Tag: credit card

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Credit Financial

How to Book a Hotel Without a Credit Card

How to Book a Hotel Without a Credit Card

A vital part of any vacation or out-of-town trip is your sleeping arrangements. Hotels, motels, lodges and the like commonly require credit cards in order to book or at check-in. This can prove to be troublesome if you prefer to carry cash or don’t have a credit card.

It’s certainly possible to book a hotel room without a credit card. However, it’ll require a little bit of extra work to get done. In this article, we’ll explain why credit cards are commonplace among lodging facilities. We’ll also give you tips on how to find a cash-friendly hotel and other important tips.

Why Do Many Hotels Require a Credit Card?

Prior to the 1950s, cash was king in just about every establishment. However, credit cards and the idea of personal credit took the market by storm. So, lodging establishments have adopted a card policy ever since.

While this seems like a hassle to a non-card-wielding person, the policies are put in place to protect the establishment and cover any arising fees. Most commonly, the card will be charged a deposit when you check in and if you cause any damage to the property, they have a card on file to charge you with. If the hotel only dealt in cash, this opens them up to potentially having to cover expenses that were the cash-wielding person’s fault.

Finding a Cash-Friendly Hotel

Although most establishments require a credit card, it’s possible some will accept cash too. Many chain hotels will accept cash for payment including Hampton Inn, Quality Inn, Days Inn, and Holiday Inn. This may vary by location though, so it’s important to call ahead and make sure before trekking there.

If you prefer to book online, using a website like booking.com is helpful because you can filter your results to only show places that accept cash. Local establishments that aren’t affiliated with any chain may also be accommodating to cash payers too.

Booking Tips

Once you’ve nailed down where you’d like to stay, there are a few different ways you may choose to book:

  • Book online using your bank debit card: This will ensure you have a room reserved when you get to the hotel. In most cases, you won’t be charged until checkout, so you can always switch payment methods when you get there.
  • Use a travel agency to help you: Travel agencies are equipped to help accommodate all of your needs. If you don’t feel comfortable calling a hotel, a travel agent will go through the entire process for you up until you leave for your trip.
  • Use a prepaid card to book your hotel: if you don’t want your bank account information connected to the hotel in any way, you could purchase a prepaid card at any major grocery store and book using the prepaid/gift card.

Parting Thoughts

Whether you don’t have credit available or you simply just prefer cash, you can absolutely book a hotel room without a card. Booking a hotel without a card requires a few extra steps, but it isn’t impossible.

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Credit Financial

Credit Card Points: Rule of Thumb for Redeeming

Rule of Thumb to Redeem Credit Card Points

Are you unsure of how to redeem credit card points? If yes, let us discuss the rule you probably didn’t know about.

The saying goes that the best way to redeem your credit card reward points is by ensuring you secure as much value as is possible. If we were to give you a comparison, we’d say credit card points are an unofficial and unique form of currency. Hence, the rule of thumb here is to select redemption options equaling at least a cent each.

Often the most confusing aspect here is for people to decide which redemption option is the absolute best and will give the most value. History also proves that comparatively merchandise and gift card options are not the best ways to redeem your points. It would be better to choose cash back or travel options instead, if deriving maximum value is your goal.

If you want to measure your point’s value, you can divide your reward’s dollar value with the number of points you need to get it. Once you have a figure, if you manage to earn more than a cent for each of your point, trust us, you’re on the right track.

However, if you’re earning less than a cent, there is no doubt that you’re making wrong choices and getting bad end out of the deal.

Rule of Thumb

Here are a few tips to help you get the most out of your credit card points:

  1. Your primary aim must be to ensure that your rewards are aligning with your interests. If your goal is to use your income better, you’d be wise to choose a card that has a cash-back option on basics, such as purchasing from your regular stores, topping your fuel/gas etc. if you like traveling, you may want to choose a credit card that offer airline miles beyond your local hub.
  2. The trick is not choosing a rewards program that does not cater to your interests or needs. Be watchful for rewards that are actually a trap in disguise to make you spend more than you can afford, such as a sign-up bonus etc.
  3. Never underestimate the power of cash back rewards. They provide you with the most basic currency there is to spend just as how you desire. You can go back in recent history and check the stats that prove cash back is the favorite credit card reward of consumers.
  4. Do not get a credit card on an impulsive decision. Always take the time and effort to compare an offer with other credit cards. At the same time, you must always remember to check the rewards terms as well of the cards you’re already using.
  5. Do not make the mistake of carrying too many reward cards at a time. You may end up diluting your rewards value because of the way your spending goes haywire with owning several cards at a time.

