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BMW Rewards, Student Cards, Discover Card, More Q&A

By: Mr Credit Card
03/12/2009

More questions from our readers. Here are some of my answers. Please keep the questions coming.

Question from Angelo Javier : How do I cash in my reward point on my bmw visa card. Is there a merchandise catalog or a cash I can exchange my point?

Answer : Angelo, you can access the rewards catalog from the following link :

http://www.bmwusa.com/Standard/Content/FinancialServices/CreditCard.aspx

I’ve actually created a little video to show everyone BMW’s reward catalog.


Question from Tiffany : I’m actually on hold for college, But I am returning on March 20 I believe. Can I still apply for the Student Card?

Answers – Yes, you should be able to apply for a student credit card.

Question from Peter Pham : Hello Mr. Credit Card – Your site is fantastic! Extremely clear, thorough and concise, I’m closer to choosing a new credit card, but still unsure.

As I am currently an unemployed and unregistered-for-school student; I do not make anything near the neighborhood of $6,500, so that takes the American Blue Cash Card out. I like what I see for the Discover Card, but still would most likely not reach the required level to get full cash back benefits. Would it still be a good card for someone like me? I have good credit and have a good spending-payment record.

Thanks a lot,

Peter Pham

Answer : Discover Card have a feature called shopdiscover.com (which many people do not know). They have partnerships with about 100 online retailers like Nike, Apple, Gap etc. When you shop at these online stores through shopdiscover.com and use a Discover Card, you can earn anywhere between 5% and 20% in cash rebates (or cash back bonus as Discover likes to call it). I think of it more as a 5% discount. So from that perspective, it is still worth getting the Discover Card.

Bank of America Accelerated Cash Rewards American Express Card

By: Mr Credit Card
03/11/2009

boacashamex1The Bank of America Accelerated Cash Rewards American Card is one of five (yes five) cash back cards from BOA. In fact, most of them have the same formula, which makes you wonder why they have five at all? Is this card any different? Let’s find out.

Rebate Formula – OK, let’s start with sort of cash rebates can a card holder earn from using this card. Turns out that you will earn 1.25% rebates for every dollar that you spend on the card. You can earn unlimited rebates. You can get your rebates in a check, statement credit or direct deposit into your checking or savings account.

Fees and Rates – As with most cash back cards, there is no annual fee. The APR ranges between 8.99% and 18.99%.

What do I think – Well, plain and simple. If you are looking for a credit card to earn cash rebates, I suggest you give this card a skip. This is because there are other cards that will pay better rebates than 1.25%. For example, cards like the Blue Cash pay 5% on gasoline, groceries and drugstore purchases. To find the card that will let you earn the most rebates, just fill in your expenses in the form below and it will show you how this card stacks up against the best cards.

Enter your approximate monthly spending into the calculator below to see how much you can earn per month if you’re using the Bank of America Accelerated Cash Rewards Card versus other cards!

Motley Fool Credit Card Review

By: Mr Credit Card
03/10/2009

motleyfool

Summary – The Motley Fool Credit Card has got several versions. There is the cash back version and the reward points version. With the rewards point version, you can choose to get a Visa, Mastercard or the American Express version. Let’s look at this card in greater detail.

Cash Back Version – With the cash back version, cardholders can earn 1% cash rebates for every dollar that you spend on the card. You can earn unlimited cash rebates. Your rebates will be sent to you once a year automatically.

Points Version – The Motley Fool credit card also allows you to earn points. Their cards are actually issued by Bank of America, hence the reward program is actually the BOA’s WorldPoints program. You can earn one point for every dollar that you spend on the card. You can choose to get either a Visa, Mastercard or American Express version of the Motley Fool credit card.

Fees and Rates – There is no annual fee for all of the above cards. New cardholders get a 0% introductory offer for balance transfers for 12 months. The rates varies among the different cards.

Verdict – The Motley Fool credit card is obviously targeted at Motley Fool fans. But is the card any good. For the reward points version, I would say that it depends on what you want to use the rewards for. If you intend to earn reward points for travel, then I would suggest getting a card like the Discover Miles Card, which allows you to book your own travel itinerary and use the miles you earn to redeem for it. This allows you to avoid all the restrictions of WorldPoints booking system. If it is gift cards or merchandise that you are after, then I would suggest that you consider the Discover More Card because it has more gift card partners than any other program. You can also shop at over 100 retailers online and get 5% to 20% discounts. If you are really a fan of Motley Fool, then I guess that it is not a bad card though there are better reward cards around. You also can choose between having a Visa, MasterCard or Amex version.

