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.

Best Credit Cards for Students

Years ago, students, particularly those who have reached 18 years old, could easily get a credit card. Since the implementation of the CARD Act of 2009, though, it has become a lot harder for students under 21 years of age to get their own plastics for personal use. The Act aimed to protect students from debt while they are still in college.

Nowadays, a wide number of cards are available for students who are able to meet the requirements set forth by the CARD Act.  Given the huge number of cards today, it may be challenging to narrow down the list to get the best credit cards for students.  Nevertheless, here are the most valuable cards that you can start with as you shop around for your first plastic:

JourneySM Student Rewards from Capital One®

This is one unbeatable card equipped with tons of features for students. It is a cash back rewards card that will let you earn higher than the standard 1% for every dollar you spend. You need to pay your balances on time, though, to keep your rewards. Clearly, it teaches students how to build their credit history the right way. This is also ideal for students who are planning to study abroad since this does not have foreign transaction fees.

Citi® Dividend Platinum Select® Card for College Students

You can apply for this card even if you have no co-signer. However, you must meet the income requirements to qualify for the card. This is a well-known rewards card especially designed for students who are establishing their credit history. While you spend credits on purchases at drugstores, gas stations, supermarkets, and others, you earn 5% cash back during the first six months of card opening. There are rotating categories that you can sign up for to earn more bonus points. All other purchases you make that do not fit in the category will still be rewarded.

Discover® Student More Card

With this card, you are permitted to present a co-signer in case you are below 21 years of age and are not earning income to pay your bills. The interest rates are competitive, even for those who do not have credit history yet. The average credit limit is reasonable. The not too high limit keeps you away from being lured to spend more than you can afford. The rewards are great just like most student cards, but note that it is capped at $1,500 only.

Wells Fargo Cash BackSM College Visa® Card

If you have good credit and you wish to maintain it, this is a good card to consider. It is one of the few cards that have low interest rates for students. This is not recommended for those who are planning to go and study abroad, though, as it charges high foreign transaction fee. There is an introductory period where you get to purchase whatever you want without incurring interest. Note that you have to make at least the minimum payment to take advantage of the offer for six months.

The best credit cards for students not only come with great rewards. They should also have reasonable fees and educational tools to help the young ones manage their credit responsibly. When searching for your own card, carefully weigh the features of each and pick the one that can give you the most rewards. 

How to Get Quick Approval on Credit Card Applications

Getting a credit card used to be easy, but times have changed. Many creditors now have tough requirements that consumers must meet to get approved. Smart people know that sending applications cause “hard inquiries,” which can stay in the credit report for years. One simple trick is to simply evaluate the odds of getting approved for a certain card before wasting your time and the creditor’s as well.

Here are the things that you must do to get quick approval on credit card applications:

Understand Why Your Card Application Might Be Rejected

Once you find the card that contains all the features you are looking for, don’t sign up for it immediately even if it says you are pre-approved. Before you fill out the online forms or do the paperwork, you should know that there are common reasons why people get turned down. These include:

• Bad credit rating 
• Insufficient income 
• Delinquent accounts 
• Unstable financial history 
• Too many inquiries over a short period of time

The final point denotes that an individual is in desperate need of credit – in short, it is an indication that the applicant is short of cash. This is a type of risk that banks are not willing to take. After all, how can you repay the amounts that you charge against your card if you don’t have money?

Know Your Score

Your credit score plays a vital role in the quick approval of your application. Many issuers turn down those who have really bad scores. As such, before sending in any application form, make sure to check first your credit score so you will have an idea on whether you might get approved or not. To know your credit score, simply get a copy of your credit report and check from there. Your credit report is available to you for free once a year.

Improve or Maintain Your Rating

If you have excellent rating, be careful not to make a mistake that will cause your score to plummet. On the other hand, if you have bad rating, you should raise your score to help you get a card with favorable rates and qualities. Whatever your situation is, here are methods that will help your score:

• Pay on time 
• Don’t carry balances so you will not incur debt 
• Keep your credit utilization ratio low (30% at the most) 
• Don’t apply for too many cards at the same time 
• Pay all your debts and other loans from other companies 

In general, there are four groups of scores, namely:

• Excellent credit – Your score is 780 or above, allowing you to pick almost any card that you want.
• Good credit – You have at least 701 FICO score to 779. Most cash rewards cards will approve you at this point.
• Average or fair credit – Scores from 600 to 700 may get denied but there are cards that may consider such range.
• Poor or bad credit – If your score is under 600, you may not qualify for any card except for those that are meant for people with bad credit. Typically, they have higher APR and other fees. A secured card is also an option.

