Types of Credit Cards

As you can imagine, I hold a lot of different prime credit cards from different card issuers – 90% of them with a rewards program. In the past 12 months, I have had great success with Capital One customer service. From what I can tell, the majority of their operations are US based, so you are talking with someone without an accent and able to speak with a true supervisor that can make a meaningful change to your account if that becomes necessary.

There were a couple times that I went over my limit and wasn’t charged a penalty fee nor did my promotional interest rate change to something ridiculous like +20%. I have redeemed for rewards twice this year and their online rewards site makes it easy to do without every contacting them by phone. All relevant travel purchases are displayed in your online account.

Insiders tell me that Capital One is hungry to obtain market share during this current recession and financial crisis that we are going through. This makes perfect sense and well suited for Capital One, since the majority of their profits and growth come from their credit card group. You will also notice that their TV advertising hasn’t really declined in the past months, while the competition has dropped off the screen dramatically.

Okay, now to the caveat portion of this post. I recently wanted to apply 60,000 points toward a travel purchase of $973. It was my understanding that 60,000 points = $600 credit, however when I tried to have this amount applied, I was instructed differently. In order to receive this amount, your actual travel charge must be the amount of the point redemption threshold. This means that in order to get the $600 credit, my travel charge needed to be $600. You have the option of dividing your points amount by 200 and taking the dollar amount as a credit, but you leave a lot of money on the table. I’ve since contacted the resort that I stayed in to have them charge two credit cards versus one, but it was a bit of a hassle.

Below is a copy of the email that I had sent to get this taken care of:

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Dear Betty:

Thank you for taking my call and offering to help take care of this for me - I REALLY APPRECIATE IT.

We checked out of ___ on November 29th. I believe the total charge on CC# 4653 (exp:__, security __) was around $973.

I currently have 60,000 points on my Capital One card which I wanted to redeem for this trip. Unfortunately, the transaction amount needs to match the point amount in order for them to apply a $600 credit to my account. Therefore, I was hoping that you could charge the 4653 card for $600 and put the remaining balance on Amex 2000 (exp: ___, security: ___). The charge for $973 would then be voided.

We really enjoyed our stay and the staff is truly excellent.

Please feel free to give me a call at ___ or ____ if you have any questions.

Best,

Chris
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The other caveat is that large sum payments can take up to 10 days to clear your account. I try to pay off the balance on my card each month and then start recharging, but sometimes  the recent payment hasn’t been posted as quickly compared to other issuers. This may have been related to the fact that I’m a new customer, however, it would be more helpful if payments were posted more in real time.

Other than the items listed above, I have found Capital One to truly be a No Hassle issuer. Capital One’s culture via their products / representatives truly seems to be focused on retaining your business.

Many people email us with the question: What is the maximum balance transfer amount?

While the maximum balance transfer amount that you can transfer or credit line depends on your credit score and varies by credit card issuer, most credit card companies will allow you to use all of your available credit. This means that if you are approved for a credit card line of $10,000, you can transfer balances of up to $10,000 from other credit cards. Remember to also factor in any balance transfer fees as part of the $10,000 available credit.  Cash advances are treated separately than balance transfers and offer lower credit limits due to the high interest rate associated with them. The majority of credit card issuers will charge you 3% of the amount you want to transfer. You also have the option of waiting for convenience checks and using the funds to pay-off debts from non credit card obligations.

Balance transfer credit cards are typically only offered to those consumers applying for a “prime” credit card offer. Prime credit cards are available to consumers with good to excellent credit. Credit card companies tend to avoid offering balance transfer offers to consumers with poor or bad credit due to the risk associated with their prior credit history. Taking on new debt from someone who doesn’t have a strong repayment history would be too risky for a credit card company to absorb. However, the card holders previous creditor would probably be pleased to see the balance transferred.

In terms of balance transfer fees, the maximum amount that credit card companies typically charge is 3%. There are only a handful of banks that cap the balance transfer fee. Usually, these offers are presented as “3% of the balance transfer amount, not to exceed $75 or be below $25”. In this economy, it’s likely that consumers will not be offered no fee transfers, given that issuers are realizing lower profits due to rising delinquency rates.

The good news is that if you are looking to make a fresh start with a promotional interest rate on balance transfers then you can utilize much of your available credit line.

With plastic replacing greenbacks in our wallets and becoming so commonplace in the developed world's daily routine, Comparecards.com thought it would be interesting to go back in time and chronicle the history of credit cards.

