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Tag: credit cards

  • What does opening or cancelling a credit card do to my credit score? – MoneySense

    What does opening or cancelling a credit card do to my credit score? – MoneySense

    To close a credit card, the balance is $0. If there’s a substantial balance on the remaining cards, it’s going to increase the credit utilization ratio. And, if the increase is high enough, it will hurt your credit score. This is because the closed card’s unused credit limit no longer provides balance in the relationship between your other credit balances and credit limits. What you owe elsewhere can have a bigger impact than if you had a zero-balance credit card.

    Another thing: Closing an account means the creditor will stop reporting on your behalf your credit history on that card. If the card showed positive credit history, such as responsible usage and making payments on time, that history will gradually fade away and no longer bolster your credit score. 

    The reverse can’t be said. If the card showed negative credit history, closing the account will not erase the negative impact on your score. 

    Generally speaking, cancelling a credit card won’t improve your credit score, and you shouldn’t close a credit card unless you have a good reason, such as not trusting yourself to use the credit responsibly.

    Buyer beware: Welcome offers

    Many credit cards come with a generous sign-up bonus that helps you earn cash back, points, miles or a reduced interest rate. Welcome offers can be a great way to save money, especially if you already had planned on spending the minimum threshold to earn them. However, proceed with caution. 

    Read the fine print. Despite the enticing welcome offer of a credit card, your credit score may drop when you apply for a new card as a hard inquiry will be performed during the application process. Although your credit score will only drop a couple of points and will likely recover after a few months if you make your payments on time, it’s still a hit to your credit.

    Remember that welcome offers are one-time deals. While some credit card sign-up bonuses may save you money up front, the reality is that any rewards you earn aren’t worth incurring additional bills if you’re already struggling with debt. You should only consider a new welcome offer if you have paid off your credit card debt in full. If you have any debt, focus on paying that down—not short-term wins like getting a lower and very temporary interest rate.

    Opening and closing credit cards can impact how you use credit, too. Open multiple new cards, and you may end up with more credit than you can feasibly handle or keep track of. In addition, the allure of welcome offers may distract you from your financial goals. There’s impact on your credit score, and it’s critical to think about how having more or less credit affects your ability to live within your means and pay off your debt in full each month.

    Doris Asiedu

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  • Credit cards, home loan quality deteriorates

    Credit cards, home loan quality deteriorates

    Overall portfolio at risk (PAR) for consumer loans in the 31-180 day bucket improved to 3.5 per cent in September 2023 from 4.7 per cent in March 2023. However, PAR for home loans deteriorated to 2.6 per cent from 2.4 per cent, and for credit cards to 8.8 per cent from 8.4 per cent.

    PAR for personal loans worsened slightly to 2.4 per cent from 2.5 per cent. As such, origination or sanction quality showed much faster deterioration in early delinquencies, reflected in the increase in 30+ day delinquencies for three-month old loans with a ticket size of up to ₹50,000.

    As of September 2023, 8.5 per cent of loans under ₹10,000 and 5.6 per cent of those between ₹10,000-50,000 were in the 30+ DPD (days past due) bucket after three months of sourcing, as per the ‘FinTech Barometer’ report on Personal Loans by CRIF High Mark and Digital Lenders Association of India (DLAI).

    The report is based on data from 52 DLAI members submitted to credit bureaus between March 2020 and September 2023.

    Top States

    Consumer loans grew 64 per cent from March 2020 to September 2023, led short-term personal loans which grew 204 per cent, gold loans (121 per cent), personal loans (115 per cent), credit cards (76 per cent), home loans (53 per cent) and business loans (67 per cent). Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh and Rajasthan were the top States for consumer lending.

    Origination of personal loans increased two-fold in terms of origination value, and 2.6 times in terms of origination volume between FY20 and FY23. However, growth tapered to 32 per cent in FY23 with portfolio outstanding at ₹10.7 lakh crore as of March 2023. DLAI members contributed 7.9 per cent to origination value and 19.8 per cent to origination volume in FY23.

    Highest growth in origination value was for loans between ₹10,000-50,000 and those over ₹10 lakh. While loan sanctions of less than ₹1 lakh are still significant for digital lenders, their share has reduced over the past three years, especially for short-term personal loans of less than ₹50,000, the report said.

    Demand for short-term personal loans saw a 3.5-fold growth in the beyond top 100 cities compared with 2.3 times growth for the top 100 cities for loans of less than ₹10,000. For the ₹10,000-50,000 loan bucket, the top 100 cities saw three- fold growth as against a five-fold growth for beyond the top 100 cities.

    However, given the less saturation in the ‘beyond top 100 cities’, portfolios for these geographies are operating at similar risk levels compared to the top 8 and top 100 cities, the report said.

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  • The best Scotiabank credit cards in Canada for 2024 – MoneySense

    The best Scotiabank credit cards in Canada for 2024 – MoneySense

    Why trust us

    MoneySense is an award-winning magazine, helping Canadians navigate money matters since 1999. Our editorial team of trained journalists works closely with leading personal finance experts in Canada. To help you find the best financial products, we compare the offerings from over 12 major institutions, including banks, credit unions and card issuers. Learn more about our advertising and trusted partners.

    The best Scotiabank cards by category

    By Keph Senett on January 22, 2024
    Estimated reading time: 4 minutes

    Scotiabank offers 17 credit cards tailored to various financial needs and goals. But a handful stand out as the very best the Big Six bank has to offer. Below, we break down our picks for the top Scotiabank credit cards across categories, from travel rewards to cash back and low-interest to perks.

    Best card by category Why we love it
    Best for travel rewards
    Scotiabank Gold American Express
    Annual fee: $120 (waived for the first year)    		 Up to 6 Scene+ points per $1 on groceries (for a 6% return on spending) and no foreign transaction fees
    Best for cash back
    Scotia Momentum Visa Infinite
    Annual fee: $120 (waived for the first year)    		 4% cash back in three common spending categories, including recurring bills
    Best for students
    Scotiabank Scene+ Visa
    Annual fee: $0    		 Tailored to movie-going students, with good earn rates in multiple categories and flexible redemptions
    Best for low interest
    Scotiabank Value Visa
    Annual fee: $29 (waived for the first year)    		 The lowest interest rate the bank has to offer
    Best for perks
    Scotiabank Passport Visa Infinite
    Annual fee: $150 (waived for the first year)    		 No foreign transaction fees, six free DragonPass lounge visits per year, and more

    Best for travel rewards

    At a glance: While the bank has a few options when it comes to collecting travel rewards, our top pick is the Scotiabank Gold American Express. The annual fee is well worth it for the card’s earn rate, welcome bonus and perks, including no foreign transaction fees. For those who cross-border shop or travel, the latter is like an automatic 2.5% savings on each purchase in a foreign currency. A suite of travel-related insurance coverage and a discount on Priority Pass membership sweeten the deal.

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    Scotiabank Gold American Express

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    • Annual fee: $120 (waived for the first year)
    • Earn rates: 6 points per $1 spent on groceries at Sobeys-affiliated stores; 5 points per $1 on dining, entertainment and groceries at other eligible grocery stores; 3 points per $1 on gas, daily transit and select streaming services; 1 point per $1 on everything else
    • Welcome offer: You can earn up to $650 in value in the first 12 months, including up to 40,000 bonus Scene+ points. Must apply by July 1, 2024.
    • Annual income requirement: $12,000

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    Best for cash back

    At a glance: Cash back cards are exactly what they sound like: cards that rebate a percentage of your purchases as cash (usually applied directly to your balance). Our Scotiabank pick in this category is the Scotia Momentum Visa Infinite. This card features an excellent earn rate of 4% back on groceries, recurring bills and subscription services (such as Netflix), 2% back on gas, public transit and ride-sharing services (including Uber), and 1% on all other purchases. Comprehensive travel insurance and concierge service make this an attractive card.

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    Scotia Momentum Visa Infinite

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    • Annual fee: $120 (waived for the first year)
    • Earn rates: 4% back on groceries, recurring bill payments and subscription services, 2% on gas, public transit, and 1% on everything else
    • Welcome bonus: earn 10% cash back on all purchases for the first 3 months (up to $2,000 in total purchases). No annual fee in the first year, including on additional cards. Offer ends October 31, 2024.
    • Annual income requirement: Personal income of $60,000 or household income of $100,000

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    Honourable mention

    At a glance: Our runner-up in this category is the Scotia Momentum Visa. This card features a solid earn rate of 2% cash back on grocery and drugstore purchases, gas and recurring bill payments—categories that cover the lion’s share of the average Canadian’s spending; all other purchases earn 1%.

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    Scotia Momentum Visa Card

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    • Annual fee: $39
    • Earn rate: Earn 2% cash back for every $1 spent  on groceries, gas, drug stores and recurring bill payments; 1% back on everything else
    • Welcome bonus: You can earn a 2.99% introductory interest rate with 0% fee on balance transfers for the first 6 months (22.99% after that; annual fee $39). Offer ends October 31, 2024.
    • Annual income requirement: $12,000

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    Best for students

    At a glance: Scotiabank’s no-annual-fee Scene+ Visa is a great pick for students who don’t want to pay a fee each year for their credit card. Cardholders collect Scene+ rewards on everyday purchases, which are redeemable for movies at Cineplex cinemas. Scene+ points can also be used for discounts at restaurants—perfect for a study break or night out with friends.

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    Scotiabank Scene+ Visa card

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    • Annual fee: $0
    • Earn rates: 2 Scene+ points for every $1 spent at Sobeys banner stores and Cineplex; 1 Scene+ point for every $1 spent everywhere else
    • Welcome offer: You can earn 5,000 bonus Scene+ points within your first year. Must apply by February 29, 2024.
    • Annual income requirement: $12,000

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    Best for low interest

    At a glance: At regular credit card interest rates of around 20%, even a small debt can increase quickly. So, if you often carry a balance on your card, consider a low-interest rate option, like the Scotiabank Value Visa. With a low 12.99% interest rate, this card can help you pay down outstanding debt faster.

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    Scotiabank Value Visa

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    • Annual fee: $29 (waived for the first year)
    • Balance transfer offer: 0% introductory interest rate on balance transfers for the first 10 months. Offer ends 31 October 2024.

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    Best for perks

    At a glance: For travellers willing to pay an annual fee, the Scotiabank Passport Visa Infinite card delivers. Like the Amex above, this card doesn’t charge foreign transaction fees and includes a robust suite of travel insurance. Cardholders collect points in the Scene+ program at a rate of 3 points per $1 on eligible grocery stores, 2 points per $1 on restaurants and other grocery stores, entertainment and transit, and 1 point per $1 on other eligible purchases. Six free DragonPass airport lounge visits annually is an added benefit for this travel card. Plus, you can use your points to travel on any airline of your choosing.

