I hope your spending isn’t putting you into debt you can’t pay off, but that’s an article for another day.

While you don’t want to overspend this year, you do want to take advantage of the opportunities your rewards credit card might offer you this holiday season.

After all, if you’re going to spend the money you should get as much back for it as you can!

Here are some tips for maximizing your credit card rewards while you work on your holiday shopping:

Look for Special Promotions

Many credit card issuers offer special promotions during the holiday season.

This might be extra cash back, or special discounts with partners.  In some cases, it might mean an extra perk on a specific day of the week.  Check with your cardholder to find out what perks they offer during the holiday season.  If your card offers airline mile bonuses then this could be a great opportunity to get closer to a free flight.

I’ve already taken advantage of a few offers through American Express which have given me statement credits.  In the case of Amex, make sure you sign up for the offer.  You can find these on your Account page.  Just scroll down and you should see a tab next to Latest Transactions that says Offers for you.  These offers are free to sign up for and require no money up front.  Just grab the offer, use your card, fulfill the terms and you’re set (some offers require you to spend a certain amount).

There’s also an American Express deal for ShopRunner with a complimentary membership.  This gets you 2-day shipping at a number of retailers.  (I actually had to pause writing here so I could sign up.)

If you shop through Chase’s Ultimate Rewards portal you can find a number of deals that give you juicy cashback deals.

Check Rotating Categories

Double check your rotating categories to see where you are going to get the full cash back this quarter on your purchases.  Use cards that allow you to earn the maximum while you buy items on your holiday shopping list.  Work your card right and you can get better than 5% cash back.

And don’t forget about the gas you buy as you shuttle from place to place.

For items that aren’t in any of your rotating categories, pull out the card with the highest amount of regular cash back, or that offers a tiered program you can rely on.  Looking through your credit cards and seeing which will give you the highest return for your purchase is a good plan.

Pair with Online Savings Sites

Don’t forget about online savings sites and programs.

You can earn extra cash for your child’s education if you have joined Upromise (take a look at the Upromise World Mastercard® to get even more back.).  If you sign up for ebates, you can get cash back for shopping through that program, and if you pay with a credit card, you can cash back in that way, too.  FatWallet is another site to take a look at.

Stack your savings with credit cards and other programs so that you can get the most out of your purchases.

You can also check for promo codes that can save you extra money, as well as pay attention to free shipping promotions like Free Shipping Day.

Do what you can to combine your shopping efforts with your credit card use.

Don’t Ruin it by Overspending

As always, it’s important not to overspend.  Let me re-phrase it — Don’t Overspend!!

It’s tempting to use your rewards points as a justification for spending extra money during the holidays.

However, you shouldn’t let yourself fall into that trap.

Instead, you need to make sure you adhere to your shopping list. Create your holiday shopping list, along with a budget of what you’ll spend per gift, and then stick to it. Make sure you have the money to pay for your purchases already in your checking account so that you can pay off the total immediately.

Think about it, what’s the point of any extra you get if you have to pay interest on your spending?  There is no point then.

I like to look at the bonuses as icing on the cake. I try not to go out of my way to spend any extra but I’m happy to use my card in specific situations if I was going to spend anyway to get extra discounts and bonuses.

Finally

You can use your credit card rewards programs and other promotions to reduce the total cost of your holiday shopping, offsetting some of the budget-breaking expenses.  But it doesn’t work if you end up spending a fortune in interest fees.

Do yourself a favor and plan ahead, and you’ll be able to reap the benefits of credit card rewards this holiday season.

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Rock Your Credit Card Rewards While Doing Your Holiday Shopping

The Webster Bank Visa Signature© Credit Card – What It Offers

Rewards

The Webster Bank Visa Signature Credit Card offers up 1 point for every $1 you spend.  These rewards can be used on Travel, Cash Back, Gift Cards, or Merchandise.

You redeem the rewards in the form of cash back or as a statement credit.  This can be useful since as you tend to get more choices with statement credit redemption.  For example you can choose from over 150 airlines to redeem with.  Compare this with a card that’s branded to one specific carrier.

On top of that you will earn a 25% point bonus on all points for every month, automatically.  There’s also no limit on the points you can earn.  You have five years to use your points.  The rewards program is administered by Elan Financial Services.

0% Intro APR

The Webster Bank Visa Signature Credit Card gives you 0% introductory APR on balances transfers and purchases for the first six billing cycles when you open your card.  When the intro. period expires you’ll have a variable APR between 9.99% and 20.99% based on your creditworthiness.  So make sure you keep your credit in good shape after you get your card!

Cash Back Bonus

The Webster Bank Visa Signature Credit Card is offering a $25 can back bonus after you make your first purchase.

Finally

The Webster Bank Visa Signature Credit Card looks to be a card where you can rack up rewards quickly and easily.  You also get plenty of options to redeem your rewards as well.

Get Your Webster Bank Visa Signature© Credit Card

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Review: Webster Bank Visa Signature Credit Card

Their boldness paid off with a card that carried less fees than most and was also more forgiving to consumers.  All with a cash back thrown in.

Well Discover is at it again.  They have introduced the Discover it Chrome.

What is Chrome? Follow along in our Discover it Chrome review…

How is the Discover it Chrome Different From the Original ‘it’?

Good question.

The Chrome series of cards is geared for people who travel on the road.  You get a card that’s more focused in its cash back rewards.  Now you get 2% cashback on up to $1,000 in combined purchases at restaurants and gas stations every quarter.

