Best Airline Credit Cards to Get You Off the Ground

Stack of traveling luggage in airport terminal and passenger plane flying over sky

Are you ready to explore the world? Whether you travel frequently for business or always look forward to your next vacation, airline credit cards are the great choice for saving on airline miles and other travel expenses is essential. You want to spend less on transportation and hotels so that you can spend more on experiences that create memories you’ll never forget.

7 Airline Credit Cards to Get You Off the Ground for Less

Airline credit cards are a subcategory of travel credit cards that allow you to earn free airline miles and other perks. They can substantially reduce the cost of travel if you fly even occasionally. You may also use your airline credit cards to book more direct flights or bump your seat up to first class. The more miles you accumulate, the more comfortable your flights may become.

Get ready to explore some of the leading airline credit cards available today! The first step to selecting a credit card is to compare credit cards online. We compiled a list of some of the most rewarding credit cards to get you started.

1. Delta SkyMiles Gold American Express Card

Delta SkyMiles Gold American Express CardDelta may become your preferred airline if you’re looking for airline credit cards that give you a variety of options to earn miles. You can earn two miles for every dollar spent at restaurants and supermarkets, and the same deal extends to all purchases with Delta. If you spend at least $10,000 on your card over the course of one calendar year, you can earn an additional $100 in-flight credits.

The Delta Gold credit card also entitles you to one free checked bag and access to priority boarding when you fly with Delta. Redeeming your points is easy because you can pay with the miles rather than waiting for credits or cash to hit your account before you can book a trip.

Pros:

  • Earn miles and flight credits
  • Earn free bag checks and priority boarding
  • Annual fee is one of the lowest offered by Delta
  • Pay with your miles

Cons:

  • $99 annual fee after the first year
  • Lowest APR is more than 16%
  • Good to excellent credit required

2. JetBlue Credit Card

JetBlue Credit CardJetBlue offers one of the most competitive airline credit cards because it allows you to earn miles for every purchase made with the card. Many cards limit your rewards miles to select purchases, but you will earn at least one mile for every dollar that you charge on this card. That makes it a great choice for an everyday credit card. You can use it for all of your daily purchases and then pay it off by the end of the month to accumulate points quickly without paying interest.

All of your JetBlue purchases will earn you three points per dollar. Purchases at restaurants and supermarkets will earn you two points per dollar spent. All other purchases are limited to one point per dollar spent.

Pros:

  • No annual fee
  • 10,000 bonus points intro offer
  • Earn points on all purchases
  • 50% off some inflight purchases

Cons:

  • Not chip enabled

3. Delta SkyMiles Blue American Express Card

Delta SkyMiles Blue American Express CardForbes recognized this card as one of the best airline credit cards for first-time airline card-holders. It allows you to earn unlimited airline miles, and they never expire. There are also no blackout dates when scheduling your rewards flights. That means you don’t have to plan your travel dates around your airline miles.

Delta requires an annual fee of $550 on some of their rewards cards, but this one requires no annual fee. Other cards may offer more lucrative rewards programs, but you have to consider that high annual fee when determining which ones will save you the most on travel.

Delta often offers thousands of bonus miles for those opening cards during promotional periods. Comparing credit card rates and rewards programs online is a great first step, but make sure to check for temporary promotions to see if you can grab some extra miles just by timing your application correctly.

Pros:

  • No annual fee
  • No blackout or expiration dates

Cons:

  • Lowest APR is over 16%
  • Excellent credit score required

4. Capital One Venture Rewards Card

Capital One Venture Rewards CardWhile Capital One requires an excellent credit score, this credit card lender is known to accept credit rates that are immediately denied by many others. The card comes with a lot of perks even though it does have a $95 annual fee that kicks in starting your second year. For starters, you can make purchases outside of the United States without any added fees.

You can also transfer earned points to other Capital One rewards programs. If you have other rewards credit cards from this lender, you may have the option of transferring points earned on those cards to your Venture cared as well, which allows you to save even more on travel expenses. All points earned on this card are redeemable for airline miles, hotel stays and a variety of additional travel expenses. That gives you more flexibility when redeeming your rewards.

You will earn two points for every dollar spent on this card. The type of purchase doesn’t matter.

Pros:

  • Earn points on every purchase
  • Earn 50,000 bonus miles
  • Annual fee waived the first year
  • No foreign transaction fees
  • Transfer points to other Capital One rewards programs

Cons:

  • Excellent credit score required
  • $95 annual fee after the first year
  • Interest rates start over 17%

5. Capital One VentureOne Rewards Card

Capital One VentureOne Rewards CardThis is the upgraded version of Capital One’s popular Venture credit card. You will need a high credit score to get approved, but the lack of an annual fee immediately saves you some money over the Venture card and many other airline credit cards. The VentureOne card also offers credit cards with low-interest rates. Interest under 15% for select consumers, which is lower than many other rewards cards.

You will earn 1.25 points for every point spent on this credit card. That’s a slight increase over the points rewarded for the Venture card. If you spend at least $1,000 in the first three months, you’ll also receive a bonus of 20,000 points. You can transfer those points to other Capital One Rewards programs as needed, allowing you to maximize savings if you have access to multiple cards from the lender.

Pros:

  • No annual fee
  • 20,000-point introductory offer
  • Starting APR under 15%
  • No foreign transaction fees

Cons:

  • Excellent credit score required

6. Alaska Airlines Signature Visa Card

Alaska Airlines Signature Visa CardIf you rarely travel alone, this is possibly one of the most lucrative airline credit cards for your wallet. It allows you to earn discounts on companion fare, so you’re not the only one who gets to fly for less. You earn this perk every year on your account anniversary, and companion fares start at $121 with no blackout dates. Your card also entitles you to a free checked bag, and up to six guests can share this perk when they check in with you.

All purchases made on this card will earn you one mile per dollar spent.  All purchases from Alaska Airlines will earn you three miles per dollar spent. When you buy day passes to airport lounges, you’ll pay half price when paying with your card, and inflight purchases are discounted by 20%. There is no limit to the number of miles you can earn, which makes this a great choice for a daily use card. Just make sure to pay your balance off each month to avoid paying interest.

Are you worried about timing your trips to take advantage of all miles earned before they expire? That madness is eliminated with this card because your miles never expire as long as your account is in active status. Your miles are redeemable with Alaska Airlines and a list of affiliated partners, including Korean Air, British Airways, and American Airlines.

Pros:

  • Earn discounts on companion airfare
  • Introductory rewards package offered
  • No foreign transaction fees
  • Miles never expire
  • Not limited to Alaska Airlines

Cons:

  • $75 annual fee
  • Miles are limited to select airlines
  • Excellent credit score required

7. Chase United Explorer Card

Chase United Explorer CardThis is one of those airline credit cards that may not seem competitive at first glance. It does require higher interest rates than some of our other top picks, but it’s still worth considering if you travel with a companion at times or want to take advantage of travel perks beyond airline miles. Not only will you receive one free checked bag each time you fly, but your companion will receive the same benefit when checking in with you.

If you spend $3,000 or more on the card within your first three months, you’ll receive 60,000 bonus miles. The card allows you to earn at least one mile for every dollar spent, and you can earn two miles per dollar for all purchases from hotels and restaurants. You need to use your card to pay for your hotel stays directly through the hotel, so purchases from travel deal websites won’t earn you the miles. Purchases from United will also earn you two miles per dollar spent.

Chase offers some travel benefits that move beyond airline miles, which may make the card’s higher interest rates and annual fee worth the bargain. For instance, you’ll receive a statement credit of $100 every four years when you use your card to cover the application fee for Global Entry or TSA Precheck. Remember, the interest rate doesn’t matter much if you pay your charges off each month. This could work as a daily use card that delivers a lot of free miles, free checked bags and other travel-related discounts.

Pros:

  • Annual fee waived for the first year
  • Intro offer worth 60,000 bonus miles
  • Companion checked bag benefits
  • Earn miles for all purchases
  • No foreign transaction fees
  • Tap-to-pay technology
  • Other travel benefits for cardholders

Cons:

  • $95 annual fee after the first year
  • Interest rates start at close to 18%

LOANRY MAKES CREDIT CARDS SHOPPING SIMPLE AND FAST

Are Airline Credit Cards Available with the Shopping Trick?

The airline credit card factors to considerThe credit card shopping trick allows you to secure fast credit card approval for store cards. While shopping with select retailers, you’ll receive a popup asking if you want to apply for a credit card. If you accept the opportunity, you may receive an offer of credit instantly. In some cases, the offer is extended without a hard pull on your credit, but that isn’t always the case. Always assume you will receive a hard inquiry and consider it a plus if you don’t with some cards.

If you have bad credit, this trick may appeal to you, but there are some downsides. The cards offered are limited to those backed by select financial institutions, namely Comenity Bank. The big retail stores that you may shop regularly may not offer credit cards with approval through pop-ups, so you may end up with credit cards that you will rarely use. You won’t find many airline credit cards offered if any.

What the shopping card trick may do for you is help you re-establish your credit so that you can qualify for the airline credit cards you do want. If you open a few credit cards through the shopping trick and then make small purchases and pay them off each month, you can boost your credit score and prove you’re a responsible credit card user. Simply having those accounts open may also increase your available credit, which can help you achieve a lower utilization rate if you don’t charge them up.

