Jim Dobrowolski, Author at Credit Liftoff

American Express Increase Credit Limit Guide

August 28, 2019 by Jim Dobrowolski Leave a Comment

American Express Increase Credit Limit Guide

It’s no secret that American Express offers a variety of attractive credit cards. In fact, most avid card users likely have an American Express card in their wallets or purses right now!

If you use an American Express card frequently, you might be interested in a credit limit increase. This can be particularly useful if you’re making a large purchase, or even just to keep your credit utilization down.

First of all, a bit of good news: requesting a credit limit increase from American Express will not result in a hard pull. That is to say, doing so won’t negatively affect your credit score.

That said, you still don’t want to request a credit limit increase without properly preparing first.

With that in mind, this short guide will tell you all you need to know to get American Express to increase your credit limit! We’ll start with some basic background information, followed up with concrete recommendations. Finally, we’ll tell you exactly how to go about doing it.

So, without further ado, let’s get started!

The Basics

American Express considers a variety of factors when it comes to offering credit limit increases.

Perhaps unsurprisingly, one of these factors is your credit score. In fact, two factors that affect your credit score are especially important. The first is credit utilization, and the second is payment history.

If your credit utilization is particularly high, that’s a red flag in the eyes of American Express. It says that you’re desperate for more credit, and therefore it could be dangerous to lend you any more money.

Your payment history is also important for a pretty obvious reason. If you haven’t been paying your bills consistently and on time, American Express likely views you as less than trustworthy. Who wants to lend money to someone they don’t trust?

Finally, American Express will also consider your income when deciding whether to increase your credit limit. Once again, the logic here is quite clear: the more money you make, the quicker you should be able to pay back your debt.

Recommendations

The easiest step to take to before requesting a credit limit increase is updating your income information with American Express. If you’re making more money now than when you opened your account, this is an especially good idea!

Next, it’s a good idea to make at least five consecutive, on-time payments before requesting a credit limit increase. In fact, this should be considered the bare minimum. Simply put, more is better.

Lastly, your account should be at least sixty days old before you request a credit limit increase. Once again, consider this the bare minimum. If you can wait six months, you’ll be in an even better position.

American Express Increase Credit Limit Guide: Final Thoughts

When you’re ready to request your credit limit increase, you can do so online or over the phone.

To do so online, log in to your American Express account and follow this link. To do so via phone, simply call (800) 528-4800.

If you’ve followed our recommendations, there’s a great chance that you’ll be approved for your credit limit increase. That said, if you’re denied, don’t fret. Keep working on improving your preparedness, and then try again once at least ninety days have passed. Remember, you can at least take solace in the fact that no hard pull means no damage to your credit score!

We sincerely wish you the best of luck as you seek to increase your credit limit. Thanks for reading!

Best Credit Cards When Traveling to China

August 21, 2019 by Jim Dobrowolski Leave a Comment

If you’re planning a trip to China, we bet that you’re excited! Whether you’re going as a tourist, a businessperson, or a student, you’re bound to have an interesting and enjoyable experience.

However, if you’re anything like us here at Credit Liftoff, there’s probably something else on your mind too. What are the best credit cards when traveling to China?

Simply put, this is a more complicated question than just choosing a top travel credit card.

In this article, we’re going to walk you through the entire topic of using credit cards in China. We’ll start with the basics, before wrapping up with some more concrete suggestions.

So, without further ado, let’s get started!

The Basics: Cash vs. Credit Cards in China

Over the past several decades, China’s economy has modernized in a major way. Massive cities such as Shanghai and Beijing are as developed as any in the West, and credit cards are accepted in most places without issue.

That being said, these global cities are not representative of China as a whole.

Throughout much of the country, and especially in rural areas, cash is still king. Whereas over two thirds of American adults have at least one credit card, only 21 percent of those in China can say the same.

This doesn’t mean that you shouldn’t bring credit cards to China, or that you shouldn’t expect to use them. It does mean that you should always have cash on you as well, in major cities but especially outside of them.

Additionally, you should always ask if a restaurant or store accepts credit cards before making any assumptions!

Now that you know the basics about cash vs. credit cards in China, let’s take a look at some general considerations about credit cards and traveling in general.

Credit Cards and Traveling

Regardless of whether you’re flying halfway across the planet or taking a day trip across the border, there are some basic considerations that you should always make when planning to use credit cards internationally.

First of all, it’s important to always look into your cards’ foreign transaction fees. Many cards will charge you a minor percentage fee for every transaction you make abroad.

Though small, these charges can quickly add up!

So, especially when you consider that many credit cards charge no foreign transaction fees at all, it’s best to choose one of these for your international trip.

Next, it’s also smart to choose a credit card that will offer you some form of travel insurance for your trip. Learn more by checking out our in-depth guide to credit card travel insurance!