See that?  Your bonus is now concentrated with restaurants and gas stations.  This is awesome if you drive a lot and love going on road trips.

The original ‘it’ cards gave you a higher cashback bonus, 5%, but they were on rotating categories that changed every quarter.  It’s a nice cashback bonus but you really only maximize the bonus if you purchase whatever is in the rotating category.  With the Discover it Chrome you get a smaller cashback, 2%, but you always know what it is going to be in.  That’s your trade-off.

The Chrome still offers up 1% cashback in all other categories.

Chrome Still Has Many of the Great Features That Made ‘it’ Popular

As I mentioned in the beginning, the ‘it’ cards did a nice job in creating a consumer-friendly card.

You get no annual fee, no overlimit fee, no foreign transaction fee (which averages about 3% in many other cards), and no late fee on your first late payment.  Your purchases will also be monitored for fraud and you won’t be responsible for any fraud purchases.  And if they see a purchase that looks fishy to them they’ll shoot you an email/text/call to alert you.

You also get access to a free FICO® score online and on your monthly statement.  This is a nice perk to help you track your score, a very valuable number in your finances.

Their customer service is 100% based in the U.S. and you’ll get a human being 24/7.

The Three Options for the Discover it Chrome

Discover it Chrome comes in three flavors…

Discover it® Chrome

Here you are getting all of the great options I’ve talked about above as well as a 0% intro APR for purchases and balance transfers for 14 months.  After that you have a variable APR that will currently fall between 10.99%-22.99%.  There’s a 3% fee on balance transfers.

Discover it® Chrome

This version differs in the 0% intro APR.  Now you’re getting 18 months of 0% intro APR on balance transfers.  This is nice of you’re carrying a credit balance on another card and you’d like to knock it out faster.  With 0% APR your payments go to the principle rather than interest.

You also get 0% intro APR in purchases.  After the intro rates you have the same variable APR as the card above.

Discover it® Chrome for Students

This version of the card is for…wait for it…students!  Here you get a 0% intro APR for 6 months on purchases.  After the intro period ends you have a variable APR that’s currently between 12.99%-21.99%.

Apply now for Discover it® Chrome for Students

Finally

As I said earlier, if you travel by car often or just eat out a lot (or get lots of gas) then the Discover it Chrome has a nice bonus of 2% cashback that you know will always be there.  Of course this doesn’t apply to everyone so make sure this is a bonus structure that you can maximize.

You also get all the great consumer-friendly features, such as their no fees and free FICO score, that makes the ‘it’ card so nice.

If you’re interested in the original Discover it Card tae a look at our review.

*I know you’re smart but I’ll tell you this anyway — make sure you read through the card details to make sure this card fits your needs and you understand the terms and conditions. Be aware that the terms may change after this article’s publication.

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Review: Discover it Chrome – It’s ‘it’ for Traveling On the Road

But does it really mean when you receive a “pre-approved” credit offer?  Are you really guaranteed a credit card?

How Did You Get Pre-Approved for a Credit Card, Anyway?

The first question that many consumers ask is this: How did I get pre-approved, anyway?

Basically, the credit card issuer buys a list from a credit bureau.  Credit reporting agencies collect information on your credit habits.  Not only do they compile credit histories that can be checked when you apply for credit, but they also sell lists of consumers to interested parties. (Kinda creepy, isn’t it?)

Some of the lists group consumers according to a rough estimate of the credit score range they are likely to fall into.

A credit issuer knows that you (like thousands of others on the list) are likely to qualify for a certain credit card offer.  You are sent the “pre-approved” letter, but in reality, you haven’t been pre-approved for anything.  You’ve just been pre-screened to receive the offer.

The good news is that the credit card issuer hasn’t actually pulled your credit history.  There isn’t a hard inquiry on your report, so it won’t affect your credit score.  You won’t actually be subject to a hard credit pull unless you actually decide to apply for the credit card.

“Pre-Approval” isn’t a Guarantee of Acceptance

Just because you’ve been “pre-approved” doesn’t mean that you are going to qualify for the credit card.

Once the specifics of your credit situation are known to the credit card issuer, you might actually be rejected.  In some cases, you might not qualify for the advertised terms, but you might qualify for lesser terms.  That could mean you get a similar version of the card with downgraded benefits, higher rates, or lower credit limits.

For example, you might receive “pre-approval” for a card with a $3,000 limit and 0% APR on balance transfers for 15 months.

However, after you apply for the card, and your credit is more thoroughly checked, the issuer might decide to issue you a card with a $2,000 limit and an intro APR on balance transfers that lasts only nine months.  And if your credit isn’t at all what was thought originally, your application might be rejected, and you might not get the card at all.

There is no guaranteeing that you will be accepted, just because a credit card company claims that you are in its target demographic.

What Can You Do If You Don’t Want These Offers?

Perhaps you don’t want these offers?  If you don’t like them, it makes sense to shred them, so that you can protect your personal information as much as possible.  I’m a bit paranoid so I always make sure to destroy the application (I don’t want someone opening up credit in my name).

Even better, though, is to avoid having them sent to you in the first place.  You can go to  OptOutPrescreen.com and let the credit bureaus know that you don’t want to have your information sold to credit card issuers.  This can be an elegant solution to the problem.

Pre-Approved Offers can Work Out Great For You

On the other hand, if you are in a good financial and credit situation, you might want to receive these offers.

If you are looking to get a good deal, or a cash bonus, comparing offers can be a way to get the best credit card possible.

