Credit Cards

How to Protect Yourself From Credit Card Theft

Emily Guy Birken — Sat, 07 Nov 2020 22:45:33 +0000

Last fall, I received an email that appeared to be from my web host. The email claimed that there was a problem with my payment information and asked me to update it. I clicked on the link in the email and entered my credit card number, thinking that a recent change I'd made to my site must have caused a problem.

The next morning, I logged onto my credit card account to find two large unauthorized purchases. A scammer had successfully phished my payment information from me.

This failure of security is pretty embarrassing for a personal finance writer. I know better than to click through an email link claiming to be from my bank, credit card lender, or other financial institution. But because the email came from a source that wasn't specifically financial (and because I was thinking about the changes I had made to my website just the day before), I let myself get played.

Thankfully, because I check my credit card balance daily, the scammers didn't get away with it. However, it's better to be proactive about avoiding credit card theft so you're not stuck with the cleanup, which took me several months to complete.

Here's how you can protect yourself from credit card theft.

Protecting your physical credit card

Stealing your physical credit or debit card is in some respects the easiest way for a scammer to get their hands on your sweet, sweet money. With the actual card in hand, a scammer has all the information they need to make fraudulent purchases: the credit card number, expiration date, and the security code on the back.

That means keeping your physical cards safe is one of the best ways to protect yourself from credit card theft. Don't carry more cards than you intend to use. Having every card you own in a bulging wallet makes it more likely someone could steal one when you're not paying attention and you may not realize it's gone if you have multiple cards.

Another common place where you might be separated from your card is at a restaurant. After you've paid your bill, it can be easy to forget if you've put away your card (especially if you've been enjoying adult beverages). So make it a habit to confirm that you have your card before you leave a restaurant.

If you do find yourself missing a credit or debit card, make sure you call your bank immediately to report it lost or stolen. The faster you move to lock down the card, the less likely the scammers will be able to make fraudulent charges. Make sure you have your bank's phone number written down somewhere so you're able to contact them quickly if your card is stolen or lost. (See also: Don't Panic: Do This If Your Identity Gets Stolen)

Recognizing card skimmers

Credit card thieves also go high-tech to get your information. Credit card skimmers are small devices placed on a legitimate spot for a card scanner, such as on a gas pump or ATM.

When you scan your card to pay, the skimmer device captures all the information stored in your card's magnetic stripe. In some cases, when there's a skimmer placed on an ATM, there's also a tiny camera set up to record you entering your PIN so the fraudster has all the info they need to access your account.

The good news is that it's possible to detect a card skimmer in the wild. Gas stations and ATMs are the most common places where you'll see skimmer devices. Generally, these devices will often stick out past the panel rather than sit flush with it, as the legitimate credit card scanner is supposed to. Other red flags to look for are scanners that seem to jiggle or move slightly instead of being firmly affixed, or a pin pad that appears thicker than normal. All of these can potentially indicate a skimmer is in place.

If you find something that looks hinky, go to a different gas station or ATM. Better safe than sorry. (See also: 18 Surprising Ways Your Identity Can Be Stolen)

Protecting your credit card numbers at home

Your home is another place thieves will go searching for your sensitive information. To start, you likely receive credit card offers, the cards themselves, and your statements in the mail. While mail theft is relatively rare (it's a federal crime, after all), it's still a good idea to make sure you collect your mail daily and put a hold on it when you go out of town.

Once you get your card-related paperwork in the house, however, you still may be vulnerable. Because credit card scammers are not above a little dumpster diving to get their hands on your credit card number. This is why it's a good idea to shred any paperwork with your credit card number and other identifying information on it before you throw it away.

Finally, protecting your credit cards at home also means being wary about whom you share information with over the phone. Unless you've initiated a phone call of your own volition — not because you're calling someone who left a voicemail — you should never share your credit card numbers over the phone. Scammers will pose as customer service agents from your financial institution or a merchant you frequent to get your payment information. To be sure, you can hang up and call the institution yourself using the main phone number.

Keeping your cards safe online

You should never provide your credit card information via a link in an email purporting to be from your financial institution or a merchant. Scammers are able to make their fake emails and websites look legitimate, which was exactly the reason I fell victim to this fraud.

But even with my momentary lapse in judgment about being asked for my payment information from my "web host," there were other warning signs that I could've heeded if I had been paying attention.

The first is the actual email address. These fake emails will often have a legitimate looking display name, which is the only thing you might see in your email. However, if you hover over or click on the display name, you can see the actual email address that sent you the message. Illegitimate addresses do not follow the same email address format you'll see from the legitimate company.

In addition to that, looking at the URL that showed up when I clicked the link could've told me something weird was going on. Any legitimate site that needs your financial information will have a secure URL to accept your payment. Secure URLs start with https:// (rather than http://) and feature a lock icon in the browser bar. If these elements are missing, then you should not enter your credit card information. (See also: 3 Ways Millennials Can Avoid Financial Fraud)

Daily practices that keep you safe

In addition to these precautions, you can also protect your credit cards with the everyday choices you make. For instance, using strong, unique passwords for all of your online financial services, from shopping to banking, can help you prevent theft. Keeping those strong passwords safe — that is, not written down on a post-it note on your laptop — will also help protect your financial information.

Regularly going over your credit card and banking statements can also help ensure that you're the only one making purchases with your credit cards. It was this daily habit of mine that made sure my scammers didn't actually receive the computer they tried to purchase with my credit card. The fact that I check my balance daily meant I was able to shut down the fraudulent sale before they received the goods, even though I fell down on the job of protecting my credit card information.

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

5 Reasons Not to Use Debit Cards When You Shop Online

Holly Johnson — Sat, 07 Nov 2020 22:45:14 +0000

Many consumers use their debit cards for everything they buy. Using debit instead of paying with a credit card can help you avoid the potential for debt. The money is taken out of your bank account directly and immediately, so there’s little chance to spend more than you have, unlike using a credit card.

But when shopping online, there are reasons to consider using a credit card instead.

Using a debit card for online purchases can mean enduring greater losses if you're a victim of fraud. Plus, you're giving up valuable consumer protections and rewards each time you make a purchase with debit in a store or online.

Here are all the reasons you may want to stop using debit and use a credit card instead.

1. You may be putting yourself at risk for fraud

It's easy to assume you won't be liable for fraudulent purchases made with your debit card or checking account number, but this isn't the case. Where most credit cards come with zero fraud liability thanks to rules enacted in the Fair Credit Billing Act (FCBA), the same protections don't apply to transactions made with a debit card.

In fact, someone who finds your debit card number could wipe out all the money in your accounts. If you don't notice or report it in time, you won't have any way to get your money back.

According to the Federal Trade Commission (FTC), your level of liability depends on when you notice the fraud and report it. For example, if you report fraud within two business days after it's noticed, you're only liable for up to $50 in losses. If you report fraud within two to 60 days of your statement being mailed to you, you're only liable for up to $500. If you fail to report fraud once it's been 60 days from the date your statement was mailed to you, the FTC notes that you could lose "all the money taken from your ATM/debit card account, and possibly more; for example, money in accounts linked to your debit account."

2. You're missing out on rewards

In addition to putting yourself at risk for fraud, there are plenty of ways you're missing out when you shop online with a debit card. For example, you could be earning cash back or travel rewards if you made the same purchases with a rewards or travel credit card. These rewards can add up quickly, making it easier to see the world or splurge on merchandise, gift cards, and more.

While you can typically earn 1% to 3% back with a rewards or travel credit card, you can also double up on rewards by shopping through a cash back, travel rewards, or airline portal. You can also shop in portals with a debit card in some cases, but you'll mostly be limited to earning airline miles or cash back. (See also: How to Use Airline Shopping Portals to Cash In On Rewards)

3. You won't earn any sign-up bonuses

Using a debit card when you shop online also means giving up on the possibility of earning big sign-up bonuses. Keep in mind that many rewards credit cards offer consumers the chance to earn bonuses worth $500 or more when they meet a minimum spending requirement within a few months.

