Platinum Credit Cards and Their Advantages Over Regular Cards

Luxury car, grand homes, and platinum credit cards all share two common traits: prestige and status. A platinum credit card is considered a top-of-the line plastic that other regular cards simply can’t match. If you are deliberating over a platinum card or a standard card, you may want to know that the premium card has more benefits exclusively offered for the account holders. Among the highly valuable features and benefits of this card are the following:

Higher Credit Limit

There are standard cards that only let you charge up to $1,000. There are some that would give higher, depending on your credit score. A gold card may give you $8,000 limit, but most platinum credit cards today offer a $25,000 limit. When you have high limits, you can use your card whenever you pay at upscale hotels or restaurants.

Excellent Rewards

Rewards are among the reasons why people use a credit card. Most cards today are labeled as rewards cards, but they are nowhere near the rewards system of a platinum card. This has incentives that can never be obtained with an ordinary card or even with a gold card. Platinum cards have higher bonuses and rewards. For instance, you can earn 1 mile for a standard card. Then, with a gold card, you can earn 2 miles, but the platinum card may offer up to 5 miles for every purchase you make. In short, you can expect that the rewards program of a platinum card is far more generous than standard and gold cards.

Lower Interest Rate

There is no denying that having a platinum card is expensive. The annual fee is staggering, but these cards basically have lower interest rates. This is because the cardholders are expected to have good to excellent credit rating. They are considered low-risk consumers and are, therefore, provided with low interest rates. Many platinum cards nowadays have a long interest-free period just like regular credit cards.

Wide Variety of Benefits

With a platinum card, you can get travel insurance that has wider and better coverage. Some regular cards offer this feature as well, but they mostly require a fee to get access to the insurance. In addition, there are many standard cards that provide complimentary insurance for only three months. In contrast, platinum can give you at least six months. This applies not only on domestic flights, but on international travel as well.

Aside from insurance, you get refund and purchase protection for items you have bought with your card. This is also offered on services and air travel and hotel reservations you have made. There are cards that offer more than three months of purchase protection.

Other benefits are also added to platinum cards so that consumers can easily distinguish them from conventional plastics. These include discounts on entertainment and travel tickets, purchasing pre-sale tickets, access to expert advisors, personal concierge service, and passes to airport lounges worldwide. Your card may also provide priority boarding, preferred seating, and VIP treatment.

Since this type of card conveys the status of the cardholder, not everyone can qualify for the card. To get a platinum credit card, you must have an excellent credit score and high yearly income.

How to Convince Credit Card Companies to Lower Your Interest Rate

Interest rates are among the many reasons why a credit card can get so expensive. Once you forget to make a payment in a timely manner, your account could get penalized with interest. As a result, you may have to pay more than what you actually borrowed. The only way to escape the high interest rates is through paying all your balances on time – not just the minimum payment but all your balances.

If you cannot pay your balances in full, you can pay only the interest rate that your account has accumulated. Card companies have the right to increase the rates. Though they will inform you of the increase, this could only be burdensome to your financial health. Thankfully, there are ways to lower your APRs.

Below are some ways on how to convince credit card companies to lower your interest rare:

Find out how much you can pay off each month.

There are online and downloadable tools that you can use to determine the exact amount that you can afford to pay every month. The important part here is to make sure that you make more than the minimum payment, even if it is not the full balance.

Gather pertinent files.

Your junk mail can be of great value here. Collect the solicitations from other companies, particularly those that offer lower interest rates. This will serve as your leverage against the card issuer so you can convince them about your case.

Pick up the phone.

The most recommended way to deal with your creditor is through speaking with them over the phone. Get your card statement and find the phone number of your creditor. Instead of speaking with the first person who answers the phone, ask for the supervisor. Once the right person is on the line, request for a name or at least an identification number. Write it down along with the date and time you spoke with him or her.

Ask for a lower rate.

