rewards

6 Ways You Can Get Paid to Watch TV

Paul Michael — Thu, 31 May 2018 08:00:17 +0000

Full disclosure: I work in TV. I am a creative director at a premium cable channel, and I can tell you right now that I get paid to watch TV. I don't watch it all day, every day. But I do spend some portions of my week watching series from my own network, and occasionally, competitor networks and stations.

I love my job. I love being able to read scripts and watch series, in many cases a year before they hit the airwaves. And I can assure you, there are many opportunities for you to earn money doing something you love — watching TV. Here are just a few.

1. Work for a company that airs TV series and movies

Let's start with my own personal area of expertise. From HBO, Showtime, and STARZ, to Netflix, Hulu, and Amazon, there are thousands of jobs available in the TV and movie industry. You may think that the only people getting paid to watch TV at these companies are high-end executives and producers, but that's not the case. In my own company, everyone from IT and legal, to HR and creative services, has access to a wide variety of movies and series.

We are often required to watch our own series to be educated on what our own company does, much like employees at a brewery get free ale and hotel employees get free rooms. The more you know about what your company does, the better you are at your job. We also have companywide screenings of series and movies, and similar companies do the same for their employees, too.

If this sounds like the field for you, take some time to search the career web pages of any company offering TV and movie services. You may be surprised at the opportunities available.

2. Start your own YouTube channel

It's a slow burn, but if you're willing to invest the time and a little money, it can really pay off. As you probably know, there are a lot of wealthy YouTubers out there. Some of them create original content, some are comedians, some play video games. And, some watch TV and movies and record their reactions, or provide reviews of the latest movies and series. In fact, there are even YouTubers who review YouTube review channels! That's some Inception-level stuff right there.

The best way to start on this path is to review the movies you either really love … or really hate. Audiences love both kinds of reviews, with the latter usually being more funny and satirical. All you need to start is a computer or smartphone with a decent camera (if you use a phone, get a tripod).

Record your review, upload it, and share over social media. As you get more comfortable, start adding graphics and some simple cutaways using basic editing software. As your views and subscribers grow, you can monetize your YouTube page, and eventually, if you're big enough, see some major dollars roll in. (See also: How to Make Money by Creating YouTube Videos)

3. Download apps and visit sites that reward you for watching

There really is an app for that. Well, multiple apps, actually. One of the most popular is Viggle, which rewards you for logging in and watching TV shows from providers like Netflix, Hulu, and Amazon. It's done on a points-per-minute basis, although sometimes you can double, triple, or even quadruple the amount of points you earn. You can also get bonuses for engaging with your friends on social media, and you can redeem your rewards for gift cards, cash, and even debit cards.

You can also check out Perk, their sister company, which offers cash rewards for watching TV, playing games, and shopping, and Inbox Dollars, which also offers surveys. Will it make you rich? Doubtful. Will you get cash for watching TV and movies? Yes. What's not to love about that? (See also: Effortless Ways to Make Money Online That Don't Require Skills)

4. Become a Netflix "tagger"

Fair warning: There are only about 30 of these positions in existence, and they are in extremely high demand … for good reason. Taggers are a team of 30 media-savvy reviewers who get paid to watch Netflix day in, day out. The job of a tagger is to watch the content and tag it as it's being viewed with relevant metadata. In layman's terms, that includes factual information about the content, like year of release, language, cast, and so on, but also the tone, style, and how to categorize it for a search.

As FastCompany reported this past March, it's a dream job for Sherrie Gulmahamad, who watches over 20 hours of TV and movies per week in her role as "originals creative analyst." But, as she pointed out, it's not always an easy ride. Much like a food critic, you don't always have an appetite for what is put in front of you.

"I've also been assigned a 60-hour Colombian crime drama about Pablo Escobar's hit man," she told FastCompany. "No, I did not have to watch all of it — but I tried!" If you want to try and get into Netflix tagging, Gulmahamad recommends first getting into an archival or library studies program, and going from there.

5. Become a Nielsen family

Neilsen is a household name in America, and is the driving force behind all those ratings figures you see for TV series and movies. You can become a part of this process.

There are a couple of ways to go about it; one is by choice, the other by chance. First, you can go to Nielsen Digital Voice and join the panel. Thousands of people in the U.S. do this, and it's a way to provide information on what you're watching via the internet. The rewards aren't going to let you quit your day job, but you'll get the chance to win up to $1,000 every month, with 400 members getting a chunk of the monthly $10,000 sweepstakes.

The other way is the traditional Nielsen route, and that is purely in the hands of fate. Nielsen families are randomly selected from a section of different communities across the nation, and although you have just as much chance as anyone else, there are only 40,000 homes being monitored. With over 126 million households in the U.S., that's a slim chance.

6. Take up mystery shopping

These days there are all kinds of mystery shopping gigs available, and they are not just limited to retail stores and restaurants. You can actually get paid to go to the movie theater and check out the latest movies, and who wouldn't want to be paid for an activity you usually have to pay for?

One of the biggest names in theater mystery shopping is VeriTes, and they are looking for independent contractors in all 50 states. You can also check out CFA or Imyst.

Now, while you will obviously have fun watching the movie, you do have to pay attention to the entire experience and report back on it. Everything from the purchase of the tickets, the customer service, the quality of the snacks, and the resolution of the movie will come into play. Make sure to bring something you can take notes on (not your phone — that's a bad move in a movie theater) and file your report to receive your reward. (See also: Check Out These 5 Legit Mystery Shopping Gigs)

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This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Is It Smart to Pay College Tuition With a Credit Card?

Dan Rafter — Tue, 29 May 2018 08:30:46 +0000

At first, the answer seems obvious: Using a credit card to pay your college tuition is a terrible idea. With the high rates that come with plastic, you could rack up thousands of dollars in interest by charging your tuition.

But, there's another way to look at it: If you can pay off your credit card bill in full each month, using a card to pay your tuition could generate significant cash back rewards, airline miles, or free hotel stays.

It all comes down to your discipline, the type of credit card, and what you can afford to charge. Here are a few things to consider before charging your tuition. (See also: The 5 Best Credit Cards for College Students)

College isn't cheap

The cost of college isn't shrinking any time soon. CollegeBoard reports that the average yearly tuition for a public, four-year in-state college stood at $9,970 for 2017–2018, up 3.1 percent from the previous year. Private colleges averaged $25,620 for the same school year, an increase of 3.2 percent. Neither of those figures include the average $10,800 cost for room and board.

If you're going to be charging tuition or room and board to a credit card, you should have the cash on hand to pay it off in a timely fashion — ideally, the first billing cycle. And that won't be a small amount. Otherwise, you put yourself at risk of falling deeply into credit card debt.

Very few people go this route

According to the 2017 edition of Sallie Mae's How America Pays for College report, just 3 percent of families used credit cards to help cover college tuition for their kids, while 4 percent of students used plastic to pay for some or all of their tuition. Parents charged an average $4,450 for tuition in 2017, while students charged an average $1,626.

It's evident that paying for college with plastic is not the popular route. Why do so few students or parents turn to their credit cards? Most probably don't have the cash they'd need to pay off these cards in full each month in order to avoid interest charges. Others might not have a high enough credit limit on their cards to charge any more than a few thousand dollars at a time. Students may not have enough of a credit history yet to even be approved for a credit card. (See also: 4 Important Ways College Students Should Use Credit Cards)

Don't chase rewards without a repayment plan

If you can afford to charge tuition and pay off your credit card bill each month, it might make sense to do so, especially if you have a credit card that provides cash back bonuses, rewards, or miles. Charging $10,000 in tuition, for example, could be a great way to earn fast cash or travel credit.