You may think you need to pay the annual fee on a credit card to qualify for sign-up bonuses or ongoing rewards, but this is far from the truth. The reality is, there are plenty of rewards credit cards that dole out sizable bonuses, ongoing rewards, and more without charging a fee each year. (See also: Don't Make These 6 Credit Card Sign-up Bonus Mistakes)

4. You're giving up valuable consumer protections

Another reason to use credit instead of debit is the fact that you could qualify for valuable consumer protections and free insurance. This can include travel protections like trip cancellation/interruption insurance, rental car insurance, travel accident insurance, baggage delay insurance, and more.

Other protections that can apply to your online purchases include extended warranties, purchase protection, and guaranteed returns. Most of the time, you won't qualify for any of these perks if you pay for your online purchases with a debit card. (See also: How Credit Cards Protect Your Purchases from Damage or Theft)

5. You're not building credit history

The final reason you may want to stop using your debit card is the fact that you're not building credit history based on your online purchases and everyday spending. When you use credit instead of debit, on the other hand, you're making regular purchases and payments that are reported to the three credit reporting agencies — Experian, Equifax, and TransUnion.

Having your credit usage and payments reported to the credit bureaus is huge because it helps prove your creditworthiness and gives them a basis to increase your credit score over time. Using a debit card certainly won't hurt your credit score, but it won't help it, either.

Considering a credit card? Here's a warning

While using debit online can be more risky and less rewarding, it's still important to figure out if you're a candidate for credit card use. While credit cards do come with better protection against fraud, the potential for rewards, and valuable consumer protections, they can make it easier to overspend and wind up in debt.

Before you sign up for a credit card and start using it for purchases, it's important to make sure you're committed to staying on budget and spending only what you can afford. If you wind up with a mountain of debt with the high interest rates most credit cards charge, the rewards and protections you receive won't be much help.

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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:

How to Maximize Rewards on Everyday Spending

Holly Johnson — Tue, 03 Nov 2020 17:32:44 +0000

While many rewards enthusiasts focus on signing up for new credit cards to earn signup bonuses, not everyone has the time or desire to play the signup game. There is effort involved in tracking multiple cards, annual fees, and rewards programs, after all, and some people don't want to spend their time or mental energy this way.

If you're someone who falls into this category, you may be better off maximizing one or two cards instead of chasing rewards. Fortunately, you can earn plenty of rewards over time if you're savvy about your card's benefits and bonus categories.

The key to getting the most out of your rewards cards is understanding how they work and looking for opportunities to earn more points on your everyday spending. Here are some tips that can help.

Brainstorm every bill you could pay with a credit card

Because rewards cards offer points based on each dollar you spend, maximizing the amount you can spend on credit is the best way to boost your rewards haul. The smartest strategy to use here is figuring out how many of your monthly bills you can pay with a credit card.

While you may not be notified or aware, it's possible that bills you've been paying with a check or debit card for years can be paid with a credit card without any fees. While your bills may vary, some expenses you should try to pay with a credit card include:

Rent
Utility bills like electric or gas
Health insurance
Cable television and internet
Cell phone
Taxes
Daycare
Auto and home insurance
Subscription services
College tuition or student loans
Medical bills
Lawn care

Keep in mind that these are just some of the bills you could be paying with credit. Depending on your situation, you could have additional, uncommon expenses to cover that could be paid with credit with ease.

Also, remember that these additional bills should be paid with credit on top of your everyday expenses like groceries, dining out, gas or bus fare, and miscellaneous spending. Every time you buy something in person or online, you should strive to pay with your rewards card if you can.

Leverage your rewards card bonus categories

It's also important to leverage your favorite card bonus categories, whatever they may be. This is especially important if you have a few cards with different bonus categories since you'll want to make sure you're using the right card for bills that let you earn bonus points.

Let's say you have a travel credit card that earns 3x points on dining and travel and another card that earns 6x points at the grocery store. In that case, you would be smart to use the travel card for dining and travel purchases and your other card when you stock up on food. While the amount of rewards you earn with individual purchases may seem nominal, using the right card for the right purchase can help you earn a lot more rewards over time.

Set up auto-pay bills to be paid with credit

Most of us have bills set up to be paid automatically, whether it's our Netflix and Hulu subscriptions, gym membership, or utility bills. Make sure each bill you have set up to be paid automatically is set up to be paid with your rewards card and not a debit card. This way, you can earn rewards points on those expenses every month.

Use shopping portals and dining clubs

Many flexible rewards programs, frequent flyer programs, and hotel loyalty programs have shopping portals you can access to earn extra points. Major airlines like American, Delta, and United also have shopping portals that work similarly. (See also: How to Maximize Rewards Through Credit Card Shopping Portals)

Some programs like Southwest and Delta also offer dining clubs. These programs let you earn additional points or miles just for dining at participating restaurants in your area. It's easy and it's free to join, so you may as well earn extra miles on your spending if you're going to dine out anyway. (See also: Everything You Need to Know About Airline Dining Rewards Programs)

How much the average family can earn

If you are skeptical the average family can rack up meaningful rewards without signing up for new cards over and over again, look at how this might work in real life. For example, imagine a family of four with two rewards card-toting adults. Across the two of them, they have:

A cash back card that earns 2% back
A travel credit card that earns 3% on dining and travel
A rewards card that earns 6% cash back at the grocery store on up to $6,000 in spending each year

To figure out how much this family might earn, we used Bureau of Labor Statistics spending averages from 2017. Here's a rundown of that data for the year plus how much a family could earn in rewards over 12 months based on average expenses:

Food at home ($4,363): $261.78 in rewards at 6%
Food away from home ($3,365): $100.95 at 3%
Utilities, fuels, and public services ($3,836): $76.72 at 2%
Household operations ($1,412): $28.24 at 2%
Household supplies ($755): $45.30 at 6%
Household furnishings and equipment ($1,987): $39.74 at 2%
Apparel and services ($1,833): $36.66 at 2%
Gasoline and motor oil ($1,968): $39.36 at 2%
Other vehicle expenses ($2,842): $56.84 at 2%
Healthcare ($4,928): $98.56 at 2%
Entertainment ($3,203): $64.06 at 2%
Personal care products ($762): $45.72 at 6%
Education ($1,491): $29.82 at 2%

Total rewards: $923.75

While $900+ is a lot to earn in rewards within a year, you have the potential to earn a lot more. After all, these are just some of the expenses the average family faces and not all of them. If you could pay some additional big bills with credit each month like daycare or your rent, you could significantly add to your bottom line.

What to watch out for

While maximizing rewards cards is a smart idea if you're using them already anyway, there are always pitfalls to be aware of when you're using a credit card. Here's what to watch out for during your quest for more cash back and travel rewards.

Fees for using credit

While there are many bills you can pay with credit without a fee, some vendors, merchants, and service providers charge a fee to use a credit card as payment. Fees are especially prevalent on bills such as utilities, cable or internet, rent, and insurance. Make sure to verify you aren't being charged a fee to use credit before you proceed.

Annual fees

Don't forget that some rewards cards charge annual fees. These fees may be worth it depending on your spending and rewards haul, but you should always factor them into the equation to make sure each fee is worth paying. If you're against paying annual fees, look for rewards cards that don't charge one.

Budgeting mishaps

Using a credit card for all your expenses may simplify your financial life, but it could also cause your budget to fall out of whack. Make sure you're only spending on purchases you planned to make anyway, and that you're tracking your spending and paying off your credit cards regularly.

Debt

Never use credit cards for purchases you can't afford to repay if you're pursuing rewards. The interest you'll pay will always be much more than the rewards you earn. If you're worried using credit will cause you to rack up debt you can't afford to repay, you're better off sticking to cash or debit instead.

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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:

How a Credit Card Can Actually Help You Get Out of Debt

Holly Johnson — Thu, 08 Oct 2020 17:32:44 +0000

If you have high-interest credit card debt, you may believe another credit card is the last thing you need. Another card would only leave you with more open credit after all, and that just means more temptation to spend and rack up even more debt.

But a certain type of credit card debt could help your situation — if you use it the right way. This type of card is a balance transfer card.

