Credit Cards: When the Usual Tricks Don’t Work

Credit card tips and tricks can be found in every corner of the Internet. In fact, some are so popular that you’ll find them on almost every site you visit.

But what if you’re in a bind and the usual advice just won’t work? Don’t worry, the Nerds are here with solutions. Take a look at the details below – we’ll help resolve your toughest credit card dilemmas.

Problem: You have bad credit and won’t qualify for a balance transfer.

Solution: Consider a card with a low ongoing APR instead.

If you’re dealing with a mountain of credit card debt, you’ve probably heard time and again that transferring your balance onto a 0% card will save you a bundle on interest. But in order to qualify for a card that offers a primo interest rate promotion, you’ll usually need an excellent credit score. If your credit doesn’t exactly sparkle, this trick for saving money on finance charges won’t work.

But an often-overlooked alternative is applying for a card that offers a low ongoing APR, instead. Sure, paying 0% for a period of time with a balance transfer offer is preferable, but low APR cards tend to be easier to qualify for. Plus, moving your debt onto a card that’s charging an APR of, say, 10% will still cut down on what you’re paying in interest. If your current card is charging closer to 20% (which isn’t unheard of for folks with mediocre credit), refinancing with a low APR card might be a winning strategy for paying off your balance off faster.

Nerd note: Keep in mind that moving a balance from one card to another will almost always result in paying a fee. To avoid this, you might want to look into refinancing your debt with a personal loan from a local bank or credit union. These lenders are usually willing to work with customers with less-than-stellar credit, and again, you’ll likely score a rate that’s much lower than what you’re paying on your card.

Problem: Your income is irregular, so auto-paying credit card bills won’t work.

Solution: Use text or email alerts to stay on top of your payments.

Making your credit card payments on time is crucial to maintaining good credit. In fact, payment history makes up a whopping 35% of your FICO score, which is why many personal finance experts recommend setting up automatic payments for credit card bills. This way, you won’t have to worry about missing one.

But for freelancers and other professionals with irregular incomes, this tactic won’t do. If an automatic payment sends your checking account into overdraft, you’ll likely be out the same amount of money you’d pay in fees on a late bill.

The solution? Opt into text or email alerts from your credit card issuer that let you know when your monthly statement has closed and when the bill is due. This will give you a nice cushion of time to put your finances in order before the deadline to pay.

Problem: Your utilization is always high, and you can’t get a credit line increase

Solution: Start making twice-monthly payments on your card

If you tend to run a high balance on your credit card every month, your FICO score might be getting dinged because of your credit utilization ratio. You’ve probably heard that raising the credit limit on your card is a way to combat this, but again, you’ll have to qualify. If your income or credit won’t allow this, you’re probably wondering what to do next.

Actually, it’s simple: Just get into the habit of making twice-monthly payments on your card. This way, your credit utilization will remain low throughout your billing cycle and will look good to the credit bureaus no matter when your issuer sends them a report on your account.

Just be sure you’re forking over enough with each payment to keep your credit utilization ratio below 30% at all times, on all of your cards. Being mindful of this threshold will go far toward keeping your score in good shape.

Dog trick image via Shutterstock

The post Credit Cards: When the Usual Tricks Don’t Work appeared first on NerdWallet Credit Card Blog.

Source Article :http://bit.ly/1vVS4R6

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Credit Cards: When the Usual Tricks Don’t Work

Credit card tips and tricks can be found in every corner of the Internet. In fact, some are so popular that you’ll find them on almost every site you visit.

But what if you’re in a bind and the usual advice just won’t work? Don’t worry, the Nerds are here with solutions. Take a look at the details below – we’ll help resolve your toughest credit card dilemmas.

Problem: You have bad credit and won’t qualify for a balance transfer.

Solution: Consider a card with a low ongoing APR instead.

If you’re dealing with a mountain of credit card debt, you’ve probably heard time and again that transferring your balance onto a 0% card will save you a bundle on interest. But in order to qualify for a card that offers a primo interest rate promotion, you’ll usually need an excellent credit score. If your credit doesn’t exactly sparkle, this trick for saving money on finance charges won’t work.

But an often-overlooked alternative is applying for a card that offers a low ongoing APR, instead. Sure, paying 0% for a period of time with a balance transfer offer is preferable, but low APR cards tend to be easier to qualify for. Plus, moving your debt onto a card that’s charging an APR of, say, 10% will still cut down on what you’re paying in interest. If your current card is charging closer to 20% (which isn’t unheard of for folks with mediocre credit), refinancing with a low APR card might be a winning strategy for paying off your balance off faster.