Another important consideration is what sort of trip you’ll be taking. For instance, if you’re vacationing, you might be eating out at a lot of restaurants. Think about what you expect your trip expenses to be, and choose the right rewards card accordingly.

Finally, always remember to inform you credit card company before traveling abroad! The last thing you want is to have your account frozen when trying to make a payment. Avoid this problem by letting your credit card company know where you expect to be ahead of time.

Now that you’re up to speed on traveling with credit cards in general, let’s get specific about using credit cards in China.

The Specifics: Credit Cards in China

Although China has grown increasingly integrated with the global economy, it’s still uniquely cut off from it in many ways. Many American companies that are ubiquitous around the world have seriously struggled entering the Chinese market.

Major American credit card companies are no exception to this rule! Companies such as Visa and Mastercard, for example, are not as widely accepted in China as they are nearly everywhere else.

Generally speaking, the most widely accepted American credit cards in China are those offered by Discover. This is because Discover has an exclusive agreement with UnionPay, China’s only national card payment network.

Discover cards are accepted everywhere in China that UnionPay cards are accepted. Essentially, this translates to every card payment terminal in mainland China!

With this in mind, arguably the best credit card to use when traveling to China is the Discover It Miles card (stylized as the “Discover it Miles” card).

As discussed in our article covering the top travel credit cards, this card charges no foreign transaction fees. It also offers 1.5 rewards miles per dollar spent, including on purchases made abroad.

What this all adds up to is a credit card that’s not only widely accepted throughout China, but also one that will reward you financially for using it. Not a bad deal, right?

Final Thoughts

If you have a favorite credit card from a company that isn’t Discover, don’t lose hope quite yet. Especially in major cities, there are many places where Visa, Mastercard, etc. are accepted. Just don’t assume that this will always be the case! When in doubt, you can always call ahead before making any major purchases.

We hope that you found this article helpful, and that you have a great trip to China!

8 Tricks for Earning More Travel Reward Points

August 21, 2019 by Jim Dobrowolski Leave a Comment

8 Tricks for Earning More Travel Reward Points

Here at Credit Liftoff, it’s no secret that we love credit card rewards.

And of course, we’re not alone. Credit card experts of all stripes have their favorite ways to maximize returns on their spending.

When it comes to earning more travel reward points specifically, there’s more to do than just choosing a top travel credit card or one that offers solid credit card travel insurance. Today, that’s what we’re here to discuss.

What are some of the top tricks for earning more travel reward points? How can you save money on your next business trip, or make that next vacation come more quickly?

Read on for eight useful tips for squeezing every last travel reward point out of your credit cards!

1. Pay attention to sign-up bonuses

Nowadays, many credit card companies offer attractive sign-up bonuses to entice new customers to choose them over the competition.

Two great examples in the world of travel credit cards include the Capital One Venture card and the Bank of American Premium Rewards card, which we recently reviewed in comparison with one another.

Each of these cards offers a one-time bonus of 50,000 miles (or “points”) after spending $3,000 within three months. This equals a pretty substantial sum of money, more than enough for a round-trip flight to many destinations!

The two previously mentioned cards are fine options, but by no means are they the only travel cards with significant sign-up bonuses. If and when you decide to open up a new credit card, be sure to consider this angle.

2. Use your credit card for recurring expenses

For whatever reason, many people out there associate credit cards with paying for one-off expenses. They might use a credit card to pay for a nice dinner, but when they go to the grocery store, they’ll pay with a debit or in cash.

Simply put, this is a shortsighted way of going about things. In fact, there are many cards out there that reward consumers specifically for making regular, recurring purchases.

For example, the American Express Blue Cash Everyday card offers 3% cash back on groceries with no annual fee. Of course, this is a cash back card and not really a travel card per se, but you can still use that cash back to make travel-related purchases!

By using credit cards to make as many of your recurring purchases as possible, you’ll be well on your way to accumulating some serious travel reward points. Just be sure to pay off your statements in full every month!

3. Take advantage of credit card referral programs

Do you have any travel credit cards that you truly love? If so, there’s probably a good chance that your friends will love them too!

What’s more, many credit cards nowadays offer significant bonuses when you refer a friend to open an account. For example, some great referral bonuses are offered by the Southwest Airlines family of credit cards. By referring friends to open Southwest accounts, you can earn up to 50,000 bonus miles each and every year!

Simply put, you and your friends are already likely to open up multiple credit card accounts over the course of time. Why not use referral programs to make it more beneficial across the board?

4. Add authorized users

In a recent article addressing the appropriate age to obtain one’s first credit card, we discussed the possibility of adding authorized users to credit accounts. But did you know that there could be more benefits than simply building a loved one’s credit history?

