Question 1

credit-card-reviews: Why should you trust our credit card reviews?

Accepted Answer

Our credit card reviews are grounded in thorough research and card analysis, aiming to provide you with unbiased and reliable information. Here are the key reasons why you can trust our credit card reviews:

Independence and objectivity: Our goal is to present an unbiased perspective, free from external influences, ensuring that our assessments are based solely on the merits of the credit cards.
Comprehensive research: Our team conducts extensive research on each credit card, considering various factors such as interest rates, fees, rewards programs, customer service, and terms and conditions. This comprehensive approach ensures that we provide a holistic view of each card's offerings.
User experience: We consider the experiences and feedback of actual credit card users. By incorporating real-world experiences, we strive to offer insights into the practical aspects of using a particular credit card, helping you make informed decisions. You can find cardholder scores for our top cards highlighted on their respective review page.
Regular updates: The financial landscape is dynamic and credit card terms frequently change. We regularly update our reviews to reflect any alterations in terms, conditions, or features, ensuring that you receive the most current and relevant information available.
Transparency: We are transparent about our review process and criteria. You can trust that our evaluations are conducted with integrity, and we aim to provide clear and understandable information to empower you in making confident decisions about credit cards.
User-focused approach: Our primary focus is on helping users find the credit card that best suits their needs. Whether you're looking for a low-interest card, rewards program, or specific features, our reviews are designed to cater to a diverse range of preferences and requirements.

Our commitment to independence, thorough research, user experiences, regular updates, transparency, and a user-focused approach form the foundation of trustworthiness in our credit card reviews. We aim to be a reliable resource to assist you in making informed choices about your financial decisions.

Question 2

credit-card-reviews: How to use credit card reviews to compare credit cards

Accepted Answer

To effectively use credit card reviews to compare credit cards, we recommend the following:

Consider your needs. Assess your specific financial needs and priorities. Different credit cards offer various features, such as cash-back rewards, travel benefits, or low-interest rates. Focus on cards that align with your spending habits and preferences.
Compare interest rates and fees. Pay attention to the annual percentage rate (APR), annual fees, and other charges associated with each credit card. A lower APR and reasonable fees can contribute to cost-effective credit card usage.
Review the rewards and perks. Evaluate the rewards programs and perks offered by each credit card. Consider the type of rewards (cash back, points, miles) and how well they match your lifestyle. Additionally, look for sign-up bonuses and other incentives that might benefit you.
Check eligibility requirements. Some credit cards have specific eligibility criteria. Ensure that you meet the requirements for the cards you are interested in to increase your chances of approval.
Compare terms and conditions. Thoroughly read the terms and conditions of each credit card. Pay attention to factors like grace periods, late payment fees, and any special conditions that may impact your overall satisfaction with the card.
Look for additional protections. Some credit cards offer additional benefits, such as purchase protection, extended warranties, or travel insurance. Assess these extra features and consider how they align with your needs.

By systematically comparing credit card reviews and considering your individual financial situation, you can make an informed decision that best suits your needs and preferences.

Question 3

credit-card-reviews: What are the most popular credit card reviews?

Accepted Answer

Cash-back credit cards and travel credit cards consistently rank as the most popular review categories among consumers. The popularity of cash-back and travel credit cards can be attributed to the diverse rewards they offer, flexibility in redemption, financial benefits, consumer preferences, added perks, competition among issuers, and the ability for users to personalize their rewards.

Balance transfer credit cards are another popular choice. One of the primary attractions of balance transfer credit cards is the potential for interest savings. These cards often come with introductory periods during which they offer low or 0% APR on balances transferred to the account. This allows cardholders to consolidate existing high-interest debt and save on interest payments. That said, it's important to note that while balance transfer credit cards can be a valuable tool for managing debt, individuals should carefully consider the terms, fees, and their ability to pay off the transferred balance within the introductory period to maximize the benefits.

Our credit card reviews allow you to explore the unique features, benefits, and incentives offered by these credit card categories. Consider factors such as cash rewards, travel perks, redemption flexibility, and other emerging trends that contribute to the sustained popularity of these cards in the ever-evolving personal finance landscape.

Question 4

cash-back: How do cash back credit cards work?

Accepted Answer

Cash back credit cards provide cardholders with a percentage of their spending back as a rebate or cash reward. Users earn cash back on eligible purchases, and the accumulated rewards can be redeemed as a statement credit, direct deposit, or other options depending on the credit card terms. Learn more about how cash back credit cards work.

Question 5

cash-back: Why do credit cards give cash back?

Accepted Answer

Credit card companies offer cash back as an incentive to attract and retain customers. It's a rewards program that encourages cardholders to use their credit cards for purchases, leading to increased transaction volume. By providing cash back, credit card issuers aim to build loyalty, incentivize spending, and differentiate their products in a competitive market. Additionally, increased card usage allows issuers to earn revenue through interchange fees charged to merchants for processing transactions.

Question 6

cash-back: What are the credit cards with the highest cash back rate?