Conclusion

When redeeming your credit card points, your primary goal must be to select an option that maximizes the value of your rewards, to a cent each or even more but nothing less than that.

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Business Career & Education Credit Financial

What are the Best Cards for Small Businesses

What Are The Best Cards For Small Businesses

Starting a small business is exciting, fun, and nerve-wracking. It can also be truly terrifying if you are not sure where you are getting your funds from. Some business owners find their financing through a bank, others from loans by brokers or family and friends. Then others get their companies up and running by using one of the many business credit cards on the market.

If you are looking to fire up your own small business and want to rely on a credit card to get things moving, you have a lot of choices to pick from. Which one is right for you? Which card has the best features, the best rates and the greatest rewards? Be sure that you make the right choice because, frankly, the future of your business depends on it.

American Express Blue Business Cash Card

A 0% annual fee? 2% cash back on all purchases up to $50,000? 0.0% intro APR purchases for the first 12 months? The American Express Card is a great way to finance your new business. It is a wonderful way to buy furniture, make down payments or secure rent. The 2% cash back is a great feature and it lasts for an entire year. After that, it will drop down to 1% which is still quite nice. It is made for people with really good credit, so you need to keep that in mind when applying. But it is a powerful, handy and reliable card from one of the biggest card companies in the world.

Capital One Spark Cash for Business

The Capital One Spark Cash for Business card is a great tool to create and sustain your business in its opening year. People know that the first few years of a company are the most challenging time for it, and the Spark Cash for Business card helps out tremendously. How? By providing $0 annual fee for the first year and an unlimited 2% cash back on every single purchase you make. Plus, the card gives a one-time $500 cash bonus once you spend $4,500 within 3 months of opening your account. If you need to make a foreign purchase, this card is also great for you because it has absolutely no foreign transaction fees. For all these reasons and more, you can’t go wrong with the Spark Cash for Business card.

The Blue Business Plus Credit Card from American Express

Everyone is wild about reward points with their credit cards. They are all the rage. The Blue Business Plus Credit Card from American Express is full of rewards. In fact, you earn 2X Membership Rewards points on business purchases for the first $50,000 purchases per year and then 1 point per dollar spent after that. That alone is enough to sell many business owners and have them sign up for the card. But the 0% intro APR on purchases for 12 months is another great reason to take a look at this card when you are getting your new business up and running.

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Credit Financial

How to Get Credit Card Approved

How to Get Approved for a Credit Card

You’ve probably heard your friends and family talk about the benefits of having a credit card. There are definitely perks to having a credit card, but how do you get approved for one? If you have no credit or poor credit, it may seem like it would be impossible to be approved for a line of credit.

There is no way to guarantee you’ll be eligible to get a credit card but there are some ways that may improve your chances of approval.

Get Started on the Right Foot

Building good credit can be done if you stay on top of your bills from the beginning. Credit card companies look at your payment history as well as the following:

  • Only apply for what you need. You can always apply for an additional card or two down the line if you decide they’re needed, but acquiring multiple loans and credit cards in a short time frame makes lenders think your finances have taken a turn for the worse.
  • Stay below your credit limit. In fact, you should aim to keep your overall credit utilization ratio under 30% for each of your lines of credit.
  • Always check your statements to ensure they are accurate. You want to do this so that your score isn’t negatively affected by incorrect information. This is also helpful to keep an eye out for suspicious activities and potential security risks.
  • Pay more than the minimum if you can. If you can only afford to pay more than the minimum once in a while, that’s fine. Any higher payments will look good for you.
  • Know your credit score and make sure to check your credit report. Credit reports are usually accurate, but errors do happen. You can get one free copy of your credit report per year through the 3 major credit reporting companies.

Monitor Your Credit

Before you get a credit card, you should get a copy of your credit report so you can see your score and the information that is impacting it. You’ll be able to access information like your payment history, previous credit checks, and recently acquired accounts. When you apply for a credit card, the bank will check your credit score to see how likely you are to make your payments on time.

Don’t Use too Much Credit

In order to ensure you don’t end up with a credit card you can’t afford, it’s important to understand your debt to income ratio. This comparison of your income versus what you owe will help you figure out what kind of monthly payments you can afford.

Be Patient

If your credit isn’t at a point where you are able to get a credit card, it is not the end of the line. Fixing credit and establishing credit from zero takes time. If you need to increase your approval chances quickly, consider becoming an authorized user on a friend or relative’s account, get a secured card, or getting a loan with a co-signer.

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Credit Financial

Here Are The Best Credit Cards of 2021

best credit cards of 2021

There is a literal sea of credit cards out there, with hundreds of different features, rates, cashback perks, and discount programs spread across the entire spectrum of credit providers. There are cards to fit just about any type of lifestyle from active to digital to anything in between. But sometimes the research needed to come up with the best cards can be difficult.

