Egg Visa Credit Card

By: Mr Credit Card

05/12/2010

Summary: The Egg Visa Credit Card provides card members with a large selection of benefits and services as well one of the best introductory rates available for credit cards in the UK.

Features and Benefits: New card members of the Egg Visa receive introductory offers of 0% interest for 14 months on balance transfers within the first three months and 0% interest on new purchases for 3 months. There is also no annual fee for this credit card.

The Egg Visa also includes:

Online PIN reminder and 24 hour online account management.
Interest free period if the balance is paid in full each month of 45 days on all purchases.
Balances can be transferred conveniently online anytime from existing credit or store cards, loans, overdrafts or balances that a second cardholder has.
Protection for purchases costing more than £25 you are covered, for up to £1,000 per item, for purchases that are damaged, lost or stolen in transit, or for up to 30 days.
If all or part of your fare is paid with by your Egg Card, you receive free travel accident insurance which covers you, your partner or your dependent children during accidental death or serious injury while traveling.
Active fraud monitoring is included to monitor any suspicious activity or anything out of the ordinary which includes a case manager to assist you during the process.
Your monthly repayments are paid by Direct Debit from your bank account.
The minimum credit limit offered is £500.

Deals and Discounts: Cardholders of the Egg Visa Credit Card also receive deals and discounts at retailers that include agift.com, Virgin Wines and 7digital.com. There are opportunities to receive instant cash back with certain retailers when using your Egg Visa.

Conclusion: Consumers shopping for a credit card with a great introductory APR on balance transfers and purchases will want to look into the Egg Visa credit card, which includes a number of benefits and features as well as opportunities for deals and discounts and instant cash back.

HSBC Bank Credit Card UK

By: Mr Credit Card

05/11/2010

Summary: The UK HSBC Bank Credit Card has many of the best introductory offers on rates and benefits for a credit card that are available.

Features and Benefits: New card members receive an introductory APR of 0% for 15 months on balance transfers made within 30 days of opening the account. There is a 2.9% balance transfer fee with a minimum of £5. In addition, cardholders receive 0% on purchases for the first 3 months as well and then a typical 16.9% APR (variable). There is no annual fee for this credit card.

The HSBC Bank Credit Card also offers the following benefits and features:

Additional credit cards for partners or family members over the age of 18 are free.
24-hour worldwide assistance and emergency cash advance if the credit card is lost or stolen.
Special savings and discounts of up to 8% discount on Thomas Cook holidays that are booked through the HSBC Travel Club.
56 day interest-free period if you pay your whole credit card balance in full and on time.

Criteria: You must have a current account with HSBC and pay more than £500 monthly into your account. You also need to have a salary of £8,500 or more. Student account holders do not need to pay a minimum amount or salary into the account.

Conclusion: This is a great credit card for those shopping for a balance transfer card. The 0% APR for 15 months on balance transfers is not included with most credit cards especially when offering a 0% APR for 3 months on everyday purchases as well. Another notable benefit it that there is no annual fee for having the card.

Swipe Fees

By: Jason Steele

05/10/2010

Fees are all the rage these days. I will sell you anything for nothing, not including required fees for everything, the amount of which will be disclosed later. That seems to be the hottest business model on the planet these days. Credit cards were some of the pre-eminent innovators of this business model. The travel industry and the telecommunications industry are currently battling for the lead. They make the add on “rust coating” of a car dealer seem quaint. In that context, can you imagine what a “swipe fee” may be?

What Is A Swipe Fee

It is kind of what it sounds like, a fee for each time you use your credit card. Before steam starts coming out of your ears, here is the good news; Unless you are a merchant, you do not have to pay swipe fees. If you are a merchant that chooses to accept credit cards, then yes, you do have to pay a fee every time one of your customers pays with a credit card in addition to a percentage of the sale. If you have ever sold something on eBay, you have some idea how this feels.

Swipe Fees Are Optional

Merchants love to complain that they have to pay swipe fees, but they are not mandatory. My favorite bagel store in Denver, The Bagel Store, does not pay swipe fees. The same was true for the company that built the fence in my back yard. That is because they have both chosen not to accept credit cards. Despite my preference for paying with a credit card, from a 50 cent bagel to fence that costs thousands of dollars, I chose the merchants because they provide a superior product at a competitive price. Despite not accepting credit cards, both companies have been prosperous for decades.