You can even use an offer you receive in the mail as leverage with a card you already have.  If your offer has some aspect you want then call up your current card issuer and let them know you’re considering switching to the new card.  If they value you and you’ve been a good customer they should try to work with you to keep you.

Back when I was getting myself out of credit card debt I started to get pre-approved offers as my credit score started going up.

I was making sure I paid my bills on time and I was paying more than the minimums to finally knock down my debt.  So as my score was going up I got more offers in the mail.  This could have been a slippery slope if I didn’t practice discipline but I was determined to get out of credit card debt.  I was able to pick one of the great offers that had a 0% balance transfer and move my credit card balance to the new card.  This allowed me a period where I wasn’t getting charged interest in my balance which made my monthly payments that much more effective (my payments were going totally to the principle rather than to interest).  The pre-approved offer helped my payoff my credit card debt faster.

Bottom Line On Pre-Approved Credit Card Offers

Pre-approved credit card offers can be a great way to find out about new cards and the benefits they have, especially if you’re in the market to open up a new one.  But don’t let the ‘pre-approved’ stamp fool you into thinking you’re a sure-in for getting the card. There’s a chance you don’t get approved.  And if you don’t really need a new card then it’s a waste of paper.

Have you ever opened up a new credit card based on a pre-approved offer?

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What is a “Pre-Approved” Credit Card Offer?

They took a card that was already a favorite among travelers, added more to it, and created the Barclaycard Arrival PlusTM World Elite MasterCard®.

The old Barclaycard Arrival World Mastercard got a facelift and was re-branded as the new Barclaycard Arrival PlusTM World Elite MasterCard®.  Barcalycard has created a card that offers up a nice bonus with easy-to-use points with plenty of other perks as well.

Let’s take a look at why this card might be your new travel buddy.

A Travel Rewards Card With Great Options

First and foremost the Barclaycard Arrival Plus World Elite MasterCard is a travel rewards card.

What does that mean?  If you don’t travel often then this card isn’t best for you.  Bear in mind that Barclaycard has done a great job in including a LOT of different forms of travel in their card so make sure you read on to see the different travel categories that are covered.

Foreign Transaction Fees

There are no foreign transaction fees with this card.  That means when you travel overseas you won’t get any extra fess added on when you use your card.  Other cards may tack on an average of 3% of your total purchases.  Ouch.

Security Chip and PIN Technology

The Barclaycard Arrival Plus World Elite Mastercard has a security chip embedded in the card.  This is technology that is widely used in Europe as a security measure.  On top of that, Chip cards are more widely accepted in Europe.  This may not be important to you if you only stay in the United States but it is a nice feature that many other travel cards don’t have yet.

Travel Has a Broad Definition With This Card

Barclaycard is covering a lot of bases here.  They view travel as any of: “airlines, hotels, motels, timeshares, campgrounds, car rental agencies, cruise lines, travel agencies, tourist attractions, discount travel sites, trains, buses, taxis, limousines, and ferries.”  

Many other travel cards have much narrower definitions of travel.  With the Barclaycard Arrival Plus World Elite Mastercard you have a lot of opportunities to use your points for travel, wouldn’t you say?

Easy Rewards

How the Points Work

Here’s how the miles/points/rewards (you pick your favorite term) work – when you make a qualified travel purchase with your card you can choose to get a statement credit for the travel (provided you have enough points, of course).  You have 120 days, up from 90 on the old card, to tell Barclaycard you want to use your points for your travel purchase.

This means you buy whatever travel you plan on taking (remember you have a LOT of options here) with your card.  Then when you see the purchase on your next statement you contact Barclaycard and ask for a statement credit.  Easy.  You don’t have to worry about turning in miles for a particular airline or hotel.  You also don’t have to be concerned about certain dates being blacked out.  Some people might prefer using points to pay for travel up front.  I get that.  But that also means you tend to have less options to use the points.  Getting a statement credit is a nice way to open up more options if you aren’t loyal to one particular carrier.

Earning Points

You get 40,000 bonus points when you make $3,000 in purchases on your card in the first 90 days.  That many points will already earn you a $400 statement credit.  That’s a great start.

For every dollar you spend you get 2x points.  On everything.  You don’t have to think about rotating categories, or really any categories at all.  Just use your card like you would any other and you get 2X points.  Easy.

And get this, you earn points when you redeem your points.  You read that right.  You’ll get 10% back to use toward your next statement credit when you redeem your points.

There’s also no limit to the points you can earn and your points won’t expire (so long as your account is in good standing).

0% Into APR On Balance Transfers

As if this card wasn’t giving value already, if you have a balance on another card (or cards) you can get 0% intro APR on your balance transfer for 12 months for balances you transfer within the first 45 days you opened your card.  After your into period ends you’ll have a variable APR between 14.99% and 18.99% depending on your credit worthiness.

Don’t Forget the FICO

On top of all the travel reward goodness you get you’ll also get access to a free complimentary FICO score.  That’s a sweet perk to help track where your credit score is going.

Is the Barclaycard Arrival Plus World Elite Mastercard the Right Card for Me?

Do you travel often?  Do you put a lot of purchases on a credit card and pay it off in full every month?  If so you should consider the Barclaycard Arrival Plus World Elite Mastercard.  Be advised that the card has an annual fee of $89 that is waived the first year.  The annual fee shouldn’t scare you if you are earning enough points yearly to at least match the fee.

Get your Barclaycard Arrival PlusTM World Elite MasterCard® now.

