Free From Broke

A Personal Finance Blog for Regular Folks

Credit Card Use and Reviews

Credit cards can be a gateway to debt but can also be a powerful personal finance tool. See articles that will teach you about credit cards,keep you up to date on credit card rules, show you the best credit cards, as well as show you reviews.

Buying Stuff on Credit is Expensive [Infographic]

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You know that making purchases using credit cards is expensive if you do not pay off your balance each month. Indeed, carrying a balance on your credit card is one of the biggest ways that people waste money each month.  However, it is hard to see this, since the minimum payments required by credit card companies are so small and seem so affordable.  The Credit CARD Act of 2009 has required credit card companies to list total payoff amounts, and alternatives to only paying the minimum, on statements, but many still overlook some of the issues associated with a slow repayment of credit card debt.

This infographic from Go Banking Rates offers a look at just how expensive it can be to make purchases using credit:
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Discover More Card with $50 Cash Back Bonus Review

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We’re all looking for the best ways we can use our credit cards and one way to help is to find the card that best fits our needs. Here’s a card that could help with your spending habits – the Discover More Card with a $75 $50 cash back bonus.

Note: The Discover More Card with Cash Back Bonus has expired.  Take a look at our Discover More Card review to see the features of the non-cash-back bonus version.

Here are the features:

  • Get $50 Cashback Bonus when you make $250 in purchases within 3 months
  • 0% intro APR on balance transfers for 12 months, then the variable APR of 11.99% – 20.99%
  • 0% intro APR on purchases for 6 months, then the variable APR of 11.99% – 20.99%
  • 5% Cashback Bonus® in categories that change like travel, gas, groceries, restaurants, home improvement stores and more
  • Up to 1% unlimited Cashback Bonus on all other purchases
  • No Annual Fee

Let’s break this down:

If you have a credit card balance on another card and aren’t happy with the card, here’s an opportunity to transfer your balance to a card with 0% APR for 12 months.  With 0% you can really attack the principal without compounding your interest owed.  Just be aware of the 12 month limit and make sure the transfer is worth the balance transfer fee (there is an initial fee of 3% to transfer though the balance will not have interest for 12 months).

If you know you will be making a big purchase, the Discover More card can be good since you are getting 0% APR on new purchases for six months.  Keep in mind though that after six months interest will start.  Consider this against some retail cards where if you don’t pay in full you are charged interest back to the purchase date.

A $75 $50 (updated 04-02-11) bonus is pretty cool. You do have to make $250 in purchases within three months though.  If you don’t use a credit card often and don’t think you will make it to $250 then this incentive doesn’t help you.  But if you know you have a big purchase coming up (remember 0% APR for six months) or know you will make the $250 threshold, then getting $50 back is nice.  Use your credit wisely and that’s free money!

I’m always using one of my cards over another because I can earn points on it (we pay our balance in full so the points are a real bonus for us).  Cash back is an alternative to points that’s pretty useful since you don’t have to figure out what to turn your points in for.  Getting up 5% cash back, depending on the category, can add up quickly!

No annual fee is pretty self-explanatory. Used to be you could reasonably expect to get a no annual fee card if you had decent credit.  But these days credit card companies are tightening up and I think you will see more annual fee cards on the market.  That the Discover More Card with $50 cash back doesn’t have an annual fee is pretty cool.

Should you sign up for the Discover More Card with Cashback Bonus?

Don’t just sign up for another card if all you want is the bonus. Remember every line of credit opened affects your credit score so you need to be careful.  But if you are looking for a new card that fits the features of the Discover More Card then you should really give it a look.  It could provide some nice perks for you.

Sign up for the Discover® More Card – $50 Cashback Bonus.

* Always make sure you read and understand the terms of any credit card before you sign up.  Be aware that the terms may change after this article’s publication.

Sure-Fire Tips To Renegotiating Your Credit Card Debt

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There’s a lot to be said for paying your bills on time, but some quick and easy negotiation can actually save you money each month on your credit card account if done properly.

The key is to never take the number on your billing statement for granted, as everything from the fees to the interest rate can usually be lowered with some tact.

However, you cannot expect to simply ask for a lower debt and get it without effort.
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Are Personal Credit Cards Better than a Business Card for Your Business?

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It’s fair to say that money is at the top of a small business owner’s list of things to worry about.

“Where will we get funding?; How will we break even?;  How will we turn a profit this year?”, are all questions you have to ask yourself when running your own business.

With all of these things whirling through your head, an extra concern should not have to be, ‘Will I have an unexpected interest rate increase on my credit card?’
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