Other cards might provide bonuses if you spend a certain amount of money during a set number of months. For instance, if you spend $5,000 during a three-month period, you might get a $200 cash back bonus. Charging your tuition can easily get you to that spending threshold. (See also: 5 Smart Ways to Meet a Rewards Card Minimum Spending Requirement)

The key, again, is that you pay off your card's balance in full when the bill comes due. It's not unusual for credit cards to come with interest rates of 18 percent or higher. If you carry a balance, that interest rate will cause your debt to grow quickly, and no amount of cash back, bonuses, or miles is worth that financial pain.

Watch out for fees

There is another potential pitfall with credit cards depending on the school you attend. If your college or university allows you to charge tuition (some don't), many will charge an additional fee for credit card processing. You'll have to determine if the rewards, miles, or cash back bonuses you're after are enough to make up for the fee your university or college charges.

According to a 2016 survey from CreditCards.com, 85 percent of the country's largest colleges allow credit cards for tuition payments. The survey found that 57 percent of schools charge fees for credit card payments, with the average fee being 2.62 percent.

Say you charge $4,500 in tuition for your upcoming semester. If your school charged a fee of 2.62 percent, you'd pay about $118 extra for the privilege of using your card. If that $118 is higher than the cash back bonus or rewards points you'd generate from charging it, you're better off paying for your tuition in another way.

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This article is from Dan Rafter of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

The Biggest Ways You're Wasting Money at the Pump

Ashley Eneriz — Tue, 27 Mar 2018 10:00:06 +0000

Ever feel conflicted at the pump when you need to choose between premium gas and standard grade? Consumers as a whole have been led to believe that items with the "premium" name tag are worth the money — and can even save us money long-term. However, this is not true when it comes to premium gas.

A recent AAA report found that the higher cost of premium gas offers little to no benefit for vehicles that are recommended, but not required, to use the fuel. The same goes for cars that do not recommend nor require the higher octane gasoline. According to the report, over 1.5 million new cars sold last year came with the recommendation to use higher octane gas, but it was not required for car functionality. So, unless your car requires the premium stuff, you're better off skipping it.

If you are in the market for a new vehicle, consider choosing a car that does not require premium gas. Driving a car that needs premium fuel will cost you about 20 to 25 percent more at the pump, which translates to about 50 cents a gallon. For a 15-gallon car, that can tack on an additional $7.50 per fill up. (See also: 7 Ways You're Wasting Gas Without Realizing It)

Here are other ways drivers are wasting money at the pump.

Not shopping around

Many times, drivers will pay more for gas due to poor planning. You are desperate to find the closest gas station before you run on empty, and you don't care if you have to pay more. If this describes you, stop living this way. Not only are you slowly draining your budget, but you put yourself at risk if an emergency were to happen.

Once your tank hits the halfway mark, use an app like GasBuddy to find the cheapest gas in your area. Plan to stop when you are near that station for another errand. When you find a good deal on gas, fill up the tank.

Not paying the right way

There are really only two options that are beneficial to your finances when it comes to paying for gas. The first option is to pay with cash. Some gas stations will offer a small discount per gallon if you pay with cash over plastic. The other option is to purchase gas with a credit card that offers rewards or cash back for gas. Make sure you're able to pay your credit card bill in full each month to truly benefit from the rewards.

Using your debit card at the pump doesn't benefit your bank account, and it can also put you at risk. Skimmers and card fraud are increasingly common at gas stations. If you pay with a credit card, it is easier to stop fraudulent charges, and your personal bank account will not be in limbo as the bank sorts out the mess.

Not keeping your car well maintained

Several small factors can add up to wasted money at the gas pump. For example, poorly inflated tires and dirty air filters can make your vehicle work harder than it needs to. This translates to more gas wasted on the road.

Similarly, the heavier your car is, the more gas you will burn. Having a little extra junk in the trunk isn't going to throw off your gas budget, but if you regularly keep heavy equipment or tools in the back of your vehicle, consider lightening the load on days you don't need the items.

Not driving smarter

It seems like common knowledge that a steady driving speed is better for your gas tank than overly accelerating or braking your car. However, each time I drive into Los Angeles, I am amazed by how many drivers accelerate for extended periods of time, brake hard for no reason, or drive over 90 MPH.

Driving at a slower, steadier pace will extend your time between gas fuel ups and keep you away from pricey speeding tickets. For longer commutes, plan your trip so you can avoid heavy times of traffic.

Using these tips can save you as much as $10 to $20 per fuel up, which adds up quickly. Wouldn't you rather spend that money on something fun than at the pump?

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This article is from Ashley Eneriz of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Yes, You Need "Fun Money" in Your Budget

Tim Lemke — Thu, 08 Feb 2018 09:00:06 +0000

Saving money and living frugally can be hard work. While there's something romantic about living the ascetic life, most of us need to let loose once in a while. But how can you inject fun into your life when you're trying to save every penny? That's easy! Just budget for it.

It's perfectly OK to allow for a modest amount of fun in your life. The key is to plan for it each month, so that you don't let your spending exceed your income. Here are some key reasons why budgeting for fun activities is something even the most frugal people should do.

Every dollar needs a bucket

If you are tracking your spending, every expenditure you make belongs as part of a budget. By maintaining these budgets, you'll have better control over ensuring that your spending falls under a certain overall level for the month.

Fun money should be kept separate from things like your restaurant budget or your cable bill. This is money that you use for anything you want, with no guilt or questions. It can be used for a night out at the movies, or on that new sweater you saw at Banana Republic. Anything goes, as long as it falls within your (modest) predetermined budget.

Being frugal can be exhausting

Saving money and living on a shoestring budget is really, really hard. Watching every penny and spending money only on essentials can get old, tiresome, and flat-out depressing. In fact, it can be so soul-sucking that after a while, you may just abandon the whole effort altogether.

But if you give yourself a small fun budget, it can take the pressure off. You can reward yourself for a job well done and enjoy yourself without feeling guilty about it, as long as you don't blow through your modest budget.

A small fun budget can prevent a big expenditure

If you go too long without fun, eventually you may break down and do something over the top and expensive. You might buy a motorcycle you don't need, or book a trip to Bali that you can't afford. You may overpay for tickets to the Super Bowl. You'll go overboard, because you can't take it anymore. Think of it like a dam that needs to let some water through occasionally so that it doesn't burst entirely. Your fun budget is saving yourself from an explosion of spending.

You don't want to resent your partner

It's a real drag being the person who has to clamp down on fun. It's also unfair if you're the one having fun while your partner is depriving themselves of it. It's best to give each other a small fun budget, so neither person can get on the other's case for enjoying themselves a bit. Your relationship will be enhanced if you allow yourself to have some fun together or apart, as long as you don't spend too much.

It's impossible to avoid fun

There are times when you will get roped into having a good time. Your buddy calls and begs you to come and see the new Star Wars movie with him. One of your girlfriends has a bachelorette party. There's a happy hour to thank a coworker who's moving on. These are things you can't say no to, but they might not necessarily fall into any other budget. Start each month assuming you'll get roped into something fun, and you won't feel bad for taking part.

Fun doesn't have to be expensive

You may ask, "Why budget for fun when the entire idea is to save as much as possible?" Well, because fun doesn't necessarily have to make a big dent in your overall spending. Grabbing $5 bleacher seats at the ballgame isn't going to make or break you financially. A round of golf every other month won't hurt too bad, especially if you play at the local municipal course on a Tuesday.

No one says you have to budget hundreds of dollars to allow for front row seats at the Foo Fighters concert. Just a few bucks of fun can help lighten the tension of saving money and boost your morale.

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This article is from Tim Lemke of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

What Happens to Your Store Credit Card When the Store Closes?