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Review: Barclaycard Arrival Plus World Elite Mastercard – 40K Bonus Miles and Easy to Redeem Points

Since the recession, many consumers are reducing their reliance on credit when it comes to making purchases.  However, the result hasn’t been what many expected.

Canceling accounts and swearing off credit can impact a credit score, sending it lower.  Not a good thing.

If you don’t plan to borrow money, it may not seem like such a big deal.  However, even if you don’t borrow, your credit report and your credit score might impact your financial situation.

Some insurers use your credit score as a factor when setting your premiums.  Landlords might check your credit when determining how much to charge you for a security deposit.  Cell phone and Internet service providers often run credit checks before setting you up.  Even a potential employer might ask for permission to view your credit report.

Many consumers who feel as though they are more responsible than ever are discovering that the credit scoring industry is just interested in encouraging, well, behaviors that involve credit.

But consumers feel that if a credit report and score are going to be measures of overall financial responsibility, non-credit payment items should be added to the list.

One of the items of interest right now has to do with adding utility payments into the equation.

Should Your Utility Payment History Be Part of Your Credit Report?

Why Add Utility Payments to Credit Histories?

Right now, your utility payment history can impact your credit score.

However, it only happens if you miss enough payments that your utility company sends your account to collections (this is true of any bill that would be sent to collections).  Consumers that make regular, on-time payments to their utility providers month after month don’t see any benefit.  They are showing that they are reliable and make payments on time, but that isn’t reflected in a credit score because it isn’t a loan (or a delinquent account).

The thinking is that if there are non-credit reasons to check your score, such as for insurance or Internet, there should be non-credit payment histories on your report.  If your history of on-time utility payments can shed light on the fact that you’re responsible and deserve a lower car insurance premium, adding the information to your credit report and including it in the credit scoring algorithm makes sense.

Could Utility Payments Be Added?

The House and the Senate both have versions of bills that would amend the Fair Credit Reporting Act to allow for utility payments.  The bills are slightly different (with the Senate version more comprehensive than the House version), and both are in committee.

Of course, the reality is that many bills never become law.  In fact, the site Govtrack.us gives the Senate of the bill only a 1 percent chance of being enacted and the House version a 7 percent chance.  That’s not a big chance for a bill that could help change the way utilities are reported, and that could help many middle class Americans maintain good credit histories, even if they don’t want to borrow money.

In a similar category is the idea of reported rent payments.

Experian already allows for the report of rent payments on its credit reports.  However, in practical terms, the fact that you pay your rent on time still isn’t going to make a big difference to your credit score, since it’s little more than an informational thing at this point.

Could Utilities Reporting Hurt Your Credit Score?

The flip side to adding utilities to a credit report is the fact that there is a good chance that your score could suffer.

If you don’t make your utility payments on time, there is the possibility that your score could be impacted more immediately.  As it is right now, it takes months for utility payments to impact your credit rating.  This is because the utility company doesn’t report to the credit bureaus in a direct manner.  After taking months to try and get you to pay, the account is turned over to collections.  Then it takes a little time for the collections account to appear on your report.

Adding utilities reporting to credit reports would speed up the process.  If utilities payments were reported with the same frequency as credit card payments, the situation would be quite different indeed.  A single missed payment could be reported quickly — and drag your score down just as quickly.

Utilities reporting benefits those who already make their payments on time.  It would only make things worse for those who struggle already.

I know it’s not ideal but there are plenty of people out there stuck in a cycle of living paycheck-to-paycheck who sometimes rob Peter to pay Paul, so to speak.  In other words, since the impact of not paying one utility bill may not be that harsh (you rarely have a utility cut off for one missed bill and we discussed how it won’t affect your credit report yet), a person might skip a payment to make sure they can cover a bill that has a bigger impact if they miss it, like rent or a credit card.  Again, I’m not saying this is ideal.  I’m saying that adding utilities to credit reporting may have a negative impact for some people.

Alternative Credit Reporting

There are options right now for alternative reporting.

There are companies, like eCredable, that will check through your payment history on non-credit accounts and rate your creditworthiness.

However, these types of credit reporting programs cost you money.  You have to pay to have this information compiled, and if you apply for a loan again later, you need to have the information re-compiled with the latest updates, costing you again.

Some alternative credit reporting agencies allow you to set up arrangements for your service providers to report to them regularly, but you have to convince the provider to take the time to make the reports.  If the service provider or your landlord aren’t on board, then it does you little good.

Finally, these alternative credit reporting agencies are limited in terms of reach.

While some have relationships with major banks, chances are that you will have to choose from a small number of partner lenders willing to take a chance on someone who doesn’t fit the “traditional” credit mold.  This means that you might still be stuck with higher interest rates if you get a mortgage or car loan.  And in many cases these agencies can’t help you in the event of a credit check for cell phone service or insurance.

Another Technique for Keeping Your Credit In Good Standing

Your credit score depends on how you use credit, right?

If you generally don’t use credit but want to have an on-going credit history what you can do is keep one credit card and put a small recurring charge on it, like Netflix.  Then set up an automatic payment to make sure it’s always paid in full and on time.  This small recurring charge then shows up in your credit history as a fully paid item that has a very low debt-to-credit ratio.  It may seem silly that one small charge every month can help your credit score but it can.

Final Word On Using Utilities On Your Credit Report

If credit scoring is going to be an increasingly important part of the financial landscape — even when it comes to non-credit items, it makes sense start adding non-credit payment items to credit reports.  These will give a better view of what’s really happening with a consumer’s financial situation.

