Lessons | Credit Card Topics

Survey Reveals Cities Across America Where Residents Say the High Cost of Living Is Most Worth It

By: Jon McDonald, 12/2/2024

Manhattan, Miami, and Malibu are often cited among the most expensive — and most desirable — places to live in America. Despite offering enviable lifestyles to their residents, these cities have a significantly high cost of living. But these cities are not only the preserve of the rich and famous. Many residents not classed as uber-wealthy choose to make these locations their homes, and instead of relocating to more affordable destinations, come to the conclusion that... read more »

Survey: 3 in 4 Consumers Keep Unwanted Items Due to Complicated Return Policies

By: Jon McDonald, 10/29/2024

Shopping online is incredibly convenient, but what happens when purchases don’t meet expectations? For many, the process of making returns isn’t easy. We surveyed over 1,000 American consumers to learn more about their retail return habits and preferences. It turns out some would rather eat the cost of their order than deal with the process of returning it. Navigate This Article: How Much Returns Cost ... read more »

What is a Variable APR? Why Credit Card Interest Rates Can Fluctuate

By: Eric Bank, 10/1/2024

Some of my friends love trading high-flying growth stocks, while my other friends safeguard their money in bank CDs. My risk-taking friends see volatility as their ally and have no qualms about owning variable APR credit cards, which can frequently change rates. To my play-it-safe friends, unpredictability is a nightmare, so it’s little surprise they prefer credit cards with fixed APRs. A variable APR (Annual Percentage Rate) is a credit card interest rate that changes in... read more »

What is the Truth in Lending Act and How Does it Apply to Credit Cards?

By: Andrew Allen, 9/30/2024

Celebrated American philosopher and poet Henry David Thoreau never used credit in his life. I’d like to believe he didn’t use credit because it would have conflicted with his simple lifestyle. But the reality is that credit cards didn’t exist until many years after his death in 1862. Though he didn’t own a credit card, I think the Truth in Lending Act would have been right up Thoreau’s alley. He once wrote, “Rather than love, than money, than fame, give me truth.” ... read more »

What Does “No Credit Check” Mean?

By: Eric Bank, 11/19/2024

A credit check occurs when a lender reviews your credit report and score to determine how well you've managed debt in the past. Certain types of loans and credit cards advertise themselves as being available without a credit check, but that's not always a good thing. "No credit check" means a credit card issuer or lender will not review your credit reports or scores when deciding whether to approve your application. No-credit-check credit cards and loans are easy to get... read more »

Survey: 71% of U.S. Adults Suspect an Election Donation Request to Be a Scam

By: Jon McDonald, 9/25/2024

Scammers have mastered the art of pretending to be people, businesses, charity organizations, and other typically trusted sources. With 2024 a U.S. presidential election year, scammers have also taken on a new persona: presidential campaigns. Each year, millions of Americans take out their credit cards and punch in their personal information to an online campaign donation portal or even verbally relay the same information over the phone to a stranger. While on paper this... read more »

What is a Regular APR? How Your Credit Card’s Rate Affects Interest Charges

By: Eric Bank, 9/16/2024

I’ve noticed that some credit card ads put their promotional rates — often 0% APR — in big, bright, bold letters, as if they’re giving you credit for free. But if you squint and look a bit further down, you’ll find the regular APR hiding in tiny print. The regular APR, or annual percentage rate, tells you how much interest you will pay each year if you carry a balance on your credit card. Even cards with flashy 0% introductory APR offers will revert to the regular APR... read more »

What Is a Credit Card Default? How Issuers Deal With Nonpayment

By: Mike Senecal, 8/22/2024

If you run up credit card debt, you have to make monthly payments until you repay it all. If you stop paying, you’ll enter default status. Credit card default is when issuers determine you will no longer repay your account, which is typically after 180 days or about six months. Trust me — you want to deal with your obligation before it reaches that point. A credit card issuer will typically default your account if you don’t make payments for 180 days. Not making... read more »

