DontSpendMore.com Blog

Category: Credit Cards

  • Hotel Credit Cards: What You Should Know

    By Tanya

    There are many different types of credit cards. There are traditional credit cards, cards that are for specific stores, cards for medical care and cards for catalog shopping. These are all popular, but if you are the traveling type, the best one you can have is a hotel credit card.

    There are a few things to keep in mind about hotel cards and savings; you can get a traditional card that gives you point rewards towards hotel stays, or you can get a card that is specific to the hotel or chain of your choice. For instance, if you are prefer to stay at the XYZ Hotel when you travel, you can apply for a XYZ-specific card that can only be used for hotels stays within the umbrella of the same brand. The purpose of this article is to help you to decide what type of hotel credit card best suits your needs and the important things you should know about them.

    Click here to compare different credit cards, including cards designed for travel and hotel stays.

    Choosing the best card for you

    Many hotels that offer their own lines of credit also offer sign up bonuses. As tempting as these bonuses are — and some are extremely tempting — you should never commit to a card simply because of the bonuses offered. Just because a bonus looks good does not mean the overall deal is good. For example, a higher deal on bonuses may mean a higher annual fee, so be diligent during your research.

    For those of you who prefer a specific hotel chain, think about choosing a card that provides you with discounts with that chain. These types of cards typically come with an annual fee attached to them. If you are a more flexible traveler and do not have a specific chain you are loyal to, your best bet is going with a card that does not have any annual fees and travel rewards that are more flexible. By using a card that is not brand name specific, you will likely be able to redeem your rewards not only for hotel stays, but for plane tickets, car rentals and other travel needs. In addition, if you are not a frequent traveler you may benefit from getting a card that will allow you to get cash back. This is great for vacations as well as travel savings.

    Annual fees

    As stated above, most hotel specific cards will require you to pay an annual fee. However, you should not let this stop you from getting one, especially if you are someone who travels frequently. The reason for this is that most annual fees come along with introductory deals that are very generous. This will usually end up giving you more bang for your buck due to the fact that the rewards you get will significantly exceed the annual fees. For the lesser traveled person, a card with zero annual fees is still a good deal. This is because each time that you travel your rewards are adding up so that you can get at least one free or low cost trip per year.

    If you are considering getting a hotel credit card, check out DontSpendMore.com to help you compare your options. It is always a good idea to shop around and compare cards before making a commitment to any card company.

    Click here to compare different credit cards, including cards designed for travel and hotel stays.

  • How To Chase Travel Rewards In Three Easy Steps

    By Tanya

    From extra work to more savings, we are constantly chasing our dreams. In this article, we will show you how to chase travel rewards in three simple steps.

    For those who travel frequently, credit card rewards that help defray costs are a major advantage. They help lower the overall price of family vacations, business trips and any other travel purpose. If you are not familiar with travel rewards, they are points added to specific credit cards that you can redeem on airline tickets and other travel needs. Some allow you to redeem your points for hotels and car rentals. The challenging part about choosing a reward program is that there are so many out there. Here you will find out how to chase travel rewards in three easy steps so you can get the best deals for your needs.

    Click here to compare credit cards that offer travel rewards. Free comparison tools.

    Step 1: Figure out your flying frequency

    Think about how much time you spend in the air. This is one of the most important things to consider while deciding on the best credit card to go with. The more you travel, the more points you will earn and this can turn into a great deal of savings over a stretch of time. Several of the best credit card travel rewards come along with a high annual fee. Some can even go up to $500, while others can be as inexpensive as $50 or $60. The bottom line is that if you are thinking about getting a card that has an annual fee you should make sure that what you are getting in return is worth the fee. Also keep in mind that if you do not fly often enough you should not choose a card with high cost fees.

    Step 2: Consider any restrictions

    Before making your choice it is important to know all the facts. This is when reading the fine print and asking detailed questions will come in handy. No matter how good a deal you think you will be getting, there may be restrictions on when, where and how you can redeem your rewards. For instance, there are credit cards offering travel rewards but only at specific times. At other times there are blackout dates when you are not allowed to use your reward points. Sometimes you have to use a certain amount of points in order for them to be applied to your travel. Beware of companies that charge you more of your reward points per trip in lieu of blackout dates.

