Why Does My Credit Score Drop When I Apply for a Loan?

If you keep a close eye on your credit score, you might notice that it drops shortly after you apply for a new credit card or loan. We’ll break down the reasons for the dip, and explain how your score changes in different scenarios.

What does a loan application have to do with my FICO score?

Lenders use your credit score to decide whether they can trust you to pay back a loan (or rent an apartment, or make payments on your phone bill, etc.) Doing things that can be considered risky, like carrying a high balance on your credit cards or missing your payments, will lower your score. So why would a new application be considered risky?

Well, from the lender’s perspective, asking for a new loan probably means you need cash, which might mean you can’t repay the loan. It may not be true – you might be taking out student loans that you’re confident you can repay, or you’re signing up for a credit card to get the miles – but they’re making their best guess on what a new application means for your creditworthiness. And by that logic, a new application means a slightly lower score.

The special cases

Typically, every new loan application lowers your score. For instance, applying for three credit cards in quick succession will ding your credit three times. However, on big loans like mortgages or student loans, you have a window of time (usually around 45 days) when you can apply for as many of those loans as you want with the same effect as applying for one. This is because lenders expect you to compare rates for those loans – when you’re going to be taking out hundreds of thousands of dollars, it pays to shop around – so they won’t punish you for being financially savvy.

When checking your score doesn’t lower it

Since applying for a loan lowers your score, you might think that it drops every time someone checks it. However, credit reporting agencies make a distinction between “hard inquiries,” which affect your score, and “soft inquiries,” which don’t.

Hard inquiries (or “hard pulls”) happen when you authorize someone else to check your score in the process of applying for something, like a credit card or personal loan. These are the ones that’ll ding your FICO score – typically around 5 points, according to MyFico.com. You should avoid incurring too many hard inquiries in a short timeframe.

Soft inquiries (“soft pulls”), on the other hand, don’t affect your credit score. These are inquiries that either you’re making in the process of checking your credit score, or that a lender is making without your knowledge in order to pre-approve you for a loan. The biggest takeaway here is that you shouldn’t worry about checking your credit score – you won’t see a dip because of it.

What about non-lenders that make inquiries, like cable TV providers or apartment landlords? It depends: Some make hard inquiries, and others soft. The best way to find out is to ask them directly. But be sure to check your own score early and often, to avoid unpleasant surprises.

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Low Mortgage Rates Mean Now Is a Good Time to Refinance

Thinking about refinancing any of your long-term debt? You might want to do it sooner than later. Mortgage rates have hit levels unseen in more than a year and are near historic lows, but they may not stay that way for long.

On average, 30-year fixed-rate mortgages hit this year’s bottom in mid-October, according to the Mortgage Bankers Association in Washington. Rates are the lowest the country has seen since mid-2013 and remain close to the lowest in 50 years, according to loan buyer Freddie Mac, as the Federal Home Loan Mortgage Corp. is known.

Personal loans are also still relatively cheap, averaging 10.73% on a 24-month note from a commercial bank in September. The average rate hit 9.57% in May, the lowest level in at least 40 years, according to Federal Reserve data.

However, rates on 30-year fixed mortgages are likely to steadily increase over the next two years, according to industry forecasts. The MBA estimates the average will begin rising as early as the first quarter of fiscal 2015 and end the year at 5%. It also estimates rates will climb to around 5.4% in 2016.

With the recent slide in mortgage rates and the outlook for increases, borrowers have submitted debt refinancing applications by the thousands. Applications surged in mid-October to the most since last November, the mortgage bankers’ group says. The average loan balance involved rose to $306,400, the highest level in the history of the organization’s weekly market survey.

Why debt will cost more

If you’re paying more than 5% interest on any long-term debt, now is a good time to look into refinancing. Lowering your interest rate can save you thousands in interest payments on a mortgage during the course of the loan. If you’re not a homeowner but have been carrying high-rate credit card balances, a personal loan can also cut your interest expenses. If you have a late-model car that you’re still paying for, a new loan secured by it could also reduce how much you’ll pay for the credit.