Dan Rafter — Fri, 02 Feb 2018 09:30:08 +0000

The year 2017 won't go down as a banner year for retailers. Big-name companies such as The Limited, Toys R Us, RadioShack, and Gander Mountain all filed for bankruptcy protection last year.

With bankruptcy comes the closing of hundreds of stores, and that means the company behind one of your store credit cards could shutter the locations nearest you. That retailer might even go out of business entirely. That leaves two questions: Should you close a store credit card if it's unlikely that you'll ever use the card again? And if a store goes completely out of business, what happens to the credit card it issued you? (See also: Should You Sign Up for That Store Credit Card?)

When a retailer goes out of business

Let's tackle this predicament first. When a retailer goes out of business, your credit card account with that merchant will usually be canceled, and will be reported as canceled on your three credit reports (maintained by Experian, Equifax, and TransUnion).

What won't go away, though, is the balance on your store credit card. Most store credit cards are not actually owned by the retailers whose names are printed on the front. Instead, they are owned by banks or large credit card companies. When a retailer goes out of business, you must keep making payments on its branded credit card until the debt you accrued is paid off.

If you stop making payments, you will damage your credit score. A single late payment of more than 30 days past due could send your score falling by 100 points or more. A missed or late payment also remains on your credit reports for seven years.

If a retailer goes out of business, any rewards you've earned on that store credit card will also disappear. If you know that the store behind your credit card is on the verge of shutting its doors, you should redeem those rewards before it's too late.

When a retailer closes its nearest locations

If the store that issued your card isn't going out of business completely, and is instead just closing the brick-and-mortar locations nearest to you, keep in mind that you may still be able to use that store card for online purchases. But if you truly don't think you'll ever use the card again, you might decide that it's pointless to hold onto it and cancel the account.

This is the wrong move. Closing a credit account, even one you don't use anymore, will hurt your credit score.

You have something called a credit utilization ratio, which accounts for 30 percent of your credit score. This is a measure of how much of your available credit you are using at any given time. The more of your credit that you are using, and the higher this ratio, the lower your credit score will be.

Closing a store credit card, even if you no longer use that card, will automatically lower your credit utilization ratio. Say you have three credit cards — one with a credit limit of $10,000, a second with a credit limit of $5,000, and a store card with a credit limit of $3,000. That gives you $18,000 of available credit. Now, say you owe $7,500 total on these credit cards. Your credit utilization ratio is about 42 percent, or $7,500 divided by $18,000.

If you close that store card with a credit limit of $3,000, your available credit instantly falls to $15,000. Even if you don't make any more charges, your credit utilization ratio has automatically increased to 50 percent ($7,500 divided by $15,000).

So even though you didn't add to your credit card debt, your credit score could still take a hit if you close that store-branded credit card.

Store credit cards are a hassle when a retailer closes stores or goes out of business. But opening a store credit card might not be a smart move in any circumstance. Store cards that can only be used at one retailer aren't flexible. Why not instead open a non-store credit card that comes with a solid rewards program and that you can use anywhere, including at your favorite retailer? Such credit cards are far more useful than single-retailer brands. (See also: 5 Store Card Pitfalls to Watch Out For)

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This article is from Dan Rafter of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Divide Rewards and Keep Your Sanity in Divorce

Holly Johnson — Thu, 25 Jan 2018 09:30:09 +0000

Divorce is a fact of life in the United States these days. According to a 2017 Gallup poll, 73 percent of American adults believe divorce is morally acceptable. And while divorce rates have declined in recent years, still 40-50 percent of married couples wind up going their separate ways.

Unfortunately for everyone involved, divorce is usually messy and sometimes even financially catastrophic. Not only does divorce signify the separation of a household and the end of a relationship, but it usually means divvying up all personal property and assets, too. (See also: How to Protect Yourself Financially in a Divorce)

What happens to airline miles when you get divorced?

But, what about your airline miles? If you're careening toward divorce and flush with rewards points, you may have to get used to the idea of splitting them up.

According to the legal experts at LegalZoom, airline miles and other points are treated like other marital assets because, well, they are. Even though points and miles aren't as easy to see and inspect as other property like cars or furniture, they still have value — at least to some people. If you or your spouse earned rewards points during your marriage, these miles are considered a marital asset, notes LegalZoom. As a result, you'll have to split them or agree upon some other arrangement.

Sadly, this is where things get complicated. LegalZoom notes that your method of divvying things up may vary based on where you live. If you reside in a community property state like California, for example, the courts will split your miles equally between you. In equitable distribution states like New York or Maryland, on the other hand, miles are divided based on what the court deems "fair."

You'll definitely want to consult your divorce lawyer if you or your soon-to-be ex are, say, sitting on a stash of hundreds of thousands of miles. Your attorney may already know the law in your state, and if not, they'll find out for you. (See also: 5 Money Moves to Make the Moment You Decide to Divorce)

Methods of divvying up miles and points after divorce

But how exactly do you divide airline miles and other rewards points? It depends on a number of factors. While splitting a stash of points and miles down the middle may sound like the fairest thing to do, it usually comes with fees.

Divide and transfer points

Take the Marriott Rewards program, for example. While the program lets you pool points with a spouse to make a specific award redemption, you'll have to pay $10 to pool points in any other case unless you have Marriott Gold or Platinum status.

That's not a high price to pay, but you may be able to get around it completely. Since Marriott points can now be transferred to Starwood Preferred Guest at a 3:1 ratio and Starwood does let you combine or share points with a spouse, both spouses could transfer all their Marriott points to SPG accounts then split them up there. Problem solved. Then again, paying a $10 fee to transfer points in a divorce seems like a small price to pay.

The IHG Rewards program lets you transfer points to another person but you'll have to pay $5 per 1,000 points transferred. While $5 per 1,000 points may be a small price to pay in the event of a divorce, this could be a problem if, say, one spouse has hundreds of thousands of IHG Rewards points in their account. In that case, both spouses might have to find another way to split up their rewards in a fair and sensible way.

Valuing points and miles

In some situations, you just can't split points up equally, or it might not make sense if the account has just enough points for one flight. In those cases, it might work better to assign a value to accrued points and negotiate payment or other property to make things equal. Unfortunately, this is another tricky situation since points and miles don't have a set value and may be worth more or less depending on how they are redeemed.

You can find help by checking monthly points valuations from The Points Guy, who analyzes point value fluctuations regularly based on the costs of travel and changes in rewards programs. At the moment, TPG says that American AAdvantage miles are worth 1.4 cents each, and Delta SkyMiles are worth a paltry 1.2 cents each.

If one spouse is to get 100,000 Delta SkyMiles and 200,000 American AAdvantage miles, the couple could use these valuations as a guide, then make sure the other spouse gets $4,000 to make things equal ($1,200 for 100,000 Delta SkyMiles and $2,800 for the 200,000 American AAdvantage miles).

Keep miles in separate accounts but agree on who can use them

Still, there are even more options on the table. If you can't or won't transfer points and don't want to pay each other in cash or other property, there are a few other ways to split up your points in a fair and equitable way. Many rewards programs that won't let you transfer points will let you book travel in another person's name. Because of this, you could keep airline miles where they are and agree on who can use them and when.

Agree to use miles for joint purposes

Alternatively, a divorcing couple could jointly agree to use miles only for purposes they agree upon, such as getting their children or other family members home for the holidays.

Don't sweat the small stuff

While airline miles and other reward currencies have financial value and fixed opportunity costs (since it takes time to earn them), most couples likely have balances so small they're not worth squabbling over. And just like money, you can always rack up more points and miles once you divorce and start living life on your own terms.

