Okay, let’s jump into the rewards and see what’s there.

Rewards

You get 3 percent Cash back at U.S. gas stations and on gasoline at Costco on up to $4,000 per year in purchases. After you reach the cap, you get 1 percent. Now, these gas stations are not eligible for rewards: superstores, supermarkets, convenience stores, and warehouse clubs other than Costco.

You also get 2 percent cash back at U.S. restaurants and on eligible travel purchases. Eligible travel purchases include these: airfare for a scheduled flight on a passenger carrier, hotel stays (not including banquets, timeshares and events), car rentals from select major car rental companies listed on this rewards website, and other purchases from Costco Travel, cruise lines, travel agencies and tour operators.

Plus, you get 1 percent on all other eligible purchases. You’ll receive your cash back annually in the form of a reward coupon that will be on the last page of your February billing statement. You can redeem the coupon at a U.S. Costco warehouse, including Puerto Rico, for merchandise or cash. If you want cash, you can request a check at Costco, but fulfilling the request is at their discretion.

Important note: Your coupon must be redeemed in person prior to its expiration date of August 31st in the year in which it is issued. So you have six months to redeem the coupon. Not thrilled about these restrictions, but if you shop at Costco, this shouldn’t be a problem.

Rates and fees

You do need excellent credit to qualify for the TrueEarnings Card. Like many rewards credit cards, the interest rate isn’t fabulous, so be sure you don’t carry a balance.

APR: You get a zero percent intro APR for six months. After that, you get a variable rate of 15.24 percent.

Balance transfers: You get a variable rate of 15.24 percent. The transfer fee is 3 percent.

APR for cash advances: You get a variable 25.24 percent and there’s a 3 percent transaction fee. Remember that interest on a cash advance begins immediately. Just say no to a cash advance.

Annual fee: There’s no annual fee, but you do have to have a paid Costco membership. You can get the basic membership for $55.

Foreign transaction fees: They’re 2.7 percent.

The bottom line

Overall, the TrueEarnings Card from Costco and American Express gets a thumbs-up from me. I’d like to see more flexibility when it comes to redeeming rewards, but other than that, this is a nice option for those who want to save money on gas expenses and on dining. If you also love to shop at Costco and you pay for the membership anyway, this is a good deal.

If you’re interested in the TrueEarnings Card from Costco and American Express, you can Apply Here.

Note: Credit card agreements change frequently. So my review is based on the information that was in effect today. Be sure you read all the disclosure statements carefully in case the issuer has made changes.

Disclaimer: This content is not provided or commissioned by American Express. Opinions expressed here are author’s alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.

The post TrueEarnings Card from Costco and American Express Review appeared first on Beverly Harzog.

Rewards

This card doesn’t have any rewards, but I still think it’s a good option for those just looking for a balance transfer. Now, this isn’t a reward, but I do like the 24/7 concierge service. You can get help booking your flights, hotel rooms and more. It’s a nice perk, don’t you think?

You can also save money with Citi Price Rewind. Per the Citi Price Rewind website: If within 30 days of the original purchase, Citi Price Rewind can find a lower price of at least $25 on retailers’ sites for an eligible item you purchased entirely with your Citi card, you can be refunded the price difference. 

Rates and fees

The outstanding feature for the Citi Diamond card is the long intro period for balance transfers. You also get the same intro rate for purchases, but I encourage you not to use the card for purchases until you pay your balance off.

APR for purchases: You get a zero percent intro APR for 18 months. After that, you get a variable rate of 11.99 percent, 16.99 percent, or 21.99 percent, based on your creditworthiness.

APR for balance transfers: You get a zero percent intro APR for 18 months. Awesome! After that, you get a variable rate of 11.99 percent, 16.99 percent, or 21.99 percent, based on your creditworthiness. The transfer fee is 3 percent.

Note: This offer applies to balance transfers that are completed within four months of opening your account. It can take a few weeks to process a transfer, so don’t wait until the last minute.

APR for cash advances: You get a variable 25.24 percent and there’s a 5 percent transaction fee. Interest on a cash advance starts ticking right away. So here’s what you say to a cash advance: No freakin’ way!

Annual fee: None.

Foreign transaction fees: It’s 3 percent.

