your interest rates won’t increase after a set period.

Boost Your Cash Savings

If you are struggling to pay off your credit card, a cash advance, balance transfer card, or point redemption may be a short term fix.

Nevertheless, it doesn’t hurt to cast an eye over your financial situation to uncover whether you might be spending more than you earn.

You may discover that a spike in spending from a vacation or buying presents for loved ones is the cause or you may find a pattern of impulse buying.

No matter what caused your cash crunch, the good news is there are lots of great budgeting tools to help you improve your financial situation.

• Personal Capital has one of the best free mobile apps to track spending, income, net worth, and even investments.
• Acorns is a microsavings app that deposits small amounts frequently into a savings account in order to build up your nest-egg over time and the best part is you hardly notice them because the amounts are small.

If you are not sure where you sit financially, another great tool is Status Money.

Status compares your income, spending, and net worth to national averages, peers, and even people who live in the same area as you.

You can quickly gain insights into whether you are paying more than you should in interest charges or even utility bills.

If your credit card charges are higher than average, you will quickly spot areas to save money too.

The bottom line is you should calculate your income and spending to ensure your are able to squirrel away some savings each month. And where possible, look to the future when predictable spending spikes are likely to occur so you can build up a cash cushion ahead of time.

Do you know of other ways to pay a credit card with another credit card? Share your ideas below, we would love to hear from you.

>> Is Chase Sapphire Reserve The Best Travel Credit Card?

>> Is Discover It® The Best Balance Transfer Card?

>> Get 4% Rewards Dining Out With Uber Visa Credit Card

The article Can You Pay A Credit Card With A Credit Card? was originally posted on Investormint

Capital One Savor℠ Card Review: Do you eat out often? Do you love earning generous rewards when dining? If so, the Capital One Savor℠ card might be right for you.

What makes the credit card so appealing is not only the generous 3% rewards on dining but also its $0 annual fee.

To get access to similar rewards elsewhere, you often need to pay a hefty annual fee. Luxury cards like Chase Sapphire Reserve℠ offer similar dining rewards but you’ll need to pay hundreds of dollars each year for it.

If you want to avoid an annual fee yet still earn generous rewards when dining plus receive a $150 sign-up bonus, keep reading because the Capital One Savor℠ card is a compelling choice.

Capital One Savor Card Spotlight

CAPITAL ONE SAVOR CARD SPOTLIGHT
InvestorMint Rating 1 2 3 4 5 4.5 out of 5 stars	Dining: 3% cash back Sign-on bonus: $150 (after spending $500 in first 3 months) Annual Fee: $0 Get Started via Capital One secure site

Why Choose
The Capital One Savor Card

The Capital One Savor℠ credit card is an unlimited cash rewards card designed for cardholders with good → excellent credit.

Unlike other cards that lump in rewards for dining purchases among the other benefits, Capital One makes dining its flagship attraction.

If you hit up your local Chinese take-out, pizza shop, Thai restaurant, hamburger joint, or local eateries regularly, you will get the most out of the card.

But you don’t have to be dining out all the time to enjoy the benefits. In addition to 3% unlimited cash back on dining, you earn 2% on groceries and 1% on all other purchases.

And unlike fee-based cards, you don’t have to spend a minimum amount to breakeven.

Instead, you’ll be earning cash rewards that put you in the black right from the get-go. So, if you are not a big-spender, Savor® from Capital One® is a great alternative to the fee-based luxury cards with similar perks.

Hate Rotating Categories? Love Capital One Savor℠

Rotating spending categories are a pet peeve for a lot of credit card users.

It can be a nuisance trying to remember which spending categories earn maximum rewards when they change every few months.

If the idea of jotting down a calendar note to remind you which spending category pays most rewards is off-putting, Savor® from Capital One® is a good choice because it doesn’t feature rotating categories.

No Limits, No Expirations

Another pesky annoyance for some cardholders is finding out that rewards are capped after a certain amount of spending.

By contrast, the Capital One Savor℠ credit card does not limit how much you can earn.

