PT Money » Credit Cards

Slate from Chase 15 Month Balance Transfer with NO FEE

Michael — Tue, 07 Feb 2012 19:15:18 +0000

Balance transfer credit cards often provide the greatest savings for consumers even though they don’t have big up front bonuses or rewards programs. But even with the savings, one of the obvious drawbacks of applying for a balance transfer card is the balance transfer fee you’ll immediately be charged. Generally, this fee is 3% which only adds to the amount of debt a new cardholder has but for a limited time only, the Slate® from Chase is offering a 0% intro APR on balance transfers for 15 months, with NO balance transfer fee for 30 days.

The 0% intro APR offered on the Slate® from Chase also includes purchases made so for 15 months, this card will not charge any fee of any kind (as long as you pay on time and stay within your limit!). Since this card doesn’t charge a balance transfer fee, every cardholder will receive the maximum amount of savings within the twelve month interest free period.

Once the intro rate expires, the purchase and balance transfer APR becomes 11.99% – 21.99% variable depending on your credit history. Remember to make your balance transfer within the FIRST 30 days, otherwise you will be charged a 3% balance transfer fee.

The bummer about owning the Slate from Chase is that it does not have a rewards program so once you’ve exhausted the intro rate, the card has very little everyday use. This card doesn’t have an annual fee, so there’s no harm in keeping it in your wallet but try to avoid building up debt with this card … there are many other better credit cards available for everyday spending.

There’s no denying that if you have credit card debt and would like a year of interest free payments, the Slate® from Chase card and the limited time offer of no balance transfer fee is perfect for you. The no balance transfer fee offer is available on a select number of sites only until the end of the year, so to apply, use any link you find in this post.

Slate from Chase 15 Month Balance Transfer with NO FEE is a post from: PT Money: Personal Finance by PT.
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American Express Prepaid Card – Swing and a Miss

Michael — Fri, 03 Feb 2012 20:00:53 +0000

The American Express Prepaid Card was launched in June of 2011 and when it came out, I thought it was just a great prepaid card for unbanked consumers. I mean, just look at the fee structure for the card and the only thing you’ll find is a $2 ATM fee if you withdraw cash more than once a month (the first withdrawal is free).

No monthly fee, no account minimums, no usage fees or direct deposit hoops to jump through; the American Express Prepaid Card appears to have solved the problem of fee ridden prepaid cards that take advantage of consumers.

The Catch

But the problem with the American Express Prepaid Card, even though it charges nothing in fees, is that owners who want to load the card with cash must pay $4.95 each and every time. Loading the card with your checking account or AMEX credit card is free, but cash requires a Green Dot MoneyPak, which costs $4.95.

Many Americans may think:

“Well jeez Michael that’s not so bad, I’ll just load the card with my American Express credit card or checking account and avoid the fees. Still beats all of the other prepaid cards on the market today.”

In that respect, the American Express Prepaid Card is awesome. But I would question why consumers that own checking accounts and credit cards are screwing around with a prepaid card. I mean, what’s the purpose of owning an American Express prepaid card if you are already banked? Anyone that chooses to make purchases with a prepaid card rather than their rewards earning credit card or checking account should contact me immediately … I have a bridge to sell.

Kudos to Tim Chen over at NerdWallet who first reported this sneaky fee when the card was launched. Because the Green Dot MoneyPak isn’t a fee you pay on your card, American Express can claim they promote a no free prepaid card. True to a certain extent, false where it matters most. American Express does not advertise this fee but does show it on their FAQ page.

American Express Prepaid Card Value

Even though I hate the way American Express conceptualized this prepaid card, it still holds value for some.

Parents looking to provide their teens a prepaid card would benefit from owning this particular prepaid card as it’s virtually fee free and can track their child’s spending
Consumers with less than stellar credit that do have non-interest bearing checking accounts who can transfer money for free should use this prepaid card exclusively.
People who own a prepaid debit card that are charged more fees than it costs to load your money when you need it. For some, $500 on a prepaid card can last months and if the only fee is $4.95, it may be worth it.