That may open the door to the most lucrative rewards credit cards, which are often offered only to those with high credit scores and limited blemishes on their credit reports.

Are Airline Credit Cards the Best Type of Rewards Card?

Airline miles are valuable rewards for making everyday purchases with a credit card, but there are other types of rewards credit cards that may make traveling more affordable and/or comfortable. If you don’t fly frequently or just want to weigh your options before applying for credit cards, you should consider a few other reward card options before making your final decisions.

Other types of rewards credit cards worth considering include:

  • Gas Credit Cards – The number of genuine gas credit cards is dwindling, but you may still find one here and there. They allow you to redeem points for free gas fill-ups, which may reduce the cost of everyday driving or cut the expense of a road trip.
  • Cashback Credit Cards – These cards allow you to earn cash without limiting what you spend it on. You may receive the cash as a credit on your statement or cash transferred to your bank account. Some cards give you the option to transfer your rewards balance to gift cards for a variety of retail stores and restaurants, which you could apply to food expenses and other supplies needed while traveling.
  • Luxury Credit Cards – Some luxury cards will give you access to VIP lounges and other upscale perks that make traveling more comfortable. If you only want to secure one rewards credit card, weigh the perks of a luxury carefully against the option to simply earn miles toward your next flight.

If you travel a lot or would travel more if it were affordable, you may secure multiple reward cards to enjoy a wider variety of benefits. One strategy is to use credit cards for everyday purchases and then pay the cards off within the same month. Instead of using money from your debit card or cash to make those purchases, you simply pay with a credit card to earn the rewards. And then use your bank account to pay it off so you don’t carry debt and pay interest.

Conclusion

Some airline credit cards have annual fees while others make it more difficult to redeem points earned. It’s important to figure out those cons before you start actively using the card. The most ideal airline credit cards will minimize fees while making the reward redemption process quick and easy. If there are too many restrictions on how you may redeem your rewards, you may never get the rewards that you worked so hard to earn.

Credit Cards for Dummies for Those That Aren’t Dummies

Searching for a credit card is a bit like trying to find the perfect outfit. It’s an intensely personal experience. In other words, the credit card you choose should be a reflection of your financial situation as well as your current credit status. If you don’t have A1 credit you can’t apply for a platinum gold Mastercard. You need to know your creditworthiness and what type of credit card you can realistically expect to be approved for.  With this being said, it’s a good idea to do your homework before you go ham and just start applying for credit. A little education about credit cards can go a long way and put you on the path to building a strong credit history if you’re proactive.

Starter Pack of Information About Credit Cards

In simple terms, credit is simply a loan. You are using a bank’s money to make purchases that you agree to pay for later. Most credit cards bill credit cardholders every month. This means that you are required to make a minimum payment on your credit card account once a month. You can carry a balance or you can pay the total balance in full. As long as you are making your minimum payments on time, your credit can grow.

However, other factors come into play, like how much you’ve spent on your credit cards and how many other credit cards you have. Although the concept of a loan is simple, other factors can make credit a little confusing.  One of the things that many young people may view as an adult rite of passage is getting a credit card. Even if you’re not a young person, choosing to start using credit, particularly if you’re new to it, can be both exciting and scary. However, it doesn’t have to be. Investing a little time in securing a fundamental understanding of how credit works are all you need. t’s important to know when you have a limited understanding of a topic.

A credit cards for dummies mindset helps you seek education before choosing a credit offer.

Let’s Dive Into the Ocean of Q&A Related to Credit Cards

Credit cards for dummies teaches the uneducated credit seeker to look at the details. You need to be careful and try to avoid credit card mistakes. We’ve learned that credit use is similar to borrowing money from a bank. In essence, that little plastic card acts as cash allowing you to make online purchases as well as purchases at stores and other retailers. The balance you create is interest-bearing, however. Most cards offer users a twenty to a thirty-day grace period. This means that if the balance is paid in full each month by the due date your purchases are interest-free.

However, you aren’t required to pay off the balance in full. You comply with the guidelines of the creditor if you pay the minimum balance by the due date every month. However, failure to male payments by your due date as well as failure to pay the minimum amount required reflects poorly on your creditworthiness and could damage your credit. Plus, you should keep in mind that the interest on your unpaid balance is growing monthly. If you’re not at least paying the minimum amount due, you could end up paying substantially more than the original amount of your purchases due to the interest that credit cards carry when balances aren’t paid in full.

Getting to the Bottom of It…

Credit can be tricky. Credit cards for dummies ideology encourages research and smart planning when it comes to credit. This is why its best to have a plan, process, and strategic approach when it comes to weeding through credit card offers. Truthfully, most sound so appealing, from cashback offers to free air miles, it can be quite confusing to navigate which credit card is worth your time. Fortunately, there are several steps that you can take to determine if a credit card is for you as well as if its al that it’s chopped up to be. As you open the letter with your credit card offer or read a new email detailing your credit card offer, your credit savvy education can come to your rescue.

There are several questions you should answer and consider to help guide your choice:

Is the credit offer unsolicited and from an unfamiliar bank?

If so, do your homework. It’s not uncommon for scam artists to craft enticing emails and letters to get your personal information. Do your research to determine the legitimacy of the offer. Credit cards for dummies explores different credit offers and focuses on teaching consumers how to choose the best credit offers for themselves.

Does the credit offer meet your needs?

If you know you need a card that offers balance transfers and a low APR, make sure that the card offer you’re considering has the elements of what you’re looking for. It may be a great card offer but if it doesn’t meet your specific needs, its not the card for you. The credit cards for dummies approach forced the consumer to become extremely personal and hyper-focused on their unique situation and whether or not a credit offer is truly for them.

Is the fee schedule clearly outlined and do you agree with the terms?

Many people don’t even look at a credit card fee schedule in detail. They may study the APR but don’t look at the nuts and bolts of an offer. This is important. Does the card charge exorbitant late fees? Are some of the fees strange or unusual? Most importantly, are you in agreement with the types of fees associated with the credit card? These are loaded questions that you must answer for yourself to proceed. People who are intimidated by numbers may shy away from understanding or even looking at the fee schedule. However, this is a mistake. You don’t want to be a dummy when it comes to your credit. Credit cards for dummies encourages education in the place of willing ignorance.

Does the card have an annual fee and how does it stack up against offers without an annual fee?

Do the math on this one. It will help you to make a decision. You can answer many financial decisions in regards to credit offers by being willing to take a close look at all the fees that come with a card. Credit cards for dummies help people that aren’t in the know learn about credit and make better choices.

If the credit card offer includes the lure of rewards, are these rewards truly relevant to you?

Many credit card offers come with the perk of reward offers attached to making certain purchases. This is an area where you need to pay close attention. If your credit card offers rewards for items or items that you don’t typically buy, it may not be worth pursuing. If you are a person who flies a lot, a card that offers free mileage as a reward for your purchases may be a useful card for you. Selecting a credit card is an intensely personal experience that should take into consideration your lifestyle, budget and spending habits, as well as your preferences. Be honest with yourself. Not all that glitters is gold. Credit cards for dummies sheds light on how valuable an offer or offers are to your unique situation and challenges you to make sober decisions.

Does the credit card offer other benefits that may be of value?

Does your credit offer mention travel protection or purchase protection? These are both examples of additional benefits that may or may not be attractive to you. Regardless, use the benefits offered to help you decide on the card, along with all the other details. These additional benefits may have a practical use for you. Consider them when choosing a credit card. Credit cards for dummies seeks to eliminate confusion and educate consumers.

Is the credit card’s payment network widely accepted?

You may receive a great credit card offer from a payment network that isn’t widely accepted. For example, Visa and Mastercard are the two most widely accepted payment networks. although Discover and other networks may still be accepted, you may run into trouble with retailers or shops that don’t accept these less popular payment networks. YOu will need to consider how this might impact your ability to use the card in the way that you want to. If you don’t plan on using the card for a wide variety of purchases, having a card with a payment network that’s not widely accepted may not be a big deal. However, as an uneducated person, credit cards for dummies encourages consumers to consider this aspect of a credit offer as well.

Does the credit card offer align with your credit score?

This is very important. You may get an American Express credit offer in the mail. However, your 460 credit score probably makes it highly unlikely that you’ll be approved for this card. Be honest and realistic with yourself. Applying for credit that you’re not eligible for only hurts you by creating an unnecessary inquiry on your credit profile. You don’t need that. Choose the credit offers you apply for wisely. Do your research. Determine the target credit score that these creditors are most likely to serve and extend credit to. If its not your credit score or tier, move on to something more appropriate for you. Credit cards for dummies push consumers to make smart educated decisions when it comes to choosing credit cards that will best serve them. All credit offers aren’t created equal and some offers are better suited for you than others.

Does the interest rate make the credit offer a practical choice for you and your spending and payment habits?

This is a big one. If you’re not one to pay off the entire balance on your credit cards monthly, you may need to ask yourself if getting a credit card with a high-interest rate is practical for you. If you’re someone who gets by making the minimum payment, you’ll be paying through the nose for your purchases if you choose a card with a high-interest rate. OCbeversley, if you’re someone who typically doesn’t carry a balance, the interest rate may not be as significant to you. This is a personal question that demands your honesty. This could be the difference between paying considerably more for an item purchased on credit or paying considerably less based on the interest rate.

Have you read ALL of the fine print?

