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Credit Cards, Banking, and Cash Back

Michal Cheney

About Michal Cheney

Michal Cheney is a personal finance blogger who writes for several top personal finance blogs, such as Dough Roller and Go Banking Rates. She enjoys writing about money management, getting out of debt and planning for retirement. Her practical approach encourages folks to get serious about their relationship with their money.

The Best Grocery Credit Cards of 2020 | Up to 6% Rewards

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Some credit cards pay enhanced rewards on purchases at supermarkets. These cards can pay up to 6% cash back at the grocery store, although some also cap the amount that earns this increased reward. Here are all the details in our list of the best credit cards for groceries.

When it comes to saving money at the grocery store your first thought is probably a coupon. While coupons are a great way to cut your grocery bill, you can also save by using a cashback credit card. Cashback cards give you a percentage back on what you spend, thus saving you money.

Chase Limited Time Bonus on Groceries

Chase has just announced increased credit card rewards for purchases at grocery stores. The bonuses range from 3x to 5x rewards. The enhanced rewards run from May 1 to June 30, 2020. Here are the cards affected:

CardAccelerator
Chase Sapphire Reserve5X points
United Club5X miles
United Club Infinite5X miles
United Presidential Plus5X miles
Chase Sapphire Preferred3X points
Aer Lingus Visa Signature3X Avios
British Airways Visa Signature3X Avios
Disney Premier Visa3% Disney Rewards Dollars
Hyatt3X Bonus Points
World of Hyatt3X Bonus Points
Iberia Visa Signature3X Avios
IHG Rewards Club Premier3X points
IHG Rewards Club Select3X points
Southwest Rapid Rewards 3X points
Southwest Rapid Rewards Employee3X points
Southwest Rapid Rewards Plus3X points
Southwest Rapid Rewards Premier3X points
Southwest Rapid Rewards Priority3X points
United Explorer3X miles
United MileagePlus3X miles
United MileagePlus Awards3X miles
United MileagePlus Select3X miles

Here are the details from Chase:

“From May 1st through June 30th, 2020, Chase Sapphire Preferred and Reserve and most Chase co-branded cardmembers will either earn 5X or 3X total points or miles per $1 spent on grocery purchases – up to $1,500 per month. They’ll get the extra points or miles even when they order online for pickup or delivery from eligible grocery stores and grocery delivery services. There is no activation required. They’ll earn automatically.”

Marriott Cards Supermarket Bonus

In addition, Chase is working with Marriott to provide all Marriott cardmembers 6x total points per $1 spent on grocery purchases, up to $5,000. This offer is automatic and is valid from May 1 to July 31, 2020.

Here are the Marriott cards included in this 6x limited time bonus:

Marriott Bonvoy Boundless Credit Card

Marriott Bonvoy Boundless Credit Card
Marriott Bonvoy Boundless Credit Card
  • Bonus Offer: Earn 100,000 bonus points after you spend $3,000 on purchases in the first 3 months from account opening..
  • Earn a free night award (worth up to 35,000 points) every year after your account anniversary
  • Earn 6X points at participating Marriott Bonvoy hotels
  • Earn 2X Bonvoy points on all other purchasers
  • Earn Silver Elite Status each account anniversary, path to Gold Status after users spend $35,000 each year
  • Receive 15 Elite Night Credits granted each calendar year.
  • Unlimited Marriott Bonvoy Points
  • $95 Annual Fee

Marriott Bonvoy Bold Credit Card

Marriott Bonvoy Bold Credit Card
Marriott Bonvoy Bold Credit Card
  • Welcome Bonus: You’ll get 50,000 bonus points if you spend $1,000 on purchases with the card in the first 3 months.
  • 3x Rewards: Earn 3x Bonvoy points on every $1 you spend at Marriott Bonvoy hotels
  • 2x Rewards: Earn 2x Bonvoy points on every $1 you spend on travel purchases
  • 1x Rewards: Earn 1x Bonvoy points on all other purchases
  • You also get 15 Elite Night Credits every calendar year
  • No foreign transaction fees
  • No annual fee

Best Credit Cards for Groceries

The best credit cards for grocery shopping pay at least 3% in rewards. The above Chase cards meet that standard, although for a limited time. Here are our top supermarket cards from all issuers.

