Tag Archives: Best

The 5 Best Secured Credit Cards

Posted on February 18, 2012 by admin| Leave a comment

Secured credit cards have a bad reputation, and most of these products deserve it. Too often, the companies that offer secured cards do so to prey on those with poor or little credit history by charging exorbitant interest rates and outrageous fees. Yet, the more I researched these products, the more convinced I became that the concept of a secure credit card is a sound one. Using the right product from a reputable institution, holders of secured cards can enjoy many of the benefits of standard credit cards that they might not qualify for. (See also: The Best 0% Balance Transfer Credit Cards)

How a Secured Card Works

Many loans are secured by collateral, such as those taken out for the purchase of a car or a home. In contrast, standard credit cards offer borrowers loans that are not secured by any property or deposits that can be repossessed in case of default. Therefore, applicants for unsecured loans must first be able to show banks a significant credit history. On the other hand, almost any applicant will qualify for secured credit card. With these products, the cardholder must first pay a security deposit that protects the bank against the risk of default. In all other ways, a secured card operates just like a standard credit card. Cardholders receive monthly bills that they must pay on time or incur interest and penalties. At the same time, banks will report payment information to the credit bureaus, allowing cardholders to build their credit history.

What to Look for in a Secure Card

Your first priority in shopping for a secured card will be to stick with a reputable bank and avoid the numerous products with high interest rates and unreasonable fees. Shoppers should look for a card with a low annual fee and perhaps one that might earn interest on their deposit. Finally, applicants should be aware that not all banks guarantee acceptance, so those with outstanding liens or a recent bankruptcy will not qualify for some of these cards.

1. Orchard Bank Secured MasterCard

credit cardNo matter how bad your credit is, you will be relieved to learn that Orchard Bank approves everyone after confirming the identity of the applicants. Once approved, customers will have to provide a $ 200 minimum security deposit. Their standard interest rate of Prime plus 4.74% is fantastic not just for secured card, but is lower than most standard cards as well. There is no annual fee for this card the first year, but there is a $ 35 annual fee after that.

Click here to apply now

2. Citi Secured MasterCard

credit cardThis secured card comes with many of the benefits of a standard credit card including car rental insurances and retail purchase protection. In addition, Citi places cardholder’s deposits in an interest-earning account. The standard interest rate is equal to the Prime Rate plus 14.99%, and there is a $ 29 annual fee for this card. Unfortunately, Citibank says that it does not automatically accept all applications for this card.

Click here to apply now

3. Wells Fargo Secured Visa Card

credit cardWells Fargo offers their secured card to applicants with any credit history, so long as they have not declared bankruptcy in the last 12 months and have no unsettled liens. Once accepted, cardholders must make a deposit of between $ 300 and $ 10,000, which becomes their credit limit. This card comes with standard Visa benefits including auto rental insurance. Cardholders who carry a balance will incur interest at a rate equal to the Prime Rate plus 15.74%. There is a $ 25 annual fee for this card.

Click here to apply now

4. Capital One Secured MasterCard

credit cardWith this card, a minimum security deposit of $ 50 will earn you a $ 200 credit limit. Since Capital One is extending you a credit line in excess of your deposit, it will consider the applicant’s ability to pay before acceptance. This card’s standard interest rate is equal to the Prime Rate plus 19.65%, and there is a $ 29 annual fee. Like all Capital One cards, there are no foreign transaction fees. This is a great feature not just for vacationers, but also for immigrants who have no credit history and may travel outside of the country to visit family.

Click here to apply now

5. U.S. Bank Secured Visa Card

credit cardThis card offers customers the ability to earn interest on their security deposits. Although the rates these days are not great, it is still nice to feel like the interest earned is going to you instead of the bank. On the other hand, if you carry a balance, you will incur interest at the rate of prime plus 17.74%. There is a $ 35 annual fee for this card.

Click here to apply now

When You Should Get a Secured Card

Those who have poor credit or no credit history may be tempted to just wash their hands of the entire credit card business. Unfortunately, that would be a mistake. Obtaining a secured card and making on-time payments is a critical way to rebuild one’s credit. Whether it is right or wrong, companies today use credit scores for background checks when hiring and for setting rates for services such as car insurance. Furthermore, travelers will find it difficult or impossible to reserve a hotel room or rent a car holding a credit card, even if it is a secured card.

By choosing the right secured card, you can build your credit history while enjoying many of the benefits of standard credit cards.

Note: Some links contain affiliate codes.


Wise Bread

Posted in Money

Tagged , , ,

5 Best Credit Cards for People With Excellent Credit

Posted on February 5, 2012 by admin| Leave a comment

If you have excellent credit, the chances are you already know it. You always pay your bills on time, and you are very unlikely to carry a balance on your credit cards. In return for your responsible nature, you are deluged with offers for more credit cards. Overwhelmed and disillusioned with all of these choices, many of you are content to remain loyal to whichever card you had been using for years. It’s easy, comfortable, and hassle free to use the same card in perpetuity. But by doing so, are you betraying the sound principals of financial management that earned you your excellent credit score? (See also: Surprising Things That Can Kill Your Credit)

Snap Out of It!

Those with excellent credit are likely to be using their cards simply as a method of payment, and they may be earning some additional rewards. Nevertheless, this practice is akin to storing money in a bank for safekeeping, without concern to the returns being accrued on your investment. The reality is that like savings, credit card spending should also produce a competitive return. Although saving is always a preferable activity to spending, those with excellent credit are leaving money on the table by not attempting to maximize the returns on their credit cards.