Accepted Answer

Credit cards with the highest cash back rates can vary based on the issuer, card type, and specific terms. Generally speaking though, the credit cards with the highest cash back rate are typically tiered or rotating category cash back cards.

Tiered cash back cards offer different cash back amounts depending on the purchase category, and most tiered credit cards usually offer one category with an elevated level of cash back. For example, grocery purchases put on that card may earn 6% cash back while gas purchases earn 3%.

Rotating category cash back cards are similar to tiered cards in that some purchases may be eligible for bonus cash back; however, the purchase categories awarding bonus cash back rotate, typically quarterly. For instance, you may earn 5% back on grocery purchases one quarter, but the next quarter, the bonus cash back category is 5% on gas purchases, and only 1% on grocery purchases.

Question 7

cash-back: Are there cash back credit cards with no annual fee?

Accepted Answer

Yes, there are many cash back credit cards with no annual fee. See our top picks for the best no annual fee credit cards, or peruse our list of the best cash back credit cards and use the “no-annual-fee” filter to narrow down the results to only no-annual-fee options.

Question 8

cash-back: Where do I find the cash back rewards information on a credit card?

Accepted Answer

To find information about cash back rewards on your credit card, you can:

Read the terms and conditions. Consult the terms and conditions that came with your credit card. This document typically provides information on the rewards program, including cash back rates, eligible categories, and any restrictions.
Check your credit card statement. Most credit card issuers provide a summary of your rewards earned during the billing cycle.
Access your online account. Most issuers have a dedicated section where you can view your rewards balance, history, and redemption options.
Visit your credit card issuer’s website. Navigate to the rewards or benefits section where you can find detailed information about the cash back program associated with your card.
Contact customer service. If you can't find the information online, call the customer service number on the back of your credit card. The customer service representative can provide details about your cash back rewards, including how they are earned and redeemed.
Use the mobile app. If your credit card issuer has a mobile app, check the app for information on your cash back rewards. Many apps provide a user-friendly interface for managing rewards.

Remember that cash back programs can vary between credit cards, so it's important to familiarize yourself with the specific terms and conditions of your card to maximize your rewards.

Question 9

cash-back: Helpful tips for using cash back credit cards

Accepted Answer

Here are some helpful tips for using cash back credit cards:

Choose the right card for your spending habits. Select a cash back credit card that aligns with your typical spending patterns. Some cards offer higher cash back rates in specific categories like groceries or gas, so choose one that maximizes your rewards based on your regular expenses.
Take advantage of introductory offers. Many cash back credit cards come with introductory offers, such as bonus cash back or 0% APR for a certain period. Capitalize on these promotions, but be aware of the terms and any potential fees.
Understand the terms and conditions. Be aware of how the rewards program works, including cash back rates, categories, and any limitations.
Check for rotating categories. If your card has rotating bonus categories, be aware of when they change.Plan your spending to maximize cash back during those periods.
Use the card for everyday expenses. Use your cash back credit card for everyday purchases, but do so responsibly. This can help you accumulate rewards over time without changing your spending habits significantly.
Keep an eye on special promotions. Credit card issuers often run special promotions or partnerships that can boost your cash back earnings. Stay informed about these opportunities to maximize your rewards.
Pay your balance in full. To avoid interest charges that can outweigh your cash back benefits, aim to pay your credit card balance in full each month. This way, you can enjoy the rewards without incurring additional costs.
Monitor your spending. Keep track of your spending to stay within your budget. While cash back rewards are enticing, overspending can negate the benefits.
Redeem your rewards strategically. Be strategic about how you redeem your cash back rewards. Some cards offer options like statement credits, direct deposit options, or gift cards. Choose the redemption method that provides the most value for your needs.
Review your statements regularly. Regularly review your credit card statements to ensure accuracy and monitor your cash back earnings. Report any discrepancies promptly to the card issuer.

Remember that responsible credit card use is essential for maximizing the benefits of cash back rewards while avoiding unnecessary fees and interest charges.

Question 10

travel: How do travel credit cards work?

Accepted Answer

Travel credit cards work by offering rewards and benefits tailored to travelers. Here's a brief overview of what they typically offer:

Points or miles. Travel credit cards often reward users with points or miles for every dollar spent on purchases. The accumulation of these points or miles forms the basis of the card's rewards program.
Sign-up bonuses. Many travel credit cards come with enticing sign-up bonuses. These bonuses usually require cardholders to spend a certain amount within a specified timeframe, and in return, they receive a significant number of points or miles.
Redemption for travel expenses. The primary feature of travel credit cards is the ability to redeem earned points or miles for travel-related expenses. This can include flights, hotel stays, rental cars, and other travel-related costs. Some cards allow for direct redemption through the card issuer's travel portal, while others may reimburse travel expenses made with the card.
Travel insurance and protections. Many travel credit cards offer various travel-related insurances and protections, such as trip cancellation insurance, rental car insurance, and travel accident insurance. These perks can enhance the overall travel experience and provide added security.
Airport lounge access. Some premium travel credit cards provide access to airport lounges, allowing cardholders to enjoy a more comfortable and convenient travel experience.
Foreign transaction fee waivers. Travel credit cards often waive foreign transaction fees, making them a convenient choice for international travelers.
Point transferability. Some travel credit cards allow users to transfer points or miles to loyalty programs of partner airlines or hotels. This flexibility can enhance the value of the rewards.