On the flip side, don't let a spouse flush with points get away with a huge stash of airline miles or rewards points just because the points are in their name and their name only. Points and miles may not have tangible value until you redeem them, but the travel they help you afford is often priceless.

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This article is from Holly Johnson of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

The Millennials Guide to Avoiding Credit Card Debt

Tim Lemke — Mon, 22 Jan 2018 10:00:06 +0000

Americans owe billions of dollars in credit card debt, and the high interest rates that come with it can lead to a debt spiral that is very challenging to overcome.

Millennials, having lived through the financial crisis and other economic downturns, appear to be more wary of credit cards than other generations, according to several recent surveys from sources including Bankrate and TransUnion. This wariness is healthy, but it's important for this younger generation to know that credit cards by themselves can be harmless and perhaps even beneficial if used wisely. (See also: Why Millennials Should Embrace Credit Cards)

If you're a millennial, consider these tips on how to use credit cards while avoiding getting into dangerous debt.

Pay attention to interest rates

Sometimes when you're in a financial pinch, you may be relieved to see a new credit card application come in the mail. But it's a bad idea to apply without looking at the terms first. Not all credit cards are created equal, and some have very high interest rates that could cripple you financially. An annual percentage rate of about 15 percent is standard, but some can go well above 20 percent, and it's possible to find rates below 12 percent. Be sure to read the fine print on all cards, and compare rates to find the best card available for you. (See also: Best Credit Cards for Millennials)

Also, don't get too enamored with low introductory rates; remember that all introductory rates eventually aren't introductory anymore. If you're struggling to get out of debt, it may be helpful to transfer a balance to a card with a 0% introductory APR, but be aware that rate will jump after a certain amount of time. (See also: The Best 0% Balance Transfer Credit Cards)

Avoid fees

Some credit cards will charge you an annual fee just to have them. Sometimes, this annual fee allows you to receive special benefits, but the average person should never feel the need to pay money just to have access to credit. You may feel like you've "arrived" because you are spending $550 per year for that platinum card, but it's a silly expense if you're only using the card to pay for lunch and fill your gas tank. These premium credit cards come with many perks and benefits that only benefit certain people. (See also: How to Decide if an Annual Fee Credit Card Is Worth It for You)

Pay on time

The nice thing about credit cards is that if you pay off the balance every month, on time, you're not charged any extra fees or interest. There's really no down side to using a credit card to buy items and paying the bill in full each month.

Paying your bill on time is the number one factor in determining your credit history. Miss a payment, and you are subjecting yourself to late charges and a hefty amount of interest. Additionally, you could see your credit score suffer. (See also: 5 Simple Ways to Never Make a Late Credit Card Payment)

Watch the revolving balance

Even if you pay your bill on time every month, your credit score could be hurt if you have a high balance each month. Credit bureaus don't like it when you are bumping up against your credit limit on a regular basis. In fact, as much as one-third of your credit score is based on "credit utilization," or the amount of debt you have versus the amount of credit you have available. In other words, you should still try to avoid racking up a large credit card bill, even if you're diligent about paying on time. (See also: This One Ratio Is the Key to a Good Credit Score)

Use them to build credit

When used responsibly, credit cards can help you build a credit history and make it easier to get favorable terms when borrowing money elsewhere. If you are applying for a mortgage, for example, a lender will review your credit score and payment history to determine the rate and size of the loan that you are eligible for. Without a lengthy credit history, lenders may find it hard to give you good terms, or you may be turned down altogether. (See also: 5 Ways to Improve Your Credit Score Fast)

Have multiple cards, but be careful

People with high credit scores tend to have more cards than those with lower scores. This is because your credit score is partially based on how much debt you have compared to your overall availability of credit. Since more cards will generally mean more available credit, there is an advantage to having multiple cards. The very, very big caveat to this is that if you have more cards, you have more ability to borrow and rack up debt.

Having multiple cards can give you flexibility, because not all cards are accepted everywhere. Additionally, it may be helpful to have credit cards with varying kinds of rewards. There is no universal rule of thumb regarding the optimal number of credit cards, but it's likely that you can get away with having two or three.

Track your spending

One nice advantage to using credit cards is that it will allow you to keep a real-time record of your purchases. If you use cash instead, recording your spending is more of a manual chore.

Most credit card companies allow you to check your transactions online and will even categorize your purchases, thus helping with budgeting. If you use credit cards, don't just mindlessly pay your bill when it comes. Take the time to review what you spent during the previous month, and try to identify where you may be able to cut expenditures and boost your savings.

Use your rewards

There's a healthy competition among credit cards to offer rewards to cardholders when they make purchases. Some cards give you cash back. Many offer airline points or other travel rewards. There are cards offering cash back to be used at Disney theme parks, and some that allow you to direct money into retirement accounts.

When used responsibly, these credit cards can save you a lot of money. Do some research to find the credit cards with the best rewards for you, and try to stay away from cards with an annual fee, if possible. (See also: 5 Tricks to Making the Most of Your Reward Miles)

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This article is from Tim Lemke of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Ways Good Credit Is Better Than a Boyfriend

Sarah Winfrey — Thu, 18 Jan 2018 09:00:07 +0000

Having good credit may not sound like much when compared to romance. After all, there aren’t many candlelit dinners, vases overflowing with roses, or long walks on the beach with good credit.

However, while having a significant other is a wonderful thing, a strong credit history can enhance your life in ways romance can't quite match. Here are some things that your love life can’t always promise you — but good credit can.

1. Good credit is always there for you

No matter when you need it — whether it’s the middle of the night, or the middle of the workday — good credit is always there for you. Even if you just want to check it again, one more time to feel more secure, good credit doesn’t think you're being clingy.

Good credit doesn’t require anything special to keep it happy: Simply keep up with smart money habits, and it will show up wherever and whenever you need it, whether it’s for a car loan, a home loan, or that new apartment you’ve been wanting. (See also: 6 Ways Life Is Better With Good Credit)

2. Good credit comes through in an emergency

Do you need to move across town quickly? Good credit will help you land an awesome new apartment. It will also help get your utilities set up without any deposits or letters of guarantee, making the whole process quick and painless.

Maybe your car got totaled and you need a loan for a new one, fast. Good credit will come through for you there, too, giving you a better chance of getting the best terms on the loan for your new ride. (See also: 5 Ways to Improve Your Credit Score Fast)

3. Good credit rewards you every day

When you have a solid credit score, you stand a much better chance of qualifying for the best rewards credit cards that fit your needs and lifestyle, and at a much lower rate. This means that every time you swipe, you’ll earn bonuses, miles, or cash back that will make your life a little sweeter. And it’s all thanks to good credit, who helped you land the cards in the first place.

A romantic partner might reward you on occasion, but there will undoubtedly be some rocky times. That high credit score, however, is committed to making your life a little better every single day. (See also: The Best Credit Cards for People With Excellent Credit)

4. Good credit saves you money

Birthdays, holidays, anniversaries: Significant others can be expensive! Good credit, on the other hand, helps keep your money in your pockets. You’ll pay less in deposits for things like utilities and mobile phone contracts. You’ll pay less in interest on loans and credit cards. Your auto insurance rates will be lower, too. Every day, you’ll have more money to spend on the things that make you happy, all courtesy of good credit.

5. Good credit helps you get a home

Buying a home with your significant other can be pretty scary. Buying a home with good credit, though, is easy. You'll get preapproved in a snap, and your mortgage payment will be lower thanks to a better rate. This will leave you with more room in the budget for things like decorating, dining out, and — most importantly — savings. (See also: What Is a Good Credit Score and Why Is It Important?)

