Archive for Credit cards with rewards programs
Which Credit Card To Apply For? – Tips To Help You Choose
Posted by: | CommentsSo many different choices for credit cards: 0% APR credit cards, travel rewards credit cards, 0% balance transfer credit cards, and cash back credit cards. Selecting the right card for the way you use your credit card can mean a big difference in your pocketbook. Use this quick guide to help you spot the differences in your credit card offers:
Will you carry a balance every month or almost every month? If so, a lower interest rate is better for you. If you transfer a high balance credit card to a lower or 0% APR credit card (often an introductory period), you will save even more.
Will you be paying the credit card balance off every month? Then you will want to apply for a credit card without an annual fee. Finance charges may be higher, but since you pay the balance off every month, you won’t be charged. Look for credit cards that offer grace periods, usually between 25 to 30 days, before credit interest begins.
Will you be shopping for credit card balance transfer? Be sure to check out the transaction fees and the introductory periods. Occasionally your credit card company will offer you a credit card debt consolidation with convenience checks so that you can transfer one or more credit card balances, but be sure to check out the transfer guidelines.
Will you need cash advances? Apply for a credit card that offers a lower APR and lower transaction fees. Be sure to read the fine print on their requirements. Some credit card companies impose a transaction fee and a cash advance fee plus the interest rate. Some credit cards charge a higher rate for cash advances than regular purchases.
*Will you be traveling frequently, and charging your trip expenses? If this is your situation, then a cash back credit card reward program may suit you best. Be sure to consider your interest rate first, however. Rewards should come secondary to your spending habits and the cost of the credit card itself. Cash rebate cards offer you a cash back refund at the end of the year that you can use anyway you choose. Other credit card reward programs offer purchase points or redeemable rebates. Airline credit cards offer you miles as credit for every dollar you spend, sometimes offering you double or triple miles.
Whatever credit card offer you apply for, be sure to carefully consider the terms of your credit card, including the interest rate (APR), annual fees, transaction fees and balance transfer fees. Those hidden charges can add up quickly and cost you more than what you bargained for, so choose your credit card wisely.
What’s The Best Credit Card For Me?
Posted by: | CommentsSo, you have decided you need a credit card. However, you must remember that not all credit cards are created equally. Your friend’s credit card doesn’t mean that it is also the best for you. Before going to this bank and get its credit card, you must consider the several factors that you should take into consideration when deciding which credit card you want to get.
Some of those factors include:
- Interest rate. When you are the type of person that pays off your balance monthly, you would probably disregard the interest rate. Unfortunately, most people are having problems keeping with their credit card balance. Most people do carry a balance in their credit cards. If you sometimes late paying and carrying a balance, then it would be the best decision to have a credit card with a low interest rate. Having a card with a low interest rate save you a lot of money. You might disregard the difference between a 10 percent and 20 percent interest rate, but the difference could be significant if you have balances for a long period of time. Major credit card companies like Visa, MasterCard, Discover, and AMEX, have low interest versions of their credit card.
- Reward programs. Visa, MasterCard, Discover, or American Express and other major credit card companies have reward programs. Reward programs give you special privileges or services for being a credit card holder. Some of these programs include frequent flyer programs, where you are given one frequent flyer mile for each dollar spent. If you are quite a traveler, then a credit card with this program might be for you. Some offer cash-back options. Most common are discount offerings at retail stores or online chains.
- Annual fees. The annual fee is an important consideration, especially those who have a hard time paying off their balances monthly. If you think that the annual fee you have to pay to keep your card is way too high compared with the privileges you get from your card, it would be probably better to stop using the card.
- Member benefits. Credit cards promise various benefits. Some have travel protection as part of the benefits, while others offer roadside assistance. You have to consider your lifestyle in checking out a card’s benefits.
Remember: On choosing credit cards, choose wisely. If you need to, discuss your specific financial needs with your financial advisor.
Best Credit Cards – How to Find the Right Card for you
Posted by: | CommentsOn question often asked is “what’s the best credit card available?” The truth of the matter is that there is no one credit card available that is the best for everyone. Choosing the right credit card for you has more to do with your credit card spending and repayment patterns than anything else.