Before choosing a travel credit card, carefully review the terms and conditions, including rewards structure, redemption options, fees, and additional benefits. Select a card that aligns with your travel preferences and spending habits to maximize its value.

Question 11

travel: What are the best travel credit cards?

Accepted Answer

The best travel credit card for you depends on your specific travel preferences, spending habits, and the features that align with your needs. Credit card offerings frequently change, so it's a good idea to check for the latest information and read our credit card reviews before making a decision.

Question 12

travel: Do credit cards offer travel insurance?

Accepted Answer

Yes, many credit cards offer travel insurance as part of their benefits package. The types and extent of coverage can vary significantly between cards. Here are common types of travel insurance coverage that credit cards may offer:

Trip cancellation and interruption insurance. Reimburses non-refundable travel expenses if you have to cancel or interrupt your trip due to covered reasons, such as illness, injury, or severe weather.
Trip delay insurance. Provides coverage for additional expenses (such as meals and accommodations) if your trip is delayed for a specified amount of time due to covered reasons.
Lost or delayed baggage insurance. Offers reimbursement for the cost of replacing lost or delayed baggage and its contents.
Emergency medical and dental coverage. Covers emergency medical or dental expenses incurred while traveling.
Rental car insurance. Provides coverage for damage to or theft of rental cars when you pay for the rental with the credit card.
Emergency evacuation insurance. Covers the cost of emergency evacuation and transportation to the nearest adequate medical facility.
Travel accident insurance. Offers coverage in the event of accidental death or dismemberment while traveling.

It's crucial to carefully review the terms and conditions of your credit card's travel insurance coverage. Some important considerations include:

Activation requirements. Some coverage may only be applicable if you meet specific criteria, such as purchasing your travel arrangements with the credit card.
Coverage limits. Understand the maximum amount the insurance will pay out for each type of coverage.
Exclusions. Be aware of situations or conditions not covered by the insurance policy.
Claim process. Familiarize yourself with the procedure for filing a claim and the required documentation.

Not all credit cards offer the same level of travel insurance, and some premium or travel-specific cards may provide more comprehensive coverage. If travel insurance is a crucial factor for you, it's advisable to compare credit cards and choose one that aligns with your specific needs and travel habits.

Learn more about credit card travel insurance.

Question 13

travel: What travel cards reimburse for TSA PreCheck?

Accepted Answer

There are several travel credit cards which offer reimbursement for TSA PreCheck or Global Entry application fees. These programs provide expedited security screening at airports. The reimbursement process typically involves using the credit card to pay for the TSA PreCheck or Global Entry application fee, and then the card issuer provides a statement credit to cover the cost. See our top picks for the best credit cards which reimburse for TSA Precheck and Global Entry.

Question 14

travel: Which travel cards have no annual fee?

Accepted Answer

Travel credit cards with no annual fee are less common than those with annual fees, but they do exist. See our top picks for the best no annual fee credit cards, or peruse our list of the best travel credit cards and use the “no-annual-fee” filter to narrow down the results to only no-annual-fee options.

Question 15

balance-transfer: What are balance transfers on credit cards?

Accepted Answer

A balance transfer on a credit card involves moving the existing debt from one credit card to another, typically with the goal of obtaining more favorable terms, such as a lower interest rate. Balance transfers can be a useful strategy for individuals looking to consolidate debt or save on interest payments. Learn more about balance transfer credit cards.

Question 16

balance-transfer: How do balance transfers work?

Accepted Answer

Performing a balance transfer involves several steps. Here's a step-by-step guide on how to do a balance transfer:

First, choose the right card. Research and choose a credit card that offers a balance transfer option. Look for cards with a low or 0% introductory APR on balance transfers and consider factors such as transfer fees and the regular APR after the introductory period. You’ll also want to check the credit limit. Review the credit limit on the new credit card to ensure it can accommodate the amount you want to transfer, including any fees.
Activate the new card and initiate the balance transfer. Once you receive your new card, activate it and initiate the balance transfer. Collect information from the credit card account you want to transfer the balance from, including the account number, the amount you want to transfer, and any other required details. Log in to your new credit card account online or call the customer service number. Look for the balance transfer option and provide the necessary details, including the account information and transfer amount.
Verify the transfer terms. Confirm the terms of the balance transfer, including any fees associated with the transfer and the promotional APR period. Take note of the expected completion time for the transfer.
Continue making payments. Keep making payments on the old credit card until you confirm that the balance transfer is complete. This ensures you avoid any late fees or penalties.
Monitor the transfer. Regularly check your new credit card account to confirm that the balance transfer has been processed. It may take a few days to several weeks for the transfer to be completed.
Repay the transferred balance. Plan a repayment strategy to pay off the transferred balance, especially if there's a promotional 0% APR period. After this period ends, any remaining balance will be subject to the regular APR.
Consider closing the old account. Once the transfer is complete and you've paid off the balance, consider whether you want to keep or close the old credit card account. Closing an account can impact your credit score, so weigh the pros and cons.