While there are cards for any and every niche you can think of, we’re going to stick to some of the best cards. Most people can get some use out of the ones we have listed. There are going to be some similarities and some differences, but there should be something useful to almost everyone.

Chase Freedom Unlimited Card

The Chase Freedom card is one of the best cashback cards out there for this year. Customers can earn 5% back on all travel purchases through Chase Ultimate Rewards. As well as, 3% back at drugstores and restaurants including takeout. They can even earn 1.5% on all other purchases. They even offer a $200 cashback reward if you join and spend $500 in the first 3 months.

American Express Gold Card

Not only is the American Express Gold one of the best travel cards out there, but it is also one of the leading rewards cards as well. It earns 4x points per dollar at all restaurants worldwide, as well as US supermarkets and grocery stores. Travelers also earn 3x points from flights booked through the AmEx Travel portal, or directly with the airlines. The downside to this card is the $250 annual fee.

Discover it Secured Credit Card

Too often when looking at the best credit cards available, the consumers needing some credit help are left out. Well, we see you, and if you are in the market to start rebuilding your credit this year, the Discover it Secured credit card is an ideal way to do that. Like most other secured cards, there is the minimum requirement of a $200 deposit. However, after 8 months there is the chance to move to an unsecured card and have the deposit returned.

Consumers can earn 2% cashback at all gas stations and restaurants up to $1,000 per quarter, reduced to 1% after that. Additionally, you earn 1% back on all purchases no matter what. Discover also provides a “welcome bonus” of a dollar-for-dollar matching of your cashback for the entire first year of new cardmembers. Another downside is the relatively low limit compared to other cards.

Titanium Rewards Visa Signature Card from Andrews Federal Credit Union

The Titanium Rewards Visa® Signature Card from Andrews Federal Credit Union offers a variable rate as low as 8.49% and up to 15.49%, which is a pretty amazing spread compared to some other similar cards. They also offer a balance transfer, but they cost a 1.5% fee per transfer. While you are required to join the credit union in order to qualify for this card, the membership is free.

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Career & Education Credit Education Financial Loans

Can You Pay Off Student Loans with a Credit Card?

paying off student loans with a credit card

Introduction

Though it may sound tempting, as the average person with student loan debt has about $30,000 of it, paying with a credit card is a bad idea long-term. It is technically possible to do this, but it comes highly unrecommended by any financial professional.

What Happens When You Try to Pay Loans with a Credit Card?

First off, federal student loan services don’t let you pay directly with a credit card; you must use an intermediary, which is essentially a middle man for lenders and buyers. The private loan services let you pay directly, but there is often a sizeable fee for doing so.

When you pay student loans with a credit card:

  • You give up student loan protections
    • Includes consolidation, deferment, forbearance, or loan forgiveness
  • Potentially move your debt to a credit product with an even higher interest rate than your student loans
    • Credit card rates sun substantially higher than student loan insurance rates—sometimes by 20% or more
  • You will likely be charged a fee (with interest)

Credit card companies do not design plans that let you pay off debt quickly because it is not lucrative. If you make a student loan payment and don’t pay it off by the time your credit card bill comes, you’ll be charged for interest both through the card and the student loan service.

What are the Best Ways to Use a Credit Card to Pay off Student Loans?

Some cards offer cash back rewards points that you can then use towards your student loans:

  • Look for cards with long-term cash back benefits (these are best for people with excellent credit)
  • If you are paying through an intermediary, make sure your credit card’s rewards program exceeds the intermediary’s fee
    • For example, Plastiq has a 2.85% fee for every transaction, so your card’s rewards program would need to be greater than 2.85% of your total payments
    • As most cards only give 1% to 2% on your purchases, this is fiscally unwise

You also have the option of making a balance transfer, which moves your payment over from the student loan lender and the credit card company.However, you do not often earn rewards with balance transfers.

  • Though you could get a temporary 0% interest rate, it often just buys time until you would have to pay even higher interest
  • Another downside to doing a balance transfer is that there is, of course, a fee—usually near 5%!

If a balance transfer isn’t an option, another is to use a convenience check:

  • These are drawn against your credit limit instead of your bank account
  • The student loan service processes this similarly to any other payment
  • But, you’ll still have to repay the money, and fees start at 3% to 4%

Conclusion

The only time it makes logical sense to pay your loans with a credit card is if you are, beyond a shadow of a doubt, able to pay off your balance in full every month. Or, if you find a card with a no-fee balance transfer that starts off with a 0% APR (annual percentage rate; the amount you pay each year to borrow money) financing, you may also benefit from this practice.But again, this must be paid off immediately lest the costs outweigh the benefits—make sure to stay on top of your loans and credit to avoid paying even more in the long run!

