Monthly Archives: September 2018

Automotive Credit Cards

Our society has made owning a credit card an absolute necessity. Credit cards are used for purchases, renting hotel rooms, renting cars, traveling, and many other types of transactions. Some credit cards offer rewards to their customers in various ways that customers will take advantage. Automotive credit cards are credit cards that offer rewards to their customers when making certain purchases for their automobile. In fact, automotive credit cards are specifically developed for car manufactures that allow people to earn rewards when they purchase parts and other services from the manufacturer. For example, GM provides an automotive credit card that customers can earn rewards and discounts when purchasing GM products or services.

Each automotive credit card will offer different reward programs to their customers. If a GM vehicle owner needs to purchase parts or a service for their vehicle, they can use an automotive credit card provided by GM in order to save money. The rewards and discounts provided by automotive credit cards help people save money while maintaining an excellent credit score. On top of saving money on automotive parts and services, customers will also earn cash back rewards on items like gas and groceries. Cash back reward programs are paid to the account holder by percentage.

Automotive credit cards are not only used for gas, groceries, parts and services. They are also used to actually purchase a new or used vehicle. In fact, purchasing a new or used vehicle with a automotive credit card will help the account holder save money on their car purchase. Car purchasing through an automotive credit card provides a rebate to the car buyer. Automotive credit cards are an alternative way to finance a new vehicle purchase or lease, while earning rebates and points on the purchase or lease at the same time.

There are many advantages to these types of credit cards like the fact that most automotive credit cards have no annual fee and interest rates are fairly low. In fact, people who use automotive credit cards for purchasing a new vehicle will pay the same amount of interest as they would with a traditional automobile loan. Most automotive credit cards require the applicant to have a decent or excellent credit score in order to qualify. Interest rates may vary depending on the applicant’s credit rating. There are many different automotive credit cards to choose from, and it’s advised to research them online and compare rates.

Most car manufactures offer an automotive credit card like Toyota, Subaru, Lexus, GM, BMW, etc. However, major financial institutions like Chase also offer automotive credit cards to their customers. Automotive credit cards are not only known to give discounts and rebates on purchases like auto parts and auto service. These credit cards can be used for everyday purchases like groceries and gas. The advantage that this card has over most other credit cards is the fact that every purchase that is made is earning points towards the purchase of a new vehicle.

People who use credit cards frequently are recommended to apply for an automotive credit card. The rewards and points will accumulate towards a new vehicle purchase from a dealership. The points work much like earning points when flying. Those who have automotive credit cards are advised to use their credit card as much as possible instead of using cash or other forms of payment. The points will add up quicker, and the automotive credit card holder will be surprised to find out that they have earned points towards the purchase of a new vehicle. With rewards like these, it’s hard not to use the automotive credit card.

Travel Reward Credit Cards

Credit card companies offer different types of rewards in order to attract more customers. Credit card customers will receive rewards like cash back, points, and travel rewards. Among these rewards, travel reward credit cards are among the most popular type of credit cards. Travel reward credit cards are used by individuals that want to earn rewards for trips like vacations, visiting family and many other types of traveling adventures. There are a number of credit card companies that are competing with each other to corner the market on credit cards that offer travel rewards. Most of these credit cards carry the Visa or MasterCard logo.

Chase Marriot Rewards Visa card is a credit card designed for those who travel frequently. Those who travel and spend money on hotels and car rentals will use the Chase Marriot Rewards Visa card to earn points towards traveling. The American Express Blue Sky card is another travel reward credit card that offers a wide variety of benefits when traveling. This card has no fees, and customers will receive $100 for travel purchases for every 7,500 points they earn on the card. The Capital One Venture Rewards card provides miles for every dollar that is spent on the card.

The Miles Discover card offers 12,000 bonus miles for new accounts. During the first year of using the Miles Discover card, the customer will receive 1,000 miles every month that they make a purchase. There are no limits on the miles in which the card hold can earn on the Miles Discover card. Chase bank has offered new line of credit cards, one of which is the Chase Sapphire card that offers points and travel rewards. If a new customer spends $3,000 in the first three months of opening a new account, they will receive 25,000 points. 25,000 points are equivalent to $250 that can be used towards a plane ticket.

Popular airliners also offer their own travel reward credit cards like Southwest Airlines. Southwest Airlines offers travel reward credit cards like the Southwest Airlines Rapid Rewards Plus credit card. This credit card offers $50 to the customer the first time the card is used. Points are earned towards travel expenses like flights and hotel rooms. Continental Airlines OnePass Plus card is another travel rewards credit card that is offered by a major airline company. Travel reward credit cards like the Continental Airlines OnePass Plus card offers cash back online with bonus miles that can be used for any flight.

The Citi ThankYou Premier card offers 50,000 bonus points for new customers. This travel rewards credit card offers advantages that are not found with other travel reward credit cards. For example, points are earned with this credit card every time it is used for traveling on an airline. On top of earning points for airline tickets, customers who use this credit card to buy airline tickets will earn points towards future airline tickets. Those who travel often are advised to apply for this travel rewards credit card.

Travel reward credit cards are extremely popular for those who travel often, and for those who want to earn points for vacations and other travel purposes. There are countless travel reward credit cards online that customers have to choose from. People are advised to research the rewards that credit cards have in order to determine what card they will benefit most from. Travel cards are not for everyone, like those who never travel or go on vacations. People who don’t fly will not benefit from travel reward credit cards. These cards are also often used by businesses that send their employees on business trips as well.

0% Interest Credit Cards

Owning a credit card is definitely a necessity in today’s society. Many companies will not provide services without the use of a credit card like renting hotels and vehicles. Credit cards are used to make purchases as well as deposits to secure a certain item or service. Some credit cards have an outrageous amount of interest being charged, which are typically designed for poor credit individuals. Other credit cards have a fairly low interest rate for those who have an excellent credit rating. However, these interest rates can fluctuate and change over time. In fact, credit card customers will often experience a low interest rate in the beginning of the contract.

After a certain period of time, the interest rate on a credit card will most likely go up. Even zero interest credit cards will have an introductory interest rate that will eventually go up. There are many different ways to take advantage of zero interest credit cards. In fact, individuals are able to pay off their balance before a payment is required in order to avoid interest. Paying off a credit card balance before a payment is required is only one way to avoid interest on credit cards. If the customer pays off their credit card balance every month, they will never have to pay on interest.

All credit cards can have a zero interest rate associated with the credit card if the balance is paid in full before the first payment is required. However, balance transfers also offer opportunities for zero interest credit cards as well. Balance transfers are the process of moving the balance from one credit card to another. Many credit card companies will offer a zero interest introductory rate to the customer if they transfer their balance. However, the introductory rate usually only lasts around 6 to 12 months.

A strategy that a lot of credit card users will implement when trying to avoid interest rate is performing balance transfers periodically. In other words, the customer will have their balanced transferred to another credit card before the introductory rate is over. By doing so, the customer is able to avoid paying interest rates, which ultimately leads to paying off the debt at a faster rate. There are more ways to avoid interest on credit cards like credit cards that offer discounts and bonuses. Credit cards that offer cash back rewards provide the customer the opportunity to use those rewards to pay for the interest.

In order to take advantage of credit cards that offer cash back rewards and zero interests, the customer must have an excellent credit score. These types of credit cards are basically designed for customers who have an excellent credit rating. The only way to avoid interest when having poor credit is by paying off the balance of the credit card before making the first payment on the amount that is borrowed. Those who have an excellent credit rating will experience zero interests for as long as 24 months with some credit card companies.

There are certain companies that offer no interest credit cards for qualifying customers. If you are seeking a personal credit card of this type, the first requirement is usually a high credit score. Companies will reward applicants who have good credit with no interest introductory rates. Make sure you read the fine print to see what the rate will be after the no interest period expires. Credit card holders who have an excellent credit score can take advantage of zero interest credit cards by transferring their balance every time their zero interest periods are over. Credit cards that provide zero interest for 24 months are high recommended in order to take advantage of getting out of debt. Some credit cards will offer zero interest on purchases during the zero interest periods. By paying off balances early, transferring balances, and using cash back rewards to pay interest, the customer is able to avoid interest payments all together on credit cards. This process also helps improve the individual’s credit score as well.

By shopping around and investigating different credit card offers before applying, you can find the best one that not only offers a decent no interest introductory period but a low interest rate following this period. A few companies to look into include Chase, Capital One and Discover.

If you need a business credit card there are also opportunities to get zero interest for a certain duration. As a business owner, your goal is to spend as little as possible on unnecessary expenses so your profits are higher. So, in addition to interest rates you’ll want to look at account origination fees, annual fees, late fees, balance transfer fees and any other charges applicable. All of this information is detailed in the terms and conditions section of any credit card application.