Tell the supervisor that you want to get a rate reduction. This is where the other offers become valuable. Mention them along with the name of the card and the lender. This technique can be effective in convincing the supervisor to keep you as their customer.

Negotiate.

More often than not, you will be given a rate lower than the one you provided. Attempt to negotiate. For instance, if you are offered with a four point decrease, go for a six point reduction. Don’t raise your tone; always be polite. Once the supervisor indicates that he or she can no longer go lower than what has been offered, you may want to take it.

Ask for a confirmation.

A telephone conversation is definitely not enough. Always request to have everything in writing. The letter should contain your new rate and the date when the modification takes effect.

Check your next billing statement. It should have a new interest rate on the paper. If you notice that the change has not been made, you should contact your creditor once again. Ask to talk to the supervisor whom you talked to last time. Remind him about your last conversation regarding the interest rate drop.

It may be quite a challenge to convince credit card companies to lower your interest rates. However, if you are persistent enough and you are able to give them enough reasons to grant your request, you might just be given what you want. 

How to Improve Your Credit Score After Filing for Bankruptcy

Filing for bankruptcy can cause your credit score to go down drastically. Worse, it can affect the overall quality of your life for quite a long time. Once you have filed for bankruptcy, you are no longer considered creditworthy by lenders and you may find it hard to get approved for credit cards, car loans, and house loans.

Fortunately, there are ways by which you can improve your credit score even after filing for bankruptcy. Such means, while simple, may be able to help you raise your credit score back to the way it should be.

Below are some of the tricks on how you can improve your credit score after filing for bankruptcy:  

Check Your Credit Report

Credit reports may contain errors about your credit and payment activities. Such errors can drastically affect your creditworthiness. As such, it is recommended to check your reports regularly and to make sure that everything is being reported there as is.

It is important to note that your credit report does not contain your credit score. However, you can verify its contents to make sure that all items are correct. Each account in your bankruptcy declaration should be identified as “included in bankruptcy” or a similar phrase. You can file a dispute if one or more accounts are still currently being hold as debt.

Have a Budget Plan

Always have a budget plan. Especially that you have declared bankruptcy, it is even more important to keep a budget plan to help you track and budget your finances. A household budget that tells you how much you spend on specific things, such as household expenses, loans, groceries, and the like, is a good start. If you have any credit card open, strive to pay the bills on time. Never delaying payments can help boost your score.

Use a Secured Card

Although it makes sense that you should not open any credit card account for the time being, a secured card is an option, especially if you have closed all your accounts. This is a type of credit card, but does not work the traditional way. Instead of you borrowing money with the potential of getting into debt, a secured card does not pose such risk. You need to provide a security deposit, which will, in turn, limit the amount of money you spend.

Set Up Payment Reminders

You may have student loans, mortgages, credit card bills, and others that need to be paid off on time. You can use a payment reminder tool, which will notify you of pending bills that you have to pay right away. You can also choose to pay for the bills automatically by linking to your savings account.

If you follow the right path after filing for bankruptcy, it is possible that you will be able to regain your good credit rating. Paying credit card balances on time and making sure that you have enough money to fund your daily expenses can make a huge difference.

Pros and Cons of Small Business Credit Cards

When used as intended, small business credit cards can be very beneficial for growing companies. However, you should also be aware that there are potential hazards around the corner, waiting for you to commit just a single mistake. Determine whether such a card is right for you by examining the pros and cons of these financial tools for business. 

Pros

There are a number of reasons why a credit card designed for small businesses is a must-have. Some are the following: 

1.       High Approval Rate – Consumer cards have stricter rules. Most of them require you to have at least good credit rating with sufficient income and established payment history. With a small business card, you do not have to have an excellent score just to qualify for a revolving credit line. The process is fast and simple, letting you borrow money easier than other traditional lines of credit. 

2.       Build Credit – If you don’t have good credit rating, now is the time to focus on building it using the plastic. You can watch your score go up as you continuously pay your bills on time. 