For the cash back version, I would give it a thumbs down because all you can do is to earn 1% cash rebates. The better cards on the market allow you to earn more than 1%. To find out which is the best cash back card for you, simply fill in your expenses below and the calculator will show you the best card based on your spending patterns.

Enter your approximate monthly spending into the calculator below to see how much you can earn per month if you’re using the Motley Fool Credit Card versus other cards!

Financial Peace by Dave Ramsey

By: Christina
03/08/2009

financial-peaceEvery Sunday here at Ask Mr. Credit Card.com we review a personal finance book. This week I’m beginning a review of “Financial Peace Revisited” by Dave Ramsey.

This is the second edition of Ramsey’s famous book, and it includes new chapters on marriage, singles, kids, and families.

Chapter 1: The Beginning: A Very Good Place To Start

Ramsey begins by giving us his own back story – the events that led to his successful Financial Peace workshops, seminars and books. As a young man, he was heavily invested in Real Estate, and this is his story.

I had arrived at “financial independence” that mystical place every young entrepreneur wants to reach. If I wanted something, I bought it – no thought required. I had done it honestly, with hard work and intelligence. So what could possibly happen in paradise?

Along with my knack for obtaining bargains, I had another talent. I had an unusual ability to finance everything. If one of my business lines of credit ran low, I would put on my custom suit, get in my Jaguar, and head for the bank. I would make sure to park in front of the manager’s window for a big impression. I had my financial statements, corporate strategy, and tax returns all bound for presentation.

All this pomp and circumstance, combined with the fact that my “deals” always worked and enamored the bankers, and they loved to lend me money.

We had every type of personal line of credit, business lines of credit, and equity lines of credit – and let’s not forget those wonderful gold and platinum cards.

If a banker would dare to indicate that I might have too much debt, I would hunt another source.

I have taken a $20,000 draw on a line of credit in a cashier’s check, walked out of that bank, and into another.

With all the “presentation” explained above and a $20,000 cashier’s check, I would “establish a new relationship”. Which meant I would deposit my borrowed cash into their bank, promise to be a customer, and in return they would give me a new $100,000 line of credit plus every platinum card and personal line of credit they had.

The sarcastic way I am explaining this to you almost makes the process seem immoral. However, we were making money, and we had a bright future, so the banks wanted customers like us.

It’s pretty easy to see why business practices like this got Ramsey into trouble. I’m sure it seemed very normal, and like a good idea at the time, but as Ramsey explains, it did end up being his downfall.

Our largest lender was sold to a larger bank. Neither pomp, nor circumstance nor my name meant anything to the new upper management.

Also, the 1986 tax act began to have it’s negative impact on real estate so all the banks began to get worried.

Upper management decided to “trim back” on real estate lending.
Most of our borrowing was in short-term notes because we resold most of our property for profit. Because we had “open lines of credit” and short term notes, the banks had the right to call (or demand that we pay) most of our debt within 90 days. And that is just what they did. The new management called all my notes.

I had 90 days to find $1.2 million. I paid virtually all of it, but doing so destroyed my business. That action started a chain reaction that ended in my losing everything but my home and the clothes on my back.

I remember the strain on my marriage. I remember the mornings standing in the shower with the water scalding my face and crying like a baby.

I remember the sheriff serving lawsuit papers for default on notes. I remember thinking of suicide, knowing I had a $1 million life insurance policy that would provide for my family better than I was doing.

It took three and a half years for paradise to completely unravel, and for me to end up broke.

That’s a magnificent failure isn’t it? I can’t even imagine living through that, and I’ve been through bankruptcy. Mine was a slow failure too – 4 years of struggling to pay medical debt, and getting further and further behind. Mine was a lot of ignorance – financial and otherwise.

I literally can’t imagine being in Ramsey’s shoes – having worked hard, struggled to build a business, played within the rules, and then to find yourself with nothing when it’s all said and done.

All because of the insidious credit trap – the dark side of easy credit that many of us experience every day, and that largely caused many of the economic problems that we’re all facing.