Nerd note: Keep in mind that moving a balance from one card to another will almost always result in paying a fee. To avoid this, you might want to look into refinancing your debt with a personal loan from a local bank or credit union. These lenders are usually willing to work with customers with less-than-stellar credit, and again, you’ll likely score a rate that’s much lower than what you’re paying on your card.

Problem: Your income is irregular, so auto-paying credit card bills won’t work.

Solution: Use text or email alerts to stay on top of your payments.

Making your credit card payments on time is crucial to maintaining good credit. In fact, payment history makes up a whopping 35% of your FICO score, which is why many personal finance experts recommend setting up automatic payments for credit card bills. This way, you won’t have to worry about missing one.

But for freelancers and other professionals with irregular incomes, this tactic won’t do. If an automatic payment sends your checking account into overdraft, you’ll likely be out the same amount of money you’d pay in fees on a late bill.

The solution? Opt into text or email alerts from your credit card issuer that let you know when your monthly statement has closed and when the bill is due. This will give you a nice cushion of time to put your finances in order before the deadline to pay.

Problem: Your utilization is always high, and you can’t get a credit line increase

Solution: Start making twice-monthly payments on your card

If you tend to run a high balance on your credit card every month, your FICO score might be getting dinged because of your credit utilization ratio. You’ve probably heard that raising the credit limit on your card is a way to combat this, but again, you’ll have to qualify. If your income or credit won’t allow this, you’re probably wondering what to do next.

Actually, it’s simple: Just get into the habit of making twice-monthly payments on your card. This way, your credit utilization will remain low throughout your billing cycle and will look good to the credit bureaus no matter when your issuer sends them a report on your account.

Just be sure you’re forking over enough with each payment to keep your credit utilization ratio below 30% at all times, on all of your cards. Being mindful of this threshold will go far toward keeping your score in good shape.

Dog trick image via Shutterstock

The post Credit Cards: When the Usual Tricks Don’t Work appeared first on NerdWallet Credit Card Blog.

Source Article http://ift.tt/1y39EC7

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Best Credit Cards for Purchasing Your Holiday Gifts

It’s official: The holiday gift-buying frenzy has begun. If you’re feeling a little woozy about all the money you’re laying out, remember that one of the best ways to offset those costs is using the right credit card. After all, racking up big rewards brings the effective price of each gift down – plus, you’ll end up with a little something for yourself.

Not sure which card is best for the items on your to-buy list? Here are the Nerds’ top picks for every purchase you’ll make this December:

If you’re buying books or DVDs: Chase Freedom® - $200 Bonus

Apply Now

on Chase's

secure website

Shopping for books or DVDs (and lots of other things, actually) usually means spending a lot of time on Amazon.com. If this sounds familiar, you’ll want to use the Chase Freedom® - $200 Bonus this holiday season. Until Dec. 31, 2014, you’ll earn 5% cash back at Amazon.com, Zappos.com, and select department stores, up to $1,500 in combined spending. Plus, you’ll get unlimited 1% cash back on all other purchases.

Featured 5% categories change every quarter, so if you pick this card you’ll have a lot of opportunities to earn extra cash back throughout the year with this card. Also, it comes with a modest signup bonus: Get a $200 Bonus after spending $500 on purchases in your first 3 months from account opening. All these great perks come at an annual fee of $0, which means the Chase Freedom® - $200 Bonus is a card you’ll want to keep in your wallet for the holidays and beyond.

If you’re buying clothes: Discover it®

Apply Now

on Discover's

secure website

Do you need to buy a gift for a fashionista this year? If so, the Discover it® is a great pick. With it, you’ll earn 5% cash back on online and department store shopping until Dec. 31, up to $1,500 in combined spending. You’ll also earn 1% cash back on all other purchases.

But what’s really great about this card is that you’ll have access to Discover Deals, one of the best rewards malls on the web. It provides the opportunity to earn extra cash back, in-store discounts or statement credits on select purchases. This makes it the ideal card for most of your online and in-store clothing purchases.

Like the Chase Freedom® - $200 Bonus, the Discover it® charges an annual fee of $0, so it’s another rewarding and economical choice.