    Finally, watch out for any credit card whose points have an expiration date on them. Travel is not something that every person does on a regular basis. Some will only fly when need be and that could mean once a month, once a year, once every year and half, etc. If the points do not rollover from year to year then you are paying for card fees that are not helping you save.

    Step 3: Review

    No matter how good an offer seems, you must review every aspect of it in detail. After you have done the initial research, do a final review of all the information before making any commitments. Of course you should check annual fees, credit limits, and interest rates, but since you are basing your choice on travel rewards you should pay very close attention to this aspect. Read the terms and conditions of the reward section so you fully understand what you are getting yourself into when you sign on the dotted line.

    There are so many cards and travel rewards to choose from. It is very easy to locate these types of cards; just a simple online search at DontSpendMore.com could get you moving in the right direction.

    We hope you liked our article “How To Chase Travel Rewards In Three Easy Steps.” If so, please let us know in the comments section.

    Click here to compare credit cards that offer travel rewards. Free comparison tools.

  • How To Reduce Debt, Especially Credit Card Debt In Six Easy Steps

    Dr. Kavita

    Credit card debt has now become a cuss word for a vast majority of us. America and many other developed nations of the world are reeling under credit card debt. We hear millions of readers ask us the same question again and again: How to reduce debt? Maybe it is the convenience that credit cards give us to buy now and pay later that pushes us into the dark hole of debt. Before we realize we are already in a financial mess and chances of coming out of that dark hole of debt seem very slender.

    Today we will discuss how credit card debt can be eliminated in six simple steps.

    Click here to compare credit card offers for debt consolidation. Transfer higher rate balances to 0% APR credit cards.

    Make a list of your debts

    Maybe you have many credit cards and have different amounts of debts on each of them or hopefully just some of them. Whatever the amount and rate of interest that is being charged on the cards must be written down in a list. This list should help you provide a quick assessment of your outstanding debts at the first look.

    Determine a monthly budget

    Despite the fact that you are drowning in credit card debts, you must be having a source of income that provides you with a certain amount of money each month. Try to budget this amount and make clear cut demarcations for your monthly expenses (that are unavoidable) and then put the rest of the money in to a debt fund.

    Look at the debt with highest rate of interest

    Now at this point, you will need to go back to your list of credit card debts and then find out the one that has the highest rate of interest being charged to you. This debt is the most dangerous one that is undermining your financial stability.

    Now look at the amount that you are paying each month towards this debt. Whatever that amount is, you now need to put away more from your debt fund towards this particular installment. Usually most of us do not have any debt elimination strategy/plan. And all we can think of is to equally distribute all our monthly savings between the numerous credit card debts that we carry. But this will not help with effective debt elimination.

    Instead, prioritize the debts according to rate of interest and then systematically distribute the funds between them.

    Keep continuing until you pay off your debt

    Try to stick to this schedule until you get the credit card debt with the highest rate of interest off your chest. Once you finish the debt payment on this card, make sure you get rid of it totally.

    Pick the next card

    Using the same strategy, now you need to pick the credit card with the next highest rate of interest and focus on this one until you get the debts on it fully paid, like the first one.

    Stick to basic minimum

    This process will not help you get debt free overnight, but it definitely works if you stick to the schedule consistently. Once you get all the major debts paid off, stick to the basic minimum number of credit cards that you require. More credit cards only mean more debt.

    We hope you liked our article How To Reduce Debt, Especially Credit Card Debt In Six Easy Steps. If so, do let us know in the comments below.

    Click here to compare credit card offers for debt consolidation. Transfer higher rate balances to 0% APR credit cards.

  • Credit Card Scam: Protect Yourself From Fraudsters

    Dr. Kavita

    Credit cards have made life much easier for those who use it. These plastic cards have ensured that you need not carry wads of cash everywhere you go. But sadly, sometimes credit cards become a source of heartburn for many consumers; thanks to the credit card scamsters who roam around the free online world.

    Click here to compare credit card offers and also review prepaid options for your safety

    What does credit card scam mean?

    Credit card scams usually entail fraudsters gaining unlawful access to the information on your credit card. They then use this information to conduct purchases that are then billed to your card.

    How do these scams happen?

    These scams could take shape in many different ways. Sometimes you hand over your credit card to a waiter at a restaurant and he says that he has to take it to the billing counter to be swiped. But en route to the billing counter, he manages to click a photo of the card and its details and stores it away for further use. Simple, right! It may not be prevalent but it is certainly a possibility.

    Or you could be conned into giving your credit card details on phone to some company promising a “too good to be true” service or offer.

    The computer which you have used for your credit card transactions online could have malware installed on it and which phishes your details and passwords etc. This can happen with both public computers and your personal home computer, if you have not installed adequate protection against such phishing attempts.

    How can you protect yourself from a credit card scam?

    The first step to protecting yourself from credit card scams is to be aware and stay alert. Never ever lend your credit card to anyone. Even if it is a loved one, they may not take the same care as you would there is a chance that the credit card information could be stolen due to such negligence.

    Never reveal your credit card details to anyone on phone or in person or online unless you are very sure about their identity and intention. Be extra vigilant when shopping or using your credit card online. Make sure that the website where you conduct your online transaction has SSL security certification and protection.

    Do not let your credit card get out of sight even for a minute when conducting transactions in shopping malls or restaurants.

    Do not keep your credit cards in your wallet; instead find a different and safe location for them. Thieves and pickpockets aim for the wallet, so it is better to avoid taking this risk.

    Always write down or save the credit card details and the emergency phone number that you are supposed to call in case of theft of the card in a secure and easily accessible location, so that you can act swiftly in the event of loss.

    Credit card scams are very common nowadays and nothing is going to help you if you think that such things will not affect you. Stay alert and proactively use the tips above to avoid being conned.

    Click here to compare credit card offers and also review prepaid options for your safety

  • Credit Card Fraud: Three Tips To Protect Yourself

    Dr. Kavita

    Credit cards were originally created to make life easier, shopping convenient, and travelling stress-free. But sadly the current situation of credit card users is far from being stress-free or easy or even convenient for that matter.

    Credit card fraud has witnessed an unprecedented boost in the past few years and that is definitely not helping consumers in any positive way. Seeing how common these frauds have become, it is high time to take some precautionary steps and safeguard ourselves from being cheated and conned. Here are there tips to protect yourself from credit card fraud:

    Click here to compare 0% credit card offers. Free tool to calculate your interest expenses and save hundreds every month.

    Be extra vigilant

    There may be many people who will consider you as being paranoid, but being extra vigilant about your credit card has its own benefits. Do not allow your card to leave your sight even for a split second when you are shopping and have handed over your card to the cashier to be swiped. Do you know a small sleight of the hand and your card could be scanned through an “illegal reader” right in front of your eyes? Some gas pumps have hidden scanners that can record your number if you are not vigilant.

    Similarly keep a lookout for your card when the waiter takes it to the billing counter in a restaurant. Avoid handing over your credit card to any employee when you are staying in a hotel and insist on making that trip to the billing counter yourself.

    Do not leave your credit card unattended even for a minute. You really cannot trust anyone when it comes to credit cards. All it takes is a second to click a snap of your credit card and store it away on a cell phone for future use.

    Be smart when shopping online

    Online shopping is the most preferred mode of shopping nowadays and that may be because we are increasingly accustomed to getting things done at our fingertips. But this sort of extreme convenience can often bring in some unwanted side effects as well, like online phishing of your credit card details and ensuing misuse and fraud.

    Do not use your credit card online unless you have a basic knowledge about security certificates of online shopping sites. Reputable and safe websites will have a SSL certificate displayed clearly, especially in close proximity to the pay button. Make sure that you recognize a SSL certificate and also check for https in the browser.

    Do not be naïve

    In a single day, you might be receiving at least a few e-mails and text messages that pretend to act as warning messages about a supposed fraud/unauthorized access to your bank account. These messages will typically ask you to login via a link in the message and will also ask you to update your bank account details by visiting your bank website using that link, in order to prevent further damage. Do not be naïve enough to click on such fraud links, because these could be phishing attempts by fraudsters who want to get their hands on your credit card and bank details. Though the site that you visit via these links may closely resemble your bank website, the truth is that this site is merely a clever imitation.

    Most importantly, monitor your credit card activity every single day. Most credit card companies will give you access to an online area where you can check your transactions and monitor activity. This is the best place to start practicing safety.

    Hopefully, these three tips will help you stay safe while using your credit card.

    Click here to compare 0% credit card offers. Free tool to calculate your interest expenses and save hundreds every month.

  • Ways To Improve Your Credit Score With Credit Card Debit

    By David

    Having a good credit score generally makes things a lot easier, but a decent amount of folks do not realize that until it is too late.  Many make numerous mistakes during their first few years of financial independence — having a bit too much fun with credit card debit cards — and they are often shocked when they find out just how much harder life is for those who have been deemed untrustworthy by the credit bureaus.

    Click here to compare 0% APR credit cards with up to 5% cash back. Free comparison of various credit card offers.

    Fortunately, even for those with extremely low credit scores, there are a few things that can be done to boost your standing with the credit bureaus:

    Take care of delinquent accounts

    A good way to let the credit bureaus know that you plan to start taking your financial obligations seriously is by dealing with all the negative accounts on your report.  Reach out to the lenders you have used in the past, and try to work out a repayment plan.  In some cases, when the past due accounts have already been charged off, you might even be able to settle the account by paying a lot less than the initial balance owed.

    Maintain current accounts properly

    When trying to build up your credit score, it is important that you keep all your current lines of credit in good standing. That includes credit card debit cards, as the former reports your activities to the credit bureaus, while the latter — which doesn’t usually report to the credit agencies — will do just that in the event that your account becomes overdrawn, and the negative balance is not promptly paid.  Therefore, avoid overdrafts on your debit cards, and try to pay the balance on your credit cards in full every month. With every payment made on time, your credit rating will start to move upwards.

    Use only a small portion of your credit line

    Having access to a large line of credit does not mean you should max it out.  Credit bureaus do not look positively on those who consistently use a large portion of their available credit, and it can be a sign of financial irresponsibility.  Therefore, try to avoid using more than 30 percent of your available credit at all times.

    Stop applying for every credit card debit offer you see!

    Some folks don’t seem to realize it, but applying for numerous credit lines during any particular period is detrimental to your credit score.  It is often looked at as a sign you might be desperate for funds, which leads them to question the reliability of your income.  If you are trying to build your credit score to buy a house, for example, try not to apply for any credit lines a few years before you plan to make the purchase (while maintaining good standing with your current lenders), as it will do wonders for your credit score.

    Having poor credit can be really frustrating, but fortunately, there is hope for those who find themselves in that situation. By following the above tips, you should be able to improve your credit score.

    Click here to compare 0% APR credit cards with up to 5% cash back. Free comparison of various credit card offers.

  • Did You Know Debit Cards Don’t Add To Your Credit Score?

    By David

    Having poor credit is no laughing matter, as it usually turns basic activities like signing up for cable and other similar actions into difficult tasks. To make things worse, once a person’s credit score plummets, securing lines of credit becomes a lot more difficult. Also, debit cards don’t add to your credit score, leaving many left puzzled on how to rebuild their credit history. Fortunately, there are a few tricks that can be used to salvage your credit rating and get you back in the favorable graces of lending institutions.

    Click here to use our free credit card comparison tool to find the best credit card offers for you

    Secured credit cards

    If you are constantly getting rejected every time you apply for a credit line, you might want to consider going for a secured credit card. Secured credit cards work a bit like debit cards, meaning you have to deposit funds into the account before you start swiping.  However, while debit cards don’t add to your credit score, secured cards do, so every on-time payment you make will be reflected on your credit score. If your credit score is too low to get you approved for a credit card, a secured card is your next best option.

    Managing balances properly

    Just because you have a credit line — secured or unsecured — doesn’t mean you should pile up all your bills on it, a mistake many make especially when using secured credit lines.  While secured cards require you to deposit funds before spending, they still work like unsecured credit cards. They report your activities to the credit bureaus just like their unsecured counterparts, so little things like using more than 30 percent of your available credit or failing to pay off the balance on your account in full every month can have negative repercussions on your credit file.

    Do not forget your debit cards

    While debit cards don’t add to your credit score, there no reason to stop using them. Unlike credit cards, the banks do not report your debit card spending to anyone, so there are no strict set of rules you need to follow in order to remain in good standing. Besides, every transaction you make on your debit card instead of your credit card reduces the chances of your falling into debt — which obviously has a negative effect on your credit score. So in a way, debit cards can actually help you improve your credit score indirectly.

    Staying on top of your finances

    Arguably the most important tip you can get, as it is virtually impossible to build and keep a good credit rating if you are irresponsible with your finances.  Learn to follow a budget, pay your bills on time, and make sure you go through the fine prints of contracts you enter. The whole credit rating system is designed to rewards responsible members of society who manage their finances properly, and once you become one, your score will certainly improve.

    With the above tips, you should not have any problems getting your credit score where you want it to be.

    Click here to use our free credit card comparison tool to find the best credit card offers for you

  • What To Look For When You Compare Credit Cards For Bad Credit

    By David

    Finding the right credit card can be a difficult process for anyone, but it is even more so for those with poor credit ratings.  Many lenders avoid these people like the plague, severely limiting the number of option available to them.  Fortunately, some lenders are a bit more willing to give people second chances, so they have created credit card options for those with bad credit.

    Here are a few things you should consider when you compare credit cards bad credit:

    Secured or unsecured

    Depending on how bad your credit history is, you might not be able to get an unsecured credit card. What is an unsecured credit card? That is when the lenders issue you a line of credit without collecting any collateral. Obviously, if you have a track record of late payments or even non-payments, credit card firms will be less likely to issue you a line of credit without guaranteeing they will be able to get their money back, so you will probably be limited to secured cards. Secured cards work a lot like bank debit cards, but they do report your spending and payment patterns to the credit bureaus, just like their unsecured counterparts.

    Click here to compare credit cards bad credit

    Annual Fees

    Since there is a lot more risk involved with issuing a credit card to someone with poor credit history, most lenders charge some sort of annual fee.  In most cases, the fees are reasonable, but there are a few credit cards out there with very high annual fees. Make sure you compare the annual fees on multiple credit card lenders before deciding which one is right for you.

    Interest rates

    For the most part, cards issued to those with a negative track record when it come to repaying debts usually have higher interest rates, again, to make up for the increased risks associated with issuing lines of credit to those with low scores.  Obviously, you want to look for the credit card with the lowest interest rate possible when you compare credit cards bad credit.  Of course, if plan on rebuilding your credit history, the interest won’t matter much to you since you will be paying off your entire balance in full every month. Still, it is always idea to go for the credit card with the lowest interest rates.

    Miscellaneous charges

    While you compare credit cards bad credit, you should certainly go through the detailed terms and conditions of the lending institutions, as you do not want any surprises after you sign up for the card. Find out what type of fees you will be looking at if for some reason you are unable to pay your bill on time. Will your interest rate jump up to something else if you miss a payment or go over your spending limit? That is something else you might want to think about before deciding which credit card provider is right for you.

    By following the above tips, you shouldn’t have any problems singling out the credit card that is right for you, even if you have bad credit.

  • How To Get A Business Credit Card For New Business

    By Matt

    Starting a new business can be one of the most exciting and stressful tasks you will undertake in your life. You could be giving up the comfort and security of a regular paycheck on an endeavor that poses risk, challenge and years of hard work. On the flip side, you get the opportunity to be your own boss, to put your ideas into action and claim all the credit when you succeed.

    Click here to compare business credit cards. Use our free comparison tool to navigate your options and find a 0% APR business credit card.

    Often, new business owners can underestimate the amount of red tape, expense and headaches involved in setting up a new company. You might start to appreciate what your old boss was going through when he was in one of his moods. At times, it seems like every hurdle cleared leads to the next unexpected obstacle. Credit is a common stumbling block for small businesses. Cash flow is sluggish but expenses remain constant. Access to a credit card could help ease the transition to profitability, but you have no track record and low revenue; most banks wouldn’t touch you with a ten foot pole. Does your business really need a credit card? How can you get a credit card for a new business?

    How credit can benefit your business

    In a new business that is just starting to get its feet on the ground it can be hard to keep up with all the expenses. Modern equipment, rent, advertising to get the word out, not to mention employee salaries; the bills seem endless. You probably aren’t paying yourself a salary and the money you saved up is almost gone. A business credit card can help ease some of the financial burdens and build your business:

    • Individual bills can be paid with the credit card. In a form of debt consolidation, use your credit card to pay bills as they come due. You want to keep your suppliers happy.  Organize your finances so that you pay your monthly card balance when it is convenient for your business.
    • Keep track of costs and keep an eye on spending with a credit card.
    • It gets the ball rolling on your company’s credit history. Building a positive credit score for your business can be a huge factor down the road when you are looking to finance an expansion, or invest in new equipment.

    Will my new business be approved for credit?

    That depends on how new your business is and your monthly revenues. Most credit card issuers require a business to have a good track record for several years and annual revenues in the millions to be considered a candidate for a corporate card. But that doesn’t mean your hands are completely tied.

    Your new venture will qualify for a small business credit card if you, as the owner, are willing to co-sign for personal liability. This means that if the business can’t pay the bills, the credit issuer can come after you personally. It also means your credit score will be verified and used to determine how much credit the business will get and how expensive it will be. Once your business is more established it can apply for its own credit card, and you can remove your personal liability.

    Remember when starting a new business to expect the unexpected. Always over-estimate expenditures and you will find yourself swimming more often than sinking.

    Click here to compare business credit cards

  • Give A Credit Gift Card And Win Hearts

    By Matt

    Say good-bye to the days of the gift certificate, and good morning to the dawn of plastic and pin numbers. Paper gift certificates have been almost universally replaced by gift cards which allow for simple transactions through existing pin pads. Gift cards also ensure that 100% of funds gifted remain in the retailer’s cash register, that is, no change is given. The balance of unused funds stays on the card until it is used. While this point is relatively inconsequential to the consumer, it makes a card considerably more appealing to the retailer than a paper certificate.

    Click here to compare credit gift cards

    Types of gift cards

    There are two main types of gift cards. Store gift cards, which can be used as credit towards any purchases made at that specific retailer and credit card gift cards, which are accepted anywhere credit cards can be used.

    [See Table 1 below for pros and cons of types of gift cards]

    Fees

    There are very few fees associated with store cards. Generally, maintenance fees, which credit card gift cards are also subject to, are the only fees you will encounter. Maintenance fees usually kick in 12 months after the card has been activated and deduct a small sum from any unused balance until the card is empty.

    Credit card gift cards are potentially subject to a variety of fees. Service fees can be charged on every transaction and can sometimes be as high as four dollars. Activation as well as maintenance fees may also apply.

    All types of cards may incur a shipping fee if they are purchased online. To avoid this simply purchase the card in store. Supermarkets and other large retailers usually offer a very extensive selection of gift cards.

    Why a gift card?

    Gift cards will save you a good deal in time and headaches, especially when shopping for multiple people during the holiday season. Shopping for a variety of people can be done in the amount of time it takes to choose a few appropriate gift cards off the rack. You probably spend more time choosing a suitable card for your mom on Mother’s Day.

    Gift cards, for the most part, are ideal in almost any gift giving situation. What man will turn his nose up at $50 he can spend, guilt free, on new tools of his choice at the hardware store? Is there a woman in America who would be offended by receiving a gift card for a relaxing afternoon at a spa? Gift cards are a convenient and simple way to keep your giftees looking forward to their next birthday.

    Click here to compare credit gift cards

    TABLE 1

    Type of card

    PROS

    CONS
    Store gift card
    • Generally no transaction fees.
    • Adds a personal touch.  The gift-giver is acknowledging personal taste in the recipient.
    • Can only be used at the specified retailer.
    • Unused balance remains on the card.
    Credit card gift card
    • Can be used anywhere credit cards are accepted.
    • No requirement for knowledge of recipients personal tastes.
    • Subject to more fees than a store card.
    • Unused balance remains on the card.