Cut Your Gas Bill by up to 5% with Gas Rebate Credit Cards

An excerpt from How YOU Can Profit from Credit Cards: Using Credit to Improve Your Financial Life and Bottom Line.


Are you feeling a little light in the wallet? Suddenly regretting the decision to go for that V-8 engine? Vowing to look into one of those hybrid cars? Chances are you’ve just been to the gas station.

With gasoline prices so high, many people are searching for ways to cut costs at the pump. If you’re one of them, you might be interested in credit cards that offer rebates on gas purchases.

Traditionally, gas cards have been affiliated with a particular oil company—Shell, Exxon Mobil, Phillips 66, and so on. These cards are great if you habitually purchase your gas from a specific company, but they’re not so handy if you’re not particular about where you fill up, or you might find it aggravating to have to search for a certain gas station.

Newer gas cards are more versatile and offer rebates regardless of where you fill your tank. As Ira Stroller explains on the CardRatings.com forum:

“Ten years ago, credit cards charged consumers a premium for using their credit cards at the pump. Now these same companies have recognized that the pay-at-the-pump business is huge, and they’re engaging in a ‘semi-battle’ competing for that business by offering increasing better rewards and rebates.”

Here’s how to take the maximum advantage of the available gas cards:

• Most gas rebate cards don’t charge an annual fee. Most that do will waive that charge with a minimum number of purchases. Ask!


• Plan to pay off your gas card every month. Gas rebate cards generally offer higher APRs than other rebate cards, thus you’ll end up losing most of your reward if you carry a monthly balance and pay interest.


• Pick a card that gives rewards in the way you prefer. Usually, the gas rebate is given as a monthly credit on your statement. Sometimes, however, a gift card for a particular vendor is issued.


• Some offers come with an incredible introductory rebate rates that will decrease in just a few months. Find out when the starting rebate expires and what the new rebate will be.


• Most cards have rebate restrictions on gas purchases made at wholesale clubs, grocery stores and discount stores. As always, read the fine print carefully!

With skyrocketing gasoline prices, there has never been a better time to check into a credit card that gives cash rebates for you gasoline purchases. You’ll certainly remember this tip the next time you hit the pump for a fill-up.

Visit the "Gas Rebates" section to find out about the current offerings and ratings of different rebate cards, and to look over the applications.

For more tips on gas rebate credit cards, and other valuable credit card tips, check out Curtis' new book, How YOU Can Profit from Credit Cards: Using Credit to Improve Your Financial Life and Bottom Line.

This article was written by Curtis Arnold, a nationally recognized consumer educator and advocate. Curtis has been educating consumers about credit cards since 1998. He is regularly interviewed and quoted by respected members of the national press regarding consumer credit issues. His new book, How YOU Can Profit from Credit Cards: Using Credit to Improve Your Financial Life and Bottom Line is available now! Order online and receive up to a 37% discount.

---

CardRatings.com is the most comprehensive source for comparing credit card offers. CardRatings.com is pleased to offer consumers free credit card ratings.

---

Please Note! You are welcome to republish this article as long as you state that CardRatings.com is the source for the article. You must also include a link to our website if you republish the article online. Click here for more details about using our articles and thank you for your interest!

Using a Low-Rate Credit Card to Your Advantage

An excerpt from How YOU Can Profit from Credit Cards: Using Credit to Improve Your Financial Life and Bottom Line.


The three Keys to Using a Low-Rate Credit Card to Your Advantage:

1. Make your payments early.

If your card issuer uses the average daily balance method to calculate interest (most do), make your payments before the due date to reduce the interest bite. According to Nancy Castleman, cofounder of GoodAdvicePress.com, lenders are required to credit your payments when they are received, so the earlier you pay your credit card bills, the lower the average daily balance will be. The less you owe, the more you’ll save in interest. Bottom line: To save the most, pay as early as you can-and as often as you can, for that matter.

2. Avoid the dreaded default rate.

With any card, particularly a low-rate card, make sure you always do the following:

• Make your payments on time.


• Never exceed your credit limit.


• Don’t write a check for payment that is dishonored.

Otherwise, you might end up getting hit with a default (aka penalty) rate, which is normally much higher and can be over 30%. Ouch!

You should know the default rate of your current cards and any cards that you’re considering. (Check the Schumer Box.) Perhaps more important, pay attention to what can trigger the default rate.

Especially if you can’t trust yourself to follow my tips to avoid a rate hike, look for the lowest default rate you can find. Some smaller card issuers, such as Simmons First National Bank in Arkansas, offer default rates in the mid-teens, while the average default rate in 2007 was 24.51% according to Consumer Action.

Finding out what triggers the default rate can be a challenging proposition because this information is not normally adequately disclosed. Fortunately, you can easily search default rate triggers by perusing the New York Banking Department’s quarterly online survey.

One worst-case scenario should encourage everyone to pay their bills on time: Some lenders charge a default rate if you’re only one day late making one payment. Other issuers institute a penalty rate if your monthly minimum payments are late twice in any portion of a 12-month period. Exceeding your credit limit is also a common default pricing trigger.

Finally, those late payments with other creditors, or even late payments to utility companies can result in default pricing. That controversial universal default clause can cost you money here, too, as can that lovely phrase, “anytime for any reason.” That’s where issuers can raise your rate strictly based on information in your credit report or a change in your credit score (more on this practice later).

Already paying a default rate? Find out what you have to do to get your account changed to a lower rate. Some lenders require you to make 6 or 12 consecutive on-time payments before the rate returns to the normal purchase APR. But the policies vary greatly.

3. Consider credit score implications.

Every time you apply for a new account, your credit score usually drops a few points. As a general rule, I recommend that you don’t apply for more than one new account every 6 to 12 months.


A similar question that I am frequently asked is, “How does taking advantage of multiple balance transfers affect my credit rating?” View points on this vary from “Risky” because of all of the open credit accounts that it produces, to “It really doesn’t change things much.” The general consensus among experts is that you credit ratings will not be adversely affects…as long as you do not do so excessively. In fact, some experts, including myself, maintain that “balance transferring” can actually improve your credit rating, at least in some instances.

More important, be careful not to use most of the credit limit on any of your cards (commonly called maxing out a card). Doing so really causes your credit rating to suffer. Ideally, you want to use only 10% or less of your credit limit. The higher your utilization, the more your score will suffer.

Finally, never make a late payment-never! Not only will this affect your credit score (generally when you are 30 days or more late), but as I’ve already showed, just one late payment could raise your low rate to exorbitant levels. And if you have more than one card, that single late payment can have a domino effect, with your other cards hiking up your rates.

For more tips on using low-rate credit cards, and other valuable credit card tips, check out Curtis' new book, How YOU Can Profit from Credit Cards: Using Credit to Improve Your Financial Life and Bottom Line.

This article was written by Curtis Arnold, a nationally recognized consumer educator and advocate. Curtis has been educating consumers about credit cards since 1998. He is regularly interviewed and quoted by respected members of the national press regarding consumer credit issues. His new book, How YOU Can Profit from Credit Cards: Using Credit to Improve Your Financial Life and Bottom Line is available now! Order online and receive up to a 37% discount.

---

CardRatings.com is the most comprehensive source for comparing credit card offers. CardRatings.com is pleased to offer consumers free credit card ratings.

---

Please Note! You are welcome to republish this article as long as you state that CardRatings.com is the source for the article. You must also include a link to our website if you republish the article online. Click here for more details about using our articles and thank you for your interest!

Discover a “Brighter” Credit Card Campaign

By Michael Killian, CardRatings.com Reporter


How consumer friendly can a credit card campaign be? Daily consumers are "blitzed and belted" with card ads that promise to enhance our lives. A new eye-opening campaign aptly named Brighter Campaign offers a refreshing approach. As a long time consumer advocate for responsible debt management, I had never seen such an ad and was impressed by its fresh message when I first viewed it.

Instead of “charge, spend, and charge some more”, Discover’s new campaign promotes responsible, sensible use of credit. This new approach is so distinctive that it had even this very conservative reporter thinking, “Gee, maybe I should consider a Discover Card!”

But even if you have no interest in getting a card, I think every consumer should view this ad at least once to realize that at least one company is taking a proactive approach to assisting consumers.

I had the pleasure of interviewing Discover Card’s Larisa Drake, VP of Brand Communications, concerning their new “Brighter Campaign”. Following is some Q&A related to my interview:

Mike: “This new ‘Brighter’ campaign appears to be a reversal of traditional credit card marketing strategies. Where did the concept develop from and is Discover planning on continuing this path?”

Larisa: “The ’Brighter’ concept stems from our company mission to help people spend smarter, manage debt better and save more so they achieve a brighter financial future. "Brighter" is at the core of everything we do, from the development of our innovative products to the services and features we provide to help card members reach their financial goals.

This concept is especially timely right now, given the financial pressures that consumers are feeling in these challenging economic times, and we intend to continue providing consumers the tools and resources they need to have a brighter financial future.”

Mike: “Discover seems to pride itself on innovative strategies. Can you elaborate on some of Discover's other innovations?”

Larisa: “As the pioneer of cash rewards and 24/7 customer service, Discover is a company that thrives on innovation. Two of our more recent examples include the Discover Motiva Card, which rewards cardmembers for good credit management, and the Paydown Planner, a tool that helps guide cardmembers’ spending and payments by calculating the period of time it may take to pay down a balance. These are both prime examples of how Discover delivers on the “Brighter” commitment.

Mike: “Is there any concern that the "brighter" campaign could result in less profit by advocating responsible card management?”

Larisa: “No. We want consumers to know that we have listened to them and what they want from a credit card. Discover Card offers them innovative products and services to help them achieve their financial goals and achieve a brighter financial future. Hopefully, by knowing that we are on their side, consumers will be further engaged with Discover Card and continue to keep it top of mind and top of wallet.”

Mike: “Do you sense that cardholders feel that Discover is sincerely interested in helping them?”

Larisa: “Consumers consider it unexpected that a credit card company acknowledges the fact that consumers face a balancing act between spending and saving, and actually provides products and services that help them manage it –- whether it’s helping them get the most from the money they spend, making a plan to pay down their balance or budgeting for a future purchase. We offer so many tools and features to help consumers with financial management.

For example, Discover Card members have the ability to earn unlimited rewards on all purchases, and then redeem the Cashback Bonus as a credit to help pay down their balance. The Discover Motiva Card was the first credit card to reward card members not just for their spend, but also for paying their minimum balance on time. The budget planners we developed are customized with card members' unique account information, making it easy for them to calculate what it will take to pay down their balance or make a big purchase. It's counter-intuitive programs, tools and features like these that help demonstrate to consumers that we're on their side.”

Mike: “Would you like to add any additional comments?”

Larisa: “I'd like to reiterate that Discover Card understands the financial pressures people are under, and the balancing act consumers face when it comes to spending versus saving. We are committed to helping consumers spend smarter, manage debt better and save more, and offer the tools and services that allow our card members to make financial progress and in turn, achieve a better quality of life.”

I appreciate Larisa's insights and am encouraged to hear some positive news about the card industry for a change! Please share your comments regarding the card industry on our active credit forum.

---

This article was written by Mike Killian. Mike has been writing about credit and debt management issues that are of importance to consumers for over 8 years. His articles have been referenced by various members of the media, including MSNBC and The Motley Fool. Mike has also offered debt elimination seminars to businesses and community colleges for many years.

---

CardRatings.com is the most comprehensive source for comparing credit card offers. CardRatings.com is pleased to offer consumers free credit card ratings.

---

Please Note! You are welcome to republish this article as long as you state that CardRatings.com is the source for the article. You must also include a link to our website if you republish the article online. Click here for more details about using our articles and thank you for your interest!

How to Win the Cash-Back Credit Card Game

An excerpt from How YOU Can Profit from Credit Cards: Using Credit to Improve Your Financial Life and Bottom Line.


A little extra cash in your pocket sounds great, doesn't it? Maybe you could use it for a nice dinner out on your birthday, a movie night out with that special someone, a rainy-day shopping spree, college savings for you or your child, or even a way to pay down your debt. For all these reasons, and thousands of others you can dream up, a cash-back credit card might be the perfect fit for your wallet.

Cash-back credit cards are fairly straightforward, and, in my opinion, they're the simplest type of reward card to use. You usually get a credit to your account, ranging from 1% to 5% of your spending. Some cash-back cards, like the one in my wallet, give automatic credits on a regular basis. A few cards send you an actual check in the mail.

Cash-Back Credit Cards Are Great If...

...you don't carry a balance from month to month. Credit cards that offer cash rebates tend to have a higher interest rate, which usually wipes out any reward you might receive if you carry a balance. If you don't pay off your bill every month, use a credit card with the lowest interest rate you can get.

Dr. Mary Ann Campbell (CFP), president of Money Magic, Inc., and a money educator, sums it up best: "Cash-back is a good option if you are truly managing your credit cards so you are literally earning that cash, and not turning around and paying it back in any other form."

Use your rebate card wisely and pay off the balance in full every month. Then the cash you receive is a reward, pure and simple, for all the hard work you've done in managing your card responsibly.

You Don't Carry a Monthly Balance But...

...not all cards are created equal, either. As with any other type of card, you should definitely shop around. Ideally, pull out your calculator to determine the best reward card, given your spending habits and lifestyle. Consider it a wise investment of your time, with the payoff being more money. You'll also get peace of mind from knowing that you've done some profitable decision making. (The "Consumer Reviews" section of CardRatings.com is a good place to start because the site enables you to conveniently search for cards by reward types.)

Here are some other things to keep in mind when reviewing offers:

Is There an Annual Fee?

Paying an annual fee is a pet peeve of mine, particularly when it comes to cash-back cards. But because only a few cards out of the hundreds and hundreds available charge an annual fee, you shouldn't have to settle for one that does. If a card with an annual fee seems too hard to resist, it's time to crunch some numbers and compare the benefits to those offered by other cards that don't have an annual fee.

When comparing benefits, be realistic about which ones you'll actually use. If a card with a $200 annual fee offers a generous perk, such as free international companion airline ticket every year, but you'd never use it, then that perk isn't worth a dime to you! Rarely does the math add up. The one notable exception, which we discuss in Chapter 8, "Use Targeted Cards to Your Financial Advantage," is a relatively new breed of cards that targets affluent card members.

Does the Card Require You to Carry a Balance?

A few cards offer you a greater rebate percentage or some other freebie if you carry a balance. A typical example here is a card that offers 1% rebate on all purchases but increases that rebate to 2% in any month when you carry a balance.

This scenario should be a big red flag. Any interest that you pay to get a more generous rebate will invariably cost you much more than the amount of cash you get back. Paying 15% interest on your balance for the privilege of earning an extra 1% rebate is a good way to end up in a pauper's prison.

If you're considering such an offer, start with you annual spending level (how much you'll charge during the year). Figure out how much you'll pay in interest charges and fees, and note how much cash you'll get back. I'd be shocked if you actually ended up receiving more cash than you'd pay in interest and fees. (Please let me know if you do!) Be sure to compare your findings to other offers to determine which one gives you the most back.

For more tips on finding the best cash back credit card, and other valuable credit card tips, check out Curtis' new book, How YOU Can Profit from Credit Cards: Using Credit to Improve Your Financial Life and Bottom Line.

This article was written by Curtis Arnold, a nationally recognized consumer educator and advocate. Curtis has been educating consumers about credit cards since 1998. He is regularly interviewed and quoted by respected members of the national press regarding consumer credit issues. His new book, How YOU Can Profit from Credit Cards: Using Credit to Improve Your Financial Life and Bottom Line is available now! Order online and receive up to a 37% discount.

---

CardRatings.com is the most comprehensive source for comparing credit card offers. CardRatings.com is pleased to offer consumers free credit card ratings.

---

Please Note! You are welcome to republish this article as long as you state that CardRatings.com is the source for the article. You must also include a link to our website if you republish the article online. Click here for more details about using our articles and thank you for your interest!

Negotiate a Better Credit Card Rate

An excerpt from How YOU Can Profit from Credit Cards: Using Credit to Improve Your Financial Life and Bottom Line.


When you've taken a gander at the current rates being offered, you can use them as a negotiating tool with your card issuer. Trying to bargain down your rate might sound like an intimidating, complex process, but it's actually quite simple and can be very empowering as it saves you money. Believe it or not, many consumers have saved hundreds and even thousands of dollars by simply making a five minute phone call and asking their issuer to lower their rate.

Unless you already have a great rate, it's definitely worth calling your lender to see if you can get a better deal. I've done this myself many times over the years, so I know that it works. However, your chances of succeeding are significantly diminished if you have a poor credit rating or you haven't used your card responsibly (for example, you've had more than one late payment in the past year or you exceed your credit line on a regular basis).

Here are five tips to increase your chances of getting a lower rate when you talk to a customer service rep:

1. Always be courteous and professional.
2. Say that you're keenly aware that there are better offers available to you. Mention specific low-rate offers from other card issuers.
3. Point out your good track record and your good credit score.
4. Explain that you'd like to continue to use the card - and plan on doing so - if your rate is lowered.
5. If the answer is "No," politely ask to speak to a supervisor, and repeat steps 1 through 4.

Talking to a supervisor is often worth it because the customer service reps are more limited in their ability to make account changes. If the supervisor can't help, you next step should be to threaten to stop using the card and to transfer you balance elsewhere. When you call their bluff, you'll probably be transferred to the account retention department. Its sole purpose is to keep customers (hence the name), so this department can often give significant concessions to make you happy.

For more tips on how to negotiate a better rate, and other valuable credit card tips, check out Curtis' new book, How YOU Can Profit from Credit Cards: Using Credit to Improve Your Financial Life and Bottom Line.

This article was written by Curtis Arnold, a nationally recognized consumer educator and advocate. Curtis has been educating consumers about credit cards since 1998. He is regularly interviewed and quoted by respected members of the national press regarding consumer credit issues. His new book, How YOU Can Profit from Credit Cards: Using Credit to Improve Your Financial Life and Bottom Line is available now! Order online and receive up to a 37% discount.

---

CardRatings.com is the most comprehensive source for comparing credit card offers. CardRatings.com is pleased to offer consumers free credit card ratings.

---

Please Note! You are welcome to republish this article as long as you state that CardRatings.com is the source for the article. You must also include a link to our website if you republish the article online. Click here for more details about using our articles and thank you for your interest!