The bottom line

Overall, I give the Citi Diamond Preferred Card a thumbs up. This card offers a good way to pay off your debt. Make sure you determine how much you need to pay each month to get your balance to zero in 18 months.

Example: You transfer $7,000, which means you pay a $210 transfer fee. Your monthly payment will be 7,210/18 = $400.56.

I know you get the intro rate on purchases, too, but don’t buy new stuff with the Citi Diamond card until your balance is zero. And once you accomplish that, your Citi Diamond card gives you access to Citi Private Pass, a web-based entertainment access program for eligible Citi cardholders.

You can purchase presale tickets, VIP packages to concerts, preferred tickets, and experiences in categories such as shopping, nightclubs, and family entertainment. Preferred tickets are seats set aside for Citi cardmembers. Something to look forward to when you’re out of debt!

If you’re interested in the Citi Diamond Preferred Card, you can Apply Here.

Note: Credit card agreements change frequently. So my review is based on the information that was in effect today. Be sure you read all the disclosure statements carefully.

The post Citi Diamond Preferred Card Review appeared first on Beverly Harzog.

You’ll pay it back when the next statement arrives. Or maybe the one after that. What’s the harm, right?

Well, there’s plenty of potential harm. Getting a cash advance on a credit card can lead you into a world of hurt. If you read my credit card reviews, you know that when I get to the part about cash advances I always say something like, “Don’t get a cash advance on a credit card unless your life depends on it!” I know that’s a little dramatic,  but you know how I get when I’m riled up.

I’ve seen APRs for cash advances inch up a little lately. So I see a situation where too many folks could get this “easy money” and fall right into credit card debt. Here’s why it could happen.

Reason#1: No Grace Period

When you purchase an item, you usually get a grace period, which is around 21 to 25 days. If you pay the full balance before the grace period ends, you don’t pay any interest. But on a cash advance, the interest clock starts ticking as soon as it’s posted to your account. You can’t avoid paying interest on a cash advance. And if things don’t go as planned and you don’t pay the advance back quickly, the compound interest will kill you.

Reason #2: High Interest Rates

Along with the lack of a grace period, cash advances usually come with a high APR. Many folks aren’t aware that the APR for the cash advance is rarely, if ever, the same as it is for purchases. You can have a 12.99 percent APR for purchases, but have a 24.99 percent APR for cash advances. So not only are you paying interest from the get-go, you’re paying it at loan-shark rates.

Reason #3: Transaction Fees

This little tidbit often catches people by surprise. There’s a fee for the convenience of a cash advance and it’s usually 3 percent to 5 percent. Let’s say the APR is 25 percent (because I like easy math!) and the transaction fee is 5 percent. So if you get $500 from the ATM, you’re going to have to pay $25 for the transaction fee. If you borrow the $525 for one year, you could end up paying around $600, with interest, by the time this is over (per Bankrate’s credit card calculator). And if you’re already carrying a balance, the amount of interest will be even higher.

Just Say No to Cash Advances

Listen, I’ve talked to so many people who had every intention of paying back their cash advances the very next month. I know I say this a lot, but life is awful messy. Just yesterday I walked into the laundry room and noticed the ceiling had water stains. This leak (related to a balcony off of an upstairs bedroom) has already been fixed once, and it wasn’t cheap the first time I had it fixed. I’m grateful that I have no debt (other than my mortgage) because I’ll need extra funds to fix this leak. Again.

If you don’t have the cash, take a deep breath and wait until you have the money free and clear. But if you really, really need cash, explore other options first. See if you can get a personal loan from your bank, check into peer-to-peer lending, or perhaps ask for a loan from a family member. Hint: If you do get a loan from a family member, make sure you put it in writing and be diligent about paying back the loan, including any interest you agree to.

The post 3 Reasons You Should Never Get a Cash Advance on a Credit Card appeared first on Beverly Harzog.

These cards are designed for small business owners. You can benefit from these cards whether you’re a sole proprietor, an LLC, or a corporation with 20 employees. If you do have employees, you get free additional cards with the Ink Bold card.

You’ll like the sign-up bonus for the Ink Bold card. When you spend $5,000 within the first three months, you get 50,000 bonus points, which is worth $625 in travel rewards if you use the Ultimate Rewards booking tool.