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    Scotiabank Passport Visa Infinite

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    • Annual fee: $150 (waived for the first year)
    • Earn rate: 3 Scene+ points per $1 spent at Sobeys stores; 2 points per $1 on groceries, dining, entertainment and transit; 1 point per $1 on everything else. Plus, pay no FX fees
    • Welcome offer: earn up to $1,300 in value in the first 12 months, including up to 40,000 bonus Scene+ points and first year annual fee waived. Offer ends July 1, 2024.
    • Annual income requirement: Personal income of $60,000 or household income of $100,000

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    Honourable mention

    At a glance: The Scotiabank Platinum American Express bundles many rewards and perks into one standout card. As with other Scotia rewards cards, points can be redeemed for merchandise, gift cards or even cash, but it’s the travel rewards that really shine with the Platinum. In addition to the ability to book travel without restrictions, Platinum cardholders can enjoy 10 complimentary visits to airport lounges in the Priority Pass program, as well as membership in the Hertz #1 Club Gold. Cardholders are eligible for premium events through American Express Invites and VIP Pass. Seven types of travel insurance helps members travel safely, and with priceless peace of mind.

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    Scotiabank Platinum American Express Card

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    • Annual fee: $399
    • Earn rate: 4 points per $1 on gas, groceries, dining and entertainment; 1 point per $1 on everything else
    • Welcome bonus: You can earn up to $2,100* in value in your first 14 months, including up to 60,000* bonus Scene+ points. Offer ends October 31, 2024.
    • Annual income requirement: $40,000

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    More of Canada’s best credit cards:

    Keph Senett

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  • Paying rent usually won't boost your credit score. Here's what renters need to know to make it count

    Paying rent usually won't boost your credit score. Here's what renters need to know to make it count

    Luis Alvarez | Digitalvision | Getty Images

    While rent payments do not traditionally affect your credit, a growing number of so-called rent-reporting services are trying to change that.

    These services track users’ rent-paying habits and report them to one or more of the big credit bureaus — Equifax, Experian and TransUnion — with the aim of helping renters build credit and potentially boost their credit score.

    But these services don’t all operate the same way, and some may have less value for renters. There’s one major detail you should consider before signing up, said Matt Schulz, chief credit analyst at LendingTree: Is your payment record going to all three bureaus?

    “It’s important for people to understand that you don’t just have one credit score,” he said. “You just don’t know which bureau your lender is going to use to get your information.”

    More from Personal Finance:
    Many young unmarried couples don’t split costs equally
    Here’s how Gen Zers can build credit before renting their own place
    Gen Z, millennials are ‘house hacking’ to become homeowners

    How rent-reporting programs work

    This week, real estate site Zillow Group launched a new rent payment reporting feature. Renters who pay through the site can now opt in to have their on-time rent payments reported to Experian, one of the three major credit bureaus, at no charge to the renter or landlord.

    In order for a renter to use the Zillow feature, their landlord must be a user of Zillow Rental Manager and have agreed to receive payments through the firm.

    “It aligns with our goal of providing accessibility to building credit in the rental space. It’s a really positive step in that direction,” said Michael Sherman, the vice president of rentals at Zillow Group.

    While Zillow is the first real estate marketplace to report rental payment data to a credit bureau, it joins a host of different rent-reporting services already available for consumers.

    There are many services renters can look into, including some that are free, such as Piñata, and others that come with service or processing transaction fees, such as Rental Kharma, which charges $8.95 a month after an initial set-up fee of $75.

    There are also services geared to landlords that offer rent reporting for tenants, including ClearNow, Esusu and PayYourRent. Landlords usually shoulder the cost of these programs, but there may be processing fees depending on how you make your rent payments.

    Rent reporting can help the ‘credit invisibles’

    Nearly 50 million Americans have no usable credit scores, according to a 2022 fact sheet from the Office of the Comptroller of the Currency’s Project REACh, or Roundtable for Economic Access and Change.

    Being “credit invisible” can affect your ability to qualify for loans and affect the interest rates and terms you are given when you apply for credit.

    When rent payments are included in credit reports, consumers see an average increase of nearly 60 points to their credit score, according to a 2021 TransUnion report.

    Other payment reporting programs such as Experian Boost, StellarFi and UltraFICO have aims similar to those of rent-reporting services, but with different kinds of payments. They allow users to build credit based on alternative metrics such as banking activity and payments for streaming services, electric bills and mobile phone plans. 

    Talk to your landlord before you sign up for a rent-reporting service on your own. They may be open to signing up as a benefit to their tenants.

    While “people are creatures of habit and don’t always embrace change,” a credit building feature can help a landlord stand out in a competitive rental market, said Schulz.

    “It would be significant added value; building credit is a big deal and if you are somebody who can help people build credit, you may be a little more interesting to them,” he added.

    ‘Three credit reports are different reports’

    Before you sign up to a rent-reporting service, it’s important to understand which bureau or bureaus the company sends reports to. It may not be worth using a service that sends rent payment reports only to a single bureau.

    “If a rent-reporting service only gives your information to one of [the three big bureaus], and the lender that you are getting your auto loan from uses a different credit bureau, the benefits that could and should come with that tool may not end up panning out,” said Schulz.

    The ideal is that the rent-reporting company gives the data to Equifax, Experian and TransUnion.

    “People hear about three credit bureaus, but they don’t understand that your three credit reports are different reports, and different companies report to different bureaus,” said Schulz.

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  • Guide to Choosing a Credit Card Processor for a Small Business | Entrepreneur

    Guide to Choosing a Credit Card Processor for a Small Business | Entrepreneur

    Opinions expressed by Entrepreneur contributors are their own.

    When it comes to spending money, cash is no longer king for most shoppers. The majority of consumers prefer using a debit or credit card to make their purchases. This means that being able to accept these forms of payment is critical for businesses today.

    This guide will walk you through how to choose the best credit card processor from the many options available on the market, including information on costs, processor types, and what factors you should consider.

    What is credit card processing?

    When a customer makes a purchase with a debit or credit card, the processor acts as the go-between for the customer’s bank account and the merchant’s bank account. Although the process takes only a few moments, it involves a complex sequence of steps for the credit card processor, the customer and merchant’s respective banks, and the credit card network. The credit card processor’s role includes security verification, routing the transaction and acting as a clearinghouse for funds.

    Who needs credit card processing?

    Given that the majority of consumer purchases are made with debit and credit cards (and an ever-shrinking percentage made with cash), the vast majority of small businesses must provide a way for customers to pay with cards. Most credit card processors provide several methods for accepting payments. Consider these examples of credit card usage in action:

    • A brick-and-mortar convenience store must use a full-service register to accept credit card payments via swipe, chip, or tap.
    • Restaurant servers can use a handheld point-of-sale (POS) terminal to instantly accept card payments right at the customer’s table.
    • E-commerce stores need the ability to accept credit card information via an online form and checkout technology.
    • A restaurant that takes orders over the phone needs a virtual terminal to enter credit card payment details manually.
    • Small-business owners at venues, such as craft markets or trade shows, can use a card reader paired with a mobile device to accept payments while on the go.

    How much does credit card processing cost?

    It’s important to understand the differences in pricing between credit card processing and other types of business services. The majority of credit card processors employ either interchange-plus pricing or flat-rate processing or a combination of both.

    Interchange-plus pricing is when the credit card processor takes a small percentage of each sale, along with a modest fixed fee. The transaction percentage can vary, ranging from approximately 0.29% to more than 3.5%. The fixed fee may be as minimal as a few cents or escalate to 25 cents or more. For some businesses, this fee structure is advantageous because there are no upfront costs. However, it may be less workable for low-margin businesses.

    Meanwhile, flat-rate pricing entails paying a fixed monthly subscription fee for unlimited credit card transactions. While this model eliminates concerns about the credit card processor cutting into revenue, it may pose a financial challenge for fledgling businesses due to high monthly fees. Flat-rate prices typically range from $59 to $199 monthly and are often accompanied by high fixed fees on a per-transaction basis.

    Additionally, some credit card processors impose incidental and recurring charges, such as Payment Card Industry (PCI) compliance fees, payment gateway fees, network fees, monthly minimum fees and statement fees. Business owners are strongly advised to review the terms of service carefully before committing to any processor.

    Furthermore, it’s important to note that specialized POS hardware is required to accept credit cards through swipe, tap or chip methods. While some credit card processors offer free hardware, this path usually involves entering into a contractual agreement. Note also that certain processors provide proprietary POS equipment for purchase while others rely on third-party vendors for their equipment.

    What are the benefits of credit card processing?

    The main benefit of accepting credit cards is the massive positive effect on sales. The majority of purchases are made with cards and consumers are increasingly going cashless. For businesses that operate primarily online, the ability to accept credit cards is an absolute necessity. Besides the obvious, credit card processing offers many other benefits:

    • Increased safety: Many businesses have done away with cash payments entirely and only accept payments by card. This helps protect customers and employees by removing the incentive for criminals to target the business during a robbery.
    • More efficiency: A busy small business, such as a restaurant, can process more sales without worrying about cash payments and making change.
    • Better data management: Most credit card processors include software that collects and organizes your transaction data. You can gain insight into your business by generating digestible reports and summaries of your sales data.
    • Streamlined accounting: Some credit card processors integrate directly with popular accounting software programs, such as QuickBooks and Xero, allowing you to import data easily.
    • Take payments anywhere: With credit card processing, you can accept payments remotely via emailed links, quick response (QR) codes, hosted web pages, and more.

    What are the different types of credit card processing equipment?

    To accept credit cards, you will need a device or program for inputting credit card information at the POS. Both physical devices and digital solutions are available:

    • Mobile reader: These devices pair with a smartphone so that you can accept payments while on the go.
    • Handheld terminal: Often used in restaurants, handheld terminals are self-contained devices that often print receipts.
    • Register: These fixed POS devices are found at the checkout or behind a restaurant counter. Typically, these are the most expensive options for business owners but they also pack the most features.
    • Virtual terminal: With a virtual terminal, you can enter credit card information manually into a credit card processing app.
    • Online checkout: E-commerce customers use checkout forms to enter credit card information for online purchases.

    What are the key features to look for in credit card processing?

    Whatever processor you choose should have a few key features. Card acceptance, security, hardware options, and basic POS tools are a few features that you should look for during your search.

    Accepts all brands.

    Make sure that the credit card processor works with all major card brands, including Discover and American Express. This ensures that you don’t lose out on sales and frustrate customers.