Chase Sapphire Reserve Card

Chase Sapphire Reserve Card
Chase Sapphire Reserve Card
  • Welcome Offer: Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 toward travel when you redeem through Chase Ultimate Rewards®
  • $300 Annual Travel Credit
  • 3X points on travel immediately after earning your $300 travel credit.
  • 3X points on dining at restaurants & 1 point per $1 spent on all other purchases.
  • $0 foreign transaction fees.
  • Get 50% more value when you redeem your points for travel through Chase Ultimate Rewards.
  • 1:1 point transfer to leading airline and hotel loyalty programs
  • Access to 1,000+ airport lounges worldwide after an easy, one-time enrollment in Priority Pass™
  • Select Up to $100 application fee credit for Global Entry or TSA Pre?®

Chase Sapphire Preferred Card

Chase Sapphire Preferred Card
Chase Sapphire Preferred Card
  • Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. These points are worth $750 in travel when you redeem through Chase Ultimate Rewards.
  • 2X points on travel and dining at restaurants
  • 1 point per dollar spent on all other purchases
  • $0 foreign transaction fees
  • 1:1 point transfer to leading frequent travel programs at full value
  • $ Annual Fee

Blue Cash Preferred® Card from American Express

Blue Cash Preferred® Card from American Express
Learn More
  • Welcome Offer: Earn $250 statement credit after you spend $1,000 on purchases in the first 3 months from account opening..
  • Earn Cash Back: 6% at U.S. supermarkets up to $6,000 per year in purchases (then 1%), and 6% Cash Back on select U.S. streaming subscriptions including  Spotify, Netflix, Hulu, HBO, ShowTime, Pandora, Apple Music, Amazon Music or Video (Does not include Prime membership).
  • Earn 3% at U.S. gas stations and on transit including taxis/rideshare, parking, tolls, trains, buses and more.
  • 1% on all other purchases. Terms and limitations apply.
  • With the Blue Cash Preferred® Card, you can start earning cashback. No rotating reward categories. No enrollment required.
  • Cashback is received in the form of Reward Dollars that can be redeemed as a statement credit. Cashback is earned only on eligible purchases.
  • 0% intro APR on purchases for 12 months, then a variable rate based on your creditworthiness and other factors.
  • Annual Fee: $95
  • Terms Apply

Amazon Prime Rewards Visa Signature Card

Amazon Prime Rewards Visa Signature Card
Amazon Prime Rewards Visa Signature Card
  • 5% cash back at Amazon.com and Whole Foods Market
  • 2% cash back at restaurants, gas stations and drugstores
  • 1% cash back on all other purchases
  • $70 Amazon gift card upon approval
  • No annual fee
  • No foreign transaction fees

Blue Cash Everyday Card from American Express

Blue Cash Everyday Card from American Express
Learn More
  • Welcome Offer: $150 statement credit after you spend $1,000 in purchases within the first 3 months.
  • Cash Back Rewards–
    • 3% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%);
    • 2% cash back at U.S. gas stations and at select U.S. department stores; and
    • 1% back on other purchases.
  • Note: Cash back is received in the form of Reward Dollars that can be easily redeemed for statement credits, gift cards, and merchandise.
  • Intro APR: 0% for 15 months on purchases.
  • No annual fee.
  • Terms Apply

Capital One® Savor® Cash Rewards Credit Card

Capital One® Savor® Cash Rewards Credit Card
Learn More
  • Early Spend Bonus: Earn $300 cash bonus after you spend $3,000 on purchases within the first 3 months
  • 4% Cash Back: Earn 4% cash back on dining and entertainment
  • 2% Cash Back: Earn 2% on groceries
  • 1% Cash Back: Earn 1% on all other purchases
  • Intro APR: 0% intro APR on purchases and balance transfers for 9 months
  • $0 intro annual fee for the first year, $95 after that
  • No foreign transaction fees

Chase Freedom

Chase Freedom
Chase Freedom
  • Signup Bonus: Earn a $200 Bonus after you spend $500 on purchases in your first 3 months from account opening
  • 5% Cash Back: Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter
  • 1% Cash Back: Earn 1% cash back on all other purchases
  • Intro APR: 0% Intro APR for 15 months from account opening on purchases and balance transfers
  • Free credit score, updated weekly with Credit Journey
  • No annual fee

Note that the Chase Freedom pays 5% on grocery purchases (excluding Walmart and Target) on up to $1,500 in purchases from now until June 30, 2020.