In order to find out which credit card is best you need to think about your credit card usage. For example, do you pay the balance in full each month, do you carry debt over and incur interest and so on. See which of the statements below fits your credit card usage.
“I don’t pay by credit card bill in full each month”
If you carry a balance over from month to month, you need to look for the lowest rate interest card available. Some cards charge high rates of 18% and upwards per annum, others charge less than 10% per annum. The interest rate makes a huge difference to the monthly minimum repayment amounts and also the ease at which you can pay down debt. A low interest rate is more important than a rewards program if you are carrying debt.
“I only use a credit card occasionally and normally pay it off each month”
If you are a light credit card user and tend to pay it off in full each month then the most important factors to consider will be the cards annual fee and the number of interest free days on purchases. Many credit card issuers have cards with no annual fees. They tend to offer less in the way of rewards schemes but as a light user you are unlikely to benefit from such schemes. Look for cards with a low or no annual fee offering instant rewards and discounts. These are partner offers that can be used at any time without accumulating points.
“I buy most things with my credit card and then to pay if off each month”
If you do most of your spending via your credit card and tend to pay it off each month then you may benefit from a credit card offering a rewards scheme. Often rewards credit cards have higher interest rates or annual fees than other types of credit cards. However, interest rates are not important so long you pay the bill each month and the rewards could well exceed the card fee. Frequent flyer credit cards are the most popular type of reward card. A spend of around $2000 per month can earn the equivalent of 4 short haul return flights per year with many airlines.
Other factors to consider when choosing a credit card
Interest free days:
When looking for the right credit card for you, you will find that there are two main types of credit cards: those that offer interest free days and those that don’t. Generally, those that offer interest days charge a higher interest rate after the end of the interest free period or charge an annual fee to compensate. Many credit card companies now offer to up to 55 days interest free on purchases. Cash advances normally incur interest straight away and often at a higher rate than purchases.
Late payment penalties: When evaluating which credit card is right for you, it is important to consider the late payment penalties. If a late fee is charged, what is it? Is an increased interest rate also enforced as a penalty? Some companies more than double your interest charges if you pay late even by one day.
Customer service: It is also helpful to consider a company’s track record in looking after their clients. Why not phone the customer service lines of your short listed credit card companies? Who do you want to deal with? Are you kept on hold for an excessive length of time before someone takes your call or are you answered quickly? If you can’t get good customer service from a company, you should probably forget them. Another important consideration is whether they are using overseas call centres that have access to customer’s private details. If you don’t have a problem with this, fine.
Conclusion
If you intend to use your credit card to pay bills and will pay the complete balance each month, look for a credit card that offers the best value in terms of interest free days and rewards. However, if you are going to be in debt from month to month, look for the lowest interest rate, lowest annual fee and fairest calculation of penalties (because things can go wrong sometimes).
If you are juggling a number of credit cards of varying interest rates and have overall high monthly payments because of credit card debt, then consolidating your credit card debt on one low rate interest card could be the answer you are looking for. By consolidating your credit card debt on one low rate card, you will dramatically reduce your minimum monthly credit card costs and improve your ability to pay down debt.
Debt consolidation, using a low rate credit card, can also provide more flexibility than a personal loan. If an emergency occurs then the credit is still there to use. The obvious risk to this, however, is using the credit and never getting out of debt. Debt consolidation with a credit card requires discipline and commitment to get out of debt.
Best Credit Cards Summary – The right credit card for you
Carry balance over each month = Low interest credit cards
High levels of existing debt to pay off = Low interest / balance transfer credit cards
Pay balance off in full each month / low credit card usage = no annual fee credit cards
Pay balance off in full each month / medium-high credit card usage = rewards credit cards
The Rewards you Get From Owning Business Credit Cards
Posted by: | CommentsDiscounts on Business Travel
Planning a business trip can be quite time consuming. As part of the service that some business credit card companies offer, they help arrange for your itineraries, bookings, emergency assistance abroad, and free travel accident insurance. The business credit card travel incentives may also include public transport in those countries where you’re traveling on business.
