credit card – Page 2

Tangerine Cashback Credit Card

October 30, 2016 By Samantha 6 Comments

Tangerine cashback credit cards are offered by Scotiabank-owned Tangerine bank. They are available exclusively in Canada. It’s one of the most popular cash back credit cards available in Canada.

Overview

The main draw of the Tangerine cashback credit cards is that there is no annual fee attached to it. Each purchase a user makes using the Tangerine cards earns cash back. The earned rewards can be deposited directly back to the credit card account so that it applies towards the balance.

A user has to select 2% money-back categories to get 2% cash back on these purchases, plus 1% on all other purchases. Tangerine credit cards are usually attached to a Tangerine savings account, so the rewards can easily be deposited. Cashback rewards deposited to the savings accounts are treated just like other savings deposits and will earn interest. Users can choose the redemption option on the savings accounts and choose two 2% cash back categories. The other option is to have the money directly deposited into a credit account, where the rewards will be applied against the other balance.

The advantage of Tangerine is that rewards do not need to be requested in advance. Rewards are also unlimited and are not subject to a throng of restrictions. Lack of annual fee means users can get cashback without rewards being deducted by service charges. Money-back rewards are also awarded on a monthly basis, rather than an annual basis.

It’s important to note that white there is no annual fee, there are several charges for other transactions. Each foreign currency exchange will have a 1.50% charge added to the converted transaction amount. Cash advances are $2.50 in Canada and $5 outside Canada. Balance transfer charge is 1% of the transfer amount or a minimum of $5. Dishonoured payments cost $25. The overcharge limit is $20, and only one overcharge payment is allowed each month. If you want to print a past statement, it will cost you $5. No charges apply to print current monthly statements.

Tangerine cashback cards are for personal use only, and businesses are not issued these cards. A single card can have up to 5 authorized users attached to the account. These authorized users will be able to make purchases and can take cash advances on the individual credit cards issued to them. However, authorized users cannot change the credit limit on the account or request balance transfers to other accounts. The primary cardholder will be responsible for paying the total balance on the account. It’s important to note that the primary cardholder is responsible for any and all transactions authorized users make.

Users can change the 2% money-back categories after activating the card anytime. Changes will take effect once the first monthly statement arrives. Users have the freedom to request changes throughout. However, existing categories must have been in place for 90 days before the changes can be implemented.

Pros and Cons

Pros

No annual fee being charged. Most money-back credit cards have annual fees of close to a $100.
Cash back is unlimited.
Users receive 4% cash back as a welcome bonus for the first 90 days.
After the first three months, users can receive 2% cash back on any two categories of their choosing, and an additional 1% cash back on all other purchases.
No earning caps or restrictions imposed on non-category purchases.
Cardholders can choose two categories from 10 options, which covers expenses such as gas, clothes, electronics, pharmacy, and certain recurring bill payments.
Freedom to change categories any time as wished.
Cash back rewards can be deposited to a savings account if desired.
Rewards are granted automatically. No requesting process necessary.
Add up to 5 authorized users to a single account.
Schedule automatic payments online.

Cons

No travel perks.
While the Tangerine cashback card can be used outside Canada, transactions may be limited or restricted considering international banking regulations and safety of overseas transactions.
A 1% balance transfer charge applies.
Balance transfers between authorized users is not allowed.
Overcharging is limited to only $20, and only one overcharge is allowed per month.

Comparison to Other Canadian Cashback Credit Cards

Currently, Tangerine cashback credit cards are highly favoured by consumers over other Canadian credit cards available on the market such as American Express Simply Cash Card and Rogers Platinum MasterCard.

One of the biggest advantages that Tangerine has is that cash back is unlimited and is deposited automatically without the need for formal requests. Users often have to make requests and sort through complicated bonus rewards programs to get the money-back on other similar cards.

Most cashback rewards programs offer bonuses at the end of each year. Tangerine cards offer cashback rewards on a monthly basis. Redeeming rewards is effortless and convenient. The rewards can be arranged to be deposited to a savings account or towards the balance of the account. This is an option absent from many other similar programs.

While the Tangerine card charges 1.5% foreign transaction fee, this is quite low compared to what many other money-back credit cards charge. Most offer rates closer to 2.5%.

There are other cards offering flat 2% to 4% rewards and bonus points for all purchases. However, these also require cardholders to show a minimum monthly income of $6,000 or more. The Tangerine card’s monthly income requirement is much lower. So, this is a good option for entry-level workers and those firmly in the mid-income category.

As there is no annual fee, the Tangerine credit card stands as a desirable alternative to cash back cards that demand premium yearly service charges.