Nerd note : In the event that you go a little overboard with your holiday shopping, the Discover it® also provides 0% on purchases and balance transfers for 14 months, and then the ongoing APR of 10.99% - 22.99% Variable. This means you can stretch out your payments a bit, while still avoiding interest charges. Talk about a bargain!

If you’re buying gift cards: Blue Cash Preferred® Card from American Express

It might seem strange that we’re recommending the Blue Cash Preferred® Card from American Express for gift card purchases, but you’ll probably figure out where this is going quickly. First, the basics: With this card, you’ll earn 6% cash back at grocery stores (up to $6,000 spent annually), 3% back at gas stations and department stores, and 1% cash back everywhere else.

Given that so many grocery stores now sell gift cards to dozens (sometimes hundreds) of different retailers in their “gift card malls,” the Blue Cash Preferred® Card from American Express is a great choice for stopping by your local supermarket and stocking up. You’ll earn the 6% back on your spending, and since you’re getting it in the form of cash back, it’s easy to turn around and use your rewards for other gifts. Win-win!

You should also know that the Blue Cash Preferred® Card from American Express comes with a signup bonus: Get 100 Reward Dollars, redeemable for a $100 statement credit, after you make $1,000 in purchases with your new Card in the first three months. Plus, get one year of Amazon Prime after you sign up for a new membership with your Card and meet the spending requirement in the same time period. It does charge an annual fee of $75, but if you’re spending more than $27 per week at the grocery store throughout the year, you’ll make this back in rewards in no time.

If you’re buying tickets to an event: Citi ThankYou® Preferred Card — Earn 20,000 Bonus Points

Apply Now

on Citibank's

secure website

If you’d rather get your loved one an experience than a thing this holiday season, consider using the Citi ThankYou® Preferred Card — Earn 20,000 Bonus Points for dinner at a fancy restaurant and tickets to a show. In doing so, you’ll earn 2 ThankYou points for every dollar spent on dining out and entertainment and 1 ThankYou point per dollar spent on all other purchases.

We recommend that you use your ThankYou points to purchase gift cards or for cash equivalents – this is how you’ll get the most value out of each one. However, you can also redeem them for travel or merchandise if you want to.

In terms of a signup bonus, the Citi ThankYou® Preferred Card — Earn 20,000 Bonus Points offers a pretty nice one: Earn 20,000 bonus ThankYou® Points after $1,500 in card purchases within 3 months of account opening - redeemable for $200 in gift cards or other great rewards. Also, it charges an annual fee of $0* and provides access to other cool perks, like Citi Price Rewind and Citi Private Pass. In short, it’s a great card to keep on hand.

If you’re buying a big trip: Chase Sapphire Preferred® Card

Apply Now

on Chase's

secure website

Surprising a loved one with the trip of a lifetime is a great holiday gift idea. If you decide to go this route, consider booking with the Chase Sapphire Preferred® Card. You’ll earn 2 points per dollar spent on travel and dining in restaurants, and 1 point per dollar spent on all other purchases. Points are generally worth $.01 apiece, but if you book through Chase Ultimate Rewards, the value of each rises by 25%.

However, you’ll also have the option to transfer your points to participating frequent traveler programs at a 1:1 ratio. If you’re good at hacking frequent flyer awards charts, you could end up getting a lot more than $.01 out of each point.

If your travel surprise will take you overseas, the Chase Sapphire Preferred® Card has you covered. It charges no foreign transaction fee and comes chip-enabled.

Finally, you should know that the Chase Sapphire Preferred® Card comes with a stellar signup bonus: Earn 40,000 bonus points after you spend $4,000 in the first 3 months. It does charge an Introductory Annual Fee of $0 the first year, then $95, but most globetrotters will make up for this in rewards in no time. Happy holidays!

Purchasing holiday gifts image via Shutterstock

The post Best Credit Cards for Purchasing Your Holiday Gifts appeared first on NerdWallet Credit Card Blog.

Source Article http://ift.tt/1y39EC7

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Best Credit Cards for Purchasing Your Holiday Gifts

It’s official: The holiday gift-buying frenzy has begun. If you’re feeling a little woozy about all the money you’re laying out, remember that one of the best ways to offset those costs is using the right credit card. After all, racking up big rewards brings the effective price of each gift down – plus, you’ll end up with a little something for yourself.