Is it any wonder Ramsey is so anti-credit? He was royally screwed by his bank because they had overextended credit to him. (Much like the people who have come here and left comments because their credit card companies cut their limits.) It’s not because Ramsey made late payments, or because he didn’t play by the rules – it’s because the bank over extended itself and made a business decision to limit his credit.

Ramsey’s story is a very real warning, especially to those who play the credit game well – the ones who manage their credit, respect it, and use it to further themselves. Always remember that the banks on the other side of the desk have priorities too, and they are rarely going to line up with yours – even if they do choose to lend you their money.

The Ramsey’s finally ended up declaring bankruptcy – but thankfully, their story doesn’t stop there.

Chapter 2: Enough of Anything Is Too Much

Ramsey begins this chapter with a frank look at the challenges facing our nation:

Our nation’s financial situation, with record budget deficits and bank failures, is deplorable. However, the nation’s situation is only a reflection of our own personal inability to “just say no” to ourselves. Our failure to get control of financial matters in our personal lives will have to be rectified before we can demand accountability from elected officials.

Our spoiled Congress is only a reflection of our spoiled selves. The good of our country is overlooked so our pet special-interest groups can be served, just like the good of the family is often overlooked so that Dad or Mom can have that special trinket they must possess.

Well that’s a little preachy I think, I but I agree. Especially with Ramsey’s next statement:

As a people we have forgotten how to delay pleasure. We are living in a society that microwaves everything. We must have it, we must have it now!

That’s one of the truest things I have every heard about today’s way of life. Goals (and financial peace!) take hard work, sacrifice and time. The short and easy path will usually burn you in the long run.

Many of us though, delude ourselves into think that we can just keep running faster and faster. We think that if we stay ahead of the inevitable repercussions, that they will never catch up to us. It just doesn’t work that way.

In the 1950’s you seldom would have heard of a person filing bankruptcy, being foreclosed on, or having his wages garnished for non-payment of debt.

Now, if you live in a middle income neighborhood, out of your closest one hundred neighbors there is at least one house empty from foreclosure, plus one foreclosure underway, and four to seven of your neighbors are more than three months behind on their house payment. In some areas, these numbers are double.

This book was revised in 2003. As shocking as the numbers were then, I have to wonder, what are they now? Does any one know? Please leave a comment if you know the average number of foreclosures per 100 houses?

The American family has especially felt the effects of these changes in our financial philosophy. The very core of the family is dramatically affected by this overing, which creates overborrowing.

Most marriages that fail list financial problems as a contributing factor, if not the main reason for the failure. Marriages of twenty – five years or more are frequently destroyed by foreclosure or bankruptcy. The “stuff” must have owned them, instead of their owning the “stuff.”

I certainly won’t argue that money problems put stress in a marriage. My own marriage was no picnic during all of the financial problems that led up to our bankruptcy.

However, I tend to look at the way money is managed in a marriage as more of an indicator of the marriage’s health. It may be the straw that breaks the camel’s back, but it’s usually just one straw in a heap of issues when things aren’t working out. If the money is being mismanaged, then chances are, other things are being mismanaged too.

What do you think?

That concludes this week’s review of Financial Peace, please check back next Sunday for a quick review of the next two chapters! Grab our free RSS feed so that you don’t miss future updates.

Thanks also go out to these carnivals, for featuring our articles this week:

Amex Fixed, United Still Broken, and a Debit Card Scam

By: Jason Steele
03/06/2009

Yesterday, I wrote about how my Delta Amex sent me a brocure with links to websites offering me a free credit report as well as early access to some entertainment tickets. Unfortunately, the links did not work. Up until today.

How Great Of A Benefit Is This?

Well, I signed up for my “free credit report” and wouldn’t you know it, it is identical to the one you can get from Experian. Of course, if you agree to pay them more, you can get your report from the other two credit agencies as well. And they offer credit monitoring!

So then I tried the “Entertainment Access”. Here is essentially a bunch of links to everybody’s favorite company Ticketmaster. I didn’t go any further for fear of nausea.

United Still Broken

Yesterday, I was also venting a little about United Airlines. In addition to recommending that nobody ever do business with them, I also warned my readers never to bother with the United Credit cards offered by Chase. The reason I gave was that you always get wrong information about fees and fares from United. That is actually not even the biggest reason to avoid United like the plague.