The Ways to Earn High Returns on Spending

The best way to compare credit card rewards is through the percentage of value earned per dollar spent. For example, 1% cash back is the bare minimum that you should expect from any reward card. If you are earning that amount or less, it is as unwise as closing on a mortgage with a higher APR that what is available. The two most common ways to earn credit card rewards are in the form of cash back or loyalty points such as frequent flier miles. If you are earning points or miles, you should assign a value to them in order to assure you are receiving the returns you deserve. The more value you earn per dollar spent, the better you are doing. Finally, there are a few cardholders who do have excellent credit, but may carry a balance from time to time. These people should always carry a credit card with the lowest APR on the market.

The Best Cards for People With Excellent Credit

Each of the cards on this list are only offered to those with excellent credit, but they offer very high rates of cash back or points. The exception here is the Simmons First card, which as the card with the lowest interest rate on the market, is the best choice for those who carry a balance. There is no one card that is perfect for everyone, but each has its unique advantages that appeal to different types of cardholders.

Fidelity Investment Rewards American Express Card

At the top end of cash back rewards cards are those rare products that earn 2% cash back on all purchases, all the time. Fidelity offers several versions of its American Express card that do just that. In this case, the cash back is returned to the Fidelity account of your choice, such as a Fidelity IRA, Fidelity-Managed 529 Account, Brokerage Account, or Cash Management Account. There is no annual fee for this card and only a 1% foreign transaction fee.

Click here to apply now

Capital One Venture Rewards

Capital One offers this card only to applicants with the best credit scores. By using this card, customers can earn two of their “miles” for each dollar spent. Fortunately, their miles are not like those of any airline; they can be redeemed for one cent each towards a statement credit against any travel related expense. The end result is that this card consistently returns 2% cash back as statement credits so long as the cardholder can claim at least that amount in hotels, car rentals, or airfare. There is a $ 59 annual fee for this card that is waived the first year, and like all of their cards, there are never any foreign transaction fees.

Click here to apply now

Sapphire Preferred From Chase

Chase has been making an all-out effort to court those with excellent credit histories, and the Sapphire Preferred has quickly become their flagship product. Chase offers a single Ultimate Rewards point per dollar spent on most purchase, with double points for spending on travel and restaurants. Triple points are earned for spending on travel through their Ultimate Rewards site, and all points earned are eligible for a 7% bonus at year’s end. Once earned, points can be redeemed at a rate of 1.25 cents each towards travel, or one cent each towards other experience and merchandise awards. Finally, Ultimate Rewards points can be instantly transferred to points or miles in the program’s several different airlines and hotels. In fact, you can even transfer points to other people’s accounts, a feat impossible with most other programs. There is a $ 95 annual fee for this card that is waived the first year, but there are never any foreign transaction fees. Finally, this card is made of some type of plastic and metal sandwich giving it a heavy, solid feel that always draws comments when I use it.

Click here to apply now

Simmons First Visa Platinum

Not everyone with great credit is in a position to pay all of their credit card balances in full each month. Cardholders with near-perfect credit who occasionally carry a balance should do so on the card with the lowest standard interest rate on the market. The Simmons First Visa Platinum offers an APR equal to the Prime Rate plus 4%, the lowest rate that I am aware of. There is no annual fee for this card, but there is a foreign transaction fee of 2%.

Click here to apply now

Starwood Preferred Guest Card From American Express

Here is the card for those who understand and appreciate the value of hotel points and airline miles. The Starpoints earned by this card can be redeemed for any available standard room at any Starwood Hotel, including Sheratons and Westins. These points are extremely valuable because there are no blackout dates or capacity restrictions in the program. Alternatively, your Starpoints can be exchanged for miles in the programs of thirty different carriers around the world. Since each of those carriers can have dozens of partners, the award options are nearly limitless. Redeem your points for miles, and use those miles for premium class international travel, and it is easy to see returns of 5% or higher on each dollar spent. There is a $ 65 annual fee for this card, and American Express does charge a 2.7% foreign transaction fee.

Click here to apply now

If you have excellent credit and you are not getting at least 2 cents in value for each dollar spent, or the lowest interest rate on the market, you need take a serious look at the cards on this list. As a smart consumer with excellent credit, you should always be receiving the highest return on not just your savings, but on your spending as well.

Note: Some links contain affiliate codes.


Wise Bread

Posted in Money

Tagged , , , ,

5 Best Gas Rewards Credit Cards

Posted on January 27, 2012 by admin| Leave a comment

Americans are having a tough time adjusting to the reality of purchasing gasoline at $ 3.00 a gallon or more.  When possible, we’ve bought more efficient cars, moved closer to work, and taken fewer road trips. Nevertheless, gasoline continues to consume a disproportionate amount of our budgets, and we are always looking for a way to save anything we can in this critical area.

How to Pick the Best Gas Card

First, you want to consider the savings you will realize from each card. Some products offer a percentage off your total purchase, while others grant a fixed amount of savings per gallon. Next, think about where you buy gas and which stations in your area have the lowest price. Some cards are specific to a brand, while others allow you to choose most stations except for warehouse stores. Finally, consider the other benefits of each card. Several of the cards on this list offer excellent rates of cash back for purchases beyond gas, while others do not. This is important if you plan on using this card for more than just fuel purchases.

A few years ago, I signed up for a SimplyCash American Express Business card that offered fantastic 5% cash back on all gasoline purchases. Sadly, that deal is no longer offered, but I was able to save a few hundred dollars using that card. These days, a credit card that offers higher rewards for gasoline purchases can still slash your price at the pump by 15 cents a gallon. Here are my top picks.