Not sure which card is best for the items on your to-buy list? Here are the Nerds’ top picks for every purchase you’ll make this December:

If you’re buying books or DVDs: Chase Freedom® - $200 Bonus

Apply Now

on Chase's

secure website

Shopping for books or DVDs (and lots of other things, actually) usually means spending a lot of time on Amazon.com. If this sounds familiar, you’ll want to use the Chase Freedom® - $200 Bonus this holiday season. Until Dec. 31, 2014, you’ll earn 5% cash back at Amazon.com, Zappos.com, and select department stores, up to $1,500 in combined spending. Plus, you’ll get unlimited 1% cash back on all other purchases.

Featured 5% categories change every quarter, so if you pick this card you’ll have a lot of opportunities to earn extra cash back throughout the year with this card. Also, it comes with a modest signup bonus: Get a $200 Bonus after spending $500 on purchases in your first 3 months from account opening. All these great perks come at an annual fee of $0, which means the Chase Freedom® - $200 Bonus is a card you’ll want to keep in your wallet for the holidays and beyond.

If you’re buying clothes: Discover it®

Apply Now

on Discover's

secure website

Do you need to buy a gift for a fashionista this year? If so, the Discover it® is a great pick. With it, you’ll earn 5% cash back on online and department store shopping until Dec. 31, up to $1,500 in combined spending. You’ll also earn 1% cash back on all other purchases.

But what’s really great about this card is that you’ll have access to Discover Deals, one of the best rewards malls on the web. It provides the opportunity to earn extra cash back, in-store discounts or statement credits on select purchases. This makes it the ideal card for most of your online and in-store clothing purchases.

Like the Chase Freedom® - $200 Bonus, the Discover it® charges an annual fee of $0, so it’s another rewarding and economical choice.

Nerd note : In the event that you go a little overboard with your holiday shopping, the Discover it® also provides 0% on purchases and balance transfers for 14 months, and then the ongoing APR of 10.99% - 22.99% Variable. This means you can stretch out your payments a bit, while still avoiding interest charges. Talk about a bargain!

If you’re buying gift cards: Blue Cash Preferred® Card from American Express

It might seem strange that we’re recommending the Blue Cash Preferred® Card from American Express for gift card purchases, but you’ll probably figure out where this is going quickly. First, the basics: With this card, you’ll earn 6% cash back at grocery stores (up to $6,000 spent annually), 3% back at gas stations and department stores, and 1% cash back everywhere else.

Given that so many grocery stores now sell gift cards to dozens (sometimes hundreds) of different retailers in their “gift card malls,” the Blue Cash Preferred® Card from American Express is a great choice for stopping by your local supermarket and stocking up. You’ll earn the 6% back on your spending, and since you’re getting it in the form of cash back, it’s easy to turn around and use your rewards for other gifts. Win-win!

You should also know that the Blue Cash Preferred® Card from American Express comes with a signup bonus: Get 100 Reward Dollars, redeemable for a $100 statement credit, after you make $1,000 in purchases with your new Card in the first three months. Plus, get one year of Amazon Prime after you sign up for a new membership with your Card and meet the spending requirement in the same time period. It does charge an annual fee of $75, but if you’re spending more than $27 per week at the grocery store throughout the year, you’ll make this back in rewards in no time.

If you’re buying tickets to an event: Citi ThankYou® Preferred Card — Earn 20,000 Bonus Points

Apply Now

on Citibank's

secure website

If you’d rather get your loved one an experience than a thing this holiday season, consider using the Citi ThankYou® Preferred Card — Earn 20,000 Bonus Points for dinner at a fancy restaurant and tickets to a show. In doing so, you’ll earn 2 ThankYou points for every dollar spent on dining out and entertainment and 1 ThankYou point per dollar spent on all other purchases.

We recommend that you use your ThankYou points to purchase gift cards or for cash equivalents – this is how you’ll get the most value out of each one. However, you can also redeem them for travel or merchandise if you want to.

In terms of a signup bonus, the Citi ThankYou® Preferred Card — Earn 20,000 Bonus Points offers a pretty nice one: Earn 20,000 bonus ThankYou® Points after $1,500 in card purchases within 3 months of account opening - redeemable for $200 in gift cards or other great rewards. Also, it charges an annual fee of $0* and provides access to other cool perks, like Citi Price Rewind and Citi Private Pass. In short, it’s a great card to keep on hand.

