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Top 10 Travel Credit Cards For 2019 (and Beyond)

July 20, 2019 by Austin Meadows Leave a Comment

If you are reading this guide, chances are you like to travel! And if you do like to tour the world, you surely know that making smart financial choices can make travel easier, cheaper and ultimately more enjoyable. One very important decision you can make is selecting a good credit card for traveling. This guide will help by listing the best travel credit cards of 2019, and explaining how to choose the right one for you.

Even if you are someone who doesn’t usually use credit cards, it’s still worthwhile to get one for your upcoming trip. The benefits of the top options include travel perks like airport lounge access, no foreign transaction fees, and lucrative rewards on travel related purchases. Keep reading to help find the best option for you!

Choosing the Best Travel Credit Card

Selecting the best travel credit card is going to be an individual process for each consumer. The most important questions to keep in mind when you review our top picks include the following:

How often do you travel?
Are you willing to pay an annual fee?
Is there a particular airline you prefer to travel with?
Do you travel internationally or domestic?
Do you have a good credit score? (Many premium travel cards require good to great credit)

Keep this in mind as we go through our list of the top travel credit cards for 2019. It is important to note that none of these credit cards charge foreign transaction fees and this will not be commented on individually for each card.

10. Delta Gold Card

Earn 30,000 miles with new customer sign up offer (after spending $1,000 on the card in the first 3 months)
Earn a $50 credit after making a Delta purchase in the first 3 months
Annual fee of $95, waived the first year
The first bag checked free with Delta

Pros: The Delta Gold Card offers a great sign up bonus for Delta Customers and a waived annual fee for the first year.

Cons: Delta miles are reported to have slightly less value than competing airlines which ranks it as slightly less valuable. This card also has a $95 annual fee after the first year.

Who this card is best for: For travelers who regularly travel with Delta, this card will be a winner due to the signup bonus and free checked bag.

Read our write up about the Delta Gold Card and maximizing your bonus offer for more information about this credit card!

9. Discover IT Miles Card

Earn unlimited 1.5x miles on all purchases
0% introductory interest rate for 14 months
Free FICO credit score
All rewards earned in the first year are doubled
No annual fee (one of the best no annual fee travel credit cards)

Pros: The Discover IT Miles Card has no purchase categories, which means every purchase you make is eligible for 1.5 miles. Discover will match your first-year bonus miles at a 100% rate. That means that every mile you earn in the first 12 months will be doubled!

Cons: No signup bonus (beyond the first-year doubling)

Who this card is best for: Consumers who are looking for a straightforward, no annual fee travel card will love the Discover IT.

8. Bank of American Premium Rewards

50,000 bonus point sign up offer (after spending $3,000 in the first 3 months)
2 points for each dollar spent on travel and dining
1.5 points for all other purchases
FICO Score
TSA/Global Entry Credit
$100 airline incidental credit

Pros: The Bank of American Premium Rewards Card allows cardholders to earn an even bigger rewards rate as a Bank of America preferred client (25-75% more depending on your tier). You can also use rewards for statement credit if you are not interested in spending on travel.

Cons: This card charges an annual fee of $95 and is only available for existing Bank of America clients.

Who this card is best for: This card will be best suited for Bank of America preferred clients who want to earn big reward rates.

7. Citi Premier Card

60,000 bonus point sign up offer (after spending $4,000 in the first 3 months)
3x points travel and gas 2x points dining and entertainment
25% bonus when booking through ThankYou Travel Center
Point transfers available for partner airline programs

Pros: The Citi Premier Card provides an excellent signup bonus with the ability to earn additional value from rewards when you book travel with The ThankYou Travel Center. Rewards points have flexible uses.

Cons: The annual fee comes in at $95 for this credit card.

Who this card is best for: This card is great for anyone looking for a generous signup bonus and high reward rates. The card will appeal to customers who don’t mind bucking up a modest annual fee.

6. American Airlines AAdvantage Platinum Select

50,000 mile signup bonus (after spending $2500 in the first 3 months)
The annual fee is waived for the first year
The first bag is checked free for the cardholder and up to 4 companions
Preferred boarding with American Airlines
2x miles for gas, dining and AA charges

Pros: The American Airlines AAdvantage Platinum Select offers a great sign up bonus that will easily cover substantial travel with American Airlines. Customers who make this their daily spending card can earn an additional $125 AA credit when they spend $20,000 annually.

Cons: This card has a $99 annual fee after the first year (waived for year one).

Who this card is best for: This card is ideal for frequent American Airline Travelers who are looking to make this their daily spending card.

5. United Mileage Plus Explorer Card

40,000 bonus mile signup bonus (after spending $2,000 in the first 3 months)
2x points with United, dining and hotels and 1x for all else
Free checked bag for cardholder and companion with United
Global Entry/TSA Pre-check credit
$95 annual fee; waived first year

Pros: The United Mileage Plus Explorer Card is one of the most “versatile” branded airline cards. United offers a huge selection of domestic and international flight options. The signup offer includes a 40,000 bonus miles after spending $2,000 in the first 3 months. The first-year annual fee is waived with this current promotion. Customers also receive 2 United Club Passes each year for access to United airport lounges.

Cons: $95 annual fee after the first year.

Who this card is best for: This card is great for travelers who do not have set plans. Because United travels just about everywhere, the bonus points are very useful for travelers both domestic and internationally. It’s also a good choice for people who don’t have access to Priority Pass or another airport lounge program, as the United Card offers 2 free lounge passes each year.

Read our full write up about The United Explorer Card for more information about this credit card!

4. Barclaycard AAdvantage Aviator Red

Earn 60,000 bonus miles with sign up (after making a single purchase)
Earn a companion certificate for the first year
First checked bag free on American Airlines
2x miles on AA purchases
Preferred boarding and other benefits on AA flights

Pros: The Barclaycard AAdvantage Aviator Red offers one of the best travel signup bonuses of any credit card, while also having one of the lowest requirements to receive the bonus. You just need to make a single purchase on the card, and pay the $99 annual fee, and you’ll receive 60,000 miles PLUS a companion certificate!

Cons: $99 annual after the first year. Ongoing benefits are not very enticing.

Who this card is best for: This card is great anyone who is unable to meet the higher spend requirements of many premium travel cards. To get the signup bonus on the Aviator, you simply have to make a single purchase and pay the annual fee.

3. Southwest Rapid Rewards Priority Card

Earn 40,000 miles points with the signup offer after spending $1000 in the first 3 months
7,500 points awarded annually on your card anniversary
$75 annual travel credit with Southwest
7500 Southwest points every year on your cardmember anniversary
4 upgraded boardings each year on available flights
Points count towards the companion pass

Pros: The Southwest Rapid Rewards Priority Card offers great value for Southwest Customers. While the exact value of points/miles with airline cards can vary, Southwest routinely comes in as one of the top value in terms of the points they offer. Southwest provides flights throughout the US including some international locations (such as Mexico). The annual fee is partially offset with 7,500 annual points awarded to cardholders. The bonus offer also requires a very low spending threshold ($1,000).

Cons: High annual fee of $149.

Who this card is best for: This card will appeal to domestic travelers who regularly use Southwest. Because Southwest is known for its budget pricing your points will go further than many competitors.

Read up on more information about the full family of Southwest Credit Cards with our full review.

2. Chase Sapphire Reserve

50,000 bonus points for new cardholders (after spending $4,000 in the first 3 montsh)
Annual travel credit of $300
Airport lounge acces
Exclusive travel benefits
3x points for dining and travel
50% bonus when booking travel with Chase Ultimate Rewards

Pros: The Chase Sapphire Reserve Card offers a big sign up bonus but the real appeal is the yearly $300 travel credit. Along with the 3x bonus category, cardholders will earn free travel very quickly with this card. Plus, you’ll enjoy lots of exclusive travel perks: Priority Pass lounge access, rental car damage protection, no foreign transaction free, the ability to transfer points to travel partners, and more.

Cons: This card has a huge annual fee of $450. While the bulk of this fee is offset by the annual travel credit, this fee may still be prohibitive for many consumers.

Who this card is best for: This card is ideal for very frequent travelers who are looking for one of the most premium travel cards on the market. There are many additional travel features and exclusive benefits with this card that will appeal to high-end travelers.

1. Capital One Venture Card

Earn 50,000 miles with sign up offer (after spending $3,000 in the first 3 months)
All purchases are eligible for 2x miles
First year annual fee waived – $95 dollars after the first year
Earn 10x miles on hotel purchases with hotels.com
TSA Pre-check/Global Entry Credit

Pros: The Venture Card is a great card for general travel with a generous signup bonus and an every 4-year credit for TSA Pre-Check or Global Entry. Add in the fact that all purchases earn a flat 2x miles, cardholders will quickly be traveling for free. It also has a very flexible rewards currency that can be used for just about anything travel-related.

Cons: $95 annual fee after the first year.

Who this card is best for: This card is perfect for travelers who want general travel options with their card. You can use your points for any aspects of your travel – hotels, flights, and more.

How To Use This List

This list includes 10 of the top travel credit cards – many other options exist but these are some of our favorites. There was a weight given towards select airline credit cards due to the overall popularity of these airlines. Airline-branded credit cards are great opportunities for travelers due to their notoriously high sign up bonuses. A branded airline credit card is generally a great plan if intend to fly with this airline regularly. Customers should make their travel card decision based on their personal habits and what they feel comfortable paying for an annual fee.

This list should be seen as a guide based on some of the best reward rates and sign up offers. Your best match may not be based on this same criteria. When you are looking for a travel card – envision your dream trip and then, ask yourself how a potential card will help you achieve that destination!

What Makes a Great Travel Credit Card For You?

The most obvious factor is that if you fly regularly with a particular airline, their branded credit card is likely to be a good choice. The bonus offers for the cards in this list all have a value well in excess of their associated annual fees. Typically, the bonus offer alone would account for several years of an annual fee. While burning (or churning, as it is often called) through credit cards for sign up offers is not going to be a particularly smart decision for many consumers – it is worth noting that signup bonuses allow you to pay an annual fee for several years before you are in the red on the card.