Over at the Points Wizard, they have uncovered the real flaw in United Airlines “Mileage Plus” program, and by extension the credit cards offering “Mileage Plus” miles. They are impossible to use:

After many years of collecting United Airlines MileagePlus miles with their United Airlines Visa Card I finally called it quits and cancelled [S.I.C] it.

You ask why? How many times can you be turned down for frequent flyer [S.I.C] tickets because there are no seats available or it’s double miles or nothing?

How many times can you be turned down for Star Alliance Airlines partners FREE SEATS because there is a limit imposed by United on those as we have learned recently?

What’s the use of the Star Alliance if you can earn miles but can’t get FREE SEATS I’m specifically referring to you United Airlines (freezing seats on US Airways and Air Canada)

In addition more things to infuriate a consumer
-no first class NYC to LAX then LAX to Cabo San Lucas or NYC to San Francisco then San Francisco to Cabo
-only coach on above flights with not much time between flights. Of course nothing on partners using other cites
-no seats from gateway (US Airways- Philadelphia and United- Washington and Chicago )airports to London or Rome or back from Barcelona on an[y] United or partner itinerary without 2 stops

Why collect useless miles?

My Thoughts Exactly. Notice the numerous typographical errors in his post. These are, no doubt, effects of UDS, or United Derangement Syndrome. This is a common affliction amongst people who attempt to redeem awards from United’s program. Symtops include, irritablity, insomnia, and depression. Known cures include cutting up your United Airlines credit cards and seeking counceling with your travel agency on ways to avoid United.

Worst…..Card……Ever!

In true comicbook guy style, I came across this warning about the CapCom prepaid Visa card. I suppose the character on the card is someone from a video game, although it could be from a comic book as well. I cannot believe how many fees they tack on to this card.

Card Activation/Issuance Fee: $9.95
Monthly Maintenance Fee: $4.95 per month
Dormancy Fee (90 days after last card activity): $5.00
Administrative Fee to Close Account: $10.00
Withdrawal (in U.S.): $1.50 per withdrawal
Withdrawal (outside U.S.): $3.50 per withdrawal

Wow. The full list is here.

I can’t possibly see any reason for anyone to get a card like this. Frankly, these scams should be illegal as they are obviously preying on minor’s who do not understand all the fees involved and just think in is cool to have a card with their favorite video game character on it.

How Much Credit Is “Too Much?”

By: Mr Credit Card

Is it possible to have too much credit? Should you really keep your credit accounts open no matter what?

A reader, Sherri, had this question:

I have a few questions.

We called last November to close some of our more recently opened accounts with smaller lines of credit and decided to keep the longer open accounts with the largest available lines of credit.

Q1) Was this a smart move?

When I called Discover to close my account, I was asked if there was anything they could do to make me want to keep the account open. I said no.

Q2) What CAN they do for a customer in this situation?

I almost immediately regretted closing that Discover account, since it was opened in my name and not my husbands name.

Q3) When you are married are your credit scores tied together or is that an individual thing? Should I have kept that account open? I’ve had it since 1996.

My FICO score recently went up 23 points to 744.

Q4) Was this because the 90 days to call Discover and change my mind to keep my account open had passed and it was removed from my open accounts on my credit score? Or did something else effect my credit score increase?

We have about 15 credit cards open and thought we should close some of them. You recently posted it is better to keep credit cards open than to close them. We have approximately $200,000 available to use on credit cards. We chrge about $3000 a month and we pay it off each month.

Q5) How much credit is too much?

Thank you for your questions Sherry.

Question #1: Was It A Smart Move To Cancel Your Credit Cards?

Generally it is better to leave your credit accounts open than to close them. In your situation however, I doubt that it hurt your credit score very much, if at all.

As you said, you have other, much larger lines of credit that are going to factor into your credit score. The fewer accounts you have, the more it hurts your credit score if you close one.

Question #2: What could Discover have done to keep you as a customer?

If you had asked, they could have lowered your interest rate, removed any fees on the card (annual fees, etc.) or possibly upgraded you to a better card entirely.

That’s in theory. Those are all typical customer retention offers. As far as what leeway you had with that individual card, it really just depends on the policy of the issuing bank.

If you are concerned about closing out that account, you can always call them back and see if they will work with you to re-open the account under better terms. I’m not sure how the “90 days to change your mind” works. It definitely doesn’t affect your credit score.

