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Upgrade Card Now Offers Cash Back Rewards

by Cory Santos Friday October 30, 2020

Last updated on January 29th, 2024

The Upgrade Card is one of the most popular low-rate credit cards on the market. The card, offering credit limits of between $500 and $20,000, offers a flexible way to pay off debt faster than with a standard credit card. Now, Upgrade is offering cash rewards with on-time payments. Here’s what you need to know about the updated Upgrade Visa Card with Cash Rewards – and if it makes an already good card even better.

Upgrade Visa® Card – Now with Cash Rewards

The Upgrade Card has become a popular option for those looking to pay down debt. Since its launch three years ago, Upgrade has issued more than $3.5 billion in credit.

The main selling points of the Upgrade Card are the exceptional APR and simple installment plans. Interest rates with the card start as low as 8.99% (well below other low-rate credit cards), and Upgrade combines balances into an installment plan of up to 60 months.

Now, Upgrade is “upgrading” its own card by offering a cash back rewards program. Cardholders will earn unlimited 1.5% cash back with every purchase – with no strings attached. There are no bonus categories, no points, no hassles.

A Refreshing Take On Credit Card Rewards

One of Upgrade’s excellent features within its new rewards platform is how the company pays out those rewards. Upgrade prides itself on encouraging responsible credit use and on-time payments. This emphasis on financial responsibility is evident in the new Upgrade Visa with Cash Rewards.

Instead of earning unlimited 1.5% cash back on initial purchases, Upgrade pays out the 1.5% back after accountholders pay off their monthly balance. This refreshing approach to rewards is a great way to incentivize users who act responsibly and avoid the endless cycle of credit card debt.

Is the Upgrade Card Worth Considering?

The addition of rewards is another feather in Upgrade’s cap, which already offers an exceptional hybrid credit card product. The Upgrade Card walks a blurred line between balance transfer credit card and traditional cash back card. The card combines the flexibility of a credit card – including the wide acceptance of the Visa payment network – and the low cost and predictability of a personal loan.

Upgrade offers a simple prequalification (with no impact to your credit score), access to a virtual credit card while the physical version arrives in the mail, and the benefits of contactless payment technology – something everyone has come to appreciate during the coronavirus pandemic.

The new Upgrade Card with cash rewards also maintains the lack of fees users have come to love. There are no annual fees, maintenance fees, late fees, return payment fees, or activation fees. Even better, when using the card abroad, there are no foreign transaction fees.

About Upgrade

Upgrade is a neobank and fintech startup launched in 2017. The company’s stated goal is to create an online and mobile banking experience that delivers exceptional value for customers by eliminating fees on everyday transactions and offering affordable and responsible credit through cards and loans. To date, more than 10 million consumers have applied for a loan or credit card through Upgrade.

Featured photo by Matthew Henry / Burst

Capital One Journey Now Offers Streaming Service Credits

by Cory Santos Friday October 30, 2020

Last updated on April 10th, 2023

Student credit cards are a great way to build credit while enjoying an unsecured credit card’s benefits. Like other credit-building cards, most student cards do not offer signup perks, such as an introductory APR or travel credits. Now, however, Capital One is looking to change this perception by adding statement credit for streaming services on the Journey® Student Credit Card.

Journey Student Card Offers New Streaming Bonus

The Journey® Student Credit Card from Capital One® is one of the better student credit card options on the market today. The card, like other student credit cards, provides rewards for those who demonstrate financial responsibility. The newest bonus from Capital One is a statement credit for eligible streaming services.

Related Content:

Journey Card Streaming Service Statement Credit Details

New Journey cardholders can earn up to $60 in statement credits in their first year after opening an account. Students receive a $5 credit each month they pay their statement balance on time. If one pays their bill on time for the entire first year, they are eligible for $60 in total credits.

The following streaming services are eligible for the statement credits:

Amazon Prime Video
AT&T Now
CBS All Access
Disney+
ESPN+
Fubo TV
HBO Now
Hulu
TV
Sling TV
YouTube Premium
YouTube TV

Streaming credits apply to the following music streaming services:

Amazon Music Unlimited
iHeartRadio
Pandora
SiriusXM
Spotify
YouTube Premium Music

Credit also apply to select audiobook services, including:

Audible
Kindle Unlimited

Other Features of the Capital One Journey Card

Despite the new streaming credit only being for new accounts, the Journey Student Card offers rewards for all cardholders who pay their bill on time. While the card’s typical reward rate is 1% cash back on all purchases, those who pay their bill on time get an extra 0.25% back. That’s a total of 1.25% in cash back.