While the idea of "credit" first emerged over 3000 years ago, the modern credit card first appeared in the 1930s in the form of the Charga-Plate.  Charga-Plates were metal plates issued by a party that could only be used for purchases from such merchant.  The rise of using the same card for purchases from multiple different merchants was invented in 1950 by the founders of Diners Club, Frank X. McNamara and Ralph Schneider.  The general purpose Diners Club card dominated the credit card market for 8 years until American Express introduced its credit cards in 1958 and proceeded to create a worldwide credit card network.

Visa's predecessor, the BankAmericard, also emerged in 1958, and MasterCard entered the credit card market in 1966.  There are now countless variations on these original, trailblazing credit cards, including organization-branded credit cards, co-branded credit cards, pre-paid credit cards, merchant cards and many, many others.

 While credit card use in the United States, Canada and the UK has been widespread for many years, countries such as Switzerland, Germany, France and Russia among others have been late to the credit card party, as it was not until the 1990s until they had any significant credit card market penetration levels.

History is most certainly being made today with the changes that will arise in response to the current worldwide credit crisis.  Stay tuned!

Someone in your family might actually enjoy these plastic novelties. My two year old has a wallet and purse that she pretends to use for "shopping around the house". When our family goes to restaurants, I usually give her my credit cards as a source of entertainment until our food arrives. My wife had a great idea of how to actually make use of all those pre-approved credit card offers that come in the mail - give them to my two year old to put in her wallet.
 
This way you don't have to worry about losing your real credit cards and you can make someone else in the family feel more important. It probably also could be spun as a green alternative. Of course, it’s equally as important to teach her how to use these fake credit cards wisely!

College credit cards can mean one of two things: good or bad. And a college student is either responsible or irresponsible. It’s that simple. In college, there are many, many expenses involved with living, classes, books, trips, social life, clothes, and the list goes on. For people with their parents footing the bill, college is easy...financially. However, for students that have to pay their way through, the easy answer may be college credit cards. The good in this is that college credit cards establish a secure financial foundation for unplanned fees or emergencies. If the emergency is capable of draining their savings, chances are it will leave the student in financial ruin. College credit cards can help avoid this, and the student is capable of paying it off on a monthly basis.

Some students are not as responsible as this, however. For these students it is very tempting to run up a bill on their college credit cards on the simple basis that they will “pay it off” after college. By that time they will have paid hundreds of dollars, if not thousands, in interest and fees for items they more than likely could have lived without. Living without these luxuries is all part of the learning experience in college, and if maxing out a credit card makes you live better, then think again. Chances are that a college credit card is your first credit card. By not paying off the monthly balance, you are only hurting your already nonexistent credit score. By the time you get out of school and prepare yourself for the real world and a new car, your credit will have been ruined and getting a good deal will be nearly impossible.

The only clear winners with college credit cards are the financial institutions themselves by luring students in with enticing low rates and interests, and sometimes even t-shirts and sandwiches. Those students who are financially responsible and pay off their balances will be rewarded. These students will come out on top after college and win at the game of getting better financing on stuff such as cars and houses. For these students, college credit cards are smart.

Other Resources:

• Instant Approval Student Credit Cards
• American Express Student Credit Cards
• CompareCards.com Textbook Scholarship Program

Why choose low APR credit cards? Because if you have an outstanding or great credit history, it is almost a guarantee that you will receive a low APR credit card. If you make payments on time and in full, it will increase your chances of getting a very great low APR credit card offer, and a lowered interest rate card will be nearly perfect for you.

If you frequently make purchases online, then you will probably want to look for cards that offer very low APRs and some incentives. For instance, some low APR credit cards offer a cash back bonus for every online purchase with their card. Or perhaps you fly all across the country for personal or business reasons? Some low APR credit cards allow you to benefit from a frequent flier program, which allows you to trade good credit responsibility for flying miles. Then there are the reward programs, which offer incentives for purchases and balance transfers. For instance, with some low APR credit cards, a purchase or balance payment will result in reward points that could be used at destinations of your choosing.

Then there are the other offers that are involved in low APR credit cards. For instance, some of the cards offer no annual fees and competitive interest rates at cash back or travel rewards. The good thing about low APR credit cards is that you can most always personalize them to mold to your lifestyle. This is one of the benefits of having a good credit history, and having proven your knowledge and commitment to fiscal responsibility.

Other Resources:

• Fixed rate credit card information
• Low interest, no fee credit cards

Instant approval student credit cards can be both a blessing and a curse to any college bound student without the financial means to pay for school. For most students, college is covered by student loans and financial aid. For other students, their parents foot the bill and give them a weekly allowance. For some, they must foot the bill themselves by working, however, it is often difficult to make ends meet. At this point, it is general a credit card to the rescue.