 The most significant thing to remember is to check the requirements of the card. Most lenders look at the score first so if you apply for a card that’s not suitable for your rating, you will definitely get rejected.

Questions to Ask Before Deciding to Get an Airline Miles Credit Card

Traveling is fun but only if you have enough money to spend for the activity. In this day and age, it is almost a necessity to look for a method that could alleviate the burden of huge expenses. One popular way of decreasing the costs of travel is through the use of airline miles credit cards. As you may have observed, these types of cards are especially made for air travel and are issued to provide people help in reducing travel costs when flying with a particular airline.

If you are thinking about getting a credit card and you are eyeing an airline card, there are a few factors that you should consider. First, ask yourself the following questions to determine whether this type of card is good enough for you:

Question No. 1: Are you a loyal customer?

Airlines typically have frequent flyer programs to attract new consumers and to retain old ones. As you continually use their services, you will build and rack up on your frequent flyer miles. Usually, these miles have cash values, which you can swap to airline tickets and the like. If you are a loyal customer, meaning you generally fly on a particular airline, an airlines credit card will do you good.

Question No. 2: Are you a frequent flyer or purchaser?

Many confused consumers get an airline card since they typically have higher bonuses than traditional credit cards. Before you get your own plastic, ask yourself whether you fly more or you purchase more. Those who regularly travel by air would benefit from an airline card without question. However, if you travel but you also make purchases with your card, the decision may be a bit difficult to make.

One good technique that you can practice is to examine the rewards programs of your card options. Look at the ways on how you will earn more points. There are cards that could be rewarding to both flyers and purchasers. It is up to you to make your choice, depending upon your needs and preferences.

Question No. 3: Are you ready for the costs?

Needless to say, airline cards are expensive. They have higher APRs than conventional credit cards. Most of them also have other fees, such as annual fees, late fees, and penalty charges among others. The APRs need not be a problem to those who dutifully pay their bills each month. Missing a payment is definitely not an option with this type of card. If you do, the points or miles that you have earned become insignificant due to the high penalty rates.

Some airline cards do not have annual fees, which make them a bit more advantageous than those that carry such fee. However, if you look at the rewards, a no-fee card usually have inferior rewards than those with annual fees. Calculate the total amount of rewards that you need to earn to eclipse the annual charge. That way, you could find out if the card is a true rewards card or not.

Airline credit cards are created for travelers who frequently travel with a specific carrier. It comes with highly coveted perks, such as free seat upgrades, priority boarding, and VIP treatment. However, they come with high fees so be sure you can afford the card and follow the strict rules before you sign up for one.

Cash Back Credit Cards from Discover

Discover is one of the largest card issuers in the United States. The company is well-known for its student cards and competitive offers. Discover takes pride in the attractive rewards programs offered in their credit cards. These make them one of the most highly rated companies based on customer satisfaction. If you are searching for cash back credit cards that provides high return, getting one from Discover will be your best option.

Discover® More® 

This is a great card if you would like to get the maximum possible cash back rewards for every purchase that you make. This card allows you to earn a cash back bonus on revolving categories, which include gas, department stores, restaurants, and many more. If you wish to sign up for a category, the process is quick and easy. Best of all, it is free. A true rewards card that gives more prizes without excessive charges, Discover® More® does not charge you with an annual fee.

Discover® Open Road Card

Anyone who wishes to gain cash rewards whenever they spend credits on gas and their meals should consider this card. Although this does not have a rewards ratio as high as Discover® More®, this has a low required minimum purchase to start acquiring points. In addition, you can redeem your rewards each billing period. There are no limitations on the number of points you can redeem and all purchases entitle you to an instant cash back bonus. Discover® Open Road does not have an annual fee and offers 0% purchase APR and balance transfer APR for more than one year.