How balance transfer cards work

Each balance transfer credit card has its own unique introductory offer you can use to your advantage. Most offer 0% APR from 12 to 21 months, meaning you won't pay interest on transferred balances during that time. However, some balance transfer cards charge a balance transfer fee that typically works out to 3% or 5% of the balance you transfer over.

To illustrate, let's imagine for a moment that you have $10,000 in credit card debt at 19% APR and you're currently making a payment of 5% of your balance, or $500 per month. At this rate, it would take 25 months to pay off your debt, and you would fork over $2,120 in interest over that time.

Now, let's say you apply for a balance transfer card that gives you 0% APR for 21 months in exchange for a 5% balance transfer fee. Once you transferred your entire balance over and added in the fee, you would start repayment owing $10,500 ($10,000 plus a $500 balance transfer fee).

However, the fact that you're not paying interest means you could continue paying $500 per month and pay off your entire balance with zero interest in 21 months. In other words, your balance transfer card could shave four months off your repayment timeline and save you $2,120 in interest. (See also: Here's What a Balance Transfer Does to Your Credit)

Tips for a successful balance transfer

The example above shows why balance transfer cards are so popular. Sure, some of them charge balance transfer fees, but having 0% APR for anywhere from 12 to 21 months can help you get out of debt faster, and lead to thousands of dollars in savings.

According to estimates from Experian, Americans conduct $35 to $40 billion in balance transfer activity each year. This is good news for consumers who are taking advantage, but it's also troublesome since many people get stuck in a situation where they're transferring the same debts to new balance transfer cards every few years.

If your goal is using a balance transfer credit card to get out of debt and stay out of debt, you'll want to set yourself up for success. Here's how you can do that.

Compare offers

Because balance transfer cards each have their own introductory offers, you need to check out more than one. Ideally, you'll settle on a balance transfer credit card that grants you 0% APR for as long as you need to pay down all (or most) of your debt.

Other factors to consider with balance transfer cards include any fees they charge, consumer perks and protections, and rewards programs. However, beware of signing up for balance transfer cards with rewards programs if you worry they'll entice you to spend. The goal with a balance transfer card is paying down debt — not racking up more.

Look for cards that don't charge a balance transfer fee

Keep your eye out for balance transfer cards that don't charge a fee. While most charge a fee to transfer balances upfront, there are several that skip over this fee for balances transferred in the first 60 days. Avoiding this fee will normally save you 3% to 5% of your balance amount, which can help you start paying down your balances right away.

Stop using credit cards

No matter what you do, stop using credit cards once you've transferred your balances to a card that offers zero interest for a limited time. You won't want to use your new balance transfer card for purchases since the goal is paying off your debt, but you should also steer clear of using other credit cards since you could easily rack up more debt and eliminate any progress you've made.

While you're in debt-repayment mode, you should stick to a cash budget or use your debit card instead of credit. That way, you won't "accidentally" rack up new credit card balances you can't afford to repay.

Create a debt repayment plan

Finally, don't forget to create some sort of debt payoff plan for how you'll pay down debt during your card's introductory offer. You should estimate how much you can afford to pay each month and figure out how much debt you'll ultimately pay off if you stay on track. If you can manage to pay off your entire debt over your card's 0% APR offer with a specific payment amount, you should determine if that figure is possible with your monthly income and expenses. And using a good debt repayment calculator can help a lot.

You may also want to look for ways to cut your spending and bills so you can throw more money toward your credit card's balance each month. Start with the low-hanging fruit in your budget — things like grocery spending and dining out, entertainment spending, or regular trips to your favorite department store. Also consider uninstalling any apps on your phone that regularly cause you to spend money, whether it's Instacart, DoorDash, or Amazon. Make spending money more difficult and you're more likely to save over time. And those savings can be allocated toward your debts until they're paid off.

The bottom line

Another credit card may seem like the last thing you could possibly need if you're in debt, but a balance transfer card could help you save money with the right mindset. Consider a 0% Intro APR credit card to pay down debt faster, but don't forget that you'll have to change your spending if you want to get out — and stay out — of debt.

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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:

How to Get Ahead With a 0% APR Credit Card

Holly Johnson — Wed, 19 Feb 2020 09:00:13 +0000

Credit cards have made it extremely convenient to get what we need — from online shopping to everyday purchases, not having to hit the ATM and use cash saves time, space, and energy. But having easy access to credit also means it’s easy to overspend — something you just couldn’t do when paying with cash. You can end up with a mountain of debt that can take years or even decades to pay off.

One kind of credit card may be more likely to set you up for success, and this type of card can even help you save money on interest if you're struggling with debt already. Balance transfer credit cards, which can also be called 0% APR credit cards, actually let you avoid paying interest altogether for a limited time.

Two main strategies can help you get ahead with this type of credit card, but only if you use plastic with a plan and stay disciplined in your approach.

Earn rewards on a big purchase

If you want to make a big purchase and pay it off slowly without having to pay interest, you should check out 0% APR credit cards that let you skip interest payments and earn rewards for each dollar you spend. This type of card typically works well if you need to pay for new appliances for your kitchen, a major home upgrade or repair, or even a semester of college. By charging the large purchase to your 0% APR credit card, you may be able to earn an initial sign-up or welcome bonus as well as rewards as a percentage of your spending.

Of course, there are plenty of rewards credit cards that also dole out big initial bonuses and ongoing rewards while letting you avoid paying interest for up to 21 months. Make sure to compare rewards and cash back credit cards to see which ones might work best for whatever it is you need to buy and pay down slowly over time.

Consolidate high-interest debt

If you have a lot of debt at high interest rates, you can also get ahead with a 0% APR credit card — provided you stop spending and start focusing on debt repayment instead. Balance transfer credit cards often let you secure 0% APR on balance transfers for up to 21 months, although some do charge a 3% or 5% balance transfer fee for the privilege. Even if you do pay a balance transfer fee, however, the interest savings can far outweigh the fee.

If you're against paying a fee to transfer high interest balances over, you can look for cards that waive this fee for a limited time.

How to choose a 0% APR credit card

Whether you want to pay down a large purchase without interest or save money by consolidating high interest debt at 0% APR, it's crucial to make sure you wind up with a new credit card that offers the perks you want. Here's everything you need to look for as you decide.

0% APR offers that give you the time you need

If you want to pay off a large purchase over time or consolidate debt at 0% APR, you'll need to make sure you have enough time to pay off your debt entirely. Definitely compare 0% APR offers to see which ones give you plenty of time to accomplish your goal. If you don't, you'll wind up paying off debt at the standard variable APR, which will likely be very high.

Don't pick a card that might entice you to overspend

If you're really trying to pay off debt, stay away from cards that offer big sign-up bonuses within the first few months. You should use your balance transfer credit card to save money on interest, but don't use it for everyday spending.

Make sure to take fees into account

Most 0% APR credit cards don't charge an annual fee, but you should still compare balance transfer fees and other potential fees you may be charged such as late fees and over-limit fees.

Compare rewards programs

Finally, make sure you check out rewards programs if you want to rack up points on a large purchase. Some cards only let you redeem rewards for gift cards or cash back, whereas others let you cash in points for travel or transfers to airline and hotel partners. Compare rewards programs ahead of time so you earn the type of rewards you want the most.

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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:

5 Smart Strategies to Rack Up More Credit Card Rewards

Holly Johnson — Thu, 30 Jan 2020 17:19:14 +0000

Where it can take months, or even years, to earn significant sums of rewards through regular credit card spending, credit card sign-up bonuses make it easy to earn $300 or more in cash back, or enough miles for a round-trip flight within a matter of months. All that's required to qualify is signing up for a rewards credit card and getting approved, then meeting a minimum spending requirement (usually in the $1,000 to $4,000 range) within a specific length of time (usually three months).

However, there are plenty of scenarios where earning a new credit card sign-up bonus just isn't in the cards. Maybe you're planning on buying a home in the near future and want to keep new hard inquiries off your credit report, or perhaps your credit score recently took a dip and you can't get approved for the top rewards credit cards.

Whatever the reason you can't earn a sign-up bonus right now, there are plenty of ways to rack up rewards using the cards you already have, as well as other methods.