If you’re buying a big trip: Chase Sapphire Preferred® Card

Apply Now

on Chase's

secure website

Surprising a loved one with the trip of a lifetime is a great holiday gift idea. If you decide to go this route, consider booking with the Chase Sapphire Preferred® Card. You’ll earn 2 points per dollar spent on travel and dining in restaurants, and 1 point per dollar spent on all other purchases. Points are generally worth $.01 apiece, but if you book through Chase Ultimate Rewards, the value of each rises by 25%.

However, you’ll also have the option to transfer your points to participating frequent traveler programs at a 1:1 ratio. If you’re good at hacking frequent flyer awards charts, you could end up getting a lot more than $.01 out of each point.

If your travel surprise will take you overseas, the Chase Sapphire Preferred® Card has you covered. It charges no foreign transaction fee and comes chip-enabled.

Finally, you should know that the Chase Sapphire Preferred® Card comes with a stellar signup bonus: Earn 40,000 bonus points after you spend $4,000 in the first 3 months. It does charge an Introductory Annual Fee of $0 the first year, then $95, but most globetrotters will make up for this in rewards in no time. Happy holidays!

Purchasing holiday gifts image via Shutterstock

The post Best Credit Cards for Purchasing Your Holiday Gifts appeared first on NerdWallet Credit Card Blog.

Source Article :http://bit.ly/120N0zk

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BelTowr Plots a Course to Build Small Businesses and Communities

Ryan Cave and Rajesh Krishnan converted their frustrations with banks into the motivation to start BelTowr, an online financial services provider designed for small businesses.

Tired of lenders who charge small business customers unreasonable checking account fees or penalize those who don’t maintain a minimum balance (and that’s if they can get a loan in the first place), the entrepreneurs developed a different model.

The company provides debit accounts for $10 a month and doesn’t charge customers “based on mistakes,” according to Cave, which may appeal to cash-strapped firms trying to survive and thrive.

They also share a dedication to giving back to their community as well, designating 20% of their monthly fee revenue to assist community projects.

Small businesses hit hard by the recent financial crisis and recession have been slow to recover, prompting questions about whether there’s a credit gap for the sector, according to Karen Gordon Mills, a senior fellow at Harvard Business School and the university’s Kennedy School of Government. In a July 2014 working paper, she said one answer may be the emergence of a “dynamic market of online lenders that are using technology to disrupt the small business lending market.”

BelTowr aims to enter the fray, describing itself as a provider of commercial banking services. The start-up, currently testing its products with initial customers, would join companies like OnDeck, Kabbage, Prosper, Lending Club, Fundera and Biz2Credit, according to Mills.

A commitment to community through its Something Better Fund helps to set belTowr apart from traditional banks, according to Cave. He elaborated on this and other aspects of the Portland, Oregon-based company’s business plan in a recent interview with NerdWallet. Here are some excerpts from that conversation:

Q: What is belTowr and how did it get started?

A: BelTowr is a nontraditional bank built for the sole proprietor and small business owner. We’re helping those caught between the needs/cost of a consumer and a commercial account by offering a service tailored to their business.

Q: How does belTowr work?

A: You can deposit in any way you prefer: ATM, wire, ACH, merchant account, etc. BelTowr issues you a personalized card to make purchases either point of sale or otherwise. We offer an intuitive web or mobile user interface for you to review statements and manage your money.

Q: Why focus on small business?

A: Small businesses are the backbone of the economy and are what create the culture of a neighborhood. Our mission is to empower a small business by creating a solution which is intrinsically good for it and the community it calls home.

Q: What makes belTowr special?

A: Our focus: Small business banking. Our fee structure: BelTowr’s accounts are very straightforward and highly transparent. Our accounts are $10 a month with no minimums/maximums and no fees based on mistakes. Our involvement in the community: From that $10 a month, $2 immediately goes to the Something Better Fund, which is used in conjunction with crowdfunding (for) community projects. It’s not based on the profit we generated that year, or how much is left after our executives are paid. It is part of our budget from day one, just like the electric bill or office lease.

Q: What are the biggest issues in small business finance?

A: Deception. They claim to be a partner to your business but set you up to fail using a friendly face to enforce deplorable policies. Small business owners generally don’t have the assets traditional banks value. BelTowr ignores the status quo to bring a useful and powerful tool to the small business owner while providing access to capital through carefully selected partners.

Q: How is belTowr funded?

A: We have been bootstrapping for 11 months and have reached a point where we need capital to move forward. We will be raising a modest seed through GoFundMe in a few months.