1. Visa Platinum Cashback Rewards Card From PenFed

ChasePenFed is the Pentagon Federal Credit Union. While they are not well known, and they are not even a bank, they do offer some of the most consumer friendly products on the market. Their Platinum Cash Rewards card offers 5% cash back on all gasoline purchases. Unfortunately, this card offers a paltry .25% back on other purchases. On the other hand, PenFed has a great reputation for low fees. This card has no annual fee, cash advance fee, foreign transaction fee, or over the limit fees. To apply for this card, you must be a member of the credit union, which is open to current and former members of the military, many government contractors, their relatives, and household members. Even if you do not qualify on this basis, you can do so by making a one-time, $ 15 donation to a military charity.

Click here to apply now

2. Costco TrueEarnings Card (Business and Personal)

ChaseFor those familiar with this brand, the word Costco is synonymous with savings. The consumer version of the Costco TrueEarnings card offers 3% cash back on gasoline, while the business version offers 4%. Costco limits the higher returns on gasoline to the first $ 3,000 each year for the consumer card, and $ 6,000 annually for the business card. Other benefits included 2% cash back on travel and at restaurants, along with 1% cash back everywhere else. Strangely, the 1% rate also includes purchases from Costco, an odd feature in a world where extra rewards are typically awarded for purchases from the co-branded merchant. Another odd fact about thing about this card is that the rewards are issued in the form of a voucher each February. You can use your voucher for purchases at Costco stores, or redeem it for cash at their customer service counter. If your account is closed before February, your forfeit all of your rewards. There is no fee for this card with your paid Costco membership

Click here to apply now

3. Amex BlueCash Preferred

ChaseHere is a top notch, all around rewards card that happens to offer a competitive 3% reward rate on gasoline purchases (it is also the best credit card for groceries). While there is no limit to the amount of cash back you can earn, this higher rate does not apply to fuel purchased at superstores and warehouse clubs like Costco and Sam’s Club.  Other rewards include 6% cash back at supermarkets, 3% cash back at department stores, and 1% cash back on all other purchases.

Click here to apply now

4. Citi ExxonMobil Mastercard

ChaseCiti and ExxonMobil are two giants of banking and energy, and their ExxonMobil MasterCard offers competitive cash back on both gasoline and other purchases. Cardholders will receive a 15 cent per gallon rebate on Exxon and Mobile purchases at over 10,000 nationwide locations.  Essentially, customers receive a larger percentage of cash back when the price of gas goes down, and relatively fewer rewards when the price goes up. Customers will receive another 2% cash back on their first $ 10,000 of eligible purchases each year, and 1% cash back after that. Cardholders receive a free Speedpass device to make quick purchases, and there is no annual fee for this card.

Click here to apply now

5. Chase Marathon Mastercard

ChaseWhile Chase is a major national credit card issuer, Marathon only has stations in 18 states in the Southeast and Midwest. Nevertheless, this card offers a competitive 5% rebate on all purchases that is applied to future Marathon charges. Other charges also return a reasonable 1% cash back. There is no annual fee for this card.

Click here to apply now

The Downsides of Gas Cards

Now that you know about all the great deals out there, pause for a second and consider if one of them is really right for you. As with all reward cards, you are not saving any money unless you are paying each statement in full and on time. To do otherwise ensures that you will owe more in interest that you ever earn in cash back. Also remember that you are not saving much money if you have to pay a higher initial price or drive further to take advantage of credit card rewards. Finally, consider how much money your household can save with one of these cards over the course of the year. That amount has to easily exceed the cost of any annual fees, or the point is moot. 

Note: Some links contain affiliate codes.


Wise Bread

Posted in Money

Tagged , , ,

Best Rewards Card: The Starwood Preferred Guest from American Express

Posted on January 8, 2012 by admin| Leave a comment

If you ever run into me at a social gathering, don’t get me started taking about credit cards because I might never stop. After a few minutes speaking about some of the great reward credit cards available, I am often interrupted by a single question — “Which one is the best?” I have participated in this conversation so often that I now just blurt out “Starwood” before you can complete your sentence. (See also: The Best Travel Rewards Cards)

Why the Starwood Preferred Guest Credit Card?

AmexSince I learned how to use credit card rewards to travel the world, American Express’s Starwood Preferred Guest card has become my favorite product, hands down. For each dollar I spend with this card, I earn one point in Starwood Hotel’s Preferred Guest program. Starwood is the parent company of several different hotel chains, including Sheraton, Westin, and Le Meridian. Once points are earned, members have nearly endless options to redeem them for free hotel nights, frequent flier miles, or other valuable awards. Of course, there are several other credit cards that offer hotel points, and many of those programs appear to have similar redemption options. But compared to its competitors, Starwood points offer unsurpassed value and flexibility. In fact, each Starpoint is worth far more than any airline mile or credit card reward point, let alone other points from competing hotel chains.

Generally speaking, for each dollar I spend using the Amex Starwood card, I’m getting roughly 3 to 5 cents worth of free hotel stays or airfare back from the Starwood network. Other networks generally fall far short of this, providing me only with 1.5 cents back. Of course the 3 to 5 cents number is highly variable, and may go up or down depending on whether you are traveling during peak season (when you might get back more bang for your buck) or during off-peak season (when you might get back get less).

Using Starpoints for Free Nights at Hotels

Free night awards at Starwood hotels begin at a mere 2,000 points for a weekend stay. Although award nights at higher-end properties can cost as many as 35,000 points, Starwood has many luxury properties where an award night can be redeemed for 10,000 points or less. For example, my family recently stayed three nights at the Sheraton Four Points in Milan Italy for 10,000 points per night. We also have a three night reservation at a Sheraton Suites in Ft. Lauderdale, Florida that cost a total of 10,000 Starpoints. In contrast, a single award night with the Marriott rewards program starts at 7,500 points and goes up quickly from there. Furthermore, Starwood imposes no blackout dates or capacity restrictions on its hotel awards. If they have a room sale, you can instantly redeem your points for an award stay. Finally, when you redeem a four night stay with your Starpoints, the fifth night is free.

