Can you transfer your Amex Gold Card Membership Reward Points to the Blue Card?

By: Mr Credit Card

10/29/2006

FAQ : I presently have an AMX gold card which I have used since 1972. My question is I want to exchange the gold card membership for a new Blue card. Can I transfer my earned miles to the new card and what procure if any do I need to begin. I also have an Optima card. I am retired and have little need for the gold card. Thank YouM

Answer : Yes you can transfer your membership reward points from your Gold Card to a new Blue Card.

You have to bear in mind one difference between the Membership Rewards in your Gold Card and the Membership Rewards Options program in the Blue Card. While you can transfer one point into one airline miles in the regular Membership Program, you need two points to get one mile in the Blues’ Membership Rewards Option program. Hence, I would suggest that you transfer any points that you want to use for air miles before making your transfer from the Gold to the Blue Card.

Other than the airline miles, the rest of the reward program is identical for the Gold and Blue card. The Blue card also has no annual fee so you will save some money on that. Essentially, the Blue Card is a no annual fee credit card version of the Gold charge card with a slightly watered down version in the airline rewards.

Mr Credit Card

Video Review : GM Flex Card

By: Mr Credit Card

10/20/2006

This is my first stab at posting a video review on this blog. I’ll start with the GM Flexible Earnings Card from HSBC Bank Nevada. This card allows you to earn rebates which you can use for the purchase of a GM vehicle or even a non GM vehicle.

I have also posted the same video review of the GM Flex Card here which has a clear video image.

The End of 5% Cash Back Credit Cards?

By: Mr Credit Card

10/18/2006

For a long time, the Citi Dividend Platinum Select Card was probably the most popular and the best cash back credit card available. The card allowed you to earn 5% cash rebates on purchases made at supermarkets, gas stations and drugstores. For a long time, it was the only card of its kind.

Then last year, Chase introduced the Cash Plus Rewards Visa, which was essentially identical to the Citi Dividend Card. The launched of this card gave Citi some competition. However, not long after launch, Chase discontinued their card in July this year. And not long after, Citibank also discontinued the Dividend Card.

Citibank sent existing Dividend Card holders a letter stating that the rebate formula will be changed. The 5% rebates have been reduced to 2% and Citi claims they will soon be adding cable and utilities expense under the 2% category.

Chase meanwhile has introduced the Chase Freedom Card, which allows you to earn 3% cash back every time you use your card for eligible Gas, Grocery and Quick Service Restaurant purchases. Recently, this too has changed as the Chase Freedom now only offers 3% on various categories but on a rotating basis.

I have a couple of friends who work at both Chase and Citi and they have both told me that both the Citi Dividend Card and the Chase Cash Plus Rewards card were not very profitable. Cardholders tend to pay their bill fully every month and because there was no annual fee and have to pay that 5% rebates, both issuers felt it was better to scale back the rebates paid on these so called “everyday purchase” items.

Hence, the only credit card today that still pays 5% rebates on “everyday purchase items” is the Blue Cash from American Express. However, you have to spend above $6,500 to start earning 5% rebates. The Blue Cash has the advantage over the Citi Dividend and Chase Cash Plus in that you could earn unlimited rebates. You can also earn 1.5% rebates on “other purchases”.

I personally have the Blue Cash (which is a good thing) and perhaps will consider the BP Rewards Visa because I use that station and also because it pays 2% cash rebates on both travel and dining expenses.

The free 5% ride with Citi and Chase appear to be over.

Bad Credit Balance Transfer Credit Card

By: Mr Credit Card

11/18/2001

What happens when you have bad credit and want to transfer a balance to another credit card with either a 0% APR or at least one with a lower interest than you are presently paying?

This is a really tricky issue because there are a few solutions depending on your situation. They range from just transferring a balance to a card without a zero interest deal or as a last resort, going to peer to peer lending institutions. But first, let’s go through all the scenarios for someone looking to do a balance transfer.

Scenario 1: You Have High Balance But Good Credit – This is the ideal situation. You are presently carrying a high balance and are looking to pay off your debt faster and/or lower your interest payment. For those with good credit scores, getting a

Your Credit Is Borderline Fair – mid 600s and You Cannot Get A 0% BT Deal – Do not get me wrong. You may be able to get a 0% BT deal even with a 600ish score (it really depends on what’s in your credit report). But in the event that you cannot get a 0% deal, what do you do? Well, if you have several credit cards, you could transfer the ones from the card with the highest interest rate to cards with lower interest rates. You may not get 0% and pay zero interest for a short period, but you will still end up paying a lower interest that if you stuck with your high interest card. This is probably the best course of action if you cannot get a great BT deal.

Another alternative would be to apply for a no annual fee credit card and hope to get a lower interest that you are presently paying. Then simply transfer the balance to the new card. They key question is what type of cards tend to accept folks with not so stellar credit. Well, airline and frequent flier credit cards is one route to go. Yes, you probably have to pay an annual fee. And you definitely will not get any 0% deal. The interest rate will most likely be at the mid teens. But if this is viable, transferring a balance this way is not such a bad deal. Plus, you may actually get some nice bonus miles!

Your Credit is Really Bad and You Cannot Get Approved For a regular unsecured card – If you have run out of existing credit cards to transfer your balance, then perhaps, the best alternative is not to consider credit cards at all. You would most likely already to paying high double digit interest rates. One alternative that has not been explored often enough is using peer to peer lending. There are services like prosper.com or lendingtree.com which connects you to other people who want to earn a slightly higher interest than what banks give them.

With these services, you have to tell the lender the reason you are borrowing the money and your income. Bear in mind that you are not guaranteed a much lower rate than you are already paying at the moment. But I’ve known more than a few folks who could not get approved for credit cards but have successfully gotten loans from peer to peer lending firms at much lower rates than their existing credit cards.

Summary – To conclude, you do not need perfect credit scores to get a 0% balance transfer card. But the lower your score, then the higher the chance that you have to settle for a non zero interest balance transfer deal. For those cannot get approved for a credit card, resorting to peer to peer lending firms may be a viable alternative to lowering your interest payments.