Tag Archives: credit cards

Best Cash Back Credit Cards – Rewards They Offer – Who Has The Lowest APRs

Posted by on August 6, 2011 No comments

The charge card account industry has become a very competitive one to say the least. It seems as though any charge cards are willing to give up everything with exception of the CEOs first born son to get your business. This competition has lead to more and more cash back credit card account offers. Although cash back credit cards all offer 1 thing in common, CASH, they can be very different. I have compiled a list of the best cash back charge card accounts on the market in hopes that this will assist consumers in choosing the best credit card to fit their needs.

The #1 cash back charge card:

This may come to no surprise, however, the number 1 cash back credit card account is offered by Discover cards. The Discover More Card has great perks. With this card, you can earn from 5%-20% cash back on purchases from exclusive online shopping websites and at least 1% cash back from any purchase made on the credit card. Aside from the cash back, this charge card account offers balance transfers at a 0% introductory interest rate and low long term APRs. I have to say Discover is really outdoing themselves every time they release a new charge card account offer. Also, Discover is moving forward in the customer service ratings. As editor of www.JemCreditCards.com I receive emails all the time letting me know how banks are doing and I have to say all I receive with regards to Discover charge card accounts is excellent comments about their customer service.

The #2 cash back charge card:

The number 2 position goes to Chase credit cards. The Chase Sapphire credit card has to be one of the best that Chase has released in a long time. Although cash back is not the major reward offered with this charge card account, it is available. Another key aspect to this credit card is the interest rate. The Sapphire credit card account offers extremely competitive annual percentage rates for the reward credit card account market. Although cash back charge card accounts tend to have higher than average APRs, this one seems to stay competitive in all venues. The Sapphire card has multiple reward redemption offers most pertaining to travel and airfare. However, this is a great credit card account to have in your wallet.

The #3 cash back charge card

Taking the industry by storm, Discover has also taken the number 3 position. The Discover Motiva credit card account is a newer offer released from Discover. This card offers great rewards like pay on time bonuses, 1% uncapped cash back on purchases, and 5%-20% cash back on purchases from exclusive online shopping centers. Aside from the rewards as stated above, Discover has really pulled through as far as customer service is considered,

The 4 Best Balance Transfer Charge Card Accounts – What They Offer – Who Provides The Lowest Annual Percentage Rates

Posted by on July 24, 2011 No comments

Balance transfer credit cards have become a great way to keep banks on their toes when it comes to competing for your business. If you have built and maintained great credit scores, balance transfer charge card account accounts have become your way to keep lower interest rates throughout the life of your debt. I am going to go over the top 4 balance transfer charge card account accounts hopefully this list helps you to pick the best credit card for you:

Balance transfer credit card #1:

The balance transfer credit card account that takes the #1 position is issued by Discover credit cards. The Miles by Discover card is a great choice for a few reasons. First off this card offers a 0% promo annual percentage rate on balance transfers that lasts for 6 billing cycles. After the promo annual percentage rate, the standard interest rate on the card will be a low 10.99-16.99%. Aside from the APR, the reward system on this credit card is phenomenal. You can redeem your rewards points in many ways however the most common ways from Miles by Discover users are airfare, gift cards, and cash back.

Balance transfer credit card #2:

The #2 balance transfer credit card account is the Slate card from Chase. As with Miles by Discover, the Slate card also offers a 0% promotional APR. However, for balance transfers, this 0% offered lasts for a full 12 months. Another thing that is appealing about any Chase cards is the impeccable customer service offered. Chase is known for some of the best customer service ratings in the charge card industry. Finally, the Slate charge card is said to be the most secure credit card out there. With patented fraud protection guidelines Chase really did go all out on this charge card account.

Balance transfer credit card #3:

The balance transfer charge card account in third place is the Escape by Discover card. Much like the Miles card, Escape also offers a 0% promo annual percentage rate for 6 months on balance transfers. The long term annual percentage rate is also the same ranging from 10.99-16.99% depending on your credit. What really sets this charge card apart however is the reward system. Receive double miles on qualifying purchases and 1 mile for every dollar spent on the charge card. Also, reward redemption offers vary. With so many choices for reward redemption with this charge card account, you can’t go wrong.

Balance transfer credit card #4:

Taking fourth place today is a credit card account that is fairly new to the balance transfer industry. The IberiaBank Visa Select credit card has some very unique features. One of the great things about this charge card account is the long term low APR of prime (currently 3.25%) plus 4.25% this is one of the lowest long term annual percentage rates in the credit card account industry to date. The only real draw back to this credit card account is the application process. To be approved for this credit card you must not only have excellent credit but, you must also prove your income which in some cases can be a bit annoying to consumers who have paid their bills on time every time.