Featured photo by Jeswin Thomas / Burst

Citi® Double Cash Card Will Now Be a World Elite Mastercard

by Cory Santos Wednesday October 28, 2020

Last updated on April 25th, 2022

While the Citi® Double Cash Card – 18 month BT offer isn’t the flashiest cash back card on the market, its earning potential makes it a favorite with consumers. Citi is now adding a little more flash to the card by upgrading it to a World Elite Mastercard. Here’s what you need to know about the Citi Double Cash World Elite Mastercard upgrade – and how to get your new card.

Citi Double Cash Card

The Citi® Double Cash Card – 18 month BT offer is one of the top cash back credit cards of 2020. The card offers a no-nonsense 2% cash back on all purchases. The cash back with the Double Cash comes in two parts: 1% back when users make a purchase with the card and 1% back when they pay off that purchase on their statement.

This 2% cash back is more than other flat-rate cards on the market provide, such as the Chase Freedom Unlimited, Wells Fargo Cash Wise, or Amex Cash Magnet. Beyond the cash back potential, the Double Cash also offers a lengthy introductory balance transfer APR – 18 months of 0% interest rate, to be precise.

Previously, the Citi Double Cash was a basic Mastercard. As such, it offers essential Mastercard perks, such as ID Theft Protection, Mastercard Global Inquiry Services, and Zero Fraud Liability. Now, however, the card is getting an upgrade to World Elite Mastercard status.

World Elite Mastercard Perks

The upgrade to World Elite Mastercard means Double Cash cardholders will enjoy the pinnacle of Mastercard protections and benefits. Just some of those perks that come with a World Elite card include:

ShopRunner: Free membership providing 2-day shipping with over 120 leading online retailers.
Onefinestay: Enjoy 10% savings on over 1,000 rental properties worldwide.
World VIP Concierge: 24/7 concierge service for airports, travel, and any other concerns.
Mastercard Luxury Hotel Collection: Complimentary upgrades, late checkout, and more at over 2,000 properties worldwide.
Cell Phone Protection: $1,000 in coverage per year ($600 per claim) if your phone is lost, stolen, or damaged. Cardholders must pay their phone bill with an eligible card. Terms and conditions apply.
Lyft: Take five rides in a month and get a $10 Lyft credit. This is a recurring benefit and can be earned multiple times.
Boxed: Earn a 5% cash back reward on all Boxed orders. Boxed offers to ship for bulk orders worldwide.
Fandango: $5 off future movie tickets or at-home purchases for every two movie tickets purchased.

Chase recently upgraded their cash back credit cards to World Elite Mastercard status. The Chase Freedom Flex, the issuer’s latest cash back offering, sets a new bar for what a cash rewards credit card can offer – something Citi is eager to match.

What Do Double Cash Cardholders Need to Do?

Current Double cash Cardholders have nothing to worry about. They will receive email verification from Citi that their card is automatically updating to the new Citi Double Cash World Elite Mastercard.

Current cardholders can anticipate a new credit card in the mail soon, which they can activate when it arrives. Cardholders can activate their new Citi credit card by calling the number on the back of their card, or by visiting the Citibank online activation link.

Featured photo by limicro/ Pixabay

New Lyft Statement Credit Offer for Mastercard Holders

by Cory Santos Saturday October 24, 2020

Last updated on August 24th, 2023

Mastercard is offering a new $15 Lyft credit for taking eligible rides each month. The new benefit runs through the end of the year and is in addition to current Lyft and World/World Elite Mastercard benefits. Here’s what you need to know about the new Mastercard Lyft “Get Up to $15” promotion:

Mastercard’s “Get up to $15” Promotion Details

Eligible Mastercard holders can earn up to $15 in Lyft credits each month through December 2020. Cardholders who use their World or World Elite Mastercard to take Lyft rides earn a $5 for up to three rides.

The new offer is in addition to the regular Lyft benefits World Elite Mastercard users enjoy typically. World Elite Mastercard holders who take an additional five Lyft rides within a calendar month – and use their Mastercard to pay (either entirely or partially) – receive an extra $10 statement credit.