Why Swipe Fees Aren’t So Bad

I have listened to merchants cry about swipe fees, and read editorials where some have proposed that they be price fixed. Keep in mind that these swipe fees by themselves are what makes credit cards feasible customers who pay their balance in full every month, as well as for all debit card and charge card holders. Furthermore, what merchants consider excessive swipe fees is what makes possible reward cards. As my readers know, reward cards are a subject near and dear to my heart. That said, I would not oppose some common sense regulation of the market for swipe fees, also known as interchange fees. Ideally, such regulation would be the mirror image of the CARD Act, a piece of legislation I strongly supported.

The Retail Industry Perspective On Swipe Fees

I recently read this article that pointed out that swipe fees are rising in the US while falling in Europe. Unfortunately, the author looses all credibility when she says;

“Interchange fees, which are imposed by the card association and issuing banks to process the credit and debit card transactions, essentially function as a hidden tax on consumers.”

If that statement were true, then you could just as easily substitute “interchange fees” with “worker’s health care”, “management bonuses” or any other business expense. The author ignores the fact that prices are determined by the market, and business expenses be they interchange fees or lavish corporate retreats are never directly passed on to consumers as a “hidden tax”.

The author quotes John Emling,the senior vice president for government affairs at Retail Industry Leaders Association;

” As Congress debates comprehensive financial reform, now is the time to bring appropriate oversight and transparency to interchange fees.”

By now, I have learned that when retailers refer to “transparency,” they are talking about charging credit card purchases a transaction fee to cover their swipe fees. If these swipe fees truly “function as a hidden tax”, then such transparency would not be necessary. Note to the Retail Industry Leaders Association: Feel free to transparently disclose how much you are paying in swipe fees, just don’t substitute an actual surcharge on all credit card purchases for what you claim is currently a “hidden tax”.

Emling claims that;

“”While most Western economies have taken action to rein in excessive debit card swipe fees, here in the U.S., the credit and debit card industry continues to hurt retailers and consumers by setting rates indiscriminately and raising rates at will.” [emphasis mine]

Few things irk me more than an industry organization trying to argue their point by advocating policies that enrich themselves with the claim that they will benefit consumers. Just be honest and argue your point from your perspective. They should stick to advocating for their industry, and let consumer advocates make the case for consumer’s interests.

NatWest Classic Credit Card

By: Mr Credit Card

Summary: The NatWest Classic credit card is similar to the other NatWest cards regarding criteria and card benefits. The main difference is the introductory rate of 4.9% on everyday spending for nine months.

Criteria: The NatWest Classic card is subject to approval and only available to existing NatWest account customers. You must also be at least 18 years of age and have an income of at least £10,000 p.a.

Features and Benefits: Cardholders receive an introductory rate of 4.9% on purchases for nine months from opening the card account. There is no annual fee and a typical 19.9% APR (variable).

Cardholders also receive the following features and benefits:

Withdraw cash of up to £300 a day, depending upon your credit limit, from cash machines all over the world. There is a 3% handling fee and a minimum of £3.
If you already have a NatWest credit card, you can still apply for the NatWest Classic card but transfers from other RBS Group cards are not allowed.
Transfer money from the Classic credit card to any UK bank account, simply paying the money transfer rate from the date of transfer. The minimum allowed is £250.
No fee to transfer balances from existing cards. You will just be charged your standard rates and are able to transfer up to 95% of your credit limit.
56 days interest free credit on purchases when you pay your balance and your previous month’s balance in full and on time each month.
Cardholders who also have an Avantage Gold current account receive a 1% discount on the APR for 12 months.
Add family and friends as cardholders.
Receive savings and discounts with NatWest Wine Club and occasional free gifts as well. Card members also receive membership with NatWest Travel Services which include assistance with booking holiday and work trips and receive discounts on air tickets and hotels. Travel support with visas, passports and health are also included as well as medical support if you are ill or involved in an accident.

Conclusion: The NatWest Classic credit card is quite standard as far as benefits and features but will appeal to those looking for a low interest card for everyday purchases. Also for those that may want to transfer balances to a low interest card for nine months but again, remember to check the criteria required for the card.