What Is a Penalty APR? How to Avoid the Punitive Interest Rate

By: Eric Bank, 8/20/2024

Penalty is such an unfriendly word. It derives from the Latin word for “punishment” or "pain." Penalties are no walk on the beach, but they are so much worse when self-inflicted. That’s exactly what a penalty APR is — self-inflicted punishment for missing a credit card payment. It’s a higher rate of interest that your credit card issuer can impose should you break the terms of your credit agreement (i.e., late payments, missed payments, or exceeding your credit... read more »

Are You Living Your Childhood Dream Job? Survey Reveals 59 Million American Workers Loathe Their Current Career

By: Jon McDonald, 8/13/2024

What do you want to be when you grow up? It's a question we often ask our children, delighted by their ambitious answers of ‘ballerina’, ‘firefighter’, or ‘astronaut’. Perhaps they’re influenced by the roles in their lives that inspire them, perhaps one day dreaming of becoming a doctor or teacher. As we grow up we still often dream of a job that provides us with this passion, fulfillment, and success. However, the realities of life, bills, and the job market mean that... read more »

NFL Game Day Costs: How Much Fans Will Spend at Every Stadium

By: Jon McDonald, 8/13/2024

The 2024 NFL season is right around the corner! As Americans gear up to watch the games, we want to know which fans will spend the most money to see their favorite team play in person. To determine how much it will cost NFL fans to attend games this year, we put together the cost of a typical ‘game day experience’ — the price of one ticket, one hotdog, two beers, and parking at each NFL stadium. We also surveyed NFL fans about their plans to attend games this year and... read more »

Parents Underestimate 2024 Back-to-School Spending by $370+

By: Jon McDonald, 7/29/2024

Families across the country are gearing up for the annual back-to-school shopping season. According to the National Retail Federation (NRF), Americans will spend $38.8 billion on back-to-school shopping in 2024. It’s one of the busiest shopping times of the year for retailers and consumers alike as parents and children prepare for the new school year with a keen eye on their budgets. CardRates.com surveyed 1,000 American parents of school-age children (K-12) to understand how much... read more »

Salaries, Net Worth & Contentment: Survey Reveals the Magic Number for Perceived Financial Happiness

By: Jon McDonald, 7/23/2024

Money can’t buy happiness, so the saying goes. Ask most Americans, however, and you’ll find a different story — one in which financial stability is one of the most important parts of feeling content in life. We all dream of economic freedom, whether it's retiring comfortably, affording a dream home, or simply living without the constant stress of bills. But how much money does it take to feel happy and secure? Is there a magic number that makes us feel as if we’ve “made... read more »

What is Credit Card Purchase Protection? Covered Items & Strategic Ways to Use the Benefit

By: Eric Bank, 6/26/2024

Credit card purchase protection safeguards you if a product you buy with your credit card gets stolen or damaged soon after you purchase it. If something bad happens to your purchase, the credit card company can help you get your money back or replace the item. This protection usually lasts for a specified period after you buy the item, sometimes as long as 180 days. It typically extends the manufacturer’s warranty, and your credit card issuer can pay for a repair or replacement... read more »

What is Credit Card Delinquency? When Late Payments Lead to Credit Damage

By: Eric Bank, 6/19/2024

Credit card delinquency happens when you don’t pay your credit card bill on time. Credit card companies report delinquency to the credit bureaus if you are 30 days or more late on your payment. Being delinquent can really hurt your credit, so finding a way to always make payments on time if vital. I’ll cover everything you need to know about delinquency, including the warning signs of financial stress and how to rebuild your credit score if late payments damage it. ... read more »

How Does the Wage Gap Affect Women’s Ability to Make Major Life Purchases?