Mastercard “Get Up to $15” Program Terms and Conditions

Here are the full terms and conditions for the

Get up to $15: Beginning 10/15/20, Lyft users can participate in Lyft and Mastercard’s “Get up to $15” program (“Program”). By taking and partially or fully paying for three (3) Eligible Rides in a calendar month, Lyft users will receive a $5 Lyft credit (“Credit”).
By taking and partially or fully paying for five (5) Eligible Rides in a calendar month, Lyft users will receive a $10 Lyft credit (“Credit”).
The rides must be paid for with an eligible World Elite or World Mastercard credit card (Apple Card is not eligible for this program, but Apple Pay or Google Pay may be eligible if your World Elite or World Mastercard credit card is the funding source).
Limit of up to $15 Credit per calendar month per Lyft account.
An “Eligible Ride” is any Lyft ride types, excluding business rides and bicycle and scooter rental rides.
Valid only in the USA. Whether a ride qualifies as an Eligible Ride for purposes of the Credit will be determined at Lyft’s sole discretion.
Credits expire 30 days after application.
Limited time only and while supplies last.

What About Credit Cards for Uber Users?

Those who prefer using Uber formerly had the Uber Credit Card to maximize their savings with the world’s largest ridesharing service. That card, issued through Barclays, was closed to new applicants earlier this year, however.

Fortunately, other credit cards provide savings with Uber. The Apple Card, for example, offers 3% cash back with select retailers – including Uber. That 3% back also applies to Uber Eats, the meal (and grocery) delivery service offered through the company.

There are also plenty of other credit card offers that provide savings on rideshares, though these are not Uber-specific:

Chase Sapphire Cards

Chase Sapphire credit cards are another option or those who like the flexibility to choose their rideshare service and earn rewards. Both Sapphire cards – the Chase Sapphire Reserve and the Chase Sapphire Preferred – earn impressive Ultimate Rewards points on rideshares, though there is much greater value with Lyft over Uber.

Featured photo by DariuszSankowski / Pixabay

American Express Updates Cash Advance Terms – Again

by Cory Santos Friday October 23, 2020

Last updated on April 5th, 2023

American Express is updating its cash advance definitions yet again. The card issuer is further refining the language just months after the last update. Here is what you need to know about the new Amex cash advance terms – and when they take effect.

New Amex Cash Advance Rules Begin January 2021

American Express updated its cash advance language in September to add digital currency and digital precious metals as acceptable cash advance forms. These changes are set to begin on November 1, 2020.

Now, Amex is modifying cash advance language even further, adding precious metals in the form of bullion or coins. Amex announced the changes earlier this month, with those updates coming into effect on January 15, 2021.

The official language of the cash advance change is:

“Effective January 15, 2021, we are updating this sub-section to add precious metal coins and bullion to the definition of Cash Advance in your Cardmember Agreement.”

What Are Cash Advances?

Cash advances are a common feature with most credit cards. Cardholders can borrow money from their credit limit, albeit with higher-than-average interest rates. Lenders typically restrict the total amount of cash a cardholder can receive in advance and charge a fee per transaction. This fee is usually either a flat amount or a percentage of the transaction.

Updating the cash advance language may also help American Express limit credit card churners’ ability to take advantage of loopholes in sign up bonus spending language. Previously, some churners have taken advantage of these loopholes to reach spending minimum requirements by purchasing currencies, including valuable coins.

Whether this is the final update to Amex’s credit card terms and conditions is unknown. Many precious items, such as jewelry, still fall outside of the new cash advance language. Keep up to date with any additional changes by subscribing to the BestCards newsletter or following us on social media.

Featured photo by timcgundert/ Pixabay

American Express Removing Gold Card Airline Credits

by Cory Santos Thursday October 22, 2020

Last updated on January 29th, 2024

The American Express Gold Card is a perennial favorite of travelers, but is that about to change? According to Amex, the Gold Card will lose its $100 airline statement credit starting in 2022. Here’s what you need to know about the removal of the airline statement credit for the Gold Card – and what may replace it.

Amex Gold Card Statement Credit Changes Coming in 2022

The Gold Card from American Express provides robust value for its annual fee of $250. This value includes 4X points on worldwide dining and U.S. supermarkets, 3X points on flights booked through amextravel.com, and various statement credits.

One of those statement credits is $100 for airline incidentals. Starting January 1, 2022, however, American Express will remove that airline credit. There is currently no news on what will replace it – or if it will be replaced.

“Stay Tuned”

An American Express spokesperson issued the following statement to rewards point advice site, The Points Guy:

As we are always looking to evolve our Card benefits and services to best support our Card Members’ needs, the Airline Fee Credit on the American Express Gold Card will no longer be available at the end of 2021. Current Gold Card Members will be able to continue to use the Airline Fee Credit through December 31, 2021. We will continue to evolve and enhance our Card benefits and services to provide relevant and rich value to our Card Members in the areas they care about most, so stay tuned!

What Will Replace the Airline Credit?

What the new changes will be remains to be seen. American Express has been taking the lead in enhancing “at home” benefits for their cardholders during the COVID-19 pandemic.

These changes include:

Free Calm premium subscriptions for all Amex cardholders
Statement credits for streaming services and mobile phone services
The ability to use travel credits for grocery purchases

Whether the new benefits and statement credits for the American Express Gold Card will follow suit is unknown. This scenario does seem likely, however, given comments by Amex’s CEO, Steve Squeri. In August, Squeri noted that this shift towards at-home benefits and perks was likely to continue once the coronavirus pandemic subsides.

Featured photo by Lemon_and_Milk/ Pixabay

New Citi ThankYou Shop with Points Gas Promotion

by Cory Santos Wednesday October 21, 2020

Last updated on March 8th, 2023

Citi ThankYou points are the popular currency of the Citi ThankYou Rewards program. Now, eligible Citi credit cardholders have more ways to use their rewards, thanks a new Citi Shop with Points promotion.

Citi Shop with Points Gas Savings Promotion Details

According to data from Destination Analysts, approximately 40% of Americans are planning a trip before the end of 2020. Because of the coronavirus pandemic’s impact, many trips will involve hitting the road – with savings on fuel a critical consideration.

Citi’s new Shop with Points promotion allows eligible Citi ThankYou Rewards cardholders to use their points instantly with select gas station partners. ThankYou Rewards cardmembers can instantly Shop with Points at participating Shell, BP, and Amoco stations by redeeming points for $0.50 per gallon, applied for up to $10 towards a gas purchase.

Here’s how to take advantage of the Shop with Points gas savings promotion. Eligible cardmembers (including those with a Citi Prestige® Card, Citi Premier® Card, and Citi Rewards+® Card) on the go can now Shop with Points at the gas pump by:

Visiting a participating Shell, BP, and Amoco fuel station
Swiping an eligible Citi credit card to pay for gas at both self- and full-service stations
If the gas pump screen prompts an offer to redeem ThankYou Points, select “yes” to use points for gas purchases
Confirming the number of points redeemed via the receipt or online at ThankYou.com

“Doubling Down to Provide Additional Avenues for Customers”

The new promotion, launched in partnership with FIS and their Premium Payback network, is Citi’s latest response to recent data showing American consumers turn to rewards points to purchase daily essentials.

Citi is continuing the evolution of its ThankYou Points rewards program to reflect consumers’ changing needs in the current landscape, including introducing a temporary option to use points to pay the minimum due on a credit card.

Citi is hailing the new initiative as providing excellent value for cardmembers:

With the holiday travel season approaching, we are thrilled to offer a new way for cardmembers to redeem rewards on the road. During the last six months, we have seen a noticeable shift in shopping behaviors with consumers focused on "needs" – including essentials such as toiletries, food, and gas. As a result, we are doubling down on our efforts to provide additional avenues for customers to Shop with Points where and when it matters most.

Chris Fred

Managing Director and Head of Proprietary Cards and Loyalty, Citi

Eligible Citi Credit Cards

Not all Citi credit cards earn ThankYou Rewards, however. Eligible Citi credit cards that do qualify include:

ThankYou Points apply towards the following redemption options:

Cash Back: Cash back applies to cash rewards, statement credits, and mortgage and student loan payments for Citi loans.
Gift Cards: Citi rewards apply to gift cards from over 100 leading retailers and brands.
Shopping: Cardholders can use ThankYou points to shop with Amazon, Best Buy, Expedia, PayPal, or 1800flowers.
Charity: Cardholders can also use their points to donate to the American Red Cross or Smile Train.

ThankYou Rewards points also apply to travel bookings through the ThankYou from Citi travel portal. Reservations through the portal can be made for flights, hotels, cruises, and rental cars. Points also apply to select activities. The two premium Citi travel cards, the Citi Premier® Card and the Citi Prestige® Card, offer the best value when booking travel (up to 1.7 cents per point).

Featured photo by Michoko/ Pixabay

Buy Now, Pay Later: Is It Worth It?

by Cory Santos Tuesday October 20, 2020

Last updated on April 2nd, 2024

According to recent data from The Motley Fool, “buy now, pay later” is fast becoming the go-to resource when making purchases online. What is Buy Now, Pay Later and how do these services work? Do they make sense for everyone? Here is what you need to know about buy now, pay later services; how they impact your credit score; and other options available to consider.

What Are Buy Now, Pay Later Services?

Buy now, pay later apps are quickly becoming one of the most popular ways for consumers to finance purchases. These services work as a form of credit where a customer can offset the initial cost for several months – or even years.

When a person opts for a buy now, pay later service and applies, a financing company will pay the consumer’s purchase cost. These companies sometimes require a percentage of the purchase be paid upfront, while others may finance the entire charge.

According to many services, the popularity of buy now, pay later services has exploded in recent years. Apps like QuadPay, Affirm, and others, have seen exponential growth since launching in the early 2010s.

Benefits of Buy Now, Pay Later

One of the most significant benefits of buy now, pay later services is that they typically don’t need credit approval. Because these services conduct a soft pull on your credit report, there is usually no impact to your credit score when applying.

Not having a hard pull is an excellent benefit for people trying to keep hard inquiries to a minimum. This, in turn, can keep your credit score from dropping due to too many inquiries – and it can improve your odds of approval for credit in the short-term.

Another benefit of buy now, pay later is the ease of use the services offer. There are many buy now, pay later apps available – all of which can speed up the checkout process when shopping online. With these apps, you can avoid the need to continually apply for pay later plans, instead using the same app to make any eligible purchases.

Downsides of Pay Later Apps

No Credit Score Boost

The most significant benefit with buy now, pay later services is also its biggest drawback. Having no credit check is great for people who want to minimize their hard inquiries, but it hurts those with a limited credit history – or bad credit.

No credit check means no chance to build credit. If you have a bad credit score, don’t look to buy now and pay later services to rebuild your credit score.

On the other hand, these services can hurt your credit score if you don’t make payments. While on-time payments provide no credit score boost, failure to pay can (and will) be reported to the major credit bureaus (Experian, Equifax, and TransUnion).

Deferred Interest

The other major downside with buy now, pay later apps is the deferred interest they charge. Most of these services come with 0% intro APR – with the provision that the balance (and fees) is paid off within a set period. Failure to meet these obligations results in more significant interest payments than you might expect.

Buy now, pay later services charge what is known as “deferred interest.” This deferment means that failure to pay the entire amount due results in having to pay interest on the initial cost of the purchase – and not the remaining balance.

What Are Better Options to Buy Now, Pay Later Services?

Given the limitations of buy now, pay later services, what other options are available to consumers who want to pay later and build credit simultaneously?

Catalog Cards

Catalog cards are a popular option for people who have low credit and want to offset purchases and build positive credit history at the same time.

A catalog card is a unique type of payment card. With these cards the entire balance is due at the end of the statement period. The benefits of this process are that the cardholder can purchase items online and have the remainder of the current billing period to pay them off – with 0% interest.

There are a variety of catalog cards, including the Fingerhut Card, the Group One Platinum Card, and the Horizon Gold Card. The last two, the Horizon Gold and Group One Platinum, offer a $750 line of credit for use at the Horizon Outlet.

The Horizon Outlet is an online shopping site that offers a wide selection of goods, including:

Women’s and men’s clothing
Children’s clothing
Jewelry
Home goods
Toys

0% Intro APR on Purchases

Another alternative to buy now, pay later services is a credit card with a 0% promotional APR on purchases. These credit cards tend to be for people with good credit or an excellent credit score but provide zero interest for longer than many “pay later” apps.

The Chase Freedom Flex, for example, currently offers 0% intro APR on purchases for 15 months. Another Chase product, the Freedom Unlimited, offers a similar benefit. Other issuers with no-interest periods on purchases include Discover (the Discover It Cash Back), Capital One (the Capital One Quicksilver), and American Express (the Blue Cash Everyday Card).

Featured photo by Nicole de Khors/ Burst

Priority Pass Removing No1 Lounges from Network

by Cory Santos Monday October 19, 2020

Last updated on April 26th, 2023

With the travel industry still reeling from the coronavirus pandemic’s impact, luxury travelers will now have fewer options when it comes to complimentary lounge access. Priority Pass is removing No1 Lounges from its global lounge network, effective immediately.