1. Use the right card for different types of purchases

If you have a handful of rewards credit cards with different earning structures, it's crucial to make sure you're using the optimal card for each purchase you make.

Different cards might offer bonus points for certain types of purchases. One card might offer extra points on dining, while another offers bonus points for groceries. The key to maximizing rewards is ensuring you're using the card that offers the most points on everything you buy. (See also: 3 Ways Your Credit Card Rewards Can Make You Rich)

2. Find more expenses you can cover with a credit card

Make sure to go over your monthly spending and bills to ensure every purchase you can make with plastic is being paid with a credit card.

While it's easy to use credit for groceries, gas, and miscellaneous purchases you make, take a few minutes to think outside the box on the biggest expenses you have each month. Could you pay for daycare with a credit card? How about quarterly tax payments? Health insurance premiums? Your monthly utility bills?

The more expenses you can cover with a credit card each month, the more rewards you'll rack up over time. Just make sure you're not paying a fee to pay bills with a credit card. Otherwise, the rewards you earn may not be worth it.

3. Take advantage of shopping portals and dining programs

Airline shopping portals through programs like American AAdvantage, Delta SkyMiles, and Southwest Rapid Rewards let you earn additional airline miles for each dollar you spend, and all you have to do is "click through" your favorite portal before you shop. You'll usually earn an extra 1-3 miles for each dollar you spend at participating stores in these portals, but it is possible to earn an additional 10 miles or more per $1 spent in obscure specialty stores, or when stores are having bonus promotions.

Many airline loyalty programs also offer dining programs that let you earn additional rewards when you dine at participating restaurants in your area. Some even offer initial sign-up bonuses when you dine out at least three times within 30 days.

4. Use Amex Offers or Chase Offers

Both American Express and Chase have their own "offers" that let you earn additional rewards or cash back when you make a specific purchase within a predetermined length of time. You do need to log into your account and add these offers to your card before you make a purchase to qualify, and you'll have to meet all terms and conditions they stipulate as well.

Note that not all Amex Offers and Chase Offers reward you for shopping, per se. Some give you cash back when you spend a certain amount of money with a hotel chain, or when you spend a specific amount of cash on airfare with a certain airline. You might also earn rewards for buying a new mattress, hiring a dog sitter, or signing up for identity theft protection.

Also, remember that both Chase Offers and Amex Offers feature a benefit on top of the rewards you receive. You can score a discount with an offer, but you'll also earn applicable rewards for each dollar you spend with your credit card.

5. Sign up for free loyalty programs

Finally, don't forget that most loyalty programs let you join for free, and that there are plenty of ways to rack up certain types of rewards without a credit card. For example, you can join airline loyalty programs and earn airline miles each time you fly, regardless of how you pay for your airfare. The same is true with hotel programs like Marriott Bonvoy and Hilton Honors, since you earn hotel points for each dollar you spend with these brands.

If you don't travel a lot, also keep in mind that some cash back programs are available for regular purchases you buy. The Rakuten portal, for example, lets you earn up to 40% off purchases made at participating stores like Amazon, Macy's.com, and Walmart.com.

Like other shopping portals, cash back portals also set you up to double up on rewards. You can get cash back through a portal like Rakuten or Dosh for purchases you make, but you'll also earn rewards if you use a point-earning credit card to pay.

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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 6 Absolute Worst Ways to Cash In Your Travel Points

Holly Johnson — Wed, 27 Nov 2019 09:00:10 +0000

Travel credit cards make it easy to earn all kinds of rewards ranging from airline miles to hotel points and flexible travel credit. While the value of the points you earn will vary depending on how you redeem them, it's not unheard of to receive 2 cents per mile or point in value from airline miles or hotel points for certain, high-value redemptions.

On the flipside, you can also redeem your rewards for some pretty awful items, and even ones that let you get half a cent in value or less. That doesn't make these redemptions "wrong" per se, but it does mean you're effectively leaving money on the table when compared to other options.

If you have a travel credit card, a hotel rewards card, or a flexible travel credit card that lets you redeem points for airfare, hotels, and more, here are the redemption options you should avoid.

1. Merchandise

Many rewards currencies let you cash in your points for merchandise. With some rewards portals, for example, you can redeem points for purchases made through Amazon.com or at Apple stores.

While this isn't the worst option in the world, redeeming points for electronics, small household appliances, and other types of merchandise will typically get you one cent per point in value, and often a lot less.

Delta SkyMiles offers some of the worst merchandise redemptions you can find. For example, they want 141,880 miles for a 10.5-inch iPad Air with Wi-Fi. This same model currently costs only $649 at Apple.com, so you'd be getting significantly less than half a cent per point.

While it may seem tempting to use points for merchandise (free is free, right?), if you can bank enough points for something of higher value, it’ll be worth the wait.

2. Low value transfers to airlines

Most travel rewards enthusiasts know that transferring points to airlines can help you get more bang for your buck, but you have to remember this isn't always the case. High value airline transfers can be a good deal, but not all programs are created equal.

For example, it's common to transfer your points to the card issuer's airline partners and receive at least 2 cents per point in value when you go to redeem. That's because your points will typically transfer 1:1, with the exception of certain airlines.

But some programs offer paltry transfer ratios. For example, the IHG Rewards program lets you transfer points to airline programs like Air France/Flying Blue and Alaska Airlines, but you'll only get 2,000 airline miles for every 10,000 hotel points you transfer.

Takeaway: not all points transfers are equal. Sometimes it makes sense to lose points in the transfer just to be able to use the points, but when you’re sacrificing thousands of points just for the privilege of transferring, you’re better off finding a different travel partner to use the points for.

3. Trading airline miles for hotel stays

If you have a bunch of airline miles you can't seem to use, it might be tempting to cash them in for hotel stays through the airline's portal. This isn't the end of the world, and redeeming miles for hotels is better than letting them expire. Still, you won't get very much value in return if you choose this option.

Take the American AAdvantage program, for example. You can use miles to book free hotel stays, but redemption values are not great. For random dates I chose this year, they wanted 188,500 miles for a free stay at the Ritz-Carlton Bal Harbour in Miami at the same time a paid stay would set you back $1,185 per night. That means you would get a lot less than 1 cent per point in value, which is a significantly lower value than you'd receive if you cashed in your miles for flights.

Don’t be in so much of a hurry to book your entire trip on points when saving them for your next trip will give you much more value. (See also: How Travel Rewards Cards Can Help You Score Luxury Travel Perks)

4. Gift cards

Almost every rewards program lets you cash in your points or miles for gift cards, and this can be a decent value if you don't have the option to redeem for travel. However, you may receive less than one cent per mile in value if you cash in airline miles from an airline loyalty program for gift cards, and even flexible programs might only give you 1 cent in value per point with this option.

Cashing in travel rewards for gift cards should really only be your last resort if you find you absolutely cannot travel or your miles are about to expire.

5. Magazine subscriptions

Please don't ever cash in your miles for magazine subscriptions, even though several programs including Delta SkyMiles advertise this option. With Delta's "MagsforMiles" program, for example, you can get six to 228 issues of various magazines like People and The Wall Street Journal in exchange for your miles.

The value you'll get in return may not be that bad, but this is a poor way to use airline miles no matter what.

6. Using miles for cheap flights

Finally, don't forget to check the cash value of any flight you plan to book with miles before you pull the trigger on an award redemption. You should always strive to get at least one cent per point in value when you redeem airline miles for flights, and you should consider paying in cash if you aren't hitting that threshold. Some experts would even say you should push to get 1.5 cents per mile in value, or close to 2 cents per mile.

When flights are cheaper than normal, paying in cash or flexible travel credit makes more sense. (See also: 9 Hidden Expenses to Plan for When You Redeem Travel Rewards)

The bottom line

Just because you can redeem your travel rewards in a number of different ways doesn't mean you should. For the most part, you'll be a lot better off if you redeem travel rewards, airline miles, and hotel points for the redemptions they were intended for.

If you do want to redeem rewards for statement credits, gift cards, or merchandise, you should consider picking up a cash back credit card that offers these standard redemptions. Your rewards are yours and you can spend them however you want, but travel rewards are worth more when you use them for travel instead of stuff.