This can be boring and tedious but it’s necessary when it comes to making an educated and informed choice about a credit offer. You will thank yourself later if you do your homework. The fine print will detail everything that will come with accepting this credit card offer. The fine print details fees, the fee schedule, benefits, and rewards, as well as a whole host of other details that you need to know if you want to be a cardholder. Consider this, you will only have to pour over the fine print once or twice to make an educated solid decision. However, the time you take to do this will be well worth it. You won’t be fooled or caught off guard. Plus, this allows you to ask any questions you may have about the credit offer before you apply.

Putting All the Pieces Together

All the questions that you consider regarding a credit card offer will help you to make a solid and informed choice about which credit cards will be best for you. It’s best to leave no stone unturned. The more you know the better. Many things aren’t readily apparent when it comes to evaluating a credit offer. This is why you should take your time and read between the lines as much as possible. You can’t go wrong by doing this. After all, this is your financial health and future that you will be impacting when you make a credit card choice. It’s best to choose well.

For example, if you need brain surgery and need to choose between two or three different surgeons, yure going to want the one that specializes in your particular kind of brain surgery and has the credits and training to show it. Right? Although credit and brain surgery are two different things, you still need to make a choice that serves you and your unique situation well.

The prons and cons of credit cards

Late Payments, Missed Payments, and Maxed Out Credit Cards

As a new credit cardholder, it’s a good idea to get a firm understanding of one thing. If you don’t make your payments on time you will tarnish your credit history. On the other hand, paying off a credit card balance on time can improve your credit score. Payment history comprises thirty-five percent of your credit score so it’s safe to assume that it’s pretty important to creditors. It’s common sense. If you loan someone money you want to know that you’re going to get it back, as promised. In essence, a credit card is a small plastic promise to pay back borrowed funds. It can help people in a pinch.

However, when it’s neglected and not handled properly, it can destroy your financial health and creditworthiness. If you miss payments, pay late, and /or use all the funds available on your credit card, you will be perceived as a credit risk if this becomes the way you handle credit in general. Be careful with your spending, honor the terms of your credit card, and pay your bill on time.

Calling All First Timers and Credit Card Newbies…

Now that you have a basic understanding of how credit works, you may be wondering how to choose and pursue the right credit card offers best suited for you. This is not difficult either. There are many tools to help you with this pursuit. You can use different tools to help you determine your best first credit card and you can also compare credit cards online. You should do both. Research and explore as much as possible because this will help you to find the credit card that is truly best for you. Loanry can help. We selecte credible credit card companies for you to consider.

Conclusion

Navigating credit card offers when you don’t know much can be a little intimidating. However, you don’t have to be intimidated if you don’t want to be. All you need is a little education and credit savvy along with the willingness to do your homework. Don’t be lazy and don’t take short cuts. Read the fine print. Research unfamiliar banks and understand the details of any credit offer before you apply. There are many tools that you can use to help guide your decisions. Many are free and most just require common sense and a willingness to pay attention to details.

 

7 Top Low Interest Credit Cards: Get the Lowdown

Credit cards are a great tool to help you gain some financial flexibility and freedom. That is a true statement only if you use them properly. When not used properly, credit cards will become your biggest nightmare. You have to start a good credit card using habits from the first moment you get a credit card. It is really hard to go back to better credit card use once you have dug yourself a hole of debt. Some of you are in the hole and are nodding your head. Others of you are wondering what in the world I am saying. Americans have $1.04 trillion in credit card debt and that continues to rise each year. According to USA Today, 60 percent of Americans pay large amounts of interest each month and cannot afford it.

Best Credit Cards with Low-Interest Rate

It is important for you to use your credit cards wisely so that you do not find yourself in the same situation as many Americans. In this article, I am going to talk a little bit about the basics of credit card use and how to stop yourself from getting out of control with debt. I am going to explain the importance of low-interest credit cards and highlight some of them for you.

When looking for low-interest credit cards, it important to remember that there are many options available to you. While a low-interest rate is super important, you still need to understand what else a particular credit card has to offer you. You may only carry a balance occasionally, so if a card gives you additional perks, you may choose one that has a slightly higher interest rate because it offers you more cash-back points. You have to look at everything the credit card is offering you.

Low-Interest Credit Card #1

Capital One Quicksilver Cash Rewards Credit CardThe first credit card with low interest on my list is the Capital One Quicksilver Cash Rewards Credit Card. This credit card has an introductory offer of 0 percent interest for 15 months. That means you are not charged any interest for 15 months, however, after that period, your interest rate goes up to anywhere between 15.74 percent to 25.74 percent, depending on your credit. Most of the time, a credit card company will not extend that 0 percent interest, but you could always ask before that period of time ends.

There are some other perks this card offers you, such as an unlimited 1.5 percent back on every single purchase you make, every single day. And there are no limitations and you do not have to enroll in it, it is automatic. There is no limit on how much you can earn and no minimum for you to cash in your cash-back. Your cash-back does not expire, so you can continue to let it grow. This card does not have an annual fee and they offer a one time bonus of $150 after you spend $500 within 3 months of opening the account. Honestly, this is my favorite credit card.

Low-Interest Credit Card #2

Discover It CardThe next card on the list of low-interest credit cards you should look at is the Discover It Cash Back card. This card comes with a variable rate of 13.49 percent to 24.49 percent. The interest rate depends on your credit score. With this card, Discover matches all the cash-back you earn in the first year. There is no limit on how much is matched. You do not have to sign up for this offer because it is automatic. You get 5 percent cash back at various places. The locations where you can receive cashback changes every quarter. You receive one percent cash-back for all other purchases. There is no limit to how much cash-back you can earn. You can redeem any amount you wish and the rewards do not expire. There is no annual fee with this card.

Low-Interest Credit Card #3

Capital One Venture One Rewards CardCapital One offers many low-interest credit cards, including the Capital One Venture One Rewards Card. This card has zero percent interest for 12 months, but then the interest rate goes up somewhere between 13.74 percent to 23.74 percent. You earn 1.25 miles for every purchase that you make every day. You earn bonus miles of 20,000 miles when you spend $1,000 on purchases within the first three months of opening your credit card account. This equals about $200 in travel money. You can travel whenever you want and you have no blackout dates. This card has no annual fee. The miles will not expire and there is no limit on how much you earn.

Low-Interest Credit Card #4

BankamericardBankAmericard is up next as one of the top low-interest credit cards. This card has an interest rate of 14.49 percent to 24.49 percent variable rate. It has an introduction rate of zero percent interest for 18 months. There is no annual fee for this card. This card does not penalize you if you make a late payment. Your interest rate does not increase with a late payment.

Low-Interest Credit Card #5

Citi Rewards CardCity Rewards + Card is another great option as one of the low-interest credit cards. This card has a zero percent interest rate for 15 months but then goes up to 14.99 percent to 24.99 percent interest. You can earn bonus points of 15,000 after spending $1,000 on purchases after three months of opening your account. When you use this card, it rounds up to the nearest 10 points every time you make a purchase. There is no limitation on points.

Low-Interest Credit Card #6

Bank of America Cash RewardsBank of America Cash Rewards credit card is next on the list of low-interest credit cards that you should consider. There is an introductory rate of zero percent interest for 15 months. After the 15 months, the rate goes up to 15.49 percent to 25.49 percent. You can earn 3 percent cash-back in a category you pick. Then you get 2 percent at grocery stores and wholesale clubs and unlimited 1 percent on all other purchases. There is not an expiration date and no annual fee.

Low-Interest Credit Card #7

Chase FreedomLast but not least, you must also check out the Chase Freedom card as one of the low-interest credit cards. This card comes with a zero percent introductory rate for 15 months. After that, the interest goes up to anywhere between 16.49 percent to 25.24 percent after that. You can earn five percent up to $1,500 in bonus categories that you choose. The categories change each quarter. You receive one percent cash back on all other purchases. Your cash-back rewards never expire and there is no minimum for redemption. This card also has no annual fee.

What Is A Credit Card?

You probably think you already know what a credit card is and how to use it. Maybe you do and maybe some of you only think of it as that piece of plastic that you carry around with you that allows you to buy items. It is important that you have a better understanding of credit cards. So, I am going to take these few moments and remind you of some credit card basics. This is also a great time to explain why low-interest credit cards are the best option.

That piece of plastic is backed by a bank, which means they are allowing you to borrow money with your promise to repay it. You are also responsible for paying any interest and fees. The bank allows you to borrow up to a certain amount of money. You can use it all at once or use only a portion of it. Any amount you use is due within 30 days. If you do not pay the amount in full, you must pay interest on the money you used but are not repaying right away. Interest is a confusing topic, so I will talk more about that later in this article.

No matter how much money you spend each month, there is always a minimum payment due. If you do not make at least the minimum payment, you are subject to fees and penalties. It can also negatively impact your credit score. You must be sure to pay at least the minimum each month. You really want to pay the entire amount each month, but many of us are unable to pay that much.

The way a credit card works is somewhat simple, as long as you have a complete understanding of it. If the credit card company extends you a credit limit of $3,000, that is how much you are able to use in any way you would like. If you use $500 of the available amount, you have $2,500 available to you. In about 30 days, you owe the credit card company $500. When you pay the full $500, you do not have any interest charges and your available balance goes back to $3,000. If you pay $300 of the $500, your available credit becomes $2,800. You are then charged interest for the other $200. This cycle continues each month.