Transferring Starpoints to Airline Miles

I have met people who have redeemed hundreds of thousands of Starpoints without making a single reservation for an award night. These are travelers who earn Starpoints only because they can transfer them to miles in frequent flier programs. Award travel aficionados like me have discovered that Starpoints can be redeemed for miles in the frequent flier programs of over 30 different airlines plus Amtrak Guest Rewards points. When you realize that most of those airlines allow you to use their miles to book award flights with at least a dozen different partner carriers, you start to understand how this one credit card is the gateway to a staggering array of award travel opportunities. I have redeemed Starpoints for miles with carriers that I have never flown, which I used for award flights on their partner airlines that I had yet to travel on. I can also use a few thousand Starpoints to top off my various frequent flier accounts when I don’t quite have enough miles for the award I need.

If this flexibility wasn’t enough, mileage transfers also offer superior value. Starpoints are usually redeemed for miles at a 1:1 ratio, but when you redeem 20,000 Starpoints at once, you get a 5,000 point bonus. So in most cases, these bonuses allow you to earn more miles per dollar spent by using your Starwood card than you could by using that airline’s own co-branded product. In contrast, the Priority Club Rewards program run by the Intercontinental Hotels Group (the parent company of Holiday Inn and others), allows you to transfer points to a dozen different airlines, but requires you to redeem 10,000 points to earn 2,000 miles.

Other Benefits of This Card

When cardholders make any purchase at a Starwood property, they will earn a minimum of four points per dollar spent. Additionally, those who spend $ 30,000 in a calendar year will be upgraded to the Gold level in the Starwood Preferred Guest program. With this status, card members will earn five points per dollar spent at Starwood hotels while enjoying benefits such as room upgrades and late checkout privileges. Finally, award nights and mileage transfers are just two of a dozen different redemption options that include merchandise awards, charitable contributions, or the direct booking of flights. Having considered each of these other options, I have always found award nights and mileage transfers represent the most valuable utilization of my Starpoints.

The Downsides of the Starwood Card

For all my enthusiasm, I still realize that no credit card is perfect. For starters, those who carry a balance should not be trying to earn rewards with any card, let alone this card that does not offer competitive interest rates. When you don’t pay your balance in full, you will accrue interest at a variable rate equal to the Prime Rate plus 11.99%-15.99%, depending on your credit worthiness. Additionally, American Express cards are not accepted everywhere, so I always carry a Visa or MasterCard as well. Despite using this card to earn award travel to other countries, I never use it outside the United States. That is because all charges processed outside of the United States will incur American Express’s onerous Foreign Transaction Fee of 2.7%. There is also an annual fee of $ 65, which is waived the first year. Finally, this card is a terrible way to earn United Airlines miles. Due to United’s close relationship with Chase, though which it offers its own co-branded cards, Starwood and American Express are only able to offer a single MileagePlus mile for every two Starpoints redeemed.

The Best Rewards Credit Card

If you are an experienced collector of points and miles, or if you are just starting your quest for award travel, you might as well just sign up for this card now. That way, you will earn fantastic awards, while I can feel free to talk about something else the next time we meet.

Click here to apply for the Amex Starwood card

Note: Some links contain affiliate codes

To the Credit Card Guide


Wise Bread

Posted in Money

Tagged , , , , , , , ,

The Best 0% Balance Transfer Credit Cards

Posted on December 30, 2011 by admin| Leave a comment

Those who live under a mountain of credit card debt quickly realize that their suffering has two components. First there is the principle, the actual amount of goods and services that was charged to their credit card. Secondly, there are the financing charges imposed each month on their balance. With each statement cycle, their average daily balance is multiplied by one twelfth of the card’s Annual Percentage Rate (APR). Therefore, if you owe $ 10,000 on a card with an APR of 12%, you are incurring $ 100 in interest each month. Due to the effect of compounding interest, the finance charges incurred each month add to your balance, resulting in more interest being accrued with each passing month. (See also: The Best Low Interest Rate Credit Cards)

How a Balance Transfer Works

To help relieve the burden of debt and acquire new customers, banks have long offered credit cards with a 0% promotional APR, for a limited time, on balance transfers. Applicants who qualify for a new card with these promotional rates can have their existing balance paid off by their new card. During the time that the 0% promotional rate applies, interest is not being accrued on the balance transferred; however, the amount transferred is almost always subject to a one-time balance transfer fee. This fee, typically 3% – 5%, is added to the new balance. Also, cardholders are still responsible for making minimum payments on their account. New transactions may incur interest at the standard rate, although in some instances, the 0% promotional rate also applies to new purchases as well. Finally, no matter how much you are struggling with your debt, it is critical that you continue to make all of your payments on time, as only applicants with the excellent credit will qualify for most of these excellent promotional credit card offers.

How to Save Money With a Balance Transfer

First, it is crucial that those seeking a balance transfer do so as part of a comprehensive plan to eliminate their credit card debt. Such a plan should focus on maximizing their income, minimizing their expenses, and regularly paying down their entire credit card before the promotional rate expires.

As part of an overall plan to eliminate debt, the benefits of a balance transfer are clear. For example, if a cardholder has an existing credit balance of $ 10,000 on a card with a 15% APR, that cardholder is currently accruing $ 125 in interest each month. If the cardholder continues to pay interest while reducing the balance by $ 500 each month, that person will still have accrued $ 1,250 of interest over the 20 months it took him or her to pay off the balance (15% interest applied to an average daily balance of $ 5,000 over 12 months). Alternatively, that person could begin by accepting a balance transfer offer of 21 months at 0% interest with a 3% balance transfer fee. In this case, that person’s old balance of $ 10,000 will be paid off, while they will incur a new balance of $ 10,000 plus $ 300 in balance transfer fees. If all goes according to plan, at the end of the 21 months, the new balance will be paid off and the cardholder will have saved nearly $ 1,000 in interest.