Nowadays, many credit cards actually offer bonuses for adding authorized users to existing accounts. Sometimes these bonuses appear automatically, and other times they kick in after a certain amount has been spent by the new user.

Either way, as long as you trust whomever you’re authorizing to share your account, this is one of the top tricks for earning more travel reward points!

5. Consider airline credit cards

It’s no secret that there’s an incredible variety of travel reward cards out there, and not all of them are affiliated with specific airlines. If you value flexibility, you might be tempted to choose a non-affiliated travel card such as the Chase Sapphire Preferred card or the Capital One Venture card.

Does this sound like you? If so, we encourage you to at least think twice!

Although airline-specific credit cards often offer more rigid reward systems, the rewards that they do offer are often especially lucrative. If you’re a frequent flyer of a specific airline, we highly recommend investigating what sorts of travel reward their credit card could offer you.

6. Put purchases on your card and have friends pay you back

Imagine that you’re out to dinner with a handful of friends. Even at a moderately priced restaurant, a small group can easily equal a large bill!

Before offering to pay in cash or splitting the bill into parts, consider paying for everything with your credit card.

“What? Are you crazy?” We know what you might be thinking. But hear us out.

Depending on the credit card that you’re using, you could easily be receiving three travel miles or more per dollar spent on dining. Those miles quickly add up when paying off large bills!

Of course, this method only works if your friends quickly and reliably pay you back. That said, it’s certainly worth considering!

7. Always opt into bonus categories

Many credit cards with particularly high reward rates require you to opt into quarterly rewards categories. This only takes a few minutes a few times per year, but surprisingly many cardholders neglect to do it.

By making sure to always opt into bonus categories, you can easily increase your returns from 1% to 5% on many purchases. Talk about a simple trick for earning more travel reward points!

8. Churning?

Stated simply, “churning” is the process of frequently opening and closing new credit card accounts in order to take advantage of sign-up bonuses. It’s a high-risk, high-reward strategy that requires a lot of time and attention, and for most consumers, it’s probably more trouble than it’s worth.

That said, dedicated churners can accumulate some serious travel reward points! Learn more about how churning works by checking out a helpful guide at this link.

Tricks for Earning More Travel Reward Points: Final Thoughts

We hope that this article provided some interesting food for thought in terms of ways to earn more travel reward points.

By using credit cards intelligently, your next trip across the country or across the world could come much sooner than you think. Best of luck, and bon voyage!

Capital One Venture Card vs. Bank of America Premium Rewards Card

August 15, 2019 by Jim Dobrowolski Leave a Comment

Capital One Venture Card vs. Bank of America Premium Rewards Card

It’s no secret that the Capital One Venture card and the Bank of America Premium Rewards card are two of the best credit cards out there today. Whether you’re looking at travel cards specifically or rewards cards in general, they’re top options in both cases!

Of course, this raises the question, “how do you choose between two great credit cards?”

The Capital One Venture card and the Bank of America Premium Rewards card are quite similar in many ways. In fact, at first glance, it can be somewhat hard to tell exactly what sets them apart.

So, that’s where we here at Credit Liftoff come in.

In this comparative review, we’ll be helping you to figure out which of these cards is a better choice in your unique situation.

Now, without further ado, let’s get started!

The Similarities

Perhaps the most striking similarity between these two cards are their literally, exactly the same sign-up bonuses!

With either card, you’ll receive a one-time bonus of 50,000 miles (or “points”) after spending $3,000 within the first three months. That’s certainly a fair bit of spending, but it’s also a very valuable bonus.

Another clear similarity is the cards’ annual fees. Both are $95, although the Venture card waives this fee for the first year.

Neither the Venture Card nor the Premium Rewards card charges any foreign transaction fee.

Finally, both cards offer generous credit card travel insurance policies. You can learn more about what the Venture card offers in terms of travel insurance at the previous link, or discover more about the Bank of America Premium Rewards card here.

The Differences

Though both the Capital One Venture card and the Bank of America Premium Rewards card offer generous rewards systems geared toward travel, this is also where the cards are most substantially different.

To begin, the Venture card offers two miles for every dollar spent, regardless of what the money’s spent on. Meanwhile, the Premium Rewards card offers two points on all travel and dining purchases, but just 1.5 points on purchases in other categories.

The Venture card, it’s also worth noting, is currently offering a generous ten miles per dollar spent at hotels.com.

Another key difference between these two cards comes into play when it’s time to actually use those rewards points.

Whereas the Premium Rewards card doesn’t distinguish between cash back and travel rewards, the Venture card cuts redemption value in half if you choose cash back instead of using miles on travel.