What Is Most Important For Me To Know About Credit Cards?

There are many important items that you should know about credit cards before you starting using them. The first is, you have to remember that you are borrowing this money and you have to repay it. Another important fact is that each month the money you spent is added on to whatever you did not pay from last month. This amount adds up quickly. The better your credit score is means the better deals you can find for a credit card including low interest credit cards.

There are many different credit cards available, so it is important that you know the details about them before you pick one. You can easily compare credit cards online. Some credit cards have an annual fee, but many do not. An annual fee is a fee that you pay once a year for the credit card company to allow you to use their card. Some annual fees are incredibly high, as much as $300 or more. Some annual fees are low, around $20.

What Is Interest And How Does It Work?

Understanding interest rates and payments for your credit card is one of the most important things that you can do for yourself. Just about every credit card has some type of interest rate. Each one offers something different to each credit cardholder based on their credit score. Some credit cards offer introductory periods of zero percent interest. These periods are not forever but can be as long as 18 months. There are a number of credit cards that offer low interest and I am going to explain why that should be important to you.

There are two types of interest you are charged by the credit card company. One is called simple interest and the other is compound interest. Compound interest is when you pay interest on top of what you owe from being charged interest from the month before. This is how your credit card debt quickly gets out of control. I am going to explain this with numbers so that it may be a little easier for you to understand, but before I do that, I would like to highlight a few things.

Each credit card company decides what they are going to offer you based on your credit score. Credit card interest rates are variable, which means they change. A credit card company can change the interest rate of your credit card at any time. They do this based on your credit score. It is important that you work hard to maintain a high credit score. You can do this by paying all of your bills on time and in the amount that is due. You can also do this by working hard to keep your credit card balances low.

If you need help to find potential lenders and best credit cards, maybe we can help you. For example, our partner Fiona may offer credit card options based on your credit rating and the purpose of the card.

Back to the point, which is how interest charges work against you. These numbers are for explanation purposes only. They are not a reflection of what you may see in real life with your credit cards. I am only trying to help you understand how interest works.

Taking the scenario I mentioned earlier where you spent $500 on your credit card, but only paid $300 of it. You still owe $200 and your available balance is $2,800. This means you are charged interest on the $200. Your interest rate is 10 percent. 10 percent of $200 is $20. That $20 is added to your balance due.

$200 (still owed) + $20 (interest charges) = $220 new balance

Your available credit is now $2,780.

So the next month you spent another $300. You now owe $520 and your available credit is $2,480.

When your next bill comes, you owe $520 (remember $20 is interest from the month before).

You pay $320, so you still owe $200, which is charged 10 percent interest.

$200 (still owed) + $20 (interest charges) = $220 new balance

This continues each month that you do not pay off your credit card balance. I have given you an example with low numbers but imagine if it was thousands of dollars how quickly it could get out of control.

I do not believe that there is any card worth paying an annual fee, so I would suggest you find one that does not charge you to use it. However, there are some that offer items such as airline miles and if you travel often, this may save you a lot of money long term and make the annual fee worth it. You need to understand what perks the card gives you and balance if it is worth it.

You should understand that if you do not make your minimum payment, you are charged a fee by the credit card company. That fee can vary from company to company, but most will charge you. If you go over your available balance, the credit card charges you a fee for that, too. Credit companies must disclose all of this information to you, but you have to read the fine print to see it.

Conclusion

You learned a lot in this article about low-interest credit cards. While the interest rate is important, be sure to understand all the information about the cards you are considering. Sometimes, the card with a slightly higher interest rate gives you other perks making it a better card for you. No matter which card you select, make sure you use your credit card wisely and do not get yourself into a debt hole and you cannot dig yourself out.

Rewards Credit Cards for a Rewarding Experience

Rewards credit cards are a way to earn money back, points, or miles for your spending. You could get rewards for specific categories or you could get a flat rate for purchases. When shopping for a rewards card, you can see that the cards will vary widely in whether or not there are a sign-up bonus and annual fee, and the kind of rewards that are offered. Cash back cards may not have any annual fees but many travel cards will.

Different Types of Rewards Credit Cards

There are a number of different types of rewards credit cards, including airline loyalty cards, hotel, and cash back cards, along with gas and retail cards. About 60% of credit cards that are issued in the country are actually tied to a rewards program.

Gas

These can also be called fuel cards. This type of credit card started back in the 1920s for convenience. New rewards cards have pretty much replaced the gas credit card. However, there can still be some generous rewards for these types of cards and they only require a fair credit score to apply. If you are on the road a lot, this can be a good option for you.

Travel

There are different types of travel rewards cards, including general purpose, hotel, and airline. Some cards will reward you with an extra boost in your points through a redemption portal. This is a good option if you are okay with not traveling with a particular brand. If you choose a hotel or airline card that partners with specific brands, you can redeem your points for those brands. Since hotel partnerships are so large you are able to access hundreds of hotels in many different countries with just a single card.

Cash Back

Discover originally started the cash back program as a way to give money back at the end of the year based on the charges. This has since expanded to cards that give cash back in bank accounts, checks, and statement credits. Many cash back cards will give you a certain percentage for everything and there may be quarterly categories that give you more cash back.

Retail

This type of rewards card is tied to a department store or store brand. The cards can give high percentages of cash back for first purchases and can help you save when you shop at that store.

Luxury

If you travel often then a luxury card can be a good choice since you get access to airport lounges and concierge services.

Business

You can get cash back for business-related spending with this type of card. If you spend a lot on business items then this type of card might make sense.

Popular Credit Card Rewards Programs

There are many different types of credit card rewards programs and you are sure to find one that suits your needs.

Chase Ultimate Rewards

This is a travel portal that you can use. Chase offers two types of rewards cardschase ultimate rewards for a total of six cards. There are some with an annual fee and some without an annual fee. You can earn points through travel and dining, and for rotating categories, such as groceries, gas, and more. With the portal, you can book all types of travel, as well as enjoy redemptions for merchandise and gift cards.

American Express Membership Rewards

American Express Membership Rewards

You can use these rewards on eligible airfare, hotel stays, retail purchases, car rentals, and more. There are also eligible business purchases, such as office supplies, that can be used.

Hilton Honors

This includes other brands, such as Homewood Suites and Waldorf Astoria. You get the chance to earn points through partners for car rentals, cruises, and more. You can use the points as a gift by purchasing gift cards or treating yourself to a weekend away. Use the points toward flights, vehicle upgrades, and more.

Citi ThankYou RewardsРезултат слика за Citi ThankYou Rewards

This program is offered through a handful of Citi cards with options to redeem for travel, gift cards, electronics, merchandise, and more. Depending on the product, you can earn 1.25x points when you book travel in the same way that some of the Chase cards are structured. There are about 15 different airline partners in this program.

Wells Fargo Go Far RewardsРезултат слика за Wells Fargo Go Far Rewards

There are two ways to earn rewards with this program. You can get them by spending with a Wells Fargo credit card or by shopping on the Earn More Mall site. Unlike other programs, these rewards can’t be transferred to an airline partner. Redemptions can come in the form of cash back, statement credits, gift cards, merchandise, or travel.

Bank of America Preferred RewardsРезултат слика за Bank of America Preferred Rewards

This program works a little differently from other card issuer programs. It also rewards you for how much you keep in your Bank of American bank accounts.


Ways of Earning Credit Card Rewards

If you want to understand credit card rewards better, you need to get how they work. Choosing a credit card is much easier if you know what you are looking for. And if you know what you can gain from it. So here we go.

Understanding How Rewards Credit Cards Work with Points

Points are one of three ways to earn rewards; the others are cash back or miles. Cardholders can receive points in different ways. With these cards, you usually get at least 1 point per $1 spent on purchases. Some cards offer the same amount of points across every purchase, while others have reward categories such as restaurants, groceries, or gas that offer extra points. You can usually redeem credit card points for merchandise, cash back, gift cards, or travel.

How to Earn Points

The best way to earn credit card points is to spend responsibly for everyday purchases. While you want to utilize your credit card every month, you don’t want to exceed 30% of your credit line. Don’t overspend as a way to just get more rewards. It’s not worth the extra few points if you end up going into debt.

Day-to-Day Spending: For every dollar you spend, you get rewards. Pay attention to any special categories that could be offering you more rewards.

Initial Bonuses: Many cards allow you to get a large sum of points when you first get the card. You either have to make your first purchase or spend a certain amount of money within a certain timeframe.

Milestones: Some cards will give you some bonus points every year on the anniversary of you opening the card as a way to thank you for your continued use. Others reward you for making certain purchases per month or spending so much in a year.

Adding an Authorized User: Cards may offer you some extra points if you add an authored user. That person usually has to make a purchase or spend a certain amount before you actually get the bonus.

Referring a Friend: Some credit card issuers will reward you for bringing on new customers. You create a referral link to share with your family and friends and if those people are approved for the card then you get more points.

How to Redeem Credit Card Points

The points redemption process will differ by the credit card issuer. You would normally start by logging into your online account and then from there navigate to the rewards area. Some issuers have a separate website dedicated to reward redemption, in order to make things easier for you. You may also be able to redeem rewards through third-party sites, such as Amazon. Once you know how to redeem your rewards, you then need to decide what to spend them on.