Neither does it impose an expiry date on rewards. For the life of your account, the rewards you earn do not expire.

Capital One Savor℠
Credit Card Top Benefits?

Capital One Savor℠
Credit Card APR Rates

Purchase Rate

For the first 9 months, the APR rate is 0% on purchases.

Thereafter, the APR rate is variable between 15.74% → 24.49%.

Balance Transfers

A 0% intro APR rate for the first 9 months after sign-up is also provided on balance transfers.

However, a 3% fee is still applied to balance transfers during this period, so make sure to calculate the full cost on any balance you hold before switching.

The APR rate after 9 months increases from 0% to between 15.74% and 24.49%.

Other Capital One Savor℠
Credit Card Benefits

Review: Capital One Savor℠
Credit Card Alternatives

As good as the Capital One Savor℠ card is for foodies who eat out often, it has some stiff competition.

The Uber Visa Credit Card offers a whopping 4% rewards rate on restaurants as well as Uber EATS purchases.

Although you may know Uber best as a service that picks you up and drops you off on-demand, Uber EATS is its food delivery service. With a few clicks on the Uber EATS app, you can order food from your phone.

And to encourage users to order from its app, Uber provides a very high rewards rate.

Like the Capital One Savor℠ card, it also has no fee but there are redemption restrictions you can check out in this Uber Visa Credit Card review.

By contrast, the Capital One card has no such minimum redemption requirements.

Capital One Savor Card Review:
Pros and Cons

Capital One Savor Card FAQ

Does the Capital One Savor℠ credit card include fraud coverage?

You are covered by $0 fraud liability if your card is ever lost or stolen.

What day of the month do I have to pay off my balance?

You can choose your own monthly due date and payment method without incurring any fee.

Is an Autopay feature provided?

When you set up Autopay, your payments are made automatically each month.

What methods of payment are supported beyond swipe and chip-and-pin?

Tapping your card against a contactless card reader lets you pay without swiping or inserting via chip-and-pin method.

Capital One Savor Card Review:
Summary

The Capital One Savor℠ credit card is ideal for food lovers and even coffee fans.

It provides cardholders with 3% unlimited cash rewards when spending on restaurants, eateries, fast-food joints, coffee shops, and even bars and nightclubs.

Even if you don’t hit up your local fancy restaurant often but instead make your own food at home, you are decently rewarded when using your card to purchase groceries, earning 2%.

Although other cards may be better for travel, the Capital One Savor℠ card still has some benefits when abroad like $0 foreign transaction fees.

And while the card is not specifically designed for people seeking 0% balance transfers, it still has a generous 9 month intro 0% interest on balance transfers and a 9 month 0% APR rate on purchases. However, a 3% fee applies to balance transfers, even during the introductory period.

Best of all, the Capital One Savor℠ card has no annual fee, rewards never expire, and no limit to how much you can earn in rewards.

The bottom line is if you dine out often and want a credit card with generous rewards that won’t hit you with an annual fee, the Capital One Savor℠ card is a great choice.

Open a Capital One Savor Credit Card Account

Disclosure: Information related to the Capital One Savor℠ card has been collected by Investormint and has not been reviewed or provided by the issuer of this card.

The article Capital One Savor Credit Card Review – 3% Dining Rewards, No Fee! was originally posted on Investormint

Growing a business has enough challenges so when it comes to choosing a bank, low fees, great rewards, few restrictions, and flexibility are high priorities.

Capital One Spark® Business is designed for small businesses looking for the best business checking and business savings accounts combined with an excellent credit card, and even an optional 401k plan.

The Capital One Spark® Business Checking account features no monthly transaction limits while the Spark® Savings account has one of the industry’s most generous savings rates.

Plus, Spark® Credit Cards offer double the standard industry rewards rate so you can double your cash or miles.

If you want to enjoy more benefits from your business credit card and save more on cash balances without compromising on convenience, Capital One Spark® Business is hard to beat.