American Express has always been regarded as the most liked and trusted credit card issuer by consumers. Customer service and perks continue to exceed expectations but it’s my opinion that the American Express Prepaid Card misses the mark here. For unbanked consumers in need of a prepaid debit card … look elsewhere.

American Express Prepaid Card – Swing and a Miss is a post from: PT Money: Personal Finance by PT.
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No Balance Transfer Fee Discover More Card Promo

Michael — Fri, 13 Jan 2012 19:45:32 +0000

Years ago, one of the ways that credit card issuers could bring in new business was by offering a no fee balance transfer credit card. This card would allow the consumer to transfer an existing balance onto their new credit card, without having to pay an up-front fee. Coupled along with a 0% balance transfer offer, the credit card issuer would not make a penny in interest OR fees, making the offer a ridiculously awesome one and one that proved to be too good to last.

Welcome back the Discover® More® Card – No Balance Transfer Fee, a credit card that offers an intro 0% APR for 12 months on both purchases and balance transfers and includes no balance transfer fee. This means that any balance transfer you make within the intro period is free of charge. Let’s run a quick example to see just how much you can save on interest and fees with the Discover More Card – No Balance Transfer Fee.

Assuming you have $5,000 in credit card debt at 20% interest and you make only the minimum $100 payment each month, you can save just under $1,000 in interest payments by using this card. Not only that but you will now be able to pay your balance off faster AND be provided a top notch rewards program that can save you money on everyday purchases.

The Discover® More® Card – No Balance Transfer Fee rewards customers with 0.25% cash back on all purchases for the first $3,000 spent annually. From there, it moves to 1% cash back on all purchases after the spend limit has been met and each and every day, consumers can earn 5% cash back in rotating categories throughout the year. One added bonus, the Discover More Card – No Balance Transfer Fee does not have an annual fee, making it free to own.

This limited time offer is likely available only until the end of the month so the time to act is now. If you have credit card payments and could use a full year off with no interest and no fees, consider the Discover® More® Card – No Balance Transfer Fee and it’s 0% intro APR on balance transfers for 12 months.

No Balance Transfer Fee Discover More Card Promo is a post from: PT Money: Personal Finance by PT.
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What We Need from Suze Orman Instead of Another Celebrity-Endorsed Useless Prepaid Debit Card

Philip Taylor — Tue, 10 Jan 2012 21:17:49 +0000

If you don’t want to use (or can’t use) a credit card, then don’t.

Place your money into a bank or credit union and use their debit card. Despite what you may hear, not all banks charge debit card fees. Find a bank or credit union that doesn’t charge you money each month to hold (and provide access to) your money.

If you are unable to get a bank or credit union account for whatever reason, then wait until you can. If you must get some form of card, then you may want to consider a prepaid card. This should really be seen as a last resort. If you need to get a prepaid card realize that you are more than likely going to pay some service fees.

Right now there are two prepaid cards on the market that I’m aware of that give you the ability to avoid all fees by jumping through a few hoops (i.e. minimum balance, direct deposit, etc.). The rest of the cards in this market are pretty bad in the sense that they are marketed as a long-term solution and that you are paying a bunch of fees to access your own money.

Russell Simmons has a card. It’s bad. The Kardashians created a “kard” in this market. It was bad too. So bad, that it was run out of town. Who’s up for another celebrity-branded prepaid card? This time it’s not just a celebrity. It’s the self-proclaimed “Most Trusted Personal Finance Expert” in America today, Suze Orman. She just released The Approved Card. I like Suze, but I don’t like that she has created this card and is marketing it in this way.

Me? Ignorant of the big picture? Let's have a look.

Here’s why, after seeing last night’s Nightline where Suze preaches about getting rid of holiday debt, of all things, that I can’t believe Suze is pushing this card:

1. The card comes with a $3 monthly fee, or $36 a year, plus a bunch of other possible fees depending on how you use it. That’s very close to the $5 per month fee that Bank of America backed off on. And with Bank of America at least you get a bank, with checks and tellers, and loads of ATMs.