It’s possibly a marketing tactic, making you think that you have a deadline. It wouldn’t hurt to call and ask about re-opening if that is what you decide you want to do, past the 90 days or not. The worst they can say is no.

Question #3: Are your credit scores tied to your spouse’s?

Yes and no. Getting married does not automatically tie your credit score to your husband’s. Only sharing joint accounts, being listed as an authorized user, or signing on a loan together will do that.

Even then, it is only for those specific accounts. If your husband makes a late payment on an account that you do not share, then it will not affect your credit score in any way.

If your Discover card was the only revolving credit account that was in your name, then you do have a problem. You will always want to keep between 1 and 3 credit accounts that have your name as the primary card holder. (Meaning that it is your credit account, and he is authorized to use it) not the other way around.

Question #4: Why Did Your Credit Score Go Up When You Closed Your Credit Accounts?

FICO scores are difficult to predict. FICO itself keeps the top secret formula under lock and key and only releases “guidelines” that we are all supposed to follow without understanding how one area could really impact another. It’s not fair, but it’s the truth.

So, the best I can do in this area is ask a couple of questions:

I really wish I could answer that more directly, But the truth is, only the people at FICO know. There’s probably a guy out there that does nothing but walk around with a top-secret briefcase handcuffed to his wrist that contains all the FICO formulas. It’s that difficult to figure out sometimes.

As far as the publicly released guidelines go, you can read about those here:

  • The FICO� Score Breakdown

    • Question #5: How Much Credit Is Too Much?

    This is an excellent question, but a tricky one. The answer is, it depends on which credit bureau the bank checks when you apply for a loan.

    I have heard of people being denied credit based off of an Experian credit report that said they had too many revolving accounts.

    The problem is, each credit bureau has it’s own credit scoring system. And each of the three bureaus uses a different system than FICO does. Which credit score lenders use is completely up to them, they can pull your FICO score, or any of your scores from the three credit bureaus.

    As far as I know, Experian is the only bureau that penalizes you for having too many revolving credit accounts (and even they don’t specify how many accounts is “too many”.)

    The best answer really is a financial one: Have as many revolving credit accounts as you can comfortably manage. Whether that number is 0, 1, 5, or 30, as long as you make your credit card payments on time and do not charge more than 30% of your available credit, then all of your credit scores should be pretty healthy.

    FICO’s recommendation is a minimum of three revolving accounts all with records of good payment. There is no maximum recommendation.

    To go along with this question, I thought you might enjoy Madison’s story. At one point she and her husband had 89 credit accounts, with over $1,000,000 in available credit. She never did get penalized on her credit score for it – in fact her score is very, very high. That might set your mind at ease a bit.

    Thanks again for your question!

    Have a question for us? Leave a comment below!

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    United, Delta, and Amex Fails

    By: Jason Steele
    03/05/2009

    Here is a story in The Consumerist that is so common, it has happened to me many times. You call United Airlines, they quote you one price/fee, they charge you another. They claim they never quoted you the price/fee, and when you ask for a refund, they claim that there is nothing they can do.

    I won’t rehash this story, as it is becoming more common that stories that begin with “Boy meets girl…”. What I will do is draw several conclusions and recommendations from this story and my other dealings with airlines, United in particular.

    Lesson 1: Never Do Business With United Airlines

    While there is nothing wrong with their safety record, just about every other aspect of that company is incredibly poorly run. You can see from this story that nobody there knows what they are doing. Their poorly trained, overseas representatives are kept in the dark about all manner of policies and procedures. Whether this is intentional or not, I don’t know and it doesn’t even really matter in the end. I would also extend this rule to include any credit card that gives you United miles, as you will just end up with a similar nightmare. Not convinced? Read more here, and here.

    Lesson 2: Never Purchase Travel With A Debit Card

    All through the article, I was wondering when they would get to the part where the author threatens a chargeback. Then they slip the bad news in:

    “I checked my Debit card statement, and noticed a $150 charge from United.”

    If he had been using a credit card he could have threatened a chargeback. With a debit card, asking Mastercard to reverse it was futile. United had his money and they weren’t giving it back. With a credit card, a chargeback threat is usually enough to get a company to back down, and a chargeback, if necessary, is much more likely to be successful. Finally, only a credit card will provide you with protection in the event that the airline goes out of business after you purchase your ticket.