Borrowing costs are expected to spiral higher partly because the Federal Reserve decided to halt an asset-purchasing program that’s helped lower pressure on long-term rates. The effort began in response to the 2008 recession. However, the Fed hasn’t changed its stance on holding short-term rates near zero for a “considerable time.” So while it will take time for borrowing costs to increase significantly, today’s rates – and great deals on refinancing – may not last much longer.

Easier lending standards

In the years before the subprime mortgage market meltdown in 2007, which prompted the financial crisis that led the Fed to cut rates to near zero, lending standards were so lax that it seemed like you needed only a pulse to qualify for a home loan. Requirements are much tougher now. But if you have good credit you may find a sympathetic ear at a credit union or community bank.

Fannie Mae, as the Federal National Mortgage Association is known, and Freddie Mac, along with their regulator, the Federal Housing Finance Agency, are working on an agreement to loosen loan criteria on mortgages. Because of their roles in the secondary market for mortgages, the two government-sponsored enterprises effectively set rules that lenders follow so they can sell this type of debt to investors.

When the housing bubble burst, banks were stuck repurchasing mortgages and thus are more hesitant to lend to those with weak credit out of default fears. New guidelines are expected to let lenders better manage risk by taking into consideration “compensating factors.” Essentially, they encourage financial institutions to lend more freely and responsibly to those with lower credit scores and to reduce down payment requirements on new purchases.

Right now, homeowners who are most likely to get a green light to lock in low rates are those with:

• regular income and employment


• a good credit score


• high equity in their homes


• few other debts, such as student or big car loans

Above all, if you’re considering refinancing, you need to do it for the right reason – saving money. Interest isn’t the only factor to consider, but you’re most likely to benefit if you can shave at least 1 percentage point off your current rate. Usually, you’ll save more if you refinance early in your loan’s term. You also need to figure out your financial goals, how long it’ll take to recoup related costs, and how long you’ll likely keep your property. Then crunch the numbers to see if it makes economic sense.

If you determine you can save a bundle, then you shouldn’t sit it out – lock in the best deal you can while interest rates remain low.

---

Image of time as the key via Shutterstock.

The post Low Mortgage Rates Mean Now Is a Good Time to Refinance appeared first on NerdWallet Credit Card Blog.

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Low Mortgage Rates Mean Now Is a Good Time to Refinance

Thinking about refinancing any of your long-term debt? You might want to do it sooner than later. Mortgage rates have hit levels unseen in more than a year and are near historic lows, but they may not stay that way for long.

On average, 30-year fixed-rate mortgages hit this year’s bottom in mid-October, according to the Mortgage Bankers Association in Washington. Rates are the lowest the country has seen since mid-2013 and remain close to the lowest in 50 years, according to loan buyer Freddie Mac, as the Federal Home Loan Mortgage Corp. is known.

Personal loans are also still relatively cheap, averaging 10.73% on a 24-month note from a commercial bank in September. The average rate hit 9.57% in May, the lowest level in at least 40 years, according to Federal Reserve data.

However, rates on 30-year fixed mortgages are likely to steadily increase over the next two years, according to industry forecasts. The MBA estimates the average will begin rising as early as the first quarter of fiscal 2015 and end the year at 5%. It also estimates rates will climb to around 5.4% in 2016.

With the recent slide in mortgage rates and the outlook for increases, borrowers have submitted debt refinancing applications by the thousands. Applications surged in mid-October to the most since last November, the mortgage bankers’ group says. The average loan balance involved rose to $306,400, the highest level in the history of the organization’s weekly market survey.

Why debt will cost more

If you’re paying more than 5% interest on any long-term debt, now is a good time to look into refinancing. Lowering your interest rate can save you thousands in interest payments on a mortgage during the course of the loan. If you’re not a homeowner but have been carrying high-rate credit card balances, a personal loan can also cut your interest expenses. If you have a late-model car that you’re still paying for, a new loan secured by it could also reduce how much you’ll pay for the credit.

Borrowing costs are expected to spiral higher partly because the Federal Reserve decided to halt an asset-purchasing program that’s helped lower pressure on long-term rates. The effort began in response to the 2008 recession. However, the Fed hasn’t changed its stance on holding short-term rates near zero for a “considerable time.” So while it will take time for borrowing costs to increase significantly, today’s rates – and great deals on refinancing – may not last much longer.