Store Brand Credit Cards

If you shop for groceries at specific stores, the store-branded credit cards often offer excellent rewards. I already mentioned the Amazon Prime Rewards Visa Signature above. It earns 5% cash back on purchases at Whole Foods.

Here are some other store-specific cards to consider.

Target RedCard: The Target RedCard pays 5% cashback on Target purchases in the store and online. The 5% even applies to purchases at Starbucks in Target stores. The card comes as either a credit card or a debit card. The debit card version made our list of the best prepaid cards.

Walmart Credit Card: Issued by Capital One, the Walmart card pays 5% cashback at online Walmart purchases, including grocery pickup and delivery. It pays 2% cashback on purchases at Walmart stores.

Costco Anywhere Visa Card by Citi: the Costco Card pays 2% cash back on all purchases at Costco and Costco Online. Frankly, as a grocery store credit card, it’s mediocre. The problem is that many of the other cards listed above don’t pay the enhanced rewards on groceries purchased at Costco or other wholesale clubs. As such, it can be your best bet on Costco. On the brighter side, it pays 4% cash back on gas and 3% back on restaurants and eligible travel purchases.

BankAmericard Cash Rewards™ Visa Signature® Card – Up to 3% Cash Back

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The BankAmericard Cash Rewards™ Visa Signature® Card is a rewards card ideal for those looking for a little of everything. The card offers excellent cash rewards, a $100 signup bonus, and a 0% introductory rate on purchases and balance transfers.

This card is one of the most popular on the site. It offers up to 3% cash back (see details below), a 0% introductory APR on purchases and balance transfers for 12 months, and a $100 cash signup bonus (again, see details below). And it manages to do this without charging an annual fee. Excellent or good credit required.

BankAmericard Cash Rewards™ Visa Signature® Card Snapshot

  • No annual fee
  • $100 online cash rewards bonus after you spend at least $500 on purchases in the first 90 days of account opening
  • Earn 1% cash back on every purchase, 2% at grocery stores and 3% on gas up to the first $1,500 in combined grocery/gas purchases each quarter
  • No changing categories and no expiration on rewards
  • 0% Introductory APR for 12 billing cycles for purchases AND for any balance transfers made in the first 60 days, then, 13.24% – 23.24% Variable APR. 3% fee (min $10) applies to balance transfers.
  • Get a 10% customer bonus every time you redeem your cash back into a Bank of America® checking or savings account
  • If you’re a Preferred Rewards client, you can increase that bonus to 25%-75%. Click “Apply Now” to learn more about Preferred Rewards.
  • More Details: BankAmericard Cash Rewards™ Visa Signature® Card

Rewards Program

There are several components to this card’s cash rewards program: (1) the $100 bonus; (2) 3% cash back; (3) 2% cash back; (4) 1% cash back; and (5) Bank of American customer bonuses:

1. $100 Bonus: Spend $500 within  the first 3 months and you will earn a $100 cash back bonus.

2. 3% Cash Back: Bank of America pays 3% cash back at on gas up on the first $1,500 in combined gas and grocery purchases each quarter. Note that the 3% is on gas purchases, but the limit combines gas and grocery purchases. I can hear you asking–where did the grocery purchases come from? I’m glad you asked.

3. 2% Cash Back: You’ll earn 2% on grocery purchases up to a combined spending limit of $1,500 on gas and groceries each quarter.

4. 1% Cash Back: On all purchases that fall outside these higher payout categories you will earn 1% cash back with no spending tiers or caps.

5. Bank of America Customers: You’ll earn even more if you bank at BofA. First, you’ll get a 10% customer bonus every time you redeem your cash back into a Bank of America® checking or savings account. And if you are a Preferred Rewards client, you can increase that bonus to 25%-75%.

BofA Cash Rewards

0% Introductory Rate

The BankAmericard Cash Rewards™ Visa Signature® Card offers an introductory rate of 0% for 12 months on purchases and for any balance transfers made in the first 60 days, then, 13.24% – 23.24% Variable APR. Note that there is a 3% fee (minimum $10) on balance transfers.

What we like

  • The $100 cash bonus
  • Up to 3% cash back
  • 0% introductory APR
  • No annual fee

What could be better

  • Spending caps could be higher
  • Requires Excellent/Good Credit

Citi® Hilton HHonors Reserve Card

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The Citi® Hilton HHonors™ Reserve Card is an ideal choice for those who frequently stay at Hilton Hotels and for those looking to get free stays at any of the Hilton properties.