    Lesson 3: Record your phone calls with the Airlines, especially when a refund is promised.

    Find a device or service that will allow you to record your telephone calls. Better yet, get any promises in writing. Ask the customer service reps to show you where the policy is written before committing yourself to a course of action where you are depending on the airline to make good on a promise. If the author had a recording of the call it would have been easier for him to convince United that they did, in fact, lie to him repeatedly. It would also be easier to obtain a refund merely by threatening to take them to small claims court.

    Lesson 4: When the airline refuses to make good on it’s commitments, go directly to the top.

    Don’t spend too much time arguing with “customer service” when it is pretty clear that they can’t or won’t fix the problem. Go directly to their head of customer service or CEO in written form, copying web sites like The Consumerist or even your Attorney General’s office. Only then was the author able to get United to do the right thing, eventually.

    Lesson 5: Never accept a voucher when you are due a refund

    I have to commend the author for not accepting a voucher. This is a sneaky way of forcing you to do business again with the company that screwed you. If I am the victim of credit card fraud, there is no way that I will accept a coupon instead of a full refund. Stand your ground and get the refund you deserve!

    New Delta Amex Benefits….NOT!

    I got this nice brochure from Delta and American express talking about how wonderful they are since they merged with Northwest Airlines. How exiting. Anyways, I noticed on the back that they claim that:

    We’ve added two new featured benefits:

    My Credit Score and Report

    complimentary access to your credit report at

    americanexpress.com/mydeltacreditreport


    Entertainment Access

    Early access to event tickets before the general public

    at americanexpress.com/entertainment

    The only problem is that, as of this writing, the links don’t work! That, and by law you are entitled to receive two free copies of your credit report each year anyways.

    Little Known American Express Platinum Benefit

    There is a little known benefit of the American Express Platinum card that I was previously unaware of . As a Platinum card holder, you are entitled to Starwood Gold status. The primary benefits are free room upgrades and late checkouts when availibility allows, as well as a priority check in desk at some locations.

    There is only one catch: You have to ask for it!

    If you are not already a member, sign up for the the Starwood Preferred Guest club (free).

    Then, call 1-888-625-4990 and mention code SN to enroll!

    Escape by Discover Card Review

    By: Mr Credit Card

    discover escape card Latest News – Discover has discontinued this card.

    The Escape by Discover&#174 Card is one of the best travel rewards card because you can earn double miles, four miles per dollar spent at Amazon.com and also has no foreign transaction fee. Read on to see if this card will work for you.

    Reward Formula – First and foremost, this is a travel rewards credit card. The unique feature of this card is that you can earn double miles for every dollar that you spend on the card. You can earn unlimited miles which never expire. Bear in mind that to keep your miles, you have to use your card for 18 consecutive months and cannot have 2 consecutive late payments.

    4 Miles Per Dollar At Amazon.com – Another thing to note about this card is that Discovered has teamed up with Amazon whereby you can earn double miles for up to $250 a month in Amazon purchases. That means that you can earn four miles per dollar spent at amazon.com because you would earn double miles normally for other purchases.

    No foreign Transaction Fees – Another great feature of this card is that since November 2011, Discover no longer charges any foreign transaction fee. Discover is accepted whereby Diners Club is accepted (most of Europe and most places in the world), in China and Japan.

    How to Redeem Miles? – This is how the rewards work. You are supposed to use the card to book any travel items, whether it be airline tickets, hotels etc. You then have to submit this expense within 90 days to Discover. Basically, 10,000 miles is worth $100 in value. Hence, unlike the reward program of the past, you have the flexibility to book any ticket with any travel agent, online or off-line. It frees you up to find the best deal for yourself. I think this is a much better deal than many frequent flier programs because you are not restricted in any way that you book your travels.

    Exchange Miles for Gift Cards – Those who are familiar with Discover know that they have the most comprehensive gift card partners (over 90 partners and now approaching 100). What is impressive about the program is that you can get more value than the number of miles you have. For example, many gift card merchants will accept 2,000 miles for a $25 gift card! Some merchants like Celebrity cruise will double the value of your gift card!

    ShopDiscover.com – Discover also has a program called shopdiscover.com with about 100 retailer partners. With other Discover Cards, you can get 5% to 20% cash back bonus is you shop through these sites from shopdiscover.com. With the Escape Card, rather than earning cash rebates or discounts, you will earn additional double miles for every dollar that you spend.

