I know I’m a little bit late on this one but for those of you who use your Discover More Card you could be saving 5% on every gas purchase through the end of August 2011… just for having a Discover card.

If you don’t have a Discover More card you can click here to apply for one.

So assuming $4 per gallon of gas you buy you can save $0.20 for every gallon when you fill up… summer joy ride anyone?

5% Cash Back on Gas Details

The 5% cash back on gas promotion covers purchases up to $300, and these days we’ll take every advantage we can when we buy gas right?

If you don’t drive, or at least don’t buy a lot of gas, don’t worry you can also save 5% on hotels, theme parks and movies through the end of August, and you get 1% back on all other purchases as well.

For you online shoppers you can also get a cash back bonus between 5 and 20% when you use Discover’s online shopping portal that features some really great exclusive deals for cardholders from over 175 shops.

What’s even better (I know because I’ve done this) is you can trade in your rewards cash for online gift certificates at participating stores and you can double your reward amount.

In other words instead of taking $25 cash back you can get a $50 gift certificate at a store you were going to shop at anyway. The actual amount will vary depending on where you’re getting the gift certificate, but you can really save quite a bit. I used mine on a car rental when I went to a wedding down in Orlando and it saved me quite a bit.

Discover More Card details

At the time I write this Discover More is currently offering an introductory rate of 0% on purchases for 15 months, and 0% on balance transfers as well. Once that rate expires you then move to a variable rate between 11.99% and 19.99%.

(To see Discover More’s official terms and conditions you can review them here)

Rank	Card	Low Intro Rate	Balance Transfer	Cash Back Bonus	Travel Rewards	Apply
1		Yes	Yes	Yes	No	Apply Now
2		Yes	No	No	No	Apply Now
3		Yes	No	No	No	Apply Now

Best Credit Cards for Students

If you’re a student then you know that you will need a credit card for pretty much everything once you start college. With everything from gas, to books, to food, student credit cards are much more of a necessity than a luxury these days. So why are student credit cards so difficult to get?

Most of the time students have either no, or a very limited credit history and more than half don’t have a job yet, so these two factors alone make it very risky for credit card companies to issue you a card. Add to this that students are not typically the most responsible people with money, so many of them have bills go unpaid leaving the credit card company to hold the bag on whatever is owed.

So if you’re a responsible student just looking for a good credit card to help you establish credit, what can you do to find a good credit card for you?

First, make sure you have all of your bills paid. One thing credit card companies look for is whether or not you have a lot of outstanding debt (if you have a lot see the post on how to get out of debt before applying and you may get a better rate). Some of you may not have much in your name, while others may have a car, cell phone and other bills in your name. Just whatever you do make sure everything is paid off to the best of your ability.

Next, look for cards with a low fixed interest rate. Introductory rates are great, but what about a year or longer down the line when you need to use the card… does it balloon up to 25% or more? Fixed rates don’t appear as enticing as introductory rates, but trust me you will save more money in the long run.

Lastly, don’t fall for gimmicks. Credit card rewards like the Discover Card 5% cash back and travel are great… if you know how to use them properly. When I was in high school one of my friends mom used to get a big cash back check every month because she put things on the card and paid the immediately… because she had the money to do it. Most of you wont, especially if you don’t have a job in school, so bonus rewards may not be for you. If you run up a huge balance trying to get a nice points total you will end up paying more than whatever reward you were looking for.

© Best Credit Cards for Students

Most of us have heard that we need to establish an emergency fund that can withstand 3-6 months of typical family expenses. This can help you stay afloat when an unexpected emergency arises. The trick is to build up your emergency fund over time. Establish yourself as a saver and every month put a little away in an emergency fund account that will accrue interest. A credit card is not a fund you build up. It can be used in an emergency, but it is not and should never be considered, an emergency fund.

Why?

The reason you have an emergency fund is so it can be used instead of going into debt. A credit card actually puts you further into debt and so defeats the purpose of the emergency fund. When I was in college I got a student credit card “just for emergencies” and, well, we all know how that turned out. When you do use the credit card, you end up with additional debt due to the interest you pay on the card’s balance. Sometimes this interest payment can be quite high. You can actually exacerbate the original emergency due to taking on additional debt. Rather than pay interest on a credit card, earn interest in your emergency fund.

Another problem with credit card usage during an emergency is that you are required to make monthly payments. If the emergency is particularly nasty, this might make even the monthly payments a problem. Keep in mind that when you use your credit card you will need to begin making monthly payments right away. If you instead use an emergency fund to handle a financial emergency, you can wait until circumstances improve before beginning to replenish your fund. This can ease your stress levels during the emergency, knowing you don’t have to make payments.

One final worry about using your credit card as an emergency fund is that you set yourself up to create the habit of going into debt for unexpected events that crop up. This is not a good habit for your financial health. You don’t want to fall into the trap of using debt to solve your problems, as it will just lead to more and more debt.

I don’t mean to say that you should not have a credit card, or that you should never use it. In fact there are times when having a credit card can be a real life saver and if you use them right you can get cash back like the Discover More card. There are times when you may not be able to get to an ATM machine, or you just need some extra money for a small emergency. Credit cards offer flexibility and often have purchase insurance plans which can be very useful. The key point to remember is that having a credit card for an emergency is not the same as relying on your emergency fund. If you do use your credit card, be sure to pay off the entire balance as quickly as possible. You can even use money from your emergency fund to pay off the credit card balance so that you don’t pay additional interest charges. Just make a plan to rebuild your emergency fund as soon as you can.

We’ve all seen them in our junk mail: 0% interest rate credit cards as easy as 1-2-3. Keep in mind that the credit card companies are in business to make money and they can’t make any money if they don’t charge you any interest, so watch out for hidden fees and extra costs that you may not be aware of when you apply for a new 0% credit card.

The 0% offer is called a ‘teaser rate’ because it looks tempting, but when you apply you may find out there is a catch. The most popular catch is that the offered interest rate (0%) is for a limited time only, usually a couple of months, but perhaps up to a year. When you read the fine print you will discover that after the allotted time period your interest rate will take a massive jump. If you can’t find the standard rate in the provided literature, be sure to call the credit card company and ask about the standard rate.

Another trick the credit card companies will often use is to entice you with a 0% rate on balance transfers, they especially like to do this with student credit cards. In other words, if you carry a balance on another card you can transfer this balance to your new card and pay 0% interest. Sounds great, especially if your old cards have a high interest rate, but beware. Once again, pay special attention to the fine print as often there is a transfer fee that can be as high as 3% of the amount transferred. There may also be a time limit on the low rate, and keep in mind that any new purchases will carry the standard interest rate (not the advertised 0% on transfers). If you think this is a good idea, make sure you know all the details and pay off that balance within the time limit, without making new purchases, otherwise you will be stuck with another high interest card. And really, who needs another one of those?

There is another common fee that may apply if you are late making a payment. Whatever you do, be sure to make your payments on time, or failing that, be sure you are aware of the consequences of a missed or late payment. Each card is slightly different, but most will charge you a fee or automatically increase your interest rate. Some cards will even damage your credit score. Don’t discount this, as your credit score is used to determine your eligibility for future loans. If your credit score is low you may not be able to get a loan, or if you can get one it may cost more than it would if you had good credit.

There is one other hidden fee that we have yet to mention: Rising interest rates, which are totally out of your control. The federal government set interest rates and banks will often respond to rising rates by increasing loan and credit card rates. If you find yourself stressing out due to rising interest rates, give your credit card company a call and ask for a lower rate. You would be surprised how many people are afraid to pick up the telephone and ask, but very often the company will value your business and will easily give you a lower rate. It helps if you have a good credit score (check your credit score for free), but it never hurts to ask for a better price.

An Orchard Bank Classic MasterCard may be perfect for those who are looking to establish (or re-establish) their credit rating. Orchard Bank is now part of HSBC Bank, which is one of the largest banks around today and has a very good reputation. The bank will screen your application, checking credit history, and depending upon your score the bank will offer you one of a variety of credit cards.

If you have poor credit or no credit you will likely be approved for a secured credit card. Unlike other secured credit cards, which come with astronomical fees, Orchard Bank offers one that is very reasonable. If your credit is decent, you will be notified as to which credit card is thought to be best for you. Each comes with different fees and rates and all will be disclosed to you before the application is processed. Compared to other sub-prime credit cards, Orchard Bank offers one of the best.

A very attractive feature of the Orchard Bank Classic MasterCard is that it reports to the three main credit bureaus. As long as you pay your bills on time and don’t go over the limit, this feature will allow you re-establish your credit history fast.

Even if you are coming out of a bankruptcy, you may find the Orchard Bank Classic MasterCard to be ideal for you. The fees and restrictions are not nearly as high and restrictive as some other sub-prime cards that can be found on the market these days. You will rebuild your credit history fast and can look forward to a better credit score in the weeks and months ahead.

Special Offer: Get $50 Cash Back Bonus with the Discover® More Card!

A recent ‘Consumer Reports’ survey revealed that 85% of all US households are involved in at least one rewards program. That is a very large number; it must mean that reward cards are a good deal, right? Can so many people be wrong? The answer is both yes and no.

Like most things financial it depends upon who you are as a saver and a spender. The survey found that people with reward credit cards often spend more than those with regular cards. To make matters worse, many of them did not actually redeem the rewards and therefore got no benefit from enrolling in the program. In fact, many of the reward programs’ criteria were found to be confusing or restrictive and often these cards carried a higher interest rate. Many of these cards also require you to pay an annual fee, further reducing your benefits. Other cards have a limit or cap on the rewards you can accumulate.

The following tips will help you to avoid the dangers of rewards cards:

• Analyze your shopping habits. Get the type of card that fits your lifestyle and shopping patterns. There are many cards that offer travel packages but if you don’t like to travel, consider opting for a card that offers free gas, groceries or cash back instead.

• Estimate your spending. Estimating your annual purchases will allow you to predict your yearly rewards. Subtract any fees or penalties and find out if the reward card is worth the actual cost.

• Pay your bill every month. If you carry a balance you will end up paying more in interest charges than you will reap in rewards, since most of these cards carry higher interest rates.

• Grab the cash. If you can’t decide between a points card and a cash back card, take the cash every time. The survey indicated that many times the points go unused.

• Altruistic programs are often not worth it. Some cards offer to send your points to a charity, but read the fine print. You can usually do better with a basic cash back card like the Discover More card and send that money to the charity yourself.

• Book travel early and often. If you do opt for a travel reward card, use the points quickly as airlines tend to change the requirements frequently. You can even lose the points if you do not claim them in time.

• Don’t spend to get a reward. You may find that you have almost accumulated enough points to get that new iPod in the rewards program, if only you make one more big purchase. Be careful. You may find that the cost of the iPod would be cheaper to buy outright than what will be required to amass the necessary points.

Perhaps the most important item on that list is to stay debt free and pay off your balance every month. Credit cards can be useful, especially in an emergency, but under no circumstances should you carry a balance. It will cost you more in the long run. Find a card that suites your lifestyle and you will be able to reap the rewards.

What is your favorite rewards card? Let us know in the comments below!

Special Offer: Get $50 Cash Back Bonus with the Discover® More Card!

Credit cards are an epidemic these days and the sad reality of life is that most credit card companies just really don’t care whether you’re drowning in debt or being responsible with your money. In fact, the more irresponsible you are with your credit card debt the more money they make, so they offer you cash back like the Discover more card, or airline miles, or an assortment of other trinkets to tempt you in to signing up for a credit card and racking up the debt.

When I was in college about a decade ago, I was walking to the dining hall and I noticed a large crowd surrounding table outside the doorway. Of course being the curious type I needed to know what everyone was looking at. Turns out there was a credit card company (with cute girls passing out sign up forms) that was giving away free bags of M&M’s (the large bag… not that it matters) if you signed up for their credit cards that they were offering.

In college I was terrible with credit cards, but at least I knew what a scam of an offer this was so I shook my head and continued walking. The other day Jessica from MomVesting commented that “the bonuses and perks of credit cards are like offering cake and ice cream” and it reminded me of this incident and it got me wondering how much each of those bags of M&M’s cost the average student.

According to CreditCards.com’s debt statistics, the average college student finishes with around $4,100 in credit card debt by the time they graduate (which is around what I graduated with too). So for the purposes of this calculation let’s assume that the average rate is 19.99% (splitting the difference between the good and bad payers).

If these students were to make the minimum payment on these cards, which is now 4%, they would pay $164 per week while interest starts at over $68 per month. At this rate, making only the minimum payment the average student would take 33 months (2.75 years) to pay off this balance, assuming they didn’t put a single penny on the card and faithfully made payments after college. I think it’s probably safe to say that many of the people who signed up for that card had a problem with credit card debt somewhere down the line.

When you do the math this comes up to a whopping $1,247.23 in interest alone… that is one expensive bag of M&M’s!!

Now while this is an extreme example of many foolish kids not realizing what they were getting in to by signing up for the card, there is a valuable lesson here about the bonuses and rewards that credit cards offer. If you are drawn to a particular credit card because of some incentive plan they are offering, at least do yourself a favor and look in to these aspects of the card:

• The APR % after any introductory rate wears off
• What the APR % jumps to should you miss a payment or make a late payment
• How the reward program actually works and what restrictions there are
• Do you get the rewards if you don’t pay off your balance in full?
• Are there any annual fees associated with holding the card?

And MOST importantly:

• Am I Responsible Enough To Make Payments And Not Run Up A Huge Balance?

Credit card rewards can be great, and there are a lot of benefits to owning a credit card. I know a lot of people who use cards responsibly and get big bonuses for doing so, but for every person I know who is responsible I know at least ten people who are the exact opposite and will be digging out of credit card debt the rest of their life. You would be much better taking advantage of a 0% balance transfer offer instead to try to knock down that balance.

What’s in your wallet? Is it worth it?

When your credit history gets dinged by late payments on your bills, you might be thinking that aren’t any viable options for getting a credit card. Over the past 12 to 24 months, many US consumers have seen their credit scores drop because of the economic downturn that we have been experiencing in this country. If you’re in this type of situation, don’t despair because there are credit cards for bad credit available to many consumers.

There are basically 3 types of credit cards that you can apply for and oftentimes be approved for when you have bad credit. These are:

Pre-paid credit cards – just as the name implies, you get out of this credit card what you put into it. It’s similar to a checking account in that you deposit funds into this type of credit card account.

Secured credit cards – these types of credit cards require that you deposit funds into a separate type of account (usually a savings account) which is used to secure your credit card account.

Unsecured credit cards – a regular type of credit card requiring no securing deposit into another interest-bearing account. The worse your credit score is, the lower your spending limit will be with an unsecured credit card.

What to watch out for

It can be pretty challenging when you start applying for credit cards when you have bad credit. Many people are unaware of the things you need to watch out for. Here are three aspects to be aware of when you are looking for credit cards for bad credit:

Bonuses and perks offered – first of all, many banks will advertise bonuses or perks to entice you into signing up for one of their credit cards. Although they may offer airline miles or even cash back bonuses, they typically have higher annual membership fees and interest rates.

Deposits required – deposit amounts will vary from one bank to the next. Depending on your situation, the deposit required may only be a few hundred dollars. However, it could also be as much as a few thousand dollars. So you want to do your research.

Conversion features – most of the time this feature allows you to convert from a secured credit card to an unsecured one after your payment history is maintained positively for several months. Interestingly enough, most banks that issue credit cards for bad credit don’t tell you this because they don’t want you to know that option is available.

There are some instances where you may be declined when you apply for credit cards for bad credit. Most of these instances are related to how bad a person’s credit history has gotten. In the worst case scenario, you always have the option of a pre-paid credit card. Most of the time, you get approved for these without the credit history check that secured and unsecured credit cards require. Additionally, you want to make sure that information you provide on your application is as accurate as possible.

If you own a TV you’ve seen the Capital One Venture Card commercials by now. You know the ones with the Vikings running around on the beach and going skiing and whatnot. What you might not have seen is what the Venture Card can do and what rewards are involved.

Venture Card Travel Rewards

Those of you looking for good reward cards with travel rewards pay special attention. Capital One set out to take the travel rewards card world by storm and they did with Venture, offering 2 points for every dollar spent with their card, as compared to many other cards that just offer one point per dollar spent.

Each point you have is worth 1/100 of one dollar, which means that if you have 10,000 points you can get $100 worth of travel rewards, 20,000 points gets you $200 travel rewards and so on. Those of you who use their card for everything can really reap the benefits, especially if you use it for things like work expenses that are reimbursed to you anyway.

Claiming your travel reward is fairly simple to do, you just purchase whatever travel expenses you are looking for and then let Capital One know that you would like that purchase on your Venture Card reimbursed, really pretty simple. Capital One also claims that there are no travel restrictions or blackout dates and from everyone I have spoken to they agree that this is true.

Venture Card Fees and Interest

The Venture Card does carry a $59 fee annually however it is waived within the first year for signing up for it. Personally I’m not a big fan of cards with annual fees (they make money on interest already!) but if you are someone who would really take advantage of these travel rewards that Venture Card has to offer then who am I to stop you? Just be sure to factor in the fee when you are preparing your expenses. Venture does also have a no annual fee card but rather than double points you will only receive 1 ¼ points instead.

The introductory APR on this credit card is a variable 13.9% for purchases and balance transfers as well while cash advances are slotted at variable 24.9% interest with no transaction fee for the transfer itself. If you make a single late payment your rate will balloon to a whopping 29.4% so make sure you pay your bill on time unless you want to pay one third more for everything you put on your card. Be sure to check these terms with Capital One before applying as they are subject to change from time to time, but these are current at the time of this writing.

Ultimately the Capital One Venture Card is a very nice travel reward card, and has some nice incentives for all you jet setters out there, but remember this card carries a fee so that can be a downside. As always be sure to pay off your balances as soon as possible or any credit card rewards will be washed away by the interest you will pay instead.

The Chase Freedom Credit Card has been around for a while but it has recently been revamped to include some special bonus offers that they did not before.

Chase Freedom Credit Card Rewards

The Freedom credit card offers a revamped 5% cash back bonus for purchases made in specific categories like gas, groceries, airlines, home improvement, hotels and department stores. These specific categories rotate so the 5% may apply for one quarter but then change to something else a few months later. Discover More card does t he same thing.

For regular purchases you get an additional 1% cash back on everything you buy with no limits. Chase also says that these rewards never expire, which is a great thing for those of us who like to save up our cash back rewards, rather than just claiming small amounts once in a while.

Chase also offers an online shopping portal for customers only that provides discounts for cardholders and gives an extra cash back amount on purchases through the portal up to 20%. There is also a travel section to the portal that allows you to book vacations or other travel arrangements and use your cash back points to do so.

Chase Freedom Card Fees and Interest

The Chase Freedom credit card has no annual fee, which is rare for a card that offers this level of rewards. There are fees however for balance transfer and cash advances (greater of $10 or 5% for both) and foreign transactions are charged a 3% fee, which can really add up for you international travelers. If you do travel internationally often you may want to check out the Capital One Venture Card, which doesn’t charge fees for using the card internationally… at least not today, this could change in the future of course.

The interest on the Chase Freedom card begins at 0% for the first six months on purchases and 0% on balance transfers for the first twelve months. After that the rate increases to somewhere between a variable 12.99% to 22.99% for both purchases and transfers, depending on your credit worthiness. Cash advances are listed at a variable 19.24%. If you miss a payment or make a late payment your rate jumps to 29.99% so make sure you make your payments on time… ouch! Of course these rates can and probably will change but they are accurate for now… check with Chase to be sure these are the rates if you sign up.

Overall Opinion

Chase has done a nice job with its Freedom credit card, with a nice incentive program that offers cash back on purchases which, for some of us who use credit cards wisely, can really add up over time. The portal is nice, if you remember to use it when you’re making purchases. The interest rate is a tad high for my taste, but the no annual fee is a big plus in my book (I don’t see the point of annual fees) but of course being irresponsible with your credit will more than make up for any saving there. The Chase Freedom credit card is worth a look if you are looking for a good rewards credit card.