Easier lending standards

In the years before the subprime mortgage market meltdown in 2007, which prompted the financial crisis that led the Fed to cut rates to near zero, lending standards were so lax that it seemed like you needed only a pulse to qualify for a home loan. Requirements are much tougher now. But if you have good credit you may find a sympathetic ear at a credit union or community bank.

Fannie Mae, as the Federal National Mortgage Association is known, and Freddie Mac, along with their regulator, the Federal Housing Finance Agency, are working on an agreement to loosen loan criteria on mortgages. Because of their roles in the secondary market for mortgages, the two government-sponsored enterprises effectively set rules that lenders follow so they can sell this type of debt to investors.

When the housing bubble burst, banks were stuck repurchasing mortgages and thus are more hesitant to lend to those with weak credit out of default fears. New guidelines are expected to let lenders better manage risk by taking into consideration “compensating factors.” Essentially, they encourage financial institutions to lend more freely and responsibly to those with lower credit scores and to reduce down payment requirements on new purchases.

Right now, homeowners who are most likely to get a green light to lock in low rates are those with:

• regular income and employment


• a good credit score


• high equity in their homes


• few other debts, such as student or big car loans

Above all, if you’re considering refinancing, you need to do it for the right reason – saving money. Interest isn’t the only factor to consider, but you’re most likely to benefit if you can shave at least 1 percentage point off your current rate. Usually, you’ll save more if you refinance early in your loan’s term. You also need to figure out your financial goals, how long it’ll take to recoup related costs, and how long you’ll likely keep your property. Then crunch the numbers to see if it makes economic sense.

If you determine you can save a bundle, then you shouldn’t sit it out – lock in the best deal you can while interest rates remain low.

---

Image of time as the key via Shutterstock.

The post Low Mortgage Rates Mean Now Is a Good Time to Refinance appeared first on NerdWallet Credit Card Blog.

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5 Reasons Your Credit Score Is Lower Than You Thought — and What to Do About It

The only thing worse than getting a nasty surprise is getting a nasty surprise about your finances. For instance, you check your credit score and discover it’s much lower than you anticipated. You wonder, “What went wrong?”

Here are 5 unexpected reasons your credit score is lower than you thought it would be — and how to fix it.

1. You carry a high balance on your card every month (even though you pay it off)

If you make it a priority to pay off your credit card balance in full when the bill arrives, you’re doing the right thing. But if your charges tend to run high every month, you might still be doing damage to your credit score.

Here’s why: Your credit utilization ratio, which is the amount of credit you have in use compared with your total credit limit, heavily influences 30% of your credit score. But the problem is that your issuer might not report your balance to the credit bureaus after you make a payment — they could send that information over at any point during the month. Consequently, your score could get dinged if a high, mid-cycle credit utilization ratio is reported.

The solution is to make multiple payments throughout the month to avoid using more than 30% of your available credit at any time. This will ensure that no matter when what you owe is reported to the bureaus, you’ll be in good shape.

2. You apply for every new card that hits the market

If you’re a rewards hound, the impulse to apply for the latest-and-greatest piece of plastic out there is natural. But caving in to temptation whenever a new card hits the market could end up doing harm to your credit.

Every time you apply for a new credit card or loan, you’ll lose points from your score. If several hard inquiries hit your report within just a few months, the hit will be bigger. This is because too many applications are associated with a higher credit risk.

Your best bet is to think carefully before obtaining new credit, and only move forward with the application if it’s a card or loan you really need.

3. You’re in collections and don’t know it

Payment history makes up the largest portion of your FICO credit score, a whole 35%. If you’ve missed a payment for so long that one of your accounts has gone into collections, this will clearly have a large, negative impact on your credit.

But the trouble is, some people who are in collections don’t know it. This is especially common with medical debts, because there’s sometimes confusion around whether the patient or the insurer is expected to pay. In the meantime, the doctor’s office gets tired of waiting for the cash and sells the account to a collector.