Finally, the last difference worth mentioning here is that the Premium Rewards card features additional benefits for Bank of America Preferred Rewards members. It’s possible for these cardholders to earn up to 75 percent more rewards points; you can click here to learn more about how it works.

Capital One Venture Card vs. Bank of America Premium Rewards Card: Final Thoughts

So, ultimately, which of these cards is the better deal?

Generally speaking, the Venture card offers better rewards rates, but these will get cut in half if you don’t use them on travel. Meanwhile, the Premium Rewards card features slightly lower rates but treats cash back and travel rewards in the same way.

Therefore, the Venture card is better for frequent travelers and the Premium Rewards card is better for those who want more flexibility.

That being said, these are both great cards at the end of the day. Whichever you choose, you’ve made a fine decision!

MyCard2Go Prepaid Visa Card Review

August 12, 2019 by Jim Dobrowolski Leave a Comment

Mycard2go Prepaid Visa Card Review

Though we here at Credit Liftoff tend to focus primarily on credit cards, we understand that, for a variety of reasons, there are readers out there who make use of prepaid cards as well.

In fact, over the past few weeks, we’ve already taken a look at the Vanilla gift card and the various prepaid cards offered by NetSpend, for instance.

That being said, today we’re doing something different. We’re going to review the mycard2go prepaid Visa card, a German card that nonetheless can be used throughout the European Union and anywhere in the world that Visa is accepted.

Let’s begin by taking a look at one important way in which this card is different from most of the other prepaid cards we review.

Mycard2go Introduction

Because the mycard2go prepaid Visa card is German, its primary currency is the euro rather than the U.S. dollar.

That said, you can still use it while traveling abroad here in the States! Your transactions will go through at the current exchange rate, without any sort of extra work on your end.

According to the mycard2go FAQ page, the card is accepted at nearly 500,000 retailers in Germany and 44 million other points of sale around the world. Not bad if you ask us!

Mycard2go Limited Vs. Ultimate

The mycard2go prepaid Visa card is available at two different “levels.” Which you should choose depends upon how you plan to use the card.

Limited (stylized “LIMITED”) is unsurprisingly the more basic option. These cards can only be loaded with up to €100.

One potential advantage of the Limited card is the fact that you can purchase and use it anonymously; no personal information is required. If you’re worried about security for any reason, this is something to consider!

On the other hand, the Ultimate (stylized “ULTIMATE”) card can be loaded with up to €5,000 per month. It can also be used to withdraw cash from bank machines. Finally, Ultimate cardholders can send money to each other digitally via go2go transfer.

Keep in mind, however, that those who opt for the Ultimate card will have to provide their cardholder details.

Mycard2go Fees

Although the mycard2go prepaid Visa card does offer a range of convenient features, it’s worth considering that this convenience doesn’t come cheap.

First of all, there’s a €9.95 fee for the card itself. Second, if you choose to use the Ultimate card, you’ll incur an additional €9.95 annual fee.

When you top up your mycard2go via bank transfer, you’ll pay a flat fee of one euro. Meanwhile, if you do so in store, you’ll pay either that or a 4% fee, whichever is more.

Lastly, be wary about choosing the Ultimate card for the perk of ATM access. Every single time you withdraw cash, you’ll be charged a €4.95 fee. That’s in addition to whatever fee the ATM terminal decides to charge!

If there’s a positive takeaway here, it has to be this: there’s no foreign transaction fee no matter where you take this card, which is a nice bonus for frequent travelers.

Mycard2go Prepaid Visa Card Review: Final Thoughts

The mycard2go prepaid Visa card is convenient, but that convenience comes at a high price.

If you have the cash to pay all the aforementioned fees, you probably have the cash necessary to get a more traditional debit card and avoid them all together.

That said, if you’re still interested in a mycard2go prepaid Visa card, you can learn more about them by clicking here.

How Young Is Too Young for a Credit Card?

August 12, 2019 by Jim Dobrowolski Leave a Comment

How Young Is Too Young for a Credit Card?

In the United States today, one’s credit score has a serious impact on his or her life. From renting your first apartment to applying for a home mortgage, your credit score is a vital factor across the board.

Here’s something to think about: 15% of a person’s credit score is based on the length of his or her credit history. That means that the earlier you open an account, the better your score will be, right?

Well… yes and no. Taken at face value, that statement is certainly true. That being said, we also know that young people might not always be as financially responsible as they’ll hopefully become later in life.

This all raises the question, “how young is too young for a credit card?”

According to the average American, the appropriate age to get one’s first credit card is twenty-two. But is that really the case? That’s what we here at Credit Liftoff will be investigating in this article today.

Credit Cards for Minors

If you’re a minor yourself, bad news: there’s simply no legal way to open a credit account on your own. Sorry!

That being said, if you’re a parent or other guardian who’d like to get your child a head start on his or her credit journey, there is an option for you. You can add a minor as an authorized user on a credit card account that you already have.

By doing this, he or she will establish a credit file, boosted due to your good credit score. The other good news is that you’ll be able to monitor your child’s purchases, making sure that he or she is spending responsibly.

Of course, there’s also some risk. If your child makes an irresponsible purchase, you will in fact be on the hook for paying!

Credit Cards for Young Adults

If you’re between the ages of 18 and 20, you are eligible to open your own credit account. That being said, there are some strings attached.

In accordance with the Credit CARD Act of 2009, young adults must be able to demonstrate an independent stream of income in order to open an account independently.

Another option is to open an account with a co-signer who is 21 or older. In that case, he or she would have to demonstrate an income stream instead.

Once you reach 21, you’re considered a bona fide adult in the world of credit cards. No special rules apply past this point!

Final Thoughts

When it comes to establishing credit, the right age to open a credit card is as early as you can do so responsibly.

That last word is key.

The length of your credit history doesn’t matter quite as much if you miss payments or if your credit utilization is too high, both potential problems for irresponsible, young credit card users.

That being said, if you’re truly ready to use a credit card intelligently, there’s no arbitrary age that’s “too young!”

Vanilla Gift Card Review: Is This Visa Gift Card a Good Buy?

August 8, 2019 by Jim Dobrowolski Leave a Comment

Vanilla Gift Card Review

Say it’s someone’s birthday, and you’re not quite sure what to get them. Or maybe you do know what to get them, and that thing is money!

Either way, for a variety of reasons you might not prefer to give the gift of cash. Perhaps you’re worried that the recipient could lose it, or maybe you’re concerned that it would just look tacky.

Regardless of the exact situation, you might instead consider giving a Visa gift card. After all, these cards are accepted all around the country everywhere that Visa is used.

If you’ve made up your mind on a Visa gift card, perhaps you’ve come across the Vanilla gift card already?

If you’re curious as to whether purchasing one would be a smart choice, you’ve come to the right place. In this Vanilla gift card review, we here at Credit Liftoff will let you know exactly what this card is and how it works.

After that, you can decide whether the Vanilla gift card is the right choice for you.

How Gift Cards Work in General

In reality, prepaid gifts cards are actually quite simple.

You load the amount of money that you desire onto the card, and you also pay a small service fee. Once the card is activated, the recipient can use it to make purchases wherever he or she wants!

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At the same time, however, it’s important to acknowledge some critiques of the prepaid gift card model.

For example, when loading small amounts of cash onto a gift card, the fees that you end up paying easily rich into the double-digit percentage range. Some people also complain that it’s hard to use the cards down to the last cent.

Details on the Vanilla Gift Card Itself

The Vanilla gift card features different fees depending on how much money you load onto the card. The smallest denomination available is $10; that comes with a $2.95 fee. The highest denomination available is $500; the fee, in that case, is $5.95.

It’s important to consider that, when purchasing a $10 Vanilla gift card, you’re essentially paying a service fee of nearly 30%!

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Once your funds have been loaded onto the gift card, they never expire. This isn’t always the case with prepaid gift cards, so it’s a nice touch.

The card is also available to use immediately after activation, which can be convenient in certain situations.

Finally, the Vanilla gift card comes in a variety of attractive styles, which might be important to you when it comes to choosing the right card for your loved one.

You can learn more about the card by checking out www.balance.vanillagift.com/faq.

Vanilla Gift Card Review: Final Thoughts

When you break it down to pure math, purchasing the Vanilla gift card is a losing proposition. You’ll always end up paying a fee that you could have avoided completely by giving the gift of cash instead.

That said, if you’re set on giving a gift card, this is a fine option. This is primarily because Visa gift cards are so widely accepted, and also because funds loaded onto the Vanilla gift card never expire.

NetSpend FlashPay Review: What It Is and How It Works

August 8, 2019 by Jim Dobrowolski Leave a Comment

NetSpend FlashPay Review

If you or your loved ones use prepaid debit cards, you’ve likely heard of NetSpend by this point. With a nationwide network of over 130,000 locations to load cash onto your card, it’s an accessible option without a doubt!

NetSpend’s prepaid debit cards might not be the best options available on the market today, but that’s a topic for another article.

Instead, here we’re going to focus on one of the newest features offered by NetSpend. Called FlashPay, it’s essentially a way to transfer money without physical cash being present.

Interested in learning more? Then we invite you to read on through this NetSpend FlashPay review!

What Exactly Is FlashPay Anyway?

Have you ever found yourself sitting around the table after a dinner out with friends, wondering how you’re going to split the bill?

Nowadays, apps such as Venmo have become increasingly popular in situations like this. Using these apps, one person can pay the bill while everyone else sends the exact amounts of money that they owe straight to his or her digital wallet.