It's important to read and understand the terms and conditions of both the old and new credit cards before initiating a balance transfer. Be aware of any fees, promotional periods, and the regular APR that will apply after the promotional period ends. Additionally, keep in mind that credit card offerings and terms can change, so always check for the latest information.

Learn more about how to do a balance transfer.

Question 17

balance-transfer: What are balance transfer fees?

Accepted Answer

Balance transfer fees are charges imposed by credit card issuers when you transfer a balance from one credit card to another. These fees are typically expressed as a percentage of the amount being transferred and are added to the balance on the new credit card. Some credit cards offer promotional periods with reduced or waived balance transfer fees as an incentive for new cardholders. Be sure to check for any such offers when considering a balance transfer.

Question 18

balance-transfer: Do balance transfers hurt credit score?

Accepted Answer

Balance transfers can have both positive and negative effects on your credit score, depending on various factors. For example, they can have a positive effect as a new balance transfer credit card can help your credit utilization ratio, as well as help you consolidate your debt and therefore simplify your debt management. This can help you make your payments more consistently, which is a positive factor in your credit history.

On the other hand, when you apply for a new credit card to facilitate the balance transfer, the credit card issuer may perform a hard inquiry on your credit report. Hard inquiries can have a small, temporary negative impact on your credit score. Opening a new credit account can also affect the average age of your credit accounts. Finally, if you close the old credit card account after transferring your balance, it may reduce your total available credit. This, in turn, can impact your credit utilization ratio.

While balance transfers can influence your credit score, the impact is generally temporary, and responsible use of credit can help mitigate any potential negatives.

Learn more about how balance transfers can affect your credit score.

Question 19

0-apr: Is 0 APR good for a credit card?

Accepted Answer

Yes, 0% APR on a credit card is a great perk especially if you plan to carry a balance or need to make a large purchase. That said, 0% APR is typically only an introductory offer for new cardholders, good for a set period of time.

With a 0% APR you will not be charged interest on your balances during the promotional period. This can result in significant savings, especially if you have a substantial balance or have a large purchase on the horizon. If you are planning to make a significant purchase and need some time to pay it off, a 0% APR card can provide you with an interest-free period, which can be more cost-effective than other financing options.

These offers are also ideal for debt consolidation. If you have existing credit card debt with higher interest rates, transferring the balance to a card with a 0% APR can be a smart move as it allows you to consolidate your debt and pay it off without accruing additional interest charges. In that case, you would want to search for a balance transfer card offering 0% APR.

Again, because 0% APR is usually only an introductory benefit, it is important to pay off any balances you are carrying before the promotional period expires. After this, your card’s regular APR will apply to any unpaid balances.

Question 20

0-apr: Is 0% intro APR better than no annual fee?

Accepted Answer

If you plan to carry a balance on your card, then yes, 0% intro APR is often a better perk than no annual fee. A 0% intro APR allows you to carry a balance without incurring interest charges during the promotional period. This can be advantageous if you need to make a large purchase or if you are consolidating existing debt. This flexibility is invaluable as it provides a temporary interest-free period, giving you time to pay off your balance without accruing interest. That said, 0% intro APR is usually a promotional offer and has a limited duration. After the introductory period ends, regular APR will apply.

On the other hand, having no annual fee means you will not incur a yearly charge for holding the card. This is beneficial for those who do not want to pay an additional fee just to have the credit card. If you pay your balance in full each month and do not carry a balance, a card with no annual fee might be the more cost-effective choice.

In many cases, credit cards can have both features – a 0% intro APR and no annual fee. It is essential to consider your spending habits, whether you will carry a balance, and how you plan to use the card when deciding which features are more important for your financial situation.

Question 21

0-apr: How to use 0% APR credit cards

Accepted Answer

Using a 0% APR credit card strategically can be a smart financial move, whether you are planning to make a large purchase or looking to consolidate existing debt. Here's how to make the most of a 0% APR credit card:

Understand the terms and conditions. Read the card's terms and conditions carefully, paying attention to the length of the introductory 0% APR period, any associated fees, and what the APR will be after the promotional period ends.
Make a plan. Have a clear plan for how you will use the card. Whether it is for a large purchase or to transfer existing balances, know how much you can realistically pay off before the 0% APR period expires.
Create a budget. Create a budget that includes your new credit card expenses. Knowing how much you can afford to pay each month can help you avoid accumulating debt once the promotional period ends.
Avoid additional debt. While the card may have a 0% APR, it is essential to avoid accumulating additional debt during the promotional period. Only use the card for planned expenses that you can afford to repay.
Pay on time. Ensure that you make your monthly payments on time. Late payments could result in the loss of the promotional APR, and you may be subject to penalty fees.
Pay off the balance before the introductory period ends. The key to maximizing the benefits of a 0% APR card is to pay off the balance before the promotional period expires. This helps you avoid higher interest charges when the regular APR kicks in.
Evaluate your options. As the introductory period comes to an end, evaluate your financial situation and the card's terms. You may choose to pay off the remaining balance, transfer it to another 0% APR card, or explore other financing options.