Other similar programs, like American Express’s Simply Cash, offers 1.25% money back on all purchases. Tangerine offers only 1% money back on all purchases. But remember, this is in addition to the 2% you get on selected categories. It’s easy to apply the higher rate for transactions you tend to conduct more frequently, like paying for gas, and also earn rewards for non-frequent transactions, like buying clothes, as well.

Capital One Costco Platinum MasterCard Review

June 23, 2016 By Samantha 6 Comments

Capital One^® Costco Platinum is a credit card available to Costco members which offers money back and plenty of added incentives. Rewards credit cards that feature cash back save money and also offer travel and other rewards.

Quick Overview of the Card

Capital One^® Costco allows holders to earn generous cash back on regular, restaurant, and gas purchases but the percentages vary. You will earn 1 percent on daily purchases, 2 percent on gas, and 3 percent on your restaurant purchases.

Interest rate (cash advances, transfers, purchases): 19.75 percent
Annual fee: none

Note that transferring balances is currently not an option. On the good side, the card comes with added perks such as platinum benefits, including extended warranty and price protection, as well as insurance and travel benefits such as travel assistance, baggage delay, and travel accident insurance.

It is a good idea to check for fees and rates that apply, including default rates, foreign currency conversion, minimum payment, etc. The current default rate is 25.9 percent if you miss your due date and are late on your payments. It also pays to check the foreign currency conversion rate if you frequently travel or shop in a foreign currency. With Costco MasterCard^® Canada, the current foreign currency conversion rate on this card is 2.5 percent of the converted amount. There are other fees to watch for, including dishonored payment, balance transfer, over the limit, etc.

Who Is This Card for: Target Demographics

This Costco MasterCard^® is an excellent choice for customers who make frequent purchases and want to earn cash back. The more purchases you charge on the card, the more you earn based on the percentages above. Keep in mind that this card is the perfect choice only if you are a Costco member, allowing you to take full advantage of all benefits. And if you are not, you are free to apply for membership and then apply for the card. To do this, you will be asked to select a region to join Costco. You are also free to choose from gold star, business, and executive membership. Business membership, for example, is offered to ranchers, farmers, government agencies, non-for-profits, managers, and business owners.

How/Where to Apply?

There are different ways to apply with Capital One^® Costco, and one is to verify that you are a Costco member and fill out an online application. All you need is to fill your names and membership number. If you need help, you can call Costco Card Capital One^®, and they will be happy to assist you. The Costco MasterCard application is easy to fill, whether online or in-store, you are asked to provide your financial and personal information.

Pros of the Card

There are plenty of benefits for members, one being that cashback credit cards save money, and there is no threshold or limit on the amount you can earn. The Capital One^® Costco Platinum MasterCard^® offers money back in the form of rebate coupons that can be used in-store. Purchase assurance is an added benefit and so is car rental collision in case a rental vehicle is stolen or damaged. Zero liability is also an added benefit to protect members in case of unauthorized use. You can rest assured that your account will be monitored on a regular basis for fraudulent activity.

Cons of the Card

On the downside, customers only get 0.5 percent cash back on the first $3,000 spent on purchases. This is an incentive to spend more but it is a bad idea to go over the limit in an attempt to earn more. On the good side, members earn money back everywhere (at the pump, while dining, etc.) and not just at Costco locations.

How Does the Card Compare to Other Issuers and Major Canadian Competitors?

The Costco Canada credit card offers a good alternative to other cashback options but it pays to shop around and compare different rewards credit cards. Cashback cards are offered by major issuers such as the Scotiabank, MBNA, and other banks, unions, credit card companies, etc. Scotia Momentum Visa Infinite, for example, is offered by Scotiabank and features 1 percent cash back on regular purchases. However, in comparison to Capital One^® Costco, customers earn 4 percent back on gas purchases. The SimplyCash Card is also a cashback option offered by American Express that features money back in the form of statement credit. Customers earn 2 percent back.

Any Better Alternatives to This Card?

This depends on a number of factors such as whether you use one or multiple cards, whether you pay the minimum only, the annual fee and interest rate, etc. If cash back is your thing, then there are plenty of options. TD Canada Trust, for example, features a cashback card that allows you to earn 0.75 percent back. This looks like a less generous offer than Costco’s but customers benefit from perks such as free authorized users, automotive features, travel benefits, and a lot more. Optional coverage is also available.

Were There Any Customer Complaints/Scandals after the Launch?

While the launch was quite successful, the number of people who chose to become Costco members was larger than expected. Customers complain about problems such as confusing statements, slow resolution, frequent fraudulent activity, and relatively low credit limits. Other major issues are no automatic monthly payments, slow payment processing, and long hold times. Costco representatives announced that they were working hard to resolve these by allocating more resources.