Priority Pass Removes No1 Lounges

The move by Priority Pass in eliminating No1 Lounges from its global network follows a dispute between the No1 and Collinson, the parent company of Priority Pass. No1 began charging a reservation fee for Priority Pass and LoungeKey (another Collinson property) in April 2019, and Collinson fought back.

What Are No1 Lounges?

No1 Lounges is a leading airport lounge provider in both the United Kingdom and Australia. The company currently offers nine locations in England and Scotland, and another three in Australia. These locations include five in the Greater London area: London Gatwick, London Stanstead, London Luton, and two at Heathrow Airport (Terminal 3 and Terminal 4).

Will the Dispute Be Resolved?

The removal of No1 Lounges is likely an annoyance for international travelers. Given that London is a global transportation hub, the removal of lounge access will impact those flying into Heathrow Terminal 3. Fortunately, the Priority Pass network includes multiple lounges in the UK, likely reducing the overall impact.

Many industry insiders also note that disputes of this nature have often been resolved in time. Whether this case will, however, remains to be seen.

About Priority Pass

Priority Pass is the leading provider of lounge access across the globe. The Priority Pass network includes over 1,300 airport lounges in over 500 cities worldwide.

Priority Pass membership offers free access to lounges (for a set number of visits or unlimited visits) or discounts on lounge access prices. Membership comes in two forms: either purchases through Priority Pass or a complimentary Priority Pass Select membership through a credit card issuer or bank.

Credit Cards That Offer Priority Pass Select

Priority Pass Select is a luxury travel benefit found with a variety of premium credit cards. Some of the most popular luxury credit cards offer a complimentary Priority Pass Select membership, which offers unlimited access to the network. These cards include:

Some co-branded airline and hotel credit cards also provide access to Priority Pass lounges, including:

It’s important to note that, regardless of the credit card type, cardholders must enroll in Priority Pass Select to enjoy their cardholder benefits.

Featured photo by Skitterphoto/ Pixabay

New Study Names Most Trusted Credit Card Companies

by Cory Santos Saturday October 17, 2020

Last updated on March 8th, 2023

According to a recent consumer study by Investor’s Business Daily (IBD), Discover is the most-trusted credit card company in the United States. Discover can celebrate a clean sweep of all six trust categories, beating out competition from American Express, Chase, Capital One, and more. Here are all the findings of the study.

IBD’s 25 Most Trusted Financial Companies

The 25 Most Trusted Financial Companies is a study by Investor’s Business Daily and TechnoMetrica Market Intelligence. The report surveyed thousands of consumers to provide honest feedback on their trust in various American companies.

Credit card issuers are a central focal point in the survey, with lenders judged on six trust categories:

Privacy
Quality
Ethics
Price
Customer Service
Customer Treatment

Discover Tops the List

As noted, Discover came out on top in the study. The issuer won all the trust categories, beating out competition from American Express and Chase, who finished second and third, respectively. Discover was most dominant when it came to pricing and fees, with a score of 84.8 out of 100. The next closest competitor in that category, Capital One, managed 66.4. American Express finished third at 64.4. Overall, Discover earned a trust rating of 91.6 from those surveyed, with Amex receiving a score of 86.2, and Chase a score of 78.4.

Here is the official data for the top three most trustworthy card issuers:

Other card issuers making the list include Citibank, Bank of America, and Wells Fargo. Capital One came fourth overall, followed by Bank of America (fifth), Citibank (sixth), and Wells Fargo (seventh).

Fair Prices Are a Big Consumer Concern

Investor’s Business Daily attributes Discover’s success in the survey to their uncomplicated fee structure. The study notes that “consumers want a credit card issuer that has a simple fee structure and isn’t going to charge them every time they make a mistake.” This finding is backed up by study respondents:

"I rated them highly due to their cash-back rewards program, and if I lose my card, they ship me another card that arrives the next day. Their incentives program and their customer service are what separates them from the other credit card companies."

Matthew Coatney

Discover Cardholder

About Investor’s Business Daily

Investor’s Business Daily (also known as IBD) is a Los Angeles-based newspaper and website that provides extensive coverage of the stock market and international markets, business, finance, and commerce. IBD is also known for its “IBD 50,” a weekly stock market benchmark that it releases every Monday.

Featured photo by Geralt / Pixabay

New Light-Up Razer Card Announced

by Cory Santos Thursday October 15, 2020

Last updated on January 2nd, 2024

Popular gaming peripheral brand, Razer, has a new prepaid credit card for those who want to earn points in Razer’s loyalty program. The new light-up prepaid card (yes, it lights up) is currently in its beta stage. That said, here’s what we know about the hotly anticipated Razer light-up Visa prepaid card.