At best this card is on-par with the Upside Visa prepaid card. Why not create a truly no-fee prepaid card? Why would Suze create this versus just partnering with someone like PerkStreet, a card that is truly helping consumers get out of debt and get rewards for spending? Ironically, Bancorp is backing both deals.

2. The card is marketed as an “easier, smarter way to be debt free”. As opposed to what? Cash? It’s certainly not easier or smarter than a no-fee bank debit card.

3. The credit project is dead on arrival. Your activity on this card will be anonymously reported to one of the credit bureaus (TransUnion), in hopes that they will one day consider it for inclusion in your credit report. This will never happen. Debit or prepaid spending has absolutely nothing to do with credit and your ability to be viewed as credit-worthy.

By definition, debit and prepaid spending should not be on your credit report. Anyone who thinks otherwise is living in la la land. But does that stop Suze from using the credit project thing as a selling point? Nope. In her interview with Huffington Post, she says,

“Middle-class Americans…don’t want a credit card in their wallet because don’t want ability to get themselves into trouble again,” she said. “The problem with that is if you spend money on debit or cash, it doesn’t report to the credit bureaus so it doesn’t give you a FICO score.” “I wanted to create (a scenario) where people who pay with debit and cash are rewarded…”

This card will not help your credit score or report. Don’t take my word for it. In this interview with Fox Business, Jon Ulzheimer points out that the fine print from the Approved Card site:

“The information we share with TransUnion concerning your Approved Card account will not appear in your credit report.”

In summary, the Approved Card is just another prepaid debit card, not a financial product that should be marketed as a “revolution” or a “movement”. If you want to use one for a month or so while you wait to get a bank account, that’s cool. If you want to give one to your kid while he/she is in college, that’s probably a smart move. But this isn’t a smart, long-term solution for the “middle-class” or even the un-banked.

The smart, long-term solution is to get consumers involved with a responsible bank or credit union and then gradually introduce real credit if you want to build a healthy credit score. Suze should have done what Dave Ramsey has done and partnered with a real bank (in an ad deal). Instead, she created her own prepaid card product and is marketing it to the masses, instead of who it should be aimed at: the un-banked looking for a short-term solution.

Here’s two more takes on the card that go a bit easier:

Suze Orman to Offer Her Own Prepaid Debit Card by Ron at the NY Times
Suze Orman Goes Prepaid by Felix Salmon (on second though…)

What do you think? Is the Approved Card a good financial product for the middle class? Should Suze get a pass where Kim Kardashian did not?

What We Need from Suze Orman Instead of Another Celebrity-Endorsed Useless Prepaid Debit Card is a post from: PT Money: Personal Finance by PT.
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The Death of the Gas Rewards Credit Card

Michael — Sat, 07 Jan 2012 04:30:32 +0000

Working from home has it’s advantages and one of them is the infrequency in which I have to fill-up my Mustangs gas tank. When I worked an office job, I found myself at the gas station at least once a week and these days, it’s more like once a month. Living in a big city working for myself means even when I’m outside, I have all the public transportation I need to get me around. But these past two weeks have been spent driving around the state trying to plan my wedding and I after I filled up at a few different gas stations, I realized that gas rewards credit cards are just about dead.

A few years ago, gas stations began charging customers a higher price to use a credit card rather than if they used cash. Generally, this price was a few pennies different so whether you spent $3.50 per gallon or $3.47 per gallon was of little consequence. Some of the best gas rewards credit cards offer discounts of up to 5%, meaning you would save close to $0.19 a gallon when the price was $3.50. But what I saw in the great state of New Jersey tells me I should stop advocating the use of a gas credit card.

On average, the difference between the cash price and credit card price across all gas stations I went to was twenty cents. Never before had I seen regular cost some consumers $3.10 and others $3.30 at the same gas station but that was how I saw it these past two weeks. Regardless of how good your gas rewards credit card treats you, there’s no scenario where you’d save more money by using your credit card rather than cash. Total bummer.