Capital One Spark® Business
Reviews Spotlight

CAPITAL ONE SPARK® BUSINESS SPOTLIGHT
InvestorMint Rating 1 2 3 4 5 4.5 out of 5 stars	Unlimited Cash Back: 2% Cash Bonus: $500 Foreign Transaction Fees: None Get Started via Capital One Spark® Business secure site

Capital One Spark® Business
Checking

Capital One Spark® Business has a “your business comes first” philosophy that will feel refreshing if you have been on the hunt, but come up short so far, for a bank that does it all.

Where many other banks will nickel and dime you when you exceed transaction limits or fail to meet minimum balance requirements, Capital One Spark® Business Checking does away with all those nuisances. You won’t get hit with monthly fees either.

And the benefits are plentiful.

Not only do you enjoy day-to-day conveniences like a free debit card, next-day availability of deposits, and 39,000 fee-free ATMs nationwide, but you also get a host of benefits to help you run your business like free online bill pay and free electronic invoicing.

Capital One Spark® Business
Checking Benefits

Open a Capital One Spark® Business Account

What You Need To Know About
Spark® Business Checking

Compared to other banks that limit free transactions, Capital One Spark® Business Checking provides truly unlimited transaction volume whether depositing, transferring, or withdrawing funds.

And while you won’t get hit with monthly fees or minimum balance requirements either, there are a few things you should know.

Federal regulations restrict business savings accounts to 6 withdrawals monthly, and Capital One is obligated to abide by that limit.

If you want access to checkbooks, it will cost you $30 for your first checkbook and $22 thereafter.

And because Capital One Spark® Business is an online banking solution, you won’t receive in-branch support but you can phone support anytime between 8am and 10pm ET.

Capital One Spark® Business
Savings

When you choose a business savings account, you usually have to compromise between an attractive savings rate and access to your money.

If you are willing to tie it up for longer periods, you can usually earn higher savings rates.

A Capital One Spark® Business Savings account offers a happy medium between access to capital and an attractive savings rate.

And like a Capital One Spark® Business Checking account, it’s got a host of benefits, including:

• no monthly service fees
• no minimum balance requirements

These may not seem too special but among business savings accounts they are rare.

Open a Capital One Spark® Business Account

Capital One Spark® Business
Savings Benefits

What You Need To Know About
Spark® Business Savings

Like Spark® Business Checking accounts, Business Savings accounts are online only also, so you won’t receive in-branch support.

Plus, your savings rate declines after the first year, though it is still competitive with standard industry rates.

And if for some reason you do need to make more than 6 monthly withdrawals from your savings account, you will be charged a penalty fee of $10 per withdrawal.

If you need to make withdrawals, you can use your debit card to take cash out from any one of the 2,000+ Capital One® ATMs or 37,000+ fee-free Allpoint® ATMs nationwide.

You can also get cash from stores with cash back policies as part of a PIN-based withdrawal method.

Or use your debit card anywhere that Mastercard® is accepted.

Capital One Spark® Business
Credit Card

The Capital One Spark® Business Credit Card deserves serious consideration for its cash back rewards program that beats the industry standard by 100%.

While most business cards offer 1% cash back rewards, the Capital One Spark® Business Card doubles that to 2%.

And what’s more, the 2% cash back earnings are not limited no matter how much you spend.

Plus, the sign-up bonus rewards are generous. You can earn a one-time $500 cash bonus when you spend $4,500 within the first 3 months.

On top of the bonus sign-up and ongoing incentives, you get to use the card for the first year at no charge. Thereafter, a $95 annual fee applies.

Open a Capital One Spark® Business Account

Capital One Spark® Business
Credit Card Benefits

Open a Capital One Spark® Business Account

What You Need To Know About
Spark® Cash Credit Card

The standout benefit of the Spark® Cash credit card is the 2% ongoing unlimited cash back rewards on all expenditures.

And although the Spark® Cash card is accompanied by a host of other bonuses and benefits, you should be aware that it does not come with a 0% introductory balance transfer period.

So, if you are planning to make a big purchase and looking to credit cards as a means of accessing free financing for an extended duration, the Spark® Cash card is not going to provide the most favorable terms.