By: Jon McDonald, 6/12/2024

Research shows that the gender pay gap hasn’t changed much over the last two decades. According to national averages, women earn around 82% of what men earn. This disparity has tangible consequences. The ability to make significant life purchases — a home, a car, or a college education — is a practical barometer for measuring the real-world effects of income inequality. "On the surface these statistics can feel alarming. Is the income deck stacked against women?... read more »

What is a Security Deposit? How Secured Cards Work and Can Help You Build Credit

By: Eric Bank, 6/4/2024

Consumers with bad or no credit may have a difficult time qualifying for an unsecured credit card. Many issuers will reject their applications, and the ones that accept will impose high costs. Secured credit cards solve the problem by requiring security deposits. A security deposit is the money you pay upfront to a credit card issuer when you open a secured credit card account. This deposit typically matches your credit limit. For example, if you pay a $200 deposit, your credit... read more »

What is a Credit Utilization Ratio?

By: Eric Bank, 5/23/2024

Your credit utilization ratio (CUR) represents how much of your total credit limit you are using. CUR typically applies to credit cards and certain revolving lines of credit. Your CUR can also show potential lenders how responsible you are with your finances and is a significant factor in credit score calculations. Navigate This Article: Calculating Credit Utilization Credit Score Impact How Lenders Use... read more »

What Is a Credit Card Interest Rate? Types of Rates & Debt Impacts

By: Eric Bank, 5/15/2024

A credit card interest rate is the price you pay to borrow money from a credit card issuer. When you use a credit card to buy something (or take out cash) and you don’t pay back the full amount you owe right away, the credit card company charges you interest. The additional amount the issuer requires you to pay depends on your interest rate. The higher the interest rate, the more money you have to pay back in addition to what you borrowed. In this guide, I’ll explain... read more »

What is an Average Daily Balance?

By: Eric Bank, 5/7/2024

The average daily balance on a credit card is how much you owe daily, on average, over a billing cycle. Credit card companies use this average to determine the amount of interest you pay if you carry a balance from month to month. A billing cycle is the period between the last statement’s closing date and the next. For credit cards, this is usually about one month. During this time, the issuer records and adds all of the transactions you make with your credit card to your... read more »

What is a Statement Credit?

By: Erica Sandberg, 5/9/2024

A statement credit is money applied to your credit card account that can lower your balance or be applied to future charges. A statement credit is typically an option when cardholders want to redeem their card rewards. Issuers may also apply statement credits as a bonus when cardholders open an account or reach certain spending thresholds within a set period after account opening. Navigate This Article: How Statement Credits Work ... read more »

What is the Prime Rate?

By: Eric Bank, 5/14/2024

The prime rate is the best interest rate banks provide to their customers. Credit card companies often set their interest rates by adding extra percentage points to this prime rate. If the prime rate goes up or down, so does the annual percentage rate (APR) on your credit card. When the prime rate goes up, borrowing money on your credit card gets more expensive. When it goes down, it gets cheaper. Navigate This Article: Determining the Prime... read more »

America Saves Week: 25 Tips to Jump-Start Your Savings

By: Marcie Geffner, 4/8/2024

Smart consumers know there are plenty of reasons to save money for future expenses, such as emergencies or major life events, like buying a home, financing your children's education, or retiring at the end of your career. There's also another reason: inflation. That may seem counterintuitive because as prices rise, spending sooner may appear more sensible. Why not buy now before prices rise even further? The obvious flaw in that thinking is that not everything can be... read more »

How Do Credit Cards Get Hacked?

By: John Ulzheimer, 3/28/2024

If you’ve ever gotten an unfamiliar alert from your credit card company or you’ve seen a transaction on your credit statement that you don’t recognize, there’s a possibility that your credit card account has been compromised. In clearer terms, your account may have been hacked by a fraudster. First things first, don’t panic. If you’ve been the victim of credit card fraud, then you’re now a member of a very large and non-exclusive club of credit card holders. According... read more »

7 Financial Tasks to Automate Today

By: Erica Sandberg, 3/28/2024

If you're like most people, life is busy with everything from work to family to fun. That’s why even important chores that involve money and credit management can fall by the wayside. When that happens, certain accounts may be penalized with added fees, spending may escalate out of control, and you may not have enough saved for all the things you want or need. What to do? Set and (almost forget) as many financial tasks as possible. Here are seven financial tasks to automate now. ... read more »

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