Three Tips To Use Your Discover Card More Efficiently

By: Mr Credit Card

05/08/2010

Today, we’re presenting a guest post from Manshu from One Mint, a personal finance blog that covers a wide range of topics like gold ETFs, India ETFs, bank interest rates, and other stuff that affects your money. If you liked this post, please consider subscribing to his feed.

I wrote about my 60 seconds Discover Card approval experience a few months ago, and since then I have used this credit card quite a bit. Along the way, I have discovered a few things about Discover, which I am going to share with you today in the hopes that you will find them useful and make your use of this credit card more efficient.

1. There is an app for that: If you have an iPhone – Discover has a very slick app that you can use. It is very functional because seeing balances, recent transactions, and making payments are all very easy on it. I have started using it recently, especially for checking out recent transactions and making payments, as these are things I do most often, and can be done easily on the app.

2. Keep an eye out for the 5% cash-back: Generally, Discover gives you 1% cash-back on your purchases, and it declares a category on which it gives out 5% cash back every quarter. For this quarter it is Home and Fashion. In January, it was Travel, and I see that in June, you get 5% on restaurants.

There are a couple of things to keep in mind about this:

a) First is that you have to sign up for these. Signing up is simply clicking a button which says – Sign Up – when you log into your account. I have never missed signing up for this, but I am guessing that some people do miss clicking this button, and that is probably why Discover needs you to sign up for this in the first place.

b) Second thing that struck me about this was being a little smart in managing my credit cards as far as the 5% category is concerned. I use multiple credit cards, and I had to book a few air tickets last quarter, which I did using another card.

I missed out on easy pickings just because it slipped my mind. If you use multiple credit cards, which you probably do, then it is a good idea to take a moment to think about the 5% category in the present quarter, and let it register in your mind. This will increase your odds of making the most out of the 5% cash-back.

3. Spend Analyzer Tool: There is a spend analyzer tool in the Discover website that shows you a pie chart of your total expenses broken out into categories. This is a pretty slick thing because it takes your expenses, categorizes them, and then presents a snapshot of where your money is going. I didn’t pay much attention to this initially, but then I tried it out once, and was surprised to see how much money I was spending on restaurants. If someone had asked me what percentage I thought I was spending on eating out, I would have been way off the real numbers. More than anything else, this is probably an indicator of how clue-less I am, but still, this will be a good report for everyone, and looking at it every once in a while may reveal things about your spending pattern that you didn’t know about.

Knowing about these three things made me use my card more efficiently and I hope you find these little bits of information useful too.

Related Posts:

60 seconds Discover Card approval experience – This is Manshu’s post about his application process.

NatWest Platinum Credit Card

By: Mr Credit Card

05/07/2010

Summary: NatWest is a member of the Royal Bank of Scotland Group and many of the credit cards are similar to the RBS line of cards. The NatWest Platinum credit card offers a variety of benefits and features and special introductory offers that new cardholders may want to look into.

Criteria: Besides being a current RBS account customer, the NatWest Platinum card is subject to approval only to customers 18 years of age and over, with an income of at least £10,000 p.a.

Introductory Offers: New cardmembers are offered 0% on balance transfers for 15 months from account opening if the balances are transferred within three months of account opening and 0% on purchases for three months. There is a 2.9% balance transfer fee with a minimum of £5 and a Typical 16.9% APR (variable).

Features and Benefits: This credit card includes 1% off the APR for Advantage Gold customers for at least 12 months. The monthly fee for an Advantage Gold account is £12.95. Card members also receive the following features and benefits:

No annual fee.
56 days of interest free credit on purchases plus comprehensive protection against online threats, fraud and identity theft.
Transfer funds from the NatWest Platinum card to any UK bank account and pay the money transfer rate. The minimum transfer is £250.
Receive cash advances up to £750 per day from cash machines worldwide, depending upon your credit limit.
Add family and friends to your card as additional cardholders.
Receive savings and discounts with NatWest Wine Club and NatWest Travel Service
Cardholders are eligible also for travel support and medical support while traveling.