And while the first year fee is waived, you will need to pay $95 per year thereafter, so as long as you spend $4,750 per year or more you will breakeven.

Lastly, frequent fliers will enjoy no foreign transaction fees but the Spark® Miles rewards card may be a better fit with its Unlimited 2X Miles policy along with 50,000 Bonus Miles when signing up.

Capital One Spark® Business
Review Pros and Cons

Open a Capital One Spark® Business Account

Capital One Spark® Business
Review Summary

The Capital One Spark® Business checking and savings accounts, and Spark® Cash or Spark® Miles credit cards are among the best small business credit cards.

For cash you don’t need to use right away, you can earn a high interest rate in your Savings account.

And unlike most other banking alternatives, you won’t be penalized if you hit certain transaction volumes because no penalties are imposed.

Plus, you can earn 2% cash back on all purchases using your Spark® Cash credit card without limit. Or earn 2X Miles on the Spark® Miles credit card with no limits if you are a frequent traveler.

Along with generous Cash or Miles sign-up bonuses and an introductory $0 annual fee, Capital One Spark® Business is hard to beat and deserves to be ranked among the best banking solutions for small businesses.

Open a Capital One Spark® Business Account

The article Capital One Spark® Business Review – Best Cash Back Card was originally posted on Investormint

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The American Express Premier Rewards Gold Card is designed for the frequent traveler who wants to avoid the hefty $450 fee associated with premier cards like the Chase Sapphire Reserve Card but still wants generous travel benefits.

No fee is applied for the first year and you earn 3x Membership Rewards® points on flights booked directly with airlines. Plus, you earn 2x points at U.S. restaurants, gas stations, and supermarkets, as well as 1x points on all other purchases.

Amex waives your annual fee in the first year but thereafter the cost is $195 annually. You also receive a $100 Airline Fee Credit each calendar year. And although you can’t use this to pay for flights, you can use it to pay for incidental costs like baggage fees.

The Premier Rewards Gold Card is a charge card so, unlike a credit card that permits the balance to roll forward monthly, you will need to pay your balance in full each month.

Where the Amex Premier Rewards Gold Card really shines is the Membership Rewards Program featuring bonus rewards points on airfares on partner airlines.

American Express Premier Rewards
Gold Card Spotlight

AMERICAN EXPRESS REWARDS GOLD CARD SPOTLIGHT
InvestorMint Rating 1 2 3 4 5 4.5 out of 5 stars	Annual Fee: $195 ($0 Intro Annual Fee) Annual Airline Fee Credit: $100 Flights Booked Directly With Airlines: 3X Points Rewards Sign-up Bonus: 25,000 points Get Started via Amex secure site

American Express Premier Rewards
Gold Card Review Snapshot

One of the best perks of the Premier Rewards Gold Card is the opportunity to earn 3x points on flights booked directly with airlines.

Keep in mind that flight bookings through third party providers like Expedia, Kayak, and Orbitz will not qualify.

Another attractive feature for frequent travelers is that foreign transaction fees are waived.

Plus, you earn 25,000 points as a sign-up bonus after you spend $2,000 within the first 3 months.

This bonus translates to $250 when redeemed for flight expenses through Amex, meaning your first full annual fee is entirely covered.

Apply Now

Is The Amex Premier Rewards
Gold Card Right For You?

The American Express Premier Rewards Gold Card provides a good mix of benefits for the annual fee.

You don’t get all the benefits that a luxury card provides but you receive sufficient benefits to make the card compelling, especially if you want to avoid the hefty $450 fee associated with premier cards, such as:

• Chase Sapphire Reserve
• American Express Platinum

Best For Frequent Travelers

The Premier Rewards Gold Card may be a fit for frequent travelers who expect to spend around $3,334 or more annually.

When you multiply $3,334 * 3x points (which you receive when booking directly with airlines), you arrive at about 10,000 points which translates to $100.

And since you receive a $100 Airline Credit Fee already for incidentals like baggage fees, the full annual cost of $195 is covered by combining the two amounts with a few bucks left over for a cappuccino.