    Fees and Rates – The annual fee for this card is $60, which is actually a bargain considering that you can earn double miles for all purchases. Most airline credit cards charge an annual fee anywhere from $50 to $85 and you can only earn double miles if you book their airline ticket.

    Verdict – In the past, most credit card reward programs required you to have a set points to redeem for a specific flight in a sector. For example, you typically need 25,000 miles or points to get a free economy class return ticket within continental USA. With this system, it came with a lot of restrictions like having to book three weeks in advance, having to stay a Saturday night for example. Now, most programs have moved away from this system and instead, they let you use points with more flexibility. But you still have to book your tickets through them. For example, witi Citi, you need to use expedia.com. With Capital One, World Points and Membership Rewards, you still have to use their in-house travel agent. This could sometimes cause problems because different travel agents are given a set amount of seats and tickets by airlines and hotels. So a seat may be available elsewhere but not with the credit card issuers travel agent!

    The Escape Card solves this problem because you can book with whoever you want. It leaves you to find the best bargain and itinerary for yourself. Plus, you get to earn double miles for every purchase, which hardly any card offers.

    If you are someone who is sick of all the restrictions placed by frequent flier programs or credit card programs and like the flexibility to finding the best travel deals for yourself, then I would highly recommend the Escape by Discover&#174 Card. Furthermore, the fact that it has no foreign transaction fee and the miles you can earn from shopping at Amazon.com makes this card even more attractive.

    Household Bank Credit Card Review

    By: Mr Credit Card
    03/04/2009

    householdmastercardSummary – The Household Bank Platinum MasterCards is one of the better credit cards for those who have fair credit or even poor credit. Household Bank is actually owned by HSBC Bank, one of the largest bank in the world and Household Bank is one of the biggest players in the sub-prime space. Let us look at this card in further detail.

    How it works – Unlike most other credit card offers, Household Bank actually has 5 card offerings. You will be offered one of the four cards based on your credit worthiness. Below are details of the five cards taken from their website.

    householdbankchart

    Card Details – If you have no credit history or if your credit is poor, chances are that you will be offered a secured credit card. It has a very low APR at 7.90%, a $35 annual fee (which is waived for the first year). You have to deposit a minimum of $200 to get going for the secured credit card.

    If your credit is better, you may get a Platinum card with different fee structures. At the higher end, you may get a card with no annual fee and a 0% balance transfer offer.

    Verdict – If you have no credit or poor credit, then I think the Household Bank Platinum MasterCards is perhaps one of the best credit card to get. Most issuers who target at this segment charge outrageous fees and have ridiculously high APR. As an example, the tribute credit card from Compucredit has annual fees and monthly maintenance fees that exceed $200! And an APR of 25%!

    The Household Credit Card has reasonable fees and APR because they offer a variety of cards with different fees and APR (including a secured credit card), you are highly unlikely to be turned down for this card. This card gets my thumbs up.

    Household Bank MasterCard
    Credit Limits 100% of bank deposit, $100-$15,000 – for secured card
    Credit Agency Reporting Reports to 3 agencies
    Card Benefits
    Free Online Bill Pay
    24 hour online access to account
    Cost/Fees/Interest rates
    Annual Fees $0 to $79
    Application Fees $0 to $49 depending on the card
    Purchase APR 7.90% to 15.90%
    Grace Period 25 days
    Balance Calculation Method Average Daily Balance (including new purchases)
    Cash Advance fee 5% min $5.00 for Orchard Bank Cards
    3%, min $15.00 for
    Orchard Bank Prime Master Card
    Over-the-credit-limit fee $29.00
    Late Payment fee $29.00




    Apply for the Household Bank Platinum MasterCards

    Is Your Spouse Liable For Your Debt When You Die?

    By: Christina

    What happens to your debt after you die? Is your spouse liable for it? A reader, JWC, had this question about debt-after-death:

    I owe a substantial amount on credit cards and am trying to pay it down.

    My wife has no idea that the balance is so high as the cards are in my name only and I make the payments.

    I am 69 years old and am concerned about passing this debt to my wife in case of death before I am able to pay it off.

    Would she be responsible even though she did not co sign for the cards? Practically all of our assets are in her name.