6. Good credit helps you get your way

There’s no partner on earth who will let you have your way all the time — but good credit will. Maybe you need a small loan to cover an unexpected home repair. If you harness the negotiation power of a sky-high credit score, you can ask for a lower interest rate or a more attractive repayment plan. You can also shop around for the best quotes from different lenders, and leverage them to get an even better deal.

Romantic relationships make life worthwhile and so does having strong credit. Sometimes, romance is better — but other times, a good credit score is more comforting, reliable, supportive, and helpful than a boyfriend.

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This article is from Sarah Winfrey of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

11 Ways to Prepare for Your Best Black Friday

Mikey Rox — Thu, 09 Nov 2017 09:00:07 +0000

Don't let the success of Cyber Monday fool you: Black Friday is still a massive holiday spending day. According to the National Retail Federation, over 154 million consumers shopped over Black Friday weekend in 2016 — up from 151 million the year before.

Chances are, you're going to be one of those many consumers shopping on Black Friday this year. But you don't have to totally blow your budget in the process. There are ways you can soften the blow to your bank account with advance preparation. Here's how.

1. Put your common indulgences on hold

I like to have my hair cut every two weeks. But when I'm trying to save, I push the cut out to every three weeks. My haircuts cost $17 including tip, and if I adhered to this schedule on a regular basis, I'd save a whopping $148 a year. You may have an indulgence like this that you can honor less frequently or stop altogether while you try to budget more strictly during the holidays. These indulgences usually aren't cheap, and forgoing them will provide a sizable amount of extra dough for you to use for gift shopping.

2. Focus on paying off any existing credit card debt

Before you start swiping your cards left and right, it's important to tackle any existing credit card debt, especially if you've only been making minimum payments up to this point. Concentrate on the highest-interest cards first; you'll save more in the long run by paying those down or off as soon as possible. (See also: 5 Ways to Pay Off High Interest Credit Card Debt)

3. Pause or change your media subscriptions

The holidays are busy. Shopping, parties, pageants — you know the drill. All that running around probably leaves you with little time to use the subscription services for which you're paying a premium. So don't.

"Consider pausing subscriptions for a few months, or temporarily changing services to a lower-priced tier," advises Lindsay Sakraida, director of content marketing with DealNews. "For example, if you pay extra for Hulu without ads, premium Netflix, or extra data cell service, you might want to adjust all of them for a month or two to save some cash for Black Friday and the holidays."

4. Pick up short-term gigs and odd jobs for quick cash

I participate in several "gig" services throughout the year, but this side work really picks up around the holidays — and that helps my disposable income swell. Pet sit via Rover.com, pick up passengers using Lyft, host guests in your home through Airbnb, and deliver groceries with the help of Instacart. I do it all, and I highly recommend looking into any one of these opportunities for quick cash. (See also: 8 Seasonal Side Hustles That'll Cover Your Holiday Spending)

5. Make a gift list and establish a firm maximum budget

Make your list, check it twice, and decide how much you want to spend on each recipient. Once that budget is set, stick to it. Better yet, make it your goal to come in under the amounts you've established for each person so you can treat yourself to a little something special when all is said and done. (See also: The Simple Holiday Budget Anyone Can Follow)

6. Research the Black Friday deals ahead of time

News of many Black Friday offers will be released well in advance — several retailers, like Walmart, Costco, Kohl's, and JCPenny have already whetted consumers' appetites with "leaked" deals — which allows you plenty of time to research the best of the best. There are entire sites, such as Best of Black Friday, dedicated to compiling the deals in one place.

7. Start shopping early to spread out your spending

Why wait until Black Friday if you recognize a great deal when you see one? Just because the day after Thanksgiving receives heavy promotion doesn't mean there aren't other great deals before the stampedes begin.

"Make it a point to get a jump-start on planning and shopping early so you have a few months to purchase gifts instead of waiting until the holiday season," suggests Natasha Rachel Smith, personal finance expert at TopCashback.com. "Also, don't forget about deals on Thanksgiving. Every year Black Friday has crept up earlier and earlier. In fact, in recent years, some deals sell out before Black Friday." (See also: 6 Ways to Score a Black Friday Deal Without Leaving Home)

8. Have a game plan before stepping foot in the store

Similar to never going to the supermarket on an empty stomach, don't head into the holiday season without a game plan.

"Most major retailers will release their deals for Black Friday the week before to give consumers time to plan and get excited about what they want to purchase," Smith says. "Use this time wisely to see what is going to be on sale and compare deals at each retailer. By creating a game plan, you can prioritize any items that sell fast or are at the best-discounted price. Not only will you save time but you'll save money too by planning what to get, when, and where." (See also: 8 Frugal Skills You Need to Survive Black Friday)

9. Consult your cash back apps before heading out

I've been killing it in the cash back game lately, thanks to apps like Ibotta and Checkout 51. The trick is to consult these apps before you go shopping so you know what's available and opt in if required. With Ibotta, for instance, many times it requires you to make purchases through its app — it will launch the retailers' sites for you, like Under Armour, as an example — so it can track your purchase and deposit the cash back you've earned. Every penny returned to you helps. Trust me — you will be thankful for this at holiday time. (See also: 7 Apps That Actually Pay You to Shop)

10. Consider your method of payment for maximum savings

You might think that cash in hand is the best way to shop on Black Friday (it certainly can help avoid overspending if you're disciplined), but you could be disqualifying yourself for deals available through other methods of payment. Capitalize on your Black Friday spending by deciding how you're going to buy things — cash, debit, or credit card — to reap the best benefits.

Scope out all your payment options and use the bonuses and rewards in your favor. If you do the research and find that you want to apply for a specific card, do so a couple weeks in advance to ensure you receive it in time to use it. Using the shopping season to get bonus cash back that has a spending requirement can give you help ease the holiday costs. (See also: Read This to Maximize Your Rewards and Cash Back This Holiday Season)

11. Renew your commitment to financial freedom

It's easy to go overboard during the holidays, whether it's on gifts or social activities. Don't let yourself off the hook on your financial goals just because it's the holidays. Stay committed to them and use the holidays to focus on gratitude rather than the mad dash to grab discounts.

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This article is from Mikey Rox of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Ways to Tell If a Credit Card Offer Is a Good One

Annie Mueller — Tue, 10 Oct 2017 08:30:10 +0000

Credit cards can be a powerful tool for your finances if you use them wisely. In order to do that, though, you need to know exactly what you're getting into with each credit card. Here's what you should look for to determine if a credit card offer is good or not.

1. Look for the lowest interest rate

Saying "low interest rate" and "credit card" in the same sentence is almost paradoxical; credit cards are high-interest loans, which is why carrying a balance on them is such a bad idea. However, within the limited world of credit card interest rates, you want to go as low as possible.

Credit card interest rates can range from 13 percent all the way up to 22 percent. You'll want to consider two interest rates when you look at a credit card offer: the introductory interest rate, and the annual percentage rate that kicks in once that introductory period is over. (See also: The Best Low Interest Rate Credit Cards)

2. Consider the introductory interest rate

Sometimes it's worthwhile to take a card with a higher APR if it also provides a longer, lower introductory interest rate. It depends on how you plan to use the card. For instance, if you're going to make a big purchase on a card and pay it off within a few months, you might want to get the card with the 0 percent introductory interest rate for 15 months, even though its annual rate is higher than another offer.

The key here, of course, is to be sure you stick to your plan and pay off the balance before the introductory term is up. Be aware, too, of factors that could cause that introductory rate to go away sooner than expected; one missed or late payment, for instance, might cause the 0 percent interest rate to turn into that 19 percent interest rate you really want to avoid. (See also: 6 Things You Might Miss in Your Credit Card's Fine Print)

3. Look into the points and perks

Some people use credit cards to their advantage by accumulating reward points or other perks. If you're smart with your credit card use and pay off your balance monthly, that can be a good plan.