The only way to know if an account in collections is what’s dragging down your score is to pull your credit report and review it for negative information. Don’t worry, you won’t have to pay for this — you can get a free copy of each of your three credit reports (one from each bureau) every year from AnnualCreditReport.com.

If you do find an account in collections on your report, it’s a smart idea to pay it off. It will still appear on your credit report, but the newest generation of the FICO scoring model is going to ignore paid collections accounts. When it’s adopted, your score should go up if you paid up.

4. You just recently got your first credit card or loan

Fifteen percent of your FICO credit score is determined by the length of your credit history. If you’ve only recently gotten your first credit card or loan, this could be the cause of a lower-than-expected score.

The only thing you can do in this situation is to keep using credit responsibly (which means paying your bills on time and in full) and wait for time to pass. Before you know it, your score will be in great shape.

5. There’s an error on your credit report

According to a 2013 study by the Federal Trade Commission, one in five consumers had an error on at least one of their credit reports. Although many of these errors aren’t significant enough to affect a person’s credit score, some are. So if you’re surprised at how low your score is, a mistake on your credit report might be to blame.

Again, you’ll need to review each of your credit reports to see if an error is causing your score to lag. If you find one, be sure to start taking steps to have it corrected immediately — the sooner it’s fixed, the sooner your score will begin to bounce back.

How low can you go? image via Shutterstock

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5 Reasons Your Credit Score Is Lower Than You Thought — and What to Do About It

The only thing worse than getting a nasty surprise is getting a nasty surprise about your finances. For instance, you check your credit score and discover it’s much lower than you anticipated. You wonder, “What went wrong?”

Here are 5 unexpected reasons your credit score is lower than you thought it would be — and how to fix it.

1. You carry a high balance on your card every month (even though you pay it off)

If you make it a priority to pay off your credit card balance in full when the bill arrives, you’re doing the right thing. But if your charges tend to run high every month, you might still be doing damage to your credit score.

Here’s why: Your credit utilization ratio, which is the amount of credit you have in use compared with your total credit limit, heavily influences 30% of your credit score. But the problem is that your issuer might not report your balance to the credit bureaus after you make a payment — they could send that information over at any point during the month. Consequently, your score could get dinged if a high, mid-cycle credit utilization ratio is reported.

The solution is to make multiple payments throughout the month to avoid using more than 30% of your available credit at any time. This will ensure that no matter when what you owe is reported to the bureaus, you’ll be in good shape.

2. You apply for every new card that hits the market

If you’re a rewards hound, the impulse to apply for the latest-and-greatest piece of plastic out there is natural. But caving in to temptation whenever a new card hits the market could end up doing harm to your credit.

Every time you apply for a new credit card or loan, you’ll lose points from your score. If several hard inquiries hit your report within just a few months, the hit will be bigger. This is because too many applications are associated with a higher credit risk.

Your best bet is to think carefully before obtaining new credit, and only move forward with the application if it’s a card or loan you really need.

3. You’re in collections and don’t know it

Payment history makes up the largest portion of your FICO credit score, a whole 35%. If you’ve missed a payment for so long that one of your accounts has gone into collections, this will clearly have a large, negative impact on your credit.

But the trouble is, some people who are in collections don’t know it. This is especially common with medical debts, because there’s sometimes confusion around whether the patient or the insurer is expected to pay. In the meantime, the doctor’s office gets tired of waiting for the cash and sells the account to a collector.

The only way to know if an account in collections is what’s dragging down your score is to pull your credit report and review it for negative information. Don’t worry, you won’t have to pay for this — you can get a free copy of each of your three credit reports (one from each bureau) every year from AnnualCreditReport.com.

If you do find an account in collections on your report, it’s a smart idea to pay it off. It will still appear on your credit report, but the newest generation of the FICO scoring model is going to ignore paid collections accounts. When it’s adopted, your score should go up if you paid up.

4. You just recently got your first credit card or loan

Fifteen percent of your FICO credit score is determined by the length of your credit history. If you’ve only recently gotten your first credit card or loan, this could be the cause of a lower-than-expected score.

The only thing you can do in this situation is to keep using credit responsibly (which means paying your bills on time and in full) and wait for time to pass. Before you know it, your score will be in great shape.