Rewards

Your rewards are earned as points. Point value varies depending on your redemption choices. For travel, one point can be worth up to 1.25 cents instead of the standard, which is one point equals one cent.

Okay, let’s take a look at the rewards:

• You get 5 points per $1 spent on the first $50,000 spent annually at office supply stores and on cellular phone, Internet, landline, and cable TV services (equipment purchases are excluded). After you reach the cap, you get 1 percent cash back.

• You get 2 points per $1 spent on the first $50,000 spent annually at gas stations and on hotel accommodations (if you book directly with the hotel). After you reach the cap, you get 1 percent cash back.

• You get 2 points per $1 spent when you book your travel through Chase’s Ultimate Rewards. You also get 20 percent off travel when you use the Ultimate Rewards booking tool. For example: A $625 flight only costs you 50,00 points.

• You get 1 percent on all other purchases.

• There’s no limit to the amount of points you can earn and they do not expire.

You can redeem points for travel, merchandise, cash back, and gift cards. You can learn more about earning and redeeming points on Chase’s Ultimate Rewards right here.

You also get membership in Lounge Club, which includes over 350 airport lounges in over 100 countries. Your membership gives you two free visits annually. After two free visits, you’ll be charged $27 per visit.

Rates and fees
The interest rate is pretty decent, especially considering the generous rewards. You will need excellent credit to qualify for this card.

APR for purchases: Not applicable because this is a charge card.

Balance transfers: Not applicable.

APR for cash advances: Not applicable.

Penalty rate: A 29.99 percent variable APR. If your payment is over 60 days late, you might get stuck with this penalty rate. So if you don’t have the cash flow to pay your bill off every month, don’t get this charge card.

Annual fee: None for the first year. After that, it’s $95.

Foreign transaction fees: None. Awesome!

The bottom line

The Ink Bold Business Card gets a thumbs-up from me. This is a good choice if your business requires a lot of spending on office supplies and cellular and cable-related stuff. The Ink Bold is also a good choice if you travel overseas a lot because there are no foreign transaction fees.

Now, this card gives you a flexible spending limit. Here’s how Chase explains it in the fine print: Each charge you make is evaluated based “on the spending and payment patterns on the account, your other relationships with us, information from credit reports obtained from credit bureaus including your experience with other creditors, and our understanding of your resources.”

Does that clear it up? Probably not! Basically, if Chase sees you paying a lot for certain items, but then paying the bill on time, they’ll be okay with that type of pattern. This is not an unlimited credit limit, so you could encounter a situation where your card gets denied if it’s out of Chase’s comfort zone.

I always mention the Credit CARD Act of 2009 when I review business cards. Business credit cards aren’t protected by the CARD Act. The Ink Bold is a business charge card, so keep in mind that you don’t have the same protections as consumer cards. Protect yourself from unpleasant surprises by reading all the communication you get from Chase. This includes snail mail, which banks still love.

If you’re interested in the Ink Bold Business Credit Card, you can Apply Here.

Note: Credit card agreements change frequently. So my review is based on the information that was in effect today. Be sure you read all the disclosure statements carefully.

The post Ink Bold Business Card Review appeared first on Beverly Harzog.

The Ink Cash card is a pretty good cash back credit card. You can read my review right here. I haven’t reviewed the Ink Bold (a charge card) or the Ink Classic yet, but I’ll update this post with links to those reviews when I have them done.

This review is for the Ink Plus Business Card, which is more of a travel rewards card. Small business credit cards can be used by sole proprietors as well as companies who have employees. If you do have employees, you get free additional cards with the Ink Plus card.

The sign-up bonus for the Ink Plus card is an excellent one. When you spend $5,000 within the first three months, you get 50,000 bonus points, which is worth $625 in travel rewards if you use the Ultimate Rewards booking tool.

Rewards

Your rewards are earned as points. Okay, let’s see what we’ve got:

• You get 5 points per $1 spent on the first $50,000 spent annually at office supply stores and on cellular phone, Internet, landline, and cable TV services (equipment purchases are excluded). After you reach the cap, you get 1 percent cash back.

• You get 2 points per $1 spent on the first $50,000 spent annually at gas stations and on hotel accommodations (if you book directly with the hotel). After you reach the cap, you get 1 percent cash back.