Discover® Motiva Card

If you make it a point to pay all your bills on time, this card is great for you. This will reward you each time you pay your dues on or before your due date. The cash back bonus is equal to five percent of the card holder’s assigned interest charges. This is a huge bonus, so you should not fail to keep track of your monthly payments to receive the bonus every billing cycle. That is not all – you can still get more rewards if you use the card for your purchases. You can obtain cash back instantly for most kinds of purchases you make. You can also enjoy 0% APR on purchases for a set period of months upon sign up. 

Discover® Student More Card

For students seeking to get their first credit card, this may be their best option so far. Discover® Student More is designed to meet the needs of college students, especially those who are struggling to keep up with their dues. There are also revolving categories that you can sign up for on a quarterly basis. This card does not have an annual fee and has a low standard variable APR once the 0% APR on purchases expires.  Note that this cannot be used on balance transfers.

Whatever type of credit card you need, Discover has it all. Simply compare the features of each and carefully weigh which of them are likely to fit the lifestyle that you have. Doing so might help you get just the best cash back credit card from Discover. 

Understanding Credit Card Penalty Fees

Apart from learning the benefits and the rewards that you can get from your credit card, it always helps to know the penalty fees that you might pay. Such fees can easily be avoided, but many consumers still end up paying for them anyway. If you educate yourself regarding the subject, it will be easy for you to dodge these penalty charges.

Inescapable vs. Preventable vs. Hidden Fees

There are two types of credit card fees: those that you can avoid and those that you cannot. In general, the inescapable card fees include the following:

• Annual Fees – When your card requires you to pay such fee, there’s no escaping it. Though many card issuers waive this charge for the first year, you will have to pay for it the next year. 
• Foreign Transaction Fee – When you take your card with you overseas and make a purchase, most often you will be charged a foreign transaction fee. The fee can vary from 1% to 3% of the amount of your purchased item. Unless your issuer has made it clear to you that the particular card they are giving you does not charge a foreign transaction fee, you will have no choice but to pay for such fee. 
• Balance Transfer Fee – Unless you transfer balances during the 0% introductory period, this fee will stay in your account. 
• Cash Advance Fee – When you run out of cash, you can use your card to withdraw funds from an ATM. Often, you will be charged with a very high fee for such transaction.

 A card should not have “hidden” costs as ordered by the Federal Laws. The problem is that many consumers do not fully understand what the fees mean. In the card agreement, you will find how you will be charged and what instances will cause you to pay for the fees. There are times when such charges are printed at the back of the monthly statement while others only disclose these fees during the opening of the account. Therefore, it is easy for consumers to overlook the important details regarding the true cost of the credit cards.

On the other hand, preventable fees are those that you can avoid if you follow the conditions set by your card issuer. These include the penalty rates.

Credit Card Penalty Fees

There are different types of penalty fees that may be imposed on your account. These include the following:

•  Over the Limit Penalty Fees – Each credit cardholder is given a maximum amount that they can spend. This is known as the credit limit. If you go over the specified amount, you may be charged such fee.  It is easy to shun this penalty fee, but remember that your issuer will not inform you once you are about to go above your limit. This is your responsibility as a card holder. 
• Dishonored Payment Penalty Fees – If you paid through check and it bounced, the creditor may charge you a penalty fee. The same thing is applied to a debit account scheduled to make recurring payments but is rejected because of insufficient funds. 
• Missed Payment Penalty Fees – You will not be charged a penalty fee even if you don’t pay your balances in full though the interest builds up. However, failing to pay the minimum monthly payment on or before the due date will require you to pay the punishment charge. Some issuers even increase the APR from 2% to 6% either temporarily or permanently.

Credit card penalty fees will be there to stay but you can definitely avoid them. The technique is to never miss a payment, never go over your limit, and to always pay on time and in full. 

Why Issuers May Suspend a Credit Card Account

Having your card declined at the checkout counter can be alarming. Before you start panicking and fearing the worst, though, know that there can be several reasons for this. For one, it could be that your card issuer has only put your account on a temporary hold. During this period, you are not allowed to charge your purchases with your card. There are instances, though, when creditors cancel a card because of one or many compelling reasons. Note that all card issuers have every right to suspend a credit card account.

