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Credit card

card for financial transactions from a line of credit

An example of the front in a typical credit card:

A credit card is a payment card issued to users (cardholders) to enable the cardholder to pay a merchant for goods and services based on the cardholder's accrued debt (i.e., promise to the card issuer to pay them for the amounts plus the other agreed charges).[1] The card issuer (usually a bank or credit union) creates a revolving account and grants a line of credit to the cardholder, from which the cardholder can borrow money for payment to a merchant or as a cash advance. There are two credit card groups: consumer credit cards and business credit cards. Most cards are plastic, but some are metal cards (stainless steel, gold, palladium, titanium),[2][3] and a few gemstone-encrusted metal cards.[2]

A regular credit card is different from a charge card, which requires the balance to be repaid in full each month or at the end of each statement cycle.[4] In contrast, credit cards allow the consumers to build a continuing balance of debt, subject to interest being charged. A credit card differs from a charge card also in that a credit card typically involves a third-party entity that pays the seller and is reimbursed by the buyer, whereas a charge card simply defers payment by the buyer until a later date.

A credit card also differs from a debit card, which can be used like currency by the owner of the card.

In 2018, there were 1.12 billion credit cards in circulation in the U.S., and 72% of adults had at least one card.[5]

Technical specifications[edit]

The size of most credit cards is 85.60 by 53.98 millimetres (3+3⁄8 in × 2+1⁄8 in) and rounded corners with a radius of 2.88–3.48 millimetres (9⁄80–11⁄80 in)[6] conforming to the ISO/IEC 7810 ID-1 standard, the same size as ATM cards and other payment cards, such as debit cards.[7]

Credit cards have a printed[8] or embossed bank card number complying with the ISO/IEC 7812 numbering standard. The card number's prefix, called the Bank Identification Number (known in the industry as a BIN[9]), is the sequence of digits at the beginning of the number that determine the bank to which a credit card number belongs. This is the first six digits for MasterCard and Visa cards. The next nine digits are the individual account number, and the final digit is a validity check digit.[10]

Both of these standards are maintained and further developed by ISO/IEC JTC 1/SC 17/WG 1. Credit cards have a magnetic stripe conforming to the ISO/IEC 7813. Most modern credit cards use smart card technology: they have a computer chip embedded in them as a security feature. In addition, complex smart cards, including peripherals such as a keypad, a display or a fingerprint sensor are increasingly used for credit cards.

In addition to the main credit card number, credit cards also carry issue and expiration dates (given to the nearest month), as well as extra codes such as issue numbers and security codes. Complex smart cards allow to have a variable security code, thus increasing security for online transactions. Not all credit cards have the same sets of extra codes nor do they use the same number of digits.

Credit card numbers were originally embossed to allow easy transfer of the number to charge slips. With the decline of paper slips, some credit cards are no longer embossed and in fact the card number is no longer in the front.[11] In addition, some cards are now vertical in design, rather than horizontal.

History[edit]

Edward Bellamy's Looking Backward[edit]

The concept of using a card for purchases was described in 1887 by Edward Bellamy in his utopian novel Looking Backward. Bellamy used the term credit card eleven times in this novel, although this referred to a card for spending a citizen's dividend from the government, rather than borrowing,[12] making it more similar to a debit card.

Charge coins, medals, and so on[edit]

Charge coins and other similar items were used from the late 19th century to the 1930s. They came in various shapes and sizes; with materials made out of celluloid (an early type of plastic), copper, aluminum, steel, and other types of whitish metals.[13] Each charge coin usually had a little hole, enabling it to be put in a key ring, like a key. These charge coins were usually given to customers who had charge accounts in department stores, hotels, and so on. A charge coin usually had the charge account number along with the merchant's name and logo.

The charge coin offered a simple and fast way to copy a charge account number to the sales slip, by imprinting the coin onto the sales slip. This sped up the process of copying, previously done by handwriting. It also reduced the number of errors, by having a standardized form of numbers on the sales slip, instead of various kinds of handwriting style.[14]

Because the customer's name was not on the charge coin, almost anyone could use it. This sometimes led to a case of mistaken identity, either accidentally or intentionally, by acting on behalf of the charge account owner or out of malice to defraud both the charge account owner and the merchant. Beginning in the 1930s, merchants started to move from charge coins to the newer Charga-Plate.[15]

Early charge cards[edit]

Charga-Plate[edit]

The Charga-Plate, developed in 1928, was an early predecessor of the credit card and was used in the U.S. from the 1930s to the late 1950s. It was a 2+1⁄2-by-1+1⁄4-inch (64 mm × 32 mm) rectangle of sheet metal related to Addressograph and military dog tag systems. It was embossed with the customer's name, city, and state. It held a small paper card on its back for a signature. In recording a purchase, the plate was laid into a recess in the imprinter, with a paper "charge slip" positioned on top of it. The record of the transaction included an impression of the embossed information, made by the imprinter pressing an inked ribbon against the charge slip.[16] Charga-Plate was a trademark of Farrington Manufacturing Co.[17] Charga-Plates were issued by large-scale merchants to their regular customers, much like department store credit cards of today. In some cases, the plates were kept in the issuing store rather than held by customers. When an authorized user made a purchase, a clerk retrieved the plate from the store's files and then processed the purchase. Charga-Plates sped up back-office bookkeeping and reduced copying errors that were done manually in paper ledgers in each store.

Air Travel Card[edit]

In 1934, American Airlines and the Air Transport Association simplified the process even more with the advent of the Air Travel Card.[18] They created a numbering scheme that identified the issuer of the card as well as the customer account. This is the reason the modern UATP cards still start with the number 1. With an Air Travel Card, passengers could "buy now, and pay later" for a ticket against their credit and receive a fifteen percent discount at any of the accepting airlines. By the 1940s, all of the major U.S. airlines offered Air Travel Cards that could be used on 17 different airlines. By 1941, about half of the airlines' revenues came through the Air Travel Card agreement. The airlines had also started offering installment plans to lure new travelers into the air. In 1948, the Air Travel Card became the first internationally valid charge card within all members of the International Air Transport Association.[19]

Early general purpose charge cards: Diners Club, Carte Blanche, and American Express[edit]

The concept of customers paying different merchants using the same card was expanded in 1950 by Ralph Schneider and Frank McNamara, founders of Diners Club, to consolidate multiple cards. The Diners Club, which was created partially through a merger with Dine and Sign, produced the first "general purpose" charge card and required the entire bill to be paid with each statement. That was followed by Carte Blanche and in 1958 by American Express which created a worldwide credit card network (although these were initially charge cards that later acquired credit card features).

BankAmericard and Master Charge[edit]

Metal signs at a plant nursery in Los Angeles County, California marketing Mastercharge and Bankamericard

Until 1958, no one had been able to successfully establish a revolving credit financial system in which a card issued by a third-party bank was being generally accepted by a large number of merchants, as opposed to merchant-issued revolving cards accepted by only a few merchants. There had been a dozen attempts by small American banks, but none of them were able to last very long. In 1958, Bank of America launched the BankAmericard in Fresno, California, which would become the first successful recognizably modern credit card. This card succeeded where others failed by breaking the chicken-and-egg cycle in which consumers did not want to use a card that few merchants would accept and merchants did not want to accept a card that few consumers used. Bank of America chose Fresno because 45% of its residents used the bank, and by sending a card to 60,000 Fresno residents at once, the bank was able to convince merchants to accept the card.[20] It was eventually licensed to other banks around the United States and then around the world, and in 1976, all BankAmericard licensees united themselves under the common brand Visa. In 1966, the ancestor of MasterCard was born when a group of banks established Master Charge to compete with BankAmericard; it received a significant boost when Citibank merged its own Everything Card, launched in 1967, into Master Charge in 1969.

Early credit cards in the U.S., of which BankAmericard was the most prominent example, were mass-produced and mass mailed unsolicited to bank customers who were thought to be good credit risks. They have been mailed off to unemployable people, drunks, narcotics addicts and to compulsive debtors, a process President Johnson's Special Assistant Betty Furness found very like "giving sugar to diabetics".[21] These mass mailings were known as "drops" in banking terminology, and were outlawed in 1970 due to the financial chaos they caused. However, by the time the law came into effect, approximately 100 million credit cards had been dropped into the U.S. population. After 1970, only credit card applications could be sent unsolicited in mass mailings.

Before the computerization of credit card systems in America, using a credit card to pay at a merchant was significantly more complicated than it is today. Each time a consumer wanted to use a credit card, the merchant would have to call their bank, who in turn had to call the credit card company, which then had to have an employee manually look up the customer's name and credit balance. This system was computerized in 1973 under the leadership of Dee Hock, the first CEO of Visa, allowing transaction time to decrease substantially to less than one minute.[20] However, until always-connected payment terminals became ubiquitous at the beginning of the 21st century, it was common for a merchant to accept a charge, especially below a threshold value or from a known and trusted customer, without verifying it by phone. Books with lists of stolen card numbers were distributed to merchants who were supposed in any case to check cards against the list before accepting them, as well as verifying the signature on the charge slip against that on the card. Merchants who failed to take the time to follow the proper verification procedures were liable for fraudulent charges, but because of the cumbersome nature of the procedures, merchants would often simply skip some or all of them and assume the risk for smaller transactions.

[edit]

The fractured nature of the U.S. banking system under the Glass–Steagall Act meant that credit cards became an effective way for those who were traveling around the country to move their credit to places where they could not directly use their banking facilities. There are now countless variations on the basic concept of revolving credit for individuals (as issued by banks and honored by a network of financial institutions), including organization-branded credit cards, corporate-user credit cards, store cards and so on.

In 1966, Barclaycard in the United Kingdom launched the first credit card outside the United States.

Although credit cards reached very high adoption levels in the US, Canada and the UK during the latter 20th century, many cultures were more cash-oriented or developed alternative forms of cashless payments, such as Carte bleue or the Eurocard (Germany, France, Switzerland, and others). In these places, adoption of credit cards was initially much slower. Due to strict regulations regarding bank overdrafts, some countries, France in particular, were much quicker to develop and adopt chip-based credit cards which are seen as major anti-fraud credit devices. Debit cards and online banking (using either ATMs or PCs[clarification needed]) are used more widely than credit cards in some countries. It took until the 1990s to reach anything like the percentage market penetration levels achieved in the US, Canada, and UK. In some countries, acceptance still remains low as the use of a credit card system depends on the banking system of each country; while in others, a country sometimes had to develop its own credit card network, e.g. UK's Barclaycard and Australia's Bankcard. Japan remains a very cash-oriented society, with credit card adoption being limited mainly to the largest of merchants; although stored value cards (such as telephone cards) are used as alternative currencies, the trend is toward RFID-based systems inside cards, cellphones, and other objects.

Vintage, old, and unique credit cards as collectibles[edit]

Receipt from 1997 - card physically swiped and information imprinted on the receipt

The design of the credit card itself has become a major selling point in recent years.[22] A growing field of numismatics (study of money), or more specifically exonumia (study of money-like objects), credit card collectors seek to collect various embodiments of credit from the now familiar plastic cards to older paper merchant cards, and even metal tokens that were accepted as merchant credit cards. Early credit cards were made of celluloid plastic, then metal and fiber, then paper, and are now mostly polyvinyl chloride (PVC) plastic. However the chip part of credit cards is not made from plastic but from metals.[citation needed]

Usage[edit]

A credit card issuing company, such as a bank or credit union, enters into agreements with merchants for them to accept their credit cards. Merchants often advertise in signage or other company material which cards they accept by displaying acceptance marks generally derived from logos. Alternatively, this may be communicated, for example, via a restaurant's menu or orally, or stating, "We don't take credit cards".

The credit card issuer issues a credit card to a customer at the time or after an account has been approved by the credit provider, which need not be the same entity as the card issuer. The cardholders can then use it to make purchases at merchants accepting that card. When a purchase is made, the cardholder agrees to pay the card issuer. The cardholder indicates consent to pay by signing a receipt with a record of the card details and indicating the amount to be paid or by entering a personal identification number (PIN). Also, many merchants now accept verbal authorizations via telephone and electronic authorization using the Internet, known as a card not present transaction (CNP).

Electronicverification systems allow merchants to verify in a few seconds that the card is valid and the cardholder has sufficient credit to cover the purchase, allowing the verification to happen at time of purchase. The verification is performed using a credit card payment terminal or point-of-sale (POS) system with a communications link to the merchant's acquiring bank. Data from the card is obtained from a magnetic stripe or chip on the card; the latter system is called Chip and PIN in the United Kingdom and Ireland, and is implemented as an EMV card.

For card not present transactions where the card is not shown (e.g., e-commerce, mail order, and telephone sales), merchants additionally verify that the customer is in physical possession of the card and is the authorized user by asking for additional information such as the security code printed on the back of the card, date of expiry, and billing address.

Each month, the cardholder is sent a statement indicating the purchases made with the card, any outstanding fees, the total amount owed and the minimum payment due. In the US, after receiving the statement, the cardholder may dispute any charges that he or she thinks are incorrect (see 15 U.S.C. § 1643, which limits cardholder liability for unauthorized use of a credit card to $50). The Fair Credit Billing Act gives details of the U.S. regulations.

Many banks now also offer the option of electronic statements, either in lieu of or in addition to physical statements, which can be viewed at any time by the cardholder via the issuer's online banking website. Notification of the availability of a new statement is generally sent to the cardholder's email address. If the card issuer has chosen to allow it, the cardholder may have other options for payment besides a physical check, such as an electronic transfer of funds from a checking account. Depending on the issuer, the cardholder may also be able to make multiple payments during a single statement period, possibly enabling him or her to utilize the credit limit on the card several times.

Minimum payment[edit]

The cardholder must pay a defined minimum portion of the amount owed by a due date, or may choose to pay a higher amount. The credit issuer charges interest on the unpaid balance if the billed amount is not paid in full (typically at a much higher rate than most other forms of debt). In addition, if the cardholder fails to make at least the minimum payment by the due date, the issuer may impose a late fee or other penalties. To help mitigate this, some financial institutions can arrange for automatic payments to be deducted from the cardholder's bank account, thus avoiding such penalties altogether, as long as the cardholder has sufficient funds.

In cases where the minimum payment is less than the finance charges and fees assessed during the billing cycle, the outstanding balance will increase in what is called negative amortization. This practice tends to increase credit risk and mask the lender's portfolio quality, and consequently has been banned in the U.S. since 2003.[23][24]

Advertising, solicitation, application and approval[edit]

Credit card advertising regulations in the U.S. include the Schumer box disclosure requirements. A large fraction of junk mail consists of credit card offers created from lists provided by the major credit reporting agencies. In the United States, the three major U.S. credit bureaus (Equifax, TransUnion and Experian) allow consumers to opt out from related credit card solicitation offers via its Opt Out Pre Screen program.

Interest charges[edit]

Credit card issuers usually waive interest charges if the balance is paid in full each month, but typically will charge full interest on the entire outstanding balance from the date of each purchase if the total balance is not paid.

For example, if a user had a $1,000 transaction and repaid it in full within this grace period, there would be no interest charged. If, however, even $1.00 of the total amount remained unpaid, interest would be charged on the $1,000 from the date of purchase until the payment is received. The precise manner in which interest is charged is usually detailed in a cardholder agreement which may be summarized on the back of the monthly statement. The general calculation formula most financial institutions use to determine the amount of interest to be charged is (APR/100 x ADB)/365 x number of days revolved. Take the annual percentage rate (APR) and divide by 100 then multiply to the amount of the average daily balance (ADB). Divide the result by 365 and then take this total and multiply by the total number of days the amount revolved before payment was made on the account. Financial institutions refer to interest charged back to the original time of the transaction and up to the time a payment was made, if not in full, as a residual retail finance charge (RRFC). Thus after an amount has revolved and a payment has been made, the user of the card will still receive interest charges on their statement after paying the next statement in full (in fact the statement may only have a charge for interest that collected up until the date the full balance was paid, i.e. when the balance stopped revolving).