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Credit Financial

8 Tips to Make Credit Cards Work for You

credit cards work for you not against you

Your credit cards can be some of the most powerful tools in your financial tool belt. But if you don’t use those cards carefully, they can do a lot of damage. Knowing how to use those tools properly can be a great way to prevent damage that can take years to undo. Following these eight tips can give you an excellent foundation for using your credit responsibly.

How to Take Full Advantage of Your Credit Cards

1.     Pay the Bill in Full

Don’t be tempted to skimp on the payment no matter how appealing the minimum payment looks. Using too much of your available credit can quickly lower your credit score. 

2.     Use it With a Budget

Now that you are paying your bill in full each month, it’s time to keep your spending within a manageable budget. Small totals can add up quickly and even make it difficult to pay the total bill. However, if used properly, they are a great way to track and control your spending in specific areas.

3.     Check Your Accounts

Seeing how much you are spending and where you are spending it will make it much easier to stick to that planned budget.  Use online tools to check your credit card’s accounts weekly.

4.     Take Advantage of “Perks”

Most credit cards these days have some extra protection built into them. While all cards should be protecting you against fraudulent charges, others will offer you bonuses such as extended warranties on certain items. Knowing what those perks are is a big help when deciding which card to use and when to use it.

5.     Use Your Rewards

Do any of your credit cards offer cashback rewards? Be sure you are taking full advantage of those. Like other perks, these can vary a lot from company to company or card to card. One card might give you 3% back at restaurants, while a different one gives you 2% back with hotel stays.

6.     Save Them for Big Purchases

Saving your credit for big purchases can be a huge help when an emergency happens. Everyone is eventually going to face an unexpected problem sooner or later. This advice isn’t just for emergencies, however. Rather than paying cash, use a credit card with a great cashback rate. The reward can shave some of the cost off the purchase.

7.     Stay Under Your Limit

Not only should you take extra care to stay well below your credit limit, but you should also be aware of what all of those limits are. If you’re not sure you can handle the temptation that can come with a high credit limit, you can always ask for a lower limit.

8.     Don’t Pay the Bill Late

Late payments are another item that can potentially wreck your credit score. They can also cost you a lot. Many cards charge steep fees anytime your payment is late.

Overlooking something that affects your credit score can have lasting consequences that can make your financial life far harder than it needs to be. It’s never too late to develop better habits with all of your accounts.

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Credit Financial

How Do You Calculate Credit Card Interest?

credit card interest

It can be quite shocking to suddenly realize how much you are being charged in interest suddenly. It can be even more surprising if you look at it over 12 months. With the average American household paying over $1,000/year in interest alone, it is vitally important that every credit card consumer knows precisely how much they are paying in interest.

What Is Interest?

Credit card interest is simply the amount of money a bank charges for access to a credit line. It is calculated differently for different items. Rates can vary considerably depending on what kind of credit you are using.

Out of all of the different credit types used in the economy, credit cards typically require you to pay the highest amount of interest. They are also usually offered at a variable rate (APR), which means they fluctuate over time with the markets. Rates can be wildly different from person to person. The interest rate you pay is typically based on your creditworthiness. So the higher your credit score is, the lower your APR.

How Do I Find Out How Much I’m Paying

Many consumers only pay attention to the APR on their accounts when they sign up for a new one.  Then they get a sticker shock months or years later. Your credit card statement clearly shows how much you are charged month to month but rarely gives you any indication of how that figure is calculated.

Thankfully the process to calculate your credit card interest is very straightforward. All you need is your statement and a calculator.

How to Calculate Your Credit Card Interest.

1.     Figure out what your APR means to you daily.

This is called the Daily Rate. Interest is compounded daily rather than based on your balance at the end of the month. No, your credit card company isn’t adding charges to your account every single day. Interest is still added in one lump sum at the end of the month but its compounded interest.

2.     Find your average daily balance

Make a note of each day of your billing cycle and the balance on that day. Remember, you pay the same compounded interest on the old balance as you do on any new charges. Then add the balances from each daily total, subtract any payments made, and then divide by the total number of days in your cycle

For example, if your cycle has 22 days: day1+day2+day3+…divided by 22days= average daily balance. Be sure to include the amount carried over from your prior billing cycle.

3.     Calculate your Interest

Calculate your interest by multiplying the average daily balance by the daily rate. Then you multiply by the number of days in your billing cycle. That final total is your average amount of interest.