Talk about convenient, right? Now no one is left owing anybody else money, and you’ll never have to awkwardly remind your flaky friend that he or she still owes you those twelve dollars from two months ago.

That being said, there’s a major issue with Venmo that often gets overlooked. Simply put, if you don’t have a bank account, Venmo isn’t an option for you!

Therefore, these mobile apps overlook a substantial group of American consumers who instead rely on prepaid debit cards for their cashless transaction needs.

How exactly does FlashPay help to overcome this problem? Let’s take a look at that next.

How Does FlashPay Work? (FlashPay Setup)

Sending money with FlashPay is relatively simple.

First, you’ll need to confirm the recipient’s name as well as his or her FlashPay ID number. If he or she needs help locating this number, it’s easily found in his or her Online Account Center.

From here, you’ll log in to your own Online Account Center. Here you’ll enter the recipient’s name and FlashPay ID number, as well as the amount of money that you’d like to send. Whether the recipient is right next to you or on the other side of the country, the money will be transferred in just a few clicks.

NetSpend FlashPay App?

As of the time of writing, no FlashPay app could not be found.

NetSpend FlashPay Review: Final Verdict

If there’s one issue with the FlashPay system, it’s that only NetSpend users (plus ACE Elite, Control, and Purpose cardholders) can participate. If you’d like to send or receive cash from somebody who uses traditional banks or mobile apps such as Venmo instead, you’re simply out of luck.

That being said, for those already using NetSpend products, FlashPay is certainly a convenient way to send and receive money. There’s no good reason not to take advantage of it!

Credit Card Travel Insurance: The Ultimate Guide (Plus Top 3 Travel Cards)

August 7, 2019 by Jim Dobrowolski Leave a Comment

It comes as little surprise that we here at Credit Liftoff love credit cards, and if you’re a regular visitor to our site, it’s likely that you do too!

Offering everything from travel rewards to cashback, credit cards can be hugely beneficial as long as they’re used responsibly.

That said, there’s a frequently overlooked feature offered by many credit cards that can be hugely beneficial under the right circumstances.

That feature is credit card travel insurance, and that’s what we’re going to be taking a look at here today.

Think about your favorite credit card. There’s probably a lot that you could tell us about it. What’s your credit limit? What sort of reward system does it offer? How’s the interest rate?

These are likely all things that you could speak about without doing any research. But what could you tell us about its travel insurance plan?

If you’re like most consumers, you probably struggle to answer this question.

Simply put, credit card travel insurance is a mystery to most people, and many of us have it without knowing the first thing about how it works.

With that in mind, let’s start with the basics regarding how credit card travel insurance works in general.

From there, we’ll get more specific before finally discussing three of the best options out there when it comes to travel credit cards.

What Is Travel Insurance?

Travel insurance, at the risk of sounding flippant, is pretty much what it sounds like!

Just like health insurance covers medical necessities and homeowner’s insurance protects your place of residence, travel insurance is there to help when you have issues related to a trip.

Of course, just like these other types of insurance once again, every travel insurance policy is different.

Depending on what credit card you’re using, your exact type of travel insurance will be different (or, of course, it could be nonexistent; not every credit card offers this perk).

In the next section, we’ll briefly discuss some of the situations that your credit card travel insurance may help with.

From there, we’ll go on to discuss a number of top travel credit cards in more detail.

What Does Credit Card Travel Insurance Cover?

Once again, it’s important to emphasize the fact that not all credit card travel insurance policies will offer benefits in each and every one of these scenarios.

Before making any assumptions, it’s important to carefully verify the details of your policy!

That being said, here are some of the issues that may potentially be covered:

Trip cancellation/interruption/delay

When you book a flight or a hotel, there’s a good chance that the reservation you’re making is nonrefundable.

So what happens when a last-minute obligation leaves you homebound and unable to take that trip?

Under normal circumstances, you’d still be on the hook for some or all of those expenses.

That said, the travel insurance policies offered by certain credit cards might actually cover you in situations like this.

Meanwhile, some credit cards offer similar protections in this case of delayed travel.

If your flight is canceled and you have to stay the night in an expensive airport hotel, most airlines nowadays won’t cover the expense in full except under very specific conditions.

A good credit card travel insurance policy can help to protect you when a delayed fight leads to chaos in your travel plans.

Lost baggage or personal belongings

Have you ever experienced that sinking feeling in your stomach watching the airport baggage carousel go around and around, your suitcase never showing up?

Delayed baggage can cause serious problems on a business trip for example, and it’s rare but not totally unheard of for luggage to just disappear completely.

Although the exact details vary from card to card, many travel insurance policies offer benefits that help you to recover in situations such as these!