Best For Cardholders Who Regularly Pay Off Balances In Full

The Amex Premier Rewards Gold Card is best for people who tend to pay off card balances regularly each month because it is a charge card, meaning the full balance needs to be paid off every month.

American Express provides a Pay Over Time feature to some customers but don’t rely on that to extend your payments.

If you think there is a risk that you won’t be able to pay off your balance regularly then a credit card may be best.

Best For International Travelers

If you venture to foreign lands as part of a frequent travel schedule, the Premier Rewards Gold Card is well worth considering because foreign transaction fees are non-existent.

Apply Now

How To Maximize Rewards Using
The Premier Rewards Gold Card

When you pay using the Premier Rewards Gold Card, you earn Membership Rewards® points that can be:

• Redeemed for flights and hotel stays
• Used for gift cards, merchandise, and entertainment with over 500 brands
• Transferred to a wide variety of travel partners

To maximize your rewards points, it is usually best to transfer them to travel partners:

Redeeming Points For Travel

When you transfer your Membership Rewards, you can choose to enjoy more luxury or extend the value of your points.

For example, when you transfer your points to the KrisFlyer program by Singapore Airlines, you could enjoy a premium class experience.

Other airline programs will give you the chance to book economy flights with miles that could get you from one coast to the other of the United States for surprisingly few miles.

Redeeming Points For Entertainment

When you redeem points for concerts, sporting events, or theater events, your points don’t generally go as far.

For example, when you buy tickets through Ticketmaster or AXS, you will be able to convert each 10,000 points to just $50 of value.

Redeeming Points For Hotels

You can transfer Membership Rewards points to Starwood Preferred Guest, Hilton Honors, and Choice Privileges.

Hilton Honors has the most favorable conversion ratio while Starwood Preferred Guest has the least attractive.

Redeeming Points Through Amex Travel Portal

You can view a full listing of how your Membership Rewards points convert to travel when booking through the Amex Travel portal later in this article.

But for the most part, flights booked through Amex Travel will convert on the basis of 10,000 points equating to $100.

Booking hotels, cruises, and vacations booked through Amex Travel isn’t as favorable because 10,000 points gets you $70 worth of value.

Redeeming Points When In New York

If you are living or visiting New York, your points can be used for New York city taxis whereby 10,000 points are worth $100.

Redeeming Points For Charitable Giving

You can even use your points for charitable giving using the MembersGive℠ program. The first 500,000 convert at a rate of $100 per 10,000 points.

In excess of 500,000 points, the conversion rate drops to $50.

Apply Now

Premier Rewards Gold Card
Travel Benefits

The Premier Rewards Gold card comes with generous benefits for the annual fee.

$100 Annual Airline Fee Credit

One of the best perks of the Premier Rewards Gold Card is the $100 annual airline fee credit.

This credit does not apply to flight costs themselves but it does apply to incidental fees like baggage fees.

You should see credits for qualifying purchases show up within 4 weeks on your statements.

$75 Hotel Credit

You receive a $75 credit to spend on qualifying dining, spa & resort activities.

In addition to the hotel credit, you get 2x Membership Rewards® points on prepaid bookings.

Plus, you enjoy room upgrades at check-in if available.

No Foreign Transaction Fees

No matter where you travel abroad, you will enjoy the benefit of no foreign transaction fees when you charge purchases to your Premier Rewards Gold Card.

Baggage Insurance Plan

Eligible lost, damaged, or stolen baggage is covered under the Baggage Insurance Plan up to $500 for checked baggage and $1,250 for carry-on baggage.

New York State residents are covered to an aggregate maximum limit of $10,000 for all Covered Persons per Covered Trip.

Premium Roadside Assistance

The Amex Premier Rewards Gold Card comes with around-the-clock emergency roadside assistance if you need to jumpstart a battery or change a flat tire.

You also enjoy towing assistance for up to 10 miles.