If you consider yourself a “general traveler” – for instance, you do not have a dedicated airline or particular destinations – then cards like the Arrival Plus, Venture Card, Citi Premier Card, or The Bank of America Premium Rewards Card may be great for you. These cards offer general travel points/miles which can be redeemed for any sort of travel with many airlines and destination options. Finally, if you are dead set against paying an annual fee, a card like the Discover IT Miles may be a great choice.

Do you have a favorite travel credit card? Let us know in the comments below and we will consider updating this list with any new suggestions!

Best Credit Cards for Bad Credit (The Definitive Guide 2019)

July 17, 2019 by Austin Meadows Leave a Comment

Everyone should be able to get credit if they need it or want it. Thankfully, there are options for those of us with less-than-perfect credit scores. The best credit cards for bad credit offer low fees, competitive APRs, and the ability to rebuild credit through responsible credit card use.

Ironically, one of the best ways to build good credit is to use a credit card regularly and pay it off on time. However, for those of us with FICO scores between 300 and 601 (the range considered “bad credit”), getting approved for a credit card can be challenging! In order to improve your odds, you should choose from the list of best credit cards for bad credit, detailed below.

If you are looking for a credit card for low credit, you should keep a few things in mind:

There are a lot of low-quality, high-fee products targeting people with poor credit. Avoid these!
There’s no need to be ashamed of your credit score – an estimated 1/3rd of Americans have a FICO under 600!
Most credit cards for poor credit will be secured credit cards, which require a deposit. We’ll explain this more in a section below.
Before applying for a card, you should check your credit score/credit factors

We’ll list the best low credit credit cards below, but before we do, let’s go over some tips that every credit-seeker should know!

How to Monitor Your Credit

We recommend credit monitoring to all our readers – and particularly to those who would like to improve their credit scores!

The #1 way to do this – for free – is with a tool called Credit Sesame. Credit Sesame is a 100% free tool that helps you check and monitor your credit score.

Our favorite part about this tool is that it actually helps you understand your credit score, and why it is what it is. They go over credit factors like credit utilization, number of open accounts, your payment history, and all the other factors that affect your credit score.

Credit Sesame will help you understand how to improve your credit score, and they’ll even recommend products that may make sense for your situation. It’s a completely free service (they make money from advertising), and it won’t affect your credit score to sign up.

Credit Karma is another similar tool that does essentially the same thing. See our Credit Sesame vs Credit Karma review for a comparison.

Before selecting a good credit card for poor credit, we recommend getting a handle on your credit score by signing up for one of these free tools. Click here to learn more about Credit Sesame and get your free credit score!

Note; if you sign up and find that your credit score is better than you expected (over 600 or so), you might want to check out our guide to the best credit cards for fair credit.

Secured vs Unsecured Credit Cards

On our list of best bad credit credit cards, you will notice that most of them are secured credit cards. What does that mean?

Secured Credit Cards for Bad Credit

Secured credit cards are credit cards that require a security deposit in order to be used. Typically the deposit is the same amount as the credit limit you are given. So they work like this:

You apply for a secured credit card.
If approved, you will need to make a deposit into a type of savings account with the issuing bank.
Usually the deposit is the same as the credit limit. So you would make a $500 deposit, and be given a $500 credit limit.
These funds stay locked in this account, either until you close the credit card, or until the issuer deems your credit good enough to convert it to an unsecured card, at which point the money will be sent back to you.
The money for the deposit is yours, but you won’t be able to directly access it for a while.

So, you may ask – what’s the point of getting a secured credit card? It’s barely a “credit” card, as you have to deposit the amount of the credit limit anyways…

The answer is that secured credit cards help to build credit. Using a credit card responsibly, paying it off on time, etc. will help boost your credit profile over time. And often, for folks with low credit scores, secured credit cards are the only option.

Unsecured Credit Cards for Bad Credit

Unsecured credit cards are the typical credit cards you’re probably familiar with. You apply for one, and if approved, the issuer decides on the amount of credit they want to extend to you. Unsecured credit cards do not require a deposit of any type.

You can then make purchases on the card, and pay it off immediately or over time, based on your needs.

However, they will be harder to get approved for if you have poor credit. They also typically have higher fees, and some even have multiple fees to look out for like annual fees, monthly fees, late fees and more. In general, we don’t recommend unsecured cards for those with poor credit.

Choosing Between Secured and Unsecured Credit Cards

So, which should you choose?

If you want a credit card in order to build credit, and you have at least $200 in savings that you can afford to set aside, then we recommend a secured credit card. These typically have the lowest fees, and are the easiest to get approved for.

If you want a credit card in order to cover expenses that you can’t afford to pay off immediately, an unsecured card may be better. But watch out for the fine print, and be aware of any fees you may be responsible for!

Once you build a good credit history and have a better score, you will qualify for higher quality credit cards. All “normal” credit cards for folks with good credit are unsecured. Once you get out of the low-credit specific cards, there are fewer fees to watch out for.

Best Credit Cards for Bad Credit in 2019

Now that you know the basics of choosing the best low credit credit card, it’s time to look at actual recommendations. Below, find our top picks – divided into secured and unsecured categories.

Best Secured Credit Cards for Bad Credit

If you’re looking for a secured credit card to help you build credit, here are the top options:

Discover it Secured

Annual Fee: $0
APR: 25.24% variable
Minimum Deposit: $200
Rewards: 1% cashback on all purchases; 2% on restaurants and gas stations (on up to $1,000 in purchases per quarter).

The Discover it Secured is easily the best secured credit card for poor credit. Its hits all the important marks: no annual fee, a low minimum deposit, great approval odds, and more. It’s also one of very few rewards credit cards for bad credit – and it actually earns a fairly competitive rewards rate of 1-2%! Even better, all rewards earned in the first year are doubled!

Discover reports card usage on the Discover it Secured to all the credit bureaus, which means this card will help you build credit! Discover also starts reviewing your account after 8 months to determine whether they can refund your security deposit. If you use the card responsibly, Discover will eventually refund the deposit and you can continue to use the card (so essentially, they convert it from secured to unsecured). This is a great way for people who are new to credit to build up their scores and end up with a solid credit profile (and a great credit card) without much effort.

The low minimum deposit is also a welcome change. It’s only a $200 minimum, when most cards require at least $500. When you apply, Discover will approve you for a certain credit limit. You can then decide how much you want to deposit, up to the amount of the limit you were approved for. You will be given a limit up to the amount of the deposit.

Bottom line – for folks looking to build up their credit scores, this is the best credit card for low credit.

Amazon Credit Builder Secured

Annual Fee: $0
APR: 28.24% variable
Minimum Deposit: $100
Rewards: 5% cashback on select Amazon Prime purchases; $40 Amazon gift card signup bonus

The Amazon Credit Builder Credit Card is another good option for a secured credit card. This card is fairly new, having just launched in Summer 2019. It’s issued by Synchrony bank, and backed by Amazon.com.

The Credit Builder card is a secured version of the popular Amazon Store Card. It requires a minimum security deposit of $100, and has no annual fee. The credit limit will be equal to the amount of the security deposit. Eventually, the card can be converted into an unsecured/standard Amazon Store Card. This card does earn rewards, with up to 5% on select Amazon Prime purchases. Read our Amazon Credit Builder review to learn more.

Capital One Secured Mastercard

Annual Fee: $0
APR: 26.99% variable
Minimum Deposit: $49-$200, depending on credit worthiness
Rewards: None

The Capital One Secured Mastercard is also among the best credit cards for bad credit. It has no annual fee, and a low minimum deposit. However, it does not offer any type of rewards.

All applicants who are approved will receive an initial credit limit of $200. To proceed, you’ll need to make the required security deposit, which will be $49, $99 or $200, depending on your credit worthiness. After 5 months of on-time payments, Capital One will consider raising your credit limit, without an additional deposit required.

Capital One reports activity to all the major bureaus, so you’ll start to build credit with this card. It’s not quite as good as the Discover it Secured, as it doesn’t offer any rewards. On the other hand, the Capital One Secured Mastercard has a lower security deposit for some people, although it will depend on your credit score.

Best Unsecured Credit Cards for Bad Credit

Looking for an unsecured card? Find the list of best credit cards for bad credit below.

Note: Generally unsecured cards have higher fees, and may be harder to get approved for, than secured cards. In general we recommend secured credit cards for building credit. Only consider an unsecured credit card for poor credit IF you need an emergency loan, and have no other options.

Capital One Platinum (Average Credit Required)

Annual Fee: $0
APR: 26.96% variable
Minimum Deposit: None, unsecured
Rewards: None

The Capital One Platinum card is a good option if you have average credit. It will be a bit harder to get approved for than some of the other cards on this list, but if you’re on the higher end of the low credit range, this may be a good option.

The card offers no annual fee, no monthly fees, etc. as well as automatic credit line increases as soon as 5 months in. It does not offer rewards, however. There’s also a secured version of this card (discussed above), but this one is unsecured.

Again, keep in mind that not everyone will be approved for this card. But for those with the credit to be approved, it’s a superior option. For other options, check out our guide to the best credit cards for average credit.

Tips for Choosing the Best Low Credit Score Credit Card For You

Now that you’ve seen our list of the best credit cards for bad credit, you’re likely almost ready to make a selection! But before you do, consider these tips:

Consider your goals & needs

Before you get a credit card, consider why you want one. Is it just to build credit? Then go with a no-annual-fee secured card like the Discover it Secured, and pay off your bill on time every month. Or, see if you can, become an authorized user (see below).

Is it to pay for emergency expenses? If so, consider any alternatives you might have. Talk to your bank about a personal loan, or see if you can get a loan from friends or family. Most unsecured credit cards are a poor choice for emergency loans, as they offer small credit lines and very high fees/interest charges.