If you have had a credit card account cancelled, any of the following could have been the reason:

Card Dormancy

If you have not made any transaction with your credit card for some time, the issuer may decide to suspend your account. Years ago, when cardholders become dormant, they often charge fees for the inactivity. However, with the provisions set under the new CARD Act of 2009, creditors are no longer allowed to charge these fees. However, they are allowed to suspend accounts that have been inactive for a certain period. If you don’t want your account to be suspended, simply use it at least once every three months each year.

Payment Delinquency

Every card has a specified minimum amount that cardholders need to pay each month (unless they have a charge card). This is stated in your card agreement. If you fail to make the required minimum monthly payment even for just a single month, the card issuer may suspend your account. Some issuers may be more lenient, though, and may give you a chance to redeem yourself for up to 180 days. Nevertheless, if you miss the mark by then, you face the risk of having your creditor close or suspend your account.

Bankrupt Bank

If, by an unfortunate situation, your bank becomes unprofitable, they have the option to stop operating. This is bad news not only for the financial organization but also for the consumers. Most banks sell their card accounts to another issuer. In this case, your account will be temporarily shut down. You can reactivate your card by paying for it as if you are applying for a new card.

Miserable Credit Score

Universal default is no longer a threat to consumers, thanks to the CARD Act. This means that card issuers do not have the power to raise your interest rate simply because you were late in paying off a card from another issuer. However, even though this is the case, individuals whose scores suddenly plummet may experience account closure or termination.

Response Required

If your creditor has a new set of fees that will be soon imposed on your account, they will send you a notice regarding the upcoming change. You have every right to reject the new conditions. In return, the creditor also has the right to end your relationship with them through the cancellation of your account.

Fraud Suspect

This is the most typical reason why issuers suspend credit card accounts. If they have tracked down suspicious activities, your card will be put on hold. This is for security purposes but if this is your case, it is easy to reactivate your account. Simply contact your creditor and provide proof that you are the true owner of the card.

Suspension of card accounts can be damaging to your credit score especially if the accounts have outstanding balances. Contact the issuer as soon as you discover the account cancellation to immediately remedy your card’s status.

Top Reasons for Getting a Secured Credit Card with Rewards

If you have bad credit or you are starting to build your credit history, a secured card may be your best option for now. This type of credit card acts like a conventional card though it requires an initial deposit. There is also a low credit limit and they often come with high interest rates. Still, these cards work great especially if you are trying to reestablish your credit. Now there’s even more good news – you can earn rewards with a secured credit card.

Perhaps this may not be your first choice, but here are the top reasons why a secured credit card is a good selection if you can’t get approved for a traditional card:

A secured card helps build your credit.

One of the biggest problems of young adults and even adults today is that they cannot get an approval for their card application. This is because they have no history or at least a good rating to begin with. When you apply for a secured card, you do not need a high credit score since a credit background check is not required. Most applicants get approved quickly as soon as they apply for this card. As you can see, the process is smooth, fast, and easy.

You can get rewards.

Since this is a secured card with rewards, you naturally get incentives for signing up for the card and for using it. The rewards program may not be as stellar as the traditional cards, but since you cannot qualify for an unsecured rewards card, this is much better than not having one at all. Many major banks and card issuers have credit cards that let you earn miles or points during your first purchase and even bonuses when you renew your card after the first year.

You can’t spend more than you can afford.

As mentioned, this card requires that you make a deposit first before you can use the plastic. The deposit will determine how much your credit limit will be. Thus, you cannot go beyond the amount that serves as a bond. This saves you both cash and the headache since you can stay out of debt.

You can earn interest.

There are a number of secured cards today that place the deposit you have made into a savings account that holds interest. Instead of fearing the interest rate as you would when you have an unsecured card, you might actually like the interest here. Depending on the rate, you may earn extra money with your credit card.

Your good behavior is reported to credit bureaus.

Just like traditional cards, but not prepaid cards, your payment behavior will be reported to Experian, TransUnion, and Equifax.

Get rewarded for being a responsible cardholder.

If you pay on time and do not carry balances each month, you may become eligible for cards that reward dutiful customers like you. You may be able to receive bonus credits, cash, or gift items. If you maintain your good attitude, you can qualify for a credit limit increase. Soon enough, you will be allowed to switch from a secured credit card to an unsecured card.