Travel insurance won’t make your baggage problems less of an annoyance, but it certainly can help you to mitigate the financial challenges associated with them.

Health issues and medical evacuations

Let’s be honest: there are few situations more frightening than experiencing a medical emergency far from home.

Beyond potential language barriers, isolation from loved ones, etc., you might also fear that your standard medical insurance policy won’t cover you!

That said, certain credit cards do offer insurance policies to help cover expenses in these tough times.

What’s more, some even offer medical evacuation insurance.

Depending on the exact circumstances, this may involve getting you to the nearest hospital or even getting you to a hospital back home. Either way, you’ll definitely be happy that you had it.

Theft/burglary

Whether visiting another city on a business trip or vacationing at an idyllic destination abroad, the unfortunate truth is that theft and burglary can happen absolutely anywhere.

We hope that you never experience either, but if you do, what happens next?

Without travel insurance, it becomes your responsibility to replace whatever was taken from you.

That said, some credit card travel insurance policies will cover these losses and help you to recover financially from what happened!

Once again, though we hope you never find yourself in this situation, if you do you’ll be beyond grateful for your insurance.

Rental car issues

Even when you find a great deal on a rental car, the worry still lingers in the back of your mind.

“This is a nice car,” you might think, “I really hope I don’t do something to mess it up!”

If this sounds like you, you might consider paying extra for an insurance policy from the rental car agency.

Before you do that, however, you should check to make sure that your credit card doesn’t already offer rental car insurance!

This is actually one of the most common features of credit card travel insurance policies, so there’s a pretty good chance that you may already be covered.

That said, even if you are, it’s a good idea to double-check the exact details of your policy.

Many cover damages to your own vehicle without covering liability to others, for example.

These are some of the many benefits that credit card travel insurance may cover, but it’s important to be aware that this is not a comprehensive list.

Once again, every credit card is different, and that goes even more so for the travel insurance benefits that they offer.

In the next section of our article, we’ll be taking a look at three of the top options out there today for travel credit cards.

We’ll certainly be taking travel insurance into account, but we’ll be considering other factors too. Without further ado, let’s move on!

Top 3 Travel Credit Cards

When it comes to choosing between the best travel credit cards, you certainly have a lot to consider.

Beyond the question of credit card travel insurance, you also have to think about reward systems, annual fees, and more.

Taking all this into account, here are three of the top options to consider:

Chase Sapphire Reserve

Although this card charges a very hefty annual fee of $450, for frequent travelers, it’s certainly worth it.

First of all, you receive an immediate $300 in travel credit, making the annual fee more like $150 for all intents and purposes.

Add on some serious travel perks and no foreign transaction fees, and this card looks even more appealing.

In terms of travel insurance, the Chase Sapphire Reserve card covers travel accidents up to one million dollars and offers trip delay insurance that kicks in after just six hours.

You can learn more about the specifics of what this card offers right here.

Capital One Venture

The Capital One Venture card has a lower annual fee of $95, and this is waived for the first year.

This potentially makes it less expensive to hold than the Chase Sapphire Reserve card.

As far as travel benefits go, the Capital One Venture card offers two reward miles per dollar spent, plus an impressive ten miles per dollar for hotel reservations booked through hotels.com.

Factor in travel insurance including up to $3,000 for lost luggage, and you’ve got one of the top travel credit cards available today.

Learn more about the Capital One Venture card by checking out this link.

United Explorer

Much like the Capital One Venture card, the United Explorer card charges a $95 annual fee that is waived during the first year.

Unsurprisingly, this card is best for those who frequently fly on United Airlines.

That said, however, this is one of the most versatile branded airline cards available today.

Beyond standard airline credit card benefits such as free priority boarding and checked bags, the United Explorer card offers baggage delay insurance of $100 per day as well as trip cancellation and interruption insurance up to $1,500 per passenger.

Finally, its trip delay insurance starts after twelve hours; this isn’t quite as impressive as that offered by the Chase Sapphire Reserve card, but it’s still pretty good, all things considered!

You can check out our full review of the United Explorer card here, or visit the card’s own web page for even more details on the card and how to apply for it.

That’s it for our guide to credit card travel insurance! We hope that you learned a thing or two, and bon voyage!

Chase Freedom vs. Discover It vs. Citi Double Cash: Which Is Best for Everyday Purchases?

July 31, 2019 by Jim Dobrowolski Leave a Comment

Although the world is a pretty crazy place and there’s a lot out there to worry about these days, we can at least find solace in the fact that we’re living in a golden age of cash-back credit cards, right?

The basic principle of cash-back cards is simple: when you make a purchase, a percentage of what you spend will come back to you in the form of a statement credit, a direct deposit into a bank account, or even an old-fashioned paper check sent in the mail. As opposed to the complex reward systems often offered by travel credit cards, for instance, the return of some cold, hard cash is pleasantly straightforward!