Travel: Cards that are marketed as travel rewards cards will give you the best value for travel redemption. You will be able to trade points for hotel stays, airfare, and more. Depending on the card, you may use your points immediately when you book or you might be able to redeem points to help with your purchases after the fact.

Gift Cards: Many credit cards allow you to trade points for gift cards to various retailers.

Merchandise: You may be able to spend your points in an online shopping mall to buy products ranging from kitchenware to electronics to clothes.

Cash Back: You may also able to trade in your points for a statement credit or check in the mail. If the cards aren’t meant for cash back redemption then sometimes you won’t get as good of a value.

Loyalty Programs: Some cards let you transfer points from the card to the loyalty programs of hotels or airlines. Doing it this way can give you a better value on your redemption.

Third-Party Sites: This includes things like shopping with points on Amazon or using your points for different services, such as Uber.

Charitable Donations: You can also donate your points to charity. Usually, your points aren’t worth very much with this method and it may be better to redeem them for cash back and then handle a donation on your own.

How Do Credit Card Miles Work?

Credit card miles are a type of loyalty benefit that some credit cards give customers. The more you spend, the more miles you accumulate. The credit card issuer and airline partner define the value for each credit card mile. Once you have enough miles then you can redeem them for a seat on the partner airline. The airlines and not the credit card issuer will set the miles required for a flight. Depending on how many miles you have, you may get the flight for free or you can purchase additional miles to make up the difference. If the credit card miles are tied to the frequent flier program then you can also use the rewards to qualify for things such as free companion tickets, priority boarding and seat upgrades.

If you are a member of an airline frequent flyer program then you typically only get miles on your flights so it can take years to build up enough miles for a flight. This is why many people turn to travel rewards cards since you don’t have to fly in order to earn miles. You just have to use the card. Credit card miles can be taken away even after added to an account. For example, if you return a purchase then the miles for that purchase will be deducted from the account. You can also lose miles if you fall behind on payments or your account isn’t in good standing. And you won’t get the forfeited miles back once you bring your account back to good standing so it’s even more important to stay on top of credit card payments.

You can check how many miles you have on your recent statement or by logging into your credit card account. It can take a few days from the transaction you made for the credit to show in your account. It helps to keep track of your miles so you can protect them from theft. Thieves can gain access to your account and can also redeem your miles. If you aren’t paying attention then it can be months before you notice they are gone. Protect your miles with strong passwords, check your miles often, and notify the credit card issuer if you think there is something suspicious.

Once you have enough miles then you can redeem them. You will need to keep your schedule flexible if redeeming miles for your flight since airlines only have a certain number of rewards seats for each flight. Be sure to pay attention to any fine print if you are going to combine or transfer miles. The exact method of redeeming your miles will depend on the credit card you are using. When you purchase your flight through the credit card’s booking tool, you have the option to use your miles directly for the flight. You may also have the option to buy credit card online miles to get a discounted ticket if you don’t have enough for a free one.

How to Choose a Rewards Credit Card

When choosing between different rewards credit cards, there are some things to keep in mind.

Travel or Cash Back Rewards: Determine if you prefer a cash back or travel rewards card.

How to Earn Rewards: See how to earn the rewards and if this would make sense with your current financial plans.

How Credits Are Redeemed: See how the rewards are redeemed with the card.

Minimum Spending: Make sure that you are able to meet any minimum spending requirements to actually earn the rewards.

When choosing a card, one credit card shopping trick is to pay attention to the sign-up bonus. See if there are any additional perks, such as access to airport lounges or tickets to some special events. Annual fees will vary from one credit card to another and can range from zero to several hundred dollars. You need to see if the annual fee is going to be worth the rewards you are getting. Some cards will also waive foreign transaction fees when using your card abroad. This may make sense for you if you travel abroad a lot.

Are Rewards Credit Cards Right for You?

Here on Loanry, you can find reputable lenders and consider applying for a reward credit card with them. You can even put in your information in the form below, and get offers from lenders.

In order to qualify for the best rewards credit cards, there will be certain qualifications that you must meet. Meeting these requirements can help you decide if rewards credit cards are right for you.

Good to Excellent Credit

You have an excellent or at least good credit score to qualify for the best rewards credit cards, including travel and cash back cards. The one exception is a secured credit card, which can be used to build credit and may still be able to earn rewards.

Using a Credit Card for Everyday Purchases

If you are regularly using your credit card for everyday purchases then you might as well start earning points and other benefits for every dollar you are spending.

You Pay Your Balance in Full

It makes good financial sense to pay off your credit card balance in full every month. This is especially important for rewards credit cards that may have higher interest costs and can potentially negate the benefits of rewards cards.

You Are Loyal to a Particular Airline or Hotel

If cash back isn’t your preference you can find great travel cards with a certain airline or hotel. This can help you get points even faster by concentrating your spending with just one hotel or airline.

You Travel Regularly

If you travel frequently then you can use your regular spending to help give you points toward your next trip when you have a credit card.

Which Is Better for You?

One of the main decisions you have to make is whether or not to choose a card with miles or with cash back. When you compare credit cards online, note that comparing cash back and mile rewards can be difficult. A dollar is a dollar no matter which cash back credit card you have. However, the number of miles required for redemption will vary by credit card or frequent flier program.

Many cash back cards are simple. Even those with tiered rewards systems can be easier to navigate than the travel rewards card. In order to get the most out of a travel rewards card, you need to understand and know the difference in the rewards programs. Not only will you have to learn how to maximize the rewards and take advantage of the other perks but you also must know how to redeem rewards, including booking instructions and blackout dates.

If you are a big traveler then you can find value in travel rewards cards. If you aren’t a big traveler then many consumers find value from the versatility of cash rewards cards.

Pros and Cons of Rewards Credit Cards

If you are going to have a credit card, it makes sense to use a rewards credit card or else you could be leaving money on the table. There can be great benefits, including waived fees, accrued points, and cash back. However, if you have trouble meeting the budget and tend to overspend with a credit card then these cards may not be the best option for you.

Pros

One of the main pros is you get points, miles, or cash back. Rewards cards can offer extended warranties, shopping and travel benefits, and rental car insurance. Just with other credit cards, rewards cards can be used as a way to build your credit, as long as you pay your bill on time each month. Another benefit is the fees waived on some of the best travel cards. Many of these cards don’t have any foreign transaction fees and some even waive the annual fee for the first year.

Cons

Even with so many positives of rewards credit cards, it helps to be aware of the cons. There may be a higher credit score required in order to qualify. While it’s possible to qualify with a lower score, the cards with better rewards tend to need a higher credit score. Be sure to check the required score of a card you are interested in before you apply. Some rewards cards can cost you in time since you have to spend some time to maximize cash or points. Some travel cards also have blackout dates that can limit your choices.

If you don’t want to invest any time then there are some rewards cards with flat rates. While it’s easy to improve your score each month with on-time payments, if you aren’t careful, the cards can destroy your score if you carry high balances. You also don’t want to destroy your budget if you aren’t paying attention to your spending and are only focusing on the rewards. Interest rates on some rewards cards may be higher. If you are going to pay off your card each month then it’s not a problem but that’s not always the case.

How to Maximize Credit Card Rewards

If you are spending wisely then you can earn a lot of cash back or points when you take advantage of rewards credit cards.

Choose a Card That Gives Rewards for Your Type of Spending

If you are loyal to a certain airline then their co-branded credit card can be a good option for you. When you choose a card that rewards where you spend the most money then you can get the most rewards possible. If you don’t travel much then you won’t benefit from a travel rewards credit card. In order to figure out what you spend the most money on, go through your credit card statements from the past few years to help you pick a card that lets you maximize your rewards.

Look at the Sign-Up Bonus

Cards offer a sign-up bonus as a way to get new customers. It’s a good way to be able to quickly get lots of rewards. If a sign-up bonus looks good to you, make sure you know the terms of the bonus. To earn the bonus, you likely need to spend a specific amount of money in a specified time frame. Be sure you are able to pay off what you spend with that sign-up bonus. If you don’t then the points you accumulate may not be worth the interest you are paying. Also, note what purchases qualify for the bonus offer. Things like balance transfers may not qualify.

Use the Card for Everyday Expenses

When you use your card for everyday expenses that you were going to purchase anyway, it’s a great way to get lots of rewards. Add utility bills, grocery shopping, gas, and streaming services to your card. Since these are things you are already paying for then they are likely to fit in your monthly budget. You may even get rewards for these spending categories.

Add Authorized Users to the Account

When you add an authorized user, it can help build up your rewards. People will usually like to add family members, such as a child or spouse. You are responsible for paying off the purchases that the authorized user makes so be sure it is someone you trust.

Look for Other Opportunities

Some credit cards have revolving quarterly categories that give you more cash back. These cash back categories can include restaurants, gas stations, and rideshares. If you have one of these credit cards then try planning your spending throughout the year to get more rewards. Some rewards portals let you get more cash back if you purchase through online retailers when you link the card to their sites.

Pick Just One or Two Store Cards

During the holidays, every store you visit tries to get you to apply for its store credit card. The key to getting the most rewards is to hold back and then just have one or two cards that offer the most rewards at the stores you shop at the most.

Pay in Full

If you can’t pay in full then you aren’t getting the most out of your rewards and will be paying more in interest.