Conclusion: The NatWest Platinum card is most suitable for those customers that are looking for a 0% APR on balance transfers and purchases. The ability to transfer balances from larger interest credit cards to a card with 0% for 15 months can potentially save a great deal in interest as well as not paying interest for 3 months on new purchases that are made. The downside of course is that the NatWest Platinum card is not available unless you are a current account holder with RBS. Keep the criteria in mind when applying.

More Information From Visa About Their Crackdown

By: Jason Steele

05/06/2010

Earlier this week, I reported on actions that Visa was taking to crack down on scams. At that time, I mentioned that it was not clear if the new Visa would targeted only towards online transaction, or if they would affect other traditional scams like the one I reported about.

Speaking With Visa

Earlier today, I had a friendly conversation with a representative of Visa. I applauded Visa for taking this action, but I wanted to know if it’s scope was limited to online transactions. He assured me that the changes addressed in the press release encompass all transactions, both online and offline. The common sense solution to the problem is simple, customer accounts cannot be charged by a third party unless the customer enters all the account information for each transaction. While such “sharing” of information was not previously permitted by Visa’s merchant agreement, it still occurred. As I discovered in my series, this practice is seemingly prohibited by Mastercard and Amex as well, yet it has been occurring unabated for years.

Why Is Visa Doing This?

They actually admitted that this move was entirely in response to the pressure put on them by my series. Just kidding. Actually, Visa is trying to position itself among the major credit card processors as the most reliable and trustworthy of the three majors. I strongly feel that this move is a very positive step for Visa, one that I hope Mastercard and Amex move quickly to match. You can read here about some of the other steps Visa is taking in regards to security.

How To Pick A Card Processor

Many banks allow you to apply for a particular card with your choice of Visa, Mastercard, and sometimes even American Express. Typically, customers really only consider the policy of the bank issuing the card, and are not terribly concerned with the card processor. The most common consideration when choosing a card processor, is their merchant network. In the United States, it seems like about 10% of merchants that take Visa or Mastercard don’t take Amex. In my experience, companies that do not take American Express are typically smaller companies that cite Amex’s high merchant fees. Conversely, I also shop at Costco, a store that only accepts Amex.

In the past, I have distinguished Visa from Mastercard by their greater acceptance overseas as well as from reports of somewhat superior rental car coverage than Mastercard. Now, Visa is trying to position themselves above their competitors by offering greater security protections. As a consumer advocate, I strongly support this move and until Amex and Mastercard step up to the plate on this issue, I would strongly recommend that people choose to apply for a Visa when they have a choice.

Which Credit Card Is Best For Buying a Diamond Ring For My Engagement?

By: Mr Credit Card

I recently got this email from a reader.

I’m planning on ing a diamond for my fiance soon. I plan on going through a chain jewelry store, putting the balance on one of their cards, and then transferring the balance onto a credit card after a year. Which credit card do you think would be best for a transaction of this type?
Thank you.

Mr Peter Field

I replied to him to ask for more details.

which store do you intend to your diamond ring from? and what is your fico score?

Here is his answer:

Thinking of going to Zales jewlers. They offer a card the has 0% interest for the first year, but then goes up to 26% interest after the first year is over. My plan is to transfer the balance over to a balance transfer card. My current credit score is in the low 700’s.

Answer – Peter – first thing you have to be aware of is that Zales credit card may be dropped by Citi (because it is not really profitable for them) and you may not be able to get one. But here is my suggestion. Get the Discover® More® Card – $50 Cashback Bonus® instead. Here’s why.

Discover has a shopping portal called shopdiscover.com, with over 100 merchants. When you log in to your Discover account, you can go to any of these online merchant partners and get between 5% and 20% in cash rebates (which is like getting a discount). Zales is one of their partners and it gives you a 5% rebate. Below are some screen shots I have taken.

Clicking on the Zales icon will take you to the page which shows the fine prints.

Clicking on the start shopping button will take you to zales.com where any purchase you make with a Discover Card will be tracked and you can get your 5% rebate. Discover also offers a 0% Introductory APR* on purchases for six months. You can also earn $50 in cash back bonus if you spend $599 within the first three months (which you will). If you can pay off your engagement ring within 6 months. that’s great. If not, you can transfer your balance to another card.

You might also want to check out other online sites. I just did a writeup on how you can get rebates at ice.com.

And by the way – Congratulations in advance.