Citi Hilton HHonors Visa SignatureThis Hilton credit card offers a fast way to earn 2 free night stays. It also has the highest reward payout on Hilton purchases at 10x points for every dollar spent. It does not, however, offer bonus HHonors points, as other options do (more on that below).

Citi® Hilton HHonors™ Reserve Card Snapshot

  • Earn 2 weekend night certificates good at select hotels and resorts within the Hilton portfolio after you make $2,500 in purchases within 4 months of account opening*
  • Earn 10 HHonors Bonus Points per $1 spent on hotel stays within the Hilton portfolio*
  • Earn 5 HHonors Bonus Points per $1 spent on airline and car rental purchases*
  • Earn 3 HHonors Bonus Points per $1 spent on all other eligible purchases*
  • Enjoy the benefits of HHonors Gold status as long as you are a cardmember*
  • No foreign transaction fees on purchases*
  • Travel with ease and enjoy global acceptance with your Citi chip credit card

Rewards Program

The card offers both bonus rewards and rewards based on your use of the card. We will start with the Bonus Rewards.

  • Earn 2 weekend night certificates good at select hotels and resorts within the Hilton HHonors™ portfolio after $2,500 in eligible purchases within 4 months of account opening
  • Earn an anniversary bonus of one weekend night (standard room, double occupancy) at select hotels and resorts within the Hilton Portfolio after you spend $10,000 on purchases each year (starting from your Annual Fee Date) and remain a cardmember.

With a reasonable spend requirement, 3 free night stays the first year and one every year thereafter more than covers the annual fee for this card.

On top of the bonus rewards, here’s what you earn when you make purchases with the card.

  • Earn 10 HHonors Bonus Points per $1 spent on hotel stays within the Hilton HHonors portfolio
  • Earn 5 HHonors Bonus Points per $1 spent on airline and car rental purchases
  • Earn 3 HHonors Bonus Points per $1 spent on all other eligible purchases

Using Your Rewards

To really figure out what these rewards will get you, you first need to take a look at the chart below. It all depends on where you want to stay. For example, you earn a free stay with as little as 7,500 points for Category 1 hotels. Here’s the chart from the HHonors’ website:


Here’s a list of the other hotel brands that are part of the Hhonors rewards program.

  • Waldorf Astoria® Hotels & Resorts
  • Conrad® Hotels & Resorts
  • Hilton Hotels & Resorts
  • DoubleTree by Hilton™
  • Embassy Suites Hotels™
  • Hilton Garden Inn®
  • Hampton Inn®
  • Homewood Suites by Hilton®
  • Home2 Suites by Hilton®
  • Hilton Grand Vacations®

Another perk is that you don’t have to use your rewards points for hotel stays. Hilton has partnered with cruise lines, car rental companies, and restaurants where rewards can be used. Hilton also offers the Hilton HHonors™ Shopping Mall where you can use rewards to shop online.

Hilton HHonors® VIP Status

The card automatically qualifies you for HHonors Gold status. This is significant. Without the card, achieving Gold status is a significant challenge. It requires the following:

  • 20 stays in a calendar year, or
  • 40 nights in a calendar year, or
  • 75,000 HHonors Base Points in a calendar year

Gold status provides the following benefits:

  • 25% ELITE STATUS BONUS: With Gold elite status, you automatically receive a 25% bonus on all the HHonors Base Points you earn.
  • 5TH NIGHT FREE: Silver, Gold and Diamond elite members will receive every 5th night free4 on Standard Room Reward stays of 5 nights or more.
  • HOTEL BENEFITS
    • Digital Check-In: choose your room, and customize your stay from your mobile device up to 24 hours in advance.
    • Complimentary in-room and lobby Standard Internet access during stays at Waldorf Astoria™ Hotels & Resorts, Conrad® Hotels & Resorts, Curio – A Collection by Hilton, Hilton Hotels & Resorts, DoubleTree by Hilton™, Canopy™ by Hilton, Embassy Suites Hotels™ and Hilton Grand Vacations™
    • Quick reservations and check-ins based on your room preferences
    • Late check-out
    • Express check-out
    • 2nd Guest stays free
    • Complimentary access to fitness centers and health clubs
    • Two complimentary bottles of water per stay (at Waldorf Astoria™ Hotels & Resorts, Conrad® Hotels & Resorts, Curio – A Collection by Hilton, Hilton Hotels & Resorts, DoubleTree by Hilton™, Embassy Suites Hotels™, Hilton Garden Inn™ and Hilton Grand Vacations™ hotels)

What we like about the Citi® Hilton HHonors Reserve Card

  • 2 free night stays
  • HHonors Gold status
  • Up to 10x rewards based on card usage
  • No limit on rewards you can earn
  • No foreign transaction fees

What could be better

  • $95 annual fee
  • Requires Excellent Credit
    Excellent Credit
    Credit cards for excellent credit are
    intended for those with a credit score of 700 or Higher.
    Get Your Free Score

Summary

  • Earn 2 weekend night certificates good at select hotels and resorts within the Hilton portfolio after you make $2,500 in purchases within 4 months of account opening*
  • Earn 10 HHonors Bonus Points per $1 spent on hotel stays within the Hilton portfolio*
  • Earn 5 HHonors Bonus Points per $1 spent on airline and car rental purchases*
  • Earn 3 HHonors Bonus Points per $1 spent on all other eligible purchases*
  • Enjoy the benefits of HHonors Gold status as long as you are a cardmember*
  • No foreign transaction fees on purchases*
  • Travel with ease and enjoy global acceptance with your Citi chip credit card
  • Regular Purchase APR: 15.74% (Variable)
  • Penalty APR:Up to 29.99%, based on your credit­worthiness
  • Annual Fee: $95
  • Late Payment Fee:Up to $35
  • Foreign Transaction Fee: None.
  • Ideal for those who frequently stay at Hilton hotel brands
  • Excellent card for international travel
  • Requires Excellent Credit
    Excellent Credit
    Credit cards for excellent credit are
    intended for those with a credit score of 700 or Higher.
    Get Your Free Score

Citi Diamond Preferred Card Review

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The Citi Diamond Preferred card combines three key features. It offers one of the longest 0% offers on purchases and balance transfers. To this it combines points rewards on purchases and no annual fee.

This card from Citi is unique in two ways. First, it offers the longest available 0% offer on balance transfers and purchases. Second, unlike many top balance transfer cards, it offers a points rewards program.  In this review we’ll look at its key features, including the 0% offer. We’ll also cover fees and rates, as well as other Citi perks that come with the card.

Review

Snapshot

Here are the key features of the Citi Diamond Preferred credit card:

  • Get 0% Intro APR on Balance Transfers for 21 months and on Purchases for 12 months. After that, the APR will be 14.24% – 24.24% based upon your creditworthiness.*
  • There is a balance transfer fee of either $5 or 3% of the amount of each transfer.
  • Citi Easy Deals(SM) Get what you want for less. Earn Citi Easy Deals Points for the purchases you make with your card. Redeem your points for great online deals on name-brand merchandise, gift cards and even local deals.
  • Let our 24/7 concierge service help book your hotel rooms, flights and more.
  • $0 liability on unauthorized purchases and Citi® Identity Theft Solutions.
  • No annual fee*
  • More details: Citi Diamond Preferred credit card

0% Introductory Rate

One of the best features of the Citi Diamond Preferred credit card is its 0% rate. On balance transfers the card offers 0% for 18 months and 0% for 18 months on purchases. The regular APR is between 14.24% – 24.24%, based on your creditworthiness.

Additional Citi® Diamond Preferred® Card Details

This card offers a variety of additional benefits for being a card member. Here is a list of some of the additional benefits the card offers:

  • Concierge Service: The Diamond Preferred Concierge Service can take care of just about everything, from booking flights and hotel rooms to purchasing concert tickets or making restaurant reservations. This service is also available 24/7 anywhere in the world.
  • Citi® Easy DealsSM: Enjoy members only savings with Citi Easy Deals, on a benefit that gives you access to great online deals on brands like Gap, CVS and Footlocker.
  • $0 Liability on Unauthorized Charges: Shop anywhere and never lose a penny on unauthorized charges. With $0 Liability you won’t pay for any unauthorized charges made on your Citi credit card.
  • Travel & Emergency Assistance: You’re protected when you’re traveling in the U.S. and abroad. Travel & Emergency Assistance include medical and legal referrals, lost luggage assistance, emergency transportation, and translation services. Also included in this service are MasterTrip Travel Assistance, Travel Services Medical Assistance and MasterLegal Referral Service.
  • Worldwide Travel Accident Insurance: Worldwide Travel Accident Insurance is a type of coverage that you hope to never need, but it may offer some financial help to you or your loved ones if a tragic accident does occur, up to $250,000 in compensation.
  • Citi with Apple Pay: With a simple touch you can pay in-app or at over 200,000 stores with the iPhone® 6, or in-app with the iPad Air™ 2 and iPad mini™ 3. Plus, you’ll still enjoy all of the security and benefits that come with your Citi card when you use Apple Pay to check out.

Credit Vs. Debit: Why Credit Card Purchases Are Safer, More Rewarding

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These days, most of us carry both a credit card and debit card in our wallets, but odds are we’re doing more swiping with our debit cards than anything else. (For a long time, I know I was.)

But did you know that there are a lot of benefits to using your credit card that you might be missing out on, including improvements to your credit score, cash back rewards and, most importantly, better fraud protection?

In many instances, credit cards offer many more benefits than debit cards, so long as you’re swiping responsibly. Here’s the argument for ditching your debit card (or at least moving it to the back of your wallet) for your credit card…

Improve Your Credit History

Credit scores are based on a lot of different factors, but one of the biggest is credit history. If you show credit card companies that you use credit actively and pay a good portion of your balance back (at least 30%) each month, your credit score will only improve. That set-it-and-forget-it myth to building credit by simply owning a credit card is just that – a myth.

The more active you are with your credit card, the more likely you are to be approved for a loan or another, better credit card in the future. Debit cards, however, do not have any impact on your credit score. Advantage: Credit Cards

Earn Rewards

No matter how many times you swipe your debit card, odds are you’re not getting any rewards in return. Airline miles, cash back, free hotel nights – these are ALL things you can earn when you become a regular credit card user. Think about all the items you purchased using your debit card this month; imagine if you received even 1 or 2% cash back on those purchases?

These points/rewards can add up over time, and some credit cards offer even more cash back on specific categories throughout the year. (Gas, groceries, etc.) So, depending on what you’re purchasing and what kind of credit card you have, you can earn some serious rewards over time. Can you recall any type of reward you earned for using your debit card? Me neither. Advantage: Credit Cards

[box]

Update: This card is no longer available, but you can view other cash back cards here.
The TrueEarnings® card from Costco and American Express is an ideal card for earning cash back on your gas purchases. As a matter of fact, the card gives 3% cash back on gasoline at U.S. stand-alone gas stations. Plus, it’s an American Express® Card and Costco membership card, with no annual fee for Costco members.
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Fraud Protection

Let’s get one thing straight: Your bank DOES protect you from fraudulent categories. However, if you’ve ever had to dispute an unauthorized charge tied to your bank account, then you know that the process can be…frustrating. And time consuming.

However, if you’ve ever attempted to use your credit card in a location not generally tied to your home address (say, Las Vegas), then you know that credit card companies will generally contact you upon completion of a transaction to verify that it’s you. You may have even had your card denied from making the transaction, as credit cards are better equipped to stop fraudulent charges in their tracks.

Plus, debit cards are attached to one’s bank account, so if an identity thief gets a hold of this precious information, your entire personal finance folder could be at risk. On the contrary, credit card accounts are isolated, and most credit card companies include 100% fraud protection. (DON’T sign up for a credit card without confirming this first.) Overall, the risks of using a credit card are marginally lower and the chance of protection better versus a debit card. Advantage: Credit Cards

Finance Management

This is the only category in which we’ll give debit cards the nod over credit cards, since you can only spend what you have in your checking account. Credit cards can be dangerous if you’re an overzealous spender, and credit cards with higher limits can get you in the most debt trouble if you’re not responsible. Those risks simply aren’t there if you use your debit card exclusively, especially with overdraft fee protection. Advantage: Debit Cards

If you’re worried that you or your college student isn’t quite ready for the responsibility of a credit card, start with a low limit, low risk credit card to begin. Or, get in the habit of swiping responsibly (with, say, a prepaid debit card) before placing that shiny new credit card in your wallet. It will save you in the long haul.

Overall, the benefits to using your credit card over your debit card can be exponential; just make sure you know how to manage your finances responsibly before jumping into the world of credit. Set budget limits, only spend what you need and remember to pay back your credit card balance in full at the end of each month to avoid interest fees. From there, you can take advantage of all the perks to owning a credit card.

[box type=”note” icon=”none”]This post is a guest post from Jason Bushey, Vice President of Creditnet.[/box]

How to Choose the Best Credit Card

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There isn’t a week that goes by that my mail box or inbox isn’t flooded with credit card offers. I get 0% balance transfer credit card offers, gas reward card offers, travel reward offers, and hundreds more. With all these offers competing for our business, how do we choose the best credit card?

While sifting through credit card offers doesn’t sound like much fun, the good news is there are specific things you can look for to make this task less daunting. The goal is to find the best credit card offer for you, and that all starts with knowing how to evaluate a card offer. The Federal Reserve has a website that can help you navigate the world of credit, but it won’t help you pick a specific card.

So to get you started, we have identified the most important things you should look for in an offer so you can choose the best credit card!

Why Do You Want a Credit Card?

The very first step is to ask yourself why you want a card in the first place. Some want to build their credit. Perhaps you have no credit, limited credit, or even poor credit. If that’s your primary purpose for getting a card, look at cards for people with poor credit.

In contrast, you may be searching for a specific type of reward card, such as cash back, points, or miles. If so, you can narrow your search to cards that offer these benefits. And of course, you may be in search of low interest cards. Whatever your objective, the key is to understand why you want a credit card before you begin your search. Knowing what you want will save you time and improve the chances that you’ll get a card that meets your financial needs.

Credit Card Fees

It’s important to pay attention to credit card fees. Credit cards come with set fees everybody must pay and potential fees depending on how you use the card. Common fees may include an annual fee to have the credit card, a balance transfer fee, fees for late payments, and fees for exceeding the credit limit of your card. You should make sure you understand how much these fees are, and more importantly, how to avoid them. Here are a few things to look for:

  • With an annual fee, make sure it is reasonable for you. Not all credit cards require an annual fee, however, so it is worth shopping around to get the lowest fee or no fee, especially if you pay off your balance each month.
  • Be aware of balance transfer fees when making a balance transfer. First understand how much the credit card company will charge you for the balance transfer – usually it’s between 3% to 5% of the amount you transfers. There are some cards that offer No Fee Balance Transfers, but most cards charge this fee.
  • Some cards even charge a fee for making a payment over the phone, but this fee is avoidable. As an alternative you can make your payment online or mail your, both of which are free!

Introductory Interest Rates

It’s always important to know the interest the card company will charge. The interest rate is set in part based on your credit score. This means that not everybody with the same card will be charged the same rate. That’s another reason to keep your credit score in good shape. But you must pay particular attention to any introductory rates.

Introductory interest rates are typically low interest rates (often 0%) on purchases, balance transfers, or both that last for a set period of time. These introductory rates can last just a few months, or even longer with some of the Best Offers. But the point is that they don’t last forever. And it’s important to make sure you understand two things: when the introductory rate ends and what the regular rate will be thereafter.

Understand the Rewards Programs

Many credit card offers today come with some type of rewards program. Whether you’re looking for points to redeem for travel, cash back rewards, 0% offers, or some other program, it’s important to understand the terms and conditions of the rewards offer. Many programs offer introductory specials that last for a limited time, for example. Some gas reward programs offer as much as 10% cash back on gas purchases, but only for a limited time.

Whatever the terms are, it’s critical to simply take a few minutes to read through the program so you understand the benefits the credit card offers. Also, consider any bonus offers that might be available. Finding a good bonus offer can be a deciding factor when figuring out which card you should go with.

Credit Requirements

Each credit card offer has some sort of credit requirement for the applicant. You should pay attention to this and only apply for cards you think you can be approved. For example, if a card requires you to have excellent credit, but you know your credit is only fair, then don’t apply for that card. Instead, find a card that is designed for people with fair credit.

Apply for cards that are within your credit range so you are more likely to get approved. Here are the credit ranges you typically see: No/Limited History, Poor Credit, Fair Credit, Good Credit, and Excellent Credit.

Credit Card Issuer

These days the credit card issuer might not be as important as it once was. Most places accept just about all types of cards. However, it might be something you want to consider. When you think of credit cards, you probably think of companies like Visa, MasterCard, American Express and Discover. The question is does it matter what type of card you get? In answering that question for yourself, here are a 3 things to keep in mind:

  1. Visa and MasterCard don’t actually issue credit cards. Instead, they serve as an intermediary between the merchant that accepts credit cards and the bank that issued them.
  2. Discover and American Express act as both the bank and intermediary all in one.
  3. Visa and MasterCard are the most widely accepted credit cards available. American Express is more widely accepted than Discover.