Consider becoming an authorized user

An authorized user is an individual that is added to another person’s credit card account. They are issued their own card, and can make purchases using it. The upside is that authorized users can benefit from the credit history and score of the account owner.

If your goal is to boost your credit and you don’t really need to actively utilize credit for purchases, becoming an authorized user might make sense. If you have someone in your life (think a spouse, long-term partner, parent, etc.) that trusts you and would be willing to add you as an authorized user, this may help you boost your credit score significantly. However, there are some things to keep in mind – read this article to learn more.

Stick to secured credit cards if you can

We discussed this in more detail above, but the bottom line is this: secured credit cards are far superior to unsecured cards in most situations. Secured cards usually have no annual fee/a very low fee, and offer better perks. If you can afford the security deposit and don’t need to use the card for emergency expenses, secured cards are the way to go.

Watch the fine print

You should know that many credit cards for poor credit are aggressively marketed as good options – but they are really quite terrible options! Some low-credit score credit cards have annual fees on top of monthly fees, inactivity fees, late fees, and fees for just about everything else! Avoid these cards at all costs, and be sure to read the fine print before you apply for any credit card.

Wrapping Up

So there you have it – a selection of the best credit cards for poor credit, along with ample information to help you decide. To conclude, we’d like to remind our readers that using credit cards can be a slippery slope if you get behind on payments. Be sure to practice responsible credit card use, and pay your card balance off on time every month!

If you don’t think you can use credit responsibly, it may be best to just avoid credit cards altogether. There are other alternatives you can explore that may be better options.

If you have any questions, leave a comment below and we will be happy to help!

Closing Your Credit Card Account is Often a Very Bad Idea

July 12, 2019 by Dan Wilke Leave a Comment

Understanding Your Credit Card Accounts and How They Impact Your Credit Score

People who are struggling with credit card debt often come to the same conclusion – to avoid future debt, they decide they will close their credit card accounts. While this may seem like a good idea in concept, it can actually cause significant damage to your credit score. This in turn can lead to high interest rates on future loans or the inability to secure a loan at all. Managing your credit score is one of the most important things you can do to set yourself up for a bright financial future. Here we will take a look at the consequences of closing your credit card accounts.

Factors That Influence Your Credit Score

Credit Composition

The composition of your credit accounts for about 10% of you credit score. Credit composition is the types of accounts you have opened. A good mix of account types positively impacts consumer credit. Some common credit accounts include:

Auto Loans
Home Mortgages
Credit Cards
Student Loans
Personal Loans

Maintaining a varied mix of credit is important and one of the easiest ways to diversify your credit mix is with a credit card. Consumers should always have at least one active credit card account to maximize their credit scores.

Length Of Credit History

This factor is fairly self explanatory. Having older, established credit accounts improves your credit score. Closing a very old credit card would have a significant impact on the overall age of your credit history. This is why it is important to for consumers to establish credit accounts early in life and keep them in good standing. It is smart to keep your old lines of credit open and to regularly use them to ensure they remain active and in good standing.

New Credit

This factor also requires little explanation. Many new credit accounts can have a negative impact on your score. Consumers should attempt to limit their new accounts when possible. Most financial experts recommend opening no more than 2-3 new accounts per year. This factor is relatively minor and many consumers report opening up new accounts has very little impact on their credit score. This factor would not apply to closing a credit card.

Payment History

Past payment history is the single biggest factor which impacts your credit score. These easiest way to establish a reliable payment history is by making regular monthly payments on a credit card. Getting rid of your credit cards remove the opportunity to positively impact the single biggest factor that influences your score.

The easiest way to ensure a lifetime of good credit is to put all of your purchases on credit and pay off the full balance each month. This requires discipline. Leaving an outstanding balance on your card will result in high interest fees and should be avoided.

Amount Owed and Level of Debt

This is the second biggest factor which impacts your credit score. This is also one of the primary reasons people should avoid closing their credit card accounts. This factor does not merely account for your total debt. This factor also considers your credit utilization. We have previously written in detail about credit utilization. To summarize, credit utilization is the total debt you owe on your revolving lines of credit (credit cards) vs. your total credit limit.

When you close a credit card you are removing that entire line of credit. Any outstanding credit card debt will then have a much bigger impact on your score. Carrying a low percentage of debt is always going to result in a better credit score. For this reason, it is also recommended that consumers regularly request credit line increases to their existing cards. This will help ensure your credit utilization never rises above the recommended level of 30%.

Other Methods For Dealing With Unwanted Credit Cards

After reviewing all of the above information there will still be many people who still want to close their unwanted credit cards. The primary reason will be to avoid the “hassle” of having that account. However, there are many ways to reduce the hassle and maintain your peak credit score.

The easiest method is to simply pick a bill and use the unwanted credit card to automatically pay this bill monthly. You should then set up automatic billing for the credit card. Save your settings so that the entire monthly payment will be made in full directly from your bank account. This allows for easy budgeting. It also will maintain your existing line of credit and create a hassle free system of stellar payment history.

Another method for dealing with an unwanted credit card is to simply throw it in a draw and forget about it except for several times per year. Credit card issuers require you to maintain an active account. This means you will need to charge your card at least once or twice per year to keep your account open. Every few months simply put one charge on your card and then pay the balance in full.

Additional Resources – Top 30 Credit Card Blogs (Feedspot List)

Credit Liftoff was recently featured by FeedSpot as one of the Top 30 Credit Card Blogs! This list includes many of our favorite credit card blogs and provides tons of opinion and commentary on many of the top credit cards available for consumers.

Should You Open a New Card?

If closing a current credit card account is bad then perhaps opening a new card would be good. This is a very common conclusion many people arrive at. The answer is slightly more complicated but in many instances it is true a new card can help your score in the long run. As mentioned earlier, new lines of credit do have a small, negative impact on your score. For this reason, it is generally advised not to open to many accounts in a short period of time.

With this said, opening a new account will increase your total line of credit. This in turn will decrease your credit utilization. This is one of the primary factors impacting credit scores positively. Ultimately, a credit card is a responsibility that everyone needs to consider on their own. It is important to never go overboard and never extend your credit to the point where you are accruing debt. Many people open new cards for the big reward offers. These people also find that responsible credit use results in amazing credit scores.

What are your favorite credit card tips and tricks? Let us know in the comments below!

Helpful Resources:

Learn More About Improving and Maintaining an Excellent Credit Score!

Additional Information For Dealing With Unwanted Credit Cards!

What to Do with Unused Credit Cards: Keep, Cancel, or Downgrade?

April 23, 2019 by Austin Meadows Leave a Comment

Do you have unused credit cards taking up space in your wallet, or gathering dust in your junk drawer? Most of us do! Wondering what to do with unused credit cards? You’ve come to the right place!

Your first instinct would probably be to close out the account, shred it, and be done with it. But is it bad to close an old credit card? It can be. What to do with an unused credit card really depends on the situation.

What to Do with Unused Credit Cards

Essentially, you have three options:

Do nothing. Keep the card open, put it in a sock drawer, and forget about it.
Close the account, and shred the card.
Call in and downgrade the account to a lower-level card, that doesn’t have an annual fee.

There are situations where each of these steps could make sense.

When it Makes Sense to Do Nothing

If you have an unused credit card that’s open, has no annual fee, and is one of your older credit accounts, it may make sense to just keep the account open even if you’re not using it.

This is because old accounts help increase your Average Age of Accounts, which is a significant factor in your credit score. In this case, if a card is one of your older accounts, closing it could actually hurt your credit score.

And of course, if there’s no annual fee on the card, there’s no harm in keeping it open. Just make sure you leave it in a safe place!

When it Makes Sense to Close a Credit Card

If you have an unused credit card that is not one of your older cards, and that has an annual fee, it may make sense to close the card account.

If you have several credit cards and this particular card is not one of your oldest, closing it won’t significantly impact your average age of accounts. So, it’s safe to close it. However, you may want to think twice if you carry a balance on other cards – see the section below on credit utilization for details.

And if the card has an annual fee, there’s no reason to be paying for it if you’re not actively using the card benefits!

When it Makes Sense to Downgrade a Credit Card

Sometimes, there’s a third option. If you have a card that’s one of your older accounts and that has an annual fee, you can downgrade the card to one that doesn’t have a fee.

This essentially keeps the card account open in the eyes of the credit bureaus, but allows you to change the product to a no annual fee credit card.

Most credit card issuers allow this. You’ll usually need to call in and ask for a “product change” or something similar.

Why You Should Usually Leave Unused Credit Cards OPEN

There are several options for dealing with old, unused credit cards. But generally speaking, it usually makes the most sense to leave unused cards open. Why?

Closing an old credit card can affect your credit score negatively. There are two possible ways that this comes into play:

Closing an old account can lower your average age of accounts, which makes up about 15% of your FICO score
Closing an account can affect your credit utilization, which makes up 30% of your FICO score

The average age of accounts is simply the average age of all your credit accounts. Closing an older account can slightly lower the average, which may lower your score.

Closing Credit Cards & Credit Utilization

Credit utilization is a bit more complex. Essentially, it refers to the ratio of how much credit you are using compared to how much you have available to you. So, let’s look at an example:

You have 4 open credit card accounts, with a combined credit limit of $12,000
You carry a combined debt balance of $3,000
Right now, your credit utilization is 25%, as you are using 25% of the credit available to you.

But what if you closed one of those cards? This would eliminate part of your credit line, and lower your combined credit limit to $9,000.

Now, with that same debt of $3,000, you’re using 33% of your available credit, and your credit utilization has increased significantly. This will almost certainly lower your credit score.

Before You Close a Credit Card…

Before you close any sort of credit account, consider the following:

Many credit card issuers will waive annual fees if you call and ask nicely
Some will require you to pay the fee, but will issue bonus rewards to make up for it
Closing old accounts can negatively affect your credit score
Closing any account can negatively affect your credit score if you carry a balance
If you do close an account, make sure to destroy the card and dispose of it in a secure manner

Hopefully this guide has helped you figure out what to do with unused credit cards! If you have any questions, drop a comment below! Lastly, if you are trying to decide what to do with an old credit card, it may be worthwhile to give your credit card provider a call to discuss your options.