    PCI compliance.

    The credit card processor should comply fully with the PCI Data Security Standard, which will help you maintain PCI compliance.

    EMV compliance.

    EMV-compliant card readers reduce your vulnerability to fraud and help shield your business from liability in the event of a security breach.

    Hardware options.

    Confirm that the credit card processor’s software works with the type of equipment that you will need to accept payments.

    POS tools.

    Most credit card processors include basic POS software. If you don’t plan to purchase a separate POS system, then you should look carefully at which features are included as part of the processor’s software.

    What factors should you consider when choosing a credit card processor?

    In addition to the criteria above, when choosing a credit card processor you should consider several other important factors, such as pricing, ease of use, third-party integrations, customer service and features, such as a mobile app.

    Pricing.

    Estimate how much your business generates in monthly revenue and use that figure to evaluate which pricing model makes the most financial sense. Whether you choose a processor that follows the interchange-plus pricing model or a flat-rate model will depend on your profit margins and sales volume.

    Ease of use.

    The best credit card processors sport sleek, modern user interfaces (UIs) that are easy to learn and navigate. If you accept payments in person, make sure that the POS hardware is user-friendly. The best equipment is plug-and-play and ready to accept credit cards immediately. On the e-commerce side, ensure that the processor’s software is compatible with your existing technology stack for easy integration.

    Third-party integrations.

    Some credit card processing software programs integrate with accounting, POS, human resources and other business productivity software. Make a list of apps that you use for your business and check for compatibility. A few processors also feature open application programming interfaces so that you can build custom solutions.

    Customer service.

    Credit card processors vary widely in terms of customer service. While some stand out on user review sites for providing top-notch technical support, others score poorly. The standouts in customer service often provide 24/7 phone support and a dedicated account manager. Other options include live chat and email support. If being able to reach the company at any time is important to you, make sure that the customer support options reflect that.

    Additional features.

    Many credit card processors specialize in servicing a particular type of business. Some focus on providing tools for retailers or restaurants while others are more geared toward e-commerce businesses. Business owners who like to work on the go should ensure that the processor provides a dedicated mobile app. When reading about a credit card processor’s features, think about what your business needs.

    What are the top credit card processor vendors?

    Clover

    Clover provides a variety of pricing plans for different business types, particularly restaurants, retailers and appointment-based businesses. The company is best known for its range of POS hardware, including mobile readers, handheld terminals, and registers. Clover’s POS software integrates with more than 500 third-party apps.

    Merchant One

    Merchant One customizes plans for individual business needs and offers highly rated customer service. With a low monthly subscription fee of $6.95 and integration with more than 175 online shopping carts, it provides cost-effective solutions.

    ProMerchant

    ProMerchant offers fair deals for businesses that would otherwise struggle to secure credit card processing services. The company stands out with excellent customer support, including a dedicated account representative. ProMerchant’s willingness to work with any business type, including those with low credit scores, makes it an excellent choice for high-risk businesses.

    Stax

    Stax offers a subscription-based model without taking a percentage of revenue, which makes it particularly well-suited for high-volume businesses. With compatibility across various POS hardware options and a mobile app for on-the-go transactions, Stax also provides a great deal of flexibility.

    Payment Depot

    Payment Depot’s membership-based model is perfect for a business that wants to avoid high processing rates. With prices ranging from $59 to $99 a month, Payment Depot doesn’t take a cut of your business’s sales. The company collaborates with SwipeSimple for its software needs and is compatible with many third-party POS device makers.

    Chase

    As one of the nation’s largest banks, Chase leverages its massive treasure trove of credit card data to provide insights for business owners. With Chase, you can better target customers with data on demographics, purchase habits, and more. Chase also includes fast payouts, synchronization with financial services and Health Insurance Portability and Accountability Act-compliant payment solutions for healthcare businesses.

    Helcim

    Helcim’s all-inclusive platform includes an intuitive UI, diverse payment options and no contracts or monthly fees. It integrates with third-party devices, allowing flexibility as businesses expand.

    PayPal

    The PayPal brand name is widely recognized and trusted, offering plug-and-play solutions for online transactions. With various ways for customers to send money and integration with popular business apps, PayPal greatly simplifies online payment processes.

    Jason Fell

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  • SimplyCash Preferred card from American Express review – MoneySense

    SimplyCash Preferred card from American Express review – MoneySense

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    SimplyCash Preferred from American Express

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    • Annual fee: $120
    • Earn rate: 4% cash back on eligible gas and grocery purchases; 2% cash back on everything else
    • Welcome offer: You can earn a $40 statement credit for each monthly billing period in which you spend $750 in purchases on your card.
    • Annual income requirement: None

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    6 things to know about the SimplyCash Preferred Card from American Express

    1. The base earn rate

    Most cash back credit cards offer boosted earn rates in one or two spending categories and only 0.5% or 1% back on everything else. The SimplyCash Preferred Card from American Express offers an excellent earn rate of 4% cash back on gas and groceries (on your first $30,000 in purchases annually) and an impressive base rate of 2% on every other dollar spent, regardless of the spending category. This means cardholders get double or quadruple the return on spending on a host of everyday purchases (like clothes, electronics, and more) when compared to other cash back cards.

    2. The welcome offer

    New cardholders can earn a $40 statement credit for each monthly billing period in which you spend $750 in purchases on your card.

    3. Free supplementary cards

    You can add up to nine additional users (aged 13 or older) for no extra fee—an effective, no-cost way to harness other household members’ spends to boost your cash back—which helps make up for the fact that the welcome bonus doesn’t include a first-year fee waiver. In comparison, some premium cards charge an extra annual fee of $29 or $50 for every authorized user you add. The benefit of free authorized users don’t come at the expense of perks or benefits, either.

    4. The side perks

    SimplyCash Preferred comes with some American Express benefits, including American Express Experiences, such as Front of The Line, which lets you access pre-sale tickets to major live events like concerts and plays. Through Amex Offers, you can get exclusive discounts on certain purchases. Refer friends and family to sign up for the card and earn $50 for each one who’s approved, up to $750 per calendar year.

    5. Travel insurance

    Travel insurance is a hot benefit for many credit card shoppers, but not all policies are created equal. The good news here is that the SimplyCash Preferred comes with a package that rivals the insurance offerings of most full-fledged travel credit cards. The SimplyCash Preferred covers your for up to $5 million in travel emergency medical insurance for 15 days (for cardholders under the age of 65), up to $500 in lost or delayed baggage insurance, car rental theft and damage insurance for vehicles up to MSRP of $85K (a full $20,000 more than most cards offer), and hotel motel burglary insurance.

    6. American Express acceptance

    American Express is accepted at tens of thousands of locations across Canada, including most major retail chains and dining establishments. It is important to note, though, that American Express is not as widely accepted as Visa or Mastercard. In addition to not being accepted at some mom-and-pop stores, American Express can’t be used at retailers under the Loblaws banner (except for Shoppers Drug Mart) or at Costco.

    Are there any drawbacks to the American Express SimplyCash Preferred Card?

    As mentioned above, American Express isn’t as widely accepted as Visa or Mastercard, but you can cover your bases by carrying a second no-fee credit card as a backup. Another downside is that your rewards are only redeemed once annually, in September. Many other cards give you greater flexibility by allowing you to redeem when you want. For example, with the CIBC Dividend Visa Infinite, you can redeem your cash back at any time, as you as you have banked $25 in rewards.

    Bottom line

    When it comes to cash back cards, the earn rate is arguably the most important metric to consider—and, with a 2% base rate and a 4% bonus rate on gas and groceries, the SimplyCash Preferred card easily climbs the ranks as one the best cash back credit cards in Canada.

    Keph Senett

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  • What to do if you’re a victim of bank account or credit card fraud – MoneySense

    What to do if you’re a victim of bank account or credit card fraud – MoneySense

    Interac e-Transfer is generally a safe way to send money in Canada. In fact, “for every $100 spent across the Interac Debit and e-Transfer networks, less than $0.02 was lost to fraud [in 2021],” according to Interac.

    Regardless, fraud happens. E-Transfer fraudsters generally use text or email channels to exploit victims. Some examples of fraud in Canada include:

    • Tax refund or government relief scams
      A fraudulent “deposit” of an income tax refund or government financial support is sent to access banking information.
    • Lottery scams
      The fraudster requests the provision of sensitive information or a prepayment of an administration fee.
    • Rental scams
      Someone pretends to be collecting rent on behalf of your landlord or offers a nice apartment for rent at a low price and requests a deposit to secure it.
    • Fraudulent sales
      Typically through an online marketplace, someone may request prepayment for a hard-to-find or rare item and then never send it to the buyer.
    • Relationship scams
      Someone impersonates a family member, coworker or romantic interest and asks for money for an emergency.
    • Work from home ads
      An applicant is asked to prepay for supplies, training or some other work-related expense for a fake job.
    • Hacking an email account
      Scammers find emails containing security questions and answers, and then intercept Interac e-Transfers and deposit the funds to their own accounts.

    If the fraudsters were able to send transfers directly from your account, William, it sounds like they were able to hack into your online banking. This may have been from a phishing text, email or website that tricked you into entering your bank login details and allowed the fraudsters to access your account afterwards.

    How do you report bank account fraud?

    According to the Canadian Anti-Fraud Centre (CAFC), the first things to do when you are a victim of fraud are:

    1. Contact your financial institutions
      Put flags on all of your accounts, even at other financial institutions. You should change your passwords.
    2. Contact the police
      Report the incident to the police and update them on any further developments.
    3. Report the incident
      Contact Canada’s two credit bureaus: TransUnion and Equifax. You can consider credit monitoring that reports suspicious credit activity to you. You should also contact the CAFC by phone at 1-888-495-8501 or using its online Fraud Reporting System.

    What do banks consider unauthorized transactions?

    It sounds like you have done all the right things so far, William. As far as the bank’s responsibility, each financial institution may have different definitions of what constitutes an unauthorized transaction. You have to check your debit card or credit card agreements to see the terms, which could include restrictions on how long after the transaction occurred that the financial institution will take responsibility. That may be where you are running into trouble.

    According to the Financial Consumer Agency of Canada (FCAC), you may be responsible for losses in cases when you:

    • Use your date of birth or telephone number as your PIN.
    • Shared your card’s PIN with someone, including a family member.
    • Keep a written record of the PIN “in proximity to” the card, including writing your PIN on the back of the card.
    • Did not report your card as being lost or stolen in the amount of time specified in your card agreement.
    • Refuse to cooperate in an investigation of unauthorized use.
    • Made fraudulent deposits with your card.
    • Did not take the necessary steps to protect your pin.