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Would You Like Your Utility Payment History Added to Your Credit Report?

Over the last few years, changes resulting from the CARD Act have helped consumers pay less in fees, and better understand their credit card statements, and how much credit is costing them.

Positive changes have resulted in consumers that are more educated about the cost of credit, as well as consumers that are no longer subject to the whims of credit issuers.

Advantages of the Credit CARD Act

For consumers, some of the biggest advantages have come in the form of restrictions on the way that credit issuers can charge them fees.

Here are some of the changes resulting from the Credit CARD Act:

Detailed description of the cost of credit:

One of the biggest changes is the way that creditors report information on credit card statements.  In the past, creditors simply listed the amount of interest paid that period in a list of charges, and asked for the minimum payment.

The cost of only paying the minimum was glossed over.

Now credit card issuers have to provide information about how long it will take to pay off the card with only the minimum paid (hint: it’s a long time).  Creditors also have to disclose the total amount paid over this period.  Additionally, credit card issuers have to let consumers know how much they will save if they pay off their card in three years, and provide the payment amount to make it happen.

This educates consumers, and many of them are now paying off their debt faster since they are armed with this information.

Lower fees:

The way that creditors charge late fees and over the limit fees have changed.

Late fees have been slashed, and consumers have to engage in certain activities to be charged a late fee.  On top of that, over the limit fees have been eliminated — unless the consumer has specifically opted in to allow for charges beyond the credit limit.  So, if a creditor allows these charges without the consumer’s consent, then the creditor can’t charge late fees.

The restrictions on these fees have resulted in lower costs for consumers, and allowed them to pay off their debts faster, since they don’t have to worry about large portions of their payment going toward fees.

Interest rate changes:

Now, credit card issuers have to apply the payment to the balance with the highest rate, reducing the amount that consumers pay.

Additionally, rates can’t be raised on an existing balance unless a consumer misses two payments in a row.  Rate increases on new balances require notification of 45 days.  And,the consumer has the option to reject the rate increase and pay off the balance at the current rate (although it means closing the account).

These changes save consumers money, and it allows them to make more informed decisions about how they tackle their credit card debt.

Issues with Business Cards

While there are protections in place for individual consumers, the Credit CARD Act is still a bit lacking when it comes to business cards.

The protections on interest rate and fees don’t apply to business cards.  This means that if you get a credit card for your business, the card issuer can still raise interest rates willy-nilly, and charge certain fees.

For many small business owners and solopreneurs, this is a problem.

It means that they are subject to higher costs, and there have been fears that credit issuers will try to make up for losses with individual card holders by raising costs on business card customers.

Some advocates call for expanding CARD Act protections to include business cards, but the call isn’t getting much traction.

Difficulties Qualifying for Credit

One of the realities of the Credit CARD Act, though, is that it makes it a little harder for certain consumers to qualify for credit cards.

Originally, the CARD Act required that a consumer’s assets had to be considered, which meant that non-working spouses ended up unable to qualify for credit.  Without being able to consider household income, it was hard for stay at home partners to build credit.  The Consumer Financial Protection Bureau changed things up in 2013, though.

Now, a stay at home spouse can use his or her partner’s income during the application process.

Even so, credit card issuers still have to make sure that the household can handle the debt load.  It’s a little easier for non-working spouses to qualify, but it’s still not a full-proof system, and you still have to be careful not to overextend yourself when it comes to credit.

Another reality is that the CARD Act makes it harder for college students to qualify — and the CFPB has done little to change that reality.  Those who are under 21 need to show that they have adequate income in order to qualify for a credit card without a cosigner.  College students can’t use their parents’ income as a way to qualify for cards.  They have to use their own.  If they don’t have adequate income, they need a cosigner.

The CFPB does allow for those who are over 21 to cite a third-party income source, but the applicant has to be able to show that there is reasonable access to this source of income so that he or she can pay the bills.

The whole point of these moves is to restrict access to those who may not be able to repay the debt. One of the problems facing many consumers is the fact that they can’t afford what they have in debt. By restricting how much credit they can access, it reduces the chances of problems down the road, especially if there isn’t the income to back up the bills.

When you think of it this makes sense, doesn’t it?

We’ve had a lot of easy credit in this country the past decade or so and it hasn’t always helped people.  Putting some restrictions on credit helps us from going overboard in debt.

Final Word On How the CARD Act Has Affected Us

No matter your situation, it makes sense to think through your credit choices.

Before you apply for a credit card, look at your finances and determine whether or not it makes sense for you.  Can you afford the credit?  Do you use it responsibly?  Will you be able to pay off what you borrow each month?

Card cards can be wonderful tools but they can always weigh you down in debt.

The CARD Act goes a long way toward forcing consumers to think through their choices, but it’s still possible to overextend yourself and wind up in trouble.

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CARD Act 5 Years Later: Can You Handle the Credit?

And many of these sites do show you a credit score — although it won’t be your actual FICO score.

Credit Sesame is one of these sites offering you information about your credit situation, and even offering ideas for how you can save money on your debt.

Take a look at what Credit Sesame offers…

How Credit Sesame Will Help Your Credit

Manage Your Credit and Debt

Credit Sesame will pull all of your credit and debt information together into one place.  The advantage of this is you can monitor your accounts in one place.  This is useful if you have a lot of accounts and you find yourself forgetting about one every now and then.  It’s also great to get an overall look at your spending as well as your debt.  We sometimes think we’re in a better situation than we think we are.  But looking at the entire picture of our accounts we see the situation amy be different.