How Does This Card Compare to the Old Costco Partner AMEX?

The major reason to choose an AMEX card was their long-time partnership with Costco. Costco assured existing and new customers that they would have the opportunity to earn generous rewards despite the split-up with AMEX.

In the end, how does the former AMEX card compare to the new Platinum MasterCard? It seems that the launch is a win for cardholders in that the old card has an annual $4,000 limit in purchases. The best part, of course, is that the transition has no effect on your credit score.

6 Steps to Reduce your Credit Card Debt by Thanksgiving

September 21, 2015 By Samantha Leave a Comment

There are many benefits to dealing away with debt within a short period, the most important being less stress and more money to spend on leisure, groceries, and home improvement.

1. Create a Budget

It is a good idea to create a budget to find out where your hard-earned money is going. The first thing to do is to list your combined income, including wages and salaries, bonuses, commissions, rent, and other sources of additional income you may have. Then make a list of your ongoing expenses such as mortgage payments or rent, groceries, cleaning detergents and cosmetics, daycare, clothing, and utilities (gas, phone, internet, water, etc.). Compare your expenses and income to find out if you spend more than you can afford.

2. Cut Back on Some of Your Expenses

Now that you have a budget, it is time to discuss different ways to cut on some expenses and use the money to repay any outstanding balances. If you spend too much on dining, for example, think of preparing homemade meals for your family. There are other ways to save on monthly or ongoing expenses, and one is to save money on transportation. You can do this in different ways – sell your vehicle, use public transportation (e.g. subway, bus, train), car pool to work, etc. In addition, you can save on debt in at least several ways by consolidating student or consumer loans, refinancing, and transferring high interest balances. There are automatic debt repayment plans as well.

3. Look for Additional Sources of Income

If you are unemployed or underemployed or have a seasonal job, then you may want to look for additional sources of income. One option is to look for part-time employment or a second job to increase your income. There are other ways to make money in the form of passive income. One is to open a high interest savings account to earn a higher yield. Another option is to invest in other low-risk products such as certificates of deposit or government securities. This is provided that you have some free cash on your hands.

4. Increase Your Payments

This is one way to save on interest charges and repay outstanding balances over a shorter period for a debt-free future. Always try to pay more than the minimum, especially on high-interest credit cards. If you have a low-interest card, you may want to use it to make payments. Note that if you only pay the minimum on a high-interest account, charges accumulate over time, and you are more likely to be late on your payments. Late and missed payments can have a negative impact on your score and future ability to borrow.

5. Reduce your interest rate

There are several ways to reduce the interest rate, and the most obvious one is to shop around for cards with low interest rates. In fact, some financial institutions actually offer such cards and advertise very low rates of about 6 – 8 percent. This is the standard rate provided that you make on-time payments. Penalty rates are usually significantly higher and apply to late and missed payments. Another option is to apply for a balance transfer card. If you have high-interest cards, then you pay a lot in charges, especially if you only pay the minimum each month. If you use a card with a high interest rate, then you should always try to cover the full amount. Otherwise it is better to use a low-interest product or transfer your existing balances to a card with a promotional period and a low rate. There are good balance transfer cards with long promo periods of 12 – 18 months and zero or a very low rate over the intro period. A third option is to contact your issuer and try to negotiate a lower rate. If you are a regular customer with a steady payment history and healthy credit score, they may actually agree to do this to keep you in.

6. Use Cash or Debit

This is a good idea, especially if you have multiple card accounts and a lot of debt to sort out. Either use your debit card to make payments online and in-store or carry cash with you. You may want to take small amounts with you to avoid the temptation to make frivolous purchases and overspend.

Conclusion

As you can see, there are many ways to reduce your debt load by Thanksgiving, from developing a budget and finding additional sources of income to trying to reduce the interest rate and using cash. If you have multiple debts, including consumer loans, mortgages, and credit cards, you may want to develop a repayment plan to get rid of debt faster.

Find a Low Interest Balance Transfer Credit Card

March 3, 2015 By Samantha 1 Comment

Balance transfer cards are often used to move high interest balances to a card with a low interest rate. This helps save on interest and pay down existing balances over a shorter period of time. Also known as debt consolidation, borrowers with multiple high interest cards often transfer their balances elsewhere to benefit from a zero or low interest introductory rate.

I Get a Lot of Balance Transfer Promotions in the Mail. What Happens after the Introductory Period Expires?

Many issuers advertise balance transfer cards by mail as a way to attract new clients and increase their customer base. When the introductory period expires, the standard rate applies to all purchases charged on the card. The standard rate varies from issuer to issuer and can be as high as 30 percent. Usually financial institutions offer rates ranging from 11.99 to 21.99 percent, based on your credit profile. Applicants with a history of missing or late payments are usually offered high standard rates.

When the introductory period is over, interest payments increase, and it is a good idea to pay the full amount. If you only pay the minimum, interest charges accumulate with time.

Is Balance Transfer for Me?

This depends on many factors, including interest charges on all cards held, penalty interest, credit limit, grace period, income level, and more. Look at different offers, rates, transfer fees, and criteria for approval. Some financial institutions only accept applications from clients with stellar credit while others have more lenient requirements. In addition to your credit profile, consider how many balances you have, whether late or missing payments are an issue, and if a low interest card with an intro period will help you pay down your card debt. This depends on the length of the introductory period and the amounts owned. As a rule, a balance transfer is a good choice if you find it difficult to keep track of due dates and monthly payments and miss payments as a result. This can be a problem, especially if you have a fair or poor credit score. Your score is likely to suffer.

Transferring existing balances also makes sense if you hold multiple cards and pay the minimum only. In this case you pay a lot in interest charges which makes card debt expensive. Whether this is a good option also depends on the types of cards held. Department store cards, for example, charge higher interest rates. Finally, you may want to consider your financial situation and short- and long-term goals and whether alternative solutions make more sense. Depending on the types of debt held, there are alternatives such as credit counseling, negotiation with creditors, and individual voluntary arrangement. Other alternatives include debt restructuring, bankruptcy (as a last resort), and formal proposal. A balance transfer is a good choice if you mostly have credit card debt (i.e. revolving credit). In any case, ask for charges such as transaction fees, the nominal rate, the teaser rate, and others. Most banks offer a teaser rate over a period of 6 to 15 months.

How to Find a Low Interest Balance Transfer Credit Card

Check with different issuers, including online banks and brick-and-mortar banks, caisses populaires, unions, and credit card companies. If you are a union member, this may be a good starting point. Credit unions usually offer cards with affordable rates and are more willing to work with borrowers with average or compromised credit. Many issuers offer cards by Discover, MasterCard, American Express, and Visa. Some financial establishments also offer cards with low intro rates and perks such as cash back, a long introductory period of 18 months, no annual fee or annual fee waivers, and many others. Ask whether they can offer a potential savings estimate provided that you make on-time payments. Some issuers also offer one-time bonuses, and holders enjoy additional savings. To find a low interest card, also check with major banks such as MBNA, Scotia Bank, CIBC, and others. You may also ask your family, colleagues, and friends about their credit card experience.

Top 3 Balance Transfer Credit Cards

MBNA, President’s Choice Financial, and Scotiabank offer cards with premium benefits and optional extras. Some cards offer perks such as extra bonus points, discounts, and competitive standard rates.

Scotiabank Value® VISA card

Scotiabank offers a Visa card with a low intro rate of 3.99 percent. The best part is that the bank charges no balance transfer fees. The low rate applies during the introductory period (6 months). The card features perks and benefits such as car rental discounts, optional card protection, telephone banking, and more. The fact that there is no annual fee means that borrowers benefit from additional savings. Applicants are free to order supplementary cards.

• Annual fee: none
• Interest rate: 16.99 percent
• Grace period: 21 days or more
• Min credit limit: $500

MBNA Platinum Plus® MasterCard® credit card

This is another good balance transfer option for borrowers who use high interest cards. MBNA offers a longer introductory period of 12 months and zero introductory interest on balance transfers. While this card features no rewards, customers are offered the opportunity to save on interest charges over a longer period. MBNA also features optional coverage in case of accidental death, critical illness, disability, and involuntary unemployment. Canadian residents who are of legal age and have a Canadian credit profile meet the eligibility requirements.

• Annual fee: none
• Grace period: at least 21 days
• Interest rate: 19.99 percent

President’s Choice Financial World MasterCard

President’s Choice Financial features a balance transfer card that offers the opportunity to earn bonus points for travel services and at participating stores. The card offers standard benefits such as purchase assurance and extended warranty and optional extras and perks such as account balance protection in case of involuntary job loss and disability. One of the main benefits for customers is the low balance transfer rate of just 0.97 percent over a period of 6 months. Customers also benefit from flexible and convenient online banking that allows them to view e-statements and their account summary, check available credit and existing balance, and more.

• Annual fee: none
• Interest rate: 19.97 percent
• Penalty interest rate: 24.97 percent
• Grace period: at least 21 days

« Previous Page