    Assuming that she would be liable, what do you think about a term life policy to cover the debt? I am in pretty good health and should have no trouble qualifying for at least a standard rate.

    Thanks for your question JWC.

    Yes, your spouse will most likely be liable for your entire debt if you were to pass away. I say most likely because the laws in each state can vary. That is something you will have to ask an attorney in your state.

    Now, with that said, please consider the following options to resolve your situation.

    1. Term Life – Term life is a great stop-gap, but please don’t stop there. You do need to know that you’re covered in case you die before you can arrange to pay off your debt.

      Make sure your coverage amount at least provides for your current debt plus your funeral expenses.

    2. Speak with a debt negotiation expert – Debt negotiation experts can literally save you thousands of dollars and help you pay down your debt faster.

      In some cases they can reduce your debt to as little as 40% of what you owe.The downside is, they will close your credit accounts in order to negotiate.

      This will lower your credit score. It may mean that it will take a year or two for your credit to return to it’s previous number.

    3. Speak with a lawyer that specializes in estate planning – In the event that you are not able to pay down all of your debt before you pass away, an estate planner can help you protect your assets, and your wife.

      You should be able to have a free consultation with a law office in your area.

    Remember that it is never too late or too early to start planning your estate. Even if you think you don’t have much to pass on, there are a variety of ways to ensure that your assets (and your wife’s) stay in the family. An hour with a lawyer who specializes in this will set your mind at ease.

    As far as debt negotiation experts go, I highly recommend Sam Sky. We had an interview with him several weeks ago where he discussed the different debt negotiation options.

    Sam has promised that he will respond to any reader questions we send him about debt negotiation.

    You can contact him about your specific situation here. Sam will go over your options, and show you how he can help you get out from under your debt.

    How Long Can A Merchant Wait To Charge Your Credit Card?

    We had two readers, Adam and Alisha, who wondered how long a merchant can hold a transaction before charging your credit card:

    How long can a retailer wait to charge my credit card? I saw a purchase on my credit card in Feb.

    However I did not make any purchases at this store in Feb. I think my husband may have made a purchase in early to mid December, but nothing in Feb.

    I called Visa and was told that I would have to call the individual bank that issued my credit card in order to get that answer.

    I don’t know which cards you have, but in order to know for sure, just call the number that’s on the back of your credit card. Ask them how long a merchant can hold a transaction before putting it through your account.

    Also Alisha, in your situation – If you do not recognize the charge on your account, it could be a case of identity theft.

    Talk to your husband. Ask him if he remembers the charge. If he does not, then the best policy is to be careful.

    Call and cancel your card, and dispute the fraudulent charge. It really is better to be safe than sorry. Identity thieves occasionally charge a small amount to a stolen credit card – just to see if the charge goes through. If the charge does go through, they go on to use the credit card for larger amounts.

    Thanks for your questions!

    If You Pay Your Credit Card Balance In Full, Can You Negotiate?

    A reader, Sherry, asked this question:

    We will be getting some money from the sale of a house soon (but we’re practically giving the house away due to the economy).

    We owe $27,000 in credit card debt (most of it used to refurbish the house). By paying the debt in full will credit card companies give you a break, like a percent reduction in what you owe? Anything? Any advice?

    Thanks,
    Sherry

    Sherry,

    Yes, when you make a lump sum payment like that you can usually negotiate to reduce your total balance before you pay it down. However, in some states the forgiven amount is taxable, so be careful of that.

    I would definitely recommend that you speak with Sam, our resident Debt Negotiator. His company has a record of making lump-sum settlements at drastically reduced amounts. In some cases he helps people settle for less than half of the total amount they owe.

    You can ask him your questions, and find out whether or not debt negotiation can reduce your debt by filling out a short form here.

    I do not know of any way to negotiate the total debt on a credit card without closing out your credit accounts though, so be warned of that before you start.

    If you are going to do the debt negotiation yourself, make sure that you get everything in writing. Otherwise you may find that the company ends up selling that portion of your debt to a collection company, even though you made a settlement with them.

    Also, if you do the negotiations yourself (or possibly with some negotiation companies – I’m not sure about Sam’s policy) it may be necessary to go past due on your credit accounts for a least a month. This is because it’s usually only the collection department that is trained to negotiate debt.

    If you have any more question about the process, please feel free to come back and ask.

    Thanks for your question!

    Have a question for us? Leave a comment below!

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