The premium roadside assistance is available up to 4 times per year, even you use it in your driveway. For example, if you come back from vacation and discover the car won’t start, you can give Amex a call to request roadside support.

Personalized Travel Service

To save you the hassle of making travel arrangements, you will also receive a Personalized Travel Service to help you book flights, schedule ground transportation, or book hotels.

However, fees apply when you use the service for booking air travel.

Car Rental Loss & Damage Insurance

When you pay for an eligible rental car, you can still receive coverage in the event that the car is damaged or stolen even if you decline the collision damage waiver at the counter.

This coverage does not extend to car rentals in Australia, New Zealand, and Italy. Plus, some exclusions apply so it’s worth double checking ahead of time.

The rental car coverage provided by Amex does not extend to liability coverage.

Global Assist Hotline

A nice perk of the Premier Rewards Gold card is 24/7 access to medical, legal, financial, and other select emergency coordination and assistance services, including:

• Medical and legal referrals
• Missing luggage
• Passport replacement
• Cash wires assistance

When you travel more than 100 miles away from home, you have access to this Global Assist Hotline.

Apply Now

Premier Rewards Gold Card
Shopping & Entertainment
Benefits

Along with travel and rewards benefits, the Premier Rewards Gold card comes with Shopping and Entertainment benefits.

Dropped Your Phone

One of the nice perks of the card is the Purchase Protection you enjoy when your purchases are damaged, stolen, or lost.

The coverage is for up to 90 days and capped at $50,000 per year and $10,000 per occurrence.

Return Protection

When you buy something that a merchant won’t take back, Return Protection may cover you for eligible items for up to 90 days.

You are limited to $300 per item and $1,000 per calendar year.

Only purchases made in the United States and its territories qualify for coverage.

Did Your Warranty Run Out?

When you buy an item with your Premier Rewards Gold Card that has a warranty, you are eligible for extended warranty coverage that matches the term length you already enjoy up to a 1 year limit.

The items must already come with an original U.S. manufacturer’s warranty of up to five years or less.

And coverage is limited to $50,000 per calendar year and $10,000 per item.

Shoprunner

At over 140 online stores, you are eligible for free 2-day shipping with Shoprunner.

To enroll, you will need to visit shoprunner.com/amex

Entertainment Access

Whether concert tours, Broadway tickets, or sporting events are your thing, Card Member-only events with exclusive access to ticket presales are a complimentary benefit of your card.

American Express Preferred Seating

Based on availability, you can gain access to premium seating at select cultural and sporting events.

Apply Now

How Does The Premier Rewards
Gold Card Stack Up?

Compared to the Barclaycard Arrival Plus® World Elite Mastercard® and the Blue Cash Preferred® from American Express, the American Express Premier Rewards Gold Card shines with its annual travel credit of $100 for incidental fees and 3x rewards rate when booking directly with airlines.

Card	American Express Premier Rewards Gold	Barclaycard Arrival Plus® World Elite Mastercard®	Blue Cash Preferred® from American Express
Annual Fee	$195 (waived 1st year)	$89 (waived 1st year)	$95 (waived 1st year)
Annual Travel Credit For Incidental Fees	$100	$0	$0
Foreign Transaction Fee	$0	$0	2.7%
Best Rewards Rate	3X Points (Direct airline bookings)	2 miles per dollar (unlimited)	6% Cashback (Supermarkets)
Points On Other Purchases	2X (restaurants, gas stations, supermarkets) 1X (other purchases)	2X (miles on all purchases)	3% Cashback (gas stations & department stores) 1% Cashback (all other purchases)
Sign-up Bonus Points	25,000	40,000	$200
% Rewards Range	1% → 3%	1% → 2.1%	1% → 6%
Customer Credit	Good → Excellent	Excellent	Good → Excellent
	Apply for Amex	Apply for Barclay	Apply for Amex

If you travel less frequently but spend more heavily at grocery stores, the Blue Cash Preferred® card from American Express may be a better fit.

The Barclaycard Arrival Plus® World Elite Mastercard® competes well with the American Express Premier Rewards Gold Card because both charge zero transaction fees and the rewards rate is double the industry rate. Plus, both cards waive the annual fee for the first year.