Remember that responsible credit card use is crucial. While a 0% APR card provides a temporary interest break, it is important to manage your finances wisely and avoid accumulating debt that you cannot repay.

Question 22

business: What credit score do you need for a business credit card?

Accepted Answer

The credit score requirements for a business credit card can vary depending on the card issuer and the specific card. Business credit cards are typically designed for small business owners, and the approval criteria may consider both your personal and business credit history.

To qualify for the best business credit cards with the most favorable terms, including lower interest rates and higher credit limits, a credit score in the excellent range (typically 781 and above) is often preferred. That said, many business credit cards are accessible to those with good credit (typically 661 and above). While you may not qualify for the most premium cards, you can still find options with reasonable terms and benefits. If you only have fair credit (usually around 580-669) you might still qualify for a card, but the terms likely won’t be as favorable. You might encounter high interest rates and lower credit limits.

It's important to note that while your personal credit history is often a significant factor in business credit card approvals, issuers may also consider your business's financial information, such as revenue and time in business.

Before applying for a business credit card, it's advisable to check your personal and business credit reports. Address any inaccuracies and work on improving your credit score if needed. Additionally, be prepared to provide information about your business, such as its structure, revenue, and years in operation, during the application process.

Question 23

business: Do business credit cards affect personal credit?

Accepted Answer

Yes, in many cases, business credit cards can impact your personal credit, and there is often a close relationship between personal and business credit when it comes to small businesses and business credit cards.

Most small business credit cards require a personal guarantee from the business owner. This means that you, as the business owner, are personally responsible for repaying any debts incurred on the business credit card. If the business is unable to pay, the card issuer can pursue you personally for the outstanding balance.

Business credit card activity is often reported to both business credit bureaus and personal credit bureaus. This means that the way you manage your business credit card, including making payments on time or carrying a high balance, can impact both your business credit score and your personal credit score.

When you apply for a business credit card, the card issuer may perform a hard inquiry on your personal credit report. This inquiry can have a temporary impact on your credit score. However, the impact is usually minor, and as you make on-time payments, it can have a positive effect over time.

Finally, the balance on your business credit card can affect your personal credit utilization ratio. This ratio is the percentage of your total available credit that you are using and is a significant factor in determining your personal credit score. Keeping your business credit card balances low relative to your credit limit can positively impact your personal credit.

Learn more about how business credit cards affect personal credit.

Question 24

business: What are the benefits of business credit cards?

Accepted Answer

Business credit cards offer a range of benefits that can be valuable for entrepreneurs and small business owners. Here are some key advantages of using a business credit card:

Separation of business and personal expenses. Using a business credit card helps maintain a clear separation between personal and business expenses. This separation can simplify accounting and make it easier to track and manage business-related transactions.
Expense tracking and reporting. Business credit cards often provide detailed monthly statements, categorized by expense type. This makes it easier for business owners to track spending, analyze expenses, and generate reports for budgeting and tax purposes.
Employee expense management. Many business credit cards allow business owners to issue additional cards to employees. Owners can set spending limits on these cards, monitor individual and overall spending, and receive separate statements for each card. This can help simplify expense management for businesses with multiple employees.
Rewards. Business credit cards frequently offer rewards programs, including cash back, travel rewards, and points. These rewards can provide financial benefits for regular business spending. Choosing a card with rewards that align with your business needs can maximize the value.
Access to capital. Business credit cards provide a revolving line of credit, offering businesses quick access to capital when needed. This can be particularly valuable for managing cash flow, making necessary purchases, or seizing opportunities.
Travel benefits. Business credit cards often come with travel-related perks such as travel insurance, airport lounge access, and discounts on hotels and rental cars. These benefits can be particularly valuable for business owners who frequently travel for work.
Purchase protections. Business credit cards may offer purchase protections, such as extended warranty coverage, purchase protection against theft or damage, and reimbursement for items purchased with the card.
Flexible payment options. Business credit cards offer flexibility in payment options. Business owners can choose to pay the full balance each month to avoid interest charges or carry a balance over time, depending on their cash flow needs.

Question 25

airlines: What are airline credit cards?

Accepted Answer

Airline credit cards are credit cards that are co-branded with a specific airline. These cards are designed to reward cardholders with various travel-related benefits and perks, especially those associated with the partnering airline. Here are some key features and benefits commonly associated with airline credit cards:

Airline miles or point. One of the primary features of airline credit cards is the ability to earn bonus miles or points for every dollar spent on the card with that airline. These miles or points can be redeemed for free or discounted flights, upgrades, and other travel-related expenses.
Sign-up bonuses. Many airline credit cards offer attractive sign-up bonuses to entice new cardholders. These bonuses often include a significant number of bonus miles or points after the cardholder spends a certain amount within a specified time period. These bonuses are typically enough for a free roundtrip flight, depending on the dates and destination.
Free or discounted flights. Accumulated miles or points can be redeemed for free or discounted flights on the partnering airline or its alliance partners. Some cards also allow flexibility in using points for other travel expenses, such as hotel stays or car rentals. Additionally, some airline credit cards offer companion passes, allowing companion travel for just the cost of taxes and fees.
Travel insurance. Some airline credit cards provide travel insurance coverage, including trip cancellation insurance, baggage protection, and rental car insurance, offering added peace of mind for cardholders when they travel.
Airport lounge access. Premium airline credit cards may offer complimentary access to airport lounges, providing cardholders with a more comfortable and relaxing travel experience.
Priority boarding and check-in. Cardholders may receive priority boarding and check-in privileges, allowing them to access flights more quickly and efficiently.
Free checked bags. Many airline credit cards allow cardholders and members of their party to check their bags for free when traveling with the associated airline.

Question 26

airlines: Does it make sense to have multiple airline credit cards?

Accepted Answer

Having multiple airline credit cards can make sense for some individuals, but it depends on their travel habits, financial goals, and preferences.

For individuals with diverse travel habits, having multiple cards from different airlines or alliances can offer a range of benefits and rewards. This approach allows for the diversification of rewards, enabling cardholders to access different perks such as unique airport lounges or partner airline benefits. Additionally, it provides an opportunity to maximize sign-up bonuses, as each card may offer distinct introductory rewards.

The flexibility in travel options is another advantage, particularly when airlines within the same alliance share rewards programs, providing more choices for destinations and carriers. However, it's crucial to carefully consider the costs associated with annual fees for each card and evaluate whether the combined benefits justify these expenses.

Question 27

airlines: Are airline credit cards worth it?

Accepted Answer

Whether airline credit cards are worth it depends on individual preferences, travel habits, and financial goals. That said, if you regularly travel by air, and especially if you regularly use the same airline, airline credit card can certainly be worth it.

It's essential to assess your own spending habits, travel frequency, and preferences to determine if an airline credit card aligns with your lifestyle. For individuals who maximize the benefits and effectively manage the associated costs, an airline credit card can be a valuable tool. However, for those who infrequently travel or don't fully utilize the card's features, alternative credit card options may be more suitable.

Question 28

hotel: What credit score is needed for a hotel credit card?

Accepted Answer

The credit score needed for a hotel credit card can vary depending on the specific card and the issuer's criteria. Hotel credit cards are typically categorized as rewards or travel credit cards, and they may have different credit score requirements. In general, hotel credit cards are often issued to individuals with good to excellent credit scores.

Question 29

hotel: Can credit cards get you free hotel stays?

Accepted Answer

Yes, credit cards can indeed help you earn free hotel stays through various rewards programs. Many credit cards, especially those in the travel and hotel categories, offer points, miles, or other forms of rewards that can be redeemed for complimentary hotel accommodations. Here's how credit cards can contribute to free hotel stays:

Hotel rewards cards. Some credit cards are co-branded with specific hotel chains, and they earn points or miles directly within that hotel's loyalty program. These points can then be redeemed for free nights or upgrades within that hotel's network.
Flexible travel rewards cards. Many travel rewards credit cards offer points or miles that can be redeemed for a variety of travel expenses, including hotel stays. These cards often have partnerships with multiple hotel chains, providing flexibility in choosing where to redeem your rewards.
Sign-up bonuses. Credit cards often offer sign-up bonuses, which can include a substantial number of points or miles. These bonuses can be a quick way to accumulate enough rewards for a free hotel stay, especially if the card is associated with a hotel loyalty program.
Point transfer programs. Some credit cards allow you to transfer points to hotel loyalty programs at favorable exchange rates. This can be a strategic way to leverage your credit card rewards for free hotel stays within a specific hotel chain.
Complimentary nights. Certain credit cards, especially premium or hotel-branded cards, may offer annual complimentary night certificates as part of their benefits. These certificates can be used for a free night at participating hotels.
Elite status benefits. Some credit cards offer elite status within hotel loyalty programs as part of their perks. This elite status often includes benefits like room upgrades, late check-out, and additional points earning, making it easier to earn free stays.

Question 30

hotel: Are hotel credit cards worth it?

Accepted Answer

The worth of a hotel credit card depends on how well the card's benefits align with your travel habits and preferences. If you frequently stay at a specific hotel chain and can maximize the associated rewards and perks, a hotel credit card may be a valuable addition to your wallet. However, if your travel patterns are more varied, a general travel rewards card with flexible redemption options might be a better fit.

Question 31

low-apr: What is the difference between low rate and 0% APR credit cards?

Accepted Answer

Low-rate credit cards offer a relatively low ongoing interest rate on purchases, balance transfers, and sometimes cash advances. The exact interest rate can vary, but it is typically lower than the average interest rate on credit cards. Zero percent APR credit cards, on the other hand, offer an introductory period during which the cardholder pays no interest on specific transactions, such as purchases or balance transfers. After the introductory period expires, a standard interest rate will apply.