Get Your Credit Score

Credit Sesame also offers you access to a credit score.

You get a free credit score every month as well as the opportunity to monitor your Experian credit report (this is great to make sure the information is accurate and that there aren’t any fraudulent accounts open in your name).  You get access to see your credit history as well as your credit score.

One cool feature is you can set up daily monitoring alerts that will tell you about changes to your credit report.

It’s important to note that Credit Sesame doesn’t use the FICO score.  Instead, your score is based on the Experian National Equivalency Score.  This means that you might see different results from your FICO score.  Still, the score should be a close approximation of your actual FICO and it should help to alert you if there’s work to be done to improve your score.

Credit Sesame is completely free to use; you don’t have to enter credit card information upon signup (many other companies offer a free score for a trial period where your credit card gets charged when the trial ends).

Instead, the web site makes money when you fill out offers, and a commission is paid to Credit Sesame (these are just offers, you aren’t required to ever sign up for them).

They analyze your financial situation, like your credit and debt, and show you offers that can help save you money, like mortgages or better credit cards to use.  Their tools will show you how much you can save now as well as your potential future savings.

You’ll have access to real-time monitoring and alerts, giving you information on changes in your credit.  Use their mobile app and keep up with your credit score and finances on the go.

A Little More About Credit Monitoring

Why would you want to monitor your credit report?  Once you know your accounts why would you want to keep looking at them?

Great questions!

One thing you want to monitor is whether the accounts that are open are legitimate.  You’ll get to see if new accounts are opened up without your permission.  This does happen to people and knowing about it when the account opens is far better than finding out down the line when there’s already a ton of debt rung up and your credit has taken a hit!

You’ll also be able to see any credit inquiries on your credit.  This means you can see when different companies are poking around to check your credit.  Many times this is harmless but it can also indicate possible fraud depending on the account and the inquiry.

Your credit limits are also useful to check and you’ll be able to do that with Credit Sesame.  When a credit line increases your credit you’ll be able to find out.

One important aspect to monitor is your credit utilization.  Why is monitoring your credit utilization important?  Your credit utilization is a big factor in your credit score.  In a nutshell it gives a possible lender a quick look at how much of your credit you are actually using up.  They tend to not want to see a high number here (the more you use the more possible debt you have, unless you pay everything off every month).  With Credit Sesame you’ll get alerts when your credit utilization increases or decreases.  If you have a big purchase coming up and need your credit score to be high then you definitely want to monitor your credit utilization to make sure it’s low!

So you see, being able to monitor your credit report is a powerful tool to have in your personal finance arsenal.

Credit Sesame offers up free credit history and credit score monitoring and other features as well.

Is Credit Sesame Useful?

This web site can be quite useful for your finances.  Powerful even.

Credit Sesame provides you with recommendations for saving money if you want a lower rate on a credit card, or if you want to refinance your mortgage.  They say that their offers are unbiased and are solely based on your financial picture.  Still, you need to do your own homework when dealing with credit cards and mortgages.  Feel free to sign up for offers they recommend just make sure you can’t get a better deal on your own.

You also won’t get an official FICO score — or even a score based on the FICO algorithm.

So, if you are planning on applying for a major loan, you might not have the most accurate information.  Credit Sesame is great to monitor your credit history and score but it shouldn’t be used as a substitute for your FICO if you are planning on a major loan.

You should also understand that the information in your file might not be right up to date; there have been reports of inaccuracies on the Credit Sesame web site in the past.

The main use for Credit Sesame is if you want a free tool to help you check in on your financial progress.

You can use the analysis offered by Credit Sesame to see whether you are making solid improvement.  You can get a general idea of your credit worthiness by noting whether your score is rising or falling.  You can also watch your debt levels decrease, and get some insight into actions you can take to improve your credit history.

Bottom Line

Credit Sesame isn’t your FICO score.  However, it can be a useful tool if you are looking for an idea of where you stand right now.  You can use Credit Sesame to help you set financial goals and measure your progress against benchmarks.

If your credit could use some improvement, Credit Sesame can be a great tool.  It’s also good if you are looking for free monitoring of your credit score and history.

Sign up now for Credit Sesame.

Here’s a YouTube video with a little more one what Credit Sesame is about…

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Credit Sesame Review – Free Credit History and Score Monitoring, Powerful Tools to Have

Not long ago Discover® did a bold thing and revamped their entire credit card line into the “it” series.

Their goal in doing this was to make their cards more consumer friendly while still providing a nice cash back program.  They made their cards fair with no annual fee, no overlimit fee, no foreign transaction fee, plus other benefits (we’ll get into that fun stuff below).

Well they’ve added a little more to their card – $75 cash back.

$75 Cash Back

This is Discover’s first card that offers up a cash back sign-up bonus.

In order to get the $75 you have to make $500 in purchases within three months of opening your account.   This is a pretty low threshold for a bonus payout, especially over three months.

Cash Back Rewards Program

A $75 cash back bonus is nice but you need more to a card, right?

You get 5% cash back on categories that change quarterly.

This is on up to $1,500 in purchases on your card.  Until the end of the year you get your 5% bonus with online shopping.  This is just in time for all the holiday purchases we end up making.  Make sure you sign up for each quarterly bonus, which is easy to do.

Oh, and all other purchases will get you 1% cash back.

Need help figuring out how to best use your card for rewards?  Give a call to their Cashback Concierge(SM) for a 1-on-1 online tour of how to get the most out of rewards for your card.