    If you haven’t had luck dealing with your bank directly, William, you can contact the Ombudsman for Banking Services and Investments at 1-888-451-4519 or [email protected].

    You could speak with a bank fraud litigation lawyer to see if they can help. An initial consult might confirm whether you have a case or if there are further steps you can take.

    Jason Heath, CFP

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  • 56 million credit cardholders have been in debt for at least a year, survey finds

    56 million credit cardholders have been in debt for at least a year, survey finds

    Although Americans helped stave off a recession in 2023 by spending enough to propel economic growth, it has come at a cost: Nearly half of consumers say they are carrying credit card debt, according to a new survey from Bankrate.

    The personal finance firm found that 49% of credit card users carry a balance from one month to the next. That’s up a full 10 percentage points from 2021. Of those who revolve their balances, 58% — 56 million people — have been in debt for at least one year, according to Bankrate. 

    The vast number of Americans racking up credit card debt isn’t a sign of reckless spending. The most common reason for not paying off their plastic every month is facing emergency or unexpected expenses, such as medical bills and car repairs, respondents told Bankrate, while many people also use their charge cards to handle daily expenses. 

    Overall, Americans owe more than $1 trillion on their credit cards — the first time consumers have surpassed that combined level of debt, according to the St. Louis Federal Reserve Bank. That debt has piled up as credit card rates have jumped and inflation continues to sap households’ purchasing power. 

    The average credit card annual percentage rate hit a record 20.74% in 2023, up 4.44 percentage points from early 2022, according to Bankrate.

    “Inflation is making an existing trend worse,” Bankrate senior industry analyst Ted Rossman told CBS MoneyWatch. “We’ve been seeing this for a while, with more people carrying more debt for longer periods of time. It’s moving in the wrong direction.”

    Bankrate based its findings on a November survey of 2,350 adults, including nearly 1,800 credit cardholders and 873 who carry a balance on their accounts. 

    Tips for paying off credit card debt

    Rossman offered a few steps consumers can take to start tackling their credit card debt . His top tip? Open a 0% interest balance transfer card that offers a grace period of 21 months during which no new interest is charged. 

    “It gives you a valuable runway to really make progress without interest weighing you down,” he said. 

    It’s also worth seeking advice from a non-profit credit counselor or reaching out directly to your credit issuer to seek more favorable terms, such as more forgiving payment due dates or a pause on repaying. “Sometimes they are willing to make accommodations, so it doesn’t hurt to ask,” Rossman added.

    Lastly, taking on a side hustle, selling belongings you don’t need, or otherwise trimming your budget can free up dollars to allocate toward paying down high-interest credit card debt. 

    “Credit card debt is the highest by a wide margin, so it has to be at the top of the list for debt payoff efforts,” Rossman said. 

    Megan Cerullo


    img-6153.jpg

    Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News streaming to discuss her reporting.

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  • Mortgages, auto loans, credit cards: Expert predictions for interest rates in 2024

    Mortgages, auto loans, credit cards: Expert predictions for interest rates in 2024

    The Federal Reserve‘s effort to bring down inflation has so far been successful, a rare feat in economic history.

    The central bank signaled in its latest economic projections that it will cut interest rates in 2024 even with the economy still growing, which would be the sought-after path to a “soft landing,” where inflation returns to the Fed’s 2% target without causing a significant rise in unemployment.

    “Rates are headed lower,” said Tim Quinlan, senior economist at Wells Fargo. “For consumers, borrowing costs would fall accordingly.”

    More from Personal Finance:
    Americans are ‘doom spending’ 
    The first step to setting an annual budget
    This strategy can help you meet New Year’s resolution goals

    Most Americans can expect to see their financing expenses ease in the year ahead, but not by much, cautioned Greg McBride, chief financial analyst at Bankrate.

    “We are in a high interest rate environment, and we’re going to be in a high interest rate environment a year from now,” he said. “Any Fed cuts are going to be modest relative to the significant increase in rates since early 2022.”

    Although Fed officials indicated as many as three cuts coming this year, McBride expects only two potential quarter-point decreases toward the second half of 2024. Still, that will make it cheaper to borrow.

    From mortgage rates and credit cards to auto loans and savings accounts, here are his predictions for where rates are headed in the year ahead:

    Prediction: Credit card rates fall just below 20%

    Because of the central bank’s rate hike cycle, the average credit card rate rose from 16.34% in March 2022 to nearly 21% today — an all-time high.

    Going forward, annual percentage rates aren’t likely to improve much. Credit card rates won’t come down until the Fed starts cutting and even then, they will only ease off extremely high levels, according to McBride.

    “The average rate will remain above the 20% threshold for most of the year,” he said, “and eventually dip to 19.9% by the end of 2024 as the Fed cuts rates.”

    Prediction: Mortgage rates decline to 5.75%

    Thanks to higher mortgage rates, 2023 was the least affordable homebuying year in at least 11 years, according to a report from real estate company Redfin.

    But rates are already significantly lower since hitting 8% in October. Now, the average rate for a 30-year, fixed-rate mortgage is 6.9%, up from 4.4% when the Fed started raising rates in March of 2022 and 3.27% at the end of 2021, according to Bankrate.

    McBride also expects mortgage rates to continue to ease in 2024 but not return to their pandemic-era lows. “Mortgage rates will spend the bulk of the year in the 6% range,” he said, “with movement below 6% confined to the second half of the year.”

    Prediction: Auto loan rates edge down to 7%

    When it comes to their cars, more consumers are facing monthly payments that they can barely afford, thanks to higher vehicle prices and elevated interest rates on new loans.

    The average rate on a five-year new car loan is now 7.71%, up from 4% when the Fed started raising rates, according to Bankrate. However, rate cuts from the Fed will take some of the edge off of the rising cost of financing a car, McBride said, helped in part by competition between lenders.

    McBride expects five-year new car loans to drop to 7% by the end of the year.

    Prediction: High-yield savings rates stay over 4%

    Top-yielding online savings account rates have made significant moves along with changes in the target federal funds rate and are now paying more than 5% — the most savers have been able to earn in nearly two decades — up from around 1% in 2022, according to Bankrate.

    Even though those rates have likely peaked, “yields are expected to remain at the highest levels in over a decade despite two rate cuts from the Fed,” McBride said.

    According to his forecast, the highest-yielding offers on the market will still be at 4.45% in the year ahead. “It will still be a banner year for savers when those returns are measured against a lower inflation rate,” McBride said.

    Don’t miss these stories from CNBC PRO:

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  • BankAmericard® Credit Card: a no annual fee 0% intro APR card fit for your balance transfers

    BankAmericard® Credit Card: a no annual fee 0% intro APR card fit for your balance transfers

    Our take: The BankAmericard is a reasonable choice for cardholders looking to consolidate debt or use for large purchases with a 0% APR for a generously long period. 

    Pros

    • Long introductory 0% APR
    • No annual fee

    Cons

    • Earns no rewards
    • Charges a foreign transaction fee

    BankAmericard® Credit Card Highlights

    Card type: 0% APR, Balance Transfer

    • Welcome Bonus: This card does not offer a welcome bonus
    • Annual Fee: $0
    • Rewards: This card does not earn any rewards

    BankAmericard® Credit Card Overview

    When in the market for a credit card that can help you save money with a 0% APR, the BankAmericard® Credit Card should not be overlooked. With a $0 annual fee and a 0% Intro APR for 18 billing cycles for purchases, and for any balance transfers that you make in the first 60 days of opening your account, it can help you lower your payments while consolidating them into one card.

    While the card offers a relatively lengthy introductory period with 0% APR, it does not offer any reward earning opportunities or other perks you can take advantage of.

    Who is the BankAmericard® Credit Card good for? 

    This card offers an interesting value proposition to those who can use a 0% intro period APR card. They will find value in being able to transfer balances from higher APR cards into this account as well as in using this card to run large purchases they don’t expect to be able to pay in full before their billing cycle revolves. 

    Who shouldn’t get the BankAmericard® Credit Card? 

    If you’re not satisfied with just a 0% introductory APR for 18 months and expect something else from your credit card, or do not like the idea of a credit card that will be of little value after the introductory period runs out, you might need to look elsewhere for a credit card that will better suit your needs.

    BankAmericard® Credit Card rates and fees

    • Annual fee: $0
    • Foreign transaction fee: 3% of the U.S. dollar amount of each transaction made in a foreign currency
    • Intro APR: 0% Intro APR for 18 billing cycles for purchases, and for any balance transfers made in the first 60 days of opening your account 
    • Purchase APR: After the intro APR offer ends, a Variable APR that’s currently 16.24% – 26.24% will apply
    • 0% Balance transfer: 0% Intro APR for 18 billing cycles for any balance transfers made in the first 60 days of opening your account, then 16.24% – 26.24% thereafter, plus a balance transfer fee of 3% of the amount of each transaction

    Additional benefits

    • No penalty APR
    • Access your FICO credit score for free
    • Contactless chip technology and mobile wallet enabled

    Credit cards similar to the BankAmericard® Credit Card

    There are several cards with 0% APR intro periods out there for you to choose from, and some come with additional perks to sweeten the deal so you can have it all.

    Chase Freedom Flex® Credit Card vs. BankAmericard® Credit Card

    The Chase Freedom Flex℠ Credit Card rivals the BankAmericard® Credit Card by giving its cardholders a 0% intro APR for 15 months from account opening on both purchases and balance transfers, while at the same time charging no annual fee. Plus, it sets itself apart by also adding into the mix a cash back earning program, with a 5% cash back on different categories like gas stations, grocery stores (excluding Target® and Walmart®) and select online merchants on up to $1,500 in total combined purchases each quarter you activate. It also earns 5% cash back on travel purchased through Chase Ultimate Rewards, 3% cash back on dining (including restaurants, takeout and eligible delivery services) and on drugstore purchases and a 1% cash back on all other purchases.

    The card also lets you earn a $200 cash bonus after spending $500 on purchases within your first three months, which, together with all of the cash back you can earn via your purchases, can be redeemed as a statement credit, or have it direct deposited into most U.S. checking and savings accounts, as well as used towards gift cards or even travel. 

    Wells Fargo Active Cash® Credit Card vs. BankAmericard® Credit Card

    The Wells Fargo Active Cash® Credit Card can potentially give you more bang for your proverbial buck by packing both a 0% intro APR for 15 months from account opening on purchases and qualifying balance transfers as well as the ability to earn an unlimited and uncomplicated 2% cash back on all of your purchases.