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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:

6 Steps to Avoiding Credit Card Debt Over the Holidays

Holly Johnson — Thu, 07 Nov 2019 08:00:07 +0000

Holiday debt may be incurred unintentionally, but the consequences can linger long after you put away the twinkly lights and stockings. A 2018 report from Magnify Money showed that consumers polled added an average of $1,230 in holiday credit card debt during that season. Not only did 64% of respondents agree their new holiday debt took them by surprise, but almost half of respondents (49%) said it would take them five months or longer to pay off remaining holiday bills.

If you're struggling with debt already, the last thing you need this year is a new pile of debt to contend with. Unfortunately, the constant pressure the holidays bring can leave you feeling like you're set up to fail from the start. Here are the best steps you can take now to avoid a holiday debt hangover.

1. Create a holiday shopping budget

First, you have to have an idea of how much you plan to spend on holiday gifts before you can decide how the funds will be used.

If you started a holiday savings account earlier this year, you may have no trouble logging in to see how much money you have set aside. If not, you'll need to take a close look at your checking and savings accounts to see how much "extra" money you'll have to spend this year.

As you assess your finances and excess cash, make sure to think through all your regular bills and expenses that need to be paid each month. Also, jot down any work-related year-end expenses you'll need to cover, such as holiday travel or holiday parties.

Then consider how many additional paydays you have until the holidays, as well as how those funds will need to be allocated.

2. Figure out how to earn extra money

If you find you don't have as much extra cash for the holidays as you hoped, you may want to get creative when it comes to finding more cash. This could mean picking up a few extra shifts at work, but it can also mean picking up some work on the side for a few weeks as the holidays approach.

If you're looking for easy ways to make money before the holidays this year, look for side hustles you can start without a big investment of time or cash. Try walking dogs, babysitting neighborhood kids, or selling stuff you own and don't use anymore, for example. (See also: How to Turn Your Expertise Into a Side Hustle)

If you have any points leftover on rewards credit cards, you can also see about cashing them in for gift cards or merchandise.

3. Make a holiday shopping list

Once you know how much money you'll have to spend this year — or at least have a general idea, you need to make a list of people to shop for. While kids and family members will obviously make this year's list, don't forget to add in gifts for an employer or your coworkers as well as any holiday gift exchanges you participate in.

Write down this list on paper, or paste it in a spreadsheet along with the amount of cash you have to spend this year. (See also: Take Control of Your Money With These 10 Free Spreadsheet Templates)

4. Make some essential cuts

Next, take a close look at your holiday shopping list to see who needs to be cut. You may find you have family members or friends you don't need to buy a gift for because you never see them. Or perhaps you have older kids in the family who no longer receive gifts from Santa.

If you participate in holiday gift exchanges and are tired of doing so, those are usually the easiest to cut out. Call the person who normally organizes the exchange each year and let them know you're on a tight budget. If they don't like it, that's too bad.

If you plan to cut family members you normally shop for from your list, it might be wise to let them know ahead of time — especially if they also buy gifts for you or your family. Most people will understand you're trying to spend less and avoid debt this year if you reach out and explain the situation.

Either way, decide who you want to shop for and remove everyone else from the list. Then you can decide how to divvy up your holiday budget for each person that's left. Maybe you have two children and allocate $150 to each of them while setting aside $20 per person for other people on your list. Whatever it is, put your budget and plan in writing so you can stick to it.

5. Shop sales to make your money stretch further

Having an idea of how much you plan to spend on family and friends is the best way to avoid going over your budget this holiday season. When you know for a fact you have $20 per person to spend on family members, you're in a better position to shop for gifts in that price range instead of overspending, or winging it as you go.

While Black Friday and Cyber Monday tend to bring excellent prices and sales on everything from electronics to clothing and home decor, don't forget to keep an eye out for low prices for anything you want to buy. The internet is your friend when it comes to searching for deals and comparing prices across multiple stores. You can even sign up for the Honey app, which finds the best coupon code and automatically applies it to your cart whenever you shop online.

6. Have a plan to avoid debt when you buy gifts

You may plan to use debit cards for online purchases and cash when you shop in stores this year, and that's perfectly okay. Just remember that, as a general rule, credit cards are considerably safer when it comes to online purchases due to the way the Fair Credit Reporting Act (FCBA) protects against fraudulent purchases.

If you decide to pay with credit in order to rack up cash back or qualify for consumer protections like extended warranties or purchase protection, make sure you only charge gifts you planned for in your holiday budget ahead of time. Also make sure you pay your credit card bill in full as soon as it arrives. As holiday shoppers from years past willingly admit, it's far too easy to let year-end bills linger.

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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:

All the Ways You Can Score More Points and Miles This Holiday Season

Holly Johnson — Fri, 01 Nov 2019 08:00:06 +0000

The National Retail Federation (NRF) reports that Americans will spend an estimated $727.9 billion to $730.7 billion on their holiday purchases in 2019. This estimate doesn't even include extra expenditures on gas, dining, or holiday travel.

This means that, like it or not, most of us are spending a hefty sum of cash on gifts for family and friends. And many of us are paying the high costs of holiday travel on top of that, whether it's for a road trip, a flight across the world, or a holiday soirée with extended family closer to home.

If you've set money aside all year long, this may not surprise you or throw your budget far off track. However, it would be a shame not to maximize the extra purchases you'll need to make anyway — especially since you can leverage holiday bills to earn more points and miles.

Use holiday spending to earn major points

By and large, the best way to earn more cash back or travel rewards is by using a rewards credit card for everything you buy. Most of the top rewards and travel credit cards give you one to three points for each dollar you spend, making it easy to rack up more and more points when you have big upcoming expenses, like the holidays.

However, you can boost your rewards quite a bit if you leverage holiday spending to earn a sign-up bonus on a new card. Many of the top cards offer 50,000 points or more if you can spend a few thousand dollars within a few months, and holiday spending could easily help you reach the required threshold.

Also note that you could use holiday travel bills to start racking up another type of rewards if you're ready to diversify. You could sign up for an airline credit card that doles out airline miles, for example, a hotel credit card, or a card that earns flexible travel credit.

Earn more points on holiday dining

Like it or not, holiday shopping and other events can easily cause families to dine out more than normal. If you want to capitalize on your extra meals out, you can always sign up for an airline dining program like Delta SkyMiles Dining or Southwest Rapid Rewards Dining.

These airline dining programs and others let you earn miles each time you dine at a participating restaurant and pay with a credit card connected to your account. Some also offer a "sign-up bonus" of sorts. With Delta SkyMiles Dining, for example, you can currently earn 3,000 bonus miles when you spend at least $30 at three participating restaurants and complete online reviews for each within 30 days.

Use shopping portals for all your holiday shopping

If you shop online, you'll absolutely want to figure out which portals can help you earn the most points and miles — or at least the type of points and miles you want to earn. Most major airlines have their own shopping portals, but hotel brands and bank-based loyalty programs have them too.

While you can earn airline miles or hotel points through shopping portals without having a co-branded credit card in most cases, you'll need to have the right credit card to earn bank-based rewards.

Regardless, shopping portals all work in the same way. To earn bonus points, all you have to do is log into your account and "click through" the portal before you shop online with a participating store. You’ll find common big name stores such as Kohl's, Macys, Home Depot, and Best Buy. And remember, the bonus points you earn by shopping in a portal are offered on top of rewards you earn by paying with a rewards credit card.

Take advantage of category bonuses

Remember to check if any of your rewards cards offer bonus categories that might line up nicely with your holiday shopping or travel plans. Credit cards with rotating categories generally have popular stores for their 4th quarter bonus categories.

Use portals when you book holiday travel

Finally, don't forget that you can earn extra points and miles when you book and pay for holiday travel for yourself and your family. You'll just have to get creative and do some research to figure out the best way to make the most of your plans.

Let's say you want to rack up more points in the Southwest Rapid Rewards program, for example. In this case, you'll probably be delighted to know that you can earn Southwest points if you log into your account and use their portal to book rental cars, vacation packages, hotels, and more. In fact, most airline programs let you earn miles when you use them to book rental cars, hotels, and other travel accommodations, so make sure to check with your favorite program.