Quite A Bit Of Facts To Help People Understand Charge Card Interest Rates

Posted by on July 24, 2011 No comments

If you are a United States consumer, then you are well aware of credit card accounts. It is hard to get around these days without that valuable piece of plastic. This is why many people are finding themselves searching for credit card accounts on a daily basis. The only problem is when consumers fill out credit card applications, they don’t quite understand the different types of credit card interest rates.

The first and most important APR that Americans should be aware of when filling out a credit card application is the standard APR. The standard APR for charge card accounts is also known as the purchase interest rate. This is the rate of interest that will apply to most transactions made using the credit card. If you are not doing a cash advance or balance transfer and you have not defaulted on your credit card account, your purchase will be charged interest according to the standard annual percentage rate.

The next type of interest that people should be aware of is the default rate. The default rate only applies to balances if a consumer defaults on the credit card account. Late payments, spending more than the allowed credit limit, and missed payments are all reasons that people would have a default annual percentage rate on their account. Although, it does take some negligence on the people behalf to end up with a default APR, it is still very important to be aware of and agree to what the default APR is on your new account.

Next is the balance transfer annual percentage rate. A great deal of credit card offers come with a balance transfer offer attached to them. This means that Americans are able to use their new balance transfer credit card to pay off old high interest credit card debt. The balance transfer annual percentage rate is usually one that lasts for a short period of time and is very low. If you are looking for a credit card for the purpose of processing balance transfers, make sure that you are going to receive a 0% balance transfer APR. If the card you are looking at doesn’t have a zero percent annual percentage rate, I’m sure that you can find a better offer.

Finally, lets talk about the cash advance APR. Some credit card companies will allow consumers to use their credit card to take cash out of the ATM much like using a debit card. Transactions that include receipt of cash by the consumer will be placed under the cash advance APR. Keep in mind that cash advance annual percentage rates tend to be higher than standard APRs on charge card accounts.

This article is brought to you by Joshua Rodriguez. Joshua Rodriguez is the marketing specialist for Wealth Creations Network and JemCreditCards.com. In this article, you will find links titled Joshua Rodriguez. Click them to learn more about this individual!

Protection For Credit Card Holders

Posted by on May 29, 2011 No comments

The Federal Reserve has come up with some new rules to protect consumers from a list of abusive lending practices.  The changes aren’t in effect yet, and may not actually go into effect.  It’s worth looking at the proposals, though, to understand what’s been going on just lately.  If you haven’t been paying attention, you most likely have no idea what the charge card companies can legally do to you.
The things that would be prohibited would be:

Increasing the rate on a pre-existing balance

At the moment, there are pretty much no rules about this.  Your credit card agreement probably says how they calculate the rate–but it also says that they can change the agreement at any time, including the part on how to calculate the rate.  Many card agreements also provide for you to “decline” to accept changes–but if you use the card after they send out the notice of changes, that’s the same as accepting the new agreement.  And some cards don’t even offer that protection–they can raise the rate for any reason, or for no reason at all, and there’s nothing you can do about it except pay the new rate until you manage to get the debt paid off.

Applying payments to maximize the interest charges

Your credit card account agreement says how they’ll apply any payment that you send in.  It matters, because parts of your balance are at different rates.  If you read the details, things are often set up to pay off low-rate parts of the debt first, leaving you paying on high rate debt for as long as possible.  Under the new rules:

Banks would be required to give consumers the full benefit of discounted promotional rates on charge cards by applying payments in excess of the minimum to any higher-rate balances first, and by providing a grace period for purchases where the consumer is otherwise eligible.

Imposing interest charges using the “two-cycle” method

The “two-cycle” method is a set of rules for calculating the interest owed in such a way that you don’t get any “grace period” if you don’t pay your card off in full every month.  If you carry a balance all the time, it doesn’t matter.  But if you usually pay your card off, but occasionally take an extra month to get back to zero, the two-cycle method can very nearly double the interest you pay.

The rules would also require that banks give card holders a “reasonable” amount of time to make payments.  It used to be that card holders got almost 30 days–basically, you had until the day they printed out your next bill.  Credit card account companies, though, have been shortening the grace period, especially for their riskier customers.  For some cards, it’s gotten to the point where you really have to stay on top of your bills every day, in order not to be constantly late on your payment.

Of course, the only sensible thing to do with charge card accounts is to pay them off every month.  Credit card accounts are a great payment mechanism, but a terrible way to borrow money.  Everybody knows that.  And these new rules wouldn’t really offer much to the people who do use their charge cards to borrow cash.  

What these new rules would do is protect consumers who fail to run an error-free bill-paying and agreement-reading system.  As things stand right now, someone who pays every bill in-full, but who is only 99% successful at paying on-time, could easily end up owing hundreds of dollars in fees, penalties, and interest.  These rules would ease up some of the worst of the “gotcha” effect.  (And it certainly seems that some banks have been changing their rules specifically to set their customers up to make occasional small errors–and turn those errors into big fees for the bank.)