But it's only worth the trouble if the points or perks are things that have value for you in real life. If you travel frequently, for example, a credit card that gets you hotel room discounts and better airfare can be a great deal. Shop around for the best points-per-purchase ratio so you get the most return for your dollars spent. (See also: The Best Travel Reward Credit Cards)

And, of course, you'll need to be aware of any fine print that might keep you from accumulating those points or perks. For example, are there particular types of purchases that don't count for credit card rewards? If so, can you still use your credit card enough on other, valid purchases to accumulate the rewards you want?

4. Check out their protective policies

Identity theft is a very real issue, and you'll want to know that any credit card you use has good security measures in place to prevent it from happening. You should also look for a card that will protect you and your assets in the case of identity theft or fraudulent purchases. What are their terms for protecting your identity, and what action will they take if your card is lost, stolen, or used fraudulently? (See also: 14 Awesome Credit Card Perks You Didn't Know About)

Most legitimate credit card companies offer fraud protection, but don't assume that's so. Read the fine print to be sure that the card you're considering will cover any fraudulent charges. Will they require you to provide proof of any kind in order to receive reimbursement?

5. Check out all possible fees

Are there hidden fees for every possible scenario? It's standard for a credit card to come with fees for late or missed payments, of course. How much are these fees, and when are they assessed? Do the fees increase if you accumulate more than one? Are there unexpected ways in which you could end up accruing fees? There may be fees for particular types of transactions (such as cash advances or balance transfers). Look for a card offer that designates the fees it will assess and the amount for each one so you can be sure to avoid them. (See also: The Best Credit Cards With No Balance Transfer Fees)

6. Consider all potential use limits

How you plan to use the card is a big factor in which the credit card offer can benefit you the most. For example, if you want a credit card to use while traveling, you'll need to make sure the card is accepted at most places where you are going, and has no foreign transaction fees. If, on the other hand, you want a credit card for your child to use at college, you might prefer a card with a lower credit limit and a more forgiving interest rate. (See also: 4 Important Ways College Students Should Use Credit Cards)

Consider how you'll use the card and search for an offer that gives you the maximum benefits for the precise use you have in mind. Knowing how you'll use a credit card is key to using one wisely, and remember: In all cases, paying off the balance as quickly as possible is key to keeping more money in your pocket. (See also: 12 Travel Perks You Didn't Know Your Credit Card Had)

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This article is from Annie Mueller of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Who Really Owns Your Digital Assets?

Damian Davila — Wed, 27 Sep 2017 08:30:12 +0000

Throughout your life, you accumulate a wide variety of assets, including cash, real estate, and vehicles. But you've also probably been collecting assets of the digital kind — whether that be music downloads, frequent flyer miles, or cryptocurrency. When you put so many of your hard-earned dollars into virtual goods, there are some important considerations to keep in mind if you want to pass them on to your heirs.

What are digital assets?

Many people think of digital assets as digital copies of things that you purchase online, such as music or ebooks, but there are other types of digital assets. They include things that you store in virtual storage systems, such as Dropbox or iCloud. Some examples are photographs in your Flickr account, financial documents in your Box account, and bitcoins in your Coinbase account.

Social media accounts are also digital assets. Even if they don't have any monetary value, the contents may be something you want to bequeath to your heirs.

It can be easy to assign a dollar value to some digital assets, and difficult for others. The dollar value of an online-only savings account, for example, is as straightforward as it gets. On the other hand, a photo collection of the first 10 years of your son's life could be worth several thousands of dollars to you and nothing to the average Joe.

Taking care of your digital assets

Here are some best practices for taking care of your digital assets once you're no longer in the picture.

1. Read the fine print of your user agreement

Just because you hit the "Buy now" button for a digital file doesn't really mean that it's yours. Unlike physical books, CDs, DVDs, or vinyl records, purchasing digital works grants you no ownership rights. Most companies just license you the right to access and use the song or video.

For example, if you read Amazon's Conditions of Use, you'll find that "Amazon or its content providers grant you a limited, nonexclusive, nontransferable, non-sublicensable license to access and make personal and noncommercial use of the Amazon Services." In Amazon's Music Terms of Use, it also notes that your account can't be shared or transferred: "You may not share your Amazon.com username and password with others or use anyone else's Amazon.com username and password."

In other words, you don't own the asset and you can't get around that fact by giving your account password to anyone else.

2. Double check if digital assets can be in your will

If you haven't already, you need to create a last will and testament. But whether you can include a particular digital asset in the will depends. Not only must you actually own the digital asset, but also you must be able to transfer it.

Every company treats digital assets differently. For example, let's take a look at three cases of transferring airline frequent flyer miles upon death:

Air Miles Canada allows you to transfer ownership of air miles at no charge when an account holder has passed away.
American Airlines' AAdvantage program indicates that "mileage credit is not transferable" even to estates, successors, or assigns. However, American Airlines includes a clause that it may make exemptions upon its sole discretion and payment of any applicable fees.
Delta SkyMiles clearly outlines that "Miles are not the property of any member" and may not be transferred under any circumstances, including death.

3. Store a repository of all passwords

This is key. While your executor (the person executing your estate after your die) will need your login credentials to access your digital assets, they will have no legal authority to access your passwords under most state jurisdictions.

So, plan to leave a letter to your executor with the usernames and passwords of the accounts that you would like to pass on to beneficiaries. While a simple letter containing the account information can do the trick, there are also several digital alternatives. Some digital services that allow you to pass on digital assets are Password Box's Legacy Locker and YouDeparted.com.

4. Take advantage of existing programs

Some companies are already taking steps to plan your digital afterlife.

Google's Inactive Account Manager allows you to instruct Google to transfer data from several services, including Google+, Picasa Web Albums, and YouTube to specific individuals after three to 12 months of inactivity.
Facebook can "memorialize" an account after its owner has passed away.

5. Designate a beneficiary for all financial accounts

All types of banking and investment accounts provide you the option to designate a beneficiary. Without a beneficiary, your account will most likely end up in probate. While some states may grant your family some protection, designating a beneficiary well in advance is the best way to make sure that your digital moneys reach the right person(s).

You can change the beneficiary of your account as many times as you need. Every time that you go through a major life change, such as marriage, birth of a child, or retirement, you should revisit who your beneficiaries are.

6. Check your local and state legislation

In 2014, Delaware became the first state to sign legislation (House Bill 435) granting families the right to the digital assets of loved ones who become incapacitated or pass away. The law includes a wide rage of digital assets, including computer programs, audio files, images, and more. It's reasonable to expect similar legislation to appear in other states.

7. Instruct your beneficiaries to still give it a shot

Even when the company has a reputation of not budging and an airtight user agreement, tell your beneficiaries to try anyway. You never know when a company may make an exception. Airlines, in particular, are often willing to work with survivors who want access to a spouse's frequent flyer miles.

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This article is from Damian Davila of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How Families Can Earn and Use Travel Rewards

Jason Steele — Fri, 15 Sep 2017 08:30:05 +0000

When it comes to travel rewards, families have different needs than single travelers and couples. For example, families are typically less flexible than other travelers, as they need to work their vacations around school schedules. Families also tend to go to popular vacation destinations during peak travel seasons, while others may be more interested in out-of-the-way destinations. And obviously, families tend to travel in larger groups than singles or couples.

So, if you need to earn rewards that you can use toward a family vacation, consider these award travel strategies. (See also: How to Use Miles and Points for a Big Award Trip)

The Southwest plan

Southwest Airlines is an ideal carrier for family travelers. It offers two free checked bags for everyone, and it doesn't impose fees for changing your reservation once you've purchased tickets. It also features early boarding for families with young children, and an open seating policy that makes it easy for families to ensure that they are sitting together.

