Personal Finance

Credit cards with free balance transfers are back

Mar 28th, 2012
by admin.
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They’re back! ever since the CARD Act — the personal finance reform law that did away with many anti-consumer practices — took effect in February 2010, free balance transfer credit cards were presumed dead.

Until now, that is.

Credit card companies had previously relied upon shady tactics like implementing unfair payment allocation and default rates at the drop of a hat to profit off these cards, which offer 0% introductory interest rates on balance transfers and do not charge balance transfer fees.

with the ability to do so taken away by legislators, the offers faded into oblivion. their return therefore raises a number of questions, beginning with what sparked the comeback.

There are a number of possible explanations for what led Chase and Discover to reintroduce free balance transfer offers a couple of months ago, with the leading hypothesis being that they simply want to add balances to their portfolios in order to give the false impression of growth.

whatever the case may be, you should be asking yourself: How can I benefit?

The truth is, you can benefit by moving quickly. Free balance transfer credit cards are extremely beneficial in that they allow you to pay off existing debt over the course of a year-plus at absolutely no cost, but they are unlikely to have much staying power due to the aforementioned profitability concerns.

a prime example of this is the No Balance Transfer Fee Discover more Card, which was recently discontinued just about two months after it was first offered.

The only offer currently available with a 0% APR for more than a year is the No Balance Transfer Fee Slate Card from Chase. it gives you 0% on both purchases and transfers for 15 months and obviously does not charge the standard 3% balance transfer fee assessed by the majority of balance transfer credit cards.

Not only can such terms help you pay down what you owe quicker and at less of a cost than normal, but they also enable you to avoid costly interest on purchases.

if you wind up applying for this or any such offer – which will require excellent credit for approval, by the way – make sure to pay off any balance before the end of the 0% intro term, at which point high regular rates will take effect.

Not doing so will rob you of the potentially significant savings attainable via a free balance transfer credit card.

Odysseas Papadimitriou is CEO of Card Hub, a website that helps consumers compare credit card offers.

Credit cards with free balance transfers are back

What’s in My Wallet: Credit Sesame CEO Adrian Nazari

Mar 3rd, 2012
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Editor’s Note: This piece is the first in an ongoing series called “What’s in my Wallet” that will appear every month on MainStreet, so check back to learn what payment methods personal finance experts use for their own expenses!

NEW YORK (MainStreet) — We often ask credit card experts for recommendations on different products, trusting their overall knowledge of the industry to make sound judgments.

But those who read out interview with Scott Bilker, the man with 50 credit cards, may have noticed that there are lessons to be learned by knowing what cards these experts actually use in their own lives. so we thought we’d take a look at what’s in the wallets of some of our favorite personal finance experts to let them vote with their wallets.

To kick off the series, MainStreet spoke to Adrian Nazari, CEO of Credit Sesame, a credit education site. He told us about his current credit cards of choice. For travel: Nazari pays for all of his business expenses with the Starwood Preferred Guest Rewards credit card from American Express. A mainstay on lists of the best rewards cards for travel, the card offers up to five reward points for every eligible dollar spent at Starwood hotels & resorts and one point for every dollar spent on other purchases. It also entitles cardholders to exclusive travel deals throughout the year.

Nazari prefers this card because, unlike some travel rewards cards, “it doesn’t have blackout dates on when you can use the rewards,” he says, adding that the card has helped him save a ton of money on travel expenses, particularly hotel rooms.

For everyday purchases: When it comes to making small day-to-day purchases, Nazari uses his Bank Americard Cash Rewards credit card, which entitles him to 3% back on gas, 2% back of groceries and 1% back on everything else. He chose the BankAmericard over other cash-back cards largely due to convenience. 

“I have a bank account with Bank of America,” Nazari says. “I can go online and look at both accounts.” He also has the accounts linked so he can pay off purchases as they happen. This allows him to earn the cash-back rewards without racking up a large balance that must be paid off at the end of the month. 

For large purchases: if there is a purchase Nazari knows he won’t be able pay off immediately, he uses the credit card he opened with National First Credit Union. the card carries a low fixed annual percentage rate of 9.9%.

“It’s good to use a card with a fixed loan rate if you are going to carry a balance,” he says, because these rates won’t change based on the interest rate the government charges to banks.    

For maintaining his credit score: Nazari does have a few other cards in his arsenal, including store cards from Sears and Macy’s, but admits he never really uses them. Still, he refrains from closing the accounts, since that would lower his credit-to-debt utilization ratio and could wind up hurting his credit score.

“If there is no annual fee, you’re just better off keeping them and charging something small every now and then so the account stays open,” he says.

What’s in My Wallet: Credit Sesame CEO Adrian Nazari

Air Miles Credit Cards For Persons With Fair Credit In Canada

Oct 8th, 2011
by Cherry Giddy.
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Unfortunately, most of the decent airlines credit cards around are for people with excellent credit, but the good news is that the pickings for people with good to fair credit are not as slim as you’d imagine. Of course, if you have poor credit, you should look for another type of card. One case in point, where fair credit is concerned, is the Aspire Gold MasterCard. As a cardholder, you will earn bonus miles without paying an annual fee. You get a mile for every Canadian dollar you spend, no matter what you buy. Each year you get 1,000 bonus reward miles. Miles can be redeemed for travel, cash, merchandise, gift cards and more. The balance transfer interest rate is 19.80 percent. The interest rate on purchases and cash advances is the same. Likely candidates should have a household income of $30,000 or over. Benefits include extended warranty, baggage delay, travel accident insurance, and more. The Master RoadAssist Service and 0 fraud liability are additional MasterCard benefits.

The CIBC Aerogold Visa TM Card is another preferred option. It also gives one reward mile to the dollar, 1.5 miles per dollar spent at gas stations, groceries and drugstores, and the possibility to earn additional miles when you use the card at participating partner stores. The issuer also features access to seats on Air Canada as well as Air Canada Jazz, with holders gaining access to executive class and executive first, and a warranty that you will not lose your miles earned up to that point if your account is inactive for a period of one year. The interest rate on balance transfers is 19.99 percent. You will pay an annual fee of $120.

If you need credit card with air miles the BMO Gold AIR MILES MasterCard is yet another option for applicants with fair credit. The first purchase on the card earns you 1,000 bonus miles, every $15 you charge earn one mile, and double rewards are offered if shopping at Shell locations. Other benefits are collision damage waiver coverage and acceptance at tens of millions of locations throughout the world. The interest rate is 19.5 percent. The balance transfer rate is the same, while the annual fee is $99.

Another air miles card is the ScotiaGold Passport VISA. Your first purchase charged to the card earns you 30,000 bonus points, the equivalent of $300 in travel rewards. During the first year, there is an initial fee of $99 and $110 a year thereafter. This card enables you to travel anywhere, at any time during the year. The interest on balance transfers is 19.99 percent.

Finally, one cannot go without mentioning the Delta SkyMiles World MasterCard, offered by Capital One. Your first purchase brings a bonus of 25,000 miles. You get two miles for every dollar you charge to the card on Delta purchases and another mile per dollar for all other purchases in net worth. You will earn 2,500 bonus miles for adding a new user.

Looking for great credit card deals, then go to http://www.creditcardreview.ca/. Find advice on Canadian credit card blog and learn how to choose a credit card.

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