Earn Razer Rewards with Every Purchase

The Razer Card is a prepaid Visa card. Like the Apple Card, Razer sees its new card as an innovative way for loyal gamers to pay for purchases through their in-house e-wallet, Razer Pay. However, unlike the Apple Card, the Razer Card is a prepaid card – and not an unsecured credit card.

According to Razer, one of the leading gaming accessory merchants, customers will earn Razer Rewards, with the chance to get “up to $2,000 worth of Razer gear and free card upgrades.” Initially, beta users in Singapore and Malaysia earn 1% back on all purchases, but the final rewards structure may not yet be finalized.

A Light Up Razer Card

The real talking point with this new product is the LED component that illuminates every time a cardholder makes a contactless purchase. The LED, which is in the shape of the Razer company logo, illuminates in its trademark green hue.

The tech brand hopes its new card will gain the same traction as the Apple Card. Regardless, it will likely be a massive hit with gamers thanks to its uniquely Razer-inspired design. Exactly when the beta testing phase completes is currently unknown. The testing process is only open to the first 1,337 people in Singapore and Malaysia – where the Razer Pay service is also available.

About Razer

Razer Inc. is a multinational technology company that designs, develops, and sells consumer electronics, financial services, and gaming hardware. The company has offices in both Singapore and Irvine, California.

Featured image by Zany Jadraque on Unsplash

Understanding Credit Card Mail Offers

by Cory Santos Wednesday October 14, 2020

Last updated on October 12th, 2023

Seeing “you’re pre-approved” for a credit card in the mail can be exciting – especially if you have less-than-perfect credit. But what does a pre-approval mail offer actually mean? Let’s dive into credit card mail offers, their language, and how credit card issuers offer pre-approvals.

What Does A Credit Card Mail Offer Mean?

A credit card mail offer is a direct marketing initiative by issuers, financial services companies, and banks. Often called “pre-sorted” or “pre-approved,” these offers are sent to consumers by mail and typically come in letters or brochures. These credit card mail offers fall into one of three categories:

Invitation to Apply: An invitation to apply is a bank’s basic mail offer. Banks and lenders issue these offers based on broad demographic information, such as your location, housing status, or income. Invitations to apply are essentially advertisements from banks, and as such, the approval rate for these mail offers is significantly lower than others.
Pre-selected: Lenders pre-select consumers based on information in their credit reports. However, these pre-selected offers are much broader than pre-approval offers, meaning the bank requires more information before approving a credit card application. Pre-selection mail offers rely on basic credit information, such as a person’s credit score.
Pre-approved: Receiving a pre-approval mail offer from a bank or credit card issuer is the closest thing to guaranteed approval. A pre-approval letter means the bank has conducted a basic review of a person’s credit report and the information they have means the letter recipient makes a good match for one of their credit cards.

According to previous data from Experian, American consumers receive over three billion (3,000,000,000) credit card mail offers each year, with two billion being invitations to apply, or ITAs. Pre-selected and pre-approved offers account for a little over one billion more, highlighting how many credit card offers flood mailboxes nationwide. And, despite an ever-increasing number of targeted credit card offers, application rates for these offers continue to decline, with an average application rate of around 49% from these mail offers.

How Do Banks Get Your Credit Report Info?

Where do banks, card issuers, and other financial services companies get their information for pre-sorted mail offer?
Credit bureaus	Many lenders often obtain basic credit information from the three major credit reporting agencies (Equifax, Experian, and TransUnion). This data and information includes your credit score, credit history, overall outstanding debts, and total credit inquiries. Remember that this information will not impact your credit score unless you submit a full application and consent to having your full credit report pulled.
Market reserach	Marketing firms and data collection agencies are one of the largest suppliers of pre-sorted credit information to banks, issuers, and other financial services firms. Lenders purchase marketing lists, called "selection criteria" from data brokers that contain demographic and behavioral information about consumers, like credit scores, geographic location, bankruptcy history, and more.
Public records	Lenders may source public records for data to select potential applicants for their products. These lenders They access records on things like property records and legal judgments, to get additional insights into your financial health.