How to Get Approved for Credit Cards for No Credit History

If you have limited or no credit history, you are not alone. In fact, one in every four adults has either nonexistent credit history or does not have enough credit activity to generate a credit score. This reality is from FICO itself, the very organization that manages and compiles credit scores. The problem is that you cannot have credit unless you start building credit. It is a catch-22 situation where you can never win. Well, almost.

Many banks and creditors have noticed the huge increase in the number of people who are new to the credit world. This is why they have developed and introduced credit cards for no credit history. Whether you have no credit or you have a “thin file,” you may just be approved for your first credit card.

Why Build Credit

Without credit, it is nearly impossible for you to acquire a loan. You need a good score to qualify for the best credit cards, to have a checking account, rent an apartment, or even to get a job. If you do not have credit yet, this does not necessarily mean that you have bad credit. You are simply a newbie and, thus, many card issuers may likely turn your application down.

The good news is that there are now a number of companies that are willing to give you a chance. You can apply for a card that is especially designed for individuals like you who do not have credit history.

How to Get a Card for No History

Here are some of the things that you can do to get approved for your first credit card:

1. Check your score. It is imperative that you know your score. You may already have credit, but are just not aware of it. Contrary to popular belief, credit is not obtained by simply getting and using a card. There are other ways that allow you to build your history, such as paying for your utility bills, other revolving accounts, and installment loans. You may have already obtained federal student loans, which do not need credit checks. 
2. Look for the right company. Not all card issuers include people without credit as their target consumers. It is important that you seek a business that is eager to dole out cards for the young adult or for adults who may not have been active on their credit activities.
3. Pick the best card for your situation. Do not be afraid to choose from your available options. While there may be limited choices for you, you can always find a card that fits your credit record.
4. Apply for the card. Once you know that you meet the requirements and that there will not be an investigation of your credit background, it is time to fill out the card’s application form. Make sure that you have pertinent details ready, such as your address, social security number, and your contact details.
5. Secured cards are an option. Getting approved for a secured card is easy as the acceptance rate is very high. It is quite rare for applicants to get rejected if they apply for a secured card. Note that you need to make an initial or security deposit to extend a credit line.

You may find it hard at first to get approved for a creditcard if you have no credit history yet. However, if you exert a little effort and perform a little research, you will find that there are actually a number of these cards designed specifically for people like you. If you only know how to find the right issuer and you already have an idea of what type of card you want to get, you may just find the perfect card that will help you to slowly build your credit. 

Things to Consider When Getting a Credit Card for Your Teen

Deciding whether or not you should give your teen a credit card is a big decision to make. You will be giving your young child the huge responsibility of managing his or her own finances. It can be quite scary, especially since many adults have fallen into debt nowadays. Teens that are not well informed about improper credit card use can face serious troubles, including debt. It is of great importance that as a parent you are able to guide your child in managing and using the plastic.

Picking the Right Card for Your Child

Once your son or daughter has come of age, it may be time for you to shop for your child’s first card. There are several credit cards for students that you can choose for your child. Here are a few things that you should reflect on while in the process of searching for the best option:

• Spending limit. High spending limits allow your child to spend more than he or she can afford. This could result to missing repayments and, eventually, debt. It may be a much better idea to go for a card that allows you to set the limit yourself. This enables you to control your child’s spending while giving him or her enough freedom to make purchases.
• Secured card. A secured card is a viable option for your teen, especially while you are still in the stage of teaching your child how cards operate. A secured card works just like a traditional credit card, but your child can only spend the amount that you have deposited in his or her account. If your child misuses the card, you always have the option not to make a deposit, thereby controlling how your child spends on his or her credits. 
• Joint card vs. standalone card. You can choose to give your teen either a separate card or a joint card. The latter is basically a card that is an extension of your existing one. With a joint card, you have the ability to monitor how your child spends the credits. When you see that your teen is savvy enough to be financially stable, you have the option to cancel the account connection and get your child his or her own separate card.
• Account number. Depending on the card that you have chosen, your child may be given his or her own card number if you ever choose a joint card. The other number can actually be beneficial for both you and your child in the event that you lose your card or it gets stolen. 
• Fees and Conditions. Do not forget to keep your eye on the card agreement. There can be terms and conditions that are too complex for your child to grasp. Make sure that you explain everything to your teen. Among the fees that you should watch out for are the annual fees, over the limit fees, finance charges, and the interest rates. It is always advantageous if your child completely understands what these fees are and how to avoid them. For instance, the interest rates are only levied on people who carry a balance. It is also wise to get your child a card that does not have an annual fee.