That being said, there are still some considerations to make when contemplating the huge variety of cash-back credit cards available to consumers today. Chief among them is the fact that you’ll need a good credit score at the very least in order to get approved for the most desirable cards. Generally speaking, the high 600s is considered the bare minimum; a score in the 700s is even better. If you’re not quite at this level yet, you might first consider some other cards in order to keep improving your score.

Even with a strong credit score, however, you still have to choose between the many cash-back cards out there. In this article, we’re going to look at three of the most popular choices: the Chase Freedom card, the Discover It (stylized as Discover it) card, and the Citi Double Cash card. None of these cards charges an annual fee, so it’s all about the rewards here!

So, which of these three is the best choice for you when it comes to making everyday purchases? Continue reading to find out.

But First, an Important Note…

Cash-back credit cards are an excellent way to put some money back in your pocket, but only if you use them responsibly! There are two main ways in which cash-back cards can actually hurt rather than help you financially.

First, new users of cash-back credit cards often fall into the trap of simply spending more money than they used to largely because it’s enticing to watch those cash rewards stack up. It’s important to remember that cash-back cards only return a small percentage of the money that you spend, and so you’ll never truly “make” money by making more purchases! Cash-back credit cards work best for your finances when you only make the same purchases that you would have made without them.

Additionally, cash-back cards only help you financially if you pay them off before you’re charged interest on your purchases. Even 5% cash back pales in comparison to APRs of over 20%, which is what many of these cards offer users even with good credit scores. With that in mind, we won’t be discussing interest rates in our reviews of these cards. If you’re interested in learning more about them, you can follow the links to the cards’ individual webpages located earlier in this article.

Now, on to the good stuff!

Chase Freedom Card

The Chase Freedom card (not to be confused with the Chase Freedom Unlimited card) is one of the most popular cash-back credit cards available today, and for good reason. It offers 1% cashback on every purchase that you make, as well as 5% cashback on quarterly categories that rotate every three months throughout the year.

So far this year, these categories have included:

Quarter 1: Gas stations, tolls, drug stores

Quarter 2: Home improvement stores, grocery stores

Quarter 3: Gas stations, select streaming services

Although card users have no say regarding what categories will earn this fantastic 5% cashback, you can see that these are categories that most of us spend quite a bit of money on throughout the year.

It’s important to remember that in order to receive this 5% cash-back, you have to actively enroll your card in the new offer every three months. This process takes less than a minute, but it does require you staying on top of things in regard to your credit card.

Finally, it’s also worth noting that the Chase Freedom card offers a $150 sign-on bonus if you spend $500 on purchases within three months of opening your card. This is a one-time deal, but an extra $150 is certainly nothing to sneeze at.

Discover It Card

Simply put, the Discover It card works very similarly to the Chase Freedom card. You’ll receive 1% cashback on all purchases, plus 5% cashback on categories that rotate quarterly throughout the year. Like in the case of the Chase Freedom card, you can receive this 5% cashback on up to $1,500 of spending per quarter.

So far this year, these categories have included:

Quarter 1: Grocery stores

Quarter 2: Gas stations, ride-sharing services

Quarter 3: Restaurants, PayPal

One key difference between the Discover It card and the Chase Freedom card is the sign-on bonus; the Discover It card will double all the cashback that you receive during your first year! If you spend a lot with this card, that can potentially equal a lot of money.

Citi Double Cash Card

Whereas the Chase Freedom card and the Discover It card function quite similarly, the Citi Double Cash card does something else; it offers a flat rate of 2% cashback on every purchase you make! To be more exact, you receive 1% cashback when you make a purchase and another 1% cashback when you pay your bill.

Although 2% seems less appealing than 5% at face value, these savings apply across the board, not just on certain categories. Additionally, with the Citi Double Cash card there’s no need to stay on top of things by enrolling in new categories every three months.

It’s worth noting that the Citi Double Cash card doesn’t offer a sign-on bonus, but once again, simplicity is key here!

Final Thoughts

At the end of the day, there’s no bad choice among these three cards. None of them feature any fees annual or otherwise, so if used responsibly they can all play a role in your credit card portfolio.

If you’re looking for a straightforward cash-back card that you’ll never have to think twice about, the Citi Double Cash card is arguably the best choice on the market today. If you’re serious about collecting as much cashback as possible, it might even make sense to carry all three cards! You can use the Chase Freedom card and the Discover It card to earn cashback on their respective categories, and you can then use the Citi Double Cash card for all other purchases.

All three of these cards can help your finances, as long as you’re using them responsibly. Just make sure that you’re not spending above your means and that you’re paying your bills on time!