Credit Utilization – The Ultimate Credit Score Hack

April 12, 2019 by Dan Wilke 2 Comments

Understanding Credit Score Factors and Credit Utilization

To begin, it is important to understand the factors that go in to a consumer’s credit score. There are five major factors and each factor is weighted differently. Here is an approximate summary from FICO explaining the primary credit score factors:

The following five factors will impact your credit:

Amount Owed On Revolving Credit (Credit Utilization)
Consumer Payment History
New Lines of Credit On Your Account
The Length of your Credit History
The composition of your credit (mortgages, student loans, credit cards, etc.)

Looking in to these five factors, you will realize that there is only one category that consumers have significant control of – Amount Owed/Credit Utilization. Payment history is a thing of your past. Consumers can (and should!) make sure future payments are made on time, but there is no control over past payments. The length of your credit is another factor consumers have no control of. New Credit and Credit Mix are categories people have some control of, but very few people will get a car loan to “diversify” their credit mix. Nor would this be recommended. This leaves one final category – credit utilization. This is frequently reported as the second largest factor to credit scores and it also happens to be the one that consumers have the most control of. Let’s explore how you can use this to your advantage!

For More Information About Getting Your Free Credit Score Online Check Out This Article Comparing Two Of The Most Popular Free Credit Score Trackers – Credit Sesame and Credit Karma!

What Is Credit Utilization?

Simply put, Credit Utilization is the amount you owe on your credit cards relative to your total credit limit. The less you owe, the lower your credit utilization percentage is. Alternatively, and very important, the higher your total line of credit is, the lower your utilization will be. When it comes to credit utilization, lower is better! Let’s take a look at the following example:

Credit Card 1 has a limit of $10,000
Credit Card 2 has a limit of $5,000
Card 1 has a balance of $5,000
Card 2 has a balance of $2,500

The total credit for this individual would be $15,000 (Card 1 limit + Card 2 limit). The total owed would be $7,500 (Card 1 balance + Card 2 balance). This person would have a credit utilization of 50%. If this individual paid off half of their balance on each card, their utilization would drop to 25%. Consumers should aim for a credit utilization of less than 30%, but keep in mind that lower is always better! Now, let’s say that instead of paying off their balance, this same individual contacted their credit card companies and requested an increase in their lines of credit. The new scenario is as follows after receiving a credit line increase:

Credit Card 1 has a limit of $15,000
Credit Card 2 has a limit of $10,000
Card 1 has a balance of $5,000
Card 2 has a balance of $2,500

Without paying off any debt, this same consumer would now have a credit utilization of 30% ($7,500/$25,000). As you can see, there are two ways to decrease your credit utilization: reduce your balance OR (and better yet, AND) increase your total line of credit.

How To Optimize Your Credit Utilization?

The main goal that people should have in mind is to never exceed a utilization percentage above 30%. For individuals who use their credit card for all of their expenses, this may not always be an easy option. In a perfect world, consumers should always pay off their card in full with each statement. This will essentially keep your utilization at zero. Even if you have a large balance between statements, you will not see significant fluctuation in your score if your balance is paid in full each month. With this said, it is important to realize that many people use their credit cards to finance large purchases – this is just a reality of life.

One of the greatest credit hacks is to regularly request credit line increases with all of your credit card issuers. Credit Card issuers are happy to increase your credit line for responsible customers. Factors that will impact whether you are approved for a credit increase include:

Keep a low credit card balance
Always make your payments on time
Do not have other cards that are “maxed out”
Other credit accounts (such as loans) are up to date

Requesting Credit Line Increases

Major credit card issuers including, Discover and Citi, allow consumers to check for credit line increases online. Often time, there is not hard credit inquiry necessary. These should be taken advantage of every time they are available. Some other credit card issuers like Chase will require you to contact them by phone and request an increase (more on Chase Credit Line Increases here). You will be informed beforehand whether a hard credit check will be necessary. There is a balance in this process. Too many credit inquiries can be a negative on a credit report. However, credit inquiries are a far smaller portion of your score than utilization so most consumers should feel free to request limit increases annually.

While increasing your line of credit is an extremely powerful tool to increase your credit score, it is important to remember that the ideal circumstance is to never charge more than you can pay off in a given month. If you have an existing balance, consumers need to work hard to reduce their balance as aggressively as they can afford.

As a side note, at the time of writing this article I decided to check my Discover IT Card to see if it was available for a line of credit increase. After entering my income, liquid assets, and employer I was approved for a credit line increase with no credit check whatsoever!

How Much Can Proper Credit Utilization Impact Your Score?

This is a difficult question to answer. There additional factors within the 5 main categories outlined in this article. FICO does not release the exact details of how consumer credit scores are calculated. However, we do know that credit utilization is the single biggest factor that you have direct control over. Anecdotal reports vary, but consumers consistently report significant decreases to their score when they exceed the recommended 30% utilization. Conversely, consumers report significant increases to their score when they lower their high credit utilization. Overtime, proper credit utilization management can easily swing a credit score by 100 points.

Actions You Can Do Today To Increase Your Score (And Decrease Your Credit Utilization)

Check all of your cards for a no credit check credit line increase
Determine if you should request an increase with a credit check (advised only for consumers who are likely to be approved)
Lower your existing balances – stop charging to your card until your balance is under control
Set up a payment plan to reduce your balances in a budget friendly manner

All of the above actions will have immediate impacts to your credit score. Even decreasing your balance by a small amount can result in big credit increases. In addition to these actions, consumers should always live by smart credit management rules.

Should You Open A New Credit Card To Increase Your Total Line of Credit?

The average American consumer has 2 or more credit cards. Some surveys have even shown that more credit cards actually correlates with an increased credit score. This makes some sense in that consumers with more cards would also have a very low credit utilization. Overall, the biggest thing a consumer should consider is whether or not they will use a new card responsibly. For responsible consumers, getting a new credit card is a great way to increase your total credit line. Several factors to consider when looking for a new card include:

What type of credit card are you looking for (cash back, travel, etc)
Is there a particular company that you want to do business with (an airline or store card)
Consider credit card sign up bonuses – these are often great opportunities for free rewards

For More Information About Getting A New Credit Card – Check Out These Articles!

Why Cash Back Credit Cards Suck (For Consumers Who Want More Than Cash Rewards!)
The Best Cash Back Credit Cards – The Ultimate Guide
Credit Cards For Fair Credit (For Consumers Who May Not Have Stellar Credit)
Best Credit Cards For Bad Credit (Cards Designed For Individuals With Poor Credit Histories)

A Quick Recap – Credit Utilization

Credit Utilization is the single biggest factor of your credit score that you have complete control over. It is a percentage based on your current credit card balances compared to your total credit limit (for all cards – balances and limits). Keeping your utilization below 30% will greatly impact your score for the better. Paying down your balances and regularly requesting credit line increases are easy ways to lower your credit utilization. Finally, credit cards should be seen as a financial tool used for convenience and security. Cards should not be considered a good option for financing purchases due to very high interest rates.

Let us know your best credit score hacks in the comments below!

Apple Card Review: Everything You Need to Know About the New Apple Credit Card

March 28, 2019 by Austin Meadows 3 Comments

Apple products have earned a prominent place in our front pockets. Now, it seems, the electronics company would like to earn a place in our back pockets (and purses!), with the brand new Apple Card!

The new Apple credit card is yet to launch, but should arrive by summer 2019. It will offer a unique Daily Cash rewards program, a suite of impressive security & privacy features, and a slick titanium design. Keep reading for our full Apple Card review.

What Is Apple Card?

Apple Card is a new kind of credit card that combines the features that Apple is best known for: simplicity, security, privacy, and transparency.

The card is designed to work seamlessly with Apple Pay. The digital card will live in the Wallet app on your phone, and will be easy to use for all digital wallet payments.

The primary function of the Apple Card is to serve as a digital wallet card. However, there is of course a physical credit card as well.

And, as you’d expect from Apple, the Apple Credit Card is sleek, stylish and ultra-simplistic. It is made of titanium, with laser-etched design features and no card number.

Instead, a secure card number is issued in the Wallet app. Interestingly, this card number can be changed by you, without even calling in.

The Apple Card rewards you with “Daily Cash” for every transaction. You can redeem these rewards for cashback, statement credits, or use it to make purchases.

The Apple Credit Card also makes it easy to track and analyze your spending, right from your iPhone.

We’ll cover all these features in more detail in our full Apple Card review, below!

Apple Card Review: Features

For an at-a-glance look at our Apple Credit Card review, here’s a brief look at the features of this card:

Daily Rewards – Apple Card rewards are earned daily, after each and every transaction you make. You’ll earn 3% on Apple purchases, 2% on Apple Pay purchases, and 1% on transactions made with the physical card.

Easy to Redeem – Rewards are ultra-simple to redeem, with a huge variety of options. Daily Cash rewards will be stored on a digital Apple Cash card. You can use it to make purchases, transfer to your bank account, send money to friends, or pay off your Apple Card balance.

Digital First – Apple Card is a digital payment card first, and a physical credit card second. This means it’s optimized to work flawlessly with Apple Pay, and that you’ll be able to make purchases all over the world using just your iPhone!

Less Interest – Apple Card actually encourages you to pay less interest, by clearly explaining how your payment amount affects the amount of interest you will pay. Apple will also offer industry-leading APRs (13.24% to 24.24% based on credit worthiness).

Spend Tracking – The Apple Credit Card will help you analyze and track your spending through a built-in feature of the Wallet app. You’ll be able to see your spending breakdown by category, flag transactions, and track spending trends over time.