Remember that credit cards are not created equal. While there may be a number of cards that are made specifically for students, not all of them may fit your child's needs. As such, weigh things first carefully before deciding on a particular card for your teen.

American Express - A Major Credit Card Company

American Express is one of the largest card issuers in the United States. It is also recognized across the globe as a top credit card company especially designed for the rich and famous. But AMEX does not only cater to the wealthy; it caters to people with varying requirements. As such, whether you are a traveler, a businessman, or an individual simply looking for a card that you can use for your purchases, American Express may just have what you are searching for.

History of the AMEX Cards

American Express is best known for its credit and charge cards. However, the company actually started as a shipping firm back in 1850. People turned to AMEX when they needed to send large sized and valuable shipments since the US Postal Service only allowed letter sized packages. The company’s main customers were banks and brokers. In 1882, they went head to head once again with the US Postal Service when they issued money orders. In 1891, they issued the Traveler’s Cheque to allow those who travel abroad to enjoy an easier process of exchanging cash when they are in smaller cities. The Traveler’s Cheque was then accepted as a letter of credit. Soon enough, American Express became internationally renowned with the mentioned product and as a railroad company as well. However, they concluded their railroad services in 1917.

American Express was the first to come up with the idea of charge cards in 1946. But the Diners Club was the breakthrough product in 1950. Eight years later, American Express saw just how serious the concept of charge cards was, so they began issuing their first major charge card with an annual fee of $6. The fee was a dollar higher than the Diners Club, but it was a marketing strategy—to make AMEX the real premium charge card. Since then, AMEX has become a symbol for prestige and exclusivity.

Why American Express Cards are a Must-Have

AMEX is considered as a card issuer that provides the best customer service. The award-winning support it provides for its consumers never wanes and only grows stronger over the years. Moreover, American Express cards come with many benefits that only card members can enjoy. Among the popular ones include:

• Presales – Such are offered on select shows, where you can avail of tickets that are not even on sale yet. The tickets are only available to the card members.
• Preferred Seating – If you are a fan of Broadway shows, you can choose where to sit if you have an AMEX card. This is mainly available for card holders of Gold, Platinum, Centurion®, Delta Reserve, Platinum Delta SkyMiles®, and Corporate Platinum cards. You can call AMEX to inquire whether you can take advantage of this excellent offer.
• Rewards – Exclusive rewards are granted as well. You can use your points to earn tickets, gift items, and merchandise among others. To avail of the offer, you should have good account standing and enough points to cover the transaction.

American Express is a trusted name in the credit card industry. If you ever want to get a card that can help you with your everyday purchases or one that fits your lifestyle, an AMEX card may be right for you.

Quick Approval Credit Cards

Many lenders have realized that most consumers apply for a credit card because they want to purchase something as soon as they can. Because of this, the quick approval credit cards were born. The main issue with such a card is that the term “quick” or “instant” approval can be misleading. Before you go online and fill out a form, there are a few things that you have to be aware of first.

Quick Approval Cards Should Really Be Quick Decision Cards

As mentioned, the phrase “quick approval” can be confusing. Card approval generally means that this is an action taken or a situation where the creditor agrees that the consumer is creditworthy. The truth is that most of the applicants that send out their applications for a certain quick approval card get turned down in the end. Hence, instead of quick approval, you should think of it as “quick decision.” This is because you will immediately learn whether you have been approved or not. Typically, the waiting time will not exceed an hour. Most cards today, however, present only a 60 second delay on the decision-making process.

How to Get Approved Quickly

The most important things that creditors consider when approving applications are your credit report and your credit score. If you apply for a card that requires excellent credit and you do not meet such requirement, you can bet that you will get denied instantly. As such, if you want quick approval, make sure that you meet all requirements before you even fill out a form.