Apply Now

American Express Premier
Rewards Gold Pros and Cons

Apply Now

Premier Rewards Gold Card Fees

You will be charged a “returned late payment fee” of up to $38 and late fees of $38 or 2.99%, whichever is higher.

Plus, the annual fee is $195 after the first year, which is free.

Premier Rewards Gold Card FAQ

Apply Now

Premier Rewards Gold Card Review

The Premier Rewards Gold Card by American Express is best for cardmembers who travel frequently.

If you travel on planes often, the $100 airline credit fee can be used to offset incidental travel fees like baggage costs, airport lounge day passes and in-flight refreshments but you can’t use it to book flights directly.

Once you arrive at your destination, you will pay no foreign transaction fees abroad.

Another nice perk of the Premier Rewards Gold Card is the credit of $75 on dining, spa, and resort expenses when you spend at least 2 consecutive nights at a hotel that is a part of an American Express Hotel Collection.

When you book directly with airlines, you earn 3x points and can transfer Membership Rewards to an extensive network of hotels and airlines, which can often be exchanged on a 1:1 basis.

Plus, the sign up bonus of 25,000 points and $0 intro annual fee makes the card compelling for frequent travelers.

Keep in mind the balance must be paid off monthly as the Premier Rewards Gold Card is designed as a charge card so late fees apply if you don’t pay off your full balance.

Apply Now

How Much Are Membership Rewards® Points Worth?

To keep things simple, let’s say you had 10,000 Membership Rewards® points that could be used towards gift cards, shopping, travel, entertainment, point-of-sale, or even charity, how much are they worth in each category?

Gift Cards

Somewhat surprisingly, an American Express Gift Card can only be converted to value of $50.

But you can exchange your points on standard car & rail services as follows:

Amex has partnered with a wide range of Dining partners where your 10,000 points can be converted according the following listing:

If you’re an adventurer, points can be converted a wide range of experiences including to ski resorts.

When you purchase gift cards at the following retail outlets, 10,000 Membership Rewards points convert to the following values:

Shopping

When you shop at popular online retailers, you can use your points too.

Travel

When you book flights, reserve prepaid hotels, take cruises, or plan vacations and charge the expenses through American Express Travel, the points values are as follows:

Entertainment

You can buy tickets to sports events, concerts, and theater events among others through Ticketmaster and AXS using points. And 10,000 points converts as follows:

Point Of Sale

Charity Donations

The article American Express Premier Rewards Gold Card Review was originally posted on Investormint

Chase Freedom® and Discover It® -Cashback Match^TM are two of the best credit cards on the market. Neither charges an annual fee and both have generous cash back rewards programs, as well as enticing sign up bonuses for new members.

If you like the idea of a cash bonus upfront, Chase Freedom® is your best bet. Every 3 months, you also receive 5% cash back on select rotating categories, which is a benefit you receive from the Discover It® – Cashback Match^TM too.

You also get free access to view your FICO® Score from the Discover It® – Cashback Match^TM card.

When you compare Discover It® Vs Chase Freedom®, you quickly discover it’s a close call, but where will you earn most benefits as a cardmember and which card is best for you?

Chase Freedom® Review

The small print on the new cardmember offer is that you receive the $150 bonus after spending $500 on purchases in the first 3 months after opening an account.

Beyond the 5% cash back on bonus categories, you also receive 1% cash back on all other purchases.

And if you sign up primarily for the 0% introductory APR rate for the first 15 months, schedule a calendar note when it expires because thereafter the rate increases to between 16.24% and 24.99%.

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Discover It® Review

Discover It® – Cashback Match^TM has a less attractive sign-on bonus but it makes up for that with silver linings: free access to your FICO® Score and and a 0% charge on foreign transaction fees compared to a 3% charge by Chase.

Discover It® cardmembers also receive 1% cash back on all purchases other than the bonus categories, which earn members 5%.