Quick Support – Have a question? Just text Apple support from your phone. No need to call in, provide your account number, or anything like that! For folks already on the Apple ecosystem, this quick access to support reps will be very helpful.

Advanced Security – Apple Card features industry-leading security features. When used with Apple Pay, a secure card number is to keep each transaction safe from skimming. Features like Touch ID and Face ID mean that only you will be able to use your card. Plus, the physical card has no account number on it, giving you a whole new level of security.

Real-Time Fraud Prevention – If a suspicious transaction is detected, you’ll get a push notification to your phone in real-time. From there you can either approve or deny the transaction. Or, send a quick text to Apple if you have questions.

No Fees – There is no Apple Card annual fee, foreign transaction fee, cash advance fee, late fee, returned payment fee – or any other fee, for that matter!

Backed by Apple & Goldman Sachs – The Apple Card is backed by the technological prowess of Apple, and the banking experience of Goldman Sachs. You can trust in the security features of this card.

Not an Apple fanboy? Check out the Chase Slate Card!

Our Take on Features

It wouldn’t be a true Apple Card review without sharing our opinions about the card!

Overall, this card definitely has some interesting and unique features.

A favorite is the spend tracking feature, which lets you easily see where your money is going every week and month. This, combined with the interest analyzer, could potentially help improve the financial well-being of many people.

The lack of fees is also attractive. There are plenty of no-annual-fee credit cards, but there aren’t many that waive things like cash advance fees and late fees.

The security features are also interesting. The lack of a card number on the physical card could reduce the risk of getting the number skimmed. And of course the digital payments will be ultra-secure, thanks to Apple Pay’s tech. However, Wired points out that most of these security features are built into Apple Pay already – so the Apple Card won’t necessarily add much security to digital payments if you’re already using Apple Pay.

Apple Card Rewards

Like most credit cards, the Apple Card will provide cashback rewards on every purchase. The main difference here is that Apple Card cashback is earned daily, so you don’t have to wait until the end of your statement period in order to get your rewards!

The Apple Card also has the benefit of earning straight cash back. There are no points or miles to deal with, no complicated methods to redeem rewards, and no complex program to figure out. Just cash back!

Earning Apple Card Rewards

Earn 3% back on Apple purchases, including Apple Store, iTunes, App Store, Apple Music, iCloud subscriptions, etc.
Earn 2% back on all purchases made using Apple Pay. Whether it’s a restaurant, a book store or an online purchase, all Apple Pay transactions will earn 2% rewards
Earn 1% back on all purchases made using the physical Apple Card.

As you can see, the rewards are tiered, with 1% on all purchases (using physical card), 2% on Apple Pay purchases, and 3% on Apple purchases.

Rewards are earned daily, and at the end of the day the rewards will be deposited to a digital Apple Cash card. From there you are free to redeem them immediately.

Redeeming Apple Card Rewards

On the redeeming side, you have several options.

Once Daily Cash is on your Apple Cash card, you can use these funds to:

Pay off your Apple Card balance
Transfer money to your bank account
Send money to friends via Messages
Make a purchase using Apple Pay

This gives you a lot of flexibility to do whatever you want with your rewards. Apple Cash truly is quite similar to actual cash!

Our Take on Rewards

Looking objectively at this card, the rewards are okay, but nothing special. There are plenty of cashback cards that offer better overall rewards rates.

The 2% rate on Apple Pay purchases is good, and matches the 2% rate of many of our favorite cashback cards. However, not everywhere takes Apple Pay.

The 1% rate on purchases made with the physical card is disappointing. We would have liked to see at least 1.5% to make this card competitive.

With all that said, this card really is designed for Apple Pay and to be a “credit card of the future”. So, it’s possible many people won’t use the physical card much.

On the redeeming side, the Apple Card is excellent. We love the Daily Cash feature for fast rewards, and the flexibility offered in redeeming your cash is quite nice as well.

Apple Card APR & Interest Details

The Apple Card claims to offer interest rates that are “among the lowest in the industry”. Currently, the fine print notes a rate of 13.24% to 24.24% based on credit worthiness. Of course, this could change by the time the card launches in summer.

As you can tell, that’s quite a range of APRs. This likely means that the Apple Card will be widely available to people with a wide range of credit scores. It’s possible that folks with FICO scores in the low to mid 600’s may qualify for this card – although they’ll pay significantly more in interest.

For people with excellent credit, the Apple Card APR may be a good deal. At a low range of 13.24%, the Apple Card is significantly under the national average of 17.67%.

On the upper end, APRs will be high but fairly typical for folks with low credit scores. That said, most cards with no annual fee aren’t even available to those with low credit scores, so the Apple Card may end up being a good deal after all.

As mentioned, Apple Card will be transparent in showing you how much interest you’re being charged, and how much you’ll need to pay to avoid interest charges. This feature will be built into the Wallet App, just like the Spend Tracker.

In theory, this feature should help people get a better grasp on how credit card interest actually works. Apple’s slick interface makes it easy to comprehend the interest charges, which is a welcome change from most credit card providers.

Related Content: Walmart Credit Card Login (designed for consumers who shop at Walmart frequently).

Our Take on Interest

Apple Card seems to offer competitive interest rates to people with excellent credit. For everyone else, rates will probably be fairly average. It’s difficult to say for sure before the card actually launches and we have real data-points on the actual APRs that folks are getting.

One thing we do really appreciate about the Apple Card is the built-in interest analyzer. This is an important feature for people who are new to credit cards and those who have struggled with credit card debt in the past.

The feature lets you play around with your payment amount, and easily see how much interest you will be charged. Pay more, and you’ll pay less interest. Pay less, and interest charges will go up.

This is no different than how the average credit card works. The difference is in how the information is presented. By using a simple, well-designed slider feature, the Apple Card’s interest charges should be easier to understand and more transparent than your typical credit card.

Apple Card Review: Pros & Cons

Information overload, anyone? Let’s recap with a quick pros & cons list.

Pros

Daily Cash rewards delivered every day
Flexible redemption options – statement credit, bank account transfer, etc.
Competitive 2% cashback when using Apple Pay
Innovative Spend Tracker to help you budget and analyze spending
Easy to see how much interest you’re paying, and how payment size affects interest
Advanced security features
Easy and fast support via SMS
Built for Apple Pay and the future of payment tech
Backed by Apple and Goldman Sachs, one of the biggest banks in America
No annual fee, foreign transaction fee, late fee, etc. No fees at all (besides interest)
Competitive APRs

Cons

1% cashback rate on purchases made with physical card is pretty low
You can’t add an authorized user
Many of the toted security benefits already exist with Apple Pay, with any credit card

Apple Card Review: Final Thoughts

Overall, the Apple Card is an interesting new credit card. The physical design is slick and minimalist, and the digital payment features are great. We could see this card becoming somewhat of a status symbol, just like Apple’s smartphones.

Highlights of the card include the spending tracker, interest charge analyzer, daily rewards earning, and the security features.

Downsides include a fairly low rewards rate for purchases made with the physical card, and the fact that authorized users aren’t supported.

From what we can tell so far, this should be a pretty good option for folks who use iPhones and enjoy Apple products. It’s not a card that we’re clambering to get a hold of, but it’s a solid offering.

This Apple Card review will be updated as details emerge, and again when the card launches in Summer 2019. For now, let us know what you think about the card in the comments below. Will you be applying for the Apple Card?

Why Cash Back Credit Cards Suck

February 16, 2019 by Austin Meadows Leave a Comment

In the financial industry and the world of credit card blogs, one common recommendation is to just use a flat cashback credit card that earns rewards. For some people, this can make sense. However, I’m here to tell you that if you have ANY interest at all in traveling, cash back credit cards are NOT the best choice. In fact, cashback cards can flat out suck, compared to the alternatives!

Why Cashback Credit Cards Suck

In essence, cash back cards suck because they don’t allow you to maximize value and make “aspirational” redemptions.

Many of the best cashback credit cards earn about 2% rewards on every purchase. The highest that signup bonuses typically reach on these cards is $500. While that’s certainly a decent chunk of change, it’s nothing compared to the value you can get from a good travel card.

For example, let’s compare some recent redemptions I’ve made with my own travel credit cards.

I got the Chase United Explorer Business card with a signup bonus of 75,000 miles. This could have earned me up to 3 domestic round-trip tickets, or even a round-trip to Asia from the US. I made an odd but incredibly lucrative redemption which fit my travel plans perfectly – 2x 1-way tickets from Eastern Europe to Hawaii.

This redemption cost me a total of 70,000 United miles and $150 in fees. So, essentially the whole sign-up bonus on the Explorer card.

The cash price of those tickets? More than $2,500.

That means I got more than $2,400 in value out of ONE credit card signup bonus.

The most I could have got cash-back from any single signup bonus is about $500, maybe a bit more with a targeted offer.

Likewise, I used the signup bonus on a Marriott credit card for 3 nights in a luxury hotel in Hawaii, which priced out a whopping $1,900. Again, this was from a single credit card signup bonus.

If you’re someone who likes to fly first class or business class, the value can get even more insane.

For example, this guy scored the equivalent of a $60,000 First Class round-the-world ticket using miles and paid just $300 out of pocket. Granted, he used a ton of miles – but try doing that with cashback offers!

Signup Bonus Comparisons

On cashback credit cards, signup bonuses are usually fairly low (i.e. SunTrust Bank issued credit cards). There are a few juicy ones, but they rarely exceed a few hundred dollars. Here are some top options:

Cashback Signup Bonuses

Capital One Savor – $500 cashback after spending $3,000 in the first 3 months

Chase Ink Business Unlimited – $500 cashback after spending $3,000 in the first 3 months

Uber Visa Card – $100 cashback after spending $500 in the first 3 months

American Express Blue Cash Preferred – $200 cashback after spending $1,000 in 3 months

Travel Signup Bonuses

Barclays Arrival + – 70,000 mile signup bonus (worth $700 towards travel)

Chase United Business Explorer – 75,000 mile signup bonus (worth $600-$2,500+ towards flights)

Citi AAdvantage Platinum Select – 50,000 mile signup bonus (can be matched to 70,000) (worth $600-$2,000+ towards flights)

As you can see, the value of the travel card signup bonuses is generally higher. And really, there’s not many lucrative cash bonuses to chase – while there are many great travel cards to try out.

