Credit Card Companies React to Bad Economy
It seems that the credit card companies are reacting to the bad economy and the tight credit market. It is much tougher to get a 0% balance transfer deal with no fees or a low fee cap than it used to be. Many credit card companies have removed the fee cap completely and/or aren’t offering 0% balance transfer deals at all.
Many of the bonuses that I have posted about have disappeared as well. These bonuses are usually for a limited time but it is unusual for so many bonuses to end in such a short period of time. The credit card companies are also changing their reward programs. An example is the Chase Freedom card which changed their reward structure from 3% back on your top three spending categories to 3% on categories that change every quarter. This will result in them paying less rewards.
It is definitely getting tougher to use credit cards to your advantage but it can still be done. With the number of bonuses dwindling I will be expanding the coverage of this blog. I will still feature credit card bonuses but I’ll also post about any good credit card deals I find that can make you money.
Choosing a Reward Credit Card
There are several different things to consider when choosing a rewards credit card. There is no one reward card that is best for everybody. The best reward credit card for you depends on several factors that are unique to you.
One thing you will want to do when choosing a rewards credit card is to look at your personal shopping habits. The amount you spend each month as well as what you spend your money on each month both help determine which reward credit card will provide you with the best rewards. Some cards require you to spend a minimum amount before you earn any rewards or pay only a small percentage back until you reach a minimum spending threshold. If you are not a big spender than these aren’t the cards for you.
Another thing to consider is how the credit card awards the rewards you earn. For instance if you never fly then you probably do not want an airline rewards credit card that rewards you with airline miles that you can use to purchase a plane ticket in return for using your card. Conversely if you fly frequently than you probably will want an airline rewards credit card because earning free airline miles is the best reward for you.
In addition to airline rewards the most popular reward credit cards offer their rewards in the form of cash or points. If you choose a card that offers points check carefully to see how they are awarded and for what products they can be redeemed. It is typical for credit card companies to have their own shopping site where you can redeem your points for products or gift cards. If the shopping site doesn’t have any products that interest you or only has gift cards for places you do not do business at then it isn’t a good deal for you. In addition compare what the points are equivalent to in dollars. That way you can tell if you are getting a better deal than just getting cash.
My personal preference is to use a card that awards cash back. You can always use cash. The cash back percentage is usually as good or better than the percentage you would earn for being awarded in points. It is also easy to determine your rewards. If you spend $100 on a 1% cashback card than you will get $1 back. That is much simpler than being awarded points and then having to determine how many points you have to exchange for a $100 product.
There are some pitfalls to look out for. One is the length of time you have to redeem your rewards. You don’t want your rewards to expire before you have a chance to use them. You also want to avoid annual fees unless the card offers an exceptional value. Also look out for a cap on the amount of rewards you can earn. Of course you don’t want to carry a balance or the interest you pay will easily negate any rewards you earn.
There are many things to be aware of when choosing a rewards credit card but if you choose wisely you can be handsomely rewarded for using your rewards credit card.
The New Chase Freedom Card
Chase is now offering a new Freedom Card and is no longer offering the old Freedom Card and there is no bonus offered at this time. The terms have changed and make it more difficult to maximize your rewards. Now you get 3% cash back on gas, grocery, and fast food purchases for the first three months and after that there will be different 3% cash back categories every quarter. All your purchases that don’t qualify for 3% cash back will receive 1% cash back. One significant improvement they have made is the elimination of expiration dates on your cash back earned. While the terms of this Chase Freedom Card are not as good as they were before this is still a solid reward card if you carefully watch your purchases to make sure you receive the maximum cash back.
- 3% Bonus cash back on gas, groceries and fast food purchases for the first six months*
- 1% Unlimited cash back on everything else. No cap. No expiration.*
- 0% Intro APR on purchases only for up to 12 months.*
- No annual fee
Discover $20 Gift Card Bonus
Discover Card is running a holiday gift card promotion. 
Get a $20 Discover® Gift Card when you make $200 in purchases with your Discover Card at a participating mall between 11/01/08–01/04/09, while supplies last. Original receipts and the Discover Card used to make the purchases must be presented to a participating mall’s Customer Service by 01/04/09. Limit 5 Gift Cards per account, while supplies last, during the promotion period. Gift Card is valid through July 31, 2009. See Gift Card terms and conditions for full details.
Combine this with the $50 Discover More Card bonus or the $100 Discover Business Card bonus I already posted on to make this deal even better.
No other card rewards you like the Discover® BusinessCard. Enjoy a 0% Intro APR for 12 months on purchases and 3.99% intro APR for 6 months on balance transfers and earn 5% Cashback Bonus® on office supplies, 2% Cashback Bonus on gas and up to 1% Cashback Bonus on all other purchases*. Plus, pay no annual fee. APPLY NOW!
Discover Balance Transfer Fee Caps Ending
Discover will be ending the $75 balance transfer fee cap that they had on many of their cards. Balance transfer fee caps are disappearing as the credit market is tightening. If you were planning on applying for a Discover Card to take advantage of a balance transfer offer than you’ll want to do it today for the best deal. Starting November 1, 2008 there will be no cap on the balance transfer fee cards from Discover. Listed below are some of the Discover cards that currently have good balance transfer offers. Be sure to check the terms to make sure they are still offering the balance transfer deal you want.
Advanta Kiva Business Card- Charity Bonus
This card works a little differently from other reward cards. With this card your rewards go to Kiva, a charity that give micro loans to small business owners in developing countries.
Use your Kiva BusinessCard to change the life of a business owner in a developing country. Apply now and you’ll receive these unbelievable benefits
- Advanta will match your grant to Kiva…dollar for dollar†
- Unbeatable APR - 0% on balance transfers for 15 months, and 7.99% Fixed APR thereafter
- Get 5% statement credit on your first $1,200 each year in grants to Kiva, charitable donations and other purchases.*
- No Annual Fee
- $0 Fraud Liability
†Up to $200 per account per month in total. See Matching Program Terms for details
*see Reward Program Rules for additional important information, benefits and limitations limitations
American Express Business Green $50 Bonus
****Sorry, This bonus is no longer available.
With the American Express Business Green Rewards card you will receive 5,000 bonus points after your first purchase. These points can be converted into a $50 gift card to popular retailers such as Home Depot,Barnes&Noble, Blockbuster and many more. You can apply for this card as a sole proprietor. Just use your name as the business name and your SSN as the tax id. More benefits of the card are listed below.
- Receive 5,000 bonus points on your first purchase
- No pre-set spending limit* or finance charges
- Earn One Membership Rewards® point for virtually every dollar you spend with no limits and no expiration dates
- Save 3-25% on business purchases at companies like FedEx®, Delta®, Hertz®, and more.
- Redeem points for top-tier rewards including travel, merchandise, office equipment, and gift cards for you or your employees
- No annual fee for the first year - a savings of $95
American Express Preferred Rewards Gold Card $100 Bonus
When you sign up for the
American Express® Preferred Rewards Gold Card
you can receive a $100 bonus. This card has no fee for the first year. Some more details of this card are listed below:
- Earn 10,000 Membership Rewards® bonus points when you spend $500 in 3 months - redeemable for a $100 gift card!
- No Pre-Set Spending Limit
- No annual fee for the first year - $125 Thereafter
- The Membership Rewards® program - Earn 1 Membership Rewards® point for virtually every dollar you spend and redeem for your choice of travel, shopping, and entertainment rewards.
- Gold Card Events - exclusive access to tickets for select concerts, shows, major sporting events, and more in cities nationwide.
- Express Approval. Get a decision in less than 60 seconds.
Discover More Card $50 Bonus
The Discover More card is currently offering a $50 Cash Back bonus after your first $500 in purchases. The Discover More card pays 5% Cash Back on different categories throughout the year. You can earn up to 1% Cash Back on your other purchases. This card has no annual fee. The promotional reward will be applied within 8 weeks. Just click on the following link for more details or to apply.
Get $50 Cash Back Bonus with the Discover® More Card!
Discover Business Card $100 Cash Bonus
You can receive a $100 bonus when you sign up for the Discover® Business Card. Earn a $100 Cashback Bonus when you make $1000 in purchases within 3 months after your account is opened. Promotional reward will be applied within 8 weeks.
This card features 0% APR for 12 month on purchases and pays up to 5% cashback on purchases. There is no annual fee on this card. Just click on the image for more information or to apply.