5. There’s an error on your credit report

According to a 2013 study by the Federal Trade Commission, one in five consumers had an error on at least one of their credit reports. Although many of these errors aren’t significant enough to affect a person’s credit score, some are. So if you’re surprised at how low your score is, a mistake on your credit report might be to blame.

Again, you’ll need to review each of your credit reports to see if an error is causing your score to lag. If you find one, be sure to start taking steps to have it corrected immediately — the sooner it’s fixed, the sooner your score will begin to bounce back.

How low can you go? image via Shutterstock

The post 5 Reasons Your Credit Score Is Lower Than You Thought — and What to Do About It appeared first on NerdWallet Credit Card Blog.

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Best Credit Cards That Waive Annual Fees for the First Year

Avoiding credit card fees whenever you can is always a smart idea. Luckily, there are a lot of great cards on the market these days that waive their annual fees for the first year you have your account open.

Not sure which one is best for you? Take a look at the Nerds’ top picks below:

Best overall: Chase Sapphire Preferred® Card

Apply Now

on Chase's

secure website

The Chase Sapphire Preferred® Card has a slight edge over the other cards that waive their annual fees for the first year because of its powerful combination of a high signup bonus and stellar rewards earning power. Every time you use the card, you’ll be getting 2 points per dollar spent on dining in restaurants and travel and 1 point per dollar spent on all other purchases.

Generally, Sapphire Preferred points are worth one cent apiece. However, they’re worth 25% more when redeemed for travel through Chase Ultimate Rewards, which drives the value of each point up to 1.25 cents. Plus, you’ll also have the option to transfer your points at a 1:1 ratio to participating frequent traveler programs. Not too shabby!

And don’t forget about that sky-high signup bonus: Earn 40,000 bonus points after you spend $3,000 in the first 3 months. Assuming you redeem through Chase Ultimate rewards, that’s $500 toward your next vacation.

Also, the Chase Sapphire Preferred® Card is a good choice for international travelers since it charges no foreign transaction fee and comes chip-enabled. This makes overseas swiping convenient and inexpensive.

Remember, there’s an Introductory Annual Fee of $0 the first year, then $95. But if you spend a lot on dining and travel, it’s probably a worthwhile expense when you have to start paying it.

Best for budget travelers: Barclaycard Arrival Plus™ World Elite MasterCard®

Apply Now

on Barclays's

secure website

If you’re not skilled at using frequent flyer programs to squeeze a lot of value out of credit card rewards points, the Barclaycard Arrival Plus™ World Elite MasterCard® is probably the right option for you. With it, you’ll earn 2 miles for every dollar you spend. Since each mile is worth $.01, you’re earning a rewards rate of 2%. But you’ll also get 10% of your miles back every time you redeem for travel, which effectively drives the rewards rate up to 2.2%.

One of the best things about this card is its flexibility when it comes time to redeem. You simply book your travel however you normally would with the card, then pay yourself back in the form of a statement credit with your miles. This means you can shop for the best deal with any airline or hotel chain and still use your rewards.

Plus, if you’re dreaming of an overseas getaway, the Barclaycard Arrival Plus™ World Elite MasterCard® has you covered. It charges no foreign transaction fee and comes chip-enabled with PIN capability.

Like the Chase Sapphire Preferred® Card, the Barclaycard Arrival Plus™ World Elite MasterCard® comes with a hefty signup bonus: Earn 40,000 bonus miles when you spend $3,000 or more on purchases in the first 90 days from account opening. Its annual fee is $89 - Waived first year, of course. All in all, it’s a great travel card to consider.

Best for hotels: Starwood Preferred Guest® Credit Card from American Express

If you stay in hotels frequently, adding the Starwood Preferred Guest® Credit Card from American Express to your wallet is something to consider. With it, you’ll earn up to 5 Starpoints per dollar spent at Starwood hotels and resorts and one Starpoint per dollar spent on all other purchases. When redeemed at hotels, the Nerds value Starpoints at a whopping 2.3 cents apiece.

However, using your Starpoints for hotel stays isn’t your only option. You can also use the “nights and flights” option to get airline miles and a few free nights in a hotel, or transfer your Starpoints to participating frequent traveler programs. The list of frequent traveler programs you can move your Starpoints to is impressive, so be sure to check it out.