Keep in mind that a handful of hotel booking websites let you earn airline miles for booking hotels. PointsHound and Rocketmiles are two of the most popular, both letting you earn thousands of miles per night in programs like Etihad Guest, Air France/Flying Blue, and Southwest Rapid Rewards.

And make sure you have a rewards card that will give you extra points when you fill up your gas tank, particularly if you're planning a holiday road trip. A handful of cash back credit cards offer bonus points for gas purchases each year with no annual fee, making them a no-brainer.

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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:

How Travel Rewards Cards Can Help You Score Luxury Travel Perks

Holly Johnson — Thu, 24 Oct 2019 08:00:06 +0000

When it comes to selecting a new credit card, some people are definitely all about the rewards. Travel credit cards can be especially lucrative, since you can earn airline miles for free flights, hotel points good for free stays all over the world, and flexible travel points you can use in more than one way.

For a lot of consumers, travel rewards help them see the world. They may not be able to travel for as long, or as far away from home, without the points and miles they earn using their rewards cards for regular expenses and bills.

In that sense, some people start to think of their rewards stash as an extension of their travel budget. And that's perfectly okay. The thing is, travel rewards cards can do a lot more than make travel free; they can make it more luxurious, more comfortable, and a lot more fun. Here are a few examples.

Upgrade to business class

Most of us who work diligently to save up for a vacation would never be able to afford business class tickets, and especially not for overseas travel. Fortunately, airline and travel rewards cards make it easy to earn big sign-up bonuses and ongoing rewards that can make paying for a business class seat a reality.

While business class flights can vary depending on the airline loyalty program, you can frequently find international business class tickets to destinations throughout Europe for just over 55,000 American AAdvantage miles one-way, for example. Air France/Flying Blue often offers similar pricing, and their Promo Awards often include special international deals.

Book hotels you couldn't normally afford

Hotel points can be used for regular hotels nearly anywhere in the world, but don't forget that with enough points, you can stay in over-the-top properties you could never afford to pay for with cash.

Imagine staying in a luxury resort in the Maldives, Bora Bora, or the Seychelles, and all on points. This is absolutely possible thanks to hotel loyalty programs and co-branded credit cards from Hilton Honors, World of Hyatt, IHG Rewards, and Marriott Bonvoy.

I've done this before, and the one downside you'll face is higher costs for food and fun. When I used World of Hyatt points to stay at the $900+ per night Park Hyatt Paris-Vendome, for example, drinks at the bar started at around $39 USD. My husband and I were too embarrassed to get up and walk out after we were already seated and perusing the menu, so we shared the cheapest drink we could buy — a glass of rosé. From that point on, we ordered drinks elsewhere. (See also: 5 Amazing Travel Destinations You Thought Were Unaffordable)

Splurge for trip excursions

Another rewards strategy to try is earning points for luxury splurges, tours, and day trips. This is something I frequently do with flexible travel credit I earn.

No matter where in the world you're traveling, you can use certain types of points to book fun stuff like snorkeling excursions, museum tours, foodie tours, and more. For an upcoming trip to Italy I have on the books, for example, I redeemed points for a cooking class in Florence, a winery tour and gourmet dinner in Tuscany, and private airport pickup in Milan. I also cashed in some rewards for a golf cart tour of ancient Rome — which is a must considering we're taking my aging parents with us, and they would not enjoy walking all over such a large, sprawling area to see the major sites.

Remember, travel rewards can be used for travel essentials like flights and hotels, but they can also be used for fun splurges you wouldn't want to pay for otherwise.

Speed through airport security

Many of the top travel rewards credit cards available today also offer a credit for TSA Precheck or Global Entry. Where TSA Precheck helps you speed through airport security without having to remove your shoes, belt, or laptop from your bag, Global Entry can help you re-enter the United States without having to stand in ridiculously long lines.

Both of these perks have saved me time, but especially Global Entry. Where most people wait at least 30 minutes (and sometimes hours) to re-enter the United States after traveling abroad, I rarely wait in line for more than five minutes.

Enjoy endless airport lounges

After you've skipped waiting in line thanks to Global Entry or TSA Precheck, you can head to the safe and quiet refuge of an airport lounge.

Many top travel credit cards offer airport lounge access as a cardholder perk. Some cards even let you gain entry into thousands of airport lounges around the world. All of these lounges have a selection of drinks and snacks, but some of the best have expansive buffets and free-flowing booze. It really depends on the airport.

Either way, you're better off in a lounge than you are sitting at the crowded, loud gate waiting for your flight. Since many top travel credit cards offer airport lounge access for free as a cardholder perk, you may as well take advantage while you can.

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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:

Why You Should Buy Travel Insurance — Even if Your Credit Card Offers It For Free

Holly Johnson — Thu, 10 Oct 2019 08:00:07 +0000

Travel is never cheap, and that's especially true if you're flying to a destination far from home. For that reason and plenty of others, savvy consumers tend to pay for travel insurance before they even head to the airport.

With a travel insurance plan, you can buy coverage that will reimburse if you if your trip is canceled or delayed for a covered reason beyond your control. You can even purchase "cancel for any reason" policies that let you back out of your trip any time you want.

Other inclusions travel insurance policies offer include medical coverage, baggage delay coverage, lost luggage insurance, travel accident insurance, and more.

Many consumers lean on the free travel insurance their credit cards provide — and that can sometimes make sense. After all, premier travel credit cards offer most of the coverage you get with a travel insurance policy for free. And if you can get insurance for free, why pay for it?

The reality is, there are a ton of reasons to buy travel insurance even if you get some coverage with a credit card. Here are a few of the most important details to consider as you plan your next trip.

Pay for sufficient medical coverage

Even though travel credit cards are pretty good about offering perks like trip cancellation/interruption insurance and baggage delay coverage, they're notoriously bad when it comes to offering medical coverage. That's a real problem if you're traveling to a destination where your own health insurance coverage won't work, such as any trip abroad.

With travel insurance, however, you can buy a policy that offers a much higher limits for medical expenses. It wouldn't take long to rack up huge medical bills if you wind up in the hospital due to illness or broken bones during your trip, but you can protect yourself with adequate travel insurance coverage that includes coverage for medical bills. (See also: How Emergency Medical Coverage Could Save Your Vacation)

You need medical evacuation coverage

In addition to medical coverage, you'll want to make sure you have adequate coverage for medical evacuation. This type of coverage will kick in if you become injured or ill and require emergency transportation to get back home. This could mean emergency evacuation in a plane or helicopter with a full medical team, so it's easy to imagine just how much you'd be stuck paying if you didn't have this type of coverage.

Most credit cards don't offer emergency evacuation coverage and ones that do may not offer high enough limits to help you sleep well at night. If you're worried about the high cost of medical evacuation if you were to become sick or injured overseas, you'll want to buy travel insurance that includes this benefit.

Credit card coverage may not even apply

Also note that some credit card insurance coverage may not even be applicable to you. Primary auto rental coverage, which is a popular credit card benefit, is a great example of coverage that doesn't always work.

Many credit card auto insurance policies only cover certain types of cars for certain amounts of time. For example, some cards only offer insurance for rental periods of 31 days or less. And some credit card auto insurance policies also limit the number of countries you can use your coverage in, meaning it may not work at all depending on where you travel to. (See also: 7 Times Travel Insurance Is Worth It)

You may want higher coverage limits

A final reason to purchase travel insurance is the fact that you get to select your coverage limits. This is unlike credit card coverage since it gives you whatever limits your credit card issuer decides.

For example, some cards offer free baggage insurance that can cover you if your baggage is lost by a common carrier. However, this benefit sometimes includes limits on the cost per person, per trip for carry-on baggage and checked bags, which may not be enough if you have brand-name luggage that would cost a lot more than that to replace.

The same is true with trip cancellation/interruption insurance, which is one of the most important valuable travel benefits you can buy. Travel credit cards that offer this perk tend to limit it to $10,000 per person and $20,000 per trip, which may not be enough if you splurged for a luxurious trip of a lifetime.