The process of approving applications has become fast because of the automated system used by many creditors. Most of the time, there is no human involved in the quick approval process. Everything is done electronically by the system.  In this regard, make sure that the credit score you have written on your application is excellent and that your report contains low to zero negative items. This will ensure that you will be given quick approval by the system.

Are Quick Approval Cards for People with Excellent Credit Only?

If you have poor credit rating, there is good news for you. The credit card market nowadays is very competitive. As a result, many issuers are willing to approve those people with low credit rating even though they possess high credit risk. This is due to the fact that card companies are more willing to accept credit risk than the possibility of not acquiring more customers.

If your application has been denied, though, you should not persist on getting a card. Limit the number of applications that you send out to avoid damaging your score. It is advised that you only send out two to three applications at a time to control the impact of hard inquiries on your report.

You Still Need to Wait

Once you get approved, you can start waiting for your card to arrive. Yes, the only quick thing about the whole procedure is the approval (or rejection) process. You will still have to wait before you could purchase the items in your wish list. You already know that you can only use a credit card for purchases if you have the actual card itself. Due to safety motives, card companies will not send you an email about your card number and details. Hence, you cannot make a purchase even if you only intend to buy an item online.

Credit Card Incentive Programs

Credit cards are great for purchases but they are made even better with their incentive programs. Most of the cards today come with a rewards program that grants you with many benefits as you use your card.  You have several options today – you can choose a card that gives you free airline tickets, free hotel nights, or merchandise. It is up to you to pick the one that suits you best while understanding the preset conditions associated with your card and its rewards.

How to Earn Rewards

Basically, you need to use your card to get rewards. There are rare cards that let you obtain incentives just by keeping your account. However, if you truly want to earn the most valuable rewards, you should keep on purchasing against your card. This may sound a bit expensive which is why you should pick a card that fits your needs.

For instance, if you are a frequent traveler, your card should reward you for purchasing airline tickets. This way, you do not have to modify your lifestyle just to obtain rewards. Another example is for those who are frequently driving on the road. Get a gas card to relieve yourself from the stressful gas price hike.

Existing Incentive Programs

Most programs today give you one point for every dollar you spend. But there are also others that let you earn more if you spend your credits on particular items such as medicine or groceries. The popular reward types nowadays include:

• Cash back – Some creditors will let you earn cash for the credits you have spent. You can obtain real cash or you can add the amount into your bank account. Others mail you a check at the end of the billing period. You also have the option to send money to your university alumni association or your favorite charity. 
• Sponsored rewards – Many issuers have now joined forces with other merchants. With this type of incentive program, you can shop or purchase at a specific store and you can get more exclusive rewards. 
• Travel incentives – If you earn enough points or miles, you can redeem them for airline tickets, resort or hotel stays, or even a vacation package. You can also use your rewards to decrease the total amount you need to pay for a particular brand’s service or product. 
• Gift cards or free merchandise – Most cards today offer free merchandise which can be a variety of products such as sporting equipment, meals, electronics, housewares, and gift cards from vendors. 
• Events – Sometimes, experiences are more powerful rewards than cash and other tangible items. There are a few cards available that let you meet your favorite athlete or your favorite band. You can even find credit cards that let you learn how to cook with a renowned chef.

Watch Out for Restrictions

Many consumers continue to chase after rewards without knowing that there are limitations on the amount that they can obtain. Make sure that you are aware about the conditions connected to the incentive program of your card. Some have expiration dates while others have point limits. Some even impose a fee when collecting the rewards. It always pays to read the terms and conditions written in your card agreement.

Balance Transfer Cards from American Express

Have you ever wondered whether you could transfer your balances to an American Express credit card? American Express has tons of cards to offer and many people wonder whether they can transfer their balances from another account to an American Express card. If you are one of these people, you are at luck! American Express, or simply AMEX, does allow the transfer of balances from another card to one of their own and even vice versa. The process, however, may not be as straightforward as other companies’ balance transfer structures.

The truth of the matter is that balance transfers are not AMEX’s specialty. After the Great Recession, it seemed like American Express has shifted away from offering cards for people with debt.

Transferring Your Balances from AMEX

One of the most important things that you should be aware of is that American Express does not have the authority to approve your balance transfers from AMEX to another card. In addition, you also cannot perform a balance transfer if both cards are issued by the same company. Hence, you cannot switch your balances to an AMEX card from another AMEX card.