    Additionally, it comes with a $200 cash rewards bonus when you spend $500 in purchases in the first 3 months, no annual fee, cellular telephone protection. And, as a Visa Signature card, it’s packed with benefits like rental car privileges, a 24/7 concierge and travel related benefits like lost luggage reimbursement and auto rental collision damage waiver, among many others.

    Is the BankAmericard® Credit Card right for you?

    Life sometimes throws unexpected situations your way, and having a card with a long repayment period can be useful in numerous situations. While some cards offer 0% APR on only balance transfer or only purchases, this card offers both, giving you the flexibility to transfer a balance in the beginning and also have a runway to use the card for purchases down the road.

    Frequently asked questions

    How long does it take for a balance transfer to take effect?

    • Balance transfers can take up to two weeks when processed along with a new credit card application, so as a best practice, it’s recommended to continue making payments to your creditors until you see the balance transfer post as a payment on those accounts. 

    Does it make sense to transfer balances?

    • Transferring a balance into a 0% intro APR card usually makes sense when you are not able to pay back your debt within a few billing cycles or if the amount is too large. You can take advantage of a long 0% intro APR period to slowly repay your debt before the introductory period runs out. However, if you are dealing with smaller amounts of debt, once you factor in the balance transfer fees involved, your savings from a lower interest card may not pan out.

    What is the maximum amount of money I can balance transfer?

    • There is no set amount of money from balances you can transfer into an account, however, do keep in mind that the transfer amount can never exceed the total credit you receive on your new account, plus you need to consider all applicable fees you will incur and any other purchases you intend to do with this credit card.

    Please note that card details are accurate as of the publish date, but are subject to change at any time at the discretion of the issuer. Please contact the card issuer to verify rates, fees, and benefits before applying.

    Ben Nickel-D’Andrea

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  • Americans opened their wallets for holiday spending, defying fears of a pullback

    Americans opened their wallets for holiday spending, defying fears of a pullback

    Shoppers weren’t entirely tight fisted during the holiday season, despite the ongoing pressure of inflation on household budgets.

    U.S. retail sales grew 3.1% this holiday season, according to a Mastercard poll that tracks in-store and online retail sales. Spending on restaurants increased 7.8% from last year, while apparel and grocery-related purchases were up 2.4% and 2.1%, respectively, according to Mastercard. 

    Robust consumer spending bodes well for the economy’s present and future, according to Goldman Sachs. 

    “We continue to see consumer spending as a source of strength in the economy and forecast above-consensus real spending growth of 2.7% in 2023 and 2.0% in 2024 in Q4/Q4 terms,” economists with the investment bank said in a mid-December report.

    Consumers proved more willing to shell out on online purchases compared to in-store purchases, with online sales growing 6.3% this holiday season versus a  2.2% increase in sales at brick-and-mortar stores, Mastercard’s data shows. 

    But not all retailers profited from shoppers’ open wallets.

    Pockets of worry

    Consumers spent 0.4% less on electronics and 2.0% less on jewelry compared to the 2022 holiday season, as price-conscious consumers cautiously embraced seasonal sales, Mastercard’s data shows.  

    For many consumers, increased spending over the holidays may also bring more debt. About 2 in 3 Americans say their household expenses have risen over the last year, with only about 1 in 4 saying their income had increased in the same period, according to an October poll from The Associated Press-NORC Center for Public Affairs Research.

    The strong holiday shopping turnout reinforces the likelihood the Fed will achieve its goal of so-called soft landing, some analysts say. Even so, some forecasters predict that consumer spending could peter out later next year.

    “PNC expects a decline in consumer spending in the second half of 2024 as the U.S. economy enters into a mild recession,” PNC analysts said in a research note. “High interest rates and modest job losses will cause households to turn more cautious. However, there’s still about a 45% probability that the U.S. economy avoids recession and consumer spending growth slows, but does not outright decline.”

    The Mastercard SpendingPulse excluded automotive purchases.

    Elizabeth Napolitano


    elizabeth-napolitano-cbsmoneywatch.jpg

    Elizabeth Napolitano is a freelance reporter at CBS MoneyWatch, where she covers business and technology news. She also writes for CoinDesk. Before joining CBS, she interned at NBC News’ BizTech Unit and worked on the Associated Press’ web scraping team.

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  • Fed sparking irrational market optimism over potential rate cuts, former FDIC Chair Sheila Bair warns

    Fed sparking irrational market optimism over potential rate cuts, former FDIC Chair Sheila Bair warns

    Market optimism over the potential for interest rate cuts next year is dangerously overdone, according to former FDIC Chair Sheila Bair.

    Bair, who ran the FDIC during the 2008 financial crisis, suggests Federal Reserve Chair Jerome Powell was irresponsibly dovish at last week’s policy meeting by creating “irrational exuberance” among investors.

    “The focus still needs to be on inflation,” Bair told CNBC’s “Fast Money” on Thursday. “There’s a long way to go on this fight. I do worry they’re [the Fed] blinking a bit and now trying to pivot and worry about recession, when I don’t see any of that risk in the data so far.”

    After holding rates steady Wednesday for the third time in a row, the Fed set an expectation for at least three rate cuts next year totaling 75 basis points. And the markets ran with it.

    The Dow hit all-time highs in the final three days of last week. The blue-chip index is on its longest weekly win streak since 2019 while the S&P 500 is on its longest weekly win streak since 2017. It’s now 115% above its Covid-19 pandemic low.

    Bair believes the market’s bullish reaction to the Fed is on borrowed time.

    “This is a mistake. I think they need to keep their eye on the inflation ball and tame the market, not reinforce it with this … dovish dot plot,” Bair said. “My concern is the prospect of the significant lowering of rates in 2024.”

    Bair still sees prices for services and rental housing as serious sticky spots. Plus, she worries that deficit spending, trade restrictions and an aging population will also create meaningful inflation pressures.

    “[Rates] should stay put. We’ve got good trend lines. We need to be patient and watch and see how this plays out,” Bair said.

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  • All About Cashback Credit Cards! | BankBazaar – The Definitive Word on Personal Finance

    All About Cashback Credit Cards! | BankBazaar – The Definitive Word on Personal Finance

    The joy of spending and saving simultaneously is assured with a Cashback Credit Card. But is that all? Learn more about the most popular Credit Card category in India right here!

    Did you know that there is an indisputable MVP when it comes to the top-selling Credit Card type in India? As per a recent survey, an impressive 65% of Credit Card users in India prefer the simplicity of cashbacks over air miles or loyalty points. Rather than intricate reward systems, most people favour accumulating cashback with every Credit Card transaction.  

    Although it may seem that you are getting mere pocket change with each transaction, the compounding effect is akin to loose change filling up a piggy bank. And the best thing is it all just happens so naturally with qualifying spends on your Credit Card.

    Essential ‘Cashback’ Guidelines 

    Before embarking on a cashback shopping spree, it is prudent to establish some fundamental guidelines. You must be aware of some of the general spend categories that do not provide any cashback. Mind you, this is not an exhaustive list.  

    Cash advances on Credit Card? Not permissible. Balance transfers? Uh huh! Foreign currency transactions or lottery ticket purchases? Regrettably, all these spend categories do not grant you access to the cashback club. On top of the above, there are certain cards that do not provide cashbacks on rent payments, wallet reloads, jewellery purchases, school/education fees, utility/insurance payments, gift cards/vouchers, and train tickets.

    Additional Reading: 8 Shocking Myths About Credit Cards & Credit Card Rewards 

    Your Preference Matters! 

    Cashback Credit Cards present a variety of options when it comes to cashback accumulation. Some adhere to a straightforward fixed percentage (ranging from 0.5% to 5%), regardless of the nature or location of your purchases. 

    Some adopt a more dynamic and tiered approach – the more you spend, the more you earn. To cite an example, you can earn 1% cashback if you spend less than Rs. 1 lakh annually and 2% cashback when you spend more than that. However, do spend wisely, as the pursuit of cashbacks can, at times, lead to reckless spending. 

    There are also category-centric cards, each offering distinct cashback rates for specific categories – fuel expenditures, dining experiences, online purchases being the most prominent. It can get you cashbacks that range from 0.5% to 5%. 

    Redeeming the Fruits of Your Efforts! 

    Now, let us delve into the most gratifying aspect of cashback rewards. Yes, redeeming them! Whether you wish to reduce your Credit Card bill through statement credits, indulge in an online shopping spree, or pick a gift card you like, the choices are abundant. 

    Some cards allow you to contribute your cashback to charities or embark on a dream vacation via their online portal. The flexibility even extends to using your cashback on platforms such as PayPal or Amazon.com – a testament to the versatility of these rewards. 

    Additional Reading: 7 Lesser-Known Perks Of Credit Cards 

    Strategies for Maximum Benefits! 

     For optimal cashback gains on your Credit Card, you must be aware of these strategies: 

    • Align your card with your spending style and be on the lookout for superior options as your credit habits evolve. 
    • Embrace bonus categories offered by your Credit Card and remember to keep track of them to maximise your benefits.
    • Seize limited-time offers as they present opportunities for additional cashback. 
    • Peruse the Credit Card agreement thoroughly for transactions ineligible for cashback to ensure a smooth experience

    What Else to Consider? 

     Cashback may not be everyone’s cup of tea, and a few factors warrant careful contemplation: 

    • Keep a watchful eye on annual fees, particularly if you are a modest spender, to avoid eroding your cashback gains. 
    • Resist the allure of cashback offers every now and then. Chasing cashbacks can often lead to overspending. Prioritise prudent financial decisions over impulsive choices. 
    • Ensure your favourite merchants/brands are on the approved list, aligning with the card’s specific focus, whether it be fuel, dining, or other categories. 
    • Familiarise yourself with any minimum monthly spending requirements or cashback caps imposed by your card. 

    That’s all, we hope our expedition through the captivating world of cashback Credit Cards has equipped you with some good insights. From selecting the right card to navigating the intricacies of cashback, you are now prepared to seize the opportunities that lie ahead. Time to seize the ‘cashback’ bull by the horns and embark on your Credit Card adventure! 

    Looking for something more?

    Personal Finance On The Go. Get The App!
    All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.

    Copyright reserved © 2023 A & A Dukaan Financial Services Pvt. Ltd. All rights reserved.

    Amith Kumar

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  • Looking for a terrific all-around cash-back credit card?

    Looking for a terrific all-around cash-back credit card?

    Why we like this card: The Chase Freedom Flex℠ card has $0 annual fee, and users can earn a hefty 5% cash back on activated bonus category purchases each quarter (up to $1,500 in purchases, then 1 percent). With additional benefits like an extended introductory annual percentage rate (APR) period, cell phone protection, and car rental collision coverage, this card is packed with perks.