I checked various gas stations and every single one of them had a big difference between credit card and cash prices. Considering the cost of using credit cards to merchants, there’s a good chance you’ll be seeing a bigger spread to gas prices in your state (if you haven’t seen one already). In that case, the wise financial play may be just to use cash.

Are you noticing the widening of cash vs. credit prices at your local gas station?

The Death of the Gas Rewards Credit Card is a post from: PT Money: Personal Finance by PT.
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Platinum Card from American Express Review

Michael — Tue, 03 Jan 2012 21:00:29 +0000

Determining the value of something in a free-market economy can be difficult these days. In some cases, a select set of experts can define the price on a certain product and in other cases, somethings value can only be determined by the person that owns it. The Platinum Card® from American Express is looked upon by most Americans as a terrible waste of money because it charges a very large $450 annual fee but if you are a consumer with excellent credit that loves to travel, you’ll save a lot more than this annual fee.

Immediately following $1,000 in spending after the first three months, every cardholder will earn 25,000 membership rewards points (valued at around $250). In addition to the up-front bonus this card offers, all Platinum Card from American Express members will also receive dozens of perks. Most notably:

An annual $200 airline fee credit (good for baggage, drinks, food and other airline expenses)
Access to airport lounges around the world (Admiral Club, Sky Club, US Airways Club … just to name a few)
One rewards point for every dollar you spend on all purchases
Double rewards points when you book travel online
Global Entry service for international travel which allows you quick access through airports during international flights

Now, the Platinum Card® from American Express is not your typical credit card. This is a charge card you see, which means there is no pre-set spending limit and all charges you make are due in full every single month. No interest is charged month to month and the way American Express makes money is by charging vendors to accept your card while charging you an annual fee. If you cannot pay your bill in full every month or fear you will charge way too much because you have no spending limit, than this is NOT the card for you. However if you can keep a level head and take advantage of all the travel perks, you won’t find a better card.

An annual fee of $450 is a very big price-tag, especially when it’s just for the privilege to own a credit card. Many other cards on the market today have big bonuses, great rewards programs and no annual fees but for those that like to travel in style and need a card that shows prestige, the only choice today is the Platinum Card® from American Express.

“Disclaimer: This content is not provided or commissioned by American Express. Opinions expressed here are author’s alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.”

Platinum Card from American Express Review is a post from: PT Money: Personal Finance by PT.
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Blue Cash Everyday from American Express Review

Michael — Sun, 01 Jan 2012 01:30:18 +0000

One of the oldest and most respected credit cards every to grace consumers wallets was the Blue Cash from American Express. However, as the times changed, consumers also changed and even though the Blue Cash was a great card, it had too many flaws. For example, cash back could only be obtained once a year in the form of a check and for true savers, this was unacceptable. American Express heard their customers concerns, and recently launched the Blue Cash Everyday℠ from American Express, a card focused on everyday spending.

Instead of increased rewards only after a certain amount is spent each year, the Blue Cash Everyday from American Express offers a tier level of rewards, benefiting those who you the card as much as possible. Current cash back rewards are as follows:

3% cash back on all supermarket purchases
2% cash back on all gasoline and department store purchases
1% cash back on all other purchases

The amount of cash back that can be earned from any of the categories above is unlimited and cash back never expires. With this card, you can redeem your rewards anytime you have at least $25 in rewards, allowing you cash back nearly anytime you want it.

Cardholders of the Blue Cash Everyday℠ from American Express will also receive a 0% intro APR on purchases for 12 months, depending on credit history. Once that rate expires, the standard purchase APR becomes 17.24% – 22.24% variable, and the rate you’ll receive is again dependent on your credit. Only excellent credit will be considered for approval but there are varying degrees of what American Express considers excellent. A couple of quick extra features to mention about the Blue Cash Everyday from American Express are that this card includes no annual fee and if you refer a friend to sign-up, you’ll receive a $25 statement credit.