When Cashback Cards DO Make Sense

We’ve established that travel credit cards often offer a better overall value than their cash-back equivalents. However, in some circumstances, cashback credit cards may actually make sense.

We primarily recommend cashback credit cards for those who don’t like to travel and won’t be able to take advantage of using miles & points for vacations.

Other than that, cashback might make sense for businesses who spend a lot on credit cards and wouldn’t be able to use all their accrued miles.

But for everyone else, travel rewards cards are the way to go!

Best Cash Back Credit Cards of 2019: The Ultimate Guide

January 28, 2019 by Austin Meadows 3 Comments

In the modern age, most of us use a credit card on a regular basis. Whether we carry a balance or not, the convenience, perks and rewards associated with these cards make them a worthwhile addition to our wallets. But what credit card should you get? What’s the best cash back credit card?

Most good credit cards have some sort of rewards program these days. Some earn airline miles, some hotel points, and others earn straight cash back. Today we’ll cover everything there is to know about cash back rewards credit cards. And, we’ll help you find the best cash back credit card for your situation!

Best Cashback Card Overall: Citi DoubleCash

At a Glance: Simple, transparent, easy. A flat 2% cashback on every purchase, with no annual fee.
Rewards: 1% cashback on every purchase, plus 1% when you pay your bill (2% total). No rewards cap, no bonus categories, no complexity.
APR: 0% Intro APR on balance transfers for first 18 months; standard APR 15.74% – 25.74% based on credit
Annual Fee: None
Signup bonus: None, although you get a 18-month 0% intro APR on balance transfers

We like the Citi Double Cash because it’s the best 2% cash back credit card that’s widely available to most people. While it technically offers 1% cashback on purchases and another 1% on payments, this translates to an eventual 2% rebate on all your spending. Rewards do not expire, and there’s no cap to how many you can earn.

The Double Cash is best for those who want to keep it simple. There’s no rotating categories to worry about, no annual fee to eat into your earnings, and no complicated rewards to learn how to use. If you don’t want to mess with bonus categories, tiered rewards, or annual fees, this is the best cash rewards card for you.

Bottom Line: We recommend the Citi DoubleCash for anyone who wants to keep things simple and earn the same great 2% cashback on every purchase they make.

Best Cash Signup Bonus Credit Card: Capital One Savor

At a Glance: A massive $500 signup bonus coupled with 4% cashback on dining and entertainment
Rewards: 4% cash back on dining/entertainment; 2% at grocery stores; 1% on everything else
APR: 16.74% – 25.74% variable APR on purchases and balance transfers
Annual Fee: $95, but it’s waived for the first year ($0 first-year annual fee)
Signup bonus: $500 after spending $3,000 in the first 3 months

The Capital One Savor is the best cash signup bonus credit card of 2019. It’s currently offering a huge bonus of $500 after spending $3,000 in the first 3 months! Plus, the annual fee is waived for the first year. For many people, this card will be worth keeping long-term thanks to its good rewards rates, particularly on dining purchases.

The Savor card earns 4% on dining and entertainment, which can add up quite quickly. 2% on grocery stores is okay, but that’s trumped by the best grocery store credit card (Blue Cash Preferred, see below). And of course you’ll want to take the annual fee into consideration. With that said, the massive $500 signup bonus makes this card definitely worth it for most people. Also, you may be able to earn extra bonus cash by going through Swagbucks when you sign up.

Bottom Line: Signup bonus chasers, rejoice! This is the best cash signup bonus 2019 out of ANY personal credit card. Even better, it’s on a credit card that’s a great value overall!

Best 5% Rotating Categories Credit Card: Discover it

At a Glance: Lucrative 5% rewards on a rotating category; no annual fee; great customer service
Rewards: 1% cashback on all purchases; 5% cashback on a rotating category (changes every 3 months)
APR: 0% Intro APR on purchases and balance transfers for first 14 months; standard APR 14.24% – 25.24% based on credit
Annual Fee: None
Signup bonus: All cashback earned in the first year is doubled at the end of the first 12 months.

The Discover it credit card is a great option for folks who want to maximize rewards. It earns 5% cashback on a specific category, which changes every 3 months. As you can see from the image below, it earns 5% on grocery store purchases for 3 months, followed by 3 months of gas/ridesharing, restaurants, and Amazon.com.

These categories often cover very popular spending categories that people tend to spend a lot of money in already. The 5% cashback is capped at $1,500 in purchases per quarter, so if you max it out you’ll earn $75 in cashback (compared to just $30 if you were using a 2% cashback card). See the full cashback calendar here.

Plus, this card comes with a very unique (and potentially very lucrative) signup bonus. At the end of your first 12 months as a Discover it cardholder, all your cashback will be doubled. So if you earned $150 in cashback, you’ll get another $150 from Discover! This also means that for the first year, every purchase essentially earns 2%, while the 5% categories actually earn 10% cash back!

Bottom Line: We recommend the Discover it for people who are more interested in rewards and don’t mind paying attention to the rotating categories in order to earn a better cashback rate.

Honorable Mention: Chase Freedom. This card is quite similar to the Discover it card in that it earns 5% on a rotating category, and 1% on other purchases. It has a $150 signup bonus, BUT, there’s no cashback doubling the first year – so for many, the Discover it might actually be more lucrative.

Best Tiered Cashback Credit Card (No Annual Fee): Uber Visa

At a Glance: Generous tiered rewards with no annual fee, plus a $100 cash signup bonus and some lucrative perks
Rewards: 4% cashback on dining and bars; 3% back on hotels and airfare; 2% back on online purchases; 1% back on everything else
APR: Standard APR 17.24%, 22.99% or 25.99% based on credit
Annual Fee: None
Signup bonus: $100 cash bonus after spending $500 in the first 90 days

The Uber Visa card is a great choice for generous tiered cashback, with no annual fee. At bars and restaurants you’ll earn 4%; on hotels, airBNB’s and airfare you’ll earn 3%; on online purchases (including Uber rides) you’ll earn 2%; and on everything else, a flat 1%.

That’s an extremely generous reward structure for a no-annual fee card. It’s one of the best cashback cards for dining, even competing with the Capital One Savor (which has a high annual fee). Beyond the rewards, the other perks are pretty juicy, as well: a $100 signup bonus, a $50 credit for subscription services (Netflix, Spotify, etc.) when you spend $5,000 on the card in a year, and cell phone insurance to keep your smartphone protected.

This card is obviously meant for Uber fans, but surprisingly, rewards can be redeemed for straight cash back or Uber credit or gift cards – all at the same rate. This flexibility, combined with a high earning rate and no annual fee, make the Uber Visa the best no annual fee cash back credit card.

Bottom Line: We recommend the Uber Visa for foodies & bar hoppers that can get a lot out of the 4% dining category. It’s also just a great all-around card with several great perks.

Best Cash Back Credit Card for Groceries: Blue Cash Preferred

At a Glance: A lucrative reward rate for groceries is partially offset by an annual fee on an otherwise great card
Rewards: 6% cashback on US supermarkets (up to $6,000); 3% on US gas stations; 1% on everything else
APR: 0% intro APR on purchases + balance transfers for 12 months, then a variable APR of 15.24% to 26.24%, depending on credit.
Annual Fee: $95
Signup bonus: $200 after spending $1,000 in the first 3 months

The Blue Cash Preferred card from American Express is among the best cash back credit cards, but only for certain people. We’d recommend this card for families and people who spend a lot on groceries and gas. The 6% cashback on groceries is unbeatable – but unless you spend a fair amount in this category, the card might not be worth the $95 annual fee.

Let’s say your family spends $500 per month on groceries, which would work out to $6,000 per year (the max amount you can earn 6% on). This works out to $360 in cash back, less the annual fee of $95 = $265 in net rewards. If you had used a 2% cashback card instead (with no annual fee), you would earn $120 in rewards. So, the BCP is a clear winner in this situation. If you crunch the numbers, this card makes sense if you spend at least $300/mo on groceries.

Bottom Line: This is the best cash back credit card for groceries – but the annual fee must be considered closely. We recommend this card for families with large grocery bills each month.

Best Cashback Card for Average Credit: Capital One QuicksilverOne

At a Glance: A good option for folks with average credit – recommended for credit scores of 630+
Rewards: 1.5% cashback on all purchases
APR: 26.96% variable APR
Annual Fee: $39
Signup Bonus: None

If you don’t have great credit, it’s hard to find a rewards credit card that earns any sort of cashback. Thankfully, the Capital One QuicksilverOne does just that, and it’s designed specifically for folks with average credit scores (think 630-700 or so). It earns 1.5% on all purchases, although this will be offset by the $39 annual fee.

Compared to the competition, this is definitely the best rewards credit card for low credit. Most others charge high fees and/or don’t offer any sort of rewards (for other options, see this guide). This card also has built in features to help you improve your credit, like an automatic credit line increase after 5 on-time payments. Using this card responsibly could help you improve your credit score.

Bottom Line: We recommend this card for folks with average credit who want to earn cashback. It’s one of the few poor-credit credit cards that offers any sort of rewards.

Best Cash Back Card for Big Spenders: Alliant Visa Signature Card

At a Glance: The highest cash back rewards rate, but only available for high-income, big spenders.
Rewards: 3% cashback on everything for the first 12 months; 2.5% on everything after that
APR: Rates as low as 12.24%APR depending on credit
Annual Fee: $59 (waived for the first year)
Signup Bonus: Extra 0.5% cashback for the first 12 months (3% cashback total)

The Alliant Credit Union Visa Signature card is the highest cash back credit card out there, offering a whopping 3% cashback on ALL purchases. This 3% rate is only for the first year – but even after that, the card earns 2.5% – which is still among the highest cash back rates available. There are no category bonuses or complicated rewards programs to learn about – just a great flat cash back rate on every purchase.