The rules are open for public comment.  No doubt the big banks will be commenting.  They’ll have statistics that show that customers who make a late payment are much more likely to default than customers who are never late.  Maybe a few consumers will comment about the basic unfairness of agreements that the charge card companies can change at any time.

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Understanding Fees Associated With Credit Cards

Posted by on May 29, 2011 No comments

Annual fees, grace periods, balance transfer options…it’s a wonderful world of charge card jargon out there, and depending on your needs and planned uses for charge card accounts, it pays to look at your options.

Following are the various ways in which credit card account companies can get some money out of you:

Interest Rates

All charge card accounts levy an annual percentage rate, the main difference being the percentage charged. Obviously you want to choose the card with the lowest rate. If you already have a card with a higher interest rate but that you like for other reasons, then try calling and asking for an interest rate reduction. According to a 2002 Public Interest Research Group study, 56% of people who called their charge card issuer and asked for a reduction were successful.

Early Interest Posting Dates

If you are in the market for a new card, find out if interest is charged from the date the charge is posted, or the date of purchase. Most will now charge from the date of purchase (which is usually a few days earlier than the posting date), but if you can find one of the other kind, it may be worthwhile.
This is only really an issue if you plan to carry a balance on your charge card account at any time, which if it can be avoided, would be preferable.

How Interest is Calculated

Some cards will charge interest on the balance owing at the month or billing cycle’s end. Makes sense, right?

Well, there is a growing trend now to charge interest instead on the average daily balance. So if you charge $1,500 in September, and pay $1,000 of it off on the due date, the following month you will actually be charged interest on the $1,500 average daily balance instead of the actual $500 left owing.

Grace Periods – or Lack Thereof

Usually, a grace period will allow for a responsible credit card account user to pay off all their purchases within 24-30 days without paying any interest.

But as some readers pointed out in the comments on another article, even those dutiful credit card users who pay off their balance in full each month can sometimes get duped by circumstance (like the bank processing a transfer late) and miss the payment due date by a sliver.

For those consumers above and for those who regularly carry balances, even grace periods won’t save you: if you have an outstanding balance, you are charged interest on new charges from the date of purchase. (All the more reason not to carry a balance)!

Nuisance Fees

In a world of increasing fees for every little thing from booking airline tickets to doing your banking, charge cards are no exception to this bandwagon. The latest in nuisance fees can include:

Late payment fees (as high as $40)
Over-the-limit fees (as high as $25)
Inactive account fees
Not carrying a balance fees (or carrying a balance under a certain amount)
Monthly fees that are a percentage of your credit limit
Annual flat fees
Balance transfer fees
Credit limit increase fees
Set-up fees
Return item fees
Fees for paying by telephone

…and on it goes.

Cash Advance Interest Charges

Many cards charge higher annual percentage rates on money advances in addition to transaction fees.

What They Have to Tell You About

When you are searching for a new charge card account, the following items are required by law to be disclosed:

Annual Interest Rate (also called APR or annual percentage rate)
The teaser or introductory rate, along with the details of when and how the regular rate kicks in
How the variable rate is determined (if applicable)
Penalties for late payments
Annual, periodic, or membership fees
How the balance is computed for interest purposes (ie: average daily balance or balance owing methods)
Minimum charge
Grace period (the period of time you have to pay off the balance without incurring interest)

My Card Sucks! I Want To Cancel

If after reading this you think you have one of those cards with too many fees, you can cancel it. However, there is a chance that it may reduce your credit score. Check out FICO to find out what FICO scores consider, as well as how best to understand your credit score.

To that end, you should be aware of soft and hard closes, and how they affect you.

Soft Closes

With a soft close, the charge card company will acknowledge that you want to close out the card, but they will automatically reactivate it if charges go through. Their rationale is that they are saving you embarrassment of the card being rejected if you happen to be out shopping and inadvertently whip their card out!

Hence, a soft close will also often affect your credit score and ability to qualify for large loans later on if the lender does a credit check and sees that you have all sorts of credit available to you, but doesn’t see that the credit is soft closed.

It also makes you vulnerable to fraud, since if a professional steals your identity, they can order another card from a soft-closed account and start charging.

Hard Closes

Ensuring your account is hard closed entails a little more follow-up work, but can pay off in the end. You must first request a hard close when you are cancelling the card, and follow up with a confirming letter. In your letter, tell the credit company to report “closed by consumer” to the credit bureaus as well, and keep copies of everything.

Some issuers will refuse to do this: their policy might instead be to process a soft close first and a prescribed time period, at which point it reverts to a hard close. Find out how long that period of time is, and ensure that the account is hard closed with a letter at the end of that time.

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