Low-rate credit cards don't have a 0% APR introductory period. Instead, they offer a consistent, lower interest rate from the start. These cards are designed for individuals who may carry a balance on their credit card and want a lower interest rate over the long term. Credit cards offering 0% APR for a promotional period are often used by individuals looking to make large purchases or transfer existing balances to avoid paying interest during the introductory period.

Question 32

low-apr: How to lower APR on credit cards

Accepted Answer

Lowering the APR on your credit cards can save you money on interest charges. While there's no guaranteed method to lower your APR, here are some strategies you can try:

Negotiate with your credit card issuer. Start by calling your credit card issuer and inquiring about the possibility of a lower interest rate. Highlight your good payment history, creditworthiness, and the length of time you’ve been a customer. It’s also worth mentioning any competing offers you may have received from other credit card companies.
Improve your credit score. A higher credit score may make you eligible for lower interest rates. Focus on paying your bills on time, reducing your credit card balances, and addressing any negative items on your credit report. It’s also important to regularly check your credit report for inaccuracies and dispute and errors you may find.
Consolidate or transfer balances. Consider consolidating multiple high-interest credit card balances into a single, lower-interest loan or credit card.
Explore other credit card options. Research other credit card options that offer lower ongoing interest rates. Compare different cards and their terms, keeping in mind your spending habits and needs.

Question 33

low-apr: What credit cards have the lowest interest rate?

Accepted Answer

Credit card interest rates can vary widely, and the rate you receive often depends on your creditworthiness. Additionally, credit card companies may change their interest rates and terms over time. Typically speaking, cards requiring excellent credit are likely to offer the most favorable terms.

Question 34

low-apr: Why is it important to find a credit card with a lower APR?

Accepted Answer

Finding a credit card with a lower APR can be important for several reasons, as it can have a significant impact on your overall financial well-being. Some of those reasons include:

Reduced interest costs. The primary advantage of a lower APR is that it reduces the amount of interest you'll be charged on outstanding balances. This is particularly important if you carry a balance on your credit card from month to month.
Cost savings over time. Lowering your interest rate can result in substantial cost savings over the long term, especially if you have significant credit card debt. A lower APR means you'll pay less in interest for each month you carry a balance.
Debt payoff. If you're working on paying down existing credit card debt, a lower APR can accelerate your debt payoff. More of your payment will go towards the principal balance rather than interest charges.
Financial flexibly. A lower APR provides more financial flexibility by reducing the burden of interest on your budget. You'll have more disposable income to allocate toward other financial goals, such as saving or investing.
Improved credit score. Responsible credit use, including timely payments and managing credit card debt, can positively impact your credit score. A higher credit score may make you eligible for better financial products and lower interest rates in the future.
Avoidance of debt cycles. High-interest debt can contribute to a cycle of debt that becomes challenging to break. By securing a credit card with a lower APR, you can work towards avoiding this cycle and building a healthier financial foundation.
Peace of mind. Knowing that you have a credit card with a lower APR can provide peace of mind, especially during uncertain financial times. It can offer a safety net without the added stress of high-interest charges.

While a lower APR is beneficial, it's also crucial to consider other factors when choosing a credit card, such as annual fees, rewards programs, and additional benefits. Finding a balance between these factors can help you choose a credit card that aligns with your financial goals and spending habits.

Question 35

gas: Do gas credit cards provide lower pump prices?

Accepted Answer

Gas credit cards, also known as gas rewards credit cards, typically do not directly provide lower pump prices at gas stations. Instead, these credit cards offer rewards or cash-back incentives for eligible purchases, including fuel purchases. The rewards are often in the form of cash back, points, or discounts that can be redeemed for various benefits, including statement credits, gift cards, or other merchandise.

While these credit card rewards can contribute to saving money on overall expenses, they don't directly reduce the pump prices at gas stations. However, some gas credit cards may offer additional benefits, such as discounts or cash-back promotions with specific gas station partners.

Question 36

gas: What are the best credit cards for gas rewards?

Accepted Answer

When searching for the best credit cards for gas rewards, make sure that bonus earnings on gas purchases is a perk of the card. The best gas rewards credit cards will offer a bonus rate, sometimes up to 5%, on purchases made at eligible gas stations. If gas isn’t a bonus category of a particular card, you’ll likely only earn 1%, or maybe at most, 2%, back on fuel purchases. That said, if gas is a category your spend heavily in you should consider a credit card offering bonus rewards on those purchases.

Before choosing a credit card, it's also essential to consider factors such as annual fees, interest rates, and other benefits besides gas rewards.

Question 37

no-annual-fee: Why do some credit cards have annual fees?

Accepted Answer

Credit cards with annual fees typically offer additional benefits, perks, and rewards programs that can justify the cost for certain cardholders. It's important for individuals considering a credit card with an annual fee to assess whether the benefits offered align with their spending habits and financial needs. For some, the value of the rewards and perks can outweigh the annual fee, but for others, a no-annual-fee card may be more suitable.

Question 38

no-annual-fee: How do no annual fee credit cards make money?