Many credit card issuers purchase basic credit information from the three major credit bureaus (Equifax, Experian, and TransUnion). The thought of banks buying your information might sound alarming – but it isn’t as invasive as it sounds. Banks purchase the same basic credit information available to consumers through free credit monitoring tools, such as Credit Karma, Capital One Creditwise, or American Express MyCredit Guide. This info omits major credit report information only available when a person applies for a credit card, instead offering issuers a glimpse at the individual’s suitability for card products.

How Likely Are You to Be Approved for a Mail Offer for a Credit Card?

As mentioned, pre-sorted credit card offers are essentially an invitation to apply for a credit card and little else. Sure, you have better approval odds, thanks to the pre-screen credit info provided to the issuing lender. However, what chances do you have when actually applying for these cards? That depends on the offer type:

Pre-approved Offers: The approval rate for pre-approved or prequalified offers is high – around 90% success. This high approval rate is due to the lender receiving basic credit information and determining that you are a good fit for their product.
Preselected Offers: Pre-selected offers are made based on your credit history but don’t provide all the data to offer a pre-approval. Still, there is a 70% success rate with these offers for applicants.
Invitation to Apply: You might think receiving an invitation to apply would mean you are a shoo-in for the product, but you’d be wrong. Data shows that only around a 10% to 30% success rate is largely due to the minimal, basic info lenders use to reach these offers.

What to Do Before Responding to a Credit Card Mail Offering

Before responding to or accepting a mail offer for a credit card, there are essential steps to be aware of. These include:

Read the Terms and Conditions

Checking the fine print is essential to ensuring a pre-selected or pre-approval mail offer is a good deal for you. Reading the fine print on any credit card offer can help you fully understand the rates and fees associated with opening an account. For example, if the card is a secured credit card, what is the minimum deposit required to open an account? Does the security deposit earn interest? Is there a route towards an unsecured line of credit, including doubling of the credit line after making a certain number of payments or graduation to an unsecured card?

Beyond any single credit card type, the terms and conditions will inform you about any additional fees you might be responsible for with the card. The terms explain the grace period, during which you can pay your balance in full without incurring interest. They also specify how interest is calculated. Understanding these details helps you manage your payments effectively. Additionally, these terms detail additional ways your credit card can be used, such as conducting cash advances, balance transfers, or limitations on types of merchants or geographic restrictions when making purchases.

Check the APR

Checking the interest rate is also essential. The Truth in Lending Act requires credit card issuers to fully disclose credit card information in a standardized way to avoid confusion about the rates and fees associated with a card offer. A general rule of thumb is that the better the credit score, the lower the APR. It’s best not to let a card offer entice you to apply if you plan to carry a balance – but the interest rate charged on that balance is sky-high. It’s also worth noting that your APR might not be at its highest if you are pre-selected for a secured credit card. Secured cards feature slightly lower interest rates than other subprime cards because of the security deposit requirement, which acts as collateral in case of default.

What to Do If You Decide Not to Apply

If the mail offer isn’t worth applying for, destroy the letter, as it may contain sensitive personal information. The simplest way to dispose of an offer for a credit card is to shred the physical mail offer. Tearing up or shredding the offer will make it more difficult for thieves to steal personal credit information. There may be several reasons to walk away and pass on a credit card mail offer, including:

If you plan on carrying a significant balance on a new card, which would limit the value of a balance transfer offer
The bonus reward categories don’t mesh with your personal spending habits
A welcome offer is lower than you’ve seen in the past
If you want to ensure you are keeping your finances under control and don’t need a new credit card
The card’s features aren’t worth the annual fee – even with the sign-up bonus and other perks

Can You Stop Nuisance Credit Card Mailer Offers?

If pre-sorted and pre-approved credit card offers are becoming a headache, don’t worry – opting out of future mail offers is easy. The major credit bureaus (including Innovis, another credit agency) offer an opt-out service through OptOutPrescreen.com. Signing up on this website removes a person’s name from a list of pre-screening consumers the agencies sell. Opting out is also available by calling 1-888-5-OPTOUT. You can also opt out of pre-sorted offers permanently by downloading, completing, and mailing a signed “Permanent Opt-Out Election” form, available through the same avenues previously mentioned.

If you opt-out, your name will no longer appear on lists provided by credit reporting companies. However, card issuers can still solicit and send you offers if they’ve done business with you or get your name from other sources. This removal may help limit your exposure to data theft or ID fraud, should your information somehow be compromised. Note that opting out of mail offers will not necessarily improve your credit.

Related Article: How to Prepare Before Applying for a Credit Card