The Starwood Preferred Guest® Credit Card from American Express comes with an exciting signup bonus: Earn up to 25,000 bonus points: 10,000 after your first purchase and another 15,000 after you spend $5,000 within the first 6 months of Cardmembership. There’s a $0 introductory annual fee for the first year, then $65. But keep in mind that it does charge a foreign transaction fee of 2.7%. If you travel abroad a lot, you’ll want to keep another card hand to avoid this charge.

Best for people who spend a lot on gas: Wells Fargo Propel 365 American Express

Apply Now

on Wells Fargo's

secure website

So far, we’ve only discussed credit cards that are good for people who travel frequently. But if most of your transit takes place behind the wheel, the Wells Fargo Propel 365 American Express is a great choice.

With this card, you’ll earn 3 points per dollar spent at gas stations, 2 points per dollar spent on dining out, and 1 point per dollar spend on all other purchases. Each point is worth $.01, and there’s no limit to the points you can earn. Plus, if you’re a Wells Fargo banking customer, you could also score an additional points bonus of 10%, 25% or 50%, depending on the type of account you have and your total assets.

When it comes time to redeem, you can cash in your points for travel, merchandise, gift cards, or cash back. No matter which option you choose, your points will hold their value; this adds a layer of flexibility to this card that many others lack.

The Wells Fargo Propel 365 American Express will get you started with a signup bonus: 20,000 points when you spend $3,000 in net purchases in the first 3 months. Its annual fee is waived the first year and 45 every year thereafter, and it charges no foreign transaction fee. If you frequently make purchases online from overseas retailers, this is something to consider.

A few other options

If none of the cards described above seem like a good fit, there are several other options out there that waive their annual fees for the first year. Here are a few to check out:

• Wells Fargo Propel World American Express


• United MileagePlus® Explorer Card


• Citi ThankYou® Premier Card


• Citi® / AAdvantage® Platinum Select® MasterCard®


• U.S. Bank FlexPerks® Travel Rewards Visa Signature® card

Happy swiping!

Waving image via Shutterstock

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7 Ways Your Credit Card Will Come in Handy This Fall

Admit it: Fall is your favorite time of year. And who could blame you? With the leaves creating beautiful scenery and a refreshing chill in the air, it’s easy to say goodbye to the sunburns and mosquito bites of summer.

To make the most of the season, keep your credit card within reach – it’ll likely come in handy more than once. In fact, here are 7 ways your plastic will be especially useful this fall:

1. You’ll earn double points with your Chase Sapphire Preferred® Card with every pumpkin spice latte you buy.

If you like to mark the beginning of fall with a pumpkin spice latte (or two), be sure to use your Chase Sapphire Preferred® Card to buy it. With this card, you’ll earn 2 points per dollar spent on travel and dining out, and 1 point per dollar spent on all other purchases. Because Starbucks counts as a restaurant, you’ll earn double points with every seasonal beverage you enjoy.

Nerd tip : If you’re not looking forward to the cold months ahead, save up all the bonus points you’re earning with the Chase Sapphire Preferred® Card for a tropical winter getaway. Just be sure to book through the Chase Ultimate Rewards portal – each of your points will be worth 25% more!

Chase Sapphire Preferred® Card
Apply Now on Chase's secure website starstarstarstarstar	Earn 40,000 bonus points when you spend $3,000 on purchases in the first 3 months from account opening. That's $500 in travel when you redeem through Chase Ultimate RewardsSM. Earn 5,000 bonus points after you add the first authorized user and make a purchase in the first 3 months from account opening. 2X points on travel and dining at restaurants & 1 point per dollar spent on all other purchases No foreign transaction fees, plus Chip and Signature enabled for international travel. 1:1 point transfer to leading frequent travel programs at full value — that means 1,000 Ultimate Rewards points equal 1,000 partner miles/points. 24/7 direct access to dedicated customer service specialists Introductory Annual Fee of $0 the first year, then $95		thumbsupPros No foreign transaction fee thumbsdownCons Has annual fee