For these students, instant approval student credit cards may be the answer, as these credit cards will allow them to make charges that they can pay down at a predetermined rate. These student credit cards with instant approval are often accompanied by low starter rates that tend to rise drastically after a introductory period. Often students will find themselves paying little to no interest fees, to only be met with 14 to 20% interest fees within a few months. This could often leave the student in a financial mess as they are scurrying or overworking for money just to make the minimum payment on the instant approval student credit card.

These hidden fees and sudden hikes are the cursed part about instant student credit cards. By taking a few precautionary steps, any student can find a credit card that fits their lifestyle and financial means. First of all, find a credit limit that is suitable for you. There is no need for a $5,000 credit limit when you are a student, for it will only encourage poor financial habits and you will not be able to pay off the charges that you run up month by month. Keep your credit limit low to ensure that you will not run into any financial troubles with your instant student credit card. By paying off you instant approval student credit card on a monthly basis, you will also be establishing good credit history, which is imperative in your future life.

Establishing a good credit history can be easily completed with instant student credit cards as long as you keep your charges to a minimum and a payment schedule which is fully paid off. As always, please charge responsibly.

Instant approval credit cards can be both a blessing and a curse. First of all, credit cards with instant approval offer that element that other credit cards do not: the word instant. This means that you will more than likely be approved on the spot, and depending on the company, will be allowed to make purchases online or via phone within the same business day. Credit cards with instant approval, however, are notorious for bad credit deals, smaller credit limits, higher interest rates, etc... Since the process of checking your credit history has been sped up, chances are they are not putting as much trust in your credit responsibility.

Your credit history and credit responsibility do not play as big a role in instant approval credit cards. What are the results of this? The APR of your instant approval credit card is likely to be higher than that of a traditional credit card. Because not many elements factor into the decision involving an instant credit card, they are likely to hammer you with higher rates and penalties to ensure the financial soundness in their decision. Also, your interest rates will be steeper in an instant credit card. Chances are, if you apply for an instant credit card, you are likely doing so to transfer another balance or to make a quick payment for something you do not have the capital to do so with. Instant credit cards are often seen as “the quick way out”, therefore they will more than likely attempt to take advantage of your financial mistakes, or likelihood thereof.

For the companies offering instant approval credit cards, the likelihood of the individual to fail paying the balance is their revenue. They will jump at the chance to sign people up for cards that show a history of such. If you have a bad credit history and might be unable to pay off the balance you are transferring to an instant approval credit card, be sure to do your research and compare your options before requesting a credit card with instant approval.

Getting and interest free credit card can significantly help any individual or family carrying credit card debt. If the other credit card debt is established on an account that it already charging high or significant levels of interest, it might be smart to switch to the interest free credit cards. Of course, this plan would only work for the interest free credit cards that allow you to transfer the balance without a fee.

The first step in this entire process is initially establishing the qualification for the interest free credit card account. To do this, you usually must maintain a “good” credit score. Any score that is deemed “poor” will likely result in your rejection of the interest free credit cards. For your best interest, it is smart to check out your credit score at any low cost or free credit score provider prior to applying for the credit cards.

After qualifying or obtaining your credit score, it is then always smart to research the best interest free credit cards online, then to apply. With most cards, the balance will remain interest free for up to a year or 18 months. In many cases, you will be notified of your acceptation or rejection within minutes of applying for the interest free credit cards online. After this your will receive your interest free credit cards within a week of your acceptance via mail. If they allow you to transfer the balance immediately, then you should get right to it if you are prepared to do so. Since there is no interest involved in these cards, every cent and dollar that you send to the credit card company goes directly to principle.

It would be smart to transfer as much of the balance that you can from the other account to the interest free credit card then begin paying it down. However, it would never be a wise decision to pay it entirely down at one time. If your savings is earning more than the interest on the cards, pay it down over the interest free credit card period. With time and patient you will begin to see the balance dwindle to zero.

A lot of time (particularly with credit cards) when an offer seems too good to be true, it usually is.  In the case of the cash rebate card, however, that’s not necessarily the case.  The key is getting your just rewards is proper management of the cash rebate card.  If you’re one that typically carries a balance on your credit card, the interest rate you’ll pay can often mean that you’ll be paying more in interest than you are saving at the cash register.

 However, if you are willing to pay off your balance in full and on time each month, then the cash rebate card can be the same as carrying a generic coupon in your wallet.  Many cash rebate cards will offer bonus savings on select items or on purchases made at select retailers.  It’s good to take time to review all of the card options before making a final decision. 

Other Resources:

• Cash Back Credit Cards
• Credit Cards with Rewards are Worth a Look
• Best Credit Cards for Small Businesses