The bottom line

There are times when it makes a lot of sense to rely on your credit card's insurance coverage, but you have to make sure you have the coverage you need with high enough limits to count. In many cases, credit card travel insurance just isn't enough.

If you're on the fence about whether you have the coverage you need to protect yourself, you may want to buy a travel insurance policy just in case.

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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:

How to Stretch Your Airline Miles With Dynamic Award Pricing

Holly Johnson — Mon, 09 Sep 2019 08:00:07 +0000

The Delta SkyMiles program moved away from fixed award charts several years ago, and it appears most of the other major U.S. players are following suit. The United MileagePlus program announced it would move away from fixed awards earlier this year, for example, and so did Air France/Flying Blue in 2018. Some industry insiders are saying that the American AAdvantage program is next, although there's no formal announcement quite yet.

This isn't to say you can't get a ton of value for your miles with dynamic award pricing. You absolutely can if you're flexible with your travel dates and willing to consider different destinations. Unfortunately, the loss of fixed award charts means that, in many cases, you won't know how many miles you'll need for a specific award until you are ready to book.

This can be a big problem if you're trying to earn miles for a specific trip and can't really deviate from your plans — or if you're earning miles over an extremely long timeline. Without a fixed award chart, it's difficult to plan ahead or create a strategy to earn the miles you need.

How to beat dynamic award pricing

But what's a frequent flyer to do? Like it or not, dynamic award pricing is here to stay. All any of us can do is look for ways to get the most out of our airline miles in some way, shape, or form. And really, there are plenty of workarounds that can help you get extreme value from your miles — regardless of whether there's an award chart or not. Here are your best strategies to consider.

Earn a ton of airline miles

Whether your favorite airline offers fixed award charts or dynamic pricing, you'll always be better off if you have more miles to burn. That's why you should look for ways to earn more miles over time, via flying or through other means. Having more miles can be an insurance policy if you find that, at the last minute, a flight you wanted to book went up in miles overnight.

There are many ways to earn more airline miles, and most of them don't even require you to board an airplane. For example, you could:

Pick up an airline credit card that lets you earn miles for each dollar you spend.
Look for ways to cover more bills and regular expenses with your airline credit card.
Use airline shopping portals for all your online purchases.
Join airline dining clubs so you're rewarded with miles when you dine out at participating restaurants.

In addition to these strategies, there's one tried and true method that can easily yield a lot of airline miles in a hurry. Consider signing up for new travel credit cards with the goal of scoring a big sign-up bonus. Many co-branded cards will give you 50,000 miles and sometimes more if you can spend a few thousand dollars on your card within months of applying. Just make sure to pay your balance in full each month so you're never, ever paying interest on your purchases. (See also: How to Maximize Rewards Through Credit Card Shopping Portals)

Focus on award sales and deals

Next up, it always makes sense to look for ways to stretch your miles. Some airlines, like Southwest, have frequent and ongoing sales that can let you book flights for fewer miles than normal, for example. All you have to do is keep your eye out so you can strike while the iron is hot.

Other airlines like Delta Air Lines and Air France have their own "deals pages" that clue frequent flyers into their current list of specials. With Delta SkyMiles deals, for example, you can frequently find round-trip international flights from specific airports to faraway destinations for as little as 14,000 miles plus taxes and fees. The catch is, you have to be willing to book right away, because these deals rarely last more than a week.

Also, note that airfare "deals" are usually only from select airports and for a specific range of dates. With that in mind, you'll be in the best position to take advantage if you have some flexibility in your travel plans.

Rack up flexible travel points

Finally, there are so many reasons it can make sense to focus on flexible travel points. Not only can you book travel directly through a portal with flexible points, but these programs let you transfer points to airlines and hotels.

Having a huge stash of flexible points can help you ward off the negative effects of dynamic award pricing in a few ways. First, you can shop around among frequent flyer programs to see how many miles you'll need for the flight you want before you transfer them over. This lets you compare multiple airlines and go with the one charging the least number of miles.

Flexible currencies also let you book airfare direct with any airline, which can be a good last option if you're not finding the award availability you want. Some cards even offer a discount if you go this route.

The bottom line

Don't let dynamic award pricing ruin your travel dreams. There are plenty of ways to maximize your miles with or without an award chart, and you can always focus on earning more miles just in case.

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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:

How to Maximize Rewards Through Credit Card Shopping Portals

Holly Johnson — Tue, 30 Apr 2019 08:00:12 +0000

Rewards credit cards make it easy to earn points and miles for every dollar you spend. While some cards dole out points good for statement credits or gift cards, travel credit cards offer a different promise — the prospect of seeing the world at prices you can afford.

No matter what type of rewards you're after, however, there's one thing that's certain — the more points you rack up, the more freebies you'll score.

That's why credit card shopping portals are so important. They allow you to earn more points or miles for every dollar you spend, and with almost no effort on your part. (See also: Everything You Need to Know About Airline Dining Rewards Programs)

How credit card shopping portals work

What are credit card rewards shopping portals, exactly? For the most part, they're online hubs that let you earn rewards with participating stores.

Some credit card shopping portals are part of frequent flyer programs — American AAdvantage eShopping, Delta SkyMiles Shopping, and Southwest Rapid Rewards Shopping, for example. Others let you earn points or miles within specific credit card rewards programs.

No matter which portal you use, they work pretty much the same. Each portal requires you to log into your account any time you shop online, but earning points is as easy as "clicking through" the portal to shop at any participating store. You'll normally find popular retailers like Macy's, Home Depot, Walmart, Staples, and Best Buy.

Most stores that participate in shopping portals offer an extra one or two points or miles for each dollar you spend, and these miles will be automatically applied to your account shortly after an eligible purchase is made. (See also: How I've Scored Free Travel for 5 Years Straight)

How to earn more rewards through online shopping portals

There are additional details you should know if you hope to use shopping portals to their full potential. Here's exactly how you can get the most out of online shopping portals this year:

1. Double dip with a rewards credit card

The most important detail to keep in mind with shopping portals is that the points you earn are on top of rewards you earn with a rewards credit card. This means you can effectively "double dip," earning rewards not only through portal spending, but based on the card you pay with. Also, remember that you don't always have to pay for your purchase with a credit card that corresponds with the portal you're using.

2. Use the right rewards credit card

Of course, you should focus on using the right credit card if you hope to score more points and miles over time. Sometimes, the stars align and make it easy to earn a ton of points in a hurry.

For example, look for cards that might offer bonus categories that correspond with shopping portal purchases. If you have a cash back credit card that offers 5 percent back on up to $1,500 spent in categories that rotate each quarter, and the current bonus category is home improvement stores, it would make sense to use that credit card if you planned to click through a portal to earn bonus points at Home Depot, right?

The same is true whenever you have a credit card that offers more points for online purchases. Always assess your selection of credit cards to find the one that gives you the most points and miles for your purchase.

3. Keep your eye out for promotions

Also note that some credit card portals offer specific promotions from time to time, although this is mostly the case with airline shopping portals. United MileagePlus Shopping, American AAdvantage eShopping, and Alaska Mileage Plan Shopping frequently roll out promotions that let you earn additional points and miles if you meet a minimum spending requirement through their portals. While these deals can vary, they usually involve something like, "spend $200 in cumulative purchases through the portal and earn 500 bonus miles."

If you discover a promotion that coincides with a purchase that needs to be made, you can "triple dip" by earning regular portal rewards, promotional rewards, and points or miles with your rewards credit card.

4. Compare earnings on different portals

Before you click through an airline shopping portal, it's important to compare the various ones you use. While one might be offering one additional point for each dollar you spend, another might offer three points per $1 at the very same store.

Ideally, you use all the shopping portals that work with rewards programs you belong to. That way, you can take a few minutes to compare portal earnings before you shop.

5. Book "services" for even more rewards

Don't forget that shopping portals can work for other purchases you make online outside of regular shopping. You can also earn more points and miles booking specific services through portals, although the promotions change all the time.

Keep in mind these kind of bonus offers change frequently, so you must check in with the portals you use before you pay for any service or book anything online. You may never find bonus points for a service at a time you actually need it, but you'll never know unless you look.