3.       Gain Rewards and Enjoy Exclusive Perks – Most cards today come with special rewards, including free airline travel, discounts, and free meals when you purchase supplies and equipment for your office. 

4.       Ease of Bookkeeping – Most small business cards offer a year-end summary to help owners keep track of their expenses, ultimately simplifying bookkeeping processes. 

5.       Convenience – Credit cards are known for being a very convenient tool. Your card can give you access to funds especially in times of emergency.

Cons 

Many people are wary of these types of cards and most of them have valid reasons. Here are the top three reasons why: 

1.       Interest Rates – These rates fluctuate time and again. Plus, many cardholders end up in debt because of the high interest rates. Once you delay your monthly payment, expect to see the interest grow rapidly. 

2.       Personal Legal Obligation – Most cards have personal liability arrangement where you secure the card in your name. By signing the agreement, you accept that any late or non-repayment would reflect in your credit report. 

3.       More Expensive – Although you have fast access to cash anytime you may need it, this accessibility comes with a price. Cash withdrawal through ATMs has high fees, and you have to watch out for the interest rate, late fees, and other penalty fees as well. These make the card more expensive than just using cash. In addition, most business cards require you to pay the annual fee, too.

Before you rush to apply for a small business credit card, remember to think things through carefully. Consider whether the advantages offset the downsides associated with the plastic.

0% Interest Credit Cards From Chase

The 0% interest credit cards from Chase are perfect for those who have debt and those who simply wish to save more cash while shopping. These cards make it possible to pay for monthly balances easily. Chase has a good number of these cards, the prominent ones of which are the following:

Chase Freedom® MasterCard and Chase Freedom® Visa

Both cards have similar features except for the payment network. Nevertheless, they both come with essential attributes that could make any card holder’s life more convenient. The 0% interest rate can be availed by card holders upon sign up. The typical duration of the promo rate is 15 months, but this will depend on your credit score. The offer is applicable to balance transfers and purchases. The two Freedom® variations do not have an annual fee but require you to have excellent credit to qualify.

Slate® from Chase and Slate® MasterCard from Chase

Again, the two are pretty much the same. They are considered as among the best cards for balance transfer these days. The introductory offer of 0% interest also runs up to 15 months, both on balance transfers and purchases.  There is no annual fee as well and they require excellent credit. Both have patented identity theft and fraud defense and adding another card user is allowed without extra charge. These cards come with the popular Blueprint® feature from Chase.

Disney's Premier Visa® Card

This card does not allow balance transfers, but this is a great choice if you want a card that offers 0% interest for up to six months. A cash back card, Disney's Premier Visa® from Chase lets you earn $100 worth of statement credit right after your first purchase. This is best for people who often shop at Disney Store locations and at DisneyStore.com.  Other perks are included as well, such as the Character Meet ‘N’ Greet at Disney Theme Parks.

Ink Cash(SM) Business Card

This is the card for business rewards aficionados. Ink Cash(SM) Business credit card comes with tons of rewards right from the moment you sign up. The cash back bonus after making your first purchase, plus the additional bonus after spending enough credits are hard to match. All purchase you make, especially those that are related to your business, are eligible for a high cash back percentage. Even your meals will be granted with discounts and rebates. For six months, this card allows you to be interest-free while offering no annual fee throughout the period of card membership.

The 0% interest credit cards from Chase can certainly help you save the most money. In addition, you get to pay your balances comfortably without worrying about your impending dues.

How to Get a Credit Card If You Have No Credit History

Building credit with a credit card is one of life’s paradoxes – you need credit to get a credit card. If you have no history yet, creditors will often treat you as if you have bad credit, though they are not the same. The reasoning behind this logic is that you have not been able to show how disciplined you are as a payer and cardholder.

Obtaining Credit Score

In order for you to qualify for a card, you need credit history. Your credit score is a rating for your credit behavior and your behavior is displayed in your credit report. Your credit report contains your credit history information, how you paid your balances, and whether or not you have existing debt. Creditors take a look at your credit report as well as your credit score. Unsecured cards have credit score requirements.