Learning how to calculate the interest on your accounts can help you catch potential mistakes. It can also make you aware of exactly how much your credit accounts are costing you. Staying aware of all of your accounts is a vital part of managing your money effectively.

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Credit Financial

Credit Card Fraud And How To Protect Yourself

credit card fraud

Credit card fraud is becoming so incredibly prevalent these days. It can seem overwhelming trying to prevent it with all the different ways it can happen. While you can’t prevent every case, you can certainly be prepared and vigilant against abuses, and put some challenges in the way for potential criminals to profit from your private information.

All it takes is a few minor practices and safeguards incorporated into your daily life can go a long way toward keeping your financial information safe from fraudsters. Here is a list of things you can do to help protect against credit card fraud:

1.   Do Not Give Out Your Information

This one might seem obvious, but many people will still lose their privacy by simply giving out their credit card details to people who sound convincing on the phone. Social engineering is as old as fraud itself, so do not give out your details to anyone unless you called them specifically to make a purchase.

2.   Don’t Keep All Your Eggs In One Basket

Do not keep every credit card you own in the same purse or wallet. Make sure you have one or two that you carry with you, and one or two that you leave at home or otherwise carry separately. This can reduce losses in the event of a theft of the wallet or purse. If you will only need one card, bring only that one with you.

3.   Keep Your Cards In Your Sight

When you hand your card to a retail or dining establishment associate, you are trusting them to handle your card properly. Nevertheless, make sure you keep your eye on the card the entire time it is out of your possession. Criminals can swipe and scan a card in a fraction of a second.

4.   Only Sign Your Cards’ Accurate Receipts

Make sure your total is correct and shown on the receipt. It may sound silly, but don’t sign a blank receipt, and make sure that any unused blank lines above the grand total are crossed out or otherwise made unusable by anyone who may get possession of it.

5.   Monitor Your Accounts For Changes In Behavior

Be sure to keep an eye on your account balances, bills, and statements. Even small changes can signal that your card is compromised. Many times a criminal will try to charge only a dollar to a stolen card to see if it is noticed, and if it goes unnoticed they will then begin making larger and more numerous charges until the account is empty.

6.   If You See Something Say Something

Time is of the essence once you find out you have been the victim of credit card fraud. You will need to advise the card issuer as soon as possible, many of them have a 24/7 stolen card hotline that will let you report your card as compromised, anytime anywhere. When you report fraudulent charges, the law absolves you of any further liability for subsequent unauthorized credit charges.

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Credit Debt Financial

6 Tactics for Handling Piles of Credit Card Debt

credit card debt

If you have a significant amount of credit card debt, you are not alone. You want to figure out how to improve your situation, or you wouldn’t be here. That is the best first step to climbing out of a deep hole of credit card debt, you have to want it.

Once you want it, and you are ready to work for it and fight for it, then you need a strategy. We’ve pulled together a robust list of the 6 most effective things you can do to put a dent in your credit card debt.

1.   Buddy Up

This is something that most people do not think about. They underestimate the power of having someone for support while facing their debt problem. This can be anyone from a variety of roles in your life. Some people prefer a financial advisor, while other people are more trusting with a friend or family member. Another benefit to not going solo is it helps boost your accountability as well as your chances of reaching each goal you set.

2.   Hide The Credit Card

Stop using your credit card or cards for financial emergencies, that is likely a contributing factor to how you got into debt. Instead, build a savings reserve that you would use for emergency dental or vehicle work. This way you can catch up on your debt, and lower your credit utilization as well, which makes your credit score look better. For an emergency fund, make an initial goal of one month worth of expenses, and work your way up to a 6-month cushion.

3.   Pay High-Interest Debts First

This is another one that people overlook. After you get smaller debts out of the way, focus on your highest interest rate, and pay that down as fast as possible. Pay a much over the minimum as you can, while still staying current on your other obligations. This can save you thousands in interest alone on higher limit accounts and will reduce the time it takes you to pay it off.

4.   Ask Your Lender For A Lower APR

This is another tactic that few people think to utilize, or realize is even possible. Simply call your lenders and ask them if they can reduce your APR. Not only will this save you money every month, but it will allow you to pay debts down quicker since you won’t need to make nearly as many payments over the life of the debt.

5.   Budget Firmly

This is always one of the obvious ones, so we put it at the end, but it’s still so important that we couldn’t omit it. Budget and stick to it as much as you can. This goes for not only your spending but your debt repayment. Once you know your current bills are accounted for, figure out how much you can then use to pay off credit card debt. Your budget will be another tool of accountability, only you answer to yourself.