American Express has done an excellent job in providing an update to a credit card classic, you can even earn a whopping $100 cash back bonus after spending $1,000 in eligible purchases in the first 3 months. If you’re interested in applying for the Blue Cash Everyday℠ from American Express, visit the secure application page using any link contained within this post.

Blue Cash Everyday from American Express Review is a post from: PT Money: Personal Finance by PT.
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Citi Simplicity Card Review

Michael — Wed, 14 Dec 2011 16:15:30 +0000

One of the largest complaints consumers had about credit cards before the economy took a nose dive was hidden fees. It seemed that credit card issuers would not plainly disclose the over-limit, cash advance and late payment fees that made up billions of dollars is lost money for consumers every year. While the Credit Card Act of 2009 made strides towards fee transparency, the problem of credit card fees was not entirely solved. Thankfully however, Citi decided to take action, launching the fee-free credit card called the Citi Simplicity Card.

Sometimes, a name says it all and the Citi Simplicity® Card doesn’t disappoint. For starters, all cardholders will receive a 0% intro APR on both purchases and balance transfers for 18 months. If you do make a balance transfer, there is a fee of 3% (which happens to be the only fee associated with this card). Once the introductory rate expires, the standard purchase APR becomes a very manageable 12.99% – 21.99% variable. Because there are NO fees on cash advances, this is the only card where quick cash can be a good idea.

The Citi Simplicity® Card doesn’t stop there in providing fee free benefits, as cardholders will never be charged a late fee or over-limit fee. This does not mean that cardmembers are allowed to miss payments at will, but Citi will gladly forgive one here or one there. If late payments are habitual, there is a chance a cardholders account will be closed.

A few additional perks to mention regarding the Citi Simplicity Card …

Live customer service representatives 24/7/365. Never again will you call in for help and wait for a human being to pick up on the other end. Once your account number is entered, you’re next in line.
No annual fee

Unfortunately, the Citi Simplicity Card does not carry a rewards program, so for consumers looking to maximize their credit card spending, this is not the card for you. However, for any potential cardholder looking for a card that will cost you next to nothing to own, even if you make a few mistakes, the Citi Simplicity Card is a perfect fit. To fill out an application or find more information online, visit the secure application page for the Citi Simplicity® Card using any link contained within this post.

Citi Simplicity Card Review is a post from: PT Money: Personal Finance by PT.
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United MileagePlus Explorer Card Free Flight Promo

Michael — Tue, 06 Dec 2011 22:45:44 +0000

Earlier this year I wrote about the Continental Airlines OnePass Plus Card and it’s free flight offer. That card is set to expire for all cardholders at the end of the year once Continental has completely merged with United and the end result will have all consumers owning the United MileagePlus Explorer Card. This card is the one that will survive the merger and it’s offer is somewhat identical (if that makes sense) to the Continental Card.

All cardholders of the United MileagePlus® Explorer Card will earn 25,000 bonus miles after making a purchase, with the chance to earn 15,000 additional bonus miles during year one. 5,000 of those miles are obtained after adding an authorized cardholder to the account within 2 months and the other 10,000 is provided every year you spend $25,000. Essentially, this means that 40,000 bonus miles can be obtained during the first year, and 10,000 every year thereafter.

Continental and United frequent fliers will earn 2 miles for every dollar spent on airline tickets when they own the United MileagePlus® Explorer Card and one miles for every dollar spent elsewhere. There is never a limit to the amount of miles that can be earned by a cardholder and miles never expire. While Continental Airlines is still around, miles can be cashed in for free Continental flights but come January 1st, 2012, only United will be left standing.

Added perks are included with the United MileagePlus Explorer Card and include the following:

Free checked bag on all Continental and United flights ($50 round-trip value)
Prioritized boarding so you always have overhead space on flights!
2 annual club passes to relax at the airport in style ($99 value)
Enjoy exclusive access to purchase once-a-lifetime experiences from Inside Access from Chase.