To find out more about belTowr, check out the company’s newsletter.

---

BelTowr founders Rajesh Krishnan and Ryan Cave/Photo courtesy of belTowr

The post BelTowr Plots a Course to Build Small Businesses and Communities appeared first on NerdWallet Credit Card Blog.

Source Article http://ift.tt/1y39EC7

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BelTowr Plots a Course to Build Small Businesses and Communities

Ryan Cave and Rajesh Krishnan converted their frustrations with banks into the motivation to start BelTowr, an online financial services provider designed for small businesses.

Tired of lenders who charge small business customers unreasonable checking account fees or penalize those who don’t maintain a minimum balance (and that’s if they can get a loan in the first place), the entrepreneurs developed a different model.

The company provides debit accounts for $10 a month and doesn’t charge customers “based on mistakes,” according to Cave, which may appeal to cash-strapped firms trying to survive and thrive.

They also share a dedication to giving back to their community as well, designating 20% of their monthly fee revenue to assist community projects.

Small businesses hit hard by the recent financial crisis and recession have been slow to recover, prompting questions about whether there’s a credit gap for the sector, according to Karen Gordon Mills, a senior fellow at Harvard Business School and the university’s Kennedy School of Government. In a July 2014 working paper, she said one answer may be the emergence of a “dynamic market of online lenders that are using technology to disrupt the small business lending market.”

BelTowr aims to enter the fray, describing itself as a provider of commercial banking services. The start-up, currently testing its products with initial customers, would join companies like OnDeck, Kabbage, Prosper, Lending Club, Fundera and Biz2Credit, according to Mills.

A commitment to community through its Something Better Fund helps to set belTowr apart from traditional banks, according to Cave. He elaborated on this and other aspects of the Portland, Oregon-based company’s business plan in a recent interview with NerdWallet. Here are some excerpts from that conversation:

Q: What is belTowr and how did it get started?

A: BelTowr is a nontraditional bank built for the sole proprietor and small business owner. We’re helping those caught between the needs/cost of a consumer and a commercial account by offering a service tailored to their business.

Q: How does belTowr work?

A: You can deposit in any way you prefer: ATM, wire, ACH, merchant account, etc. BelTowr issues you a personalized card to make purchases either point of sale or otherwise. We offer an intuitive web or mobile user interface for you to review statements and manage your money.

Q: Why focus on small business?

A: Small businesses are the backbone of the economy and are what create the culture of a neighborhood. Our mission is to empower a small business by creating a solution which is intrinsically good for it and the community it calls home.

Q: What makes belTowr special?

A: Our focus: Small business banking. Our fee structure: BelTowr’s accounts are very straightforward and highly transparent. Our accounts are $10 a month with no minimums/maximums and no fees based on mistakes. Our involvement in the community: From that $10 a month, $2 immediately goes to the Something Better Fund, which is used in conjunction with crowdfunding (for) community projects. It’s not based on the profit we generated that year, or how much is left after our executives are paid. It is part of our budget from day one, just like the electric bill or office lease.

Q: What are the biggest issues in small business finance?

A: Deception. They claim to be a partner to your business but set you up to fail using a friendly face to enforce deplorable policies. Small business owners generally don’t have the assets traditional banks value. BelTowr ignores the status quo to bring a useful and powerful tool to the small business owner while providing access to capital through carefully selected partners.

Q: How is belTowr funded?

A: We have been bootstrapping for 11 months and have reached a point where we need capital to move forward. We will be raising a modest seed through GoFundMe in a few months.

To find out more about belTowr, check out the company’s newsletter.

---

BelTowr founders Rajesh Krishnan and Ryan Cave/Photo courtesy of belTowr

The post BelTowr Plots a Course to Build Small Businesses and Communities appeared first on NerdWallet Credit Card Blog.

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Chase Sapphire Preferred Raises Signup Bonus Spend Requirement

There’s been an important change to one of the Nerds’ favorite travel credit cards: You’ll now have to spend more to get the signup bonus with the Chase Sapphire Preferred® Card. For details about this shift and other important information about the card, take a look at the details below.

You’ll now have to spend more to get the Chase Sapphire Preferred® Card signup bonus

In November 2014, Chase announced it was raising the minimum spending requirement to receive the signup bonus on its popular Chase Sapphire Preferred® Card. Currently, the signup bonus is: Earn 40,000 bonus points after you spend $4,000 in the first 3 months. Previously, customers only had to spend $3,000 in that same timeframe to receive the points.

This change means that the Chase Sapphire Preferred® Card now has one of the highest signup bonus spending requirements on the consumer credit card market. However, keep in mind its bonus is also a big one – it amounts to $500 to spend on travel if you redeem through Chase Ultimate Rewards.

We still love the Chase Sapphire Preferred® Card – here’s why

Even though you now have to spend more to get the Chase Sapphire Preferred® Card’s signup bonus, it’s still one of the Nerds’ top picks. With it, you’ll earn 2 points for every dollar spent on travel and dining out, and 1 point per dollar spent on all other purchases. Generally, Chase Sapphire Preferred® Card points are worth one cent apiece. However, if you redeem them for travel through Chase Ultimate Rewards, the value of each jumps by 25%.

Also, you’ll have the option to transfer your points to several popular frequent traveler programs at a 1:1 ratio. If you’re good at hacking frequent flyer award charts, this feature could help you wring up to $.02 (or more) out of each point.

Plus, the Chase Sapphire Preferred® Card is a great choice for international travelers. The card comes chip-enabled and charges no foreign transaction fees.

Finally, the Chase Sapphire Preferred® Card carries an Introductory Annual Fee of $0 the first year, then $95. In short, it’s a high value card that all globetrotters should keep in mind.

Chase Sapphire Preferred® Card too rich for your blood? Here are a few alternatives

If the signup bonus spending requirement on the Chase Sapphire Preferred® Card is simply too high for you, there is a $0 annual fee version of the card that might be a good choice. With the Chase Sapphire® Card, you’ll earn 2 points per dollar spent on dining in restaurants and 1 point per dollar spent on all other purchases. In terms of a signup bonus, it offers: 10,000 bonus points when you spend $500 on purchases in the first 3 months from account opening - that's $100 in travel rewards when you redeem through Chase Ultimate Rewards(SM)!

Not interested in a Sapphire card at all? Here are a few alternatives:

Barclaycard Arrival Plus™ World Elite MasterCard®

Apply Now

on Barclays's

secure website

The Barclaycard Arrival Plus™ World Elite MasterCard® is another Nerd favorite in travel credit cards, and you’ll quickly see why. With it, you’ll earn 2 miles on every dollar you spend. Miles are generally worth $.01 apiece, but since you get 10% of your miles back when you redeem them for travel, the rewards rate is more like 2.2%.

Speaking of redeeming, the Barclaycard Arrival Plus™ World Elite MasterCard® provides a lot of flexibility. You’ll be able to book your travel as you normally would, then pay yourself back with your miles in the form of a statement credit. This means you can arrange your trip with any airline, hotel chain, cruise line or discount travel site your heart desires and still use your rewards.

If you’re planning a trip abroad, the Barclaycard Arrival Plus™ World Elite MasterCard® has your back. It comes chip-enabled with PIN capability, and charges no foreign transaction fee. This will make swiping overseas cheap and convenient.

This card also comes with a killer 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 All in all, the Barclaycard Arrival Plus™ World Elite MasterCard® is a stellar card that we highly recommend considering!

BankAmericard Travel Rewards® Credit Card

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The BankAmericard Travel Rewards® credit card is another great card for folks looking to minimize fees. With it, you’ll earn 1.5 points on every dollar you spend. Each point is worth $.01, but if you’re a Bank of America® banking customer with a lot of money saved, you could score a points dividend of up to 75% with the Preferred Rewards program.

Like the Barclaycard Arrival Plus™ World Elite MasterCard®, the BankAmericard Travel Rewards® credit card allows you to redeem your points for nearly any travel purchase in the form of a statement credit. Again, this provides a lot of flexibility and you won’t have to worry about pesky frequent flyer devaluations cutting into the value of your rewards.

What makes the BankAmericard Travel Rewards® credit card really special is its rare trifecta of benefits that international, budget-conscious travelers will enjoy: It comes chip-enabled with PIN capability, charges no foreign transaction fee, and carries an annual fee of $0.

Finally, this card also offers a modest signup bonus: Online exclusive 10,000 bonus points if you make at least $500 in purchases in the first 90 days- that can be $100 towards travel purchases. If you’re looking to maximize rewards and minimize costs, the BankAmericard Travel Rewards® credit card definitely fits the bill.

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