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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:

5 Ways Credit Card Rewards Can Cost You Money

Holly Johnson — Thu, 25 Apr 2019 08:00:10 +0000

Rewards credit cards offer an alluring proposition — the promise of free points and miles for each dollar you spend. Many rewards cards even offer signup bonuses worth $500 or more right out of the gate, and that's in addition to the rewards you earn when you shop or pay bills.

The problem? Not everyone can or should pursue rewards, for several reasons. In some cases, trying to earn rewards can even wreck your finances, damage your credit score, or both.

Before you sign up for a cash back credit card or travel credit card, it's crucial to know the many ways pursuing points and miles can hurt you.

1. Going into debt by chasing rewards

A recent analysis of credit card data from the Federal Reserve from Experian revealed that only 45 percent of Americans with credit cards are paying their balances in full each month. This means the other 55 percent carry a balance at least part of the time, and it's easy to assume at least some of those people are pursuing rewards, right?

Because the average credit card now comes with an APR over 17 percent, this is a real problem. It makes almost no sense to try to earn 1 to 3 percent back while also paying over 17 percent in interest. The math just isn't there.

If you're charging purchases you can't afford to pay off each month just for the rewards, credit card rewards are not for you. You'll be much better off using cash or debit instead since those options won't leave you grappling with high-interest debt. (See also: The 5 Biggest Dangers of Credit Card Debt)

2. Overspending to earn a signup bonus

Most cash back and travel rewards credit cards offer initial welcome bonuses to entice you to sign up. Many times, these bonuses are worth $500 or more in points or miles, and all you are required to do is meet a minimum spending requirement (e.g. spend $3,000 within three months of opening the account to earn 50,000 bonus points).

While these offers are tempting, they can be problematic if you need to spend more than you normally would to meet the threshold. If your normal spending and bills don't add up to the minimum spending requirement within the allotted amount of time, what are you going to do?

Way too many people use minimum spending requirements as an excuse to splurge for new furniture or plan a vacation. Unfortunately, this means the rewards they earn won't leave them ahead financially. They may wind up with new stuff or a trip to look forward to, but they also wind up with less money than when they started. There's nothing rewarding about that. (See also: 5 Smart Ways to Meet a Rewards Card Minimum Spending Requirement)

3. Unplanned travel spending

Another pitfall of travel rewards points is the simple fact you often have to spend money to redeem them. Let's say you sign up for a hotel or travel credit card that offers a free night certificate and initial rush of bonus points and you decide to cash them in for a week in Hawaii. All of a sudden, you're splurging for pricey flights, a week-long car rental, and food and fun for seven days. Sure, your hotel may have been free, but what was the total cost? (See also: How Travel Rewards Credit Cards Really Work)

Also, redeeming travel rewards can come with costs you may not anticipate outside of regular travel expenses. Cashing in airline miles for international flights can require you to pay several hundred dollars in airline taxes and fees, and some airlines tack on hundreds in fuel surcharges to boot.

Higher end hotels you redeem points with may also have unavoidable fees for valet parking or resort privileges. These expenses can and do add up over time, so don't forget to factor them in.

4. Too many annual fees

And what about the annual fees many of the top rewards and travel credit cards charge? Top travel credit cards charge annual fees of $450 or more, which is a lot of money no matter how you cut it.

While annual fees can be worth it if you earn a lot of rewards and use travel benefits and perks regularly, they still add up. Before you sign up for too many credit cards with annual fees, make sure you have a plan to get more value than you're paying for. If you can't do that, then it's probably not worth it.

5. Damage to your credit score

Don't forget that the way you use credit cards can negatively impact your credit score. For example, opening new credit cards means having another hard inquiry on your credit report, which could cause your score to temporarily drop.

Since your payment history makes up 35 percent of your FICO score, falling behind on your credit card bills can also create a big problem. With your credit utilization — how much you owe in relation to your credit limits — making up another 30 percent of your FICO score, carrying large balances can hurt your score as well.

The bottom line

Credit cards that dole out points and miles can help you score free travel, earn cash back, or get other freebies, but that doesn't mean they're destined to leave you better off. Ultimately, the way you use your credit cards will determine whether they're a net positive for your finances.

Before you sign up for a rewards credit card, it can help to have a basic game plan in place. Figure out how you can earn a big signup bonus without making unplanned purchases, and make sure you have the discipline to pay your balance in full each month. From there, make sure you're only paying annual fees on cards that are worth it.

If that sounds like too much work, then it probably is. Cut your losses and stick with debit instead.

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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:

Everything You Need to Know About Airline Dining Rewards Programs

Holly Johnson — Mon, 15 Apr 2019 08:00:09 +0000

There are many ways to earn a lot of airline miles in a hurry, but the fastest way is signing up for a co-branded airline or travel credit card. Doing so allows you to earn miles on your regular spending, plus you can usually earn a signup bonus worth a few free flights. Other ways to earn miles include: signing up for frequent flyer programs, consistently flying with your favorite airline, using airline and travel rewards shopping portals, and keeping your eye out for special promotions.

Amazingly though, there's one more way to earn miles — and it may just be the easiest. With airline dining rewards programs, you can earn miles for each dollar you spend when you dine at your favorite restaurants.

How do airline dining rewards programs work?

The concept of earning miles with dining programs is simple, although the rules that govern each independent dining rewards program can vary. Popular dining rewards programs include Southwest Rapid Rewards Dining, Delta SkyMiles Dining, United MileagePlus Dining, and American Airlines Dining, although other airlines run programs as well.

Each airline dining program works with participating restaurants nationwide, making it easy to find establishments in your area or when you travel. Once you sign up for a dining rewards account, all that's required is using a credit or debit card tied to your account when you dine at a participating restaurant. Once you do, the miles you earn will be credited to your account — usually in less than 60 days.

How to earn the most miles

The number of miles you can earn depends on the program you decide to join, as well as other factors, but you should earn a minimum of one mile for each dollar you spend at a participating restaurant, and maybe more.

Earn more miles with elite dining status

Some dining rewards programs let you earn more miles each time you dine out once you reach a certain threshold within the program. With Delta SkyMiles Dining, for example, you can become a "VIP Member" after dining 11 times or more within the program by the end of the year. With a VIP membership, you'll earn five miles per dollar you spend at participating restaurants within the program.

Earn more miles for opting into emails

Southwest Rapid Rewards dining lets you earn three miles per $1 spent (as opposed to one mile per $2 spent) for dining members that agree to receive Rapid Rewards Dining emails. You can also earn more miles by opting into emails with the American AAdvantage Dining program or United MileagePlus Dining program and becoming a Select or VIP member.

Some dining programs offer a signup bonus

Airline dining programs incentivize consumers to sign up by offering initial signup bonuses worth a few thousand miles. With Delta SkyMiles Dining, for example, you'll earn 3,000 bonus miles for signing up and spending at least $30 (including tax and tip) at participating restaurants within the first 30 days of membership. American AAdvantage, United MileagePlus, and Southwest Rapid Rewards Dining offer similar bonuses.

Double dip with an airline or travel credit card

The best part about airline dining programs is that you can earn even more rewards by using a travel or airline credit card when you pay your restaurant bill. Remember that dining rewards are doled out on top of any points or miles you earn with a rewards credit card.

Connect multiple cards to each account

Most airline dining programs let you connect multiple credit and debit cards to your account, so make sure to connect all cards you use frequently. By connecting all credit cards you're likely to use, you'll never miss out on miles when you dine out.

You can usually pay with any rewards card you want

With most dining programs, you can use any credit card you want to pay provided it's connected to your account. This means you don't have to use an American AAdvantage card when you're dining within American AAdvantage dining, for example. Instead, you can use a rewards card that gives you more miles or cash back for dining out.

Join more than one program — or all the programs

If you earn miles in more than one frequent flyer program, there's no reason you shouldn't join every dining rewards program available to you. Free miles are on the table — including signup bonuses — so maximize all of them to earn as much free travel as you can. (See also: How I've Scored Free Travel for 5 Years Straight)

If you think you could benefit from joining a dining rewards program for your favorite airline, you're probably right. Joining these programs is free and you could benefit more than you think if your favorite restaurants participate in your area.

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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: