Gen X Sets Goals To Pay Off Credit Card Debt

by Jeannyn Gomez
Gen X Sets Goals To Pay Off Credit Card Debt

A new report from New York Life details Americans’ outlooks on their finances in the face of inflation and recession anxieties. Among their findings, they establish the truths about Gen Xers financial wellness, who are setting goals to pay off credit card debt and more.

Is Gen X Worried About Financial Health?

The average credit card debt for Gen Xers is $7,004, according to a new report from New York Life. It’s no surprise Gen X is setting goals to pay off credit card debt. However, uncertainty lingers as credit card interest rates have risen significantly over the last 12 months. The New York Life survey poll was conducted between December 17 and December 30, 2022. It was done among a national sample of 4,410 adults.

They found 66% of Americans feel confident in reaching their financial goal in 2023. In general, Americans are (33%) hopeful and (31%) stressed about their future finances. As per the survey, inflation tops the reason for Americans’ main financial concerns (68% of adults). In addition, 36% of the adults surveyed also see inflation as a cause of their financial worries and 29% of adults worry about the rising interest.

Additionally, 1 in 3 Americans feels hopeful about their finances at the end of 2022 going into 2023. In contrast, the confidence significantly differs by gender. The survey uncovered women and Gen Xers are feeling less optimistic about their finances. The reasoning behind this lesser positive outlook is because of the lower average amount of savings and overall feeling less assured. When it comes to retiring, 44% of women and 45% of Gen Xers feel less prepared in comparison to other demographics. When it comes to credit card debt, Gen Xers and Baby Boomers owe slightly more than the younger generations.

Gen X Financial Goals for 2023

“While financial health and confidence for Americans may differ for myriad factors, it’s worth noting that women and Gen Xers, or those within the “Sandwich Generation,” are likely parent-caregivers, handling both parent or guardian and unpaid adult caregiving roles, often leading to greater levels of stress,” said Suzanne Schmitt, Head of Financial Wellness at New York Life. “Of the 53 million Americans serving as caregivers, 61% of them are women as reported by AARP in 2020 and their financial needs and priorities, including saving, investing, and protection, require a relevant strategy to adequately support those distinct needs. This may include working with a trusted financial professional to understand those priorities, address barriers to equitable financial wellbeing, and to help improve confidence despite market uncertainty.” Source.

It’s easy to see how Gen X may be facing distinctive life challenges amid striving for financial wellness. According to the survey, over half of Gen Xers don’t have a retirement strategy or savings. However, for 2023 they have plans to tackle debt, build an emergency fund, and plan for retirement.

Although 3 in 10 (35%) Gen Xers do not have a financial strategy, the remainder 7 in 10 are goal focused on finances in 2023. The Gen X strategy point of attack starts with 45% of them looking to build an emergency fund, 44% wanting to be on track to retire at their desired age, and 40% focused on paying off credit card debt.

“Gen X Focused On Building a Strong Financial Foundation”

“Gen X is focused on building a strong financial foundation, which includes paying down high-interest debt and protecting against financial shocks,” said Schmitt. “Borrowers often tap credit cards to help cover income gaps or emergencies. Stress about debt and financial stability may impact an individual’s health and productivity, which could cause a ripple effect. A well-rounded financial strategy, including professional support, can help address relevant needs and improve financial health goals.” Source.

Related Article: Fight Inflation with Cash Back Credit Cards

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Amex Launches Cash Flow Management Hub For Small Businesses

by Jeannyn Gomez
Amex Launches Cash Flow Management Hub For Small Businesses

American Express has launched a new cash flow management hub for small businesses. It’s been created to provide a powerful financial tool for small businesses that can help manage their cash flow, time, and more. Here’s everything you need to know about the new American Express Business Blueprint™.

Amex Cash Flow Tools for Small Businesses

American Express has long been supporting businesses through its business products and programs and continues to expand its support with the launch of its new digital cash-flow management hub, American Express Business Blueprint™. It’s designed exclusively for small businesses and comes with features to help people manage their businesses.

In 2020 American Express acquired Kabbage, a fintech company that helps fund small businesses through an automated lending platform. The American Express Business Blueprint™ builds on the Kabbage platform which is fully integrated into the suite for Amex business products. It serves the purpose to help make financial decisions more confidently. Best of all the new financial hub is free for small businesses.

The new Business Blueprint™ features include the following:

  • Cash flow insights
  • Digital financial products
  • Reach and management of Business Cards (like a business line of credit)

Amex Survey Findings

If you’ve been living under a rock, then you may not be aware that American Express is the number one business card issuer in the U.S. They are also a global financial service provider for businesses of all sizes. With that said, Amex has recently surveyed 1,100 small businesses. Their findings:

  • 82% of respondents said a cash flow management hub would save them time in running their business
  • 72% said the hub would lead to improved efficiency
  • 50% said the hub would lead to improved profitability

In addition, the American Express Business Blueprint™ is designed to also pair products with daily tasks small businesses engage with in managing cash flow. For example, taking a loan, paying bills and vendors, and much more. Other daily tasks Business Blueprint™ can help manage, include the following:

  • Sending wires
  • Checking account balances
  • Make mobile check deposits
  • Accept card payments

The New Embedded Feature for Businesses

Furthermore, the American Express Business Blueprint™ has an embedded My Insights feature. With My Insights, small businesses will have access to customized charts and graphs which can help paint a better picture of cash flow. Additionally, small businesses will receive personalized data based on select business products and accounts, and an overview of monthly spending. How does the My Insights feature help businesses?

  • Manage cash flow
  • Anticipate cash flow fluctuations
  • Plan for future cash flow gaps

“My perception of American Express has greatly expanded from a card company to a true partner that offers products that help me with the tasks needed to run my business,” said Julie Matzen, an American Express customer and CEO of Team MayDay, a digital advertising agency. “With American Express Business Blueprint, I save so much time from having to log in to different products and tools but instead can access my American Express Business Cards, line of credit, and data from one place.” source.

Within Business Blueprint clients will have access to various Amex digital products such as:

About American Express

American Express is a globally integrated payments company, that provides customers with access to products, insights, and experiences that enrich lives and build business success.

 

Related Article: Amex and Delta Announce TakeOff15 Benefit

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Capital One Launching Venture X Business Card

by Cory Santos
Capital One Venture X Business Card coming soon

The Capital One Spark Travel Elite credit card is transitioning to the Venture X branding. The exclusive business travel rewards card from Capital One will change names this week but isn’t available to just anyone. Here’s what we know about the upcoming Venture X Business Card:

Capital One Transitioning Spark Travel Elite to Venture X

Capital One is now rolling out a business version of its popular Venture X rewards credit card. The Capital One Spark Travel Elite Card is rebranding as the new Capital One Venture X Business Card, with the change expected sometime this week.

Here is what is known about the new Capital One Venture X Business Rewards Card:

  • Earn unlimited 10X miles on hotels and rental cars booked through Capital One Travel
  • Earn 5X miles on flights booked through Capital One Travel
  • Earn unlimited 2X miles on all other purchases.

The welcome bonus offer with the Venture X Business Card will be the same as the Spark Travel Elite. New cardholders can earn 50,000 miles after spending $10,000 on purchases in the first three months and 200,000 miles after spending $50,000 on purchases in the first six months of card membership.

The rewards with Venture X are designed to make maximum use of the bank’s new travel portal, Capital One Travel. Powered by the Canada-based travel website Hopper, Capital One Travel proactively checks Expedia, Travelocity, and more and gives you the best price.

The Venture X Business Card will feature an annual fee of $395, with complimentary employee cards. Companies can set customized spending limits for employee cards and see transactions as soon as they post.

No Preset Spending Limits

Like the recently launched Capital One Spark Cash Plus, the Venture X Business Card will not have an APR, operating much like a charge card. Unlike traditional business cards, the card will not offer a preset spending limit. The card adapts to a company’s needs based on spending behavior, payment history, and credit profile.

Because the card has no spending limit, it also features no set APR on purchases. With no APR, the full balance on the card is due every month. If the entire balance is not paid, businesses are charged a 2.99% monthly late fee for the unpaid balance.

Capital One Relationship Manager Required

Interestingly, the new Capital One Venture X Business Card will not be available to anyone. Instead, the card will only be open to those companies through their Capital One Relationship Manager. Relationship Managers are a liaison between the company and Capital One Bank, helping to arrange accounts, loans, and other credit products.

Related Article: Capital One Launching ‘Premier Collection’ Hotels

Featured image by Capital One

Amex and Delta Announce TakeOff15 Benefit

by Cory Santos
Delta SkyMiles Welcome Offer and TAKEoFF15 BENEFIT

American Express and Delta Air Lines have launched a new, permanent benefit for their co-branded credit cards. The new feature, called “TakeOff 15”, provides 15% off when using miles to book Award Travel on Delta flights through Delta.

Delta and Amex Launch TakeOff15 Benefit

Delta Air Lines® and American Express® have an exclusive new feature for their co-branded credit cards. The companies announced a new, permanent benefit called TakeOff 15 earlier this month. The new perk is available to Delta SkyMiles® Gold, Platinum, and Reserve Consumer and Business American Express® Card Members. Card Members can now get 15% off when using miles to book Award Travel on Delta flights through Delta.com and the Fly Delta app. Please note that this discount does not apply to partner-operated flights or to taxes and fees.

Limited-time Bonus Offers

The new TakeOff 15 perk is just the start of good news for Amex Delta cardmembers. American Express is rolling out a series of impressive, limited-time welcome bonuses for new Card Members who apply and are approved between February 2, 2023, and March 29, 2023:

“Now You Can Go Even Further”

“Delta Card Members love using their Cards to earn miles they can put towards future trips and the great experience they get when flying Delta,” said Jon Gantman, Senior Vice President and General Manager, Co-brand Product Management at American Express in a press release. “Now, you can go even further with your miles and get the best of the SkyMiles program with your Card.”

“Our Delta SkyMiles American Express Card Members are some of our most loyal customers, and we want to continue to give them opportunities to travel the world more easily,” said Prashant Sharma, Vice President of Loyalty at Delta. “We’re grateful to have a partner like American Express who shares our vision and passion for delivering ingenuity and excellence to our customers.”

Related Article: Cardless & Simon Malls Launch Rewards Card

Featured image by American Express

Chase Sapphire Offers Alterra Mountain Discounts

by Cory Santos

Last updated on February 2nd, 2024

Chase Sapphire has unveiled new perks with Alterra Mountain Company. Sapphire Reserve and Preferred cardmembers can purchase discounted lift tickets through Chase Ultimate Rewards at more than a dozen North American mountain destinations. They’ll also have access to exclusive Sapphire Lounge pop-ups throughout this skiing season. Here is everything you need to know:

Chase Sapphire and Alterra Mountain Company Offers Exclusive Discounts

Chase is always looking for new ways to give Sapphire card members greater value. Chase Sapphire cardmembers can purchase discounted tickets and visit dedicated pop-up lounges featuring complimentary food, exclusive mountain experiences, and other perks at 13 resorts across the United States.

Lift Tickets

Chase Sapphire Preferred and Chase Sapphire Reserve cardmembers can purchase discounted lift tickets through Chase Ultimate Rewards at 13 North American mountain destinations. Purchase must be made in advance. Once purchased, cardmembers will receive a voucher code and can redeem it for a day of their choice at the ticket window. It may take up to five business days to recieve your voucher.

 Participating resorts: Big Bear Mountain Resort (CA), Blue Mountain (CAN), Crystal Mountain Resort (WA), Deer Valley Resort (UT), Mammoth Mountain (CA), Palisades Tahoe (CA), Snowshoe Mountain (WV), Solitude Mountain (UT), Steamboat Resort (CO), Stratton Mountain Resort (VT), Sugarbush Resort (VT), Tremblant Resort (CAN), Winter Park Resort (CO)

 Sapphire Sundays

Sapphire cardmembers also enjoy special Sunday savings, thanks to their card membership. Simply show your Sapphire Reserve or Preferred card to redeem discount drink offers at the following participating restaurant locations.

  • Après Drinks:
    • 10 % off at Hawks 52 at Big Bear Mountain Resort, Plaza Bar and Alpine Bar at Palisades Tahoe, Plaza Bar and Alpine Bar at Palisades Tahoe, or Al Dente Ristorante at Snowshoe
    • 10 %off “Happy Hour” drinks at Tusks Bar at Mammoth Mountain
    • $4 select draft beers and $6 well drinks at Detailer Bar at Winter Park
  • Hot Chocolate:
    • 10% off at Deer Valley Etc. Etc. at Deer Valley Resort, St Bernard’s at Solitude, Sunbowl Base Lodge at Stratton, GateHouse Cafeteria at Sugarbush, and Gondola Joe’s in Steamboat Square at Steamboat Resort.
    • 15% off Rafters at Crystal Mountain

Sapphire Lounge Pop-Ups

Cardmembers and a guest can also recharge between runs with complimentary bites, phone chargers, giveaways, and more at a Sapphire Lounge at participating locations.

  • Stratton Mountain Resort – February 3-5 and 10-12
    • Additional perks include complimentary waxes, beer tastings from local breweries, and snow tubing for the first 40 people who sign up daily.
  • Steamboat Ski Resort – February 24-26 and March 3-5
    • Additional perks include complimentary waxes, complimentary First Tracks on Saturday and Sunday mornings to the first 40 cardmembers to sign up in the Sapphire Lounge, complimentary drink tickets to Timber & Torch (limit 1 per cardmember, 100 tickets available), and vending machine with complimentary prizes for Sapphire Reserve and Preferred cardmembers in the base area.
  • Big Bear Mountain Resort – March 10-12 and 17-19
    • Additional perks include complimentary waxes and complimentary night skiing for the first 40 cardmembers who sign up in the Sapphire Lounge.
  • Palisades Tahoe – March 24-26 and March 31-April 2
    • Additional perks include complimentary waxes and complimentary access to the NASTAR racecourse throughout the weekend.

Related Article: New Peloton Points Accelerator for Chase Sapphire

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Can Children Become Authorized Credit Card Users?

by Jeannyn Gomez
Can Children Become Authorized Credit Card Users

Last updated on August 23rd, 2023

If you are a parent, you may have given your child’s future plenty of thought, including their future finances. Well, what if your child could benefit from your excellent credit? It is possible. Adding your kids as authorized credit card users can have positive effects on their future and also negative ones. So can children become authorized credit card users? Here’s what you need to know.

Can Children Become Authorized Credit Card Users?

The internet holds many answers, and you may have seen a few on social media with claims stating you can add your 6-year-old child as an authorized credit card user. While such statements may not be entirely accurate, they hold some truths. Here’s how your child can become an authorized user on your credit card account.

Do Banks Allow Kids as Authorized Credit Cards Users?

To begin with, not all banks allow children to be authorized users on an adult’s credit card. Different banks have different policies and age restrictions that may or may not forbid minors from becoming authorized users of a credit card account. If you have considered adding your child as an authorized credit card user, we advise you to contact your card issuer (bank) directly to confirm their age policy.

It is essential to know there is no universal law or policy that banks need to follow when it comes to age restrictions on authorized credit cardholders. It varies by bank issuers. However, to qualify for a credit account in your name, you must be 18 or older. U.S. Bank, for example, requires an authorized user to be at least 13 years of age. The minimum age for Discover Bank is 15. Additionally, Discover Bank reports all authorized user activity to credit bureaus.

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.

Related Article: The Best Allowance Apps for Kids

The Benefits of Adding Your Child as An Authorized User

Along with the internet rumors about adding your 6-year-old as an authorized credit card user, there are multiple claims about its positive impact. Most all surrounding the topic of building your child a positive credit history so that once they turn 18, they can have a better advantage to qualify for good-rate loans and more. The benefits of adding your child as an authorized credit card user include the following:

  • Building a positive credit for your kids
  • Educational opportunity to teach your kids about finances
  • Maximize your credit card rewards by earning extra

The benefits above are good reasons to add your child as an authorized user on your credit card. If you’re in it only to affect your child’s future credit history, then be aware that not all banks will report a minor’s authorized user account to the credit bureaus. For example, Chase Bank does not declare the credit history of children who are authorized credit card users. In contrast, Wells Fargo does not have a universal age restriction for authorized users. Additionally, Wells Fargo reports all authorized credit card user information to the credit bureaus (according to USA Today).

In addition, adding your kids as authorized users on your credit card can be an educational opportunity. Use it to give your children a hands-on experience to teach them about finances. It’s a great way to teach children how to budget and save money in conjunction with healthy financial habits and financial responsibility. Lastly, maximize your credit card rewards when you add your child as an authorized user. As the primary holder, you will earn credit card rewards for your child’s credit card purchases.

Best Age To Add a Child as an Authorized User

According to Andrea Clark, owner of The Table Financial Planning and an advisor bureau member of the National Association of Personal Financial Advisors, the teen years are best to add your child as an authorized user (source). Furthermore, adding your child as an authorized user can also harm their credit if you factor in late payments, bankruptcy, etc. There is no need to begin your kid’s credit journey at the age of 6. Instead, opt to start between the ages of 13 to 15, which is enough time to establish a good credit history on your child’s report.

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

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Fight Inflation with Cash Back Credit Cards

by Cory Santos
fight-inflation-with-cash-back-credit-cards

Last updated on September 19th, 2023

2022 is fast shaping to be the year of inflation and stretched budgets. However, consider applying for a cash back credit card before you finalize your yearly budget and financial plan. Here’s why cash back credit cards just might be inflation-proof:

This post may contain links from partner offers, and we may receive compensation when you click on links to these offers. Please see our advertiser and editorial disclosures above for more information. Citi is an advertising partner.

How Bad is Inflation?

Inflation in the United States is currently at 40-year highs not seen since the gas crisis in the 1970s. According to the U.S. Bureau of Labor Statistics, the inflation rate, which considers consumer prices for everything from groceries to gas, reached 8.3% in April. That compares with 8.5% the previous month and 4.2 percent in April 2021. Before the pandemic, in April 2019, the inflation rate sat at 2.1 percent.

For better visualization, here’s a chart showcasing the 12-month price change for several key consumer goods and services:

Category 12-month % change
Groceries 8.5
Restaurants 8
Gas stations 48
Clothing 6.8
Medical care 2.8
Airfare 23.6

Source: US Bureau of Labor

What’s the root cause of all that inflation? Well, the sharp rises in the prices of consumer goods can be traced to several factors, with the two most significant being the economic recovery from the coronavirus pandemic and the ongoing war in Ukraine.

The Federal Reserve’s Federal Open Market Committee (FOMC) kept interest rates artificially low for more than two years due to the shutdowns and economic hardships caused by COVID-19. While that low rate was great for consumers, it hit banks hard.

The FOMC began raising interest rates earlier this year, with more hikes expected to come later in 2022. All told, federal borrowing rates have risen 75 base points (or 0.75% when converted to an interest rate for borrowers).

A logistical logjam caused by COVID shutdowns and the Ukraine crisis is exacerbating the issue. The war in Ukraine has seen gas and oil prices skyrocket in recent months, with concerns about global food shortages continuing to grow.

“The invasion of Ukraine by Russia is causing tremendous human and economic hardship. The implications for the U.S. economy are highly uncertain,” the FOMC said in a statement in early May. “The invasion and related events are creating additional upward pressure on inflation and are likely to weigh on economic activity.”

Fight Inflation with Cash Back Credit Cards

Inflation is the word on every American’s tongue in 2022. While wages continue to rise, they are being outpaced by run-away inflation, reaching 7.5% in 2021 and now well over 8.5% in 2022. Because of this rising cost of living, many Americans are unsure where to turn to help save money and stretch their budgets.

One popular inflation-busting idea is to get a cash back credit card. Cash back is one of the simplest (and most valuable) credit card rewards because it can help you:

  • Pay down your card statement balance
  • Make deposits into checking or savings accounts
  • Use the rewards to purchase gift cards, products, or other services

Cash back might not be as sexy as travel rewards points, such as with premium cards like the Chase Sapphire Reserve, Amex Platinum, or Capital One Venture X. Still, they provide everyday value people can rely on – and often come with a low annual fee or no annual fee at all.

What to Look for in a Cash Back Credit Card

When selecting a cash back credit card, consider several things before applying:

Type of Cash Back

Cash back credit cards typically fall into three categories: set categories earn enhanced cash back, unlimited cash back, or rotating categories earn enhanced cash back rewards.

Set Category Cash Back

The first category is the most basic, offering accelerated rewards in set key categories. Cards in this category include options like the  Amazon Prime Rewards Visa Signature from Chase and the Blue Cash Everyday® Card from American Express.

Unlimited Cash Back

The second category offers unlimited cash back for every eligible purchase at a set rate. Typically, these cards offer cash back at a rate between 1% and 2% back on every purchase, with key cards in this category including the  Citi® Double Cash Card from Citibank, the Freedom Unlimited from Chase, and the  Amex Cash Magnet® Card.

The main benefit of an unlimited cash back card is the ability to earn a set rate on all purchases, with very few exceptions. Over a year, a cardholder using an unlimited cash back card, like the Double Cash, can potentially save significantly more money than someone using a basic, set category rewards card.

However, not all purchases earn cash back. Some transactions do not qualify for rewards. These transactions include:

Balance transfers Card account checks Unauthorized or fraudulent transactions
Cash advances Returns for credit Traveler’s cheques or foreign currency purchases
Lottery tickets Money orders or wire transfers Reloading of a prepaid debit or gift cards
Card fees, late fees, or finance charges

Here’s how the Double Cash, one of the most lucrative unlimited cashback cards, compares with the Custom Cash – a rotating cash back sibling:

Citi Custom Cash℠ Card Citi® Double Cash Card
Cash back rewards 5% on top eligible spend category per billing cycle (up to $500) and 1% on all other purchases 2% cash back on all purchases (1% when you buy, 1% when you pay your bill)
Introductory APR offer 0% introductory APR on purchases and balance transfers for 15 months 0% introductory APR on balance transfers for 18 months
Sign-up bonus $200 cash back after spending $750 on purchases in the first 3 months of account opening N/A
Foreign transaction fee 3%
Annual fee No annual fee

Rotating Cash Back

Have you seen a credit card advertising 5% cash back on purchases? If so, you’ve probably encountered a rotating category rewards card. Rotating rewards credit cards offer cash back on categories that change as often as every month but usually once every quarter.

Cards like the Discover It and Chase Freedom Flex are the most well-known offers in this space, providing 5% cash back on the first $1,500 in quarterly spending. Cardholders activate their spending categories each quarter and then plan their shopping expenses around those categories to maximize rewards.

Another type of rotating cash back is seen with cards like the Citi Custom Cash℠ Card. Instead of rotating quarterly categories, the Custom Cash earns 5% on eligible purchases in the top spending category each month; options include transit, travel, gas, groceries, dining, and more.