Accepted Answer

No annual fee credit cards generate revenue for issuers through various channels, even though they don't charge cardholders an annual fee. Here are some ways no annual fee credit cards make money:

Interchange fees. Every time you make a purchase with your credit card, the merchant pays a fee to the credit card issuer. This fee is known as the interchange fee, and it is a percentage of the transaction amount.
Interest charges. If cardholders carry a balance from month to month and accrue interest on their outstanding balance, the credit card issuer earns money through interest charges. Interest is typically charged on the remaining balance after the grace period for new purchases has ended.
Late fees. Credit card companies charge late fees when cardholders fail to make their minimum monthly payments by the due date. These fees contribute to the issuer's revenue.

While no-annual-fee credit cards may not directly generate revenue from annual fees, they rely on these other revenue streams to sustain their operations and profitability. It's important for cardholders to be aware of these potential charges and use their credit cards responsibly to avoid additional fees and interest charges.

Question 39

no-annual-fee: Is it good to get a credit card with no annual fee?

Accepted Answer

Getting a credit card with no annual fee can be a prudent financial decision for many individuals, especially those who are cost-conscious or don't plan to use the card extensively for premium perks. However, it's crucial to carefully review the terms and conditions of any credit card, including those with no annual fee. While these cards may lack annual fees, they may have other fees, varying interest rates, and different rewards structures. Assess your spending habits, financial goals, and the benefits offered by the card to determine if a no-annual-fee credit card aligns with your needs.

Question 40

no-foreign-transaction-fees: What does no foreign transaction fees mean for credit cards?

Accepted Answer

When a credit card advertises "no foreign transaction fees," it means that the cardholder won't be charged an additional fee for making purchases in a foreign currency or from merchants located outside their home country. Foreign transaction fees typically range from 1% to 3% of the transaction amount and can add up, especially for frequent international travelers.

It's essential for cardholders to be aware that while the credit card itself may not charge foreign transaction fees, some merchants or banks abroad may impose their own fees for currency conversion.

Question 41

no-foreign-transaction-fees: Which credit cards have no foreign transaction fees?

Accepted Answer

Most often, travel credit cards offer no foreign transaction fees. That said, there are a few cash-back credit cards that also offer this perk.

Question 42

student: Do you need a proof of income for student credit cards?

Accepted Answer

Yes, when applying for a student credit card, most issuers will require some form of proof of income or financial ability to repay any credit extended. However, the income requirements for student credit cards are typically lower compared to other types of credit cards.

Students may not have a regular income from employment, but credit card issuers understand this and often consider various sources of income when evaluating applications. Common sources of income for students may include:

Part-time employment
Scholarships or grants
Allowances or financial support
Savings or investments

It's important to note that having a source of income is not only a requirement but also a responsible practice, as it ensures that you can manage your credit responsibly and make timely payments. When applying for a student credit card, be prepared to provide information about your income, and the credit card issuer will assess your application based on various factors, including your ability to handle credit responsibly.

Question 43

student: Do student loans count as income for student credit cards?

Accepted Answer

No, student loans are generally not considered income when applying for a student credit card. When credit card issuers evaluate your application, they typically look for regular and stable sources of income that demonstrate your ability to repay any credit extended.

Student loans are a form of borrowed funds, and they are expected to be used for educational expenses, not as a source of income. Issuers are more interested in sources of income that reflect your ability to make regular payments on the credit card.

When applying for a student credit card, you may need to provide information about any part-time employment, scholarships, grants, allowances, or financial support from parents or guardians as your sources of income. It's essential to be honest and accurate about your financial situation when applying for a credit card, and relying on student loans as income is generally not advisable.

Question 44

student: Do student credit cards expire after graduation?

Accepted Answer

No, student credit cards typically do not automatically expire after graduation. However, there are some considerations to keep in mind:

Student status. Student credit cards are designed for individuals who are currently students, and issuers often extend these cards to individuals with limited credit histories. After graduation, you may no longer meet the criteria for a student credit card.
Credit limit and terms. The terms and conditions of your student credit card may change after graduation. Your credit limit, interest rates, and other terms could be adjusted based on your financial situation and credit history at that time.
Upgrading or transitioning. Some credit card issuers may offer the option to transition from a student credit card to a standard credit card with different features and rewards. This could involve a change in your card's terms and conditions.
Application for a new card. After graduation, you may be eligible for other credit cards that cater to individuals with more established credit histories. You might choose to apply for a new credit card that better suits your post-graduation needs.

It's essential to stay informed about the terms of your credit card and to contact your credit card issuer to discuss any changes or potential transitions after graduation. Additionally, practicing responsible credit behavior, such as making timely payments and managing credit responsibly, can contribute to a positive credit history, potentially opening up opportunities for different credit cards as your financial situation evolves.

Question 45

student: What credit score is needed for a student credit card?

Accepted Answer

Student credit cards are designed for individuals with limited or no credit history, and they often have more relaxed eligibility requirements compared to other credit cards. Generally, a good credit score is not required to qualify for a student credit card. Many issuers understand that students are building their credit for the first time, so they may consider factors beyond just the credit score.

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