    Pros

    • Up to 5% cash back on select spending categories
    • 0% introductory APR for 15 months 
    • Cell phone protection included 
    • $0 annual fee

    Cons

    • Bonus categories have quarterly limits on cash back
    • Most reward categories require activation
    • Charges foreign transaction fees

    Chase Freedom Flex Highlights

    • Welcome offer: $200 cash bonus after spending $500 on purchases within your first three months
    • Annual fee: $0
    • Rewards:
      • Unlimited 5% cash back on travel purchased through Chase Ultimate Rewards, including airline tickets, hotel accommodations, and car rentals 
      • Unlimited 3% cash back on drugstore purchases
      • Unlimited 3% cash back on dining (including restaurants, takeout and eligible delivery services)
      • Unlimited 1% cash back on all other purchases

    Overview

    The Chase Freedom Flex℠ card is a leading $0 annual fee credit card that offers extra benefits and higher cash-back rates on select spending categories. It’s a particularly useful card if you tend to focus spending on travel or dining out; with this card, you can earn 5% cash back on purchases made through Chase Travel and 3% cash back on restaurant meals, takeout, or delivery services. 

    Even though the $0 annual fee rewards card niche is crowded, the Chase Freedom Flex card stands out with a lengthy introductory APR period and extensive credit card benefits, so it could be a solid addition to your wallet. 

    Who is the Chase Freedom Flex good for?

    The Freedom Flex is best for those who want to maximize their rewards. The card offers outsized rewards on travel through Ultimate Rewards, dining and drugstores in addition to the 5% quarterly categories

    Who shouldn’t get the Chase Freedom Flex?

    If the idea of having to register for your 5% categories every quarter gives you a headache, you’ll do better with a flat-rate card like the Wells Fargo Active Cash.

    Chase Freedom Flex: Rewards

    The Chase Freedom Flex has static cash-back rewards categories as well as rotating bonus categories. With this card, you’ll earn the following cash back rates: 

    • Unlimited 5% cash back on travel purchased through Chase Ultimate Rewards, including airline tickets, hotel accommodations, and car rentals 
    • Unlimited 3% cash back on drugstore purchases
    • Unlimited 3% cash back on dining (including restaurants, takeout and eligible delivery services)
    • Unlimited 1% cash back on all other purchases

    The Chase Freedom Flex card also allows you to earn 5% cash back on Lyft rides (through March 2025).

    You can earn 5% cash back in certain spending categories that change throughout the year. In each category, you’ll earn 5% cash back on up to $1,500 in combined purchases for the quarter, but you must activate the category before you can earn the higher cash back rate.

    2023 Chase Freedom Flex Bonus Category Calendar
    January to March April to June July to September October to December
    Grocery stores (not including Walmart or Target)

    Fitness clubs and gym memberships

    		 Amazon.com

    Lowe’s

    		 Gas stations

    EV charging

    Select live entertainment

    		 Walmart, Paypal purchases, Warehouse Clubs and select charities

    Does the Chase Freedom Flex card offer a bonus?

    The Chase Freedom Flex card offers a new cardholder a $200 cash bonus after spending $500 on purchases within your first three months of opening an account. That amount of spending should be achievable for most households.

    How to redeem Chase Freedom Flex rewards

    There is no minimum threshold for reward redemption, and cash-back rewards won’t expire as long as your account is open. 

    When logged into your account, your cash-back rewards are displayed as points. Each point is worth one cent when you redeem your points for electronic deposits, statement credits, gift cards, or travel. When you use points to purchase products at Amazon, your point value may be less, so you’re likely better off avoiding that redemption method.

    Chase Ultimate Rewards

    You can use your points to book travel arrangements, such as cruises and airfare, through the Chase Ultimate Rewards travel portal. 

    Redeem for gift cards

    Chase’s cardholder portal allows you to redeem points for gift cards and certificates from major retailers and restaurant chains.

    Transfer to another card

    If you have other Chase rewards credit cards, you can transfer the points you earn with the Chase Freedom Flex card to another card. 

    Transferring your points may give you more value since some cards give users a higher redemption rate for points used to book travel through Chase Ultimate Rewards. For example, your points are worth 25% more with the popular Chase Sapphire Preferred® Card. If you transferred your Chase Freedom Flex points to the Sapphire Preferred card and redeemed them for travel arrangements, they’d be worth 1.25 cents each instead of one cent. 

    Chase Freedom Flex Rates and fees

    • Intro APR: 0% intro purchase APR for 15 months from account opening (after that, the variable APR will be 20.49%–29.24%)
    • Purchase APR: 20.49%–29.24% Variable
    • Balance transfer APR: 0% for the first 15 months after account opening. After that, 20.49% to 29.24%.
    • Balance transfer fee: $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that: Either $5 or 5% of the amount of each transfer, whichever is greater.
    • Annual fee: $0
    • Foreign transaction fee: 3% of the amount of each transaction in U.S. dollars

    Additional benefits

    The Chase Freedom Flex card offers several benefits and perks, including: 

    • Cell phone protection: When you use the Chase Freedom Flex card to pay your monthly cell phone bill, you’ll automatically get cell phone protection. Through this benefit, you can get reimbursed up to $800 per claim, up to a maximum of $1,000 per year, for qualifying incidents of theft or damage. You can submit up to two claims per year, with a $50 deductible per claim. 
    • Purchase protection: Purchases of items made with your card are covered for 120 days against damage or theft, up to a maximum of $500 per claim and $50,000 per account. 
    • Extended warranty protection: If you purchase an item with a warranty of three years or less, Chase will extend the manufacturer’s warranty by one year.
    • Trip cancellation/interruption insurance: Book your travel arrangements with your card, and you can be reimbursed up to $1,500 per person and $6,000 per trip for your pre-paid, non-refundable passenger fares if your trip is canceled or interrupted due to sickness, severe weather, or other qualifying issues. 
    • Collision damage waiver on car rentals: Pay for your car rental with your card and decline the rental company’s coverage to get the auto rental damage collision waiver benefit. The waiver provides coverage against theft or damages resulting from a collision. In the United States, the waiver provides secondary coverage, meaning it supplements your personal car insurance policy. 
    • Roadside assistance: As a cardholder, you have  access to roadside assistance, so you can call for help if your car breaks down and you need a jump start, fuel delivery, tire change, or towing. You’re responsible for the cost of any services provided. 
    • Travel and emergency assistance services: If you’re traveling and have a medical or legal emergency, you can call the card benefit administrator to get referrals to emergency services. However, you’re responsible for the cost of any of the services provided. 

    Additionally, the Chase Freedom Flex card provides the following benefits through partnering companies: 

    • Complimentary DoorDash DashPass membership: Cardmembers get three months of DashPass free. With DashPass, you can take advantage of unlimited deliveries with $0 delivery fees and reduced service fees. After the three-month period ends, you’re automatically enrolled in DashPass membership at 50% off the normal rate. 
    • Complimentary Instacart+ membership: If you use Instacart for grocery delivery, the Chase Freedom Flex card gives you three months of Instacart+ membership so you can enjoy deliveries without a delivery fee and reduced service fees. When you enroll, you can also qualify for up to $10 in statement credits each quarter through July 31, 2024. 

    Credit cards similar to Chase Freedom Flex

    If you’re not sure if the Chase Freedom Flex is right for you, find out how it stacks up to some other popular cards with no annual fees: 

    Discover it Cash Back vs. Chase Freedom Flex

    Like the Chase Freedom Flex card, the Discover it® Cash Back card allows you to earn up to 5% cash back on rotating spending categories, including purchases made at Amazon, restaurants, or grocery stores, up to a quarterly maximum. You’ll also earn 1% cash back on all other purchases. 

    At the end of your first year as a cardholder, Discover will match all of the cash back you earned. Depending on your spending habits, that offer could give you a higher bonus than you’d get through the Chase Freedom Flex card.  

    However, the Chase Freedom Flex card offers protections and benefits that the Discover it card does not. With the Chase Freedom Flex card, you get access to cell phone protection, travel interruption coverage, and car rental insurance. The Discover it card doesn’t offer any of those benefits, so the Chase Freedom Flex card has the edge. 

    Capital One SavorOne Cash Rewards

    If you’re a foodie and love dining out, the Capital One SavorOne Cash Rewards Credit Card from Capital One may be a better choice than the Chase Freedom Flex card. The SavorOne Rewards card doesn’t have rotating spending categories; instead, you can earn unlimited unlimited 3% cash back on dining, entertainment, popular streaming services, and at grocery stores (excluding superstores like Walmart® and Target®). Plus, you’ll earn unlimited 1% on all other purchases. 

    Although the card doesn’t offer a higher cash back rate on travel like the Chase Freedom Flex card, the SavorOne card charges 0% foreign transaction fees, making it a convenient option if you’re traveling outside the U.S. 

    Is the Chase Freedom Flex right for you?

    If you have good credit and want to maximize your cash-back rewards, the Chase Freedom Flex could be a good choice. You can earn up to 5% cash back in certain categories, including 5% on rotating bonus categories, and get extra benefits like cell phone protection without having to pay an annual fee. 

    Plus, Chase has a strong reputation for customer satisfaction. In the 2023 J.D. Power U.S. Credit Card Satisfaction Study, Chase was ranked fifth overall for customer satisfaction and fifth for no-annual-fee cards. The study evaluated cards based on account management, benefits, customer service, new account setup, rewards, redemption options, and terms. 

    However, the card may not be the best option for those who don’t want the hassle of activating bonus categories each quarter. If you prefer a simpler card experience, a card that offers a flat cash-back rate may be a better choice. 

    The Chase Freedom Flex card does charge foreign transaction fees, so it’s not the best card to take with you when traveling to other countries

    Frequently asked questions

    Is the Chase Freedom Flex card hard to get?

    Although Chase doesn’t disclose a minimum score requirement, it typically requires applicants to have good to excellent credit for the Chase Freedom Flex card, meaning a score between 670 and 850. If your score is below that range, you may need to wait until your score has improved before applying. 

    According to Experian, 67% of consumers have a score of 670 or better, so most people will meet Chase’s credit requirements for this card. 

    What is the minimum credit limit for the Chase Freedom Flex card?

    The minimum credit limit for the Chase Freedom Flex card is $500. However, depending on your creditworthiness, you could qualify for a substantially higher limit; some users reported credit limits as high as $22,500. 

    What are the perks of the Chase Freedom Flex card? 

    The Chase Freedom Flex card provides some valuable perks for a card without an annual fee, including cell phone protection, travel interruption and cancellation insurance, auto rental collision damage waiver, and extended warranty protection. 

