An interesting article from WRAL.com asks the question:- “How rewarding are credit cards that promise rewards?”
It’s a very good question and in my experience the answer is that some are more rewarding than others.
This is backed up by Consumer Reports who have recently sized up credit-card reward programs and found some good ones. For example Blue Cash from American Express is thought to be among the best US based cash-back cards, although it’s patently not suited to everyone..
According to WRAL.com:
“Consumer Reports urges people to be aware that card companies offering 5 percent cash back on purchases usually have restrictions. The American Express Blue Cash card, for example, offers 5 percent back only after a cardholder has spent $6,500 at supermarkets, gas stations and other locations. Likewise, the Discover Open Road card gives 5 percent back on gas and car maintenance only for the first $1,200.”
Tobie Stanger of Consumer Reports advises that:
“It’s important to know the specifics of your card and keep an eye out for any changes in terms, also everybody must size up which card is best for them.
You have to understand the terms. The credit-card companies have become very creative, and the terms can be confusing.”
Tobie Stanger goes on to say:
“If you regularly carry a balance on your credit card, don’t even bother with these cards because the finance charges will eat up any rewards. But if you pay your balance every month, they can be great”.
The story is always the same. Pay your balance off at the end of the month…
An interesting piece of research published by Lloyds TSB reveals that 26% of UK Internet users took a “these things happen” attitude to online fraud.
The study also looked at some fascinating demographic differences:
• Just 15 per cent of people aged 18-25 said they felt ‘very well informed’ about appropriate ways to avoid becoming a victim of online banking fraud. This compares to 22 per cent of 35-50 year olds and 29 per cent of those over 65.
• Gender was another major discriminator - 26 per cent of men claimed to be well informed, whereas just 14 per cent of women expressed confidence.
• Some 39 per cent were blithe because they knew their bank would reimburse them.
Ian Larkin, managing director of consumer banking at Lloyds TSB, said:
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According to CreditCards.com US Student Credit Cards charge whacking great annual percentage rates (APR’s) that top rates applied on other card categories.
Figures listed below:
Low Interest 11.41%
Balance Transfer 11.41%
Bad Credit 12.81%
Cash Back 13.13%
Reward 13.66%
Business 13.95%
Instant Approval 14.18%
Airline 15.08%
Student 17.88%
The problem is that fluctuations in the Fed’s prime rate is heaping further misery on student cardholders because a majority of banks base their credit card APRs on an index tied to the prime rate.
According to the U.S. central bank: “54% of credit card issuers tie card interest rates to prime.”
That’s a whole lot of misery for young students struggling to meet interest repayments.
Posted by Tom Wilkins on Fri 17th August 2007 at 06:00 AM, Filed in Credit News
There has long been some scepticism about the wisdom of using credit cards for online gambling. But now a financial expert has spoken out, by warning online gamblers that it’s easy to lose track of expenditure which can result in huge overspend. This makes complete sense.
With the rapid increase in UK online gambling many banks are blaming some of the rising bad debt on gambling addictions fed by the online phenomena. In a reaction to this, many online gambling sites have stopped accepting credit cards. About time to I say.
An expert from Moneyexpert.com, Sean Gardner, is quoted as saying:
“It’s very easy to lose track of the money you owe on your credit card, particularly with online gambling. If you have wracked up debts through gambling the important thing is not to bury your head in the sand. If you can’t meet repayments it’s always better to tell someone or to seek professional help.”
(Via CardGuide)
The MBNA Platinum Plus Credit Card isn’t going to win any prizes for originality with it’s design. Unimaginative, might be the best way to describe it!
However, it does offer some reasonably interesting features to make up for it’s lack of credit card cool…
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