Annual Fee	Signup Bonus	APR , Variable*	APR Promotions
Introductory Annual Fee of $0 the first year, then $95.	Earn 40,000 bonus points after you spend $3,000 in the first 3 months.	15.99% (Variable)	Purchase: None Transfer: None

2. The weather is getting chilly, so use your card to renew your Netflix subscription.

No one has time for a Netflix binge in the summer – there are pools to swim in, beaches to visit, suntans to work on. But as fall’s cold weather rolls in, cozying up in front of the TV for a House of Cards marathon starts to sound like fun. Use your card to renew your Netflix subscription, and you’ll rediscover a great way to while away the hours.

3. If your year-old leaf blower bites the dust, your credit card might be able to help.

Dealing with fall leaves in your yard can be quite a chore. If your year-old leaf blower quits halfway through the job, you might have a few choice words for it.

But if you purchased it with your credit card, you’re in luck. Since most cards offer extended warranty protection, there’s a chance you might not be out the any extra cash. Check with your issuer to see if your purchase is eligible – you’ll be back to leaf clearing in no time (hooray?).

4. If you’re taking a road trip to see the fall colors, your card has you covered.

If your family takes an annual road trip to see the fall colors, you can rest assured that if you rent a car, your credit card has you covered. All of the major networks (Visa, MasterCard, American Express and Discover) offer some type of rental car insurance. No need to buy a supplemental policy from the rental agency – use what you’ve saved to pick up a few extra souvenirs along the way.

5. You’ll earn extra cash back with your Blue Cash Preferred® Card from American Express as you shop for your Thanksgiving feast.

When October rolls around, many people start stocking up for their Thanksgiving recipes. If this sounds familiar, be sure to use your Blue Cash Preferred® Card from American Express. With it, you’ll earn 6% cash back for every dollar spent at supermarkets, up to $6,000 spent per year. You’ll also earn 3% cash back at gas stations and select department stores, and 1% cash back on all other purchases, all at an annual fee of $75.

Scoring a serious return when you buy the ingredients for your famous cranberry sauce amounts to picking the right card, so be sure to go with Blue Cash Preferred® Card from American Express every time.

6. Just bought the perfect fall boots, only to find them cheaper elsewhere? Call in your card for help.

Fall fashion can be expensive, so it’s seriously annoying when you find an item you just bought at a lower price from a different retailer. But again, your credit card might be able to help.

Several issuers and networks offer price protection, which means you may be eligible for a refund of the difference between what you paid and the better price. Be sure to check your card’s terms and conditions for more details.

7. Getting an early jump on holiday shopping? The right card will earn you extra rewards.

When it comes to holiday shopping, you can never start too early. Fall is the perfect time to hit the mall and knock a few gifts off your to-buy list, and using the right card could mean earning serious rewards.

For instance, in the fourth quarter of 2014, you’ll earn 5% cash back with the Chase Freedom® at select department stores, up to $1,500 spent. Plus, you’ll earn 1% cash back on all other purchases. That could really go far toward easing the budget burden of holiday shopping, so think about applying for the Chase Freedom® today.

Chase Freedom®
Apply Now on Chase's secure website starstarstarstarstar	Earn a $100 Bonus after you spend $500 on purchases in your first 3 months from account opening Earn a $25 Bonus after you add your first authorized user and make a purchase within this same 3-month period 0% Intro APR for 15 months on purchases and balance transfers. After the intro period, a variable APR of 13.99%-22.99% 5% Cash Back on up to $1,500 in combined purchases between October 1 — December 31, 2014 at Amazon.com, Zappos.com and select department stores You'll enjoy new 5% categories every 3 months like gas stations, restaurants and Amazon.com. It's free and easy to activate your bonus each quarter! Unlimited 1% Cash Back on all other purchases No annual fee and rewards never expire		thumbsupPros Bonus cash back categories No annual fee 0% for 15 mos on transfers

Annual Fee	Signup Bonus	APR , Variable*	APR Promotions
$0	Get a $100 Bonus after spending $500 on purchases in your first 3 months from account opening.	13.99% - 22.99% (Variable)	0% APR for 15 months on purchases and balance transfers

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