Here’s a sneak peek at the general 5% rewards categories for 2014:

• Jan-Mar: Restaurants and Movies
• Apr-Jun: Fresh for Spring
• Jul-Sep: Summer Break
• Oct-Dec: Holiday Shopping

Do you shop at Amazon?  Well you can use your cashback rewards towards Amazon purchases.

Being Fair To People

The Discover it Card has done added a few items to make their card a little fair to the people who use it.

There’s no annual fee.  There’s no overlimit fee.  And there’s also no foreign transaction fee (this a fee you can get charged when you use credit cards overseas and can average 3% of your purchase).

When you pay your bill you have until midnight EST on your due date when you pay online or by phone.  And you get to a due date that’s best for your cash flow.

Ever just screw up and lose track of a bill?  It’s happened to me a few times I’m embarrassed to say.  With this card you won’t get hit with a late fee on your first late payment (not that you should make a habit of paying late anyway).  And if you pay late it won’t wreck your APR rate either.

Need to Call Someone Over There?

If something comes up and you need to contact customer service you will get a real live person that resides in the U.S.

APR – Balance Transfers and Purchases

On top of everything else you get an intro 0% APR for 6 months on both purchases and balance transfers.  After that your APR is a variable rate.  The fee for a balance transfer is 3% of the amount you are transferring.

This Card Versus Other Discover it Cards

There is a trade-off with the $75 cash back.  There are a couple of other Discover it versions that offer up different terms on the intro APR.

One offers up 14 month of intro 0% APR on balance transfer and purchases (see our review here) while another offers 18 months intro 0% APR on balance transfers with 6 months 0% APR on purchases.

But the other two cards don’t offer up a cash back bonus when you sign up.

It’s all about what you need.  If you aren’t too concerned with the intro APR period then by all means go for the $75 bonus.  This is great if you don’t have any balances to transfer and you pay off your card in full every month.

Discover it Versus Other Company’s Cards

When I heard about the Discover it card the first card that came to mind was the Citi Simplicity® Card.  The Simplicity also attempts to be more lenient on consumers with no late fees or rate hikes for late payments.  But it doens’t offer a cash back program.  The Chase Freedom is another comparable card with its 5% cash back categories, similar to the Discover it Card.  But the Chase Freedom doesn’t offer up the same fee leniencies as the Discover it Card.

Is This Discover it Card Right For Me?

Overall I like this card.

You have to keep track of the cash back categories and make sure you register but you are also getting the opportunity for 5% back with 1% on all other purchases.  You also get a card that isn’t going to slam you if you make a mistake and pay late.  You also get 6 months of intro 0% APR on both balance transfers and purchases, all without an annual fee.  And let’s not forget that the Brand Keys Customer Loyalty Engagement Index Report has ranked Discover #1 in customer loyalty for 17 years in a row.

Keep in mind you will need excellent credit to get this card.

*See the online credit card application for details about terms and conditions. Reasonable efforts are made to maintain accurate information. However all credit card information is presented without warranty. When you click on the “Apply Now” button, you can review the credit card terms and conditions on the issuer’s website. Discover is a paid advertiser of this site.

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Review: Discover it Card $75 Cash Back – All the Fairness Plus An Opening Bonus

The Chase Sapphire Preferred^SM Card is offering this hefty bonus right now!

Charge $3,000 to the card within the first three months, and you get 40,000 bonus points.  Best of all, it comes along with a great travel rewards card.

Now to get into the meat of what makes the Chase Sapphire Preferred credit card so good…

Note there’s an Annual fee of $95, which is waived the first year.  However, the initial bonus alone more than makes up for the even first few years.  Think about that… It’s like they are covering the annual fee for the card for five years (if you redeem your initial points for cash).

There’s a lot beyond that initial bonus, though.

Rewards Points and More

First of all you earn points for EVERY purchase you make – 1 per $1 spent.

Then, you earn 2 points per $1 spent on travel— airfare, hotel rooms, cruises, rental cars, train tickets, taxis – even tolls.

With this card you also earn 2 points for every dollar you spend at restaurants – from fast food to fine dining.

If you book your travel through their Ultimate Rewards site, you get an additional 20% off of your purchase.  So, right off the bat you could purchase a free $500 flight with your 40,000 bonus points.

In addition to the 2 points for purchasing travel, you also earn an additional 1 point for each $1 of airfare and hotel accommodation net purchases when you book at ultimaterewards.com (for a total of 3 points).

The prices on the site don’t seem to be marked up from real world prices and there are NO blackout dates on when you can travel.  Do some comparison shopping with airline and discount travel sites and you should be able to come up with the best use for your points.

One pretty unique benefit: you will receive a yearly points bonus of 7% of all the points you earned in the previous year, even if you’ve used them already.  So you will actually have 42,800 points at the end of the first year, or 2,800 if you use your 40,000.  (For the first year, the points that earn the bonus are those accrued from the time you enroll through your December statement date of that same year.  After that, it’s the twelve month period beginning the day after your December statement date through your December statement date of the next year)

You can take your time figuring out what you want to do with those points – they don’t expire!  If you have other Chase cards that earn ultimate rewards, you can combine the points, giving you greater purchasing power.  Points are unlimited, too, so you don’t have to worry about caps on the rewards you should be earning.

Frequent Flyers

The Chase Sapphire Preferred allows you to transfer points 1:1 to a number of travel programs.

Are you enrolled in any frequent travel programs?

