Every major U.S. credit card company with the exception of one charges a two to three percent foreign transaction fee when you use your credit card abroad. Until recently, many credit card companies did not clearly disclose these fees in their terms and conditions. Consequently, many people received a notice of a class action lawsuit settlement in regards to these fees earlier this year. Now that the lawsuit has been settled, credit card companies are required to clearly state foreign and international transaction charges on credit card applications. Here, we will look at ways to minimize and avoid these fees.
First, if you do not know how much your current credit card company charges for international transactions, contact customer service to find out. The vast majority will inform you that this fee is three percent. With the US dollar sagging, paying an extra three percent on every purchase can really hurt the wallet. Fortunately, there are a few ways to avoid these charges.
If you have cash available, using a debit card eliminates this fee. Most banks do not tack on a transaction fee for ATM withdrawals. Plus, the foreign currency rate you’ll get from your bank is often significantly better than what you would get at a foreign currency exchange booth. Again, exchange rates and potential fees vary from bank to bank, so it is important to call ahead.
While ATM withdrawals are generally free of foreign transaction charges, using your debit card as a credit card comes with some risks. First, a credit card provides much better fraud protection than a debit card. If, for example, an unscrupulous merchant overcharged or fraudulently used your credit card, you can easily contest the charges and get a refund. If, on the other hand, you debit card was fraudulently used, you will not only be faced with a depleted bank account, but it often takes a great deal longer to get your money returned. For this reason, using a debit card to make purchases abroad can prove risky.
Ultimately, the only way to pay no international transaction fees is to use a credit card doesn’t charge these fees. By using a no fee credit card, you get the security a credit card provides without the annoying added expenses.
How to Pay No International Credit Card Transaction Fees
11-09-2011 by adminCash Back Credit Cards Or Reward Credit Cards – Which One is Best For You?
13-12-2009 by admin
So, you want a new credit card and figure getting a reward card is the way to go. But you’re a bit confused about the difference between reward credit cards and cash back credit cards. It’s not surprising because even many credit card companies use the terms interchangeably. But they are different.
Make the right choice and you’ll find yourself with “free” gifts or cash. Make the wrong choice and you might not see any “free” rewards at all.
Invest just a little bit of time online comparing offers and when it comes time to redeem your rewards you’ll get what you want.
Here are some of the more important things to consider:
Would You Prefer Money, Products or Services?
Whereas a cash back credit card will send you cash periodically, a reward credit card issues points or miles for your purchases. You can then convert the reward points into discounts on travel and/or various services and products. The rewards vary from one card to the next.
How Do You Get the Most Value?
On the surface nothing beats a financial rebate. However, reward cards that give you points or miles often offer incentives that are usually worth quite a bit more than what you’d get for the equivalent use of your cash back credit card.
Thoroughly scrutinize what you can trade your points for because if you find things you like you will get much better value from reward card cards than from cash back credit cards.
The Big Problem with Reward Credit Cards
Reward credit cards can be a time-sucking hassle because you need to keep track of your points in order to get your rewards whereas cash back credit card companies either send you your money automatically or apply it directly to your balance due.
So, if you don’t want to bother tracking your miles and/or points a cash back credit card would be a better choice.
Pre-approved Unsecured Credit Cards
13-11-2009 by admin
If you’re like everyone else, you’ve received a letter in the mail saying you’re ‘pre-approved for a credit card’ from the specified company. If you choose to open the sent envelope, the numbers of how much money you’ll be granted are large, but the rules and what you’re actually getting are small enough to miss. What does this mean to you?
An unsecured card is essentially for someone with good credit, who the credit card company trusts enough to pay off their debt on a monthly basis. Unsecured credit cards are held by a majority of people, and tend to be the most desired option. It allows for the user to make purchases and pay it back in monthly increments set by the credit card company.
Secured credit cards, on the other hand, are for those with unsteady, erratic and unsatisfactory credit, who have a history of late or not forthcoming payments. With a secured card, the credit card company requires the amount desired to be deposited before the card is issued. Upon receiving the deposit, your credit line is established for that amount. The deposit acts as a safety net, and if payments are not made, the company will take payment from your original deposit.
Unsecured cards do not require a deposit, and the consumer is allowed more freedom with spending and repayment. If the payments are on time, the limit allowed will be increased if desired. If, however, payments are not paid on time, credit card companies will continue to add additional late charges, as well as a certain amount of interest that also must be repaid. The interest varies, but can be as low as single digits and as high as 20% on your outstanding debt.
Pre-approved is another term used to lure in new credit card customers. Credit cards must always be applied for, and involved with this is a listing of the applicant’s occupation, income, other debt and similar factors. Once the application is submitted, the credit card supplier will examine the numbers and decide if you will be able and likely to repay your credit card purchases.
Pre-approved means the credit card company has obtained your credit score from a credit bureau such as Equifax and Transunion and already is aware of your good credit. You do still have to go through an application process, and the credit line advertised is not necessarily what you will get, but there is a better chance of being approved in this method than simply applying blindly for a credit card, in general.