• You get 2 points per $1 spent when you book your travel through Chase’s Ultimate Rewards. You also get 20 percent off travel when you use the Ultimate Rewards booking tool. For example: A $625 flight only costs you 50,00 points.

• You get 1 percent on all other purchases.

• There’s no limit to the amount of points you can earn and they do not expire.

You can redeem points for travel, merchandise, cash back, and gift cards. You can learn more about earning and redeeming points on Chase’s Ultimate Rewards right here.

You also get membership in Lounge Club, which includes over 350 airport lounges in over 100 countries. Your membership gives you two free visits annually. After two free visits, you’ll be charged $27 per visit. This is a great perk to have if you often feel like you live in airports.

Rates and fees

The interest rate is pretty decent, especially considering the generous rewards. You will need excellent credit to qualify for this card.

APR for purchases: You get a variable rate of 13.24 percent.

Balance transfers: You get a variable rate of 13.24 percent. The transfer fee is 3 percent.

APR for cash advances: You get a variable 19.24 percent APR. Plus, there’s a 5 percent transaction fee. Remember that interest on a cash advance begins immediately.

Penalty rate: A 29.99 percent variable APR. This may be applied if you fail to make any minimum payment by the due date. You could also get stuck with this rate if you make a payment that is returned unpaid. You can get the penalty rate if you do either of the things I just mentioned or “…exceed your credit limit on another account or loan you have with us or any of our related banks.”

So, don’t make a late payment on any account you have with Chase. Ever.

Grace period: Your due date will be at least 20 days after the close of each billing cycle.

Annual fee: None for the first year. After that, it’s $95.

Foreign transaction fees: None. Awesome!

The bottom line

The Ink Plus Business Card gets a thumbs-up from me. If your business requires a lot of spending on office supplies and cellular and cable-related stuff, you can earn a ton of points with this card. This is also a good business card for the small business owner who travels frequently. There are no foreign transaction fees and this will save you a lot of money if you travel overseas a lot.

You’ll notice that on business card reviews I mention the Credit CARD Act of 2009. Business credit cards aren’t protected by the CARD Act. So keep in mind that you don’t have the same protections as consumer cards. For example, you could get sudden interest rate increases. So to protect yourself from unpleasant surprises, stay on top of any communication you get from Chase.

Aside from the negatives, though, I do think that business credit cards are useful because they offer excellent management tools. And if you’re meticulous about using this card for business expenses only,  you’ll keep your business expenses separate from your personal expenses. From a legal standpoint, this is essential.

If you’re interested in the Ink Plus Business Credit Card, you can Apply Here.

Note: Credit card agreements change frequently. So my review is based on the information that was in effect today. Be sure you read all the disclosure statements carefully.

The post Ink Plus Business Card Review appeared first on Beverly Harzog.

Now that I’ve been doing card reviews for a while, I’m starting to go back and update them with any changes I find. Credit cards are a moving target, but I do the best I can to keep you up to date. Over the weekend, I took aim at the Chase Freedom Visa card. I’m glad I did because there were some changes.

In my previous review, the APR range for the Chase Freedom card was 12.99 percent to 22.99 percent. Now, the range is from 13.99 percent to 22.99 percent. I know it’s only one percent, but in the world of credit cards that means something. It could mean that Chase wants to approve more folks for the card.

The Chase Freedom card has been targeted at folks with excellent credit scores, which means a FICO score of at least 750. By increasing the starting point for the interest rate, Chase can approve folks who have a score below 750. The increased APR helps cover the risk of taking on some consumers that Chase might not have considered six months ago.

The other change also involves an APR. The APR for a cash advance went up from 19.24 percent to 23.99 percent. If you read my reviews, you know my mantra: Don’t get a cash advance unless your life is hanging in the balance. Okay, that’s a bit dramatic, but I’m making a point. The interest on a cash advance starts ticking right away. There’s no grace period, so it’s an expensive way to borrow money.

Anyway, I think these changes suggest that perhaps people with good credit scores will be considered for the card. Remember that issuers look at more than just the credit score, though, so not everyone with a 720 score will get approved for this card.

It’s a shame the APR now starts at 13.99 percent, but if you don’t carry a balance, it won’t matter. And you never, ever want to carry a balance with a rewards card anyway.

If you’re thinking about applying for this card and you’d like to see a complete overview, here’s a link that will take you to my updated review: Chase Freedom Credit Card Review.

The post Update on the Chase Freedom Credit Card appeared first on Beverly Harzog.

This used to drive her crazy. Every year on Mother’s Day I think about this exchange with her because it happened frequently. This year, though, I’ve been thinking about how much she taught me about money management. Probably because I taped an interview at CNN yesterday and the topic was how moms can teach kids about money and credit cards.

My mom didn’t have any credit cards. She just didn’t believe in buying something unless you had the cash for it. She didn’t think there was anything wrong with others using credit cards, as long as they stayed out of debt. While my mom would probably rather I focus on helping people save money, I do think my mom would be pleased that I take a consumer advocacy approach to credit cards. I do my best to help folks use their cards to their advantage and stay out of trouble.

Even though my mom didn’t use credit cards, I learned a lot about money and credit from her. Unfortunately, I was in my 30s before I realized how great she was with money. I grew up in the South, and we didn’t talk about money when I was growing up. Well, back then we didn’t. I still live in the South, but I talk about money with my kids all the time. I’m sure they wish I’d shut up already.

I’ve talked about my credit card debt before and I often wonder if I’d have stayed out of trouble if someone had talked with me about money while I growing up. There are a lot of reasons why people get into debt, so it’s hard to stay. But it might have helped. At the end of the day, my parents did the best they could given the era and the culture they lived in.

You know how I finally found out that my mom was great with money? My parents got divorced when I was 17 and my mom was suddenly single. She got a job and set up a budget. She stayed out of debt and saved her money. She then began investing her money.

Fast forward about 15 years and she’s telling me how much money she’s saved and how she did it. I don’t think she’d want me to divulge how much she saved, but it was enough to pay for most of her long-term care when she was older and had health problems.

Hearing how my mom managed to stay out of debt certainly helped me get a grip on my own issues. My mom passed away during the summer of 2010.  I still miss her and I’ll never forget what I learned from her.

By the way, about five years ago, I started making my bed every morning. I hate to admit this, but my mom was right. I do feel better all day! My mom had developed a form of Alzheimer’s by then, so I’m not sure she understood when I told her the good news. But I know I saw a slight smile!

What did you learn from your mom about money? I’d love to hear any stories you’d like to share.

The post What I Learned From My Mom About Credit appeared first on Beverly Harzog.

This version of the Discover it credit card also has a decent cash back rewards program. (If you don’t need to make a balance transfer, check out my review of the ‘regular’ Discover it credit card.) Now, I don’t recommend using this Discover it balance transfer card for purchases until you get all of your debt paid off. But the rewards do make it a nice card to have in your credit card arsenal once you’re debt-free.

Rewards

With the Discover it Card, you earn 1 percent cash back on all purchases. In addition, you can earn 5 percent Cashback Bonus on up to $1,500 in popular rotating categories that change every quarter. Once you exceed the $1,500 cap, you earn 1 percent. You have to sign up to be eligible for the bonus category rewards.

You can redeem your points for cash back, merchandise, gift cards, charitable donations, and more. I really like the option of receiving your cash back as a direct deposit to your bank account. You can also get a statement credit, if you prefer.

And in case you’re wondering, you do not earn rewards on the amount of your balance transfer.

Rates and fees

The main feature for this version of the Discover it card is the long intro period for balance transfers. Note the timeline for this offer in the “Balance transfers” section below. Pay attention to the dates so you don’t miss out!

APR: You get a zero percent intro APR for 6 months. After that, you get a variable rate of 10.99 percent to 22.99 percent, based on your creditworthiness.

Balance transfers: You get a zero percent intro APR for 18 months. I love it! After that, you get a variable rate of 10.99 percent to 22.99 percent, based on your creditworthiness. The transfer fee is 3 percent.

NOTE: This offer applies to balance transfers that post to your account by August 10, 2013. The fine print points out that after your account is opened, it takes at least 14 days to process the transfer.

APR for cash advances: You get a variable 24.99 percent and there’s a 5 percent transaction fee. Remember that interest on a cash advance starts ticking right away. What do you say to a cash advance? No freakin’ way!