You can transfer your points from this card with no transfer fees and at full 1:1 value – that means 1,000 Ultimate Rewards points equal 1,000 partner miles/points.

Let’s go over that again because it’s important — earning points on this card can get you free flights or travel.

Participating travel programs include:

• British Airways Executive Club
• United MileagePlus^®
• Southwest Airlines Rapid Rewards^®
• Korean Air SKYPASS
• Virgin Atlantic Flying Club
• Amtrak Guest Rewards^®
• Hyatt Gold Passport^®
• Marriott Rewards^®
• Priority Club^® Rewards
• The Ritz-Carlton Rewards^®.

So, if you’re already really into getting rewards for travel, a card that is this flexible can really help you rack up the rewards.

Think about it.

With one card you get rewards that can be transferred to a number of air and hotel programs giving you the potential to save a lot on travel.  Of course you have to make sure the programs they transfer to are actually the ones you use.  Off the bat you can see they don’t cover American Airlines, Delta or Jet Blue.  Other credit card companies have relationships with those airlines.  Still, just about all the other major programs are covered here.

This card also provides an EXCELLENT perk for anyone who travels internationally: There are NO foreign transaction fees on purchases you make abroad.  These fees can often be as much as 3%.  Even American Express Gold doesn’t have this benefit.

For the money it could possibly save you on these fees, Sapphire Preferred could be a great foreign travel card for this reason alone.

Other Great Tidbits

Good customer service can seem impossible to come by these days, so it’s helpful that the card comes with 24/7 support that answers the phone directly without ANY prompts.

Least importantly (but still a teensy bit fun) – this card is made of metal, not plastic.  So it feels heavy and not chintzy like most cards.  Expect many oohs and aaahs from servers and cashiers.  Granted you shouldn’t get the card based on its material.  It’s just a nice side-feature to go with everything else.

Just want to redeem your points for some cold, hard cash?  Get cash back via check, statement credit, or even direct deposit to your Chase checking or savings account.

Remember: to qualify and receive your 40,000-point bonus, you must make purchases of $3,000 or more during the first 3 months from account opening.  (Purchases do not include using your account for balance transfers or cash advances, or using any checks that access your account.)  After qualifying, it will take 6 to 8 weeks for bonus points to post to your account. This must be the first time you’ve opened an account with this card to be eligible for the bonus, and the account must be open and not in default at the time that your bonus is due to you.

It’s a little high, but for many, $3,000 in three months shouldn’t be hard to spend if you charge all your expenses on this card.

But remember — this bonus isn’t worth anything if you can’t pay your statement in full each month!

The APR varies with the market and is based on the prime rate (as most cards are).  Pay your minimum payment late one time, and the penalty APR can jump close to 30% indefinitely.  Paying practically a third of what you owe them in interest each month can lead you into some VERY dangerous territory.  So, obviously, make sure you are in a position to use this card responsibly before applying.

Those are the basics, but you can save extra on travel, purchases and enjoy some unique experiences with this card on their Ultimate Rewards site if you do your research.

• Vacation Packages – Many packages that include hotel stays, meals and more are available.
• Get extra points when shopping –  You can get up to 10 extra points for every dollar you spend when you shop through the Ultimate Rewards Mall. Basically you click on a link to the retailer, and you buy the item at the merchant’s own site. Under the link it will say how many extra points you will earn per dollar spent. You have to click through this link to get the extra points!
• Gift Cards Discounts —  You can buy gift cards with you points at face value but there are usually a selection of gift cards on sale for LESS than the value of the gift card.

The fun aspect of this card is that you can get exclusive experiences with it.  These include VIP access to concerts, sporting events, movie premieres, food and wine tastings and more.  Some experiences can be bought with rewards points or cash, and some are auctioned off to the highest bidder (of points or cash).  Some things are offered free just for being a cardmember.

Just for fun, here is a sampling of experiences available for purchase right now:

• Ever dreamed of attending the Sundance Film Festival?  Chase Sapphire has packages for sale you can buy with points or cash that include hotel rooms, screenings, VIP events and more.
• How about a free ticket to a star-studded event in L.A.?  Sapphire Preferred cardmembers get a free ticket to the American Giving Awards, or can buy access to afterparties and other VIP events at the show…even walk the red carpet. Or dine with the celebrities over a meal prepared by a world-renowned chef.
• Sports Fan? Watch a NY Jets game from the green room or attend a warm-up session.

These kinds of experiences tend to be pricey, though.

Other more accessible experiences:

• Tickets to shows — like to the Radio City Music Hall Christmas Spectacular, or Yo Gabba Gabba live…many with options to meet performers, attend afterparties and more.
• Travel experiences — Already planning a trip somewhere? The card offers you unique experiences in many places across the country and around the world. Many of them are pretty decently priced, and as usual can be bought by points, cash, or both. For example – A walking tour and/or cooking demo in New Orleans,  a sunset clambake in Massachussetts, a New England cruise and lobster dinner, or a whitewater rafting trip down the rivers of Colorado.

Finally

All in all, the card is a great travel rewards card, mostly due to the double points on travel and dining and the great perk of no foreign transaction fees. You also get the power to transfer your points 1 for 1 to a number of frequent flyer plans.

If you travel this can be a powerful card to have in your arsenal!

The huge bonus they’re offering right now doesn’t hurt, either.

*Be smart and make sure you read through the card details to make sure this card fits your needs and you understand the terms and conditions. Be aware that the terms may change after this article’s publication.

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Review: Chase Sapphire Preferred Credit Card – A Powerful Travel Rewards Card!