The credit card may simply serve as a form of revolving credit, or it may become a complicated financial instrument with multiple balance segments each at a different interest rate, possibly with a single umbrella credit limit, or with separate credit limits applicable to the various balance segments. Usually this compartmentalization is the result of special incentive offers from the issuing bank, to encourage balance transfers from cards of other issuers. If several interest rates apply to various balance segments, then payment allocation is generally at the discretion of the issuing bank, and payments will therefore usually be allocated towards the lowest rate balances until paid in full before any money is paid towards higher rate balances. Interest rates can vary considerably from card to card, and the interest rate on a particular card may jump dramatically if the card user is late with a payment on that card or any other credit instrument, or even if the issuing bank decides to raise its revenue.[citation needed]

Grace period[edit]

A credit card's grace period is the time the cardholder has to pay the balance before interest is assessed on the outstanding balance. Grace periods may vary, but usually range from 20 to 55 days depending on the type of credit card and the issuing bank. Some policies allow for reinstatement after certain conditions are met.

Usually, if a cardholder is late paying the balance, finance charges will be calculated and the grace period does not apply. Finance charges incurred depend on the grace period and balance; with most credit cards there is no grace period if there is any outstanding balance from the previous billing cycle or statement (i.e. interest is applied on both the previous balance and new transactions). However, there are some credit cards that will only apply finance charge on the previous or old balance, excluding new transactions.

Parties involved[edit]

  • Cardholder: The holder of the card used to make a purchase; the consumer.
  • Card-issuing bank: The financial institution or other organization that issued the credit card to the cardholder. This bank bills the consumer for repayment and bears the risk that the card is used fraudulently. American Express and Discover were previously the only card-issuing banks for their respective brands, but as of 2007, this is no longer the case. Cards issued by banks to cardholders in a different country are known as offshore credit cards.
  • Merchant: The individual or business accepting credit card payments for products or services sold to the cardholder.
  • Acquiring bank: The financial institution accepting payment for the products or services on behalf of the merchant.
  • Independent sales organization: Re-sellers (to merchants) of the services of the acquiring bank.
  • Merchant account: This could refer to the acquiring bank or the independent sales organization, but in general is the organization that the merchant deals with.
  • Card association: An association of card-issuing banks such as Discover, Visa, MasterCard, American Express, etc. that set transaction terms for merchants, card-issuing banks, and acquiring banks.
  • Transaction network: The system that implements the mechanics of the electronic transactions. May be operated by an independent company, and one company may operate multiple networks.
  • Affinity partner: Some institutions lend their names to an issuer to attract customers that have a strong relationship with that institution, and get paid a fee or a percentage of the balance for each card issued using their name. Examples of typical affinity partners are sports teams, universities, charities, professional organizations, and major retailers.
  • Insurance providers: Insurers underwriting various insurance protections offered as credit card perks, for example, Car Rental Insurance, Purchase Security, Hotel Burglary Insurance, Travel Medical Protection etc.

The flow of information and money between these parties — always through the card associations — is known as the interchange, and it consists of a few steps.

Transaction steps[edit]

  • Authorization: The cardholder presents the card as payment to the merchant and the merchant submits the transaction to the acquirer (acquiring bank). The acquirer verifies the credit card number, the transaction type and the amount with the issuer (card-issuing bank) and reserves that amount of the cardholder's credit limit for the merchant. An authorization will generate an approval code, which the merchant stores with the transaction.
  • Batching: Authorized transactions are stored in "batches", which are sent to the acquirer. Batches are typically submitted once per day at the end of the business day. Batching can be done manually (initiated by a merchant's action) or automatically (on a pre-determined schedule, using a payment processing platform). If a transaction is not submitted in the batch, the authorization will stay valid for a period determined by the issuer, after which the held amount will be returned to the cardholder's available credit (see authorization hold). Some transactions may be submitted in the batch without prior authorizations; these are either transactions falling under the merchant's floor limit or ones where the authorization was unsuccessful but the merchant still attempts to force the transaction through. (Such may be the case when the cardholder is not present but owes the merchant additional money, such as extending a hotel stay or car rental.)
  • Clearing and Settlement: The acquirer sends the batch transactions through the credit card association, which debits the issuers for payment and credits the acquirer. Essentially, the issuer pays the acquirer for the transaction.
  • Funding: Once the acquirer has been paid, the acquirer pays the merchant. The merchant receives the amount totaling the funds in the batch minus either the "discount rate", "mid-qualified rate", or "non-qualified rate" which are tiers of fees the merchant pays the acquirer for processing the transactions.
  • Chargebacks: A chargeback is an event in which money in a merchant account is held due to a dispute relating to the transaction. Chargebacks are typically initiated by the cardholder. In the event of a chargeback, the issuer returns the transaction to the acquirer for resolution. The acquirer then forwards the chargeback to the merchant, who must either accept the chargeback or contest it.

Credit card register[edit]

A credit card register is a transaction register used to ensure the increasing balance owed from using a credit card is enough below the credit limit to deal with authorization holds and payments not yet received by the bank and to easily look up past transactions for reconciliation and budgeting.

The register is a personal record of banking transactions used for credit card purchases as they affect funds in the bank account or the available credit. In addition to check number and so forth the code column indicates the credit card. The balance column shows available funds after purchases. When the credit card payment is made the balance already reflects the funds were spent. In a credit card's entry, the deposit column shows the available credit and the payment column shows total owed, their sum being equal to the credit limit.

Each check written, debit card transaction, cash withdrawal, and credit card charge is entered manually into the paper register daily or several times per week.[25] Credit card register also refers to one transaction record for each credit card. In this case the booklets readily enable the location of a card's current available credit when ten or more cards are in use.[citation needed]

Features[edit]

As well as convenient credit, credit cards offer consumers an easy way to track expenses, which is necessary for both monitoring personal expenditures and the tracking of work-related expenses for taxation and reimbursement purposes. Credit cards are accepted in larger establishments in almost all countries, and are available with a variety of credit limits, repayment arrangements. Some have added perks (such as insurance protection, rewards schemes in which points earned by purchasing goods with the card can be redeemed for further goods and services or cashback).

Consumers' limited liability[edit]

Some countries, such as the United States, the United Kingdom, and France, limit the amount for which a consumer can be held liable in the event of fraudulent transactions with a lost or stolen credit card.

Specialized types[edit]

Business credit cards[edit]

See also: Stored-value card

Business credit cards are specialized credit cards issued in the name of a registered business, and typically they can only be used for business purposes. Their use has grown in recent decades. In 1998, for instance, 37% of small businesses reported using a business credit card; by 2009, this number had grown to 64%.[26]

Business credit cards offer a number of features specific to businesses. They frequently offer special rewards in areas such as shipping, office supplies, travel, and business technology. Most issuers use the applicant's personal credit score when evaluating these applications. In addition, income from a variety of sources may be used to qualify, which means these cards may be available to businesses that are newly established.[27] In addition, some issuers of these card do not report account activity to the owner's personal credit, or only do so if the account is delinquent.[28] In these cases, the activity of the business is separated from the owner's personal credit activity.

Business credit cards are offered by American Express, Discover, and almost all major issuers of Visa and MasterCard cards. Some local banks and credit unions also offer business credit cards. American Express is the only major issuer of business charge cards in the United States, however.

Secured credit cards[edit]

A secured credit card is a type of credit card secured by a deposit account owned by the cardholder. Typically, the cardholder must deposit between 100% and 200% of the total amount of credit desired. Thus if the cardholder puts down $1,000, they will be given credit in the range of $500–1,000. In some cases, credit card issuers will offer incentives even on their secured card portfolios. In these cases, the deposit required may be significantly less than the required credit limit, and can be as low as 10% of the desired credit limit. This deposit is held in a special savings account. Credit card issuers offer this because they have noticed that delinquencies were notably reduced when the customer perceives something to lose if the balance is not repaid.

The cardholder of a secured credit card is still expected to make regular payments, as with a regular credit card, but should they default on a payment, the card issuer has the option of recovering the cost of the purchases paid to the merchants out of the deposit. The advantage of the secured card for an individual with negative or no credit history is that most companies report regularly to the major credit bureaus. This allows the cardholder to start building (or re-building) a positive credit history.

Although the deposit is in the hands of the credit card issuer as security in the event of default by the consumer, the deposit will not be debited simply for missing one or two payments. Usually the deposit is only used as an offset when the account is closed, either at the request of the customer or due to severe delinquency (150 to 180 days). This means that an account which is less than 150 days delinquent will continue to accrue interest and fees, and could result in a balance which is much higher than the actual credit limit on the card. In these cases the total debt may far exceed the original deposit and the cardholder not only forfeits their deposit but is left with an additional debt.

Most of these conditions are usually described in a cardholder agreement which the cardholder signs when their account is opened.

Secured credit cards are an option to allow a person with a poor credit history or no credit history to have a credit card which might not otherwise be available. They are often offered as a means of rebuilding one's credit. Fees and service charges for secured credit cards often exceed those charged for ordinary non-secured credit cards. For people in certain situations, (for example, after charging off on other credit cards, or people with a long history of delinquency on various forms of debt), secured cards are almost always more expensive than unsecured credit cards.

Sometimes a credit card will be secured by the equity in the borrower's home.

Prepaid cards[edit]

See also: Stored-value card

They are sometimes called "prepaid credit card", but they are a debit card (prepaid card or prepaid debit card),[29] since no credit is offered by the card issuer: the cardholder spends money which has been "stored" via a prior deposit by the cardholder or someone else, such as a parent or employer. However, it carries a credit-card brand (such as Discover, Visa, MasterCard, American Express, or JCB) and can be used in similar ways just as though it were a credit card.[29] Unlike debit cards, prepaid credit cards generally do not require a PIN. An exception are prepaid credit cards with an EMV chip. These cards do require a PIN if the payment is processed via Chip and PIN technology. As of 2018, most debit cards in the U.S. were prepaid cards (71.7%).[5]

After purchasing the card, the cardholder loads the account with any amount of money, up to the predetermined card limit and then uses the card to make purchases the same way as a typical credit card. Prepaid cards can be issued to minors (above 13) since there is no credit line involved. The main advantage over secured credit cards (see above section) is that the cardholder is not required to come up with $500 or more to open an account. With prepaid credit cards purchasers are not charged any interest but are often charged a purchasing fee plus monthly fees after an arbitrary time period. Many other fees also usually apply to a prepaid card.[29]

Prepaid credit cards are sometimes marketed to teenagers[29] for shopping online without having their parents complete the transaction.[30] Teenagers can only use funds that are available on the card which helps promote financial management to reduce the risk of debt problems later in life.[citation needed]

Prepaid cards can be used globally. The prepaid card is convenient for payees in developing countries like Brazil, Russia, India, and China, where international wire transfers and bank checks are time-consuming, complicated and costly.[citation needed]

Because of the many fees that apply to obtaining and using credit-card-branded prepaid cards, the Financial Consumer Agency of Canada describes them as "an expensive way to spend your own money".[31] The agency publishes a booklet entitled Pre-paid Cards which explains the advantages and disadvantages of this type of prepaid card.see #Further reading

Digital cards[edit]

A digital card is a digital cloud-hosted virtual representation of any kind of identification card or payment card, such as a credit card.[citation needed]

Charge cards[edit]

The charge cards are a type of credit card.

Benefits and drawbacks[edit]

Benefits to cardholder[edit]

The main benefit to the cardholder is convenience. Compared to debit cards and checks, a credit card allows small short-term loans to be quickly made to a cardholder who need not calculate a balance remaining before every transaction, provided the total charges do not exceed the maximum credit line for the card.

One financial benefit is that no interest is charged when the balance is paid in full within the grace period.

Different countries offer different levels of protection. In the UK, for example, the bank is jointly liable with the merchant for purchases of defective products over £100.[32]

Many credit cards offer benefits to cardholders. Some benefits apply to products purchased with the card, like extended product warranties, reimbursement for decreases in price immediately after purchase (price protection), and reimbursement for theft or damage on recently purchased products (purchase protection).[33] Other benefits include various types of travel insurance, such as rental car insurance, travel accident insurance, baggage delay insurance, and trip delay or cancellation insurance.[34]

Credit cards may also offer a loyalty program, where each purchase is rewarded based on the price of the purchase. Typically, rewards are either in the form of cash back or points. Points are often redeemable for gift cards, products, or travel expenses like airline tickets. Some credit cards allow the transfer of accrued points to hotel and airline loyalty programs.[35] Research has examined whether competition among card networks may potentially make payment rewards too generous, causing higher prices among merchants, thus actually impacting social welfare and its distribution, a situation potentially warranting public policy interventions.[36]

Comparison of credit card benefits in the U.S.[edit]

The table below contains a list of benefits offered in the United States for consumer credit cards in some of these networks. These benefits may vary with each credit card issuer.

MasterCard[37]Visa[38]American Express[39]Discover[40]
Return extension60 days
up to $250
90 days
up to $250[41]
90 days
up to $300
Not Available[42]
Extended warranty2× original
up to 1 year
Depends1 additional year
6 years max
Not Available[43]
Price protection60 daysVariesNoNot Available[44]
Loss/damage coverage90 daysDepends90 days
up to $1,000
Not Available
Rental car insurance

Main article: Damage waiver

15 days: collision, theft, vandalism15 days: collision, theft30 days: collision, theft, vandalism[45]Not Available

Detriments to cardholders[edit]

High interest and bankruptcy[edit]

Low introductory credit card rates are limited to a fixed term, usually between 6 and 12 months, after which a higher rate is charged. As all credit cards charge fees and interest, some customers become so indebted to their credit card provider that they are driven to bankruptcy. Some credit cards often levy a rate of 20 to 30 percent after a payment is missed.[46] In other cases, a fixed charge is levied without change to the interest rate. In some cases universal default may apply: the high default rate is applied to a card in good standing by missing a payment on an unrelated account from the same provider. This can lead to a snowball effect in which the consumer is drowned by unexpectedly high interest rates. Further, most card holder agreements enable the issuer to arbitrarily raise the interest rate for any reason they see fit. First Premier Bank at one point offered a credit card with a 79.9% interest rate;[47] however, they discontinued this card in February 2011 because of persistent defaults.[48]

Research shows that a substantial fraction of consumers (about 40 percent) choose a sub-optimal credit card agreement, with some incurring hundreds of dollars of avoidable interest costs.[49]

Weakens self regulation[edit]

Several studies have shown that consumers are likely to spend more money when they pay by credit card. Researchers suggest that when people pay using credit cards, they do not experience the abstract pain of payment.[50] Furthermore, researchers have found that using credit cards can increase consumption of unhealthy food.[51]

Detriments to society[edit]

Inflated pricing for all consumers[edit]

Merchants that accept credit cards must pay interchange fees and discount fees on all credit-card transactions.[52][53] In some cases merchants are barred by their credit agreements from passing these fees directly to credit card customers, or from setting a minimum transaction amount (no longer prohibited in the United States, United Kingdom or Australia).[54] The result is that merchants are induced to charge all customers (including those who do not use credit cards) higher prices to cover the fees on credit card transactions.[53] The inducement can be strong because the merchant's fee is a percentage of the sale price, which has a disproportionate effect on the profitability of businesses that have predominantly credit card transactions, unless compensated for by raising prices generally. In the United States in 2008 credit card companies collected a total of $48 billion in interchange fees, or an average of $427 per family, with an average fee rate of about 2% per transaction.[53]

Credit card rewards result in a total transfer of $1,282 from the average cash payer to the average card payer per year.[55]

Benefits to merchants[edit]

An example of street markets accepting credit cards. Most simply display the acceptance marks(stylized logos, shown in the upper-left corner of the sign) of all the cards they accept.

For merchants, a credit card transaction is often more secure than other forms of payment, such as cheques, because the issuing bank commits to pay the merchant the moment the transaction is authorized, regardless of whether the consumer defaults on the credit card payment (except for legitimate disputes, which are discussed below, and can result in charges back to the merchant). In most cases, cards are even more secure than cash, because they discourage theft by the merchant's employees and reduce the amount of cash on the premises. Finally, credit cards reduce the back office expense of processing checks/cash and transporting them to the bank.