Top Five 0% Balance Transfer Cards on the Market 

Like every aspect of the credit card industry, we are fortunate to enjoy an extremely competitive market for 0% balance transfer credit cards. Here are the top five offers currently available.

1. Chase Slate

credit card Chase shook up the market recently by returning to a type of balance transfer offer that had not been seen in years. With this offer, new cardholders will receive a 0% APR on balance transfers for 12 months, with no balance transfer fee on transfers performed within the first 30 days of opening an account. This offer’s terms also include 12 months of 0% financing on purchases, but only for applicants with good and excellent credit. Applicants with average credit will only receive a six month, 0% rate on new purchases. Furthermore, this card is eligible to participate in Chase’s fantastic BluePrint program, allowing cardholders with a balance to pay off new charges in full without incurring interest on them. There is no annual fee for this card.

Click here to apply now

2. Citi Diamond Preferred

credit card This card currently offers a 0% promotional APR on both purchases and balance transfers for a market-leading 21 months. There is no annual fee for this card, but there is a 3% balance transfer fee. Citi has this same offer available for their similar Platinum Select card as well. Nevertheless, I recommend the Diamond Preferred card, as it features perks such as trip cancelation insurance, lost luggage coverage, and a personal concierge service.

Click here to apply now

3. Citi Simplicity

credit card This is another card from Citi that offers a 0% APR for 21 months on both balance transfers and new purchases. Instead of granting the travel benefits of the Diamond Preferred, this card offers no late fees or penalty interest rates. Missing payments is still a bad idea, as your credit will suffer and your account may be closed. But at least your debt will not spiral out of control. There is no annual fee for this card.

Click here to apply now

4. Discover More

credit card The best offer for this card has a 0% introductory APR on balance transfers for 18 months, as well as a 6 month, 0% promotional rate on new purchases. Balance transfers completed in the first six months of a new account are subject to a 3% fee although a 5% fee applies thereafter. Although the Discover card is not as widely accepted as some others, customers rave about their excellent service. Finally, I am reluctant to mention that this is also a rewards card. Those who carry a balance should ignore that aspect and focus on paying off their debt as quickly as possible. There is no annual fee for this card, and there are no foreign transaction fees on any of Discover’s products.

Click here to apply now

5. Capital One Platinum Prestige

credit card Rounding out our list, this product offers a 0% introductory APR on both purchases and balance transfers for 15 months. Customers will have to pay a 3% balance transfer fee, but there is no annual fee for this card and no foreign transaction fees on any Capital One products.

Click here to apply now

A 0% balance transfer is not an instant solution to the problem of credit card debt. In fact, unless you receive the Chase Slate card without the balance transfer fee, you will actually owe more money after your balance transfer than you did before. You should think of these offers as a significant push up a big mountain, but you will still have to do most of the work yourself.

To the Credit Card Guide

Note: Some links contain affiliate codes.


Wise Bread

Posted in Money

Tagged , , , ,

The Best Low Interest Rate Credit Cards

Posted on December 24, 2011 by admin| Leave a comment

The only thing more challenging than managing credit card debt is getting out of it. To accomplish this important goal you need a sound budget, plenty of discipline, and a credit card with the lowest possible interest rate. (See also: Why Do a Credit Card Balance Transfer, and How?)

How to Find the Lowest Interest Rates

Every bank is legally required to clearly disclose each card’s Annual Percentage Rate, or APR. This is the rate you will see in the black and white box when you click on the “terms and conditions” link. While you might think these disclosures make choosing the lowest APR an easy task, it is not that simple. Most banks will disclose a range of possible rates, with each applicant being offered a particular APR according to his or her credit rating. Therefore, the lowest rates available will be granted only to those applicants with the highest credit scores, with all other cardholders receiving higher rates.

Another important aspect of a credit card interest rate is that nearly all of them will have a variable rate. The good news is that the CARD Act of 2009 prevents banks from arbitrarily raising their rates on cardholders in good standing. What you will find is that nearly every card on the market will offer a variable APR that is based on the Prime Rate. This rate, determined in part by the Federal Government, has stood at a record low of 3.25% since December of 2008. Nevertheless, the variable interest rates quoted by the credit card issuers will rise when the Prime Rate does. For example, if the Prime were to rise to 8.25%, as it did in June of 2006, cardholders would see their interest rate rise by 5% from the current rates (as of this writing in December of 2011).

Finally, the best interest rates offered for a particular card can vary based on the link you use to apply for it. For example, applications for Chase Freedom card mentioned below can be found in many different places, with a higher interest rate depending on the amount of initial cash back offered. I have even seen Capital One present different rates for the same card depending on which browser I used!

The Five Lowest APR Cards on the Market

These cards currently have the lowest interest rates.

1. Simmons First Visa Platinum

Simmons First Visa PlatinumThis card has an unbelievably low rate equal to the Prime Rate plus 4%. Better still, this is the rare card that offers applicants a single possible APR rather than a range of rates. So if your application is approved, you will receive this great rate. Needless to say, applicants must have excellent credit in order to be approved. Balance transfers are also subject to the purchase APR, plus a 3% balance transfer fee. This card has no annual fee and a 2% foreign transaction fee.

Click here to apply now

2. Iberia Bank Visa Classic

Iberia BankThis is another lesser-known institution with spectacularly low rates. Their Visa Classic has an APR equal to the Prime Rate plus 4%, matching the Simmons First Visa Platinum. Unlike Simmons, customers without excellent credit may receive an interest rate equal to the Prime Rate plus 7% or even 10%. Other than that, the terms are similar — there is no annual fee for this card, and there is a 2% foreign transaction fee.