The United MileagePlus Explorer Card includes a variable APR of 14.24% and comes with a $95 annual fee. That fee is waived for the first year, so if you’re into the bonus miles only, you can take this deal and run.

United and Continental will represent an extremely large airline in the very near future and owning this credit card is a great asset to any United frequent flier. There’s enough bonus miles here to redeem at least one free round-trip flight and if you use this card often, many flights can be earned every year. To take advantage of up to 40,000 bonus miles, consider signing up for the United MileagePlus® Explorer Card.

United MileagePlus Explorer Card Free Flight Promo is a post from: PT Money: Personal Finance by PT.
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I Decided to Get a Second Credit Card

Guest — Mon, 05 Dec 2011 16:12:47 +0000

Should you apply for that 2nd credit card?

This post is from Bethy Hardeman, the Social Media Manager at CreditKarma.com.

There are lots of things you might tell yourself to justify applying for a new credit card.

The bad reasons:

I’ve maxed out my other cards.
I really, really want a new laptop.
The salesperson asked me, ‘Do you want to save 20% today by opening a store account?’
I need to go Christmas shopping.

The good reasons:

I’v made all of my payments on time for the past several years.
My credit profile is limited because I only have a few lines of credit.
My current credit card doesn’t provide miles, points or cash back rewards.

I finally decided to bite the bullet and apply for a second credit card. Let’s take a look at how each one of those “good reasons” applied to my situation and helped me make my decision.

I Make All of My Payments On Time

Making payments on time may seem like a no-brainer, but when I first started using my credit card in college, it wasn’t. I wasn’t so concerned with my credit score then. As a result, I didn’t know the consequences of making a late payment on my credit card. When I applied for a store credit card to get the discount, I forgot about the $25 charge. It was the only charge I made. That $25 charge multiplied, and I eventually paid it, along with the accrued interest. So much for getting a discount on a pair of jeans.

The amount that I paid in interest was soon forgotten, but the ding to my credit score stuck around for years. In fact, a 60- 90- or 120-day late payment can stay on your credit report for up to seven years.

Now I have a Visa credit card that I’ve used responsibly for over five years. I had proven to myself and my creditors that I was creditworthy, which means I was ready for a second credit card to build my credit even more.

My Credit Profile is Limited

Someday, I want to buy a house. The two most important factors that come into play when applying for a mortgage are your down payment and your credit score. Having just one credit card is fine for building credit to one day get a mortgage, but it was limiting my credit in two ways:

1. Total number of accounts. Since I don’t have a mortgage, car loan or even student loan, my credit card is the only account building my credit. Opening up a second credit card would help this part of my credit score.

2. Open credit card utilization. On some months, such as when my husband and I purchase plane tickets, I use my credit card more heavily. Since my credit limit on my Visa card is relatively low, I have to be cautious about keeping my utilization rate under 30 percent, especially since it’s a significant part of my credit score. Having a second credit card opens up more available credit, and makes staying under 30 percent utilization much easier.

My Current Credit Card Doesn’t Provide Miles, Points or Cash Back Rewards

Every personal finance blogger who writes about credit cards knows that getting airline miles, rewards points or cash back for your credit purchases is a smart move. I mean, I was even writing about maximizing your cash back on the CreditKarma.com blog. Sadly, I wasn’t practicing what I preached. My one credit card wasn’t giving me anything back for my purchases.

When I finally decided to apply for my second credit card, I knew I had to jump on the rewards credit card bandwagon. After researching and reviewing my Approval Odds for different cash back credit cards, I settled on the Chase Freedom Visa, and you’d better believe I enrolled in this season’s 5% cash back category as soon as my card arrived.

Bottom Line: If your credit card minimalism is holding back your credit score and keeping you from potential rewards, consider applying for a second card. Just make sure you research credit cards and read the fine print before applying.

Image by Images_of_Money

I Decided to Get a Second Credit Card is a post from: PT Money: Personal Finance by PT.
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