Prior to credit cards, each merchant had to evaluate each customer's credit history before extending credit. That task is now performed by the banks which assume the credit risk. Credit cards can also aid in securing a sale especially if the customer does not have enough cash on hand or in a checking account. Extra turnover is generated by the fact that the customer can purchase goods and services immediately and is less inhibited by the amount of cash in pocket and the immediate state of the customer's bank balance. Much of merchants' marketing is based on this immediacy.

For each purchase, the bank charges the merchant a commission (discount fee) for this service and there may be a certain delay before the agreed payment is received by the merchant. The commission is often a percentage of the transaction amount, plus a fixed fee (interchange rate).

Costs to merchants[edit]

Merchants are charged several fees for accepting credit cards. The merchant is usually charged a commission of around 1 to 4 percent of the value of each transaction paid for by credit card.[56] The merchant may also pay a variable charge, called a merchant discount rate, for each transaction.[52] In some instances of very low-value transactions, use of credit cards will significantly reduce the profit margin or cause the merchant to lose money on the transaction. Merchants with very low average transaction prices or very high average transaction prices are more averse to accepting credit cards. In some cases merchants may charge users a "credit card supplement" (or surcharge), either a fixed amount or a percentage, for payment by credit card.[57] This practice was prohibited by most credit card contracts in the United States until 2013, when a major settlement between merchants and credit card companies allowed merchants to levy surcharges. Most retailers have not started using credit card surcharges, however, for fear of losing customers.[58]

Merchants in the United States have been fighting what they consider to be unfairly high fees charged by credit card companies in a series of lawsuits that started in 2005. Merchants charged that the two main credit card processing companies, MasterCard and Visa, used their monopoly power to levy excessive fees in a class-action lawsuit involving the National Retail Federation and major retailers such as Wal-Mart. In December 2013, a federal judge approved a $5.7 billion settlement in the case that offered payouts to merchants who had paid credit card fees, the largest antitrust settlement in U.S. history. Some large retailers, such as Wal-Mart and Amazon, chose to not participate in this settlement, however, and have continued their legal fight against the credit card companies.[58]

Merchants are also required to lease or purchase processing equipment, in some cases this equipment is provided free of charge by the processor. Merchants must also satisfy data security compliance standards which are highly technical and complicated. In many cases, there is a delay of several days before funds are deposited into a merchant's bank account. Because credit card fee structures are very complicated, smaller merchants are at a disadvantage to analyze and predict fees.

Finally, merchants assume the risk of chargebacks by consumers.

Security[edit]

Main article: Credit card fraud

See also: Wireless identity theft

Credit card security relies on the physical security of the plastic card as well as the privacy of the credit card number. Therefore, whenever a person other than the card owner has access to the card or its number, security is potentially compromised. Once, merchants would often accept credit card numbers without additional verification for mail order purchases. It is now common practice to only ship to confirmed addresses as a security measure to minimise fraudulent purchases. Some merchants will accept a credit card number for in-store purchases, whereupon access to the number allows easy fraud, but many require the card itself to be present, and require a signature (for magnetic stripe cards). A lost or stolen card can be cancelled, and if this is done quickly, will greatly limit the fraud that can take place in this way. European banks can require a cardholder's security PIN be entered for in-person purchases with the card.

The Payment Card Industry Data Security Standard (PCI DSS) is the security standard issued by the Payment Card Industry Security Standards Council (PCI SSC). This data security standard is used by acquiring banks to impose cardholder data security measures upon their merchants.

The goal of the credit card companies is not to eliminate fraud, but to "reduce it to manageable levels".[59] This implies that fraud prevention measures will be used only if their cost are lower than the potential gains from fraud reduction, whereas high-cost low-return measures will not be used – as would be expected from organizations whose goal is profit maximization.

Internet fraud may be committed by claiming a chargeback which is not justified ("friendly fraud"), or carried out by the use of credit card information which can be stolen in many ways, the simplest being copying information from retailers, either online or offline. Despite efforts to improve security for remote purchases using credit cards, security breaches are usually the result of poor practice by merchants. For example, a website that safely uses TLS to encrypt card data from a client may then email the data, unencrypted, from the webserver to the merchant; or the merchant may store unencrypted details in a way that allows them to be accessed over the Internet or by a rogue employee; unencrypted card details are always a security risk. Even encrypted data may be cracked.

Controlled payment numbers (also known as virtual credit cards or disposable credit cards) are another option for protecting against credit card fraud where presentation of a physical card is not required, as in telephone and online purchasing. These are one-time use numbers that function as a payment card and are linked to the user's real account, but do not reveal details, and cannot be used for subsequent unauthorised transactions. They can be valid for a relatively short time, and limited to the actual amount of the purchase or a limit set by the user. Their use can be limited to one merchant. If the number given to the merchant is compromised, it will be rejected if an attempt is made to use it a second time.

A similar system of controls can be used on physical cards. Technology provides the option for banks to support many other controls too that can be turned on and off and varied by the credit card owner in real time as circumstances change (i.e., they can change temporal, numerical, geographical and many other parameters on their primary and subsidiary cards). Apart from the obvious benefits of such controls: from a security perspective this means that a customer can have a Chip and PIN card secured for the real world, and limited for use in the home country. In this eventuality a thief stealing the details will be prevented from using these overseas in non chip and pin EMV countries. Similarly the real card can be restricted from use on-line so that stolen details will be declined if this tried. Then when card users shop online they can use virtual account numbers. In both circumstances an alert system can be built in notifying a user that a fraudulent attempt has been made which breaches their parameters, and can provide data on this in real time.

Additionally, there are security features present on the physical card itself in order to prevent counterfeiting. For example, most modern credit cards have a watermark that will fluoresce under ultraviolet light.[60] Most major credit cards have a hologram. A Visa card has a letter V superimposed over the regular Visa logo and a MasterCard has the letters MC across the front of the card. Older Visa cards have a bald eagle or dove across the front. In the aforementioned cases, the security features are only visible under ultraviolet light and are invisible in normal light.

The United States Department of Justice, United States Secret Service, Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement, and U.S. Postal Inspection Service are responsible for prosecuting criminals who engage in credit card fraud in the United States.[61] However, they do not have the resources to pursue all criminals, and in general they only prosecute cases exceeding $5,000.

Three improvements to card security have been introduced to the more common credit card networks, but none has proven to help reduce credit card fraud so far. First, the cards themselves are being replaced with similar-looking tamper-resistant smart cards which are intended to make forgery more difficult. The majority of smart card (IC card) based credit cards comply with the EMV (Europay MasterCard Visa) standard. Second, an additional 3 or 4 digit card security code (CSC) or card verification value (CVV) is now present on the back of most cards, for use in card not present transactions. Stakeholders at all levels in electronic payment have recognized the need to develop consistent global standards for security that account for and integrate both current and emerging security technologies. They have begun to address these needs through organisations such as PCI DSS and the Secure POS Vendor Alliance.[62]

Code 10[edit]

Code 10 calls are made when merchants are suspicious about accepting a credit card.

The operator then asks the merchant a series of YES or NO questions to find out whether the merchant is suspicious of the card or the cardholder. The merchant may be asked to retain the card if it is safe to do so. The merchant may receive a reward for returning a confiscated card to the issuing bank, especially if an arrest is made.[63][64][65][66]

Costs and revenues of credit card issuers[edit]

Costs[edit]

Charge offs[edit]

When a cardholder becomes severely delinquent on a debt (often at the point of six months without payment), the creditor may declare the debt to be a charge-off. It will then be listed as such on the debtor's credit bureau reports. (Equifax, for instance, lists "R9" in the "status" column to denote a charge-off.)

A charge-off is considered to be "written off as uncollectible". To banks, bad debts and fraud are part of the cost of doing business.

However, the debt is still legally valid, and the creditor can attempt to collect the full amount for the time periods permitted under state law, which is usually three to seven years. This includes contacts from internal collections staff, or more likely, an outside collection agency. If the amount is large (generally over $1,500–2,000), there is the possibility of a lawsuit or arbitration.

Fraud[edit]

Main article: Credit card fraud

In relative numbers the values lost in bank card fraud are minor, calculated in 2006 at 7 cents per 100 dollars worth of transactions (7 basis points).[67] In 2004, in the UK, the cost of fraud was over £500 million.[68] When a card is stolen, or an unauthorized duplicate made, most card issuers will refund some or all of the charges that the customer has received for things they did not buy. These refunds will, in some cases, be at the expense of the merchant, especially in mail order cases where the merchant cannot claim sight of the card. In several countries, merchants will lose the money if no ID card was asked for, therefore merchants usually require ID card in these countries. Credit card companies generally guarantee the merchant will be paid on legitimate transactions regardless of whether the consumer pays their credit card bill.

Most banking services have their own credit card services that handle fraud cases and monitor for any possible attempt at fraud. Employees that are specialized in doing fraud monitoring and investigation are often placed in Risk Management, Fraud and Authorization, or Cards and Unsecured Business. Fraud monitoring emphasizes minimizing fraud losses while making an attempt to track down those responsible and contain the situation. Credit card fraud is a major white collar crime that has been around for many decades, even with the advent of the chip based card (EMV) that was put into practice in some countries to prevent cases such as these. Even with the implementation of such measures, credit card fraud continues to be a problem.

Interest expenses[edit]

Banks generally borrow the money they then lend to their customers. As they receive very low-interest loans from other firms, they may borrow as much as their customers require, while lending their capital to other borrowers at higher rates. If the card issuer charges 15% on money lent to users, and it costs 5% to borrow the money to lend, and the balance sits with the cardholder for a year, the issuer earns 10% on the loan. This 10% difference is the "net interest spread" and the 5% is the "interest expense".

Operating costs[edit]

This is the cost of running the credit card portfolio, including everything from paying the executives who run the company to printing the plastics, to mailing the statements, to running the computers that keep track of every cardholder's balance, to taking the many phone calls which cardholders place to their issuer, to protecting the customers from fraud rings. Depending on the issuer, marketing programs are also a significant portion of expenses.

Rewards[edit]

Many credit card customers receive rewards, such as frequent flyer points, gift certificates, or cash back as an incentive to use the card. Rewards are generally tied to purchasing an item or service on the card, which may or may not include balance transfers, cash advances, or other special uses. Depending on the type of card, rewards will generally cost the issuer between 0.25% and 2.0% of the spread. Networks such as Visa or MasterCard have increased their fees to allow issuers to fund their rewards system. Some issuers discourage redemption by forcing the cardholder to call customer service for rewards. On their servicing website, redeeming awards is usually a feature that is very well hidden by the issuers.[69] With a fractured and competitive environment, rewards points cut dramatically into an issuer's bottom line, and rewards points and related incentives must be carefully managed to ensure a profitable portfolio.[citation needed] Unlike unused gift cards, in whose case the breakage in certain US states goes to the state's treasury,[70] unredeemed credit card points are retained by the issuer.[71]

Revenues[edit]

Interchange fee[edit]

Main article: Interchange fee

In addition to fees paid by the card holder, merchants must also pay interchange fees to the card-issuing bank and the card association.[72][73] For a typical credit card issuer, interchange fee revenues may represent about a quarter of total revenues.[74]

These fees are typically from 1 to 6 percent of each sale, but will vary not only from merchant to merchant (large merchants can negotiate lower rates[74]), but also from card to card, with business cards and rewards cards generally costing the merchants more to process. The interchange fee that applies to a particular transaction is also affected by many other variables including: the type of merchant, the merchant's total card sales volume, the merchant's average transaction amount, whether the cards were physically present, how the information required for the transaction was received, the specific type of card, when the transaction was settled, and the authorized and settled transaction amounts. In some cases, merchants add a surcharge to the credit cards to cover the interchange fee, encouraging their customers to instead use cash, debit cards, or even cheques.

Interest on outstanding balances[edit]

Interest charges vary widely from card issuer to card issuer. Often, there are "teaser" rates or promotional APR in effect for initial periods of time (as low as zero percent for, say, six months), whereas regular rates can be as high as 40 percent.[75] In the U.S. there is no federal limit on the interest or late fees credit card issuers can charge; the interest rates are set by the states, with some states such as South Dakota, having no ceiling on interest rates and fees, inviting some banks to establish their credit card operations there. Other states, for example Delaware, have very weak usury laws. The teaser rate no longer applies if the customer does not pay their bills on time, and is replaced by a penalty interest rate (for example, 23.99%) that applies retroactively.

Fees charged to customers[edit]

The major credit card fees are for:

  • Membership fees (annual or monthly), sometimes a percentage of the credit limit.
  • Cash advances and convenience cheques (often 3% of the amount)
  • Charges that result in exceeding the credit limit on the card (whether deliberately or by mistake), called over-limit fees
  • Exchange rate loading fees (sometimes these might not be reported on the customer's statement, even when applied).[76] The variation of exchange rates applied by different credit cards can be very substantial, as much as 10% according to a Lonely Planet report in 2009.[77]
  • Late or overdue payments
  • Returned cheque fees or payment processing fees (e.g. phone payment fee)
  • Transactions in a foreign currency (as much as 3% of the amount). A few financial institutions do not charge a fee for this.
  • Finance charge is any charge that is included in the cost of borrowing money.[78]

In the U.S., the Credit CARD Act of 2009 specifies that credit card companies must send cardholders a notice 45 days before they can increase or change certain fees. This includes annual fees, cash advance fees, and late fees.[79]

Controversy[edit]

One controversial area is the trailing interest issue. Trailing interest refers to interest that accrues on a balance after the monthly statement is produced, but before the balance is repaid. This additional interest is typically added to the following monthly statement. U.S. Senator Carl Levin raised the issue of millions of Americans affected by hidden fees, compounding interest and cryptic terms. Their woes were heard in a Senate Permanent Subcommittee on Investigations hearing which was chaired by Senator Levin, who said that he intends to keep the spotlight on credit card companies and that legislative action may be necessary to purge the industry.[80] In 2009, the C.A.R.D. Act was signed into law, enacting protections for many of the issues Levin had raised.

Hidden costs[edit]

In the United Kingdom, merchants won the right through The Credit Cards (Price Discrimination) Order 1990[81] to charge customers different prices according to the payment method; this was later removed by the EU's 2nd Payment Services Directive. As of 2007, the United Kingdom was one of the world's most credit card-intensive countries, with 2.4 credit cards per consumer, according to the UK Payments Administration Ltd.[82]

In the United States until 1984, federal law prohibited surcharges on card transactions. Although the federal Truth in Lending Act provisions that prohibited surcharges expired that year, a number of states have since enacted laws that continue to outlaw the practice; California, Colorado, Connecticut, Florida, Kansas, Massachusetts, Maine, New York, Oklahoma, and Texas have laws against surcharges. As of 2006, the United States probably had one of the world's highest if not the top ratio of credit cards per capita, with 984 million bank-issued Visa and MasterCard credit card and debit card accounts alone for an adult population of roughly 220 million people.[83] The credit card per U.S. capita ratio was nearly 4:1 as of 2003[84] and as high as 5:1 as of 2006.[85]

Over-limit charges[edit]

United Kingdom[edit]

Consumers who keep their account in good order by always staying within their credit limit, and always making at least the minimum monthly payment will see interest as the biggest expense from their card provider. Those who are not so careful and regularly surpass their credit limit or are late in making payments were exposed to multiple charges, until a ruling from the Office of Fair Trading[86] that they would presume charges over £12 to be unfair which led the majority of card providers to reduce their fees to £12.

The higher fees originally charged were claimed to be designed to recoup the card operator's overall business costs and to try to ensure that the credit card business as a whole generated a profit, rather than simply recovering the cost to the provider of the limit breach, which has been estimated as typically between £3–£4. Profiting from a customer's mistakes is arguably not permitted under UK common law, if the charges constitute penalties for breach of contract, or under the Unfair Terms in Consumer Contracts Regulations 1999.

Subsequent rulings in respect of personal current accounts suggest that the argument that these charges are penalties for breach of contract is weak, and given the Office of Fair Trading's ruling it seems unlikely that any further test case will take place.

Whilst the law remains in the balance, many consumers have made claims against their credit card providers for the charges that they have incurred, plus interest that they would have earned had the money not been deducted from their account. It is likely that claims for amounts charged in excess of £12 will succeed, but claims for charges at the OFT's £12 threshold level are more contentious.