Click here to apply now

3. PenFed Promise Visa

PenFed PlatinumPenFed is not a bank, it is the Pentagon Federal Credit Union. Membership is free to qualified applicants, which includes many military and government workers as well as members of their extended family and households. Those who don’t qualify on this basis can join after making a one-time contribution of $ 15 to a military charity. Once a member, you can apply for their Promise Visa card, which offers a fixed APR of 7.49% for three years, followed by standard APR equal to the Prime Rate plus 7.74%. As if that wasn’t good enough, this card has virtually no fees. That means no annual fees, balance transfer fees, cash advance fees, or foreign transaction fees. There are also no penalty fees for late payments, exceeding your credit limit, or having a payment returned. Missing a payment will hurt your credit score, but it won’t even result in a higher interest rate.

Click here to apply now

4. Chase Freedom

Chase FreedomThis is the card that is offered in several different versions. If you apply for the offer that has only $ 100 cash back, those with excellent credit can receive an interest rate as low as Prime plus 7.74%. But there are many other reasons to consider this product. This offer includes a 0% introductory APR for six months on purchases and for one year on balance transfers. This product is also eligible for Chase’s groundbreaking Blueprint program. This feature allows cardholders to avoid paying interest on the portion of their balance that they pay off each month. It also includes powerful online budgeting and goal setting features. When fully utilized, the Blueprint system can effectively lower the amount of interest paid. Finally, I am reluctant to mention that this card is also a rewards card, since those who carry a balance should always be looking for the card with the lowest APR and should never be tempted to spend more to earn a little cash back.

Click here to apply now

5. Wells Fargo Platinum Card

Wells FargoRounding out the top five is a card from the legendary bank that dates back to the Gold Rush days. Their Platinum Visa starts off all new cardholders with a 0% introductory APR for six months on both purchases and balance transfers. The standard APR given to their applicants with excellent credit is equal to the Prime Rate plus 6.9%. Unfortunately, less qualified applicants could receive a standard APR as high as Prime plus 18.9%. There is no annual fee, but there is a balance transfer fee of and a foreign currency conversion fee of 3% each.

Click here to apply now

Although the best way to use a credit card is to avoid paying interest, most Americans are unable live up to this ideal. If you do have to carry a balance, your primary goal should be finding a card with the lowest interest rate. Doing so will help you to minimize the amount of interest that you owe, making it easier to pay off your credit card debt as soon as possible.

Note: Some links may contain affiliate codes.

To the Credit Card Guide


Wise Bread

Posted in Money

Tagged , , , ,

The Best 5 Credit Cards for Groceries

Posted on December 4, 2011 by admin| Leave a comment

Last year my Chase credit card, with which I had earned 5% back on groceries and gas since 2007, suddenly changed. They switched to some sort of rotating-category-that-earns-more-points system that I didn’t particularly care for. Every few months, I have to opt in all over again to take advantage of whatever category they’re giving the most points for that month. Even though I do my best to keep up with credit card rewards, I don’t take credit card reward hacking to the extreme. I’d prefer not to have to carry around 10 cards in my wallet.

Nevertheless, I do prefer to get the most points in categories that I actually spend a lot of money on. After our mortgage, the highest percentage of our monthly expenses comes in the form of groceries. We prefer organic and local food, which can be pricey. So, I set out to determine which credit cards actually give the highest percentage back on groceries. (See also: Best Credit Cards for Travel)

Blue Cash Preferred From American Express

  • Amex Blue Cash Preferred
  • 6% back at supermarkets
  • 3% back on gas and department stores
  • 1% back on everything else
  • $ 75 annual fee

Note that the $ 75 fee for the Blue Cash Preferred card becomes worthwhile if you spend over $ 208/month on groceries. If you spent about $ 104/month, you’d recoup your costs — but you would have been better off with a no-fee 3% rewards card. Spending $ 208/month on groceries, you’d earn about $ 150 per year in rewards, so you’d have earned $ 75 above your initial investment. At $ 208/month with a 3% card, you would just break even on your annual fee, so anywhere above $ 208/month it becomes worth it to pay the fee. This doesn’t take into account the additional gas cash back or anything else.

Click here to apply

RedCard From Target

  • Target
  • 5% off everything at Target
  • $ 0 annual fee

If you shop at a SuperTarget for groceries, the Target RedCard gives you 5% off at everything you purchase at the register. This isn’t just a grocery rewards credit card; the cardholder will receive the same discount on all Target purchases. If you have a Target nearby that also sells groceries, this is a great way to save 5% on food, as well as a variety of other department store purchases. Unfortunately, this card has no affiliation with any credit card payment network such as Visa or MasterCard, so you can’t use it outside of Target stores.

Click here to apply

Blue Cash Everyday From American Express

  • Amex Blue Cash
  • 3% back at supermarkets
  • 2% back on gas and department stores
  • 1% back on everything else
  • $ 0 annual fee

The Blue Cash Everyday card is largely the same as the Blue Cash Preferred, but it has no annual fee and half the rewards across the board. Nevertheless, 3% cash back on groceries and 2% cash back at gas stations and department stores still represents a competitive rate of return. Finally, this is one of the few American Express cards offered without an annual fee.

Click here to apply

Cash Rewards Visa Signature Card From Bank of America

  • Bank of America
  • 3% on gas
  • 2% on groceries
  • 1% on everything else
  • $ 0 annual fee

With the exception of the extra cash back at department stores, the Cash Rewards Visa Signature card has a similar reward structure to the Blue Cash Everyday card from American Express. Cardholders can receive their cash-back rewards as a direct deposit in any checking or savings account, as a statement credit, or even as a payment towards a mortgage held by Bank of America. In fact, rewards redeemed into a Bank of America checking and savings accounts receive an additional 10% bonus. Unfortunately, the bonus percentages only apply to customer’s first $ 1,500 spent in each category each quarter.

Click here to apply

Capital One Cash Rewards MasterCard

  • Capital One
  • 2% on groceries and gas
  • 1% on everything else
  • $ 39 annual fee

This Capital One Cash Rewards offering brings up the rear of this list by offering only 2% cash back on gas and groceries, but don’t count it out. This card is offered to applicants with average credit, so it could be the ideal product for those who don’t qualify for other cards. Capital One also wins kudos for not charging foreign transaction fees on any of their cards. If you travel internationally, or just like to drive over the border for shopping, this card will save you some money over the other cards here.

Click here to apply

The Best Credit Card Offer for You

If you like credit card rewards programs, but have recently been unhappy with changes to your card, it may be time to consider a new one. The best way to choose a cash-back rewards card is to simply look at what your biggest category of spending is each month, and find a card that gives you the most cash back on that category. For me, this category was groceries.

What’s your biggest category of spending each month? Do you earn extra credit card points for those cards?

Note: Some links contain affiliate codes.


Wise Bread

Posted in Money

Tagged , , ,

The Best and Worst Things to Buy in December

Posted on December 2, 2011 by admin| Leave a comment

December is a month when you almost can’t avoid shopping. You may have skipped Black Friday — overwhelmed by the offers, hype, and crowds — but the holiday season is a different beast altogether, with gifts from loved ones, friends, and people you barely know coming at you from all angles. Keep your holiday cheer level high by shopping wisely. (See also: Shopping Calendar: The Best Time to Buy Anything)

We’ve pored over the extensive dealnews archives of sales, coupons, and individual products from years past to guide you in your quest for the most savvy purchases in December. Here’s what we found.

Buy a Bike, Use it Later?

For many of our northernmost readers, bike riding in the winter is implausible, but you should consider purchasing a bike this month all the same. While other months might have seen greater volume of bicycle deals, we saw the most Editors’ Choice-level bargains during the month of December last year from vendors like REI, Walmart, and Performance Bike. Otherwise, the next time we saw a substantial number of deals and sales came in May.

Get Good Deals on Toys…by Still Waiting

Finally, it’s the best time to buy holiday toys! Almost. As we’ve mentioned before, many toys will hit their lowest price points of the season as we get closer we get to Christmas. Last year, many of the tops toys of the season hit their lowest points in the week before Christmas. That said, during the week before that, we saw a staggering number of Editors’ Choice toy deals on the whole; in fact, it was the best week of the month for top-shelf discounts on toys. Shop during this period, and you’ll improve your chances of getting the best deals.

Stock Up on Kitchen Items for More Holiday Cooking

Although we noted in our last buying guide that November is the best month to buy cookware, the sales and discounts last year largely carried over into December. Even though the overall volume of deals was down slightly, December actually slightly edged out November with the number of Editors’ Choice-level offers. Look for top offers from Macy’s, Kohl’s, Amazon, FoodSaver, Williams Sonoma, and JCPenney, on items such as cutlery sets, bakeware, and small appliances.

Tools and Hardware Deals for Dad?

Last year, both November and December were excellent months to buy tools and hardware items, matched only by the month of July for Editors’ Choice offers. November this year however proved to be significantly less thrilling in this department, with about 50% fewer top-shelf deals. We’re hoping though that December will deliver like it did last year, with significant discounts on wrench and screwdriver sets, drills, lawn-care tools, and more.

It’s a Great Time to Buy Christmas Decorations! (After Christmas, That Is)

At this point, it’s common knowledge that holiday decorations see their greatest discounts after the holiday in question has passed, and this is no different for Christmas. If you wait until December 26, you’ll see discounts of 50% to 70% off from stores like West Elm, Home Depot, Sears, Crate & Barrel, and Macy’s. If you absolutely must buy a fake Christmas tree before the 25th, look to Walmart and Kohl’s for extremely inexpensive options.

Blu-ray Movies Make Budget-Friendly Gifts

As we noted last month, November — and specifically around Black Friday — is a great time to get inexpensive Blu-ray disc movies, but this good fortune extends into December. While we saw a slight drop-off in top-shelf deals last year (there were about 20% fewer Editors’ Choice offers in December than there were in November), the cumulative discounts were still much better than any other month throughout the rest of the year. That means movies and TV shows may be an ideal gift for everyone on your holiday shopping list.

Put Off Buying a Wall Calendar

You may see some modest discounts this month and early in 2012 that will entice you to purchase a calendar, but the first significant sales we’ll see on these items come at the end of January and beginning of February. (You can of course see even bigger discounts the longer you put it off, but you actually want to use the calendar, right?)

ARTICLE CONTINUES BELOW

ADVERTISEMENT

Wait to Buy Jewelry

Sorry, boyfriends and husbands of the world. As our Media Editor put it during last week’s podcast, “Big Jewelry” has you in a corner this month. Jewelry just doesn’t see its best discounts of the year before Christmas, so if you haven’t already purchased a piece in advance, you might not be getting a great deal. You could always try to get around this by using a broad department store or apparel coupon for a nominal discount, but many stores, including Macy’s, frequently excludes jewelry from these offers.

Like Jewelry, Bad Timing to Buy Watches

Just like jewelry, watches don’t see their best discounts of the year during the holiday season, likely because so many shoppers feel more compelled to buy them in December. But unlike jewelry, there’s a small trend toward decent deals for watches before the clock strikes Christmas. During the first and second weeks, we saw a handful of Editors’ Choice offers that featured significant price cuts. Be sure to keep an eye on the deal-a-day sites that specialize in watches, like ChronoShark and World of Watches.

Time to Look Into Top-Brand HDTVs

Black Friday is over, so it’s time to forget about TVs, right? Wrong. We saw some rock-bottom prices on numerous sets during the post-Thanksgiving shopping holiday, but many of the best prices were from off-brand manufacturers. And though we saw some choice name-brand deals last week too, they were generally more than their off-brand counterparts in the same size-category. But according to a recent feature, top-brand sets will approach prices that are comparable to Black Friday during the mid-December to February time period. It may be a good time to set an email alert for your favorite manufacturer and screen size, so you can catch those prices when they hit the site.

Opt for Desktop Replacements Over Other Notebooks

Despite its proximity to Black Friday, December has never been an ideal month for buying a laptop. In fact, dealnews data shows that for the past three years, laptop prices for a 15″ to 16″ dual-core system have gone up an average of 7% from November to December. That’s not to say all hope is lost. If your Christmas list still includes a laptop you might want to check out deals on desktop replacements (systems measuring 17″ or more) as prices on those systems dropped 40% (from November’s lowest price) in December of last year. And with the influx of laptop deals we saw this past Black Friday, we wouldn’t be surprised if a few solid deals trickle into December. Just don’t expect them to be the year’s best.

This post is by Dealnews.


Wise Bread

Posted in Money

Tagged , , ,

5 Best Cash Back Credit Cards

Posted on November 19, 2011 by admin| Leave a comment

Many people prefer cash back rewards to other credit card perks such as frequent flyer miles. Cash has the advantage of being readily liquefiable and universally accepted. Unlike points and miles, cash back rewards earn interest when unused and is not subject to the constantly changing terms and conditions of corporate loyalty programs.

Furthermore, cash back rewards are considered to be a discount on a purchase, not income that needs to be declared for tax purposes.

My family is a perfect example of how you can use credit cards to receive cash back. Using our cards for day to day purchases, we may spend as much as $ 2,500 with them each month. When we are not looking for travel rewards, we use a card that returns 2% on all purchases in order to earn an additional $ 50 a month in cash back. That equals a return of $ 600 each year that we can add to our discretionary spending or apply to our savings.

Just one word of caution — cash back credit cards should only be used by people who have always paid their credit card balances in full and on time. To do otherwise virtually ensures that you will owe more in interest and penalties than you will ever receive as cash back.

Once you have decided to earn credit card rewards in the form of cash back, you should definitely consider one of these top five cash back rewards cards.

The Current Top Five Credit Cards Featuring Cash Back Rewards

In my research, these are the best cash-back cards currently available.

AARP Card From Chase

AARP ChaseAARP recently jumped into this market with a co-branded card from Chase. In order to make a splash, they are offering an incredible 5% cash back on all purchases for an introductory period of six months. Even for a family of modest means that uses its card for everyday expenses, this offer can translate into hundreds of dollars in cash back. For business traveler with who can charge thousands of dollars in expenses each a week, this card offers an even greater windfall of additional, tax-free compensation. After the introductory period, this card still returns a respectable 3% cash back on travel expenses and 1% on everything else. There is no annual fee for this card, but you will need to join AARP for $ 16 a year. Fortunately, associate membership is open to people of all ages.

Click here to apply now

Fidelity Investments Rewards American Express

Fidelity AmexOutside of a promotional offer, the highest cash back rate available on all purchases is 2%. Fidelity Investments’ Fidelity Rewards American Express Card offers unlimited cash back at that rate with no annual fee. Your card must be connected to one of their cash management or brokerage accounts, but there is no other catch. You can also use this card as a savings instrument by directing the funds to a Fidelity IRA. Finally, they even offer a version that funds a 529 college savings account.

Click here to apply now

Capital One Spark Cash Business

Capital OneLike the Fidelity card, Capital One also offers a 2% cash back rate, but in a Visa that is more widely accepted than Fidelity’s American Express. This is a business card, which is a great product for people who do some work on the side and want to separate out their expenses. Nevertheless, anyone can apply for this card as a sole proprietor and use it just like other credit cards. There is a $ 59 annual fee, but it is waived the first year. Another nice benefit is that cardholders will not be charged any foreign transaction fees, which normally run 3% on most other cards.

Click here to apply now

Amex Blue Cash Preferred

Amex Blue CashThis card offers an outstanding 6% cash back on all purchases from grocery stores. It did not take many credit card holders long to figure out that they could better reap this benefit by purchasing other merchants’ gift cards at the supermarket. Even outside the grocery store, this card still returns 3% on purchases from gasoline stations and department stores, as well as a decent 1% on all other transactions. There is a $ 75 annual fee for this card, which is what users will earn when they charge just $ 1,250 at their grocery store.

Click here to apply now

Chase Freedom

Chase FreedomThe Chase Freedom card is an underdog that makes the list due to its generous sign up bonus of $ 200 in cash when you spend $ 500 in the first three months after opening an account. Think of it as a 40% cash back rate of return! Card holders are also eligible to receive 5% cash back on their first $ 1,500 of spending on different categories of merchants that change every quarter. All other purchases return a standard 1% cash back.

With its significant cash sign-up bonus, but less-competitive standard rate, this card is best to maximize rewards for those who only charge a few hundred dollars a month to their cards, or customers who will only use it for purchases in the bonus categories that return 5%. There is no annual fee for this card.

Click here to apply now

Within the credit card industry, the term “deadbeat” is used as slang to describe customers who always pay their balances in full and on time. These customers don’t provide the banks with any profits from interest payments or late fees, but they are still valued customers due to the merchant fees their spending generates and their impeccable payment history. If you are a proud member of this group, and you have no interest in travel rewards, you should be using one of these cards that offer the maximum cash back for your spending.

Back to the Credit Card Guide


Wise Bread

Posted in Money

Tagged , , , ,