You are also likely to make phone calls from abroad to your business office. Many business credit card issuers have made special arrangements with telephone service providers if these bills are paid with a business credit card. A business owner who requires regular updates through telephone or email will be able to save with this feature. Business credit cards often secure preferential exchange rates to the business traveler. In addition, business travel becomes more pleasurable since your business credit cards can entitle you to seat upgrades on the flights you take and the use of business lounges at the airports while you are waiting for a connection.
Business credit card holders sometimes qualify for frequent miles or discounts on certain flights and at certain hotels. These arrangements make traveling both more convenient and cheaper for holders of business credit cards.
Discounts on Goods and Services
When your business makes use of a business credit card, you will enjoy discounts on your purchases of goods and services. The discounts could add up to substantial saving for your business and enable you to use the money for other purposes. You may want to see which discounts you qualify for at individual suppliers when you use your business credit card. Purchase of certain products may result in rebates, thereby returning some of the money spent to the coffers of the business.
Incentives for the Drivers
Many business credit cards entitle you to discounts or rebates on gas purchases. As part of their travel incentives, business credit cards also offer discounts on car hire, which yields substantial savings if your employees are required to frequently undertake traveling. Business credit card issuers also arrange for worldwide emergency and travel assistance. If your employees are traveling in a foreign country and an emergency occurs, they know they can count on the assistance of knowledgeable people who have the appropriate contacts for emergency services.
Rewards Programs
Issuers of business credit cards have formulated programs that are akin to what they offer to personal credit card holders. As a holder of business credit cards, you will also earn air miles, or other forms of rewards points. Some business credit cards are more generous, giving you four points per dollar spent as opposed to the traditional reward of one point per dollar. If you have company employees making use of your business credit cards, their usage will rapidly increase your rewards point earnings.
With all of these rewards that holders of business credit cards offer, securing business credit cards becomes the best choice for many businesses.
Credit Cards: Don’t Fall Into Debt Make Money From Them Instead
Posted by: | CommentsIt might sound strange to you, but it is true that credit cards can make money for us. A majority of the credit card owners find the plastic a nuisance and can’t wait to get rid of it. If you also belong to this group, think again, credit cards have made life easier and financially more rewarding for some. How did they do it? A large part of the achievement was fueled by good financial management habits, but all of them used the following tips.
1. Use 0% intro APR credit cards
This is the first practice that most of the people who ‘use’ credit cards ‘properly’ adopt. A credit card with 0% intro APR allows you to save on interest money for a limited time. Though, a 0% intro APR on balance transfer is rare these days, but it is not difficult to find a credit card, which has low rate on balance transfer and the associated balance transfer fees. So, if you are stranded with a credit card that bleeds you every month in interest rates. Try this thing, it has worked for many and can work for you too.
2. Use credit cards with No Annual Fees
Credit card with hefty annual fees are very nagging, most of these credit cards have rewards which look good on the face, but are very hard to redeem. The credit card offer document mentions the annual fees in fine prints and since, most of us bother the least to look at the small text, the thing gets slapped on us. If one such credit card is bothering you, get rid of it instantly. There are plenty of credit cards out there without any annual fees. Go ahead get them. Although the sum saved on annual fees might not look tempting, but when you add to it the money spent on getting those ‘illusive’ rewards, it gets huge. And remember little things here and there can add up quickly.
3. Use Cashback credit cards
Cashback is the norm with the ‘moneyearners’. They are always on the lookout for a credit card with excellent cashback program. But, before you jump on to the bandwagon it is pertinent that you understand the modalities of redemption of cashback rewards. These crafty terms associated with the credit card cashback programs are buried in fine prints. Make sure you understand every bit of the terms. If reading the fine prints bothers you, nag the credit card representative and get every fact clear. Compare the cashback program with your spendings and calculate whether it will make money for you or not? This will get you a clear idea whether the cashback rewards are real or just an eyewash.
The three tips mentioned above look pretty obvious but are most overlooked. Go ahead use them along with good financial habits and use the credit cards to make money for yourself. And keep in touch for more credit card related tips.