United States[edit]

The Credit CARD Act of 2009 requires that consumers opt into over-limit charges. Some card issuers have therefore commenced solicitations requesting customers to opt into over-limit fees, presenting this as a benefit as it may avoid the possibility of a future transaction being declined. Other issuers have simply discontinued the practice of charging over-limit fees. Whether a customer opts into the over-limit fee or not, banks will in practice have discretion as to whether they choose to authorize transactions above the credit limit or not. Of course, any approved over limit transactions will only result in an over-limit fee for those customers who have opted into the fee. This legislation took effect on 22 February 2010. Following this Act, the companies are now required by law to show on a customer's bills how long it would take them to pay off the balance.

Neutral consumer resources[edit]

Canada[edit]

The Government of Canada maintains a database of the fees, features, interest rates and reward programs of nearly 200 credit cards available in Canada. This database is updated on a quarterly basis with information supplied by the credit card issuing companies. Information in the database is published every quarter on the website of the Financial Consumer Agency of Canada (FCAC).

Information in the database is published in two formats. It is available in PDF comparison tables that break down the information according to type of credit card, allowing the reader to compare the features of, for example, all the student credit cards in the database.

The database also feeds into an interactive tool on the FCAC website.[87] The interactive tool uses several interview-type questions to build a profile of the user's credit card usage habits and needs, eliminating unsuitable choices based on the profile, so that the user is presented with a small number of credit cards and the ability to carry out detailed comparisons of features, reward programs, interest rates, etc.

Credit cards in ATMs[edit]

Many credit cards can be used in an ATM to withdraw money against the credit limit extended to the card, but many card issuers charge interest on cash advances before they do so on purchases. The interest on cash advances is commonly charged from the date the withdrawal is made, rather than the monthly billing date. Many card issuers levy a commission for cash withdrawals, even if the ATM belongs to the same bank as the card issuer. Merchants do not offer cashback on credit card transactions because they would pay a percentage commission of the additional cash amount to their bank or merchant services provider, thereby making it uneconomical. Discover is a notable exception to the above. A customer with a Discover card may get up to $120 cash back if the merchant allows it. This amount is simply added to the card holder's cost of the transaction and no extra fees are charged as the transaction is not considered a cash advance.

Many credit card companies will also, when applying payments to a card, do so, for the matter at hand, at the end of a billing cycle, and apply those payments to everything before cash advances. For this reason, many consumers have large cash balances, which have no grace period and incur interest at a rate that is (usually) higher than the purchase rate, and will carry those balances for years, even if they pay off their statement balance each month.

Acceptance mark[edit]

An acceptance mark is a logo or design that indicates which card schemes an ATM or merchant accepts. Common uses include decals and signs at merchant locations or in merchant advertisements. The purpose of the mark is to provide the card holder with information where his or her card can be used. An acceptance mark differs from the a card product name (such as American Express Centurion card, Eurocard), as it shows the card scheme (group of cards) accepted. An acceptance mark however corresponds to the card scheme mark shown on a card.

An acceptance mark is however not an absolute guarantee that all cards belonging to a given card scheme will be accepted. On occasion cards issued in a foreign country may not be accepted by a merchant or ATM due to contractual or legal restrictions.

Credit cards as funding for entrepreneurs[edit]

Credit cards are a risky way for entrepreneurs to acquire capital for their start ups when more conventional financing is unavailable. Len Bosack and Sandy Lerner used personal credit cards[88] to start Cisco Systems. Larry Page and Sergey Brin's start up of Google was financed by credit cards to buy the necessary computers and office equipment, more specifically "a terabyte of hard disks".[89] Similarly, filmmaker Robert Townsend financed part of Hollywood Shuffle using credit cards.[90] Director Kevin Smith funded Clerks in part by maxing out several credit cards.[91] Actor Richard Hatch also financed his production of Battlestar Galactica: The Second Coming partly through his credit cards. Famed hedge fund manager Bruce Kovner began his career (and, later on, his firm Caxton Associates) in financial markets by borrowing from his credit card. UK entrepreneur James Caan (as seen on Dragons' Den) financed his first business using several credit cards.

Alternatives[edit]

Main article: Alternative payments

Modern alternatives to credit cards are mobile payments, cryptocurrencies and pay-by-hand.

See also[edit]

References[edit]

  1. ^O'Sullivan, Arthur; Steven M. Sheffrin (2003). Economics: Principles in action (Textbook). Upper Saddle River, New Jersey: Pearson Prentice Hall. p. 261. ISBN .
  2. ^ ab"The 10 most exclusive credit cards in the world". finder.com. 26 September 2017. Retrieved 13 October 2021.
  3. ^"Top 10 payment cards made out of unusual materials". Payspace Magazine. 18 August 2020. Retrieved 13 October 2021.
  4. ^Schneider, Gary (2010). Electronic Commerce. Cambridge: Course Technology. p. 497. ISBN .
  5. ^ ab"The Nilson Report". October 2019. Retrieved 13 October 2021.
  6. ^ISO/IEC 7810:2003, clause 5, Dimensions of card
  7. ^ISO/IEC 7810:2003 Identification cards — Physical characteristics
  8. ^"For Merchants - MasterCard Unembossed". MasterCard.
  9. ^"Bank Identification Number (BIN)".
  10. ^"ISO/IEC 7812-1:2017 Identification cards — Identification of issuers — Part 1: Numbering system".
  11. ^Dunaway, Jaime (18 April 2018). "Why Are Credit Card Numbers on the Back Now?". Slate. Retrieved 18 April 2018.
  12. ^(Chapters 9, 10, 11, 13, 25 and 26) and three times (Chapters 4, 8 and 19) in its sequel, Equality
  13. ^"Life before plastic: Historical look at credit card materials". creditcards.com. 12 August 2021.
  14. ^Charles Boston (6 March 2013). "Shopping Days In Retro Boston". shoppingdaysinretroboston.blogspot.com.
  15. ^"The Department Store Museum: Charge Cards". departmentstoremuseum.blogspot.com.
  16. ^"Credit card imprinter". Cultureandcommunication.org. Retrieved 28 July 2011.
  17. ^"Hartford Charga-plate Associates, Incorporated, Plaintiff-appellant, v. Youth Centre-cinderella Stores, Inc., Defendant-respondent, 215 F.2d 668 (1954)". Retrieved 11 November 2014.
  18. ^"The Travel Card that gave "CREDIT" to the public". Flying. Vol. 52 no. 6. June 1953. p. 11. Retrieved 11 November 2018.
  19. ^"History Of The Credit Card". www.creditcardprocessingspace.com. Retrieved 14 February 2013.
  20. ^ abMayyasi, Alex. "How Credit Cards Tax America". Pricenomics.
  21. ^O'Neill, Paul (27 April 1970). "A Little Gift from Your Friendly Banker". LIFE.
  22. ^LaMagna, Maria. "Metal credit cards: The latest American status symbol". MarketWatch. Retrieved 7 March 2018.
  23. ^"Credit Card Lending"(PDF).
  24. ^"Understanding how credit card minimum payments are set".
  25. ^Little, Ken. 2007. Personal Finance At Your Fingertips, p. 35 Penguin. ISBN 144062562X, 9781440625626
  26. ^"Report to the Congress on the Use of Credit Cards by Small Businesses and the Credit Card Market for Small Businesses"(PDF). Federal Reserve. Board of Governors of the Federal Reserve System. May 2010. Retrieved 4 May 2015.
  27. ^"5 Business Credit Card Myths That Can Cost Your Business Discover". www.discover.com. Retrieved 17 January 2019.
  28. ^"What is Extended Product Warranty? Discover". www.discover.com. Retrieved 17 January 2019.
  29. ^"What is Price Protection?
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    What you pay

    Credit Line

    $300–$5,000

    Annual Percentage Rate (APR) for Purchases

    22.99% variable APR

    APR for Balance Transfers

    22.99% variable APR

    Balance Transfer Fee

    $5 or 3% of transfer whichever amount is greater

    Minimum Interest Charge

    $1

    APR for Cash Advances

    25.24% variable APR

    Cash Advance Fee

    $10 or 5% of advance whichever amount is greater

    Annual Fee

    $29 annual fee*

    Foreign Transaction Fee

    3% of each transaction in U.S. dollars

    Late Payment

    Up to $40

    Returned Payment

    Up to $40

    TD Bank Visa® Credit Card Benefits

    Your TD Cash Secured Credit Card comes with an added layer of protection such as emergency card replacement, roadside assistance and more.

    Find out how to build your credit

    Understanding your credit score & report

    Get to know your credit score and how you can improve it

    Building a good credit score

    Find out how to build and improve your credit

    Credit scores & reports interactive guide

    Get information on your credit score, how it’s calculated and how to protect it

    Apply for a TD Cash Secured Card

    Online

    In person

    Book an appointment at your local TD Bank to set up your account

    *Read important terms and conditions for details about APRs, fees, eligible purchases, balance transfers and program details.

    1All rewards are earned as points redeemable for Cash Back. Eligible purchases do not include purchases of any cash equivalents, money orders, and/or gift cards or reloading of gift cards.

    2Collateral Account for the TD Cash Secured Credit Card: In order to establish and maintain the Secured Card account (the “Credit Card Account”), and in consideration of the issuance of the Credit Card Account, you must establish and maintain an individual TD Bank savings account (the “Collateral Account”) that you designate to secure repayment of your Credit Card Account in your name, and you must grant us a security interest in the funds in the Collateral Account. The minimum credit limit for the Credit Card Account is $300, and you must deposit and maintain an amount up to your Credit Card Account credit limit in the Collateral Account within fifteen (15) business days from approval (if your account is approved). The amount you deposit up to your approved credit limit within fifteen (15) business days from approval will be your credit limit for your Credit Card Account. You may not make any withdrawals from the Collateral Account while it secures your Card. If you do not pay your Credit Card Account balance or you or we decide to close your Credit Card Account for any reason, you authorize us to apply all of the funds in the Collateral Account to your outstanding Credit Card Account balance. For details, read the Personal Credit Card Agreement for TD Cash Secured, Important Terms and Conditions for TD Cash Secured, and TD Simple Savings Account Guide.

    By clicking on this link you are leaving our website and entering a third-party website over which we have no control.

    Neither TD Bank US Holding Company, nor its subsidiaries or affiliates, is responsible for the content of third-party sites hyper-linked from this page, nor do they guarantee or endorse the information, recommendations, products or services offered on third-party sites.

    Third-party sites may have different Privacy and Security policies than TD Bank US Holding Company. You should review the Privacy and Security policies of any third-party website before you provide personal or confidential information.

    View the Personal Credit Card Agreement for TD Cash Secured.

    The Contactless Symbol and Contactless Indicator are trademarks owned by and used with permission of EMVCo, LLC.

    *Read important terms and conditions for details about APRs, fees, eligible purchases, balance transfers and program details.

    1All rewards are earned as points redeemable for Cash Back. Eligible purchases do not include purchases of any cash equivalents, money orders, and/or gift cards or reloading of gift cards.

    2Collateral Account for the TD Cash Secured Credit Card: In order to establish and maintain the Secured Card account (the “Credit Card Account”), and in consideration of the issuance of the Credit Card Account, you must establish and maintain an individual TD Bank savings account (the “Collateral Account”) that you designate to secure repayment of your Credit Card Account in your name, and you must grant us a security interest in the funds in the Collateral Account. The minimum credit limit for the Credit Card Account is $300, and you must deposit and maintain an amount up to your Credit Card Account credit limit in the Collateral Account within fifteen (15) business days from approval (if your account is approved). The amount you deposit up to your approved credit limit within fifteen (15) business days from approval will be your credit limit for your Credit Card Account. You may not make any withdrawals from the Collateral Account while it secures your Card. If you do not pay your Credit Card Account balance or you or we decide to close your Credit Card Account for any reason, you authorize us to apply all of the funds in the Collateral Account to your outstanding Credit Card Account balance. For details, read the Personal Credit Card Agreement for TD Cash Secured, Important Terms and Conditions for TD Cash Secured, and TD Simple Savings Account Guide.

    By clicking on this link you are leaving our website and entering a third-party website over which we have no control.

    Neither TD Bank US Holding Company, nor its subsidiaries or affiliates, is responsible for the content of third-party sites hyper-linked from this page, nor do they guarantee or endorse the information, recommendations, products or services offered on third-party sites.

    Third-party sites may have different Privacy and Security policies than TD Bank US Holding Company. You should review the Privacy and Security policies of any third-party website before you provide personal or confidential information.

    View the Personal Credit Card Agreement for TD Cash Secured.

    The Contactless Symbol and Contactless Indicator are trademarks owned by and used with permission of EMVCo, LLC.

    back to topTop
    Источник: https://www.td.com/us/en/personal-banking/credit-cards/secured-credit-card/

    What Credit Score Do You Need To Get a Rewards Credit Card?

    Disclosure: We are committed to recommending the best products for our readers. We may receive compensation when you click on links to products, but this never affects our reviews or recommendations.

    Rewards credit cards are some of the most sought-after credit cards. According to a May 2017 Experian survey, 45% of the participants said they wanted credit cards with rewards. These credit cards pay an incentive—cash back, points, or miles—on the purchases you make. After you’ve accumulated enough rewards, you can redeem them for cash back, a credit card statement credit, flights, hotel stays, and more. Credit card issuers reserve rewards credit cards for the most creditworthy consumers. The exact credit score you need to get a rewards card depends on the card you’re applying for.

    Credit scores generally range from 300 to 850. The higher your credit score, the more favorably lenders and credit card issuers view you, and the more credit cards you’re able to qualify for. Want to know where your credit stands? You can check your credit score for free using a few different services—Credit Karma, Credit Sesame, Capital One’s CreditWise, Discover’s FICO Credit Scorecard, and WalletHub are a few. You can also purchase your FICO score.

    Important:

    Credit card companies look at more than your credit score when evaluating your application. The details of your credit history and your income can matter, too.

    Some credit card issuer websites include the credit level required for each credit card, making it easier to tell whether you have the credit score you need to get a rewards credit card. For credit cards that don’t disclose a recommended credit level, you’ll have to use your best judgment based on the credit card issuer and the rewards structure. Checking your credit score before you apply for a rewards credit card helps you narrow down your options.

    Excellent Credit

    Credit cards with the best rewards rate typically require you to have excellent credit. A credit score in the upper 700s or higher gives you access to the best rewards credit cards—those that pay higher rewards, offer huge sign-up bonuses, and come with extra perks and benefits.

    You'll prove to credit card issuers that you're trustworthy enough to have your choice of credit cards through a number of your actions. These include being responsible with your credit for several years, having no late payments or other derogatory credits on your credit report, and keeping your existing credit card balances low.

    Good Credit

    Someone with a credit score in the lower 700s can get approved for most, but not all, rewards credit cards. Premium rewards credit cards, which have higher rewards payouts and often higher annual fees, are typically off-limits to applicants with scores below the 740s.

    You can fall into this category even with a clean credit report if you don’t have a long credit history or you don’t have experience with multiple types of credit.

    Fair Credit

    As your credit score falls into the 600s, your options for a credit card—particularly rewards cards—become more limited. Previous late payments, high credit card balances, multiple credit inquiries, and old delinquencies can keep you from being approved for credit cards with the highest rewards rates. Instead, look for rewards credit cards with lower payout rates and fewer perks. If you’re a student, shop around for credit cards geared toward students.

    Poor Credit

    Having a poor credit score (600 and below) severely limits your options for most credit cards, including rewards credit cards. It doesn’t mean you can’t get approved for a rewards credit card, but your options are far more narrow.

    The Discover it Secured card is a great option for someone who’s rebuilding their credit score but wants to earn rewards. The credit card requires you to make a security deposit against your credit limit. Your purchases earn rewards and you’ll get your deposit back after several months as long as you make all your payments on time.

    What Lenders Consider Besides Credit Scores

    Your credit score isn’t the only thing credit card issuers check to qualify you for a rewards credit card. They’ll also consider your income, the amount of debt you have, how many credit cards you have open, and any recent delinquencies, along with a few other factors. Having your credit in the best shape possible improves your chances of being approved for a rewards credit card.

    To limit the number of people who open credit cards just to get a new cardmember bonus, some credit card issuers limit the number of credit cards you can open within a period of time. Even with excellent credit, you can be denied for some credit cards if you’ve opened several credit cards within the past two years. Pay attention to each credit card issuer’s fine print to be sure the number credit cards you’ve opened in the past two years won’t count against you.

    Источник: https://www.thebalance.com/what-credit-score-do-you-need-to-get-a-rewards-credit-card-4588390

    Bank of America Cash Rewards Credit At&t vs verizon for Students: Review

    The Bank of America Cash Rewards Credit Card for Students, which offers 3% cash back in the category of your choice with no annual fee, is a great option for students who are just beginning to establish their credit. With great customer service, easy online account management, and personalization features, the Bank of America Cash Rewards Credit Card for Students offers an easy way for students to build credit while also earning rewards. 

    Bank of America Cash Rewards Credit Card for Students Rates and Fees

    ANNUAL FEEINTRO APRREGULAR APRRECOMMENDED CREDIT SCORE
    No annual feeFor the first 15 billing cycles, 0%13.99%–23.99% (variable)620–659

    Overview of Rates and Fees 

    The Bank of America Cash Rewards Credit Card for Students has no annual fee, which simplifies your path to good credit. For the first 15 statement-closing dates, Bank of America offers a 0% introductory APR for students. However, once those 15 statements have occurred, the APR will meghan king edmonds husband affair set between 13.99% and 23.99%. 

    The annual percentage rate (APR) is the annual cost of the loan, including fees, to the borrower. The interest rate, on the other hand, is the annual cost of just the loan amount to the borrower. The APR gives you more detailed information on what you’re paying. Students can avoid paying high interest rates on their credit card by paying their balance in full by the monthly due date. 

    Important APR rates and other fees:

    • Balance Transfer Introductory APR: For the capital one full site on mobile 15 statements, there is a 0% balance transfer APR. Having an introductory balance transfer allows you to transfer any remaining debt from another credit card to your Bank of America Cash Rewards Credit Card for Students. 
    • Balance Transfer Fee: The balance fee is either $10 or 3% of the amount of each transaction, whichever is greater. 
    • Foreign Transaction Fee: You will have to pay 3% of the U.S. dollar amount spent in a foreign country or if the transaction is made or processed outside of the U.S. 

    As with any credit card, the Bank of America Cash Rewards Credit Card for Students comes with a late payment penalty. You can avoid penalty fees by paying your statement in full or at least meeting the minimum payment each month.

    If you do not make the minimum payment, you’ll incur a late payment fee of $29. If bank of america cash rewards credit card credit score rack up additional late payments within the next six billing cycles, your late payment fee will rise to $40. However, if your credit card statement is $100 or less, you will not be charged a late fee on the payment due date. 

    Earn Cash Back

    Quite possibly, the biggest selling point of this card is its 3% cash back rewards. Bank of America assigns merchants a category code based on the types of products or services that they sell, and this category code helps students earn cash back on the purchases they’ve made. 

    Cash back categories include: 

    • Gas
    • Online shopping 
    • Dining 
    • Travel
    • Drug stores
    • Home improvement and furnishings 

    The card’s cash back settings are automatically set to “Gas” for the first payment cycle unless the student changes it. 

    Bank of America also offers an easy-to-use mobile app, which students can use to change their cash back category for the month. This means that if you’re planning a road trip, you could change your cash back category to gas one month and then switch to dining the next month. 

    Each cash back category comes with specific exemptions. Since Bank of America does not control how purchases are classified, some purchases may not fall within the category you expect them to. To help you better understand cash back categories, Bank of America provides a helpful guide.

    What Do I Need to Qualify for This Credit Card? 

    Bank of America designed the Cash Rewards Credit Card for Students to help students build credit for a successful financial future. They suggest that students wishing to establish their credit should consider this card. Established credit history can help you apply for a car loan or even an apartment. 

    If you’re just starting out and do not yet have credit history, you can add a co-signer to your application. Adding a co-signer is a fairly simple process that can help tremendously with building your credit. A co-signer can be someone who you trust to vouch for your credit (such as a parent, relative, or significant other). Having a what is usaa routing number ensures the bank that someone will pay back your balance. If you miss payments, the bank can then go to your co-signer, making them responsible for paying the remaining balance. 

    To start building credit, banks typically require some sort of credit history. Alternatively, you can open a checking account at the bank where you would like to open a credit card. For instance, if you’ve had a checking account for a few years and have a history of good business with the bank, they are more likely to trust you as a customer and may allow you to open a credit card.

    Application Requirements 

    The credit card application process is simple and can be completed online or in person. You can even schedule an appointment with a Bank of America specialist to explore your credit card options.

    The credit card application will ask for your student status, year in school, employment status, annual income, and monthly housing payment. 

    What Makes This Credit Card a Great Option for Students?

    Bank of America offers a $200 cash rewards bonus if you make at least $1,000 in purchases during the first 90 days of having the card. In addition, Bank of America protects your account by blocking potential fraud and abnormal money spending. They also provide a $0 Liability Guarantee if fraudulent transactions do occur on the account. 

    Bank of America Mobile App and Online Banking 

    Bank of America’s mobile app makes managing finances easier by sending you instant alerts and helping you track your money habits. Fortified with Touch ID or Face ID, the mobile app ensures users can log www3 fmovies con quickly and securely to monitor their finances. Within the application, students can set unusual activity alerts to make sure they are protected from fraudulent activity. 

    In addition, Bank of America’s online banking helps students streamline and manage their personal finances. You can quickly pay credit card bills, check available credit, and transfer funds through the online banking system or mobile app. It’s reassuring to know you can stay up to date with your finances and pay off your credit card statement while away at university or visiting home. Having paperless statements also reduces paper consumption while giving you a higher level of account security. 

    Online banking helps you to establish good banking and credit habits. On the mobile app, it’s easy to track your monthly spending and then compare your spending habits throughout the year. 

    Bank of America also enables users to personalize their dashboard to fit their preferences. On the dashboard, students can add alerts, view their monthly expenses, reference their FICO score, and more. The “Spending & Budgeting” tab is an additional perk for students that allows them to track categorical spending and set budgets. 

    Are There Any Downsides?

    Depending on your credit history, the APR for this card could be quite high. Although your APR could be as low as 13.99%, on the high end, it could be 23.99%. To avoid high interest rates, make sure that you pay at least the minimum on the statement each month. 

    This credit card also has a $2,500 quarterly spending limit on your category of choice. This will break down to 3% cash back on the category of your choice (online bank of america cash rewards credit card credit score, travel, dining, home improvement, drug stores, or gas) and 2% cash back on grocery stores and wholesale clubs, up until your total cash back reaches $2,500. Once you reach $2,500, you will then earn 1% cash back for the remainder of the quarter.

    Bottom Line 

    The Bank of America Cash Rewards Credit Card for Students is an excellent credit card option for students wishing to build their credit history. Bank of America offers online and in-person consultations so that students can talk to real professionals about establishing their credit wisely. 

    This card is best for students who already have some credit history and want to earn cash rewards on everyday spending. Buying food and gas is an unavoidable expense for many students, but with the cash back rewards option, students can get some of that money back. 

    Источник: https://collegefinance.com/student-credit-cards/bank-of-america-cash-rewards-credit-card-for-students-review

    What Credit Score Do You Need To Get a Rewards Credit Card?

    Disclosure: We are committed to recommending the best products for our readers. We may receive compensation when you click on links to products, but this never affects our reviews or recommendations.

    Rewards credit bank of america cash rewards credit card credit score are some of the most sought-after credit cards. According to a May 2017 Experian survey, 45% of the participants said they wanted credit cards with rewards. These credit cards pay an incentive—cash back, points, or miles—on the purchases you make. After you’ve accumulated enough rewards, you can redeem them for cash back, a credit card statement credit, flights, hotel stays, and more. Credit card issuers reserve rewards credit cards for the most creditworthy consumers. The exact credit score you need to get a rewards card depends on the card you’re applying for.

    Credit scores generally range from 300 to 850. The higher your credit score, the more favorably lenders and credit card issuers view you, and the wilson county bank and trust smithville tn credit cards you’re able to qualify for. Want to know where your credit stands? You can check your credit score for free using a few different services—Credit Karma, Credit Sesame, Capital One’s CreditWise, Discover’s FICO Credit Scorecard, and WalletHub are a few. You can also purchase your FICO score.

    Important:

    Credit card companies look at more than your credit score when evaluating your application. The details of your credit history and your income can matter, too.

    Some credit card issuer websites include the credit level required for each credit card, making it easier to tell whether you have the credit score you need to get a rewards credit card. For credit cards that don’t disclose a recommended credit level, you’ll have to use your best judgment based on the credit card issuer and the rewards structure. Checking your credit score before you apply for a rewards credit card helps you narrow down your options.

    Excellent Credit

    Credit cards with the best rewards rate typically require you to have excellent credit. A credit score in the upper 700s or higher gives you access to the best rewards credit cards—those that pay higher rewards, offer huge sign-up bonuses, and come with extra perks and benefits. bank of america mastercard bill pay You'll prove to credit card issuers that you're trustworthy enough to have your choice of credit cards through a number of your actions. These include being responsible with your credit for several years, having no late payments or other derogatory credits on your credit report, and keeping your existing credit card balances low.

    Good Credit

    Someone with a credit score in the lower 700s can get approved for most, but not all, rewards credit cards. Premium rewards credit cards, which have higher rewards payouts and often higher annual fees, are typically bank of america company id workday to applicants with scores below the 740s.

    You can fall into this category even with a clean credit report if you don’t have a long credit history or you don’t have experience with multiple types of credit.

    Fair Credit

    As your credit score falls into the 600s, your options for a credit card—particularly rewards cards—become more limited. Previous late payments, high credit card balances, multiple credit inquiries, and old delinquencies can keep you from being approved for credit cards with the highest rewards rates. Instead, look for rewards credit cards with lower payout rates and fewer perks. If you’re a student, shop around for credit myaccountonline entergy geared toward students.

    Poor Credit

    Having a poor credit score (600 and below) severely limits your options for most credit cards, including rewards credit cards. It doesn’t mean you can’t get approved for a rewards credit card, but your options are far more narrow.

    The Discover it Secured card is a great option for someone who’s rebuilding their credit score but wants to earn rewards. The credit card requires you to make a security deposit against your credit limit. Your purchases earn rewards and you’ll get your deposit back after several months as long as you make all your payments on time.

    What Lenders Consider Besides Credit Scores

    Your credit score isn’t the only thing credit card issuers check to qualify you for a rewards credit card. They’ll also consider your income, the amount of debt you have, how many credit cards you have open, and any recent delinquencies, along with a few other factors. Having your credit in the best shape possible improves your chances of being approved for a rewards credit card.

    To limit the number of people who open credit cards just to get a new cardmember bonus, some credit card issuers limit the number of credit cards you can open within a period of time. Even with excellent credit, you can be denied for some credit cards if you’ve opened several credit cards within the past two years. Pay attention to each credit card issuer’s fine print to be sure the number credit cards you’ve opened in the f# power chord guitar two years won’t count against you.

    Источник: https://www.thebalance.com/what-credit-score-do-you-need-to-get-a-rewards-credit-card-4588390
    Recently Viewed

    Build your credit and earn 1% Cash Back on all eligible purchases1

    • Make purchases like with any credit card
    • Build your credit by making on-time payments
    • Earn 1% Cash Back on all eligible purchases1
    • Your linked savings account works as a security deposit2

    Read terms and conditions for important information about APRs, fees, eligible purchases, balance transfers and program details.

    Build your credit and earn 1% Cash Back on all eligible purchases1

    • Make purchases like with any credit card
    • Build your credit by making on-time payments
    • Earn 1% Cash Back on all eligible purchases1
    • Your linked savings account works as a security deposit2

    Read terms and conditions for important information about APRs, fees, eligible purchases, balance transfers and program details.

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    How to get a TD Cash Secured Credit Card

    Apply for the card

    Apply online for the TD Cash Secured Credit Card

    Open a savings account

    Once you're conditionally approved, you will get instructions to open and fund a TD Simple Savings account as your security deposit

    Fund your savings account

    You'll need a minimum of $300 in your savings account to secure your card. You can use funds from another TD Bank, your debit card or an external account

    Tabs Menu: to navigate this menu, use the left & right arrow keys to change tabs. Press tab to go into the content. Shift-tab to return to the tabs.
    • How it works

    • Rates and fees

    How the TD Cash Secured Credit Card works

    • Apply online
      If qualified, you'll receive conditional approval
    • Make a security deposit
      Once conditionally approved you'll open a TD Simple Savings account and make a deposit to secure your credit line
    • Set your credit limit
      Your security deposit is your credit limit. That means you can decide the amount that's best for you—from $300–$5,000, subject to credit approval
    • Graduate to an unsecured card
      If you use and maintain the card and keep it in good standing, you may be eligible to graduate to an unsecured TD Bank Credit Card. Please keep in mind, not all accounts qualify for graduation. A decision to graduate is based on responsible credit management across all of your credit cards and loans, including TD and others.

    Rates and fees

    What you pay

    Credit Line

    $300–$5,000

    Annual Percentage Rate (APR) for Purchases

    22.99% variable APR

    APR for Balance Transfers

    22.99% variable APR state bank of india fixed deposit rates

    Balance Transfer Fee

    $5 or 3% of transfer whichever amount is greater

    Minimum Interest Charge

    $1

    APR for Cash Advances

    25.24% variable APR

    Cash Advance Fee bank of america cash rewards credit card credit score or 5% of advance whichever amount is greater

    Annual Fee

    $29 annual fee*

    Foreign Transaction Fee

    3% of each transaction in U.S. dollars

    Late Payment

    Up to $40

    Returned Payment bank of america cash rewards credit card credit score what is cit bank

    Up to $40

    TD Bank Visa® Credit Card Benefits

    Your TD Cash Secured Credit Card comes with an added layer of protection such as emergency card replacement, roadside assistance and more.

    Find out how to build your credit

    Understanding your credit score & report

    Get to know your credit score and how you can improve it

    Building a good credit score

    Find out how to build and improve your credit

    Credit scores & reports interactive guide

    Get information on your credit score, how it’s calculated and how to protect it

    Apply for a TD Cash Wells fargo one 800 customer service number Card

    Online

    In person

    Book an appointment at your local TD Bank to set up your account

    *Read important terms and conditions for details about APRs, fees, eligible purchases, balance transfers and program details.

    1All rewards are earned as points redeemable for Cash Back. Eligible purchases do not include purchases of any cash equivalents, money orders, and/or gift cards or reloading of gift cards.

    2Collateral Account for the TD Cash Secured Credit Card: In order to establish and maintain the Secured Card account (the “Credit Card Account”), and in consideration of the issuance of the Credit Card Account, you must establish and maintain an individual TD Bank savings account (the “Collateral Account”) that you designate to secure repayment of your Credit Card Account in your name, and you must grant us a security interest in the funds in the Collateral Account. Blackberry stock exchange minimum credit limit for the Credit Card Account is $300, and you must deposit and maintain an amount up to your Credit Card Account credit limit in the Collateral Account within fifteen (15) business days from approval (if your j crew comenity sign in is approved). The amount you deposit up to your approved credit limit within fifteen (15) business days from approval will be your credit limit for your Credit Card Account. You may not make any withdrawals from the Collateral Account while it secures your Card. If you do not pay your Credit Card Account balance or you or we decide to close your Credit Card Account for any reason, you authorize us to apply all of the funds in the Collateral Account to your outstanding Credit Card Account balance. For details, read the Personal Credit Card Agreement for TD Cash Secured, Important Terms and Conditions for TD Cash Secured, and TD Simple Savings Account Guide.

    By clicking on this link you are leaving our website and entering a third-party website over which we have no control.

    Neither TD Bank US Holding Company, nor its subsidiaries or affiliates, is responsible for the content of third-party sites hyper-linked from this page, nor do they guarantee or endorse the information, recommendations, products or services offered on third-party sites.

    Third-party sites may have different Privacy and Security policies than TD Bank US Holding Company. You should review the Privacy and Security policies of any third-party website before you provide personal or confidential information.

    View the Personal Credit Card Agreement for TD Cash Secured.

    The Contactless Symbol and Contactless Indicator are trademarks owned by and used with permission of EMVCo, LLC.

    *Read important terms and conditions for details about APRs, fees, eligible purchases, balance transfers and program details.

    1All rewards are earned as points redeemable for Cash Back. Eligible purchases do not include purchases of any cash equivalents, money orders, and/or gift cards or reloading of gift cards.

    2Collateral Account for the TD Cash Secured Credit Card: In order to establish and maintain the Secured Card account (the “Credit Card Account”), and in consideration of the issuance of the Credit Card Account, you must establish and maintain an individual TD Bank savings account (the “Collateral Account”) that you designate to secure repayment of your Credit Card Account in your name, and you must grant us a security interest in the funds in the Collateral Account. The minimum credit limit for the Credit Card Account is $300, and you must deposit and maintain an amount up to your Credit Card Account credit limit in the Collateral Account within fifteen (15) business days from approval (if your account is approved). The amount you deposit up to your approved credit limit within fifteen (15) business days from approval will be your credit limit for your Credit Card Account. You may not make any withdrawals from the Collateral Account while it secures your Card. If you do not pay your Credit Card Account balance or you or we decide to close your Credit Card Account for any reason, you authorize us to apply all of the funds in the Collateral Account to your outstanding Credit Card Account balance. For details, read the Personal Credit Card Agreement for TD Cash Secured, Important Terms and Conditions for TD Cash Secured, and TD Simple Savings Account Guide.

    By clicking on this link you are leaving our website and entering a third-party website over which we have no control.

    Neither TD Bank US Holding Company, nor its subsidiaries or affiliates, is responsible for the content of third-party sites hyper-linked from this page, nor do they guarantee or endorse the information, recommendations, products or services offered on third-party sites.

    Third-party sites may have different Privacy and Security policies than TD Bank US Holding Company. You should review the Privacy and Security policies of any third-party website before you provide personal or confidential information.

    View the Personal Credit Card Agreement for TD Cash Secured.

    The Contactless Symbol and Contactless Indicator are trademarks owned by and used with permission of EMVCo, LLC.

    back to topTop
    Источник: https://www.td.com/us/en/personal-banking/credit-cards/secured-credit-card/

    Best Bank of America Credit Cards of November 2021– Top 10 Reviews

    Bank of Bank of america cash rewards credit card credit score Premium Rewards® Credit Card

    Frequent travelers looking for flexibility in credit card rewards ought to take a look at the Bank of America® Premium Rewards® credit card

    • Offers a lot of luxury perks
    • Offers premium travel protections
    • No foreign transaction fees

    Best rewards limited to certain customers

    As the name implies, this is a premium type of BoA card, and therefore, expect premium fees with good packaging. It charges $95 annual fees. However, this annual fee packs a lot of goodies including:

    2 points per dollar on travel and dining purchases and 1.5 points per dollar on all other spendings. You can still boost the rewards by 25% – 75% if you are a bank of America preferred rewards member (terms apply). 

    That said, you have a lot of options when it comes to redeeming your points. These include requesting a deposit into the more eligible bank of America or Merrill account. Or you can redeem your rewards for gift cards and other purchases at the Bank of America Travel Center or credit card statement credits (terms apply).

    Bank of America® Customized Cash Rewards Credit

    Looking for a credit card that lucrative cash rewards offer on where you spend most, the Bank of America® Customized Cash Rewards credit card is a good option to consider.

    • Lower purchase limit to earn a welcome bonus.
    • Good rewards earning potential
    • Option to change 3% bonus category monthly
    • High balance transfer fee
    • 3% foreign transaction fee

    This credit card stand stands out among other cashback cards in many ways. To begin with, you get to earn a 200 online cash reward bonus for at least $1,000 in purchases in the first 90 days of account opening.

     In addition, the $0 annual fee offers you the freedom to choose your own 3% bonus category from a list of options and change that selection once a month. The six options that you can choose from include:

    • Gas.
    • Online shopping.
    • Dining.
    • Travel.
    • Drugstores.
    • Home improvement and furnishings.

    Other bonuses include 2% back on grocery store purchases and wholesale clubs for the first $2,500 of combined bonus category/ grocery store/ wholesale club spending per quarter. After hitting that limit, you’ll earn 1% back on these purchases.  

    Bank of America® Travel Rewards Credit Card

    Looking for a BoA credit card that will reward you unlimited points on travels, this card will achieve that at no foreign transaction fees and a $0 annual fee.

    • Earn unlimited points on all purchases
    • $0 annual fee.
    • No foreign transaction fees
    • No bonus categories to boost reward earnings
    • APR can be high, depending on creditworthiness

    Eligible new cardholders worldwide travel insurance including usa earn a welcome bonus of 25,000 online bonus points for at least $1,000 in purchases in the first 90 days of account opening.

    Every cardholder earns an unlimited 1.5 points for every dollar that they spend, regardless of spending category. This has the potential to increase by 25% -75% if you are a preferred reward card owner. 

    Rewards never expire as long as the account is open, but some of the redemption options have a time limit attached. Points can be redeemed for credit against any travel dining purchases. For instance, you can redeem statement credits when paying for flights, hotels, vacation packages, rental cars, or baggage fees.

    Lastly, it is among the few travel cards that will offer you the interest rate of 0% intro APR for 15 billing cycles on purchases, and then the ongoing APR of 13.99% – 23.99% Variable APR. 

    Bank of America Business Advantage Travel Rewards

    For small-business owners looking for a simple and versatile reward card, this could be what you are looking for.

    • Doesn’t charge an annual fee
    • Doesn’t have a reward cap 
    • No foreign transaction fees
    • Requires excellent credit
    • Target to redeem the welcome bonus is a lot.

    If you make at least $3,000 in a net purchase within 90 days when i think of the goodness of jesus kanye west your account opening, you stand a chance of earning a welcome 30,000 bonus point. The bonus point can be redeemed for a $300 statement credit towards travel or dining purchases. 

    On-going rewards include earning unlimited 1.5 points every time for every $1 spent on all purchases anywhere no matter how much you spent. The points don’t expire. 

    In addition, you can earn points for every dollar spent on travel purchases booked through the BoA travel center. Despite all the perks, it has a $0 annual fee. The rewards could be best in class if you keep a certain amount of money in eligible Bank of America® and Merrill business accounts.

    Alaska Airlines Visa Signature® Credit Card

    West Coast frequent fliers can earn the best annual companion pass.

    • Redeem miles for flights with over a dozen airline global partners
    • Free checked bag on Alaska Airline
    • Annual Companion fare can save you hundreds of dollars
    • The companion ticket is limited to Alaska Airlines flights
    • No lounge benefits or priority boarding

    Alaska Airlines Visa Signature® credit card will introduce you to a great welcome bonus. A new account can receive 50,000 bonus miles after you make $2,000 or more in purchases within the first 90 days of your account opening.

    However, it’s most famous for its annual companion pass. This benefit can be used to purchase a ticket for your companion once per year for as little as $121 with no blackout dates. Cardholders receive the companion fare every year when they renew the card.

    You will also enjoy 20% back on all Alaska Airlines inflight purchases and 50% off day passes at the Alaska Lounge when you pay with your new card.

    In addition, you will earn unlimited 3 miles for every $1 spent on eligible Alaska Airlines purchases and an unlimited 1 mile for every $1 spent on all other purchases. Your miles don’t expire on active accounts.

    Though this credit card charges $75 annual fees, the companion pass, is it safe to give someone your bank account number checked bag, and other travel benefits can more than makeup for it.

    BankAmericard® Credit Card for Students

    Those with limited or no credit history may qualify, so this card offers an excellent opportunity to build credit.

    • Fee-free balance transfer intro offer
    • Longer-than-average 0% Intro APR offer
    • Applicants with limited or no credit history may qualify
    • No rewards program
    • It charges a 3% foreign transaction fee

    This is a great option for someone who is just starting, such as students. The card is designed to assist you to develop a good credit habit and stay in control of your finances. 

    Despite having a $0 annual fee, the credit card boasts a regular 12.99% – 22.99% Variable APR on purchases and balance transfers made within 60 days of opening your account and all purchases made during the introductory period.

    The credit score is fair (650 – 699), but it charges 3% on foreign transactions. There are several other benefits including free access to FICO score, overdraft protection, free and easy ShopSafe service among others. 

    Bank of America® Customized Cash Rewards Secured

    Looking for the best credit card for bad credit on our list, Bank of America® Customized Cash Rewards Secured is here for you.

    • Competitive rewards rates for a secured card
    • It may be upgraded to an unsecured card with responsible use
    • No annual fee
    • Minimum security deposit required but doesn’t earn interest
    • Balance transfer fee

    This bank is designed with your financial security in mind. As you open this account, you will be required to make a refundable security deposit of at least $300. The maximum-security deposit amount can go up to $4,900 and the amount of security deposit you make will determine your maximum credit limit. 

    Once that is done, you are in for huge rewards. You will earn 3% cashback in the eligible category of your choice, 2% cash back at grocery stores and wholesale clubs, and 1% cashback on all other purchases. You’ll also earn 3% and 2% cashback on the first $2,500 in combined categories each quarter, then 1%. 

    All these come at a $0 annual fee. The only things we never liked is their poor credit score (0-649), security deposit, and balance transfer fees.

    Air France KLM World Elite Mastercard®

    Looking for an airline credit card with the best international travel rewards per dollar spent, Air France KLM World Elite Mastercard® is a great choice.

    • It offers bumper anniversary rewards
    • Earning 1.5 miles for all purchases sounds great
    • You can redeem points for travel on Air France, KLM, and other Skyteam partners.
    • High annual fee charges
    • High charges on the flying blue program.

    Earn an unlimited 1.5 miles per dollar in all purchases everywhere.

    But that is not all, you also earn  3x miles per dollar spent directly on Air France, KLM Royal Bank of america cash rewards credit card credit score Airlines, and SkyTeam member airlines (eg: Delta Airlines, Korean Air, Aeromexico). 

    Their welcome bonus is also great as you stand to earn 50,000 Bonus Miles after you make $2,000 or more in purchases within the first 90 days of your account opening. 

    Each cardholder will also celebrate their card anniversaries with a lot of rewards upon renewal. These include achieving elite status by getting elite points upon approval. These enable you to gain status and move up a level as a Flying Blue member.

    You can also earn an additional 40 XP each year by spending at least $15,000 within your anniversary year. Additionally, you’ll earn 5,000-anniversary miles whenever you spend at least $50 within your anniversary year.

    Even though they charge $89 annual fees, anniversary miles and XP points will make you pay that fee without feeling the pinch. 

    Amtrak Guest Rewards® World Mastercard®

    This is our best option on the list for those who love to travel by train.

    • Offer annual companion coupons to new cardholders
    • You get 5% of your redeemed points back when you use them to book an Amtrak ticket.
    • You get 3x points on Amtrak purchases
    • High annual fees
    • Not convenient for everyone

    For new cardholders, you are guaranteed two yearly coupons as welcome bonuses. These include an annual companion worth up to $300 and a coupon to upgrade your ticket that is worth up to $150.

    The ongoing rewards include 3x points per dollar spent on Amtrak travel. When you use the redeemed points from your reward to book an Amtrak ticket, you get 5% of your redeemed points back.

    It also has a limited online offer where you get 50,000 bonus points after qualifying purchases worth up to $1,250 in Amtrak® travel. There’s no limit as to how many points you can earn and they don’t expire as long as your account is open.

    Amtrak travelers will also enjoy earning a 20% rebate on food and beverage purchases on board, up to 4,000 Tier-Qualifying Points towards elite status, and a complimentary single-visit station lounge pass upon account opening. All these perks come at $79 annual fees. 

    Bank of America® Travel Rewards Credit Card for Students

    If you are looking for a student credit card that offers interest-free promotional financing on new purchases, this is the best.

    • Students can travel outside the US and pay no foreign transaction fees
    • Doesn’t charge annual fees
    • Offer competitive welcome bonus
    • Not packed with rewards as some of our top picks. 
    • Students may be lured by the rewards and end up overspending.

    This card is designed with a college student who loves to travel in mind. To begin with, the Bank of America helps you get your next vacation quicker once your account is opened by giving you 25,000 points for at least $1,000 in purchases within the first 90 days. Those points can be redeemed for $250 towards your travel purchases.

    Their best ongoing reward is an unlimited 1.5 points for every dollar spent. You can redeem the points statement credit to offset flights, hotels, vacation packages, rental cars, or baggage charges. 

    All these perks come at a $0 annual and foreign fees. 

    Источник: https://www.compelo.com/best-bank-of-america-credit-cards/

    You can get more out of your everyday purchases with the right cash-back credit card. Some cash-back credit cards offer flat-rate perks, like 1% to 2% cash back on all purchases, while others reward you at higher rates, between 2% and 6%, when you spend money on groceries, at gas stations or even with certain retailers.

    When you earn cash back, your rewards usually show up as a statement credit that can be used to pay your bill or be deposited into your bank account. Every time you use your credit card on eligible purchases, you'll earn real dollars and cents back. It's that simple. Check out our picks of the best cash-back credit cards below. We update this list continuously to make sure you stay informed of the best opportunities available. 

    Intro Bonus$200 online cash rewards bonus after you make at least $1,000 in purchases in the first 90 days of account opening

    APR13.99% - 23.99% Variable APR on purchases and balance transfers

    Recommended Credit Excellent/Good

    Reward Rates
    • Earn 3% cash back in the category of your choice (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases)
    • Earn automatic 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases)
    • Earn unlimited 1% on all other purchases.

    Annual Fee$0

    Intro Purchase APR0% Intro APR for 15 billing cycles for purchases

    Intro Balance Transfer APR0% Intro APR for 15 billing cycles for any BTs made in the first 60 days. A 3% fee (min. $10) applies.

    Balance Transfer Fee Either $10 or 3% of the amount of each transaction, whichever is greater.

    Balance Transfer APR13.99% - 23.99% Variable APR on purchases and balance transfers

    Late Payment Fee Up to $40

    Foreign Transaction Fees 3%

    Penalty APR up to 29.99% APR

    • Earn 3% cash back in the category of your choice (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases)
    • Earn automatic 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases)
    • Earn unlimited 1% on all other purchases.

    Our Take

    Most cards that offer category selection for maximized cash rewards bank of america cash rewards credit card credit score these selections to a single quarter. But the Bank of America Customized Cash Rewards credit card* allows you to select "online shopping" as an indefinite rewards category where you can earn 3% cash back rewards. Note that you must manually choose this category via online banking or the mobile banking app, as the default category is "gas." 

    You can also earn 2% cash back at grocery stores and wholesale clubs (earn 3% and 2% cash back on up to $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then 1%), and 1% cash back on all other purchases. The welcome bonus doesn't hurt, either.

    Intro Bonus$200 Bonus after you spend $500 on purchases in your first 3 months from account opening.

    APR14.99% - 24.74% Variable

    Recommended Credit Excellent/Good

    Reward Rates
    • 5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year.
    • 5% on travel purchased through Chase Ultimate Rewards®.
    • 3% cash back on dining at restaurants, including takeout and eligible delivery services and on drugstore purchases.
    • Unlimited 1.5% cash back on all other purchases.

    Annual Fee$0

    Intro Purchase APR0% Intro APR on Purchases for 15 months

    Balance Transfer Fee Either $5 or 5% of the amount of each transfer, whichever is greater.

    Balance Transfer APR14.99% - 24.74% Variable

    Foreign Transaction Fees how to find my routing number us bank app of each transaction in U.S. dollars

    Penalty APR Up to 29.99%

    • 5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year.
    • 5% on travel purchased through Chase Ultimate Rewards®.
    • 3% cash back on dining at restaurants, including takeout and eligible delivery services and on drugstore purchases.
    • Unlimited 1.5% cash back on all other purchases.

    Our Take

    While there are a few contenders for the best grocery credit card, the Chase Freedom Unlimited offers a grocery deal that's hard to beat. Not only does it offer one of the highest cash-back rates for grocery store purchases at 5% (not including Target or Walmart purchases), but it has one of the highest spending caps for this category as well, at $12,000 on these purchases for the first year. So you can earn up to $600 cash back in the first year, just on groceries -- that's without mentioning the other cash back rewards categories this card offers.

    Intro BonusEarn a $300 statement credit after you spend $3,000 in purchases on your new Card within the first 6 months.

    APR13.99%-23.99% Variable

    Recommended Credit Excellent,Good

    Reward Rates
    • 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%)
    • 6% Cash Back on select U.S. streaming subscriptions
    • 3% Cash Back on transit including taxis/rideshare, parking, tolls, trains, buses and more
    • 3% Cash Back at U.S. gas stations
    • 1% Cash Back on other purchases

    Annual Fee$0 introductory annual fee for the first year, then $95.

    Intro Purchase APR0% on purchases for 12 months

    Balance Transfer Fee N/A

    Late Payment Fee Up to $40

    Foreign Transaction Fees 2.7% of each transaction after conversion to US dollars.

    Penalty APR 29.99% Variable

    • 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%)
    • 6% Cash Back on select U.S. streaming subscriptions
    • 3% Cash Back on transit including taxis/rideshare, parking, tolls, trains, buses and more
    • 3% Cash Back at U.S. gas stations
    • 1% Cash Back on other purchases

    Our Take

    Terms apply to American Express benefits and offers. Enrollment may be required for select American Express benefits and offers. Visit americanexpress.com to learn more.

    While there are a lot of other quality gas cards available, the Blue Cash Preferred Card from American Express boasts simplicity with straightforward cash-back rewards and no annual fee for the first year ($95 annually after that). With 3% cash back at US gas stations, it gets one of the highest returns on the market for gas purchases. 

    Even for city dwellers and commuters, this card offers great transportation benefits with 3% cash back on transit (trains, buses, parking, rideshare services, taxis, tolls and more). There are plenty more cash-back categories to enjoy with 1st gen cummins craigslist card, as well. Cash back is received in the form of Rewards Dollars that can be redeemed for a statement credit.

    Intro Bonus$300 after you spend $3000 on purchases within 3 months from account opening

    APR15.99% - 23.99% (Variable)

    Recommended Credit Excellent, Good

    Reward Rates
    • Earn unlimited 4% cash back on dining, entertainment and popular streaming services
    • Earn 3% at grocery stores
    • Earn 1% on all other purchases

    Annual Fee$95

    Intro Purchase APRN/A

    Intro Balance Transfer APRN/A

    Balance Transfer Fee None for balances transferred at the Transfer APR.

    Balance Transfer APR15.99% - 23.99% (Variable)

    Late Payment Fee Up to $40

    Foreign Transaction Fees None

    Penalty APR None

    • Earn unlimited 4% cash back on dining, entertainment and popular streaming services
    • Earn 3% at grocery stores
    • Earn 1% on all other purchases

    Our Take

    With the Capital One Savor Cash Rewards Credit Card*, you can earn an unlimited 4% cash back on dining and takeout. The $300 welcome bonus (when you spend at least $3,000 within the first 3 months of account opening) can essentially cover your annual fee ($95) for the first three years.

    You can even earn more cash-back rewards when you make purchases on entertainment (4%), popular streaming services (4%) and grocery stores (3%). For everything else, a 1% cash-back rate covers you. If you want to avoid the annual fee, or don't have a very large dining and entertainment budget, you may also want to consider this card's sibling, the Capital One SavorOne Cash Rewards Credit Card*, or some of our other best picks for restaurant credit cards.

    Intro BonusNew! Earn a $200 cash rewards bonus after spending $1,000 in purchases in the first 3 months

    APR14.99%-24.99% (Variable)

    Recommended Credit Excellent, Good

    Reward Rates
    • Earn unlimited 2% cash rewards on purchases

    Annual Fee$0

    Intro Purchase APR0% intro APR for 15 months from account opening

    Intro Balance Transfer APR0% intro APR for 15 months from account opening on qualifying balance transfers

    Balance Transfer Fee up to 5%; min: $5

    Balance Transfer APR14.99%-24.99% (Variable)

    Foreign Transaction Fees 3%

    Penalty APR None

    • Earn unlimited 2% cash rewards on purchases

    Our Take

    It doesn't get simpler than the Wells Fargo Active Cash Card*. This card boasts a 2% flat cash rewards rate on purchases -- the highest flat cash-back rate on the market. You don't have to worry which card you're going to use for which purchase. And while there are other cash-back credit cards that'll net you 2%, the sign-on bonus, $0 annual fee and introductory APR make this card stand out among the competition. This is also a great option for an emergency credit card.

    FAQs

    How do cash-back credit cards work?

    Cash-back credit cards offer cardholders rewards on their spending in the form of statement credits or cash. A statement credit is a reduction in the amount due to the credit bank of america cash rewards credit card credit score company on your monthly bill. Note that rewards are not always available the month you earn them -- they are usually applied to your balance by credit card issuers after one or two billing cycles.

    The redemption process for cash-back credit cards is either automatic or very simple. Some cards automatically apply cash rewards to your statement balance each month. Others require you to log in and redeem available rewards points for statement credits. Most points don't expire, but you will lose them if you close the account before redeeming them. 

    What types of cash-back credit cards are there?

    Cash-back credit cards generally fall into four primary categories: flat-rate, tiered, rotating or choose your own. 

    Flat-rate cards offer the same rate for every purchase. Tiered cards offer a different rewards rate for different categories of spending. Rotating category cards offer different rewards each quarter, determined by the card issuer. Choose-your-own category cards allow you to choose your rewards category.

    How do you choose a cash-back credit card?

    To choose the best cash-back credit card for you, the most important thing is to have a clear idea of how you're already spending money each month. Once you identify the categories where you have the highest, most consistent spending, use the charts in our list to determine which card will net you the highest return. Consider other features of the cards, too, such as APR, sign-on bonuses and foreign transaction fees -- make sure you get something that fits with your lifestyle and spending habits.

    Your credit card choice may also be affected by your credit score. Most of the cards we recommend require a good or excellent credit score, which is typically around 670 or higher. If you don't meet the credit criteria required, there are credit cards available that are specifically for those trying to rebuild credit, like secured credit cards. Alternatively, you can look into the best credit cards for no credit and the best credit cards for bad credit.

    How we picked the best cash-back credit cards

    We prioritized the cash-back credit cards that reward broad spending categories where Americans tend to spend significant amounts of money, instead of narrow categories like streaming services or "home improvement." Then we compared reward offerings with potential returns based on typical spending budgets derived from Bureau of Labor Statistics data. 

    In the end, we chose five high-value options from the crowded market. Some are no-annual-fee, flat-rate credit cards that earn the same amount on all purchases. Some require you make a certain qualifying purchase to start earning cash-back rewards. Some credit cards offer a sign-up bonus reward as well as cash back. Some are limited to specific spending categories (such as whether it's a grocery purchase, gas purchase, dining, transit or travel) but have a higher rewards rate, while others charge an annual fee. We then outlined important information for each card, including whether it has a transfer fee, bonus redemption thresholds or introductory APR. We also specified general credit requirements for eligibility (if you find you aren't eligible for a card that offers cash-back rewards, try a student credit card first). 

    For rates and fees of the Blue Cash Preferred Card from American Express, click here.

    *All information about the Bank of America Customized Cash Rewards credit card, Wells Fargo Active Cash Card, Capital One Savor Cash Rewards Credit Card and the Capital One SavorOne Cash Rewards Credit Card has been collected independently by CNET and has not been reviewed by the issuer.

    A direct deposit of news and advice to help you make the smartest decisions with your money.

    The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.

    The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.

    Источник: https://www.cnet.com/personal-finance/credit-cards/best-cash-back-credit-cards/
    AllBusiness.com". AllBusiness.com. 21 December 2016. Retrieved 10 April 2017.
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  43. ^"Return Protection

    Bank of america cash rewards credit card credit score -

    Final Verdict

    Bank of America offers a variety of credit cards with different rewards and benefits programs to meet the specific wants and needs of consumers. Whether you are looking for a personal credit that offers travel rewards, a student credit card to help you begin building credit, or a business credit card, Bank of America has a credit card that can fit your needs. No matter your budget, Bank of America has a card for you with many cards that don’t require an annual fee.

    Bank of America Premium Rewards credit card is our top pick for the best overall credit card and the best travel credit card due to its flexible redemption options, generous bonus offer, and no foreign transaction fees. While it does come with a $95 annual fee, the rewards and benefits you get from this card can more than make up for the cost.

    Compare the Best Bank of America Credit Cards

    Credit CardIntro OfferRewardsAnnual FeeRegular APRMin. Credit Score
    Bank of America® Premium Rewards®
    Best Overall, Best Travel
    50,000 bonus points after you make at least $3,000 in purchases in first 90 days of account openingUnlimited points for every $1 spent on travel/dining Earn 2 points for every $1 spent on grocery store purchases through to 12/31/21 Earn 1.5 points for every $1 spent on all other purchases$9515.99% to 22.99%670
    Bank of America® Customized Cash Rewards for Students
    Best Student
    $200 online cash rewards bonus after making at least $1,000 in purchases in first 90 days of your account openingEarn 3% cash back in the category of your choice 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases) Unlimited 1% on all other purchases$013.99% to 23.99%670
    Bank of America Travel Rewards
    Best No Annual Fee Travel
    25,000 bonus points if you make at least $1,000 in purchases in the first 90 days of your account opening–which can be redeemed for a $250 statement credit toward travel purchasesEarn unlimited 1.5 points for every $1 you spend on all purchases everywhere, every time, and no expiration on points$013.99% to 23.99%670
    Bank of America® Customized Cash Rewards Credit Card
    Best Cash Back
    Online $200 cash rewards bonus after making at least $1,000 in purchases in the first 90 days after your account openingEarn 3% cash back in the category of your choice 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/ grocery store/ wholesale club quarterly purchases) Unlimited 1% on all other purchases$013.99 to 23.99%670
    Business Advantage Travel Rewards
    Best Business
    Earn 30,000 bonus points when you make at least $3,000 in net purchases with 90 days of account opening Can be redeemed for $300 statement credit toward travel or diningUnlimited 1.5 points for every $1 you spend on all purchases Earn 3 points per $1 spent on travel booked through Bank of America Travel Center$012.24% to 22.24%670
    Bank of America® Customized Cash Rewards Secured
    Best for Bad Credit
    None3% cash back in the category of your choice 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases) Unlimited 1% on all other purchases$023.99%350

    Editorial Picks of the Best Bank of American Credit Cards

    Bank of America Premium Rewards Credit Card

    Best Overall, Best for Travel

    Earn unlimited 1.5 points for every $1 you spend on all purchases everywhere. Use the 12-month 0% APR promotion on purchases and enjoy no annual fee.

    Read the full Bank of America Premium Rewards Credit Card Review.

    Bank of America Customized Cash Rewards for Students 

    Best Student

    Students can enjoy a $200 cash rewards bonus offer after making at least $1,000 in purchases in the first 90 days of opening an account.

    Read the full Bank of America Customized Cash Rewards for Students Review.

    Bank of America Travel Rewards Credit Card

    Best No Annual Fee Travel

    Take advantage of the generous bonus offer of 25,000 points if you make at least $1,000 in purchases in the first 90 days of your account opening. This can be redeemed for a $250 statement credit toward travel purchases.

    Read the full Bank of America Travel Rewards Credit Card Review.

    Bank of America Customized Cash Rewards Credit Card

    Best Cash Back

    Offers 3% cash back in the category of your choice (gas, online shopping, dining, travel, drugstores, or home improvement/furnishings) as well as 2% cash back at grocery stores and wholesale clubs, and 1% cash back on all other purchases.

    Read the full Bank of America Customized Cash Rewards Credit Card Review.

    Business Advantage Travel Rewards Credit Card

    Best Business

    Business owners can earn unlimited 1.5 points for every $1 spent on all purchases as well as 3 points per $1 spent on travel booked through the Bank of America Travel center powered by Expedia.

    Read the full Business Advantage Travel Rewards Credit Card Review.

    Bank of America Customized Cash Rewards Secured 

    Best for Bad Credit

    Start rebuilding or repairing your credit while you earn cash back. Earn competitive rewards with a secured card and work toward being upgraded to an unsecured card with responsible use.

    Types of Bank of America Cards

    Bank of America issues Mastercard and Visa cards but does not issue cards on the American Express or Discover networks. Its cards include points and cash back rewards options for consumers and small businesses, along with cards for college students and those who want to transfer balances or build credit. The different types of credit cards offered by Bank of America include:

    • Cash rewards credit cards
    • Cards for building credit
    • Credit cards for students
    • Lower interest rate credit cards
    • Points rewards credit cards
    • Travel rewards credit cards
    • Airline rewards credit cards

    How Bank of America's Rewards Program Works

    Bank of America's rewards points are earned at various levels based on the card product. They can be redeemed for cash back, statement credits, gift cards, or for travel through Bank of America's travel center. As with many issuers' rewards platforms, earned points generally have the greatest value when they're redeemed for travel through the travel portal.

    Is a Bank of America Credit Card Worth Getting?

    Whether you are looking for a personal credit card or a business credit card, Bank of America offers a variety of credit cards to meet an array of wants and needs.

    Credit Card Benefits

    Those interested in earning cash back rewards, travel rewards, or points rewards can benefit from a Bank of America credit card. Students looking to build their credit while also earning cash back or travel rewards can benefit from a Bank of America Student credit card.

    Credit Card Interest Rate

    If you want a credit card that will help you to save on interest, Bank of America offers credit cards with 0% APR intro offers for purchases and balance transfers for a certain number of months.

    Credit Card Fees

    Bank of America offers many credit cards with no annual fee. Some credit cards, including the Bank of America Premium Rewards credit card, do have a $95 annual fee but are worth it for those who take advantage of the generous bonus offer and solid reward points program.

    What Credit Score Is Needed for a Bank of America Credit Card?

    Bank of America generally requires good or excellent credit for the majority of its consumer and business cards. A good to excellent FICO credit score ranges from 670 to 850. Bank of America does consider those with no credit history for its student card options and those with lower scores for its non-rewards and secured card options.

    To apply for a Bank of America credit card, you can complete an online application and get a response in as little as 60 seconds. You will be asked to fill in some demographic information (name, address), information about your citizenship (including Social Security number), as well as employment information including your total annual income and primary source of income.

    Once you have submitted all of your information, you will receive one of four decision messages. One is that your application has been approved. In this case, you can expect to receive your credit card within 10 days. You might also receive a message saying your application has been approved, but for a different card. It’s also possible to receive a message saying more time is needed to review your information. Finally, you may receive a notice saying you have been declined.

    Before applying for a Bank of America credit card, it’s a good idea to check your credit score so you have a good understanding of your current creditworthiness. Bank of America uses all three of the major credit bureaus: Equifax, TransUnion, and Experian.

    How Good Is Bank of America Customer Service?

    Bank of America received a score of 812 out of 1,000 points in the 2020 J.D. Power U.S. Credit Card Satisfaction Study and ranked third out of 11 major national credit card issuers. The average score among major issuers was 810. Its mobile app was ranked above average for consumer satisfaction, scoring fifth in a 2020 J.D. Power survey. As another of its services, Bank of America offers customers access to their FICO credit score.

    What Is the History of Bank of America?

    Bank of America Corporation was formed through the merger of San Francisco, CA-based BankAmerica and Charlotte, NC-based NationsBank in 1998, creating one of the country's largest banking organizations. Bank of America can trace its roots to the Bank of Italy, started by an Italian immigrant to serve his community in 1904. Bank of America launched the BankAmericard in 1958, which was the second universal credit card ever offered, with Diners Club being the first. The card network behind the BankAmericard eventually evolved into Visa after being spun off from the bank in the 1970s. Bank of America dramatically grew its credit card portfolio when it acquired MBNA in 2004.

    Methodology

    To choose the best Bank of America credit cards, we filtered our list of nearly 300 credit cards. We looked at credit card features including rewards, bonus offers, interest rates, fees, and benefits. We also considered the security of the card and the level of customer service provided. A weighted algorithm was used to determine which cards would be included in our final list.

    MEET OUR CREDIT CARDS EXPERT

    Ben Woolsey is Investopedia's Associate Editorial Director of Financial Products and Services, including credit cards. He has more than 30 years of experience in the financial services industry, including marketing for banking and financial institutions such as Associates First Capital and Bank One. Prior to Investopedia, he managed credit card content for CreditCards.com and Bankrate.com.

    Источник: https://www.investopedia.com/best-bank-of-america-credit-cards-5072529

    Upgrade Triple Cash Rewards

    1 Cash back rewards are earned when you pay eligible purchases back. Your cash back will typically be applied to your balance after your next scheduled monthly payment. Purchases in Home, Auto, and Health categories earn 3% cash back when you pay them back; all other purchases earn 1% with no maximum. Merchants are assigned a merchant category code (MCC) based on the kinds of products and services they primarily sell. We group similar MCCs into categories for purposes of making rewards available to you, but we do not assign MCCs. Merchants set their own MCC, therefore purchases may not fall into the category where you might expect them to appear. For more information on merchant categories, please click here. Cash back rewards applied to your balance will not satisfy or reduce your regular monthly payments. Payments on non-purchase transactions, such as sending funds electronically to your bank account, are not eligible to earn rewards. Some limitations apply. Please refer to your Cardholder Agreement for more information. Rewards associated with the Upgrade Card, when applicable, are provided by Upgrade, Inc.

    2 Credit Lines opened through Upgrade feature APRs of 8.99% - 29.99% and line amounts ranging $500 - $50,000. The lowest rates require Autopay and the majority of the line amounts will be $25,000 or under. For example, a $5,000 transaction with a 36 month term and a 19.99% APR has a required monthly payment of $187.90. The APR on your draw may be higher or lower. Your rate, line amount, and default term depend on maintaining a qualifying credit score, your credit usage history, requested amount, and other factors.

    3 The Upgrade Card cannot be used at an ATM.

    4 Earn unlimited 1.5% back in bitcoin rewards when you make payments on your purchases. Payments on non-purchase transactions, such as sending funds electronically to your bank account, are not eligible to earn rewards. Your bitcoin will be purchased within 1-2 statement periods from the date your payment is received. The value of the bitcoin purchase will be based on the reference rate at the time of the bitcoin purchase. Your bitcoin cannot be transferred to a separate wallet. You will be subject to an initial 90-day holding period after the first bitcoin purchase on your account, during which time your bitcoin cannot be sold. Sales of bitcoin are subject to a 1.5% transaction fee which will be deducted from your sale proceeds. Sale proceeds are redeemable only in the form of statement credit. Additional limitations apply. Please refer to the Program Terms and Conditions and your Cardholder Agreement for more information.
    Bitcoin services and accounts provided by NYDIG. See NYDIG Terms. NYDIG does not support bitcoin services and accounts in all states. Rewards associated with the Upgrade Card, when applicable, are provided by Upgrade, however Upgrade does not engage in any bitcoin services.

    * There are no account fees, overdraft fees, annual fees, or transfer fees associated with Rewards Checking accounts. Rewards Checking charges no ATM fees, but third-party institutions may charge you a fee if you use their ATM/network or if you use your Upgrade VISA® Debit Card internationally. Upgrade will rebate any ATM fee charged by another institution for debit card withdrawals in the United States, up to five times per calendar month. To be eligible to receive third-party ATM fee rebates in any calendar month for eligible ATM withdrawals made during that month, customers must have (i) an open Rewards Checking account and (ii) either maintained an average daily balance in their account of at least $2,500 in the prior calendar month or made direct deposits into their account totaling at least $1,000 during the prior calendar month. As a courtesy to new customers, Upgrade will provide third-party ATM fee rebates for up to the first 2 calendar months after account opening regardless of account activity. Some limitations apply. Please refer to the applicable Cross River Bank Deposit Account Agreement and Upgrade VISA® Debit Card Agreement and Disclosures for more information.

    ** Rewards Checking customers earn 2% cash back on common everyday expenses at convenience stores, drugstores, restaurants and bars - including deliveries - and gas stations, as well as recurring payments on utilities and monthly subscriptions including phone, cable, TV and other streaming services, and 1% cash back on all other debit card charges. 2% cash back is limited to $500 in rewards per calendar year; after $500, customers earn 1% cash back on all eligible debit card charges for the remainder of the year. Some limitations apply. Please refer to the applicable Upgrade VISA® Debit Card Agreement and Disclosures for more information.

    *** The interest rate on a new loan or credit line through Upgrade may be up to 20% lower than would otherwise be applicable without this discount, as long as you have an active Rewards Checking Account. Additional terms may apply. Please refer to the applicable Truth-in-Lending Disclosure and Loan Agreement.

    † Accept your loan offer and your funds will be sent to your bank or designated account within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes the transaction. From the time of approval, funds sent directly to you should be available within one (1) business day. Funds sent directly to pay off your creditors may take up to 2 weeks to clear, depending on the creditor.

    Personal loans made through Upgrade feature APRs of 5.94%-35.97%. All personal loans have a 2.9% to 8% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. Loans feature repayment terms of 24 to 84 months. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early.

    Information about our state licenses can be found here.

    Источник: https://www.upgrade.com/
    Visa USA". Archived from the original on 26 August 2013. Retrieved 28 August 2013.
  44. ^"What is Return Guarantee? Discover". www.discover.com. Retrieved 17 January 2019.
  45. ^"What is Price Protection?

    Best Bank of America Credit Cards of November 2021– Top 10 Reviews

    Bank of America® Premium Rewards® Credit Card

    Frequent travelers looking for flexibility in credit card rewards ought to take a look at the Bank of America® Premium Rewards® credit card

    • Offers a lot of luxury perks
    • Offers premium travel protections
    • No foreign transaction fees

    Best rewards limited to certain customers

    As the name implies, this is a premium type of BoA card, and therefore, expect premium fees with good packaging. It charges $95 annual fees. However, this annual fee packs a lot of goodies including:

    2 points per dollar on travel and dining purchases and 1.5 points per dollar on all other spendings. You can still boost the rewards by 25% – 75% if you are a bank of America preferred rewards member (terms apply). 

    That said, you have a lot of options when it comes to redeeming your points. These include requesting a deposit into the more eligible bank of America or Merrill account. Or you can redeem your rewards for gift cards and other purchases at the Bank of America Travel Center or credit card statement credits (terms apply).

    Bank of America® Customized Cash Rewards Credit

    Looking for a credit card that lucrative cash rewards offer on where you spend most, the Bank of America® Customized Cash Rewards credit card is a good option to consider.

    • Lower purchase limit to earn a welcome bonus.
    • Good rewards earning potential
    • Option to change 3% bonus category monthly
    • High balance transfer fee
    • 3% foreign transaction fee

    This credit card stand stands out among other cashback cards in many ways. To begin with, you get to earn a 200 online cash reward bonus for at least $1,000 in purchases in the first 90 days of account opening.

     In addition, the $0 annual fee offers you the freedom to choose your own 3% bonus category from a list of options and change that selection once a month. The six options that you can choose from include:

    • Gas.
    • Online shopping.
    • Dining.
    • Travel.
    • Drugstores.
    • Home improvement and furnishings.

    Other bonuses include 2% back on grocery store purchases and wholesale clubs for the first $2,500 of combined bonus category/ grocery store/ wholesale club spending per quarter. After hitting that limit, you’ll earn 1% back on these purchases.  

    Bank of America® Travel Rewards Credit Card

    Looking for a BoA credit card that will reward you unlimited points on travels, this card will achieve that at no foreign transaction fees and a $0 annual fee.

    • Earn unlimited points on all purchases
    • $0 annual fee.
    • No foreign transaction fees
    • No bonus categories to boost reward earnings
    • APR can be high, depending on creditworthiness

    Eligible new cardholders can earn a welcome bonus of 25,000 online bonus points for at least $1,000 in purchases in the first 90 days of account opening.

    Every cardholder earns an unlimited 1.5 points for every dollar that they spend, regardless of spending category. This has the potential to increase by 25% -75% if you are a preferred reward card owner. 

    Rewards never expire as long as the account is open, but some of the redemption options have a time limit attached. Points can be redeemed for credit against any travel dining purchases. For instance, you can redeem statement credits when paying for flights, hotels, vacation packages, rental cars, or baggage fees.

    Lastly, it is among the few travel cards that will offer you the interest rate of 0% intro APR for 15 billing cycles on purchases, and then the ongoing APR of 13.99% – 23.99% Variable APR. 

    Bank of America Business Advantage Travel Rewards

    For small-business owners looking for a simple and versatile reward card, this could be what you are looking for.

    • Doesn’t charge an annual fee
    • Doesn’t have a reward cap 
    • No foreign transaction fees
    • Requires excellent credit
    • Target to redeem the welcome bonus is a lot.

    If you make at least $3,000 in a net purchase within 90 days of your account opening, you stand a chance of earning a welcome 30,000 bonus point. The bonus point can be redeemed for a $300 statement credit towards travel or dining purchases. 

    On-going rewards include earning unlimited 1.5 points every time for every $1 spent on all purchases anywhere no matter how much you spent. The points don’t expire. 

    In addition, you can earn points for every dollar spent on travel purchases booked through the BoA travel center. Despite all the perks, it has a $0 annual fee. The rewards could be best in class if you keep a certain amount of money in eligible Bank of America® and Merrill business accounts.

    Alaska Airlines Visa Signature® Credit Card

    West Coast frequent fliers can earn the best annual companion pass.

    • Redeem miles for flights with over a dozen airline global partners
    • Free checked bag on Alaska Airline
    • Annual Companion fare can save you hundreds of dollars
    • The companion ticket is limited to Alaska Airlines flights
    • No lounge benefits or priority boarding

    Alaska Airlines Visa Signature® credit card will introduce you to a great welcome bonus. A new account can receive 50,000 bonus miles after you make $2,000 or more in purchases within the first 90 days of your account opening.

    However, it’s most famous for its annual companion pass. This benefit can be used to purchase a ticket for your companion once per year for as little as $121 with no blackout dates. Cardholders receive the companion fare every year when they renew the card.

    You will also enjoy 20% back on all Alaska Airlines inflight purchases and 50% off day passes at the Alaska Lounge when you pay with your new card.

    In addition, you will earn unlimited 3 miles for every $1 spent on eligible Alaska Airlines purchases and an unlimited 1 mile for every $1 spent on all other purchases. Your miles don’t expire on active accounts.

    Though this credit card charges $75 annual fees, the companion pass, free checked bag, and other travel benefits can more than makeup for it.

    BankAmericard® Credit Card for Students

    Those with limited or no credit history may qualify, so this card offers an excellent opportunity to build credit.

    • Fee-free balance transfer intro offer
    • Longer-than-average 0% Intro APR offer
    • Applicants with limited or no credit history may qualify
    • No rewards program
    • It charges a 3% foreign transaction fee

    This is a great option for someone who is just starting, such as students. The card is designed to assist you to develop a good credit habit and stay in control of your finances. 

    Despite having a $0 annual fee, the credit card boasts a regular 12.99% – 22.99% Variable APR on purchases and balance transfers made within 60 days of opening your account and all purchases made during the introductory period.

    The credit score is fair (650 – 699), but it charges 3% on foreign transactions. There are several other benefits including free access to FICO score, overdraft protection, free and easy ShopSafe service among others. 

    Bank of America® Customized Cash Rewards Secured

    Looking for the best credit card for bad credit on our list, Bank of America® Customized Cash Rewards Secured is here for you.

    • Competitive rewards rates for a secured card
    • It may be upgraded to an unsecured card with responsible use
    • No annual fee
    • Minimum security deposit required but doesn’t earn interest
    • Balance transfer fee

    This bank is designed with your financial security in mind. As you open this account, you will be required to make a refundable security deposit of at least $300. The maximum-security deposit amount can go up to $4,900 and the amount of security deposit you make will determine your maximum credit limit. 

    Once that is done, you are in for huge rewards. You will earn 3% cashback in the eligible category of your choice, 2% cash back at grocery stores and wholesale clubs, and 1% cashback on all other purchases. You’ll also earn 3% and 2% cashback on the first $2,500 in combined categories each quarter, then 1%. 

    All these come at a $0 annual fee. The only things we never liked is their poor credit score (0-649), security deposit, and balance transfer fees.

    Air France KLM World Elite Mastercard®

    Looking for an airline credit card with the best international travel rewards per dollar spent, Air France KLM World Elite Mastercard® is a great choice.

    • It offers bumper anniversary rewards
    • Earning 1.5 miles for all purchases sounds great
    • You can redeem points for travel on Air France, KLM, and other Skyteam partners.
    • High annual fee charges
    • High charges on the flying blue program.

    Earn an unlimited 1.5 miles per dollar in all purchases everywhere.

    But that is not all, you also earn  3x miles per dollar spent directly on Air France, KLM Royal Dutch Airlines, and SkyTeam member airlines (eg: Delta Airlines, Korean Air, Aeromexico). 

    Their welcome bonus is also great as you stand to earn 50,000 Bonus Miles after you make $2,000 or more in purchases within the first 90 days of your account opening. 

    Each cardholder will also celebrate their card anniversaries with a lot of rewards upon renewal. These include achieving elite status by getting elite points upon approval. These enable you to gain status and move up a level as a Flying Blue member.

    You can also earn an additional 40 XP each year by spending at least $15,000 within your anniversary year. Additionally, you’ll earn 5,000-anniversary miles whenever you spend at least $50 within your anniversary year.

    Even though they charge $89 annual fees, anniversary miles and XP points will make you pay that fee without feeling the pinch. 

    Amtrak Guest Rewards® World Mastercard®

    This is our best option on the list for those who love to travel by train.

    • Offer annual companion coupons to new cardholders
    • You get 5% of your redeemed points back when you use them to book an Amtrak ticket.
    • You get 3x points on Amtrak purchases
    • High annual fees
    • Not convenient for everyone

    For new cardholders, you are guaranteed two yearly coupons as welcome bonuses. These include an annual companion worth up to $300 and a coupon to upgrade your ticket that is worth up to $150.

    The ongoing rewards include 3x points per dollar spent on Amtrak travel. When you use the redeemed points from your reward to book an Amtrak ticket, you get 5% of your redeemed points back.

    It also has a limited online offer where you get 50,000 bonus points after qualifying purchases worth up to $1,250 in Amtrak® travel. There’s no limit as to how many points you can earn and they don’t expire as long as your account is open.

    Amtrak travelers will also enjoy earning a 20% rebate on food and beverage purchases on board, up to 4,000 Tier-Qualifying Points towards elite status, and a complimentary single-visit station lounge pass upon account opening. All these perks come at $79 annual fees. 

    Bank of America® Travel Rewards Credit Card for Students

    If you are looking for a student credit card that offers interest-free promotional financing on new purchases, this is the best.

    • Students can travel outside the US and pay no foreign transaction fees
    • Doesn’t charge annual fees
    • Offer competitive welcome bonus
    • Not packed with rewards as some of our top picks. 
    • Students may be lured by the rewards and end up overspending.

    This card is designed with a college student who loves to travel in mind. To begin with, the Bank of America helps you get your next vacation quicker once your account is opened by giving you 25,000 points for at least $1,000 in purchases within the first 90 days. Those points can be redeemed for $250 towards your travel purchases.

    Their best ongoing reward is an unlimited 1.5 points for every dollar spent. You can redeem the points statement credit to offset flights, hotels, vacation packages, rental cars, or baggage charges. 

    All these perks come at a $0 annual and foreign fees. 

    Источник: https://www.compelo.com/best-bank-of-america-credit-cards/
    Personal bank of america cash rewards credit card credit score

5 Replies to “Bank of america cash rewards credit card credit score”

  1. It's so obvious these people are receiving government benefits. Where I live, in California, if you are a family of four making less than $80,000, you are considered low-income and are eligible for daycare stipends and housing subsidies. In San Francisco, you are eligible for daycare stipends and housing subsidies if you are a family of 4 making less than $117,000.

  2. As far as I know, for a US citizen there is almost no way to avoid passive income taxes as the US taxes worldwide income. Do you have a video on this?

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