Is Cashback The Future For Credit Cards Student Credit Card Miles Credit Cards Strategies To Accumulate Miles Credit Repair Companies Provide No Cure For Your Credit Ails
For several years now, one of the most sought after features on a credit card has been a long 0% balance transfer deal, almost to the exclusion of any other feature except maybe the headline interest rate of the card. More recently though, balance transfers have become less popular, not least because of the introduction of transfer handling fees, and there’s now a new feature that more and more customers are considering to be of higher importance, namely cashback.
According to recent research, over a fifth of us now use a card that offers cashback or a rewards scheme, and the number has recently overtaken that of balance transfer users for the first time.So why has a seemingly simple feature such as cashback displaced the once mighty balance transfer deal in our priorities?
Credit cards have always suffered from the perception that they are expensive to use, with high interest charges and penalty fees – a reputation, it has to be said, that isn’t altogether undeserved. Cashback cards give us the opportunity to turn that on its head, and actually come out on top financially by using our cards for everyday purchases.
For every purchase you make, a cashback card will effectively give you a refund of a small percentage of the purchase price. In the early days of cashback, this percentage was so small it was hardly worth considering – a 0.25% rebate was virtually worthless to most people with moderate spending habits. These days however, the figures are much more attractive, with a 3% rate not uncommon as an introductory offer. This kind of rebate is definitely worth having, and if you use your cashback card for all of your day to day shopping, the numbers can mount up surprisingly quickly.
What’s more, if you use your card purely as a convenient payment method and not as a means of borrowing, and repay your full balance every month, then you’ll avoid paying any interest fees or charges. This means that the money you ‘earn’ through cashback is totally free money – you’re being paid simply to buy your usual shopping with a card rather than with cash.
Sounds good? Well, it’s not hard to see why this kind of card has increased in popularity, but there are a couple of points to think about before applying for an account.
The main problem is that most of the time, you’ll only receive your cashback once a year, either by check or refund to your account. This is fine for most people, but the cashback offer will be dependent on you sticking to the credit agreement. If, even accidentally, you make a late payment then you’ll have broken the terms of your agreement and will lose all the rebate you’ve been building up. Keeping up to date with your repayments is therefore even more essential than normal with a cashback card.
Secondly, many cards feature a ‘spending limit’ over which no cashback will be earned. Most such limits are fairly generous, but check to make sure your expected annual spending on the card is within this limit if you want to maximise how much total rebate you can get.
So, are cashback cards the future? If you’re a regular spender who can clear your balance in full every month, then they are very worthwhile indeed, but if you’re planning to carry a balance then you might be better served by getting a card with a lower standard rate and no cashback or rewards feature.
There is a ton of extra literature the high school senior receives in the mail during their twelfth grade year. There are special scholarship offers, student financing, and special college programs, not to mention the number of invitations from Uncle Sam to come join the Navy, Marines, and Army. Having just been through this, I can add to that, at least fifty offers for a student credit card.
Now, no offense to these hard working people and their advertising campaigns, not to mention the U.S. Postal Service who delivered these documents; but, the majority of these offers ended up in the round file, aka as the trash, unopened. There is just too much, too fast, and you’re busy with other things, like just getting through those last few months of school.
As a parent of a recent college graduate and another one coming up, I realize it is important that the college student have a credit card. Now that all of the excitement of final exams and graduation is over, it’s time to start looking forward to the next step. With the new college year just around the corner, it’s time to look at and compare those college student credit cards offers.
That is what is so great about the internet. You can enter college student credit card into any search engine and come up with a number of sites that give you a choice right here online. You don’t even have to leave the comfort of your own home. You can shop right here and even sign up and order your card any time day or night. No need to take a trip to the post office to mail your application, you just press enter.
When applying for a student credit card, there are a few things you need to keep in mind and consider.
-First, talk to your student about the responsibility that comes with having a credit card.
-Student credit card interest rates are a little higher because they usually have no previous credit history.
-Student credit cards have lower credit limits, normally $500 to $1,000.
-Caution your student about having more than one credit card.
-To avoid running up too much debt, the credit card should be used just for necessities.
-Try to pay the entire credit card balance each month.
-Explain to your student that if they fall behind in payments, the credit card issuer will increase their interest rate.
-Used properly, a student credit card can build up good credit, which is a valuable tool in today’s world, along with that college degree.
Most college students obtain their first credit card either before they enter college or during their freshman year. Student credit cards can be a good thing, when used responsibly. Your student has used his time wisely thus far, enabling him to be admitted into college. Now it’s up to them to earn a good credit rating, by following the rules of the credit card issuer. This is called education by experience.
Put simply, miles credit cards allow cardholders to earn points for every dollar charged on the card. The accumulated points can be redeemed for reduced or, in some instances, free airfare. There are many promotional offers and some cards offer more points than others. To entice the customer, certain miles credit cards offer no annual-rate, no APR fees, additional bonus miles with new sign-ups, balance transfers at reduced or no interest rate for a certain period as well as no blackout date for miles redemption.
Credit card companies have also come up with affinity card programs that allow cardholders to collect airline miles with purchases at some of their most preferred retailing outlets and merchants. This lets cardholders add more miles at a faster rate with purchases from their favorite retailers. On the downside, these cards tend to have high annual fees and interest rates.
Frequent flyers tend to be mostly business travelers, who travel often due to work. However, careful planning can help normal travelers to accumulate good miles. Some tips to accumulate miles at a fast rate are:
1) Utilize Partner Services – Miles cards normally have tie-ins with car rental companies and hotels as part of their marketing strategy that also provide mileage points accumulation. Using these car rental companies or hotels and charging them to the miles card will also help to increase the points accumulated by using necessary travel expenditures.
2) Vacation or Tour Packages – Miles credit cards offer vacation or tour packages to encourage customers to travel and thus to increase demand for their airlines. Once again, by utilizing these vacation or tour packages, cardholders can accumulate more mileage points on the card per trip, earning more points while vacationing.
3) Non-frequent Travelers – For less frequent travelers, it is better to charge any travel related expense to the miles card when you travel. The travel related expenses could be anything from buying souvenirs, groceries, fuel while in a different location, etc, which also helps to accumulate additional miles on the card.
4) Affiliate services – Some miles card programs partner with a network of allied airline carriers. Examples of these kinds of network alliance services include the Star Alliance or Flying Blue programs. If your preferred airline does not fly to the location that you desire, try to choose from another airline that is part of the alliance network, giving cardholders yet another opportunity to accumulated miles.
Most miles credit cards have numerous benefits for frequent flyers. However, the benefits could vary, based on the specific program. Some mile cards provide additional or bonus points while making certain purchases. The points can later be traded for airline miles. Some miles credit card programs allow portability or the transfer of points to other frequent flyer accounts, and some even offer consolidation of all accumulated points to one single card. These earned miles give you free or reduced travel tickets. In addition, most of these cards also offer various other travel-related benefits, including free additional tickets, upgrade opportunities, lost baggage insurance, car rental insurance, and greater coverage amount for travel accident insurance.
Apart from points, most mile cards also offer different type of rewards for members. This could be anything from free hotel stays to car rentals, discounted vacation packages or even free airline tickets, in some instances. Certain airline miles card programs entice customers with an attractive offer to take advantage of free bonus miles, as high as fifteen to twenty thousand free points, in some cases. In general, you will receive flight miles per trip taken, but some miles card programs will offer a generous point total per flight, amounting to more points per mile than the actual miles flown. (Be sure to check with each reward miles program for specific details.)
Miles credit cards can be pretty costly for the credit card companies as well as the airlines. As such, miles credit cards tend to have higher interest rates and annual fees than traditional credit cards. One of the most recent promotional trends with certain miles cards programs is to enable cardholders carrying balances to qualify for a free domestic airline ticket on any airline. It is advisable that customers evaluate the pros and cons of such offers as in most cases, the cost of finance charges on the left over balance outweigh the benefits of getting a free ticket.
These cards will also have an expiration period, before which the accumulated miles need to be used. It is important to know this period and use the accumulated miles to get the maximum benefits. Nevertheless, miles credit card offers have become immensely popular as they allow customers to accumulate valuable miles through ordinary purchases, which later can be transferred to free flights and vacations.
“Do you have bad credit? We can help” is often a claim made in advertisements by credit repair companies who state they can erase negative information on your credit report. However, only time–not miracle cures or exorbitant fees–can heal bad credit.
Unscrupulous firms often rely on a portion of the federal Fair Credit Reporting Act (FCRA) which requires a credit bureau, or credit reporting agency, to omit some information on a credit report during the time when an investigation is being conducted after a challenge has been filed by a consumer.
As a result, credit repair firms will flood credit bureaus with multiple, frivolous disputes. Fees paid by consumers who are desperate for clean credit can range from a few dollars to thousands of dollars, but the legitimate negative information is never permanently erased from a credit file by the paperwork generated by a credit repair firm.
Rather, time is the best solution to an undesirable credit history.
Federal law mandates the time periods that accurate negative information remains on a credit report. Delinquent payments are eliminated from credit reports after seven years and personal bankruptcies after ten years.
Information concerning a lawsuit or judgment against you can be reported for seven years or until the statue of limitations runs out, whichever is longer.
Credit reporting company officials estimate that about 30 percent of their workload is wasted on credit repair companies which intentionally abuse laws and policies established to protect consumers.
Credit reporting organizations will provide consumers with a copy of their credit report upon request for a small fee. In addition, free credit reports are available to persons who have been denied credit within the past 60 days.
Consumers should be aware of the following facts:
Virtually every service a credit repair firm does legally can be done by consumers themselves for free or at minimum cost.
No one can legally remove accurate information from a credit report. Only time can wipe out bad credit.
Any consumer can dispute inaccurate information at no charge. Inaccurate information will be changed or deleted free of charge. Credit reports contain an easy-to-complete dispute form to help consumers who disagree with the information.
There are no miracle cures for bad credit.
Remember that lenders are in business to lend money and want to say “yes.” However, their livelihood depends on extending credit only to consumers who repay their debts..
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