You may want to check with your local bank or credit union to see what kind of credit card offers they have available, especially if you already have a personal or business account with the institution. This way you can work directly with a representative at the bank to discuss the credit card options available to you and ask any questions you may have about the terms and conditions. And, many financial institutions have exclusive credit card deals for current members in good standing.

Another method of locating no interest credit cards is to use the Internet for research. Use a major search engine to look for credit cards with zero interest. You will find direct credit card companies with whom you can apply online as well as brokers and review sites where you can access a wide variety of different companies. It should be noted that applying for multiple cards can hurt your credit rating because the number of inquiries, or applications submitted, does have an effect on your score. So, read up on any credit card offers you are considering and compare the features and costs of your favorites before deciding on one.

Whether you apply for a credit card at a financial institution, over the telephone with a company representative or online the process is much the same. You will be asked to provide basic information about yourself including your name, address, telephone number, email address and social security number. If you have lived at your current address less than five years, you may be asked to provide your previous address.

You will also need to provide financial information. This information will include verification of your income from your job or business, your expenses, and in some cases your tax returns. Your income to debt ratio will be analyzed in addition to your credit rating. All of this information is used to determine whether or not you qualify for any no interest credit cards or even the lowest interest credit cards.

Even if you are unable to qualify for any no interest credit cards you may still be offered credit cards with low interest rates. If you demonstrate over a period of time that you are able to make your payments on time you may be offered a better deal in the future. Another thing you should know is that many credit cards, especially those for business owners, offer incentives like rewards points, cash back and frequent flyer miles.

Prepaid Credit Cards

New products in the financial space, prepaid credit cards are increasingly becoming the new financial product of choice. They offer excellent benefits to cardholders and issuers alike, and it stands only to reason that more people will be using prepaid credit cards in the future.

Securitized Cards
Prepaid credit cards are also called secured credit cards because they are secured by the amount of deposit the new card user puts in their account. If the credit card user does not pay back their credit card debt, then the company is able to take the money that was put on deposit as payment, effectively protecting themselves against the risk that the borrower spends more than they can afford.

In general, opening a secured credit card is easier than opening any other type of credit card. Some credit card issuers demand that any credit card is backed 100% by deposit, while others may require only 25-50% of the credit line be backed at any one time. Usually offered to those with bad credit, or people who have no credit, the secured credit card is a great way to build up your credit score for future, unsecured borrowing.

Shopping for Prepaid Credit Cards
In general, there are a few things you should look for when seeking out a prepaid credit card:

Low securitization – A 50% secured card is better than a 100% secured card for the consumer since for every $1 they deposit into the account, they receive $2 in a credit line. Typically, a low securitization will allow for a better credit card, since you’ll get a higher total credit line and more flexibility in how you can spend your money.

No Annual Fee – As you can imagine, secured credit cards do not generate a lot of interest for the banks that issue them—there is no reason to ever pay interest on a secured card, since it is backed with your own deposits. Thus, banks need a good way to make money on the cards they issue, and will often charge an annual fee ranging from $0-35 per year. No annual fees are preferred, since you should never have to pay money just for the privilege of borrowing small amounts of money.

Interest Rates – Unlike other card types, there are two interest rates you should pay attention to with secured cards. First, as with any credit card, you’ll want to make a mental note of the annual percentage rate, or APR, which is assessed on your carried over debt. Secondly, note the rate that you receive on your secured card deposit. The money that you use to back your secured credit card is your own, and it should receive a rate of interest in line with current savings rates. During periods of higher yields, this amount will often be in line with money market accounts and funds, though it will still lag long term deposit interest rates. At 4%, for example, your $500 deposit amounts to $20 in positive interest each year, and you should make sure that you get every dime of it!

Convertibility – Secured credit cards are very often a great way to raise your borrowing profile. Many cards offer the opportunity to advance from a secured card to an unsecured card after several consequitive monthly payments. Others, however, will only let you convert to partially secured, in which case you’ll only have to prepay a fraction of the credit line. It would be advised that you try first for a partially secured card with convertibility and then work from there down to 100% secured cards with convertibility and then to simply 100% prepaid credit cards.

Not Prepaid Gift Cards
One important distinction that must be made is that prepaid credit cards are not the prepaid American Express, Visa, Discover, or MasterCard products that you see in the checkout aisles. No, a prepaid credit card will allow you to spend and pay back what you’ve spent, and will also charge interest on the swipes you make. They cannot be purchased over the counter, and they are not, in any way, intended for use as gift cards. Instead, they require a credit check, a full page application, and a process that is very much in line with any other credit card, secured or unsecured.