Final Thoughts

There are plenty of different rewards credit cards to choose from that can help you earn miles, cash back, or points on purchases that you make. Choosing rewards credit cards will depend on your personal financial goals. If you travel often, you may find a travel rewards card is better suited for your needs. Keep in mind that there are pros and cons to rewards credit cards, just as there are to regular credit cards. Once you choose rewards credit cards, learn more about the program and some tips and tricks to maximize your rewards.

Credit Cards for Good Credit: Insert Chip Here

I have noticed that the better your credit is, the more credit card offers seem to head your way. Also, I can always tell my credit score has risen when I get a mailbox full of “pre-approved” credit card offers. I do monitor my credit, but I do not watch it 24/7. Credit card companies must though because these companies always seem to know my credit score long before I do. Those offers are always tempting, too. They really are. It is so easy to fool yourself into thinking, “Oh, this could take care of these bills and I could breathe”, especially when it seems like you work more than you sleep or see your family.

While it is true that those credit cards can offer some relief, it is only temporary relief and it comes at a price. Like most things in life, there will be a trade-off. However, credit cards can be utilized to make your situation better than ever if you use them wisely. To do so, it is important that you know what to do, what to expect, and how to choose the best credit cards for good credit. We have you covered with the 411 on credit cards for good credit.

Should I Apply for Credit Cards with Good Credit?

The first question to ask yourself to figure this out is what exactly are you getting the card for? Do you want it to build your credit? Help out with gas in between paychecks? Have it available for emergencies? Or do you simply want to spend money you do not yet have? If the last scenario is the case, back away now. Do not add that temptation to your life. There is enough trouble already- do not add more willingly.

On the other hand, if your intentions are honorable, such as the first three scenarios, credit cards for good credit just might be a good thing for you. Do not just start applying, though. Learn what you can about them first, look for the best one, then remember and live by the reason you want the card.

Types of Credit Cards for Good Credit

You typically find two types of credit cards: secured cards and unsecured cards. Each has different requirements and different benefits.

Secured Credit Cards

Secured credit cards require that you put some type of deposit down. This might be as low as $39. Some, though, require that you put deposit your entire credit limit. Over time as you make timely payments, your deposit will usually be refunded to you.

People with good credit usually do not have to put down a deposit. In some cases, like perhaps if you do not have much credit history, you might still be required to get a secured card.  You might also be required to pay a deposit if you want a higher credit limit than they approve you for.

Unsecured Credit Cards

An unsecured card is the most likely option of credit cards for good credit. This is one area that all of your hard work to build your credit comes in handy. Many cards will still start you out on a smaller limit and increase that as you show your creditworthiness.

Remember, compare credit cards for good credit in order to find the best one for you. Everyone is different, so do not go with the first option. Shop around, see what is out there and then decide.

Understanding Credit Scores

You may be wondering what exactly your credit score means and how it is determined. There are five parts to it:

1. Payment History- 35%- This depends on how well you have paid your debts in the past and if you made the payments on time. As you can see, this accounts for a great deal of your credit.

2. Amounts Owed- 30%- How much of your available credit are you using?

3. New Credit- 10%- Opening new accounts affects your score, but not as much as other things listed here.

4. Length of Credit History- 15%- How long have you had credit?

5. Credit Mix- 10%- You should have more than one type of debt. Mix up installment loans and revolving credit, but try to have more installment loans as they have a more positive effect.

These five factors tell the lender whether it is safe to lend money to you or too risky, though they also consider other factors, such as income. The higher your credit score and better your income, the better chance you have to get credit cards for good credit. Typically, good credit is considered to be a score that ranges between 680 and 720.

Benefits of Good Credit

There is one major benefit to having good credit that all other benefits fit into. And that benefit can be summed up in one word: freedom. While you might not be able to buy anything and everything you want, good credit affords you many opportunities.

You can much more easily get a loan than those with fair or poor credit, so buying a house, car, or other desires is going to be very attainable for you. You also have a better chance of being approved for good credit cards, take better vacations, and so on. Good credit may also help your children during college years if they ever need to take out private loans. This is because good credit can get you much better interest rates than those without it.

Obviously, perfect credit- if it actually exists- is what we should strive for. However, good credit can provide you a lot more financial freedom than fair or poor credit.

But….

Though good credit opens up a lot of doors, there is a caveat. Maybe two. First, it does not matter if you have perfect credit- if you do not have an income or you have a low income, you will still face restrictions. Having a great credit score is just part of it. Lenders and credit card companies are not going to want to lend you anything if you do not have the means to repay them. Additionally, some creditors care a lot more about what is on your credit report than your score. Keep these factors in mind as you apply for credit cards.

Compare Credit Cards for Good Credit

Even if a card seems like a great one, you should never simply go with the first one you find or are offered. You should compare credit cards online to ensure that you are getting the best credit cards for good credit. Interest rates and how they are calculated are the biggest factors to consider. As you search for credit cards for good credit, you should find that you get pretty good interest rates- at least better interest rates than those with lower credit.

Still, you want to be sure you are getting the lowest interest rate possible, so compare multiple cards. You should also look for credit cards for good credit that do not charge interest until the end of the month. This gives you the chance to pay off your balance or pay it down before interest hits. Compare options here on Loanry:


What to Do If You Have Good Credit But Get Turned Down

I mentioned above that lenders want you to have more than a good credit score, so it is still possible to get turned down for credit cards and loans. It is likely that you have worked hard to achieve that credit score, so a rejection is a stab in the chest. With it comes the confusion of what you could have possibly done “wrong”. Fret not as it is actually pretty easy to figure out.

First off, you will likely receive a letter from the lender. It is an “official” rejection that will often list two or three (or more) things that likely affected the decision. You might see things such as not enough credit history, too many open accounts, and so on. With this letter comes the opportunity to request a free copy of your credit report. It is important to know that you can get a free credit report from all three major credit bureaus once a year, and every time you get rejected for credit. You do, however, have to request that copy within the specified time period. Having your credit report in hand can help you figure out what exactly is going on if you have any delinquent accounts.

Or…

As this is the digital age, though, there is a much easier and more helpful way to do this. Sign up for a free Credit Karma account or Credit Sesame account. I am most familiar with Credit Karma and love it, so I personally recommend it, though you can decide for yourself. Through Credit Karma, you can monitor your credit. It alerts you if there are any changes, giving you the opportunity to watch out for any fraudulent activity. While I love this fact, there is an aspect I love more. It is the fact that it tells you what, if any, changes you should make.

For instance, if you do not have a good credit mix, it lets you know that and tells you how to fix it. If you are using too much credit, it lets you know. This can be used as an excellent tool to build and monitor your credit. So, if you get turned down for a credit card, Credit Karma can help you figure out why.

How to Keep Good Credit

You should work as hard to keep good credit as you did to attain good credit- maybe even harder. I can say with absolute certainty that it is easier to keep good credit than to get it in the first place. Once that score goes down, it takes a lot of work to get it back up. Since you are applying for credit cards for good credit, here are some ways to make sure you keep that good credit:

Pay Your Bill Early or on Time

The early you can make a payment, the better off you are. If you charge something Tuesday on your card and get paid Friday, it is in your best interest to pay off what you charged with your Friday check. This is true for three reasons. The first is that if your credit card does not charge interest until the end of the billing cycle, you avoid that interest. Yay! The second is that doing say prevents you from being late with a payment (Score 1 for preemptive action). And the third reason is that the less you owe on your card at any given time, the lower your credit utilization (which you always want to keep under 30%).

If you cannot pay your bill early, at least pay it on time. Late payments will hurt your credit score in a heartbeat. Also, try to pay more than the minimum payment. Make every effort to pay your balance down every month so that you can keep your credit utilization where it needs to be. Again, that is less than 30%. For example, if your credit limit is $500, you should keep your balance at or below $150.

Tips for Paying Your Credit Card Bill on Time Every Month

Do Not Charge More Than You Can Afford

One of the biggest mistakes made with credit card use is charging more than you can afford to repay. This tends to be because people view credit cards as a way to buy all of that expensive stuff they want. They forget, though, that the money has to be repaid, and the balance can get out of hand very quickly.

Let’s say you purchase a $300 TV on your credit card that charges 20% interest. That would make this purchase cost you $360 to repay it, but only if you repay the full amount that month. If you do not, you will get charged an additional 20% interest on your full balance the next month, and the next, until you pay it off. If you let it continue, you could end up paying $3,000 for that $300. You probably wish you would have saved your cash for that purchase at this point, but it is too late.

A rule of thumb, I suggest- and attempt to follow- is to only charge each month what you can pay back in a month. I say attempt because there are times that it simply cannot be helped. Sometimes an illness keeps you out of work and you need to pay a bill, or there is some type of emergency.

Sometimes you have to do whatever it takes, including getting into more debt than you can afford at that moment. To be clear, though, keeping your power on is one thing. Go into ridiculous amounts of debt over a TV is a whole other ball game, and I cannot think of one reason that would justify such debt.

The only exception to this rule, in my opinion, is if you are in a 0% introductory interest rate period. Some companies offer these periods for six or twelve months as an incentive to sign up for their card. During this time, you could purchase that $300 TV without worry. As long as you paid a minimum of $50 per month on your credit card, you would have the TV paid off prior to interest being charged.