Annual fee: None.

Foreign transaction fees: None.

The bottom line

Overall, I give the Discover it – 18 Month Balance Transfer credit card a thumbs up. This card offers a good way to pay off–or at least pay down–your debt. To pay off your debt, determine how much you need to pay each month to get your balance to zero in 18 months.

Example: You transfer $5,000, which means you pay a $150 transfer fee. Your monthly payment will be 5150/18 = $286.17.

Sure, it’s tough to stick with a schedule, but you can do it. Throw all the money you can find at the debt. And resist using this card for purchases until your balance is zero.

If you’re interested in this balance transfer card, you can Apply Here.

Note: Credit card agreements change frequently. So my review is based on the information that was in effect today. Be sure you read all the disclosure statements carefully.

The post Discover it – 18 Month Balance Transfer Review appeared first on Beverly Harzog.

The Discover it Card has widened the APR range. It used to be 10.99 percent to 19.99 percent, but now it’s 10.99 percent to 22.99 percent. As I mentioned in a recent post, Credit Might Be Loosening Up a Little, this means that Discover is willing to take chances on people. So they might be willing to approve you for a card even if you don’t have a 750 FICO score.

Hey, no promises here! Just letting you know they’re getting a little more relaxed at Discover. You can read my updated review right here.

The Discover it for Students Card has shortened the zero percent intro APR. It used to be nine months. Now, you get a zero percent intro rate for six months. Since you shouldn’t carry a balance anyway, this shouldn’t be devastating news. You can read my updated review right here.

Reminder: 5 percent Cashback Bonus for Spring 2013. Sign-up for the Spring 2013 category, home improvement stores began on April 1, 2013. The bonus lasts through June 30, 2013. When you use your Discover it Card, you’ll get 5 percent Cashback Bonus on up to $1,500 in purchases at home improvement stores. You don’t get retroactive credit with this card, so if you haven’t signed up, do so right now so you can still take advantage of it. You can enroll right here.

If you’d like more details about the category, check out my post Discover it Card 5% Cashback Bonus Category, Spring 2013. This post also includes tips about using Google Wallet with the Discover it Card.

The post The Latest on the Discover it Card appeared first on Beverly Harzog.

I love it when y’all leave comments because it helps me learn more about the card. Sure, I read the fine print and point out the “gotchas.” But honestly, hearing what it’s like to use The Matrix in the trenches is priceless information. So thanks to everyone who has contributed to those posts. You can read the comments by clicking on the links above.

I’ve noticed a few questions that pop up over and over, so I thought I’d pick the most common ones and just try to clear things up. And by the way, I also reviewed the Cerulean Card, which is basically identical to The Matrix. So if you have the Cerulean, these facts apply to that card, too.

#1: The Matrix card is not issued by Discover

Hands down, this is the most common question I get. I can understand the confusion, too. The Discover logo is on the website and, for crying out loud, it’s on your card. The issuer is Continental Finance, though. Discover is only the payment network that’s used.

So when you use your Matrix (or Cerulean) card to make a purchase, the transaction is handled by the Discover payment network. This is why some of you are surprised that you aren’t getting Discover-quality customer service. You’re getting customer service from Continental Finance, and from what I can tell, they aren’t nearly as concerned about their image as Discover is.

#2: The Matrix is a hybrid credit card

This means that after you apply, you’ll be told if you qualify for the secured or the unsecured version of the card. It’s also possible to be offered a partially secured card. With a partially secured card, you still have to make a deposit, but you get a limit that’s higher than the deposit. For example, you might be asked to make a $200 deposit, but you get a $300 credit limit.

#3: The Matrix card doesn’t always work for gas purchases

I’ve gotten a lot of mixed comments about this one. Many people have reported that they can’t use the card to pay for gas. Some folks have said you can use the card for gas, but you have to pay inside, not at the pump. One reader who uses the Cerulean card, though, said that when she activated the card, she was told you can’t use the card for gas.

If any of you are using the Matrix card or the Cerulean card, will you tell me what your experience has been when you try to purchase gas?

In the meantime, I recommend having a backup (even a debit card or cash) with you until you know for sure if you can use The Matrix to pay for gas. Before you even try to swipe your card at the pump, go inside and ask if your card can be used to purchase gas.

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