Southwest also offers the Companion Pass, which lets you book a second extra ticket at no charge (other than taxes), on every flight including award tickets. To receive a Companion Pass, you need to earn 110,000 points within a single calendar year. Fortunately, Southwest offers various credit cards that help you get there. The pass can significantly cut your family's travel costs for the year.

Earn miles that can be redeemed as travel statement credits

The problem that most families have with traditional frequent flyer programs is that awards are seldom available at the lowest mileage levels. This is especially true at peak travel times when families travel, and for groups of three or more.

Therefore, the best way for families to earn award travel is to use a credit card that offers miles that can be redeemed as statement credits toward any travel reservations. These travel rewards credit cards allow you to book your own travel (flights, hotel, car rentals, cruises, tours, and more) on any booking site you prefer, and then use your points toward those purchases. This gives families the most flexibility in terms of being able to use their hard earned travel rewards for an actual trip. (See also: Best Credit Cards With Easy Travel Redemption)

Earn points that can be transferred to different frequent flyer and hotel programs

Another great award travel strategy for families is to earn flexible rewards that can be transferred to numerous travel partners. This gives you the ability to earn points on your credit card without having to commit to a particular airline or hotel chain.

Cards in this category may allow you to rack up points, and then transfer them when you're ready to use one of several popular airline or hotel rewards programs. While travel statement credits are even more flexible, with those programs your points are usually worth about 1 cent a piece. You can often get a better rate when you transfer to, say, an airline program and book an expensive flight. (See also: Which Airline Rewards Program Has the Best Value for Their Miles?)

Be flexible with travel plans and expectations

Redeeming travel rewards for a trip is not for the faint of heart. While going with the flexible redemption option allows you the most freedom to plan a trip according to your precise preferences, being flexible with your plans will give you the most value out of your hard earned rewards. This means that if you want to get the largest discount off your trip, you'll want to identify the destinations and resorts that are available under that travel program. You might not get the exact hotel you want, or even visit the exact city that you want, but if you can be flexible and open minded, even a large family can take advantage of travel rewards and redeem them for an amazing vacation. (See also: 5 Tricks to Making the Most of Your Reward Miles)

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6 Reasons Cash Back Is Better Than Travel Rewards

Jason Steele — Tue, 12 Sep 2017 08:30:10 +0000

When you apply for a rewards credit card, you usually have to choose between cash back and travel rewards. To help sway your decision, the companies that offer travel rewards credit cards often try to seduce you with images of exciting vacation destinations that you can supposedly use your rewards for. (See also: How Travel Rewards Credit Cards Really Work)

For people who travel often, these rewards programs can be very valuable. Some expensive airfares, for instance, can be had for rewards rates that no cash-back card can compete with. (See also: Which Airlines Offer the Best Value for Their Miles?)

But most people don't travel enough to earn the points needed to score such deals. You may find the points and miles that these travel reward cards offer to be difficult, or sometimes impossible, to redeem for reservations you need. As a result, cash back credit cards are the better choice for many people. (See also: How Cash Rewards Credit Cards Really Work)

Here are six reasons that cash-back cards could be a better choice than travel rewards.

1. Cash back offers consistent value

What's a point or mile worth with your favorite airline or hotel program? You may never know, as you could receive excellent value from your rewards one day, and very poor value at another time. But with cash back, you always know exactly what your rewards are worth (usually 1 cent per point or a certain percentage of your purchases).

2. Cash-back cards have gotten more competitive

It used to be that a strong cash-back card allowed you to earn 1 percent on most purchases, and perhaps 2 percent on a few bonus categories such as groceries or gas. But now, there are plenty of cards that offer as much as 5 or 6 percent bonus cash back on purchases from eligible merchants such as gas stations, grocery stores, and office supply stores. (See also: How Credit Card Issuers Classify Your Purchases for Bonus Points)

3. Frequent traveler programs are less valuable

If you've tried to redeem your airline miles or hotel points recently, then you know how hard it can be to get substantial value from your rewards. For example, most airlines now charge a "standard" rate that requires at least double the miles of the traditional rates, often referred to now as the "saver" rates. Unfortunately, airlines have gotten stingy about the amount of award seats available at the saver rate. (See also: Which Credit Cards Have the Best Travel Redemption Value?)

Likewise, hotel programs may claim to make every standard room available as an award for points, but many independently owned properties have gotten around this by curtailing the number of rooms that are labeled "standard." As a result, you may well be told that no rooms are available for your points, as the remaining ones have a superior "city view" or "garden view."

4. Cash back is more flexible

Even when you can earn travel rewards that are equal in value to the cash back that you could have earned, you may find yourself wanting cash instead. By using a travel rewards card, you are limiting yourself to travel rewards, whether or not you actually want or need to travel. For example, if you have several thousand dollars' worth of travel rewards, you might regret not earning cash back if you decide not to travel next year due to illness, job loss, or just a busy work schedule.

In short, you can always use your cash back to pay for travel reservations, but you can't pay your bills with frequent flyer miles. (See also: Best Ways to Earn Cash Back Without Spending Extra)

5. Points and miles depreciate, while cash earns interest

As travel reward programs have become less valuable, your points and miles have fallen in value as a "currency." And there's seemingly no end to this process. It's a fair bet to say you can expect the miles that you've already earned to fall in value each year. This is important as it can take some people years to save up enough travel points for a big trip. On the other hand, you can invest your cash back rewards and earn interest just as you would on your other savings.

6. Travel prices are falling

Flying is less expensive than it once was, thanks in part to low fuel prices and increased competition from ultra low-cost airlines. It's actually common to find sales offering domestic airfare for less than $100 each way. While that's great news for travelers, it also means that your frequent flyer miles are worth less than they were when flights were more expensive. In addition, home sharing services like Airbnb have reduced the cost of lodging for many travelers. This makes hotel stays less necessary and their rewards points less valuable.

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Don't Carry a Balance? Here's Why You Still Need a Credit Card

Mikey Rox — Fri, 25 Aug 2017 08:00:06 +0000

Anybody can go into debt, quickly. Giving into impulse buys is only a swipe away with plastic in your pocket. It's easy to lose track of how much you're spending, which can spiral out of control before you know it.

For these reasons, maybe you avoid credit cards or feel they aren't worth the hassle. That's one way to stay out of trouble, of course, but even if you're committed to limiting your amount of personal debt and you refuse to carry a balance, there's a case to be made for using credit cards. Take a look.

1. You'll build or maintain a good credit score

If you're interested in building a credit history, owning and using a credit card is often necessary. The trick, of course, is managing the account responsibly.

The way a credit card impacts your credit score and personal finances has everything to do with the way you handle the account. Just because one person you know had a bad experience with credit doesn't mean you'll have the same experience, especially if you stay on top of things.

Paying off your balance every month or making timely minimum payments adds positive activity to your credit report. This is essential to establishing credit. And if you already have a credit history, periodically using a credit card keeps your account active and helps build an even stronger credit score. (See also: How to Use Credit Cards to Improve Your Credit Score)

2. You can receive rewards based on usage

Another reason to use a credit card is the opportunity to earn rewards for every purchase — because who doesn't love a good freebie? Your rewards can come in the form of points, miles, or cash back redeemable for a check, statement credit, airline tickets, hotel stays, gift cards, or merchandise. The more you use the card, the more free or discounted stuff you can score.