If you don’t have credit history, you can’t have a credit score. To obtain it, you need to have a credit card or any type of credit line that has been active for at least six months.

Why Get a Credit Card

If your main goal is to establish history, remember that a credit card is not the only way to build it. However, if you don’t have such plastic yet, you are missing out on a lot of things. First is that there are credit card perks that you can acquire for free. These include extended warranties on your purchases, travel insurance, automatic eligibility for roadside assistance, and anti-fraud protection.

Second, although a credit card is not your only choice for building credit, it is actually your best choice. It has the ability to establish, maintain, and raise scores faster than any other type of credit line. If used responsibly, your card can be your gateway to obtaining a low-priced dream house, for example. This is because there is a huge difference between the amount you will have to pay if you have excellent credit and when you have poor or limited credit.

How to Get a Card

Obtaining a credit card without credit history is difficult, but it is not impossible. Here are some ways to get your first card: 

• Get a store card – Many stores are willing to dole out cards to buyers, even if they have no history. Apply for one that reports to credit bureaus. Start using the card, but make sure you don’t purchase more than how much you would with real cash. Moreover, don’t forget to pay off your bills in full each month.
• Open a secured card account – Make a deposit, usually from $200 to $3,000 and link the secured card to your savings account. Start making purchases against it and make timely payments. Most secured cards report to credit bureaus, but it still pays to make sure your card does so. When used wisely, you may be allowed to switch to an unsecured card after at least six months.

 The two types of cards mentioned above don’t require credit check. Use them correctly to build your credit history and to be able to get the card you truly want in the future.

Credit Cards for People with Poor Credit

If you have poor credit rating, don’t think that you will not be able to get a new credit card. Although

you have fewer options than those with excellent scores, it does not mean that you will not be approved once you submit an application. There are cards that are particularly targeted to consumers with bad credit rating. The choices are not vast, but you are still likely to be able to find just the perfect card for yourself.

At the moment, there are a good number of credit cards for people with poor credit, including the following:

Capital One® Secured MasterCard®

This card has an annual fee. Its annual fee, though, is not as high as those cards preying on people with bad credit. This is a good choice as it can help you get back on track, especially when used properly. Capital One® Secured MasterCard® is accepted in many parts of the world – thanks to its MasterCard network.

Since this is a secured card, you will be required to deposit an amount before you can use it for whatever purpose it may serve you. However, your credit limit will be higher than what you deposited. Another great thing about this card is that once you have established better rating, you can then apply and get approved for an unsecured card from Capital One®.

Orchard Bank Credit Cards

Orchard Bank is a known division of HSBC for many years. Quite recently, Capital One® has purchased all

the cards from Orchard Bank and all those issued by HSBC as well. Nevertheless, as a trusted leader in providing cards for people with bad credit, applying for a plastic from Orchard Bank (or Capital One®) is

definitely a good idea. If you send your application to Orchard Bank online, you will be considered for four cards: one is a secured card while the other three are unsecured. If you don’t qualify for the unsecured cards, you will automatically get the secured card. Hence, you will never go home empty-handed as your application will always get approved.

DCU Visa® Platinum Secured Card

Most people say that you can never go wrong with a card from a credit union. Perhaps they are right

with the DCU Visa® Platinum Secured Card. Issued by the nonprofit organization, Digital Federal Credit Union, you can obtain this card by simply making a small donation.  DCU Visa® Platinum Secured Card is a gem as it does not require you to pay for the annual fee, which is quite common in all other secured cards. The APR for purchases is fairly reasonable as well.

All the cards in this list are known as secured cards. They mostly approve applicants, except for the DCU Visa® Platinum Secured Card, which requires you to be a member of the credit union first. Nevertheless, joining is easier than with other nonprofit organizations.

Once you have your credit card, you should make it a point to always pay on time and to never carry balances. This is the most efficient method towards rebuilding your credit history.