Determining how you spend is essential to finding the right rotating cash back card for you. Opt for a card like the Custom Cash if you spend on niche categories like home furniture one month and then live entertainment the next Are you more casual with your spending and want broad, quarterly categories? If so, a card like the Freedom Flex may make more sense.

Here is a breakdown of three leading rotating cash back cards:

Citi Custom Cash℠ Chase Freedom Flex Discover It
Annual fee $0 $0 $0
Rewards Earn 5% on purchases on your highest eligible spend category each billing cycle up to $500 spent Earn 5% on up to $1,500 on combined purchases in bonus categories each quarter you activate Earn 5% on up to $1,500 on combined purchases in bonus categories each quarter you activate
Intro APR 0% intro APR for 15 months from account opening on purchases and balance transfers 0% Intro APR for 15 months from account opening on purchases and balance transfers 0% intro APR for 15 months from account opening on purchases and balance transfers

Annual Fee

Many cash back credit cards charge no annual fee. Some, like the Savor from Capital One or the Blue Cash Preferred from American Express, however, feature annual fees of up to $95. You’ll get accelerated cash back of 6% or higher for this fee. Still, these categories are limited – meaning you’ll need to spend heavily to offset the annual fee.

Does the Card Offer 0% intro APR?

A credit card with 0% intro APR is always a welcome treat. No interest charges are an excellent welcome bonus on some cash back credit cards. These promotional periods apply to purchases, balance transfers, or both.

For example, Citi offers two cash back rewards credit cards with lengthy intro APR periods. Both the Citi Custom Cash and Double Cash Card provide 0% intro APR, though on what – and for how long – differs between the cards.

The Custom Cash Card comes with 0% intro APR for 15 months on purchases and balance transfers. These intro APR periods are on par with rival cards from Chase – namely the Freedom Flex and the Freedom Unlimited. On the other hand, the Double Cash offers 18 months of introductory APR on balance transfers.

Conclusion

Inflation seems here to stay – at least in the medium-term. Because families are being forced to adjust budgets and squeeze every penny, a cash back credit card makes sense with responsible use. Before you apply, however, make sure you research all aspects of potential rewards cards before applying. And if you need some suggestions, check out our helpful “Best of” guides below.

Find Your Best Card with Our Helpful Guides

The Best Cash Back Credit Cards for 2020
The Best Cash Back Credit Cards

There are plenty of cash back rewards credit cards out there. We’ve narrowed them down and found the very best cash back credit cards for you

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Fed Raises Prime Rate to 7.75% for February 2023

by Cory Santos
Fed Raises Prime Rate to 7.75

Last updated on January 29th, 2024

The Federal Reserve has raised interest rates for the first time this year. The latest rate hike means higher borrowing costs, so consumers and businesses can expect to pay more for car loans, mortgages, and credit card balances.

FOMC Raises Federal Funds Rate by 25 Points in February 2023

The Federal Reserve’s Federal Open Market Committee (FOMC) met Wednesday and raised interest rates for the first time in 2023. The FOMC agreed to raise the target borrowing rate by 25 base points – or a quarter-percentage point – to try and control rampant inflation. This is the sixth Prime Rate increase since January of last year.

Wednesday’s 25 base points rate hike follows news that suggests inflation may be slowing down as the global economy slowly recovers from the pandemic and war in Ukraine. The current Prime Rate, based on the federal funds rate set by the Federal Reserve, currently sits at 7.75%. That increases the FOMC’s target range of 4.5% to 4.75%, its highest rate since late 2007.

Inflation Continues to Hit Finances Hard

News of the rate hike will hit consumers hard. Americans are struggling with soaring grocery store costs, despite lowering fuel prices in recent months. Those hardships continue thanks to the war in Europe and continued COVID outbreaks in China.

“Recent indicators point to modest growth in spending and production. Job gains have been robust in recent months, and the unemployment rate has remained low,” the FOMC said in a statement. “Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures.

“Russia’s war against Ukraine is causing tremendous human and economic hardship. The war and related events contribute to upward pressure on inflation and are weighing on global economic activity. The Committee is highly attentive to inflation risks.”

Related Article: What Is the Average Credit Card APR?

Featured image by DestinationFearFan/CC BY-SA 4.0

New Peloton Points Accelerator for Chase Sapphire

by Cory Santos
Chase Sapphire refreshed points accelerator Peloton

Last updated on February 2nd, 2024

Chase Sapphire now offers even more rewards with Peloton, thanks to a refreshed points accelerator for both Reserve and Preferred cardmembers. Effective February 1, 2023, and running through the end of March, eligible Chase Sapphire cardmembers earn up to 10X on Peloton equipment and accessory purchases over $250.