Now, for the downsides. For one, you must be a member of Alliant Credit Union, which means you need to meet certain eligibility requirements (the easiest way is to make a donation to their partner charity). Second, this card is designed for big spenders. Technically it’s designed for people who spend $50,000+ per year on credit cards, which works out to about $4,200 a month. It’s unclear how they determine eligibility in this regard, but you are unlikely to be approved without a very good income and credit score. We don’t know for sure, but would speculate an income of $100k+ is needed, along with excellent credit.

With all that said, if your financial situation fits that bill, this is the highest cash back credit card available today.

Bottom Line: We recommend this card for big-spenders who don’t want to mess with category bonus cards. You will likely need a very high income in order to qualify.

Is a Cash Back Credit Card Right for You?

Cash back cards can be a great way to rack up some savings on everyday purchases. But, they’re not for everyone. Here are some things to think about:

Responsible Credit Use – First off, it’s important to use credit responsibly. Ideally, this means NOT carrying a balance so you don’t rack up interest charges. But if you do carry a balance, you’ll want to take steps to ensure you’re still using credit as responsibly as possible, and ONLY for necessities. If you don’t think you can use a credit card responsibly, you’re better off sticking to debit cards.

Existing Credit – You won’t be able to get approved for a good cash back credit card unless you already have a credit profile established. We recommend checking your score and credit history over at CreditKarma (it’s free).

Type of Rewards – Cash back is great – but for some people, there may be better options for credit card rewards. For instance, if you travel a lot you might be better off with an airline credit card. For more on this, see the section below.

Cash Back vs Airline Miles Credit Cards: Pros and Cons

There are a lot of different credit cards out there. Some earn cashback, some earn flexible points, and others earn airline miles or hotel rewards points. There are pros and cons to each of these types of rewards, as outlined below:

Cash Back Credit Cards

PROS: simple; can be redeemed for anything; not limited to available flights or hotels; you know exactly what you’re going to get
CONS: cashback cards generally have lower signup bonuses; earning rates can be lower; no “ultimate” redemptions such as expensive first class airline tickets

Airline Mile Credit Cards

PROS: often come with large signup bonuses; can be great value for frequent travelers; often include other perks for travelers (like free checked bags)
CONS: limit you to a specific airline; more restrictive rewards; much more complicated; you need to find available award space to redeem your miles

Hotel Credit Cards

PROS: often have large signup bonuses; good perks when staying at hotels; can save you a lot on lodging costs
CONS: limited to a specific hotel; rewards structure is more complicated; generally not as lucrative as airline credit cards; not useful for alternative lodging like Airbnb or hostels

When trying to decide between a cashback credit card, airline credit card or another type of credit card product, it really comes down to a few things. Here are some questions to ask yourself:

What are your goals for your credit card rewards?
Do you travel frequently? If so, what hotels do you stay in, and what airlines do you fly?
Do you want to invest the time to figure out an airline or hotel rewards program?

If you’d rather keep things simple, a good cash back credit card is the way to go!

Cash Back Credit Card FAQs

Click the links below to jump to the question you want answered, or scroll down for all of them!

What is a cash back credit card?
How do cash back credit cards work?
What is the best cash back credit card?
Which credit card gives the most cash back?
WHY do credit cards give cash back?
Where can I get cash back on my credit card purchases?
What does cash back on a credit card mean?
Can you get DEBIT card cash back?
What’s the difference between credit vs debit cards?

What is a cash back credit card?

A cashback credit card is a consumer or business credit card that offers cash back on your purchases. It’s usually between 1% and 2%, although it can be higher or lower depending on the card. So basically, if you make a $100 purchase on your credit card, you will earn $1-$2 in cash back, which can be redeemed for a statement credit or a transfer to your bank.

How do cash back credit cards work?

Here’s how it works:

Make a purchase using your cashback credit card (any purchase will work)
You will earn 1%-2%+ of that purchase back as cash back
Usually your cashback rewards will post to your account after your next statement
You can then redeem rewards for a statement credit (which lowers the amount of your credit card bill), or you can transfer it to your bank
You will earn cashback rewards whether you pay your credit card balance in full, or you carry a balance.

So let’s say you have a 2% cashback credit card and you make a $100 purchase of groceries. When you get your next credit card statement, you’ll earn $2 in rewards for that purchase, which you can redeem to reduce the amount you owe your credit card issuer. This example covers a flat 2% card – see the next section if you’re curious about bonus categories.

How do credit card reward bonus categories work?

Some credit cards have specific categories of spending that earn extra rewards. For example, the Capital One Savor card earns 4% cashback on dining and entertainment, 2% on grocery stores, and 1% everywhere else.

The way this works is that every merchant has what’s called a merchant category code. There’s a code for grocery stores, a code for restaurants, etc. When you make a purchase, this code determines the rewards category of the purchase, and therefore the % of rewards you will earn. This Visa Supplier Locator lets you type in a name of a business to find its merchant category code (MCC).

In the example of the Capital One Savor card, if you make a purchase at a restaurant, it will code as “restaurant” and you will earn 4% rewards. But if you purchase a snack at a gas station, it will probably code as “gas station” or “general” instead of dining – so you’d just earn 1%.

What is the best cash back credit card?

It’s difficult to choose a single best cashback credit card, simply because there are so many good options for different situations. Ultimately, the best cashback card for you will depend on your spending patterns and preferences.

The guide above lists all our recommended cash back cards, each of which has pros and cons.

Which credit card gives the most cash back?

In terms of ALL purchases, the Alliant Cashback Visa Signature card earns the most cashback. It offers 3% cashback for the first year, and then 2.5% cashback after that first 12 months.

In terms of bonus categories, the Discover it earns 5% on a rotating category, AND cashback is DOUBLED in the first year. So, this card essentially earns 10% cash back – but only on specific rotating categories.

Beyond that, you could figure out a top cash back card for each specific category. You’ll find the best options in each category in the guide above.

WHY do credit cards give cash back?

Cashback is pretty sweet – but why do credit card issuers bother to offer it?

In one word: competition. The competition in the credit card industry is fierce, and card issuers are battling each other for your business.

And they can certainly afford it – credit card issuers earn money in a variety of ways. Even if you never pay interest on a your card, the banks still earn money from every single purchase you make, due to the interchange fees they charge merchants.

Where can I get cash back on my credit card purchases?

Essentially, anywhere that accepts credit cards will earn cashback rewards. That means the grocery store, the bar down the road, your favorite restaurant and your hairdresser. Every single purchase made using your cash back credit card will earn rewards.

Some cards have different categories of purchases that earn different cash back rates, so one purchase might earn 1% while another would earn 3%.

With all that said, only purchases earn rewards. Some credit card transactions won’t earn rewards, such as cash advances and balance transfers.

What does cash back on a credit card mean?

Cash back on a credit card means that you will earn rewards points that can be redeemed for cash, every time you make a purchase using your card. For example, a $50 purchase on a 2% cashback credit card would earn $1 in rewards which you can redeem for cash.

Can you get DEBIT card cash back?

We’ve gone over the best cash back credit cards on the market – but can you earn cash back on a debit card?

Most of the time, the answer is no. There are a handful of smaller banks (and a couple national banks) that offer some sort of cash back or rewards on debit card purchases, but it’s usually pretty minimal.

What’s the difference between credit vs debit cards?

Speaking of debit cards, how do they differ from credit cards, anyways? This video does a good job of explaining the basics:

How do you redeem cash back rewards?

Once you’ve earned the rewards, how do you actually redeem them?

This varies depending on your bank. Most cards have some sort of cash back minimum, which could be $1 or could be $25+. In some cases you’ll have to save up rewards until you hit that minimum. In any case, you can usually redeem your rewards for:

A statement credit (which reduces the amount you owe on your credit card)
A transfer to your bank account
A paper check mailed to you, in some cases
Other rewards, like gift cards or free items

Generally speaking, statement credits are the easiest and the most common redemption offered by cash back cards. They make it easy to redeem, too, as you can essentially buy anything you want on your credit card, and then “erase” part of the purchase by redeeming your cash back!

Wrapping Up

Selecting the best credit card with cash back rewards will depend on your specific situation. We hope that this guide gave you enough great options to select the card that’s ideal for you.

That’s all you need to know about cash back rewards credit cards! If you have any questions, leave a comment below and we’ll get back to you!

Credit Cards for Fair Credit: A Comprehensive Guide

December 21, 2018 by Tommy Wilke

If you are looking for a new credit card, you’ll quickly find that there are many options to choose from. With literally hundreds of different cards out there, it can quickly become overwhelming.

But what if your credit is just okay? What are some of the best credit cards for fair credit?

This guide will explore some of the best credit cards for average credit. Find our top recommendations in the guide below.

What is a “Fair” Credit Score?

First and foremost, what is “fair” or “average” when it comes to credit scores? How do you know if you’re likely to qualify for these cards?

Generally speaking, a “fair” credit score is a FICO score in between about 580 and 670. Anything over 670 is considered “good”, and anything under 580 is “poor”. With that said, there’s no hard-and-fast rule, and just because you have a certain score doesn’t necessarily mean you’ll be approved for a credit card.

If you’re not sure what your credit score is, you can use a free tool like Credit Karma to get an estimate. You can also request a full credit report for free – once per year – from AnnualCreditReport.com. You should never pay for a credit report – any company asking for payment for a credit report is a scam.

Now that we’ve covered these basics, what are some of the best credit cards for fair credit? Find out below.

Best Credit Cards for Fair Credit

The cards described below are our recommendations for folks with average/fair credit. Do note that even having a good credit score does not necessarily mean you’ll be approved for a card.

Best No-Annual Fee: Capital One Platinum

Annual fee: $0

APR: 26.96% variable

Rewards: None

The Capital One Platinum credit card is a good option for people with fair to good credit. It does not have an annual fee or any hidden fees like many card products have. It’s issued by a mainstream, trusted bank, and offers an easy entrance into the world of credit.

On the other hand, this card does not earn any rewards, and credit limits are generally fairly low at first. However, applicants who pay their bill on time are usually eligible to get a higher credit line after making 5 monthly payments on time. Capital One also offers a way to check if you’re pre-qualified for a card before actually applying (this won’t affect your credit).

Best for Rewards: Capital One QuicksilverOne

Annual fee: $39

APR: 22.97-26.97% variable

Rewards: 1.5% cashback on all purchases

The QuicksilverOne card from Capital One is another great option. This is one of the few credit cards for average credit that actually earns rewards. It gets you 1.5% cashback on all purchases, so a $100 purchase will earn you $1.50 in cashback rewards.

The trade-off for these rewards is that the card comes with an annual fee of $39. This may be offset by the rewards you earn, depending on your spending habits. If you spend $2,600 a year (~$217 a month) on the card, you will break even since you’ll earn $39 of rewards to offset the annual fee. Spend more than that, and you’ll come out ahead – less, and it’s best to go with a no-annual-fee option.

Easiest Approval: Discover IT Secured

Annual fee: $0

APR: 24.99% variable

Rewards: 1% cashback on all purchases, 2% at gas stations and restaurants. All cashback is doubled in the first year!

The Discover IT Secured is a good option for folks on the lower end of the “fair” credit score range. This card is very easy to get approved for because it’s secured. This means that you will need to make a fully refundable security deposit in order to use it. This is based on the credit limit you want – so if you want a $500 credit limit, you will need to make a $500 deposit into an account that will stay there for at least 8 months. After 8 months, Discover will review your account and if your payment history is good, they may offer to transition you to an unsecured card and refund your security deposit in full.

This may sound like a hassle, but it’s a great way to build credit. Note that this is a true credit card – although it may seem like it’s a prepaid card because of the deposit, it functions in the same way as a real credit card and it will help build your credit file for future use. Discover is also a great company to work with that offers good rewards and fair terms.

This card also offers a signup bonus of sorts; all the cashback you earn in the first 12 months is doubled at the end of the year. So if you earn $100 in cashback, Discover will give you an extra $100 for a total of $200! This double cashback offer is only for the first year of card membership. This card is one of very few average credit credit cards with a signup bonus.

Automatic Credit Increases: AvantCard

Annual fee: $29

APR: 25.99% variable

Rewards: None

The AvantCard is another reasonable option for people just starting out on their credit journey. It comes with a $29 annual fee, but beyond that there aren’t any hidden pesky fees, besides a late fee (which is pretty standard across most cards). The card doesn’t earn rewards, which is a downside.

One reason we picked the AvantCard for this list of the best starter credit cards is that it offers automatic credit line increases. You’ll likely be given a relatively low credit line when you start out, but as early as 6 months in AvantCard will see if you are eligible for an automatic credit line increase. This can be helpful for building up your credit score and profile.

Lastly, another small perk of this card is that the application process is fast and easy, and you can check if you qualify without a hard pull to your credit. Keep in mind that some terms – such as APR – vary based on your credit, so you’ll want to review the terms in the last step before submitting your application.

Other Credit Cards for Fair Credit

Credit Cards For Fair Credit No Annual Fee

Altra Credit Union Non-rewards Credit Card
Ollo Platinum Mastercard
Stanford Federal Credit Union Secured VISA Credit Card

Unsecured Credit Cards For Fair Credit

Credit One Bank Platinum Visa with Cash Back Rewards
Journey Student Rewards from Capital One
Capital One Spark Classic for Business

Credit Cards For Fair Credit Instant Approval

Capital One Platinum Credit Card
OpenSky Secured Visa Credit Card
Credit One Bank Platinum Visa

Store Credit Cards For Fair Credit

America Eagle Card (check out our American Eagle Credit Card Review)
Kohl’s Credit Card
Walmart Store Card

Chase Credit Cards For Fair Credit

Chase Slate Card

Wrapping Up

There you have it – the best credit cards for fair credit that are available today! Again, remember that there’s never a guarantee that you’ll be approved for a specific card, but these cards are certainly easier than many other options. If you get one of these credit cards and practice responsible credit use, you’ll quickly build up your credit profile and eventually qualify for higher credit lines and better credit cards!

If you have any questions, feel free to leave a comment below!

Refinancing Student Loans – Top Lenders and Best Offers 2019

November 1, 2018 by Dan Wilke

Is A Student Loan Refinance The Right Option For Me?

Millions of individuals throughout the United States are struggling with this question right now. It is no wonder either – currently, Americans owe more than $1.5 trillion. This may seem staggering but when you consider that over 45 million individuals have student loan debt it begins to put things in to perspective. Many students are struggling to meet their student loan payments. Estimates show that over 1 million borrowers default on their student loans each year. In fact, up to two thirds of student loan borrowers have less than $1,000 in their bank account. It is no wonder that many borrowers find themselves at a crossroads when determining the best way to handle their student loan debt.

Is Refinancing The Best Move For You?

If you have student loan debt it is likely that you receive offers for refinancing and consolidation on a regular basis. Banks and lenders are competing more than ever to earn consumer business. When you consider that the average interest rate for student loans ranges from 4-8% it makes a lot of sense by big banks and lenders would love to have a piece of your consolidation. All of us with student loan debt have already accepted the fact that we are going to be paying interest on our loans. The next step is determining how we can pay as little as possible. That is what we will try to address in this review.

Before we get started on reviewing several of the most highly rated and respected student loan refinancing companies there is something very important borrowers should first consider. While big banks are often the first thing that comes to mind, students should also look to Credit Unions and Small/Regional Banks for consolidation and refinancing. Checking with your local banks and credit unions, or the bank that you already do business with, can be a smart first step when thinking about student loan refinancing. Not all banks or credit unions will offer student loan options. With that said, due to the fact that they often have more lenient underwriting regulations it is possible you may find your best deal locally. With this in mind, we will take a close look at some of the bigger student loan service providers.

Reviewing 5 of the Major Student Loan Consolidation Companies

These reviews are not ranked in any particular order and it is extremely likely that the best offer will vary depending on the customer. Banks use a huge list of criteria to make financing decisions so the lender best for one individual may be completely different than someone else who may even have a similar credit profile. Above all else, consumers need to shop around and get as much information personalized to their situation to make the most informed and financially wise decision.

1) SoFi – Check Your Rate

Minimum credit score of 650 required to refinance student loans
Zero origination fees and zero application fee
There is no pre-payment penalty for paying off loan early
Flexible term lengths available (5, 7, and 10 year repayment plans)
Rates can be checked online and do not impact credit history
Consolidate private student loans and federal student loans

Overall, SoFi is becoming one of the most popular student loan refinancing companies. This is due to their ease of use, flexible options, low interest rates and attentive customer service. A simple search will reveal they are highly rated across rating platforms. By and large, consumers mostly have good things to say about the service they receive.

2) LendKey – Check Your Rate

Checking your rate takes just minutes with no credit impact
Variable and Fixed interest rates are available as loan options
No hidden fees for origination or application
Provides rates from hundreds of banks consumers can select from competitors
Option to remove co-signers if requirements are met (12 month on time payment)

LendKey is somewhat unique to this list as it provides you with rates from hundreds of banks and credit unions. This means you will be able to review offers from many sources. Rates are advertised as low as 2.47% for variable rate and 3.49% for fixed rate loans. Because there are so many lenders complied with LendKey the is no reason not to your their rate with LendKey.

3) Earnest – Check Your Rate

Earnest provides some customers with cash signing bonuses
Customers can set up auto payment for a 0.25% interest rate discount
Options to skip payments and no payment for paying off your balance early
Rates are available for review online – no credit review necessary

One of the biggest reasons Earnest makes this list is because they often send out cash bonus offers if you refinance your loans. The amount of your bonus varies based on how much you refinance. Some customers are eligible for up to $500 sign up bonus. When reviewing your loans, if all other aspects of your offers are equal, this makes Earnest a no brainer. However, do not fall for the bonus if you are not getting a great rate as well.

4) Citizens Bank – Check Your Rate

Personalized rate quotes available online in less than 2 minutes
Federal student loans and private student loans can be combined in to one consolidation
Live chat assistance avaialble to assist in the application process
No prepayment, origination fee, or application fee for student loan refinancing
Up to 0.5% discount in interest rate available for some customers

One of the best aspects of a Citizens Bank refinance is that you can get a substantial 0.5% interest rate discount. This discount is available when you set up automatic payments and maintain an account with Citizens Bank. Borrowers who already have a Citizens Bank Account should absolutely check their rates with Citizens. The discount they provide could be the difference between hundreds of dollars when compared to other competitors.

5) CommonBond – Check Your Rate

Rates start as low as 2.69% for refinancing student loans
Flexible term lengths from 5, 7, 10, 15, and 20 year terms
Fixed, variable and hybrid interest rates are available for loan options
Loan forbearance options are available for up to 24 months in some circumstances
Find your rate in seconds at no impact to your credit history

CommonBond is another very popular option in part because customers have the option to refinance Parent Plus loans in the name of the student borrower (removing the parent from the loan). If you do use a co-signer, there is the option for them to be removed after 36 months of on time payments. With flexible terms and options CommonBond is definitely worth a look.

Final Wrap Up For Consolidation and Refinancing

The key takeaway is that there are many companies and banks out there that will gladly refinance your loans if you meet their credit requirements. This is great news because it gives consumers the power to search for the best interest rate and repayment terms. Borrowers should also not shy away from any sort of bonus offers. Sign up bonuses are not simply gimmicks but are a product of a very competitive lending environment. Because almost all lenders allow you to view rates at no impact to your score and this process only takes minutes, it is sensible to check your rates with as many companies as possible before settling on a lender.