This problem, though, can be avoided by finding a good balance transfer card from another issuer. Your main concern should not be the brand or the payment network (Visa or MasterCard). What you must do is to look at the length of the 0% introductory period and discern whether the timeframe is enough for you to repay your dues. There are cards that offer 6 months interest-free period on balance transfers and there are those that offer 18 months of 0% APR on balance transfers.

Transferring Balances to AMEX

Not all consumers are eligible to make a balance transfer. For you to know whether you can transfer your balances from another card to an American Express account, you should first call AMEX’s support hotline. The number can be found at the back of your AMEX card. Once you have been approved for the balance shift, you can start the transaction. Note that balance transfers are not automatically completed on the same day. You may need to wait up to 15 days for the transfer to clear. If everything is successful, you will be notified via mail.

A Few Things to Note

If you compare an American Express card, whether it is a credit or a charge card, with another card from another company, you will notice that your AMEX card only has 15 digits. The other card comes with 16 digits. Most card companies have systems that are created to recognize and validate balance transfer transactions from a 16-digit card. Some companies may allow you to enter “American Express” instead of the card number to complete your balance transfer transaction. If this is not permitted by your chosen card issuer, you may need to speak to their customer representative to explain your case.

If you have multiple cards with balances, you may need to pick a strategy that is best suited for your situation. For instance, you can choose to pay first your card with the highest interest and then work your way down to your other cards that have lower interests. This will make it easier for you to repay the rest of the balances, since the interest incurred will be much lesser once the one with the highest APR has been paid off.

How to Avoid Credit Card Risks Online

Credit card transactions performed online can expose you to a number of risks, such as identity theft and credit card fraud. These often happen when you transact with an unreliable merchant online or when you give out your credit card details to unscrupulous persons online or to non-secured websites. Whether you are a seller or a buyer, it is important that you be vigilant against the possible risks that you could face online.  Learn how to avoid these risks and learn to protect yourself from whatever fraud that may happen on the Internet.Below are some of the things you can do to ensure your protection and security:

For Consumers

The following techniques may help you protect yourself from all types of credit card risks online:

• Check the website. Only sign in and fill out the form at a secure website. Often, such websites have “https” in their URL.
• Beware of phishing scams. Many consumers make the mistake of responding to emails, text messages, or even a Facebook message that asks them for their credit card details. If you receive such a message, you should call your creditor for verification before responding to the message. Remember that most lenders don’t usually send Facebook or text messages.
• Use disposable numbers. This method is not entirely new. Disposable numbers are numbers that you can use for your transactions online. These numbers serve as an alias for your real card number, thereby protecting your real credit card details. Disposable numbers can be obtained for free.
• Confirm the authenticity of the merchant. Not all merchants can be trusted. Some will offer bogus products while others will make a promise that they will deliver the item that you have paid for. You wait for days just to find out that you have been scammed. Make sure that you check what other people are saying about the seller by means of checking out the ratings and reviews about the seller or the company. 
• Monitor your bills. One of the greatest features of a credit card is that it allows you to keep track of all your expenses. Check your statement regularly to validate the purchases you have made.

For Merchants

Consumers are not the only ones who are targeted by fraudsters. If you own a website and you accept credit card payments, here are a few ways to help you avoid card risks online:

• Beware of orders made late at night. According to studies, many fraudsters choose to transact and make orders during nighttime. 
• Look out for international purchases. All of a sudden you are getting orders from Israel, South America, or Eastern Europe. You might want to be careful in dealing with these “customers.”
• Be wary of high volume orders. Fraudsters will order several items and won’t even care about the bill since they don’t have the intention to pay for them anyway.
• Compare the addresses. Some card processing systems let you verify the address of the buyer and the one in the record. Make sure that they match to guarantee that you are transacting with a real person. 
• Accept credit cards only if the customer provides full information. Your customers should be able to give you their full name, complete home address, and their phone number. 
• Ask for the CSC. The credit card security code contains 3-4 digits, which the user must present to verify that they have the card in their hands. This code comes in different names: CVC2 (MasterCard), CVV2 (Visa), or CID (Discover and American Express).