And while the 0% introductory APR rate period is slightly shorter at 14 months compared to 15 months from Chase Freedom®, the rate range is lower: 12.24% → 24.24%.

Discover will also automatically match 100% of the cash back you earn at the end of the first year.

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Chase Freedom® Cash Back Calendar

The 5% cash back bonus calendar for 2018 is as follows:

Merchants who do not specialize in selling automotive gasoline; for example boat marinas, oil and propane distributors, home heating companies, and truck stops do not qualify.

For internet, cable, and phone services, purchases of equipment are not included. Only purchases for internet, cable, satellite television, wireless data, landline services, radio, and cellular qualify.

Eligible purchases earn the 5% cash back rewards on up to $1,500 in combined purchases.

Discover-It® Cash Back Calendar

The 5% cash back bonus calendar for 2018 is as follows:

Between January and March, earn 5% cashback bonus at gas stations & wholesale clubs on up to $1,500 in purchases when you activate. On purchases made over $1,500, you earn 1% cashback.

The same purchase restriction applies to grocery stores between April and June, restaurants between July and September, and Amazon/Wholesale clubs between October and December.

Grocery Store Exclusions: Grocery purchases at convenience stores, gas stations, warehouse clubs, supercenters, and discount stores are not eligible.  Also purchases made using tap-and-pay, mobile or wireless card readers, virtual wallets or similar technology may not be eligible.

Restaurant Exclusions: Restaurant purchases are made at merchants classified as full-service restaurants, cafes, and cafeterias, and fast food locations. If you buy using tap-and-pay, wireless, or mobile card readers, as well as virtual wallets or similar technology, the purchase may be deemed ineligible.

Amazon & Wholesale Club Exclusions: Travel and cell phone purchases may be ineligible when purchasing from a Wholesale Club.

Rewards are added to your Cashback Bonus account within two billing periods.

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Discover It® vs Chase Freedom® Fees

Annual Fee	$0	$0
Foreign Transaction Fee	0%	3%
0% APR	14 months	15 months
APR Rate Range (after 0% intro rate)	12.24% → 24.24%	16.24% → 24.99%

Discover It® – Cashback Match^TM and Chase Freedom® are identical when it comes to charging no annual fee but thereafter Discover has the edge on foreign transactions and APR rates.

Discover may not be available at as many merchants abroad as Visa, so although Discover charges no foreign transaction fee, Chase may be more attractive when it comes time to buy something you really want if the store only accepts Visa.

When it comes to APR rates, Chase loses the battle ever so slightly to Discover, which has lower rates especially at the lower end of the range.

>> Related: Why Was My Credit Card Declined?

Chase Freedom® vs Discover It®:
Pros & Cons

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Discover It® Vs Chase Freedom®:
Which Is Right For You?

Discover It® – Cashback Match^TM is ideal if your spending habits match those of the bonus categories. For example, if your spending on Amazon increases in the final quarter of the year during the holiday season, Discover It® – Cashback Match^TM may be best.

You will also find Discover to be the better choice if you like to have free access to your credit report.

Where Chase Freedom® has the edge is the cash bonus when signing up. Plus, Chase Freedom® is a Visa card so it may be more widely accepted.

However, if you travel overseas, Chase Freedom will penalize you with a hefty 3% charge on purchases abroad.

Discover It® Vs Chase Freedom®
Review Summary

You won’t be charged an annual fee when you sign up to either the Chase Freedom® credit card or the Discover-It® credit card.

Between Chase Freedom® and Discover It® – Cashback Match^TM, Discover is better if you spend heavily on Amazon over the holidays or travel overseas thanks to its 0% foreign transaction fee.

Chase is better for cardmembers who want a cash bonus signing up and whose spending habits align with the quarterly bonus categories offered.

If you already have the Chase Sapphire Reserve credit card, Chase Freedom is the better choice because you can transfer points earned in 5% categories to the Reserve card and then redeem for travel via the Chase Ultimate Rewards Portal at an even better conversion rate.

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The article Discover It vs Chase Freedom Review was originally posted on Investormint