    Is the Chase Freedom Flex card a Visa or Mastercard? 

    There are four major credit card networks: American Express, Discover, Mastercard, and Visa. The Chase Freedom Flex card belongs to the Mastercard network. Mastercard and Visa are the industry leaders, making up 85% of general-purpose credit cards in the U.S.

    Please note that card details are accurate as of the publish date, but are subject to change at any time at the discretion of the issuer. Please contact the card issuer to verify rates, fees, and benefits before applying.

    Kat Tretina

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  • Upgrade says its secured card has trifecta of differentiators

    Upgrade says its secured card has trifecta of differentiators

    A fintech company has launched a secured credit card, the second to do so in two months. 

    Upgrade, which offers checking and savings accounts, credit and loans through its bank partners, announced on Wednesday the launch of Secured OneCard, a secured version of its Upgrade OneCard. OneCard is a hybrid debit/credit card with “pay now” or “pay later” options the company started testing earlier this year. It follows the recent launch of NerdWallet’s secured NerdUp card, which was announced in October.

    Renaud Laplanche, co-founder and CEO of Upgrade, says  three things set his company’s secured card apart from other options.

    One is the ability to earn cash back of 1.5% to 3% depending on the type of purchase and whether users have met certain conditions. Another is the 5.07% yield users earn on the funds they keep in their Upgrade savings account that secure their credit line. A third is a “graduation” mechanism where Upgrade will examine its customers’ card usage, credit history and other factors to determine a good time to elevate them to the unsecured version, starting at the three-month mark. Users will keep the same card and will not have to change card numbers. 

    “We feel that we are giving users good value with high cash back and high APY on savings, but setting them up well for the future with the ability to build credit and have a pretty smooth transition to unsecured credit once they’ve earned it,” said Laplanche in an interview.

    There are no annual or late fees; the interest rate is a fixed 19.99%. Users must start with a minimum balance of $200. 

    Like NerdUp, the card was not designed to be profitable in its early days. The hope is that people will remain enmeshed with the brand and its products after using the card. It is intended for people with low or no credit, including young cardholders and recent immigrants. 

    “It’s not a product that is designed to make money,” said Laplanche. “It’s a way to help consumers build their credit.” Another card in Upgrade’s portfolio, Upgrade Select, is also considered entry-level, with unsecured credit lines maxing out at $2,000.

    The Upgrade OneCard is issued by the $2 billion-asset Sutton Bank in Attica, Ohio.

    Some of these features differentiate the secured OneCard, said Tony DeSanctis, a senior director at Cornerstone Advisors, including the cash-back rewards and the graduation strategy. But as with NerdUp’s cash rewards, “it does impact the economics pretty significantly,” he said. 

    “My guess is that since most folks looking for secured cards are not likely to move their deposit relationship to a new provider like this just to get rewards, the deposit-gathering side of this will not be as successful on the secured side as it is for the regular card,” DeSanctis said.

    There are a range of credit-building mechanisms offered by fintechs and financial services companies, from having users set aside a sum of money each month that will be drawn upon to make payments to checking accounts that translate on-time bill payments into evidence of creditworthiness. 

    Although the success of Chime’s credit builder card suggests other fintechs can enjoy the same success, “I am not sure [the Upgrade and NerdWallet products] will make a dent,” said DeSanctis.

    Miriam Cross

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  • The Federal Reserve's period of rate hikes may be over. Here's why consumers are still reeling

    The Federal Reserve's period of rate hikes may be over. Here's why consumers are still reeling

    The Federal Reserve announced it will leave interest rates unchanged Wednesday, in a move that many believe will conclude the central bank’s rate hike cycle and set the stage for rate cuts in the year ahead.

    The Fed has raised interest rates 11 times since March 2022 — the fastest pace of tightening since the early 1980s. The spike in interest rates caused consumer borrowing costs to skyrocket while inflation remained elevated, putting many households under pressure.

    Although the central bank indicated it will continue to pursue its 2% inflation target, “the real question at this stage is when they’ll begin cutting,” said Columbia Business School economics professor Brett House.

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    The federal funds rate, which is set by the U.S. central bank, is the interest rate at which banks borrow and lend to one another overnight. Although that’s not the rate consumers pay, the Fed’s moves still affect the borrowing and savings rates they see every day.

    Here’s a look back at how the central bank’s rate hike cycle affected everything from mortgage rates and credit cards to auto loans and student debt, and what may happen to borrowing costs next.

    Credit card rates jumped to nearly 21% from 16%

    Most credit cards come with a variable rate, which has a direct connection to the Fed’s benchmark rate.

    After the previous rate hikes, the average credit card rate rose from 16.34% in March 2022 to nearly 21% today — an all-time high.

    Between high inflation and record interest rates, consumers will end the year with $100 billion more in credit card debt, according to data from WalletHub. Not only are balances higher, but more cardholders are carrying debt from month to month.

    Going forward, APRs aren’t likely to improve much. Credit card rates won’t come down until the Fed starts cutting and even then, they will only ease off extremely high levels, according to Greg McBride, chief financial analyst at Bankrate.

    “Credit card debt is high-cost debt in any environment but that’s particularly true now and that’s not going to change,” he said.

    Mortgage rates hit 8%, up from 3.2%

    Although 15-year and 30-year mortgage rates are fixed, and tied to Treasury yields and the economy, anyone shopping for a new home lost considerable purchasing power, partly because of inflation and the Fed’s period of policy tightening.

    In fact, 2023 was the least affordable homebuying year in at least 11 years, according to a report from real estate company Redfin.

    “Mortgage rates rocketed higher from record lows to more than 20-year highs,” McBride said.

    After hitting 8% in October, the average rate for a 30-year, fixed-rate mortgage is currently 7.23%, up from 4.4% when the Fed started raising rates in March of 2022 and 3.27% at the end of 2021, according to Bankrate.

    A “For Sale” sign outside a house in Edmonton, Alberta, in Canada on Oct. 22, 2023.

    Nurphoto | Nurphoto | Getty Images

    Already, though, housing affordability is showing signs of improvement heading into the new year.

    “Market sentiment has significantly shifted over the last month, leading to a continued decline in mortgage rates,” said Sam Khater, Freddie Mac’s chief economist. “The current trajectory of rates is an encouraging development for potential homebuyers,” he added, kickstarting a “modest uptick in demand.”

    McBride also expects mortgage rates to ease in 2024 but not return to their pandemic-era lows. “You are still looking at rates in the 6s, not rates in the 3s or 4s,” he said.

    Auto loan rates surpassed 7%, up from 4%

    Even though auto loans are fixed, car prices had been rising along with the interest rates on new loans, leaving more consumers facing monthly payments that they could barely afford.

    The average rate on a five-year new car loan is now 7.72%, up from 4% when the Fed started raising rates, according to Bankrate.

    “The largest segment of consumers financing a new car today has a 7.9% APR,” said Ivan Drury, Edmunds’ director of insights. “That’s a far cry from those spring 2020 pandemic deals of 0% financing for 84 months that drove significant sales of large trucks and SUVs.”

    But despite high interest rates, vehicle affordability is improving, with new car prices decreasing year over year and sales incentives increasing.

    “The new-vehicle market is shifting to a buyer’s market, not a seller’s market,” according to Cox Automotive research.

    Federal student loans are at 5.5%, up from 3.73%

    Federal student loan rates are also fixed, so most borrowers weren’t immediately affected by the Fed’s moves. But undergraduate students who took out new direct federal student loans this year are paying 5.50%, up from 4.99% in the 2022-23 academic year and 3.73% in the 2021-22 academic year.

    Private student loans tend to have a variable rate tied to the prime, Treasury bill or another rate index, which means those borrowers are paying even more in interest. How much more, however, varies with the benchmark.

    Now that federal student loan payments have restarted after a three-year reprieve, interest is also accruing again, and the transition back to payments has proved painful for many borrowers.

    However, if the Fed cuts rates in 2024, that may open the door to some refinancing opportunities, which could help.

    High-yield savings rates topped 5%, up from 1%

    While the Fed has no direct influence on deposit rates, the yields tend to be correlated to changes in the target federal funds rate.

    The savings account rates at some of the largest retail banks, which were near rock bottom during most of the Covid-19 pandemic, are currently up to 0.46%, on average, according to the Federal Deposit Insurance Corporation.

    Top-yielding online savings account rates have made more significant moves and are now paying over 5% — the most savers have been able to earn in nearly two decades — up from around 1% in 2022, according to Bankrate.

    Even though those rates are peaking, “from a savings standpoint, 2024 is still going to be a really good year for savers because inflation is likely to decline faster than the yields on savings accounts,” McBride said.

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  • The Federal Reserve could achieve a soft landing after all. Here's what that would mean for you

    The Federal Reserve could achieve a soft landing after all. Here's what that would mean for you

    The Federal Reserve is expected to announce it will leave rates unchanged at the end of its two-day meeting this week after recent signs the economy is in fairly good shape and as inflation continues to drift lower.

    “While there’s been talk about an imminent recession going back to early last year, the U.S. economy has remained substantially more resilient than expected,” said Mark Hamrick, senior economic analyst at Bankrate. 

    “A soft landing appears to be the greatest likelihood for next year,” he said. However, the economy isn’t out of the woods just yet, Hamrick added, and “a mild and short recession can’t totally be ruled out.”

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    Even though inflation is still above the central bank’s 2% target, markets have already been pricing in the likelihood that the Fed is done raising interest rates this cycle and is now looking toward potential rate cuts in 2024.

    For consumers, that means relief from high borrowing costs — particularly for mortgages, credit cards and auto loans — may finally be on the way as long as inflation data continues to cooperate.

    And yet, “continued slowing in inflation doesn’t mean price decreases, it means a price leveling,” said Columbia Business School economics professor Brett House.

    Hope for a ‘softish’ landing

    If the central bank can continue to make progress toward its 2% target without bringing the economy to a more abrupt slowdown, there is the possibility of achieving the sought-after “Goldilocks” scenario.

    In that case, the economy would grow enough to avoid a recession and a negative hit to the labor market, but not so strongly that it fuels inflation.

    For consumers, that means “we are likely to see interest rates come down slowly and growth to remain relatively robust and we are likely to see the jobs market remain relatively strong,” House said.

    For some, that expectation may be too optimistic.

    “While we also expect a softish landing, the pace of the recent rally in stocks and bonds looks unlikely to be sustained,” Solita Marcelli, UBS Global Wealth Management’s chief investment officer Americas, wrote in a recent note.

    “Equity markets are already pricing in plenty of good news, pointing to an unrealistic level of confidence from stock investors,” Marcelli said.