Chase Sapphire Adds New Peloton Offer

Chase and Peloton joined into a partnership in late 2020. This partnership sees eligible Chase Sapphire cardmembers earn even more Ultimate Rewards points when making purchases through Peloton. These perks included Peloton Digital Membership credits, offering up to $120 in savings during the height of the pandemic.

Offer Details

Now, Chase Sapphire and JP Morgan Reserve cardmembers can earn even more rewards thanks to an improved Peloton points accelerator. Effective immediately, the new, refreshed Peloton points accelerator runs until March 31, 2023. Here’s what Sapphire cardmembers can expect:

  • Chase Sapphire Reserve cardmembers will get 10X total points on Peloton equipment and accessory purchases over $250 through March 2025.
  • Chase Sapphire Preferred cardmembers will get 5X total points on Peloton equipment and accessory purchases over $250 through March 2025.

Eligible purchases for the new accelerator include Peloton equipment and accessory purchases over $250. Purchases must be made directly through Peloton and paid for in full at the time of checkout. Please note that there is a maximum earn of 50,000 points total for Sapphire Reserve cardmembers and 25,000 points total for Sapphire Preferred.

For more information on the new Chase Sapphire Peloton points accelerator, please visit the official offer site.

About Peloton

Peloton is a leading interactive fitness platform with a loyal global community of more than three million members. The company pioneered connected, technology-enabled fitness and the streaming of immersive, instructor-led boutique classes for its members anytime, anywhere. Peloton makes fitness entertaining, approachable, effective, and convenient while fostering social connections that encourage its members to be the best versions of themselves.

Featured image by Chase

Capital One Launching ‘Premier Collection’ Hotels

by Cory Santos
Capital One Launching ‘Premier Collection’ Hotels

Capital One is continuing to provide value for Venture X Rewards cardmembers. The bank’s latest innovation is a new luxury hotel collection, the “Premier Collection”.

Venture X Enjoying Steady Improvements

The Capital One Venture X Rewards Credit Card provides huge travel perks, impressive miles on every purchase, and more – for a $395 annual fee. That fee is very reasonable compared to other premium travel cards –The Platinum Card® from American Express and the Chase Sapphire Reserve®. Those cards feature annual fees that average around $200 more than the X but provide well-established, robust travel benefits – something Capital One has been scrambling to rectify.

Capital One began by launching its own dining portal, Capital One Dining, in early 2022. This program relies on award-winning chef José Andrés — as well as the James Beard Foundation and the Michelin Guide – to create a new dining experience for Capital One Rewards cardholders.

In May, the card issuer launched Capital One Travel with Hopper. The Hopper platform differs from other travel booking platforms because it uses artificial intelligence to tell consumers when they should book flights or hotels.

Capital One to Launch ‘Premier Collection’ Hotels

Now, Capital One is ensuring that dedication to providing premium travel growth continues with the upcoming launch of the “Premier Collection.” The Premier Collection offers exclusive hotels and resort collections (as well as premium benefits) for eligible Capital One cardholders – including the Venture X.

The premium benefits will include:

  • Earn 10X points on bookings
  • $100 experience credit to use during your eligible stay
  • Complimentary breakfast for two each day of your stay
  • Free Wi-Fi throughout your stay

Capital One expects to extend additional benefits when available, including early check-in, late check-out, room upgrades, and more. Venture X cardholders can also use their $300 annual credit for Premier Collection stays.

Fine Print

Benefits available to eligible cardholders for Premier Collection bookings include daily breakfast for two, complimentary Wi-Fi, an experience credit of up to $100 USD, and (when available) room upgrades, early check-in and late check-out. Booking must be made through Capital One Travel in the eligible cardholder’s name, with cardholder as member of party traveling, to qualify for benefits. Benefits applied per room, per stay. Hotel terms and conditions apply; a minimum number of nights may be required by hotel for booking. Benefits cannot be redeemed for cash or combined with other offers unless specified. Participating properties and benefits subject to change without notice. Offer valid for consumer use only unless otherwise permitted. We may disqualify any cardholder from participation and benefits in our sole discretion. See travel.capitalone.com/terms-of-service for additional terms.

Related Article: BestCards Membership Now Offers Double Cash Back

Featured image by Capital One

U.S. Bank Launching Business Altitude Connect Card

by Cory Santos
U.S. Bank Launching Business Altitude Connect Card

Thanks to an upcoming card launch from U.S. Bank, the business credit card market is looking to get more crowded.  The U.S. Bank Business Altitude Connect World Elite Mastercard will target travel-focused companies that want to save on gas, car rentals, and more.

U.S. Bank To Launch Business Altitude Connect World Elite Mastercard’

U.S. Bank is looking to attract new business credit card customers with a new, premium business card. The new card, dubbed the U.S. Bank Business Altitude Connect World Elite Mastercard, will provide lounge access, a sizeable welcome bonus, and no foreign transaction fees.