Vanquis Visa Card

By: Mr Credit Card

Summary: The Vanquis Visa is a UK credit card for people with bad credit or no credit and assists those that are trying to build and rebuild to strengthen their credit ratings.

Features and Benefits: There are three card designs to choose from, blueberry, cherry and lime. Cardholders begin with a credit limit from £150 to £1,000 and are eligible for a credit limit increase on the 4^th statement along with increases every 4 months, up to £3,000. Cardholders also receive the following features and benefits with the Vanquis Visa credit card:

Add an additional cardholder free.
Free fraud monitoring which warns you of suspicious activity.
Chip and PIN technology adds security when using the credit card.
Payments can be made online or over the phone.
56 days interest free purchases.
No annual fee and a typical 39.9% APR variable based on a credit limit of £250.

Conclusion: The Vanquis Visa Card is a great credit card for anyone with problem credit history or who has not yet been able to establish credit. Most credit cards for this demographic include additional fees. The Vanquis card does not have additional fees, including no annual fee, is an unsecured credit card with a reasonable credit limit and easily obtained credit increases. This is probably one of the best credit cards available for establishing or reestablishing credit.

Should I Get A Delta Reserve Card To Go With My Amex Platinum Card?

By: Mr Credit Card

05/05/2010

This is an email I got recently from a reader.

Hello. I currently have an AMEX platinum card and love the > concierge/travel perks, etc. We use this for our personal expenses and of course enjoy the membership rewards, etc.

The firm I work at is no longer going to utilize corporate credit cards and so I have to get my own card which I’d like to use only for business expenses to keep things separated. My friends have told me I should get the Delta Reserve Card as I’m a Delta guy and spend about 30 – 50K/year in business/travel expenses. My only question is that there seems to be a TON of crossover between platinum and reserve card services. My business is willing to pay the freight of my Reserve card so should I still do it or is there another card that’s less money that gets me equally as good perks, etc since I already have a platinum amex card?

Thank you,
Jesse

I asked him a few more questions in a reply to his email:

And also, how many MQMs do you earn a year? and do you fly enough to earn elite status on Delta? if so what level?

Trying to find out the best card for you..so am asking these questions.

And this was his reply:

Thanks, we spend about 3+K/month on platinum and I have roughly the same (give or take 1-2K)/ month in biz expenses.

And yes delta is now the official airline of our household unless it just makes no sense whatsoever.

I don’t have status as of now but am basically setting myself up to do so.

10 or so trips to nyc from dc/year, 3 trips to boston, 2 to memphis plus other travel will put me at 20 trips easily this year. Have to go west coast 3 times as well.

Answer: – First, let’s get a few facts straight.

You are making 20 to 23 trips a year – so based on this you cannot qualify based on flying segments

Based on what you have said, your combined expenses (both personal and business come up to about $60,000

You fly mostly Delta Now

Now’s let’s look at some of the facts of the credit card you are considering (Delta Reserve) and the American Express Platinum Card (which you have right now).

Delta Reserve has many of the benefits of the Amex Platinum – like concierge service etc

If you spend $60,000 a year on the Delta Reserve Card, you will earn 30,000 MQMs, which automatically qualifies you for Silver status (which requires 25,000 MQMs) without flying

If you “link” your Delta Reserve Card to any Amex charge card, the annual fee will be $395 instead of $450

So should you get the Delta Reserve Card? Most definitely yes.

The more tricky question is what should you do with the Amex Platinum Card since the Delta Reserve has features like concierge service which the Amex Platinum also has?

I would actually keep your Platinum card (at least initially) because you do not know what will your credit line be on the Delta Reserve Card. If you have a credit line of at least $60,000, then I would actually downgrade the Platinum Card to the Gold Card. In fact, I would consider the Premier Rewards Gold Card if you find you are spending more on tickets other than Delta because you can earn triple points for airline ticket purchases with that card.

The only reason I would keep the Platinum Card is if you fly international with Delta in business class and you want to make use of the Platinum’s “get a free international business class companion ticket” feature with Delta (which is one of the international airline program parter).

So the conclusion is : Get the Delta Reserve Credit Card. Keep your American Express Platinum Card for a year. Then downgrade to the Gold Card or American Express(R) Premier Rewards Gold Card. Link both cards and pay a lower annual fee on the Delta Reserve.