What is a balance transfer?

A balance transfer is a process of taking an existing credit card balance and moving it to a new account with a lower regular APR. These transfers make it easier to pay down balances and often come with intro APR offers.

Who can qualify for a balance transfer card?

Because these types of cards offer low-interest rates, a good credit score is a minimum requirement for a balance transfer card. Many issuers require an excellent credit score, so a good benchmark for obtaining a card like these is a FICO Score of 700 or higher.

What are the downsides to a balance transfer?

Because these cards feature an introductory rate, you might find yourself stuck with more debt than you began. After the promotional period ends, only those with the best credit scores will have the lowest rates. Those with good credit might be paying a higher APR – primarily if they conduct their transfer using a rewards credit card. Other negatives of transferring a balance include: Increasing credit utilization on a single card, which can lower your credit score. Lowering the average age of your credit accounts by opening a new line of credit. A new line of credit also means a further hard inquiry, which can also impact your credit score.

Do all balance transfer cards come with 0% intro APR?

While many cards feature 0% intro AR, not all balance transfer cards provide an interest-free period, some cards – especially those from credit unions or smaller banks – may only offer a reduced interest rate. These rates maybe 3.99% or higher, but are often significantly lower than the standard variable APR.

Do all card issuers offer a balance transfer card?

While most major card issuers provide a variety of offers, not all currently offer a balance transfer credit card. Most significant issuers and banks, like Chase (Chase Slate Card), Citi (the Citi Simplicity Card), and others, provide balance transfer cards and low APR Cards. Discover also reintroduced its balance transfer card, the Discover It Balance Transfer.

What is the average interest rate on a balance transfer card?

According to the BestCards guide to the average APR for all types of credit cards , the current average interest rate for a balance transfer card is approximately 16.99%.

Do rewards cards make good balance transfer cards?

In some cases, yes. Some cash back cards, like the Citi Double Cash Card, offer 0% APR on balance transfers and cash back rewards program in one package. Just be sure to pay your statement balance in full before the due date, or you might incur a late fee or penalty APR.

Page 19 – BestCards.com

# of direct sign-ups	Referral score	Monthly rewards
1	28	$22
2	56	$44
3	84	$66
4	112	$88
5	140	$110
10	280	$220

Citi® Diamond Preferred® Card	Upgrade Cash Rewards Visa®	Wells Fargo Reflect Card	Discover it® Cash Back

Credit limit	$1,000	$2,000
Monthly fee	$10	$20
Predictable monthly payments	$45	$70

Zero Fraud Liability	Cardholder Inquiry Services	Emergency Card Replacement
Roadside Dispatch and Auto Collision Damage Waiver	Lost/Stolen Card Reporting	ID Navigator from Norton

“Cashback Like a Pro” with Chase Freedom Unlimited

by Cory Santos Friday May 12, 2023

Last updated on September 6th, 2023

Chase Freedom is joining forces with spokesman and comedian Kevin Hart, and two-time NBA MVP Stephen Curry, to continue a popular new advertising campaign. The “Cashback Like a Pro” campaign is back to help highlight the everyday value of Chase Freedom Unlimited, one of the most popular cash back credit cards on the market today

"We're Talking Cash Back?"

Chase Freedom and its popular spokesman, entrepreneur, and actor Kevin Hart is back for another installment of Chase Freedom’s “Cashback Like a Pro.” The campaign is designed to highlight how Chase fans get more from every moment and transaction, so whatever game they’re a part of, they can always get a little more with their Chase Freedom Unlimited credit card.

Following on the heels of the successful “Cashback Like a Pro” campaign with four-time NBA champion and two-time MVP Stephen Curry, Chase Freedom is joining forces with spokesman and comedian Kevin Hart for another installment, taking a look back on an iconic sporting event more than two decades ago.

Here’s the ad:

This is the second ad in the new Chase Freedom’s “Cashback Like a Pro” campaign. The first ad, featuring Hart and Curry, was entitled “Team Kevin” and saw the comedian, actor, and entrepreneur purchasing the team by “cashbacking,” with NBA star Curry in disbelief over Hart’s grand vision for the team.

About Freedom Unlimited

Chase Freedom Unlimited is the “everyday” member of the Freedom family of credit cards. Where the Freedom Flex prioritizes amplified rewards in set quarterly categories, the Freedom Unlimited provides a streamlined, unlimited amount of cash back – namely, 1.5% cash back on “all other purchases.” That 1.5% back is an accelerated bonus that helps you save money daily– not just on select purchases.

You probably noticed the “all other purchases” language – what was that about? Well, like other Chase Freedom credit cards, the Freedom Unlimited offers enhanced cash back on key categories:

5% cash back on travel purchased through Chase Ultimate Rewards
3% cash back on dining at restaurants, including takeout and eligible delivery services
3% cash back on drugstore purchases
And, of course, 1.5% cash back on all other purchases

Beyond the exceptional cash back rewards, Freedom Unlimited provides cardmembers with an attractive welcome offer. New cardmembers can earn a $200 bonus after spending $500 on purchases in the first three months from account opening. Other notable features include no annual fee and 0% intro APR on purchases and balance transfers.

Cash Back Rewards Comparison

The Freedom Flex is one of the most popular “unlimited” cash back cards on the market. It’s biggest competitor is the Citi Double Cash® Card. That card earns an unlimited 2% cash back on purchases: 1% when you buy and 1% as you pay with no categories, caps, or annual fee.

Here’s how the two cards match up:

	Chase Freedom Unlimited®	Citi® Double Cash Card
Rewards	Earn 5% on travel through Ultimate Rewards, 3% back on drugstore purchases and dining at restaurants, 1.5% back on all other purchases	2% back on all purchases (1% back when you purchase and 1% back when you pay)
Intro APR	0% Intro APR for 15 months on purchases and balance transfers	0% intro APR on balance transfers for 18 months after completing within first 4 months of account opening
Network	Mastercard	Mastercard
Annual fee	$0	$0

Related Article: Best No Annual Fee Credit Cards

Featured image by JP Morgan/Chase

Money Management Tips For Inflation

by Jeannyn Gomez Thursday May 11, 2023

Last updated on January 2nd, 2024

The U.S. Labor Department recently announced the current inflation rate for May 2023 stands at a high of 4.9%. The topic of inflation has been a popular one in recent times due to the world’s current events affecting the economy. Understanding how to manage your money in preparation for inflation is the move you want to make. Consider these money management tips for inflation.

How To Prepare for Inflation

There are a couple of actions you can take to improve your money management during times of inflation. The following tips can help extend your money, stretch your budget, and save more.

Grow Your Emergency Fund

Whether or not inflation is on the rise, an emergency fund, recommended by financial experts, is a must. An emergency fund should be worth three to six months of your essential expenses. Your budget should also plan for recurring contributions to an emergency fund just as you would a regular savings account. In return, you benefit from disciplined spending habits which can help you save more in the long run.

It helps if you think of your emergency savings fund as a bill to contribute monthly. You can also cut spending in other areas of your budget to help boost an emergency fund. With the security of an emergency fund, financial life challenges will give your wallet grace.

Continue Investing in Long-Term Savings

While it may seem counterintuitive, maintaining steady investing efforts in long-term savings should remain a priority. “Panic-selling” a stock portfolio is not always the answer. Returns in the stock market fluctuate each year. However, holding onto your investments over time can help.

According to Business Insider, the S&P 500 has gained, on average, 10.7% annually since introduced in 1957. Similarly, but better, the index has done slightly better in the past decade, averaging an annual 14.7% return. In other words, don’t get rid of your 401K just because inflation is on the rise. Continue any retirement savings without hesitation.

Take An Interest In The Bond Market

Other investments keep up with inflation, for example, I-bonds, a type of Treasury bond. These kinds of bonds are connected to the Consumer Price Index, meaning the interest rate gets adjusted every six months based on current inflation rates.

The downside is you can only invest up to $10,000 electronically each year. Likewise, another government-backed bond that adjusts to inflation is the Treasury Inflation-Protected Securities (TIPS). These may be purchased through the TreasuryDirect website, a bank, or a broker.

Opt For A Cash Back Credit Card

When you’re making your dollar stretch during times of inflation, it doesn’t hurt to earn a little money back for your overpriced produce or the weekly fill at the gas pump. With a cash back credit card, you can get earnings back for everyday purchases. The credit card market has various rewards cards options suited for every need. Some cards have customized cash back categories like the Citi Custom Cash℠ Card, which earns up to 5% cash back on purchases.

Related Article: Fight Inflation with Cash Back Credit Cards

Get A High-Yield Savings Account

Consider opening a high-yield savings account to increase earnings on your rainy-day money. Why have your money in a regular savings account when it can grow in another? A high-yield savings account earns compound interest on any savings in your account. Inflation has driven banks to raise the earning rate of high-yield savings accounts. Today you can find rates as high as 4.81% APY, like the Upgrade’s Premier Savings account or Synchrony’s High-Yield savings account.

Keep A Budget

A useful tip to follow when it comes to managing your money during inflation is to budget everything. Budgeting your funds acts as a guide and outlines where all your money gets allocated. Keeping a budget can help you prevent mindless spending, which can take away from funds you may otherwise add to your savings. When you budget, you get a birds-eye view of your finances, such as your income and monthly expenses.

Featured image by mykolasosiukin/Canva

Adjustable-Rate Loans Changing In June

by Jeannyn Gomez Wednesday May 10, 2023

Last updated on January 2nd, 2024

Changes for adjustable-rate loans are underway towards the end of June 2023. The changes could affect your current loan rates on things like mortgages, home equity lines of credit (HELOC), credit cards, and more. Here’s what you need to know about the upcoming expiration of the current index of interest rates.

Upcoming Changes For Adjustable-Rate Loans

Adjustable-rate loans get determined by the London Interbank Offered Rate a.k.a LIBOR. It’s an index of interest rates used in loans across the country and the globe. LIBOR sets the standard rates for adjustable loans in general. However, LIBOR is set to expire on June 30th of 2023. The standard rate for adjustable loans will no longer be set by LIBOR and will instead get replaced.

As mentioned, the widely used interest rate index affects various types of loans, including adjustable-rate mortgages, private student loans, HELOCs, and credit cards with interest rates based on LIBOR. Lenders will have to replace LIBOR with a similar index.

Many lenders for adjustable-rate mortgages and private student loans have already announced the new replacement. Many have switched to rates based on the Secured Overnight Financing Rate (SOFR). In contrast, lenders for HELOCs and credit cards have chosen the prime rate as a substitute. You will most likely receive a notice leading up to the set expiration date.

How The Change Affects You

According to Consumer Finance, your adjustable-rate loan will most likely see the most change from changing interest rates rather than a change to your loan’s index. In other words, the shift should be almost seamless. The new interest rate should be somewhat like its prior.

At times, lenders might also adjust margins to keep interest rates close to the same percentage. However, you may still encounter changes to your interest rates merely because adjustable-rate loans generally go up and down. The fluctuation in these loan rates occurs in conjunction with interest rate economic changes.

Although we haven’t reached the rate index’s upcoming expiration date, your adjustable loan lender may have already shifted to its replacement. Adjustable-rate mortgages, reverse mortgages, and private student loans will make the switch after June 30th, 2023. Also, note that LIBOR’s expiration does not affect Federal student loans.

Related Article: Rising APRs Require Credit Card Debt Strategies

Featured image by designer491/Getty Images

Tips for Using Business Credit Cards Wisely

by Cory Santos Monday May 8, 2023

Last updated on August 23rd, 2023

Misusing business credit cards can cost a company significant money. Fortunately, maximizing the value of business credit cards is easy – you just need a few expert tips. Here are five tips for using your business credit cards wisely.

Expert Tips for Using Business Credit Cards Wisely

Credit cards can be a lifeline for small and midsize business (SMB) owners. From rewards to discounts, lounge access to statement credits, business credit cards provide access to capital and can help companies save money through integrated management tools. Here are five top tips for getting the most out of a business card:

Look for Introductory Offers

One of the best ways to maximize the value of a business credit card is to take advantage of an introductory offer. Credit card welcome offers range from introductory APR to no annual fee and sizeable points or cash back bonuses. As a rule, welcome bonuses for business credit cards typically include at least one of the following:

No annual fee for the first year	0% introductory APR on balance transfers	0% introductory APR on balance transfers
No fees on eligible balance transfers or cash advances	Statement credits	Statement credits
0% introductory APR on purchases	Bonus points or miles for meeting minimum spending requirements	Bonus points or miles for meeting minimum spending requirements

Before taking advantage of an introductory or welcome offer, always read the fine print and terms and conditions carefully. Also pay attention to any deadlines mentioned in promotional martials so they don’t expire before applying.

Optimize Benefits to Maximize Rewards

Business cards differ from personal credit cards in the rewards they provide. A personal cash back credit card may feature the same bonus categories as a business card equivalent, but the business version will have different rewards rates. Special discounts and incidental credits are another way business versions of credit cards differ from the consumer option. These discounts include in-flight purchases, hotel or car rental savings, or preferred pricing on select services.

Maximizing rewards means optimizing company credit cards to mirror employee spending habits. Companies that send employees on international travel should consider an airline card that is part of a codeshare alliance (like Star Alliance, Oneworld, or SkyTeam). These cards may also offer TSA Pre-Check or other airport fast-track benefits. Similarly, companies with a large salesforce may benefit from a gas card, cash back card, or other rewards card.

Pay In Full Every Month

Credit utilization is one of the largest contributors to a business’s credit score. Put simply, credit utilization refers to the percentage of the total credit used from the total credit available. Therefore, companies should aim for lower credit use to attain a better credit rating.

Here are the critical scoring factors for businesses according to Experian:

Scoring Factor	Explained
Business age	How long has the company been open and operating as a business?
Credit applications	How many new credit line applications does the company have in the past 9 months?
Credit opened	How many new lines of credit has the company opened in the past 6 months?
Collections	Does the business have any accounts in collection or any liens?
Payment history	Does the business have a history of paying off their loans and credit lines on time?

Paying in full has another benefit – no interest charges. Only issue (and use) business cards if you can do so without carrying a balance from month to month. Doing so can save your company significant money over the long term.

Use Employee Spending Limits

Business credit cards are just like any other type– they require responsible use to avoid financial difficulties. Fortunately, many business cards provide comprehensive account management tools and business software integrations. These business features help account managers streamline their finances, track purchases, and even assist in writing off spending as a business expense.

One of the best tools to use on a business credit card is the individual spending limit control for employee-issued cards. A business card program includes a credit limit for the company and spending limits for each cardmember, with these limits set by the account manager. Typically, credit limits start as low as $100, although that minimum may vary by issuer.

Corporate cards are a better choice for large companies, as these bespoke business cards require a minimum of 15 authorized cardholders per corporation. These accounts are also better suited to oversee a huge amount of transactions.

Avoid Fees (if Possible)

Nobody likes hidden fees, but those small charges can exponentially inflate a company’s expenses if multiple employee cards are issued. Look for a business card without hidden fees, including foreign transactions, setup, or card replacement.

Perhaps the biggest fee to avoid is an annual fee. Business cards with travel rewards typically charge an annual fee of around $95 but there are plenty of excellent cash back cards that provide excellent rewards with no annual fee.

Foreign transaction fees are another fee to avoid. A foreign transaction fee is a charge added by a credit card issuer on any transactions overseas or with a foreign merchant. These fees are typically around 3% of the transaction cost and is added to the purchaser’s credit card statement. Look for cards with no foreign transaction fees to avoid excess costs at the end of the billing period.

Featured image by mwitt1337/PixaBay

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Citi Custom Cash℠ Card or Prime Visa: Read This Before Applying

by Cory Santos Sunday May 7, 2023

Last updated on May 8th, 2023

When it comes to finding the best credit card for you it is essential to do your homework first. The Prime Visa and Citi Custom Cash Card are two popular cash back rewards options, but which is best? Here is everything you need to know to find your best credit card offer:

Citi Custom Cash℠ Card or Prime Visa®: Which Is Right for You?

Before deciding which credit card is right for you, the Citi Custom Cash℠ Card or the Prime Visa from Amazon, here is a detailed breakdown of the cards, their features, and their suitability:

Pre-Qualification Before Applying

Applying for a credit card requires a credit check. Often, these credit checks (or credit inquiries) are known as “hard inquiries,” meaning the bank pulls your full credit report before approving (or denying) your credit card application. If you apply for a credit card and are declined, your credit score will likely take a minor hit. One way to avoid a negative impact on your credit score before getting a new credit card is by pre-qualifying before you apply.

Pre-qualification for credit cards is safe, fast, and effective. Citi and Chase offer online pre-qualification before applying, so seeing if you qualify for a lucrative cash back card has never been easier.

Related Article: How to Pre-Qualify for a Credit Card

Credit Score Needed

Both rewards cards require a “good” or “excellent” credit score, meaning a FICO Score of 670+ is the minimum you should expect to have before applying. For versatile, no annual fee rewards cards, however, a credit score of 700+ is likely needed.

However, keep in mind that your credit score is only one part of the equation. Banks also consider other factors, including how your income compares to your debt obligations and your overall ability to make your monthly credit card payments.

How to Apply

Most credit card applications from major issuers are similar. Here is what you can expect from the application process with all three cards – including what information is needed:

Info	Explained
① Full legal name and contact information	You’ll need your full legal name, contact address, phone number, and e-mail address to apply for pretty much every credit card.
② Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)	Most credit card issuers require applicants to have a U.S. Social Security number to apply for a credit card. Since foreign citizens likely lack an SNN, they may receive an Individual Taxpayer Identification Number (ITIN) instead. An ITIN is an ID number the IRS issues to anyone who needs to file income tax returns in the United States but doesn’t qualify for an SSN. Be ready to provide either of these items when applying for a personal credit card. The following banks accept foreign national applicants with an ITIN number, according to Experian: American Express Bank of America Capital One Chase Citibank OpenSky Wells Fargo Currently, only two major card issuers don’t allow applicants with an ITIN: Barclays Discover
③ Income	You’ll need to provide income information when applying for a credit card. Banks like to see that you aren’t too stretched financially, and part of this process is by evaluating how much income you have from things like your job, investments, and other sources.
④ Expenses	Your monthly expenses are the second part of the puzzle when it comes to gauging your risk as an applicant. Your monthly housing costs (rent, mortgage) current utilities, and other relevant info might be asked when you apply.
⑤ Credit Score	The final piece of informational lender needs to judge a credit card application is your credit score. Much of the information in your credit report is supplied by creditors and lenders, and potential lenders will use these details as a point of reference when considering you for a loan or line of credit. Your credit report is prepared and sold to prospective lenders and creditors by three credit reporting agencies – or bureaus, as they’re also known. They are Equifax, Experian, and TransUnion.

Annual Fee

Both cards feature no annual fee. It is worth noting, however, that getting the best rewards with Amazon and Chase requires an active Prime membership. Membership with Prime does have its benefits, including free shipping, special members-only discounts, and access to millions of films, television shows, and more. However, this is still an additional cost that those considering applying for this card must consider – a charge of over $100 per year.

Introductory APR

While the Prime Visa credit card does not come with a dedicated 0% intro APR period on purchases, Chase does offer special promotional financing on select Amazon purchases.

In contrast, the Citi Custom Cash Mastercard provides 0% Intro APR on balance transfers and purchases for 15 months. After that, the variable APR will vary depending on the applicant’s creditworthiness. Those 15 months are on par with other lucrative cash back cards, including the Chase Feeedom Flex and the Freedom Unlimited.

Related Article: What is the Longest 0% APR Credit Card?

How to Earn Rewards

Earning impressive cash back is great, regardless of the occasion. Here is precisely how the bonus categories breakdown:

Shopping with Amazon

The Prime Visa was designed for Amazon shopping. The Chase credit card offers cardholders an impressive 5% cash back rewards on all Amazon.com and Whole Foods purchases

Conversely, the Custom Cash earns 5% back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent, and 1% cash back after that. Plus, cardholders automatically earn 1% cash back on all other purchases.

Those 5% back categories include grocery stores and select streaming, meaning there is some significant value for the frequent Amazon shopper with the card. Here is a breakdown of Citi’s select streaming services, including Prime Video and Amazon Music Premium:

Amazon Music	Fubo TV	MLB.tv	Prime Video
Apple Music	HBO Max	NBA League Pass	Showtime
Apple TV+	YouTube (Music/TV)	Netflix	Sling TV
Audible	Hulu	NHL.tv	SiriusXM
DirecTV Stream	iHeartRadio	Pandora	Spotify
Disney+	Kindle Unlimited	Paramount+	Sticher
ESPN+	Luminary	Peacock	TIDAL

Earning Rewards Everywhere Else

When it comes to earning rewards outside of Amazon, it’s just as close a contest between the Custom Cash and Prime Visa.

As stated, the Custom Cashearns 5% back on your top spend category each month – up to $500 spent every billing period. Here are those 5% back categories:

Dining	Fitness clubs	Grocery stores
Drugstores	Gas stations	Home improvement stores
Travel & transit (select)	Live entertainment	Streaming service (select)

All other purchases made with eh Custom Cash (including after the $500 threshold is met – earn 1% cash back.

Outside of Amazon, the Prime Visa also earns an impressive 5% cash back on travel booked through the Chase Travel portal. Additionally, the card provides 2% cash back at gas stations, drug stores, and restaurants – plus 2% back on local transit and commuting, including rideshares. Those 2% back rewards aren’t excessive but give some value versus the Custom Cash. For example, Prime cardholders can earn maximum rewards at Amazon and Whole Foods while earning enhanced cash back on drugstore purchases– something the Citi card cannot do.

How to Redeem Rewards

Earning up to 5% cash back is great, but how can you convert those rewards into awards?

How to Redeem Rewards with Citi

While the Citi Custom Cash℠ Mastercard earns “cash back,” those rewards take the form of ThankYou points. This means that 5% back is 5X ThankYou points – a rather lucrative total.

Cardholders can redeem their ThanYou Points for a huge selection of rewards, including:

Gift cards, including 15% more value when redeeming ThankYou points for gift cards from Wayfair®, Sephora®, and Grubhub.
Merchandise through participating retailers (including Amazon)
Travel
Charity
Citi loan payments (mortgages, student loans, etc.)

Citibank offers point transfers to 17 airline and hotel partners:

Wyndham Rewards	Aeromexico	ALL – Accor Live Limitless	Flying Blue	JetBlue TrueBlue	Qantas Frequent Flyer
Avianca LifeMiles	Cathay Pacific	Choice Privileges	Qatar Privilege Club	Shop Your Way	Singapore Airlines
Emirates Skywards	Etihad Guest	EVA Air	Thai Royal Orchid Plus	Turkish Airlines Miles&Miles	Virgin Atlantic Flying Club

How to Redeem Rewards with Prime Visa

All points accrued with the Prime Visa Card are redeemable towards eligible Amazon purchases, cash back through Chase (either as a statement credit or into available savings or checking account), or redeemed for gift cards. Amazon credit cards also allow cardmembers can earn, view, and redeem rewards earned on their card daily rather than monthly, with the introduction of daily rewards.

These options provide solid value for cardmembers – especially those who prioritize savings with Amazon – and want to use points to get that big-ticket item they have their eye on.

Other Features

The Citi Custom Cash Card is a Mastercard product. This means cardholders can expect the following basic Mastercard protections:

Zero Liability Protection	Mastercard Global Services	ID Theft Protection

Zero Liability Protection

Mastercard Global Services

ID Theft Protection

In addition to these basic protections, cardholders may also have access to World Elite Mastercard features, including Luxury Hotels Collection access, Mastercard’s Hotel Stay Guarantee, Priceless Experiences, and more. Citi credit cards also enjoy the following protections to all cardholders:

$0 Fraud Liability	Virtual Account #s	FICO Score Access
Citi Quick Lock	Citi ID Theft Protection	Fraud Alerts

Conversely, the Prime Visa Card is a Visa Signature product. While Visa Signature’s basic protections are nearly identical to Mastercard’s the enhanced perks differ slightly:

Zero Fraud Liability	Cardholder Inquiry Services	Emergency Card Replacement	Luxury Hotel Collection	Extended Warranty Coverage
Roadside Dispatch	Lost/Stolen Card Reporting	ID Navigator from Norton	Travel & Emergency Assistance

Recap

Here is a quick recap of all the features of all three card offers:

	Citi Custom Cash℠ Card	Prime Visa
Rewards Rate	Earn 5% cash back on purchases in your top eligible spend category each billing cycle, up to the first $500 spent, 1% cash back thereafter. Also, earn unlimited 1% cash back on all other purchases.	Earn 5% back at Amazon.com and Whole Foods Market with an eligible Prime membership and on purchases made through Chase Travel, 3% back at restaurants, gas stations, drugstores, and local transit, including rideshares, and 1% back on all other purchases
Introductory Bonus	$200 after spending $1,500 in 6 months, plus 15 months of 0% intro APR on purchases and balance transfers	$150 Amazon gift card upon approval
Annual Fee	No annual fee	No annual fee

Related Article: Fight Inflation with Cash Back Credit Cards

The information related to Citi Custom Cash Card has been collected by BestCards.com and has not been reviewed or provided by the issuer or provider of this product or service.

Featured image by Gam-Ol / PixaBay

How To Manage Money With The 50/30/20 Budget Rule

by Jeannyn Gomez Saturday May 6, 2023

Last updated on September 19th, 2023

As part of your financial skills, budgeting should take center stage. Feeling secure with your finances is a beneficial factor in learning to manage your money well and responsibly. Use the 50/30/20 budget rule as a strategy for financial stability.

Managing Money With A Budgeting Strategy

Financial literacy is made up of various topics surrounding money, such as investing, personal finance management, and budgeting. Its importance lies in the ability to set up a solid foundation for the success of your money and to make life a little bit easier to manage. Today, we tackle budgeting with the 50/30/20 rule of thumb. Here’s what you should know.

The 50/30/20 rule of budgeting is simple. It states that 50% of your after-tax income should get allocated to your needs. Next, 30% of your income should go towards your wants or nonessentials. And the remaining 20% of your income should be split towards savings and debt repayments.

% of budget	50%	30%	20%
Allocation	Needs	Wants	Savings
Explenation	Things like rent, mortgage, groceries, medical expenses, insurance, etc.	Wants are your non-essentials like streaming subscriptions, gym memberships, dining out, vacation trips or travel, etc.	Things like regular savings, emergency funds, investing, debt repayment, etc.

A Little History Lesson

While the 50/30/20 rule is a popular budgeting strategy, it wasn’t always around. The rule originates from the 2005 book, “All Your Worth: The Ultimate Lifetime Money Plan.” It was written by the current US Senator, Elizabeth Warren, and her daughter Amelia Warren Tyagi. At the time of writing the book, the authors reference their prior 20 years of research experience to lay out a step-by-step plan for mastering personal finances.

The 50% Rule: Needs

As the rule states, 50% of your after-tax income should go toward your needs. These are non-negotiables that need to get paid without a doubt. We mean a roof over your head, food, clothing, transportation, healthcare, etc. In other words, half of your income should go towards things like rent or a mortgage, maybe a car note or public transportation, and groceries.

Remember, needs are any financial obligations. Not to be confused with nice-to-haves like your Netflix subscription or the daily local coffee shop purchase you might make on your way to work. If you find that 50% of your after-tax income isn’t sufficient to cover your needs, it may be time to downsize your lifestyle where possible, maybe a smaller home, a less expensive car, or cooking at home more often.

The 30% Rule: Wants

Next, 30% of your income should be reserved for your wants. Your wants are the non-essentials you splurge on, like vacations, the latest electronics, dining out, and more. Allocate this part of your budget for the optional things in life that really bring joy or aid in making life a bit easier to manage.

For example, instead of a meal delivery subscription, maybe opt for a less expensive option like a grocery delivery service to save time and do your cooking at home. Or, instead of signing up for a monthly gym membership, do your workouts at home and use the tons of free content on YouTube as a workout guide. In the long run, compromising to stay within your means will lead you to better budgeting practices for any financial goals you may have.

The 20% Rule: Savings

Lastly, the 20% rule carves out a budget for your savings and investments. Your savings should also include an emergency fund for those unexpected life surprises like a broken-down car or, on the more extreme, job loss. Most of the time, savings will propel a financial goal to fruition. Savings play a role in helping you achieve goals like buying a new car or buying a home.

Your savings can also fund investments in the stock market. Something as simple as having a 401K counts as part of your savings/investments. In addition to making IRA contributions. Debt repayment also falls under your savings. Minimum payments count as a need, while extra payments to reduce a principal – and future interest – fall under the savings category.

Why You Should Care About Budgeting

Having a budget is essential for your finances and daily living. It is the source behind having more security for emergencies or just life in general. It helps you achieve personal goals, long-term or short-term. Budgeting is not only about the serious things in life but can also help you fund your more exciting ventures like traveling, starting a family, memorable experiences, and more.

Featured image by Meshaphoto/ Getty Images Signature

Family Finances – 5 Lessons to Teach Your Kids About Credit Cards

by Cory Santos Thursday May 4, 2023

Last updated on August 28th, 2023

Like many other life lessons, teaching your kids about credit cards early in life can go a long way towards setting them up for a successful future. Even if they’re not old enough (or mature enough) for debit cards or credit cards just yet, it’s never too early to practice a few basic financial lessons and create positive money habits. Here are five lessons to teach your kids about credit cards:

Lesson #1: Wants vs. Needs

One of the core money lessons that you’ll want to teach your child is the difference between wants and needs – necessities and nice-to-haves. Chances are you know adults your own age that have issues with impulse buying, that is, buying what they want when they want without thinking about the state of their bank account.

This impulse can cause people to go into debt quickly, as they can have trouble paying their bills if they don’t budget themselves and spend money responsibly. An easy way to teach this concept to kids is by creating a chore chart that grants them “play money” for each chore completed, such as picking up toys and taking out the trash. This “play money” can then be exchanged for goods and services around the home, such as a scoop of ice cream after dinner or being able to stay up for an extra hour on the weekend.

Even ‘tweens can be taught the value of wants vs needs when they can’t “afford” the Wi-Fi password at home because they forgot to do the dishes. They’ll remember next week!

Lesson #2: How Credit Works

Deterring children from using credit cards to help keep them out of debt is a lesson that will backfire when their credit score is too low to qualify for a loan for a car or home. Instead, explain to children how credit works and how credit cards are tools that can be used both responsibly and irresponsibly.

The next time your child comes up to you with a toy or sugary treat in hand, instead of buying it for them, offer to let them borrow money for it instead. Let them know they’ll be charged 5 cents each day and they don’t pay you back until the debt is gone, which shows how interest rates work at a very simple level. You can then fill out a log with them to track how long it takes to pay you back, illustrating their “credit history”.

If it takes your child more than a month to pay back the cost with their allowance (earned from doing chores), charge them 10 cents per day the next time they want to borrow money. Explain that they’re being charged more because of how long they took the last time and would be charged less if they had paid back the borrowed money when agreed on. This shows the idea of good credit at a small scale and helps build responsible money habits they’ll be thankful for later in life.

Kids As Authorized Users

Once your children become teens, you may consider adding them as an authorized user for one of your credit cards. If you feel comfortable and confident with your child having a credit card, this option can help put their skills to the test. Adding a child as an authorized user to a credit card not only gives them real risk scenarios to consider but may also impact their credit score as some bank issuers will report a minor’s transactions to the credit bureaus. It is one of the more risker ways to teach your kids about credit cards. Again, we stress you only consider this alternative if you feel confident that your child shows enough responsibility and maturity to hold access to a credit card.


Citi Custom Cash℠ Card	Discover it® Cash Back	Blue Cash Preferred® Card from American Express	Chase Freedom Unlimited
Citibank has no minimum age requirement for authorized users even on their cash back earning credit cards.	Discover allows a primary cardmember to add an authorized user 15 and older to their credit card account.	The minimum age requirement for authorized users of Amex credit cards is 13 years and they do report credit to the bureaus.	There is no set minimum age requirement, however it is up to Chase to approve or deny the authorized user request.

Lesson #3 Use Real World Examples

While some kids may quickly pick up on lessons explained to them, others need concrete real-world examples to get ideas across. It may feel uncomfortable or even taboo but using your own accounts as examples to teach children about money and credit cards can make a difference as the stakes are as real as they can get.

When paying monthly credit card bills on your home computer or smartphone, allow your young one to sit beside you while you show them the process of transferring funds from one account to another. Show them the actual process of paying off credit cards, perhaps explaining how the family can only visit their favorite theme parks once a year because of how much it costs, and how they can go in the first place by paying it off over time. At this point, you can even touch upon the concept of cash back and rewards programs, explaining how specific purchases you make now can help save money later.

Lesson #4: Open a Savings or Banking Account

Following up on the idea of using real-world examples to teach your kids about credit cards, consider opening an actual joint savings account with them at the bank. This lesson goes beyond using chore charts and play money earned at home, as your child can now track their real money alongside you and grow accustomed to banking processes, including looking up their social security number and budgeting their own funds.

As this is a joint account, you’ll be able to track their spending and show them how their purchases now affect what they can afford later. The next time your teen wants a few dollars to pay for a microtransaction in their favorite battle royale game, take the money out of their account instead. When they can’t afford to hang out with their friends and pay for a few food truck snacks, remind them about how they paid for their digital avatar to dance around instead. Lesson learned.

Even easier now with the kid-centric debit cards that are on the market. They work hand-in-hand with allowance apps for kids. The combination allows for kids and teens to have a debit card of their own with all the tools necessary for parents to monitor their spending. A lot of the allowance apps also have technology that allows parents to pay allowances, set spending limits, and more.

Related Article: The Best Allowance Apps for Kids

Greenlight	Step	GoHenry	BusyKid
Potential for kids and teens earn money through chores.	A Visa debit card for teens with cash back or crypto.	A debit card for kids and teens with flexible parental controls.	A prepaid Visa debit card that works with the BusyKid mobile app.
Kids and teens can set savings goals, spend wisely, and invest.	Making purchases and payments helps build credit as it reports to the three main credit bureaus.	Real-time updates via the app to know your children's spending habits.	Includes cool tools for kids for investments, charitable donations, and more.

Lesson #5: Let Them Make Mistakes

Helicopter parenting grants immediate peace of mind, sure, but if children never fall, they’ll never learn to pick themselves back up again. It can be tough as a parent to watch your kid make a mistake they’ll regret, but allowing them to do so (financially, in this case), may be the kind of tough love they need.

Whether spending all their play money or actual money on an impulse buy, allowing them to make that mistake and not giving in when they ask for a pass is one of the most important lessons to teach. There will inevitably come a time when you won’t be there to be your child’s financial safety net, so allowing them to endure that defeat now and teaching them financial responsibility will build the character necessary to stand on their own in the future.

Related Article: The Complete Disney Rewards Guide

TransUnion To Bring Credit Scoring To Blockchain

by Jeannyn Gomez Wednesday May 3, 2023

Last updated on January 31st, 2024

Credit scores will be hitting Blockchain lending soon. Consumers on Web 3 and DeFi applications will have new lending options made possible by credit scoring provided by TransUnion in partnership with Spring Labs and Quadrata. Here’s what you need to know.

TransUnion To Bring Credit Scoring To DeFi & Web3

TransUnion is on its way to bringing credit scoring to Blockchain. When you think “blockchain,” you probably don’t think “credit scores.” For the first time, Web 3 and DeFi applications will have a way to assess lending risks via private consumer credit data. All made possible through TransUnion’s partnerships with Spring Labs and Quadrata.

The new Transunion service will be delivered to DeFi Applications using Spring Labs tech and Quadrata, a passport network with identity and compliance abilities for Blockchain apps. Its purpose is to help lenders make educated decisions on Blockchain credit applications. The off-chain credit scoring will require consumer permission while maintaining the user’s privacy on Blockchain.

The new method is made possible through Spring Labs’ patented process. Spring Labs will facilitate the credit score delivered by TransUnion to the consumer. The supplied data will contain extracted information – to help keep any user’s identity anonymous. The consumer can then provide their credit score to the DeFi App doing the lending for review.

Privacy has always been at the head of blockchain technology as both an advantage and a concern. With the tech developed by Spring Labs and Quadrata, TransUnion can deliver private credit scoring. It paves the way for a new market of consumers and broader inclusivity for lending services under the Blockchain pillar.

“As more consumers and lenders move to blockchain to conduct business, it’s important to ensure that the balance is struck between the information that lenders need to assess risk and the privacy and anonymity expected by users of the technology,” said John Sun, chief executive officer of Spring Labs. “This new product featuring TransUnion’s identity and credit data at its core is a big step toward achieving that balance and allowing more lending opportunities on blockchain while minimizing risk.” Source.

About TransUnion

Widely known for its credit reporting, TransUnion is a global information and insights company with over 12,000 associates operating in more than 30 countries. The company’s information and insight assist organizations and consumers to transact with confidence and accomplish great things.

About Spring Labs

The Spring Labs company provides enterprise-grade data security for sensitive information, such as consumer personally identifiable information, leveraging “private, vaultless tokenization”, pioneered and patented proprietary technology. For secure data with minimized risk.

About Quadrata

The Quadrata company is a passport network bringing the identity and compliance layer to DeFi applications on existing public blockchains such as Ethereum. Smart contract applications are able to leverage Quadrata’s proprietary technology to natively access KYC/AML status, country of residence as well as credit reputation and accredited investor status of Quadrata passport holders. Quadrata is a spin-out from Spring Labs, incubated as part of Spring Labs’ fundamental commitment to developing and promoting blockchain-based technologies. Source.

Featured image by McLittle/Canva

Big Changes for Amazon Visa Credit Cards

by Cory Santos Tuesday May 2, 2023

Last updated on September 6th, 2023

Chase and Amazon have unveiled new benefits and features on the Amazon Visa credit card portfolio, including new art, card names, and, most importantly, more cash back rewards. Here are all the major changes to the Amazon Visa credit card portfolio.

Chase Makes Major Changes to Amazon Credit Cards

The Amazon personal credit cards from Chase have had a makeover. The formerly Amazon Rewards Visa and Amazon Prime Rewards Visa credit cards now have new names, art, and features to maximize cardmember value.

Through the newly renamed Prime Visa and Amazon Visa credit cards, cardmembers can now earn up to 5% back on purchases made through Chase Travel. Prime Visa cardmembers earn 5% back, and Amazon Visa cardmembers 3% back on travel purchases made through Chase’s new and enhanced travel booking platform. Prime Visa and Amazon Visa cardmembers also earn 2% back on local transit and commuting, including rideshares like Lyft and Uber.

These new benefits are on top of the cash back rewards Amazon credit cardholders already earn on select purchases. Prime Visa and Amazon Visa cardmembers earn cash back on Amazon.com and Whole Foods purchases (5% back and 3% back, respectively) and on restaurants, gas stations, and drugstore purchases (3% and 2% back, respectively). Both cards enjoy Visa Signature protections and benefits, including:

Zero Fraud Liability	Cardholder Inquiry Services	Emergency Card Replacement	Luxury Hotel Collection	Extended Warranty Coverage
Roadside Dispatch	Lost/Stolen Card Reporting	ID Navigator from Norton	Travel & Emergency Assistance

Here are how the two Amazon credit cards from Chase compare:

	Prime Visa	Amazon Visa
Amazon Prime membership required?	Yes	No
Rewards	Earn 5% back on Amazon.com and Whole Foods Market purchases	Earn 3% back on Amazon.com and Whole Foods Market purchases
	Earn 5% back on purchases made through Chase Travel	Earn 3% back on purchases made through Chase Travel
	Earn 3% back on purchases at restaurants, gas stations, and drug stores	Earn 2% back on purchases at restaurants, gas stations, and drug stores
	Earn 2% back on local transit and commuting, including rideshares	Earn 2% back on local transit and commuting, including rideshares
	Earn 1% back on all other purchases	Earn 1% back on all other purchases
Annual fee	No annual fee	No annual fee

Daily Rewards Added

Both Chase Amazon credit cards also allow cardmembers can earn, view, and redeem rewards earned on their card daily rather than monthly, with the introduction of daily rewards. The addition of this new reward is a great way to quickly access points during busy periods – like the holiday season – where instant rewards can make (or break) a shopping trip’s budget.

“Even More Value. Faster”

“The addition of travel-based earn opportunities on the cards and ability to now redeem rewards points earned on purchases as soon as the next day means we’re providing even more value to our cardmembers faster,” said William Mahoney, General Manager of Amazon Visa cards at Chase in a press release accompanying the news.

“We’re excited to offer cardmembers—whether Prime members or not—even more ways to earn rewards for their Amazon purchases and everyday activities,” added Tyler Aldrich, director of Amazon Payment Products. “We’re committed to providing customers value during their shopping experience, and we look forward to introducing more ways for customers to save and earn on Amazon.”

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