The enticing welcome bonus with the Business Altitude Bank Altitude Connect World Elite Mastercard is 60,000 points after $6,000 in spend on the Account Owner’s card in the first 180 days of opening your account. That’s a decent bonus – made even better by the fact the accountholder can transfer points between their business and personal Altitude cards so they can redeem points sooner.

Business Altitude Bank Altitude Connect Features

What makes U.S. Bank’s upcoming business card so interesting is that it focuses on commuters and traveling “road warriors,” rather than the usual flights-focused approach by bigger banks. Here’s what business owners can expect from the card:

  • Earn 5X points on prepaid car rentals and hotels when booked through the U.S. Bank Rewards Center
  • Earn 4X points on the first $150,000 in annual spend on travel expenses (paid directly to providers such as airfare and hotels, plus on gas and EV charging)
  • Earn 2X points on dining, takeout, restaurant delivery, and cell phone providers
  • Earn 1X points for all other net purchases

But that’s not to say the Business Altitude Connect won’t have any airport perks. Flyers enjoy complimentary Priority Pass Select membership plus four complimentary visits per year. Business travelers also enjoy no foreign transaction fees. The card also charges no annual fee for the first year of membership, with the annual fee at $95 every year after that. Plus, companies receive free employee cards.

For more information on the new U.S. Bank Business Altitude Connect World Elite Mastercard or to join the waitlist, please visit the dedicated card waitlist page

Related Article: Unique Features to Look for in a Business Credit Card

Featured image by.JoshuaWoroniecki/PixaBay

When Does Your Credit Card Get Charged With Interest

by Jeannyn Gomez
When Does Your Credit Card Get Charged With Interest

Last updated on January 29th, 2024

Interest rates have been on the rise over the last all of 2022 and will most likely continue the upward trend in 2023. If you have credit cards, it’s best to stay educated on how interest gets charged. Stay ahead of potential credit card debt with everything you need to know about credit card interest rates and when it gets charged.

When Is Interest Charged On Your Credit Card

When used responsibly credit cards can be an excellent tool for your budget and purchases. In contrast, wrongful use of a credit card can get you waist-deep in accrued interest, resulting in high credit card debt. Get educated on how your credit card works and when it will be charged with interest to avoid any future credit card debts.

Know The Credit Card Basics

For starters, you should know how a credit card works. A credit is a form of revolving credit. The credit card can be used to make purchases at merchant stores and online by tapping or inserting it into a card reader. Use of the card requires a monthly payment by the due date. Every time the credit card is used, its balance will increase by the transaction dollar amount.

Credit Card Interest Fundamentals

Credit card interest is the cost of borrowing money. In the credit card world, interest is known as the annual percentage rate or APR. In the credit card agreement, you will find your credit card purchase APR. This is the interest rate that will be charged on your purchases. However, there may also be a separate APR for balance transfers and cash advances.

How Is Your Credit Card Interest Calculated?

Interest is accrued when the credit card balance is not paid in full. This means the balance is carried over from month to month, and when that happens, it causes interest to accrue daily based on the Daily Periodic Rate (DPR). To calculate DPR, you must divide the credit card APR by 365 (total days in a year).

You will only have to worry about interest after the typical 21-day grace period has ended. The grace period ends on the due date, which is available on your credit card statement. If the credit card balance is not paid in full on the due date, then interest is accrued. This is how it works for your credit card purchase APR. However, a cash advance typically has a separate APR and is accrued immediately.

Furthermore, balance transfers may also have an APR that differs from the credit card purchase APR. Many times, balance transfers will have a promotional APR period that can last anywhere between 10 to 18 months. However, there are credit cards that may have a low intro APR for balance transfers for longer than 18 months. For example, the Citi® Diamond Preferred® Card and the Citi Simplicity® Card both feature a 0% intro APR for 21 months on balance transfers. After the promo period, interest will be accrued at its regular rate if the balance has not been paid in full.

How To Avoid Interest How To Lower Interest
Pay the full balance on time Work on your credit score
Establish and stick to a budget Maintain a perfect payment history
Set up auto pay and alerts Use promo APRs

The Bottom Line

Ultimately, credit card interest is manageable with the responsible use of a credit card. Work on your credit score to score the best APR’s in the game. Try your best to budget accordingly to not carry a balance on your credit card statement and avoid interest rates piling up on your bill.

Featured image by Pixelshot/Canva

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BestCards is an independent, Florida-based credit card comparison platform. Many of the card offers that appear on this site are from companies from which BestCards receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). BestCards does not include all card companies or all card offers available in the marketplace.