    Markets are now even showing a roughly 13% chance of a rate cut as early as January, according to the UBS note.

    Fears of a hard landing

    Central bank policymakers, however, won’t cut for the sake of cutting. More likely, that kind of policy easing would be in response to a sharply slowing economy and rising unemployment, neither of which would be good news for most Americans.

    “Aggressive rate cutting cycle would be a sign of deep worry that we are heading toward a hard landing,” House said. That has negative implications for the labor market and, therefore, consumers. “The most important determinant of household finances is whether people have a job or not,” House said.

    And economists still haven’t ruled out a recession in the second half of 2024.

    The job market already shows signs of slowing. While the unemployment rate declined to 3.7%, the Labor Department reported that job openings also fell to 8.73 million in October, the lowest level since March 2021.

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  • The risks of credit repair companies in Canada – MoneySense

    The risks of credit repair companies in Canada – MoneySense

    Some companies claim they can repair your credit and solve your debt problems quickly. However, you can only rebuild credit and there’s no quick fix to do so. We’ll walk you through why you should be skeptical of companies offering credit repair services and explore other ways to rebuild and maintain strong credit. 

    The importance of strong credit in Canada

    It’s important to have a good credit score so you can get a loan, be approved for a credit card, buy a home and a car. And you want to get the best interest rates when doing so. A credit score may also determine whether a landlord approves your rental application, and employers might even consider credit histories in their hiring process. Having a strong credit score shows you are good at managing debt and credit. In contrast, bad credit suggests you are a risky bet to lenders because you may be having problems with money. 

    Why someone might reach out to a credit repair service

    The average Canadian owes more than $21,000 in consumer debt. When you have a lot of debt and other monthly bills to take care of, it can become difficult to manage and make all of your payments on time, especially amid high inflation and rising costs of living. However, if you don’t manage your payments on time, your credit score will take a hit. Feeling desperate in a financial situation can cause anyone to make a bad decision. But many people run into further financial problems by trying to repair their credit with a quick fix.

    How credit repair companies work

    Credit repair companies say they will repair your credit by removing negative information from your credit report, thus boosting your credit score—for a costly, upfront fee. They may also offer to negotiate with credit reporting agencies to improve your credit score or encourage you to take out a high-interest loan to pay off your debts. Be aware that these credit repair companies make money from fees, set-up costs and interest, so you may be left with even more debt without any changes to your credit score.

    These companies often take advantage of the fact that many Canadians don’t know you can’t remove accurate information from your credit report—even if it’s bad. You should be skeptical if a company says they can remove accurate, negative information from your history.

    Pay attention to the warning signs

    Many Canadians run into further financial problems as they attempt to “repair” their credit because they fall victim to credit repair scams. Credit repair services are different from not-for-profit credit counselling agencies. The latter are typically a free service offering non-profit financial education and advice. But back to the scams, here are the warning signs that a company offering credit repair services is likely a scam: 

    • They request an “upfront” payment (this is illegal under Canadian consumer protection laws)
    • They offer instant approval for loans or other credit products without fully understanding your financial situation
    • They call themselves a “credit repair company” 
    • They request payment by gift cards
    • They use high-pressure sales tactics
    • They say they “erase” your negative credit information
    • They don’t provide a transparent contract (or any contract at all)
    • They warn you against contacting a credit bureau

    How to rebuild your credit in Canada

    Accurate negative information on your credit report cannot magically go away; it’s there until it falls off your credit report, which takes about six years. If your credit report isn’t great, the only way you can go about “fixing” it is by rebuilding it with a positive credit history. You have to show your creditors that your financial habits have improved, which takes time. Here’s what you can do to get the ball rolling: 

    1. Review your credit

    It is important to review your credit report regularly by getting a free copy of your credit history from both Equifax Canada and TransUnion. Look over the report to see what’s documented and if the information is correct. For no charge, you can remove incorrect information by filing a dispute with the credit reporting company.

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  • Navy Federal More Rewards American Express Credit Card: Earn rewards on your everyday spending with this $0 annual fee card

    Navy Federal More Rewards American Express Credit Card: Earn rewards on your everyday spending with this $0 annual fee card

    Why we like this card: The Navy Federal More Rewards American Express Credit Card is a $0 annual fee card offering a generous rewards rate on everyday spending categories. Plus, cardholders can score a decent welcome bonus.

    Pros

    • No annual or foreign transaction fee
    • Solid rewards rate on everyday spending categories
    • Low APR on purchases

    Cons

    • Must be a Navy Federal Credit Union member to qualify
    • No 0% intro APR on purchases or balance transfers

    Navy Federal More Rewards American Express Credit Card: Overview

    APR

    • Intro APR: None 
    • Purchase: 14.90%–18.00% variable
    • Balance transfer: 14.90%–18.00% variable
    • Cash advance: 2% above your variable APR. There’s no transaction fee if you receive a cash advance at a Navy Federal branch or ATM. Otherwise, the fee is $0.50 per domestic transaction or $1.00 per foreign transaction.
    • Penalty: 18.00%, plus a fee of up to $20 for late or returned payments

    Annual fee: $0

    Foreign transaction fee: None

    While you’ll need to be a credit union member to sign up for the Navy Federal More Rewards Amex Card, there are few other requirements for card membership. The card doesn’t charge annual or foreign transaction fees and is available to cardholders with average credit.

    Cardholders can also use the Navy Federal More Rewards card to earn points on their essential expenses—like gas and transit—so it’s a practical, affordable card option. If you do incur a balance on the card, you won’t have to worry about paying sky-high interest rates either, the purchase APR is 14.90%–18.00% variable.

    Navy Federal More Rewards American Express Credit Card: Rewards 

    With the Navy Federal More Rewards Amex Card, you don’t have to keep track of rotating rewards categories. You’ll earn a fixed rewards rate on spending in select categories.

    • 3X points at restaurants and on food delivery
    • 3X points at supermarkets
    • 3X points on gas and transit
    • 1X points on everything else

    Does Navy Federal More Rewards American Express Credit Card offer a new customer bonus?

    You can earn 20,000 bonus points, worth $200 when you spend $1,500 within 90 days of account opening

    How to redeem Navy Federal More Rewards American Express Credit Card points

    Purchase travel, gift cards, and merchandise

    You can redeem points through the mobile app, using your points to pay for merchandise, hotel stays, car rentals, cruises, flights, gift cards, and more.

    Earn cash back and cover past transactions

    You can redeem points for cashback by getting them credited to your savings account, receiving a statement credit, or using your points to pay for transactions already posted to your account within the past 90 days. With the Pay with Points method, you can cover up to three transactions that total a minimum of $50.

    Additional benefits

    • Statement credit for Walmart+. Receive a one-time $49 statement credit when you buy an annual Walmart+ membership. Note that the cost of an annual Walmart+ membership is $98, so this statement credit covers only 50% of the membership cost. 
    • Car rental loss and damage insurance. When you rent a car and charge the cost to your credit card, you could be eligible for insurance coverage if there’s damage or loss to the car.
    • Up to 25% off car rentals. Get discounts at major car rental companies worldwide. 
    • Free credit score access. See your FICO score by using the Navy Federal Credit Union app.
    • Roadside assistance. If your vehicle breaks down or an accident occurs, you can get roadside assistance like towing and emergency roadside repairs.
    • Access to travel discounts, entertainment deals, and shopping benefits. Cardholders get Amex-exclusive perks like Amex offers, a site that offers cash back on select purchases and an Amex travel service for booking hotels and more.

    Is the Navy Federal More Rewards American Express Credit Card right for you?

    This card is best for cardholders who want a $0 annual fee card with a reasonable rewards rate and welcome bonus. This card is a good fit for cardholders who want flexibility when it comes to redeeming their rewards: You can get a statement credit, buy flights, or more.

    The major drawback of this card is that you must be a Navy Federal Credit Union member to be eligible. To qualify for a membership, you must be a current or retired armed forces servicemember or immediate family member of one. Department of Defense Personnel are also eligible.  

    Credit cards similar to Navy Federal More Rewards American Express Credit Card

    If you don’t qualify for a Navy Federal Credit Union membership, fret not. There are cards, like the Wells Fargo Autograph Card, that offer similar rewards and welcome bonuses without a credit union membership requirement. 

    Wells Fargo Autograph℠ Card vs. Navy Federal More Rewards American Express Credit Card

    Like the Navy Federal More Rewards, Autograph cardholders don’t pay annual or foreign transaction fees and earn rewards on essential expenses. With the Autograph card, you can earn 3X points on restaurants, travel, gas stations, transit, popular streaming services, and phone plans. Plus, 1X points on all other eligible purchases. 

    This card is also a better option for cardholders who plan to splurge on big-ticket items and want a few months to pay it off interest-free. Autograph cardholders get a 0% intro APR period on purchases for 12 months from the date of account opening. After that, the variable APR will be 20.24%, 25.24%, or 29.99% based on your creditworthiness.

    Frequently asked questions

    Is Navy Federal More Rewards American Express card worth it?

    The Navy Federal More Rewards American Express is $0 annual fee card that could be worth signing up for if you spend a lot of money on gas, transit, restaurants, and supermarkets, as the card offers a high rewards rate in those spending categories.

    What credit score do you need for Navy Federal More Rewards American Express card?

    You’ll need an average credit score or better to qualify for the card. This means you should aim for a FICO score of 630 or better to be eligible.

    Can you get an Amex through Navy Federal?

    Yes, some cards issued by Navy Federal Credit Union are Amex cards. 

    Please note that card details are accurate as of the publish date, but are subject to change at any time at the discretion of the issuer. Please contact the card issuer to verify rates, fees, and benefits before applying.

    Fortune Recommends™ credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.

    Trina Paul

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  • The Cost of Doing Business With China? A $40,000 Dinner With Xi Jinping Might Be Just the Start

    The Cost of Doing Business With China? A $40,000 Dinner With Xi Jinping Might Be Just the Start

    Updated Nov. 28, 2023 12:54 am ET

    Broadcom Chief Executive Hock Tan shelled out $40,000 to sit at Xi Jinping’s table for the Chinese leader’s recent dinner in San Francisco with the heads of American businesses. Tan had a lot more at stake—a $69 billion deal he was waiting on China to approve.

    For months, Chinese regulators wouldn’t clear the U.S. chipmaker’s bid to buy enterprise software developer VMware, leading Broadcom to put off its date for completion of the deal—first announced in May 2022—three times. Beijing had held up previous mergers involving U.S. companies. Intel’s planned acquisition of Israeli firm Tower Semiconductor, for more than $5 billion, was scuttled in August after Chinese regulators failed to approve it.

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