The rule still applies though: do not purchase anything with a credit card that you cannot afford to repay. In other words, a 0% interest rate period is not an excuse to go out and spend $5,000 unless you know you can pay off that $5,000 during that period.

Use Only When Necessary

In truth, it is best to only use your credit card when you actually need to. If you can only swipe it when there is no other choice, you will save yourself a ton of interest. Again, shopping sprees are not  necessary. Necessary means that you will somehow suffer in an intolerable way if it does not happen, like going hungry or not having running water. Even when it does not seem like it, I promise that you can tolerate going without impulse purchases or splurges.

Protect Your Credit Card Information

A very important way to protect your credit score is to protect your credit card information. Nothing can destroy your credit as quickly as an identity thief can. How, though, can we do this? I will be honest and tell you that your information is never 100% safe online. There are some very talented hackers out there that put their skills to bad use and can find whatever they want. While this is true, there is something else to consider.  If you were hungry and standing in front of two refrigerators, one locked down like Fort Knox and the other standing wide open, which would you choose to find some food?

Unless you are a renegade, Robert Frost facing the road less traveled, or Pocahontas wondering what’s around the river bend, you will probably take the path of least resistance and choose the unlocked fridge. That’s kind of how identity thieves roll. Yes, they could put the effort into breaking into locked down accounts, but why would they want to? There are so many accounts wide open for the taking. Obviously, nothing is a guarantee. But I have found that the more protection you put into place, the less likely the chance of theft. Here are a few very simple ways to add tons of protection:

1. Watch the Websites You Purchase From

First and foremost, be careful with which sites you make purchases on. Here is a scary fact: hackers can actually mirror other websites and set up fraudulent ones. This means that when you put your card information into those sites, you have literally just given them free access. So how do you know if a site is safe? Take a look at the web address bar. If you see a little lock there, you are good to go. Also, do not purchase from websites that you are not familiar with or that you cannot check out for customer reviews and such.

2. Use Prepaid Cards

Another very safe way to make online purchases is to use a prepaid card to do so, and by this I mean one of those that does not require you to load it from your bank account. If you wish to make a purchase or pay a bill, load the cash onto the card. This one does require a little more work, but if you do not do much business online, you should be okay.

3. Use a VPN

If you have never heard of a VPN, or virtual private network, you are about to get some incredibly valuable information. Have you seen the movie Black Panther? If not, what are you waiting for? Marvel movies are awesome (yes, I am a big fan).

Anyway, in the very exciting Black Panther movie, Wakanda has a shield. And it is covered to the extent that if you do not know it is there, you are not going to find it. Between the reflective dome and the dense foliage, I am not sure that even if I lived there I could find it. It is that well hidden.

This is kind of what a VPN does for your online presence. It shields you, your activity, your information, and more from everyone- even your cable provider. Can a hacker bypass it? Sure, but, like Wakanda visitors, hackers would have to know that the information is there to hack it.

There are a lot of VPN options, but my favorite is SurfShark. I am not going to go into a sales pitch- you can check out their website to compare it to others. But I will say though that the benefit of the SurfShark VPN is that for about $2 per month, you can download it to an unlimited number of devices, so you can cover your entire family. I have yet to find another that covers that much for such a low price.

4. Monitor Your Credit

Monitoring your credit usually means seeing a charge after it is made, so you are not really preventing the fraud. However, the quicker you spot issues, the quicker you can get the ball rolling and fix it.

5. Freeze Your Credit and Your Card

Again, there are no guarantees, but freezing your stuff is as close to perfect identity protection as you can get. For a few years now, many banks and credit card companies have allowed their users to freeze their cards through their apps and websites if the card is lost. This is great because you do not have to immediately cancel the card. (A major frustration when you find the card at the bottom of your purse or in the wrong pocket of your wallet the next day.) You can just as easily unlock the card if you find it.

Lately, though, thanks to all of the website hacks and data breaches that have been going on, you can actually freeze your entire credit. This means that no one, including you, can apply for credit or run a hard check on it. You have to go back in with your password to unfreeze it first.

I decided to do this recently because I did not want anything unauthorized to show up on my account. Not only have I not had any alerts of suspicious activities, but it has actually helped my credit score. When I consider applying for something, I know that I have to go through a process to unfreeze my credit. It gives me time to think through what I am doing. For about three months now, I have not found a thing worth that effort. Since no one has been running hard checks on my credit, my credit score has improved.

Check For Free Identity Theft Protection

Some banks and credit card companies actually provide free identity theft protection. If you are looking for credit cards for good credit, or if you have one already, check with your company to see if you have this.

Conclusion

If you are ready to take the plunge and shop for credit cards for good credit, be sure you are ready to commit some time to compare a few. For those considering a credit card simply to pay off other credit cards, consider a personal installment loan instead as they typically have lower interest and better repayment terms. Regardless of the direction you choose to take, be sure to understand the terms and conditions you are signing up for and make a plan to keep yourself from racking up too much credit card.

How to Find Credit Cards for Borrowers with Bad Credit

Being in debt is one of the worst fears many people have because of the negative consequences it has on their reputation. Besides being listed in financial institutions as an unfortunate debtor, you are unlikely to get access to loans to sort out your financial goals. To make matters worse, you may have made the wrong financial decisions to have led to bad debt. Still, there comes the point where you will need a loan despite having a bad debt record. Getting yourself out of such a mess can be daunting, especially if you don’t have access to professional financial advisors. The good news is, you can still get good credit cards for bad credit from credit card companies.

How to Apply for Credit Cards for People with Bad Credit

Credits cards for bad credit scorers are quite many, but they come with conditions. You need to apply using the following steps:

Being Familiar with Your Credit Score

If you keep receiving rejection alerts after applying for a credit card, it means your score is 580 and below. You will be tempted to make multiple card applications, only to realize the negative effects they have on your score. Avoid this at all costs.

Find a Card That Is Compatible to Your Score

Accepting your current credit score is the first step towards healing. Most lenders already have a credit card comparison chart that shows the type of credit you will need to qualify. You can log into selected sites with your free score to determine where it lands on the graph. You can also compare it to the recommended range. That way, you will avoid risking your credit score further.

Another thing you can do is fill out the form below and you can get offers within seconds. These offers are unique for your situation so we will connect you to companies from which you have a chance of getting a credit card. Start here:


Submit Your Application

After matching your credit score with your credit card of interest, it is time to hit the “apply button”. You will need to prove your full names, home address, phone contact, and email address. Some lenders may also request for proof of income and your social security number.

Provide Your Security Deposit

Lenders that issue secured cards may require you to provide your security deposit. On average, you will need to part with $200 to $300 to secure your card. So, if you deposit let’s say $1,000, you will enjoy a credit limit of $1,000. They will also recommend a preferable repayment method to help you secure your card.

Wait for Your Card

You can only secure a credit card upon approval by your potential lender. Once you get it, you can improve your credit score by using it immediately. Always ensure you repay your debts before the due date to avoid lowering your score.

The Conditions Credit Card Companies Set for Borrowers with Bad Credit

Having a reputation for bad credit does restrict you from accessing or to compare credit cards online. However, you need to understand the pros and cons of obtaining a credit card to sort your financial situations. You will come across plenty of credit card companies that are willing to issue one at a reasonable rate. While this may seem convenient, you need to be familiar with most terms and conditions they are setting. Here are some of them;

Credit Score

A credit score is a rating tool that determines your credit history after exploring many options. Some companies may use the following parameters to assess it.

Credit Rating

A credit card company can easily judge your ability to pay off debts after evaluating your history. In most cases, you will have higher chances of getting one for having a good reputation. If you are a diligent debtor that honors the terms of payment, then you have higher chances of receiving an approval. It means you can pay your dues in full, and on time. Your record is available in the database of your previous lender or credit reporting companies, so retrieving it shouldn’t be hard.

An Excellent or Good Credit Score

Your potential lender can determine whether you have a good or excellent credit score. For instance, if your rating ranges between 670 and 740, then you are a good credit scorer. If it goes above this, then you are an excellent credit scorer. At this point, you are able to pay off your bad credit from your income without breaking a sweat. Your lender will also assess your monthly income to determine how disciplined you are when paying your debt. More so, it may reward you with bonuses for honoring your promises.

Fair Credit Score

If your credit score is between 580 & 669, you are an average credit scorer. Of course, you can still apply for credit cards with hopes of getting good feedback. However, your lender may decline your request depending on their policies. Being in this category means you may have failed to honor your payments in full, in the past 24 months. It gets worse when the bad debt has accumulated to higher amounts, prompting the disapproval from your potential lender.

Bad Credit Score

A score of 580 and below is termed as a bad credit score. If you fall under this category, it means you have failed to honor your credit obligations. At this point, you keep getting alerts to honor your debts from your previous lenders. As a result, the credit bureau will list you as a bad debtor to warn other credit card companies from conducting businesses with you. Your chances of getting an approval from your lender are quite low.

Being listed as a debtor with bad credit has limitations. You may have failed to meet your obligations after being declared bankrupt or after getting reports from debt collectors. It is normal to find yourself in this predicament, which is why you should remove yourself from this category as soon as you can.

The shortcomings that come with a bad credit history are quite many. You will be turned away by many lenders because you are a credit risk. If you are lucky to get a positive response, then you will need to honor special terms. Some of them may offer a secured card which requires you to deposit a specific amount just in case you bail out on them. Still, this doesn’t guarantee an approval even if you place a deposit.

In your quest, you may come across lenders who are quick to offer unsecured credit cards for people with bad credit. The terms and conditions they may set may seem unrealistic. Do due diligence to avoid regretting in future, before applying for one.

Zero Credit Score

Some lenders may receive credit card requests from people who have zero credit score. Potential lenders may honor their requests after examining all the odds.

Things that Can Affect Your Credit Score

Having a bad credit score not only taints your image as a borrower, but it also limits your chances of acquiring the best credit card to get with bad credit. Here are some things that can affect your credit score:

Defaulting on Payments

You may be facing inevitable financial challenges that could lead you to a bad credit score. Your lender will rate you based on your financial history for the past 7-10 years. If it falls anywhere below 580, you will find it hard accessing loans in future.

How You Use Your Credit

When applying for a loan from banks or credit unions, you will need to state your reasons. If you are lucky to land one, ensure you fulfil the purpose of the loan. Because it takes up to 30% of your score, you will need to avoid over-utilizing your credit cards. This will save you the heartache of explain why you failed to keep your promises.

Filing Bankruptcy

Most people who are in deep financial debts are quick to file for bankruptcy to avoid getting a bad record. Well, it is one of the best ways to ensure you retain your assets, but your chances of landing loans will be limited. At that moment, you may fail to see the harsh consequences it will have on your credit score. Remember, credit bureaus will retain your record for use against you in future. You can only declare bankruptcy when your situation goes out of hand.

Deed-In-Lieu

You lender may require you to submit your title deed or car log book as collateral in case you default your payment. Failure to pay your loan can lead to automatic confiscation of your property. If they resell your property to service the loan, you risk losing up to 125 points. This can damage your history as a borrower who looks forward to attaining a good or excellent credit score.

It is possible to rethink your decision of repaying your loan at less than what you had requested from the creditor. This can make you lose up to 125 points as a creditor.

Like any other reporting tool, credit bureaus can make errors. To avoid being listed as a bad debtor, always make regular checks on your credit history. Correcting the errors in good time will prevent you from getting a score you never thought of having.

Being a guarantor to a borrower with a good credit score can boost yours as well. It means you are responsible for the financial decisions they make. If the latter happens, you will have a hard time boosting your scores.

Personal Loans for People with Bad Credit

Being in the list of people with bad credit is not only demotivating, but it also takes a toll on your mental wellbeing. Worse still, you risk getting rejected by many financial borrowers. Now, you are left with one more option; applying for a personal loan. This option sounds good, but it can be a drop in the ocean if you don’t examine the benefits and shortcomings.

The Benefits

Zero Collateral Risk

Most financial borrowers require you to present a fixed asset as security for your loan. It is easy to lose your priced property for failing to pay off debt. Fortunately, you can still get a personal loan after proving that you have a good job. This gives you the chance to retain your assets because you have the ability to pay off your loan.

Duration to Clear Your Debt

Have you have ever found yourself in a situation where you are unable to pay your bills on time? Obtaining a personal loan can be good for you. Unlike other institutions, your personal lender may give you a grace period of one or three years to repay your loan. Always remember to clear your debts within that period to prove your credit worthiness.

Risk-free

Taking a loan from a borrower is easy, until you fail to use it accordingly. If you take a mortgage loan and fail to honor it, you will be face fraud charges. Getting a bad reputation for failing to repay your loan isn’t the only thing you should be worried about. A possible jail term is the last thing you want to face even in your current state. To prevent this from happening, you will need a personal loan for people with bad credit.

Improved Credit Score

Being an excellent credit scorer even if you are obtaining a personal loan can make a good impact on your history. Credit bureaus will assess your history based on many credit accounts under your name. If it proves that you are an excellent credit scorer, then your personal lender won’t have a problem with you. When your credit score is over 750, you will have the chance to obtain more at a good interest.

Helps You Set Up An Emergency Fund

You have so many bills on your hands that you hardly find some money to save for a rainy day. Personal loans allow you to establish an emergency fund to help you meet your future financial obligations.

Fewer Paperwork

Before obtaining a loan, you will need to present relevant documents. These lending institutions want to know you in person before offering the loan. A person lender, on the other hand, may only require your picture ID, proof on income, and your bank account number to process your loan. If you are the type of person that hates paperwork, personal loans could be the best option.

 Little-to-no Hidden Charges

You may have come across lenders with enticing loan requirements, only to realise the hefty hidden charges. Of course, the interest accumulates after a specific period, but it is important that they should let you know before offering their loan. Personal loans for people with bad credit come in handy in such situations. They will only require you to pay the interest rate, then let you off the hook after paying in full.

Zero Penalties

Most lenders don’t like the idea of servicing your loan before the due date. They may penalize you for this. But with personal lenders, you can pay off your debt early.

The Shortcomings

While personal lending may seem like a perfect solution for people with bad credit, it comes with specific shortcomings including:

Debt Consolidation

After being listed as a credit risk, you will be tempted to borrow a personal loan to offset your payment. In the end, you are likely to become a financial wreck because you will be compelled to repeat the same mistakes you made in the past. You are probably gambling with varying interest rates, which is why you need to get yourself out of it. Try deactivating your credit cards once and for all.

Limited Access to Bigger Loans

Your credit reputation is at stake because you have failed to meet the credit card requirements. Your personal lender may not trust you with bigger loans even if your credit scores keep improving.

Higher Origination Fees

Once you submit a loan request, the lender may ask you to pay between 1-10% fees to process your loan. Expect to pay a higher origination fee if you fall in the category of bad credit score. Remember, this only applies to specific credit card companies.

Submitting Full Payments

With personal loans, you will need to pay the full amount before it is due.

Understanding Personal Loan Interest Rates

Did you know that personal loan interest rates keep changing each year? Well, understanding the rates will determine your creditworthiness, the due date, the amount, and the lender’s policies. Currently, the loan interest rate ranges between 10% and 28%. Here are a few facts you will need to consider before applying for a credit card for people with bad credit:

By Lender

Generally, lenders charge different interest rates on unsecured loans after assessing specific facts on your profile. The standard rate falls between 5% and 36%, though leading financial institutions may offer competitive rates. Still, you can access other personal lenders who accept people with bad credit score. Understanding the relationship between the interest rate and the lender’s policies will help you gauge yourself.

By Credit Score

Credit score is one of the biggest determinant of annual percentage rate on unsecured personal loans. If you fall under an excellent credit score category, you will enjoy lower interest rates (usually between 10% and 12). To be on the safe side, you can apply for a 0% transfer credit as opposed to a personal loan to evade charges on interest.

If you are an average credit scorer (less than 580), you will be charged a higher interest rate between 18% and 36%. Worse still, you may fail to qualify for the conventional personal loan because of your bad credit scores. It does not go without saying you can still achieve APRs as high as 100%. You can imagine your recurring bad debt situation that never seems to end. It is advisable to request for a personal loan from a local credit union or a non-profit lending institution to save you the heartache of endless debt.

A Good Interest Rate vs a Bad Interest Rate

Interest rates on personal loans may be good or bad depending on the purpose it will serve, the balance, and the duration. Because you are approaching different lenders, you need to be prepared for varying personal loan rates. On average, a lending institution may a loan range between 10% and 28%. If it is higher than that, it is a bad interest rate. Servicing the loan with interest may seem difficult if you receive higher rates.

One way of avoiding a bad interest rate is by improving your credit score. Approach different lenders and find ways to service your loan to maintain a good record. Remember, they can only lower the rates if you prove that you are credit-worthy.

Extra Pointers that Affect Your Personal Loan Interest Rate

Debt to Income RatioDebt to income ratio infographic

Debt to income ratio is the percentage you incur after calculating the pre-tax your monthly income. For instance, if your pre-tax monthly income is $6,000, and your debt payments are $1,200 per month, your DTI will be 50%. A lower DTI ranging between 45% and 35% is better than 50%. Lenders may view a DTI of 50% badly because you are likely to default your loan repayment.

The Length of the Amount of Loan

Generally, higher loans with lengthy terms attract higher annual percentage rates. Your chances of repaying the loans over a long period of time are limited, especially when you are the type of person with bad credit. Offering a higher amount puts you in a higher risk of defaulting even if your monthly income proves otherwise. Moreover, they attract higher APRs than short-term loans.

Credit History for the Past Two Years

As expected, your lender will consider other factors before tailoring their loan interest rate. Your credit score is the primary tool they will use to determine your ability to repay your loan. You will meet lenders with strict credit restrictions because of your credit score. If you have received are negative credit scores in the recent past, you will have limited chances of getting a good interest rate.

Current Employment Status

Unlike some institutions, personal lenders depend on your monthly income or household income to determine your rate of interest. It calculate your ability to pay based on the tax returns, pay stubs, or other parameters. The minimum annual income for an average borrower ranges from $20,000 to $40,000.

Conclusion

Being listed under people with bad credit isn’t the end of the world. You can still access good credit cards only if you meet specific requirements. Of course, this cannot happen overnight. You will need to evaluate what led you to the credit problems you are currently facing. Once you have identified the cause of your financial mess, you can work on improving your credit score. Be conversant with the credit history records in order to come with the best financial decision. Understanding the financial implications of your action will save you from making similar mistakes in future. Remember, many people have gone through this, and come out stronger than they were. Why not you