The downside is that reward credit cards tend to have slightly higher interest rates than non-reward cards. But if you're disciplined enough to pay off your balance in full every month, you don't have to feel guilty because there won't be any interest to worry about. (See also: Best Cash Back Credit Cards)

3. It'll help you survive an emergency

It doesn't matter how responsible you are with money: Most people go through a rough patch at some point in life. If you hit a financial low or deal with a string of unexpected expenses, a credit card can function as a short-term loan providing cash for urgent situations. You'll pay interest on these charges if you carry a balance, but this option is cheaper than a short-term cash advance loan, and you'll maintain your privacy since you won't have to borrow from friends or family. Just make sure to prioritize paying off this balance when your emergency is handled.

4. It's safer than cash

Using a credit card is also safer than cash, especially when traveling. If you lose or have your wallet stolen, you can't replace the cash inside. But if your credit cards are lost or stolen, your bank can issue a replacement card and remove fraudulent charges from your account.

Since bank debit cards are linked to your bank account, credit cards are sometimes safer than these cards. If someone uses your debit card fraudulently, this person can drain your bank account, resulting in overdraft fees. Your bank will reimburse your money — not all is lost — but it can take up to 10 days to sort through the mess and get your money back. (See also: 4 Reasons Credit Is Safer Than Debit)

5. It'll help you keep accurate expense records

Credit cards also are useful for keeping track of spending for business and tax purposes, especially if you're not the best at saving receipts. Since credit card statements include a record of your purchases, use your credit card for business-related purchases, and then refer to your statement when recording business expenses. For this to work, keep a close eye on how much you're spending throughout the month to avoid going overboard and getting into long-term debt.

6. It buys extra protection

A credit card isn't only practical during an emergency or when you're looking to earn reward points, it also buys extra protection when used for certain purchases. For example, some credit cards offer rental car coverage at no additional cost, which means you can decline a car rental company's optional coverage when booking your reservation.

Some credit cards have an extended warranty policy on select purchases too, giving you an extra year of protection after a manufacturer's warranty expires. Other credit cards may include travel insurance protection which compensates card members for costs incurred due to trip cancellation, lost luggage, travel accidents, etc. (See also: 14 Awesome Credit Card Perks You Didn't Know About)

Benefits vary by card, so contact your credit card company for information on member perks.

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This article is from Mikey Rox of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

10 Little-Known Secrets to Saving Money on Your Next Cruise

Holly Johnson — Thu, 24 Aug 2017 08:09:50 +0000

Cruising has long been considered an affordable vacation option for couples, groups, and families. With cruise ports dotted across the country, if you live near a coastline, you could probably drive to your departure port and save money on airfare. And with your food and entertainment included in the cruise fare itself, the bulk of your vacation expenditures are paid for upfront.

Once you pay for your cruise, plus applicable taxes and port fees, you'll have little else to cover other than transportation, tips, alcohol, and cruise stop excursions.

Of course, creative cruisers have been saving in other ways for years. With some out-of-the-box thinking, there are numerous ways to save on common cruise "extras" or avoid them completely.

1. Book when "kids cruise free"

With onboard kids' clubs, pools, water parks, and endless family-friendly activities to choose from, most cruises are ideal for families with kids.

Still, you may be able to save even more if you book a cruise where "kids cruise free." Believe it or not, some of the most affordable cruise lines for families waive cruise fare for kids on at least some sailings. For example, MSC Cruises has the most enticing offer, which is year-round. On many of their Caribbean cruises, children ages 11 and under cruise free with paid adults.

Keep in mind, however, that even "free" kid cruises require the payment of government-mandated taxes and port fees for your stowaways.

2. Save up to 82 percent on last-minute cruises

While many people plan their cruise vacations far ahead of time, you can save a bundle if you wait until the last minute. A website called VacationstoGo.com promises up to 82 percent off unsold cruises that depart within 90 days.

At the moment, you can score a six-night Alaskan cruise on Norwegian for as little as $449, or a four-night Caribbean cruise on Carnival for as little as $224 per person. A seven-night French Polynesia cruise on Paul Gauguin that retails for $7,000 per person can be had for $2,499 per head on certain dates.

Keep in mind, however, that the lowest discount fares usually apply to interior rooms and may not include taxes and port fees.

3. Save with cruise-friendly rewards credit cards

An array of rewards credit cards let you earn points redeemable for any cruise of your choosing. Most of the best travel credit cards offer this option, especially flexible cards.

Carnival and several other cruise lines offer their own co-branded credit card with a sign-up bonus and ongoing earning potential, as well. If you want to save money, it helps to check out the best credit cards for cruises ahead of time.

4. Bring your own booze

While cruises include food, snacks, entertainment, and some drinks, most don't include alcohol in their regular cruise fares. Unfortunately, onboard drinks are notoriously expensive, and they can really add up if you don't watch it.

The good news is, you may be able to bring your own booze on board — specifically wine. Each cruise line has its own policy. For example, Carnival lets you bring up to one bottle of wine per person in your luggage on embarkation day.

5. Book your own excursions

Cruises are interesting because they let you visit multiple destinations with a diverse offering of activities. On the flip side, "excursions" are not generally included in cruise fare and can be expensive on their own. Sometimes excursions can cost as much as the cruise itself!

Most of the time, you can avoid cruise ship markup by booking excursions yourself. Imagine your Carnival cruise stops in Aruba and you want to go snorkeling in the crystal clear waters. You could book Aruba's Dushi Sail & Snorkel excursion with lunch through Carnival for $89.99 per adult, or you could book directly with the operator for $61 per adult.

Websites like Viator.com are especially helpful when it comes to booking shore excursions at a discount.

6. Skip the excursions

Most cruise stops offer free stuff to do in addition to paid shore excursions. If you're creative and flexible, you can enjoy each port without paying an arm and a leg.

Most beach destinations have free public beaches, and other stops let you sightsee or visit parks for free. Cruise critic forums are a great place to get ideas for free stuff to do. You can also gain insights on local bus routes that will take you away from the port and off the beaten path for cheap.

7. Get your status matched

Cruise "status" works a lot like hotel or airline status. If you cruise with the same cruise line often enough, you can eventually earn status upgrades good for cruise discounts, room upgrades, early boarding, and additional perks.

But, what if you're tired of cruising with the same company over and over? While it's not well known, cruise lines will occasionally "match" your status to earn your business. MSC Cruises does this all year long, and will match your cruise or even your hotel status to earn your business.

8. Book a repositioning cruise

When cruise lines need to move their ships from one place to another during seasonal changes, rather than sending an empty cruise ship, they will often offer a repositioning cruise at a steep discount. These one-way journeys — say, from Alaska to Hawaii — may offer a few stops in the early part of the trip, but otherwise, you are at sea for much of the time. You can still enjoy the sea views and take advantage of onboard activities.

You can shop for repositioning cruises on any cruise website, and on discount travel websites like Expedia and Travelocity. You can also scoop even lower fares on repositioning cruises through VacationtoGo.com.

9. Get a credit card with no foreign transaction fees

Cruising to multiple international destinations sounds like a lot of fun, and using your credit card is usually the best way to get around without exchanging currency. Unfortunately, many cards charge a foreign transaction fee that tacks an extra 3 percent onto everything you buy.

You can get around these extra charges by signing up for a credit card with no foreign transaction fees before your cruise. Some cards that fall into this category have rewards programs that make them even more valuable, and/or come without annual fees, too.

10. Turn cruise gift cards into discounts

If you're into credit card rewards and have your heart set on a specific cruise, it can pay to combine both goals into one. By purchasing gift cards for your favorite cruise line with your rewards card, you can earn more rewards over time, even using them to offset the cost of your cruise if you want. Check your credit card rewards portal to see if it offers cruise gift cards as redemption options for your points. Otherwise, use your favorite rewards credit card to purchase them.

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This article is from Holly Johnson of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: