The current ‘Fios Free Internet’ promotion needs close examination. This is because offers of something for free may not beat the competition’s price without something for free. Such is the case with the current offer from Fios, the internet provider that is Optimum’s competition. Below is a flyer about this promotion.
The flyer describing the current promotion from ‘Fios for Free’ Home Internet service.
HOW TO COMPARE THE FIOS FREE INTERNET PROGRAM AND THE OPTIMUM INTERNET SERVICE
Contact information for the free Fios Home Internet with Verizon’s Fios Forward discount
Making a comparison might seem confusing and overwhelming. It is important to do the following:
a. learn what the program offers at verizon.com/fiosforward
find out whether or not you qualify for the Fios program
b. know what program you participate in and exactly what you have as well as what you are paying now at Optimum.net
c. find out if you qualify and if the offer saves you money by contacting the person whose name is on the flyer (bottom left side of flyer).
STEP ONE
Find out if you qualify for the FCC’s Affordable Connectivity Program. The flyer specifies how to do this in the bottom left hand corner.
Verizon fios internet service and TV provider
STEP TWO
Continue only if you qualify. We qualified. So the next thing to do was to ascertain what program we had and how much we pay. We have the Optimum triple play program which is a discounted package. It normally costs $122/month. In addition, we have another discount program of $30 more off each month. So we pay $92/month.
STEP THREE
As an alternative, if someone is not signed up for anything or already signed up with Fios for all their services, the free internet offer might very well be an advantage. But, as Optimum subscribers, it would not be for us. If we dropped the triple play program, the cost for TV and telephone service would equal about what we are already paying for everything, $92/month.
Optimum.net/triple play monthly bill
Personally, we would not benefit from the Verizon Fios Free Internet Program because we already have the Internet with the Optimum triple play package. But if we did not have triple play or the additional $30/month discount, the Fios program might benefit us.
IN CONCLUSION
There is a lot to consider here because a ‘something for nothing’ offer is not as simple as it appears to be. Instead, it is a something for nothing offer with several ‘ifs’ involved. So be sure to do your due diligence. That way you will know for certain that you are getting the best Internet deal, free offer or not.
‘Stop and Proceed Slowly’ Sign by ComplianceSigns.com
INTRODUCTION
My Financial Profile
A recent promotional bonus credit card program has allowed me to be very resourceful with credit cards. Even though I live on a fixed monthly stipend that is typical of a retired low income senior, credit card programs have been a benefit for me. This is because of the tools I have learned and benefited from.
I have written at length about the potential benefits from the responsible use of credit cards. Below are the four Ebook I have written about various credit card benefit offers. These minimally priced Ebooks are available on Amazon.
Financial Ebooks I have written that are available on Amazon
A New Credit Card Promotional Bonus Program to Explore
Several months ago, I was able to apply for a new Promotional Bonus Program Credit Card. I applied and was immediately accepted. Much to my surprise, I had the opportunity to apply for several more of them. I was accepted by those as well.
Without blinking, I went from qualifying for one, then four, and even as many as six of these credit cards. Even then, I kept finding more of these offers. Since I did not want to miss out on a single one of them, I kept applying and being accepted.
Capital One Promotional Bonus Credit Card Offer
RULES OF THE PROGRAM
How To Play
At first, I thought the rules were simple. The Promotional Bonus Credit Card program required only that I charge a given amount of purchases ($500 to $1,000) within a three month period of time. As the bonus, I could receive the equivalent of two hundred dollars per card. Since I always charged many of my purchases, I assumed this was going to be an easy win.
Wells Fargo Promotional Bonus Credit Card Offer
VISITING LAS VEGAS
A Grand Total of Ten Cards
By the time I finally got a denial, I was the recipient of ten promotional bonus credit cards. Wow, I was really feeling exuberant. What I didn’t realize was, like a gambler, feeling exuberant would not last. In other words, I was becoming addicted to applying for and acquiring more of these promotional bonus credit cards.
Because I couldn’t stop, things really got out of hand. With each new card, the game I was playing became increasingly complicated as well as much less manageable. It became harder to keep track of all the rules. I kept making charts of when and how charged were due. Even with this extra effort, I still went from feeling high to feeling totally overwhelmed.
Roulette Table of a Casino Stock photo courtesy of istockphoto.com
PROS AND CONS OF THE PROMOTIONAL BONUS PROGRAM
Not As Easy As It Appeared to Be
Given my history of a perfect payment record, I thought this program would work like a charm for me. I was confident that it would be an easy win. But so many complications plagued me along the way. At times, I have questioned my investment savvy even my sanity. I’ve sworn I would never get in over my head like this again.
CREDIT CARD REWARDS, STATEMENT CREDITS, OR GAMBLING
A Bit of Each
Depending on how intensely one dives into this game determines which level of risk one plays this promotional bonus credit card offer. The more one is tempted to use this program as a gambling gambit, the more one is likely to risk.
CONFUSION AND CHAOS SET IN
I Had Definitely Overdosed on This Program
At times I felt very confused, even sleep deprived by the amount of time some of the transactions required. Numerous ‘unk unks’ (unknown unknowns) have taken place. In other words, I had nothing to do with certain things that happened to complicate the process.
Beware the dangers of this credit card program. Like the saying goes, ‘if it seems too good to be true, it probably is’. Sign from CreativeMarket.comBank of America Promotional Bonus Credit Card Offer
A PROMOTIONAL BONUS IS NOT NECESSARILY A CASH REWARD
How Do You Know Which Is which?
In total, I theoretically could net many cash rewards or statement credits. Forms of redemption were unclear. For example, the funds may be held over towards the payment of the next month’s bill. Another scenario was ‘the check is in the mail.’ We all know ‘the check is in the mail’ scenario. In that case, it can take up to several monthly cycles.
Gift Cards
Let’s not forget the gift card option. But is that a gift to me? I didn’t know who it would go to. In conclusion, none of these alternate options was optimal. Given my preference, I like my promotional bonus to be deposited right into my checking account as a cash reward. But that is not always possible. In fact, if the only option is a statement credit, the promotional bonus tool is a guarantee to the credit card company that I will continue to charge in the future to make use of their bonus.
‘Danger Go Slow’ sign from SafetySupplyWarehouse.com
POTENTIAL COMPLICATIONS
A Credit Card Gets Hacked
For example, while I was accumulating bonuses, one of these new cards got hacked. I had to replace it in the middle of my promotional bonus project. In addition, I tried to cancel items that were not refunded but turned into ‘honey points’. Other charges were also counted twice. Even though I did not cause these issues, their occuring caused me to have a severe lack of focus. It became very difficult for me to concentrate on the credit card bonus offers.
The Citi Custom Cash Promotional Bonus Card Offer
MAKE ONE CHANGE AT A TIME
New Tools Can Be Very Tempting To Use Simultaneously
In addition to signing up for these credit card bonus offers, I signed up for autopay. Making two major program changes at one time was a mistake. As a result, some bills got paid twice. It was becoming impossible to keep track of what I was doing.
BEWARE OF TRAVELING IN UNEXPLORED TERRITORY
Use a Reliable Map
Ultimately I realized what was wrong. It was that I had embarked on a new system that was going outside the box of familiar navigation. This new program was twice as hard to maneuver since I was exploring the unknown. Therefore I strongly advise readers to make one change at a time when adding a new element to an existing template.
Bank of America Promotional Bonus Card
NOT QUITE THE CONCLUSION
Is This Calculus or Physics? It Can’t Just Be Bookkeeping
Using credit cards responsibly and profitably is not a strictly arithmetic endeavor. As I discovered with each new profit making tool, their value is equaled by their complexity. Although the original templates are the foundation of this program, with each new component the program goes further outside the original box.
PROMOTIONAL BONUS BAIT
Something Smells Fishy
Along these lines, credit card companies continue to make themselves increasingly tempting to individuals who think they can stay on top of the latest innovations. This requires that individuals stay more than sharp and continue to search for new and existing credit cards. These can improve as investment tools, not just a means of delaying payments on purchases. But they become very challenging to use.
ANOTHER WARNING
This Is Not Bookkeeping 101
As time has gone by, this project has become painfully complicated. What initially seemed like a straightforward giveaway has become a torturous maze of numbers and dates. I participated to see how far I could go outside the box. In other words, I wanted to see how much I could challenge myself. It has been several months with a total of ten new cards. But I am not yet finished with this program. I can hardly wait to be done with it.
This chart illustrates how my credit score was affected by the promotional bonus program. It was 820 before I started and went down to 800 at its lowest. It is rising again since I have almost completed the program.
MY FINANCIAL PROFILE GETS HIT
Effect on My Credit Score
My credit score dropped during this project. The reason is that each credit card application was a ‘hard’ check to my score. But since I have met each charge challenge in a timely manner, my score is rising again and is recovering it’s 800+ scores. Credit score chart courtesy of American Express.
But there is one catch to building an emergency fund with this program. Money has to go out before it can come in. For a while it has seemed that I have lost rather than gained financially.
Warning sign from readers-digest-ca
CASH REWARDS OR CREDIT STATEMENTS
Read the Fine Print to Find Out
Besides the delay, the rewards are often available as statement credits rather than cash rewards. Since my tendency and necessity has been to buy more things, this project has not been a great source of emergency savings. Saving up for them was why I participated originally. Instead, it has also required constant vigilance with each card. Besides that, the amount that I have had to charge is requiring the use of partial payments to stay flush each month. Now I also have to keep track of the deadline on partial payments.
This is a very tricky game requiring numerous greater than rudimentary skills. It feels like the Olympic decathlon competition. In fact, I am now having to use the partial-pay 0% APR feature that comes with these cards. Therefore I am learning something else that is new. But I have been pulled deeper into this maze. I never paid attention to APR percentages in the past, nor did I need to. But now, how many months will I need to use this new tool keeping to the 0%APR?
A FINAL WARNING
Do What I Say, Not What I Did
I do not recommend going to the extremes I have. It has nearly driven me crazy. I may have even permanently burnt out some numerical brain cells besides spending a huge amount of time on this experiment. Has it been worth it?
Sometimes, the way I learn things is by going to extremes. It involves extending the limits of my existing skills to see what new ones I want to gain. Taking little steps would be more prudent. In fact, I suggest taking small, prudent steps for anyone who wants to sign on to this or any cash bonus program.
A set of directional signs from Monexsafetyservices.com
A FINAL WORD ABOUT THIS CREDIT CARD BENEFIT OFFERS PROGRAM
On the Plus Side
One: Paying car insurance in four instead of six payments saving money on installments. Two: Paying home contents insurance in full annually saving about $50 dollars. Three: Paying car registration for the next two years, early, without a pinch, and in full. Four: Being able to afford a healthy diet and avoid illness. Five: Purchasing pleasant necessities rather than feeling very deprived. Six: Occasionally buying something new, even secondhand, but not completely pantry hand-me-downs.
CONCLUSION
The Tip of the Iceberg
As you can see from this blog post, there are many credit card benefit offers. But they have complications that may outweigh their worth. These benefits are like an iceberg. What they appear to offer is actually only the tip of the iceberg of what they can cost.
Were you able to navigate this obstacle course? I’d love to hear your experience. Please share with the rest of us in the comments area. I will report in with my final results as soon as I am done. Right now, I’ve got two cards to go. One is to make a claim. The other is to charge $500 and then make my claim.
Bondi Beach Australia, Bondi Icebergs, Courtesy of Marley Clovelly
The CVS money-saving system is my most often used and favorite 21st-century coupon cutting and digital coupon system with its variety of traditional as well as digital money-saving tools. As a matter of fact, there are times when I make substantial purchases without having to pay hardly anything. Believe it or not, one particular trip to CVS cost me around $1 for $80 worth of merchandise.
I have been within the top 3-7% of savers in New York for several years
HOW THE CVS COUPON MONEY SAVING SYSTEM WORKS
So far this is the most comprehensive 21st Century Coupon Cutting tool I have found. It works for both online and in-store purchases. Actually, I find it to be the best program around. Therefore, I buy as much as of can of household and personal needs in addition to over the counter nutritional supplements and non-prescription drugs. Here’s how the whole system works:
21st Century CVS and other coupon cutting tags on a keychain
1. I receive an email indicating a saving of between 20% and 40% for one or all my purchases with an expiration date. From the email, I am able to send the offer to the well-worn discount card I keep on my key chain. (See photo below).
CVS 40% off email is #1
2. A postcard with a 20-40% saving is mailed to me. I provide the mailer to the cashier when I check out.
A 25% coupon mailer which I present to the cashier at check out
3.Inside the mailer are additional, individual coupons that are also presentable to the cashier at checkout.
The inside of themailer contains additional, specific coupons
4. When I go to any CVS store, I go to the machine that prints out all the savings currently available to me, in addition, to the ones stored on my plastic coupon key chain tag. See the photo below.
The CVS coupon cutting system store machine printed coupons is #3
5. At check out, I present these printed coupons to the cashier.
6.Next I swipe my tag to register with the cashier all the discounts on my card.
7. Then I swipe my OTC or over-the-counter card to see what savings I can also get up to $100/month for certain non-prescription items. The OTC card is a benefit of my health insurance plan. This plastic discount card is shown below.
My OTC card which can cover up to $100 in non-prescription items is #6.
8. There is also the 10/30 program which refunds $10 for every $30 spent on this store visit.
9. In addition, there is the new CVS ‘CarePass’ program that costs $5/month then returns $10/month. It is charged at the beginning of the month and is paid out on the 18th of each month.
CONCLUSION
As you can see, the CVS money-saving system is a mix of both traditional coupon cutting and digital coupons. Even though it can become confusing, it is clearly worth the saving we get.
COMMENT
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Twenty First Century coupon cutting might become the next money-saving system we need to utilize for financial survival. In other words, it could become Phase Two of the financial mountain climbing challenge we face. It would start in 2020. The reason for calling this Phase Two is that we may require another money-saving financial survival system in addition to cash reward credit cards.
This would be to offset the 2020 Medicare-Medicaid crisis that we are faced with right now. This additional financial survival system would be an addition to the cash rewards credit card financial survival system I originally devised and have been using for the last 10 years, from 2009-2019.
Climbing the mountain of financial survival again. Photo from goodfon.com
PART ONE: TOOLS FOR HELP WITH FINANCIAL CHALLENGES 2009 – 2019
To return to 2009 for a moment, our first major financial mountain climbing challenge was when we went ‘From Middle Class to One Day From Homeless’. We had to make substantial compromises to our lifestyle just to survive indoors.
There are actually four Amazon Kindle Ebooks that I wrote about that journey. Fortunately, I had discovered the benefits of the responsible use of cash reward credit cards. They can be invaluable in accumulating welcome bonuses as well as cash rewards. These are the Ebooks I wrote over this ten year period.
Our Story from 2009-2019 as told in Four Kindle Ebooks with the evolution of the Cash Rewards Credit Card Financial Survival System
PART TWO: TOOLS FOR HELP WITH FINANCIAL CUTBACKS 2020 GOING FORWARD
Now we may be facing an additional tightening of our belts. What this means is that another system besides Cash Rewards will need to come into play as part of our financial survival tools.
I am constantly being introduced to new money-saving apps. In fact, most of them do not require manual coupon cutting. Instead, the saving is sent electronically from one devise location to another devise location which can then register at purchase checkout to apply the savings.
To start, there are plastic tags with individual identity name and graphics on one side. Then there is a bar card on the back to identify each store. Savings are electronically registered on a store’s tag. Finally, that information is transferred to the cash register at purchase.
21st Century coupon cutting tags with retailer image on one side and electronically activated barcode on the other
CONCLUSION
21st Century coupon cutting is a transformation of the previous century system. In fact, the new system is digital coupons. Therefore, going forward in this series, look more and more for keywords that refer to digital coupons rather than coupon cutting. But don’t throw your scissors or coupon organizer quite yet. Instead, prepare to use them less and less. Happy savings, 21st-century style!
HOW TO MAKE A COMMENT
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From Credit Karma, How Many Credit Cards Does the Average American Have?
WHAT IS CREDIT CARD CRITICAL MASS?
Credit card critical mass refers to the appropriate number and kinds of credit cards to have. How does one know what kinds to have? How many to have? When enough is enough? Then, when is how many too much, therefore, when is it time to stop collecting more or even cut back? What is the best way to cut back? This blog post will attempt to answer these questions. But keep in mind that the numbers and types of cards will vary depending upon the person, their lifestyle and needs.
COLLECTING CREDIT CARDS
When I started collected credit cards, I went through some very active phases. The reason for these was manifold:
a. building up my credit
b. getting promotional welcome bonuses
c. collecting cash rewards
d. establishing the best cash rewards rates
e. traveling bonuses
A straight flush similarity to an ideal collection of cash reward cards. Image from Dreamline.
THE CASH REWARDS SWEET SPOT
At one point in my credit card collecting, I realized that I had achieved a cash rewards credit card sweet spot. I compare this to a straight flush in the card game of poker. The blog post, A Two-Pronged Credit Card Rating System (Part 2 – June 2019) goes into detail about this. The straight cash rewards flush looks like this collection of credit cards: 6% for US supermarkets
5% for purchases at many cobranded store cards
4% for dining out
3% for gas
2% for health care services and items
1.5% for all purchases
REACHING CRITICAL MASS
In the collecting cards phase, I saw only the small picture. At the time I applied for a card, I found it a necessity. After a few years, I accomplished all of my above goals and then some. Not only did I reach my credit card critical mass but in retrospect, I surpassed it. How did I know that I had done this? That was easy to answer. I knew because the number of cards I had to deal with had become unmanageable.
Store Credit Cards image from rewardscreditcards.org
SURPASSING CRITICAL MASS
As the owner of many credit cards, I was forced to see the big picture and began to ask myself these questions:
a. how many cards did I really need?
b. what categories did I spend the most in?
c. with that in mind, which cards did I use most often?
d. which cards was I leaving dormant?
e. why was I having trouble keeping track of my card purchases when it came time to do my monthly accounting?
f. how could I make things more manageable?
g. when was enough, enough?
h. how could I safely cut back on the number of cards I had?
THE CREDIT CARD CRITICAL MASS FORMULA
Fortunately I found a formula I could use to determine about how many cards to own, which ones to keep and those to phase out since I had surpassed critical mass. These are the factors I now consider in which cards to use:
a. the oldest aged accounts
b. those with the best credit line and lowest credit utilization ratio
c. the ones with optimal returns in my top spending categories
d. those that give me the maximum value for use with my favorite merchants, stores, airlines. or hotels
Credit Card Cash Reward Categories are similar to traffic signals, go, caution, turn at your own risk. This image is from Pixabay.
PHASE OUT RATHER THAN CLOSE CARDS
It is best not to close cards. Instead, let them phase out by letting them be dormant. Make sure that any card that has fees stays open only if it is useful by the above standards. Otherwise, close it to avoid any future fees if it is going to be dormant.
IN CONCLUSION
It is beneficial to have both network and co-branded cards when they have value. But it is wisest not to gather more cards than are really necessary. It can become a real nuisance to have too many cards to care for. On the other hand, it is great to have just enough to be helpful and profitable.
The phone rings. An online company representative is calling to offer me a free 7-day subscription to a credit score and computer fraud prevention service. All that the representative needs to know is my credit card number to cover a $1 processing fee. The red blinking light goes off in front of my eyes as a siren screams in my head. This has to be a scam.
Here is an email from my credit card issuer alerting me to possible credit card fraud
More clever and devious minds than mine have figured out how to rig this game. The only thing I thought I knew was how to stop it before it starts. I did not give my credit card number. In spite of this, a charge showed up on one of my credit cards for $1. So I called the credit card company to report this mistake. They reversed the charge. But the next thing I knew, I was receiving a bill for $29.94/month as my regular subscription fee. How did this happen? I did not authorize it. In fact, my credit card company contacted me because they suspected fraud. My credit card was canceled and a card with a new number was sent to me.
Deja Vu All Over Again
But it happened again with the newly issued card. How did they get my card number? I was baffled and wanted a more proactive solution. So this time, the representative from the credit card issuer said that I needed to call the company directly to cancel my subscription. That was just what I did. Then I called back the credit card folks to report my action. At this point, I was told that I had done everything I needed to. Therefore I had no liability for this entire fiasco.
The Free 7-Day Subscription Is A Scam
There is a term used in poker called a ‘tell’. It is something that gives away a bluffer’s hand. The tell in this, as well as most internet scams, is the request for a credit card number. ‘Oh,’ they say, ‘it is just to cover a processing fee’. The next thing you know a substantial charge shows up on your card and it is a regular monthly subscription. Talk about adding insult to injury.
Being Prepared
So my response to their ‘tell’ is to NOT provide a credit card number for a $1 processing fee for a 7-day trial subscription of their services. Remember, once a company has your card number, they can go to town. Then you have to find a way to stop them in their tracks in order to avoid any additional charges to this free trial. The story may not be over. The scammers may give their scheme another try. But if they do both my credit card company and I will be ready to stop them in their tracks.
A copy of the cancellation letter that was emailed to me from the merchant
Afterword
Even after I was assured by phone and email of the cancellation of my $29.94/month subscription fee, something still bothered me. So I called the merchant back. This is what I learned. I suggest you pay close attention. First of all, even if I report fraud to my credit card company resulting in my getting a new credit card, the merchant can charge that new credit card number for the subscription. So the only way to stop it is to call the merchant itself to cancel.
In addition, after a barrage of questions by me to the customer service person, I was still not satisfied by his responses that I was the person who signed up for their 7-day free trial subscription which resulted in their $29.94/mo fee. The bottom line is that I am zero dollars out of pocket. But I was sufficiently inconvenienced. In addition, I have less trust in online security and more concern about how easy it is to be taken by less than scrupulous companies and individuals.
There are 5 Credit Card Types, image from Mortgagefit.comAccording to Mortgagefit.com administrator’s blog, there are 5 credit card types. The image to the left illustrates them. They include:
5. co-branded credit
4. store credit
3. charge credit
2. general credit
1. secured credit
In addition, the following describes what they are. This is also according to their blog administrator. Keep in mind that the blog post is from 2011.
There are five types of credit cards according to Mortgagefit.com
5 TYPES OF CREDIT CARDS REDUCED TO THEIR ESSENTIAL 2 PLUS
In my opinion, the administrator’s blog post uses generic definitions. By today’s standards, they are not technical or simple. In addition, the post is dated. As a result, it is not exactly accurate by today’s standards. Therefore, I have attempted to clarify the types of credit cards that exist. In my blog post series written about credit cards, these are the types of credit cards:
1. network
2. co-branded
3. secured and unsecured
In my blog post, Different Types of Credit Cards And Their Best Uses, Part One – July 2019, network and co-branded are explained. Part Two in that series reviews network and co-branded cards as well as explores secure versus unsecured cards. To compare accurately, I want to explain each type individually, mine versus the Mortgagefit.com definitions.
#5.Co-branded
There is some agreement of terms between mine and Mortgagefit.com. #5.co-branded: #Co-branded credit cards: These cards are the same as general credit cards. But these cards have a “special relationship” with a particular organization or retailer. So, if you purchase goods/items from those particular organization or retailers, then you will be able to extra rewards and benefits. However, these cards can be used in other stores as well. A good example of such a card is Amazon.com credit card.”
#1.Secured Cards
“People who have a bad credit history or no credit history at all can take help of these secured cards. These secured cards are similar to that of general credit cards. However, in case of these cards, you must make a fully refundable deposit, either by cash or by sending a check. This deposited amount is considered as your credit line. As a result of this deposit, all the secured cards offer guaranteed approval.” This standard seems to work about the same today. So this card’s name and description are still solid. Here’s one card in both blog post comparisons.
But I find #4.store credit, #3.charge credit, and #2.general credit somewhat confusing. Therefore, I wish to simplify them to be more accurate by today’s standards. Otherwise, they should be eliminated.
#4.store credit, #3.charge credit, and #2.general credit
“General Credit Cards: A very common type of credit card is the general credit cards. Such credit cards don’t require any kind of security deposit and can be used in most stores/shopping malls or to make any kind of purchases.” This seems to describe both network and co-branded cards.
#Charge Cards: These cards are very similar to general credit cards. However, the major difference lies in that fact that unlike general credit cards, you will have to pay your total balance in full every month.” What does this remind you of by today’s standards? The only one, in my opinion, is what is called a store credit card. I find them to be minor players in the credit card count either way. I still find them confusing.
#Store Cards: These cards are similar to that of credit cards. However, these cards can only be used to buy goods at the store that has given you the card. Macy’s Credit Card is a good example of a store card.” These sound like store cards that are not backed by any banks. Therefore, I would combine charge cards and store cards into one kind of credit card. That reduces the number to four kinds of kinds from 5. In addition, I am still confused by charge cards today. I have about five of them. The only reason I got them is for the 5% discount when I charge merchandise in their stores.
CONCLUSION: A FINAL TALLY
What then is really the number of types of credit cards? Let’s look at each category.
1. Secured cards are definitely relevant today especially with people starting out to establish credit. But since they are offered by large banks, and can be upgraded, I do not give them their own category. Total of 0.
2. Somewhere in-store card, charge card, and a general credit card are what we call, the network and co-branding cards. They are unsecured cards and do not need their own category. Total of 2.
3. Charge cards are fazing out overshadowed by the above cards. In my opinion, they rate a total of 0.
WHAT DO YOU THINK? Please go to the comment box and share your thoughts with the world
COMMENTS AND QUESTIONS
This is only a SAMPLE of the comment box that can be found and filled in at the bottom of this page as well as each blog post page.
Readers are welcome to comment on this blog post by scrolling down to the VERY bottom of the page. That is where you will find the comment form where the words ‘start the discussion’ are. Questions are also welcome. But it is best to contact me for Q&A on The Credit Card Maven Facebook Page.
In Part Two, I explore two areas of focus in Credit Card differences. They are network versus co-branded credit cards in addition to secured versus unsecured credit cards.
THE FIRST FOCUS AREA OF CREDIT CARD DIFFERENCES: NETWORK VERSUS CO-BRANDED CARDS
I will answer Credit Card differences in Part Two of Different Types of CreditCards and Their Best Uses. The first question I will answer is, ‘Why get network cards’? Then, ‘Why get store co-branded cards’? And finally, ‘What is the difference’?
NETWORK CREDIT CARDS
Referring back to Part One, it was explained that there are four types of major network credit cards, AMERICAN EXPRESS, DISCOVER, VISA, and MASTERCARD. Purchases can be charged just about anywhere with these cards. But there are no interest-free payment plans available.
There are four major credit card types or networks: American Express, Discover Cards, VISA, and MasterCard. Image from Cardrates.com
COBRANDED CREDIT CARDS
In contrast, co-branded credit cards offer interest-free payment plans. This is what makes them an essential part of credit card differences. The banks that these cards cobrand with are rarely major banks. That is because their primary purpose is cobranding not checking, savings, etc.
Co-branded credit cards from The EXtravel.comHere is an example of special interest free financing with Shop Your Way (Sears/Kmart) cobranded by Citibank
CONCLUSION TO NETWORK VERSUS COBRANDED CREDIT CARDS
Thus a prudent mix of both types of cards is the optimal way to benefiting from credit card differences, the best percentages of cash rewards available combined with interest-free, overtime purchase payments. The blog post A Two-Pronged Credit Card Rating System (Part 2 – June 2019) reviews the reason to get a straight flush scenario with the major network cards.
A straight flush compared to a winning hand of cash reward cards. Image from Dreamline.
THE SECOND FOCUS AREA IN CREDIT CARDS: SECURED VERSUS UNSECURED CARDS
The above questions about network versus cobranded cards will be followed by an explanation of the difference between secured versus unsecured credit cards. On top of that, information about more cobranding banks that were mentioned in the last post will be discussed. Links will be provided in the SOURCES & RESOURCES area, as well.
Quoted from 5 Types of Credit Cards, “People who have a bad credit history or no credit history at all can take help of these secured cards. These secured cards are similar to that of general credit cards. However, in case of these cards, you must make a fully refundable deposit, either by cash or by sending a check. This deposited amount is considered as your credit line. As a result of this deposit, all the secured cards offer guaranteed approval.”
Quoted from the ‘General Credit Cards’ section from the same post, “General Credit Cards: A very common type of credit card is the general credit card. Such credit cards don’t require any kind of security deposit and can be used in most stores/shopping malls or to make any kind of purchases.” This definition would include what we call an unsecured, network credit card or co-branded card.
IN CONCLUSION
As stated earlier, there are really only two kinds of cashback credit cards, network and cobranded. In fact, the secured or unsecured featured is really just a qualification. But it is not its own category as the post 5 Different Types of Credit Cards states.
COMMENTS AND QUESTIONS
This is only a SAMPLE of the comment box that can be found and filled in at the bottom of this page as well as each blog post page.
Readers are welcome to comment on this blog post by scrolling down to the VERY bottom of the page. That is where you will find the comment form with the words ‘start the discussion’. Questions are also welcome. But it is best to contact me for Q&A on The Credit Card Maven Facebook Page.
There are two overall credit card types, network, and cobranded retail store cards. Within these types, there are four network types of cards AMEX, Discover, VISA, and MASTERCARD as well as hundreds of cobranded retail store cards.
This can lead to a great deal of confusion in choosing what to apply for and obtain. Therefore, the goal of this post is to untangle the confusion by identifying the types, networks as well as cobranded ones that exist to distinguish and choose between them. This way, one will have the advantage of applying for and using the best cards while avoiding problematic or less valuable ones.
ADDITIONAL INFORMATION
Besides this post’s specific information, one can find the recently published blog post series on ‘A Credit Card Rating System’. For additional reading, it is filled with information about my helpful Credit Card Rating System in a five-part series.
The traffic signal is the primary visual for this blog series. This image is from Pixabay.
To begin with, there are four networks or ‘major’ Credit Cards. In fact, they are the pillars of the credit card world. Specifically, the first two listed have no bank affiliations. Within them, Discover has the most international acceptance. Then the second two partner with large banks. These cards networks are:
1. AMERICAN EXPRESS (AMEX)
2. DISCOVER
3. MASTERCARD
4. VISA
There are four major credit card types or networks: American Express, Discover Cards, VISA, and MasterCard. Image from Cardrates.com
SECOND TYPE: CO-BRANDED STORE CREDIT CARDS
Store Credit Cards image from rewardscreditcards.orgNext are the store credit cards. There is a significant difference between them and the major network credit cards category. That is their tendency to be backed by smaller banks and their primary function which is to provide no-interest payment plans for making large purchases (hundreds to thousands of dollars) at major retail stores.
EXPLANATION OF CO-BRANDED CARDS
Here’s an explanation of why cobranded cards are so valuable to have as part of the ideal mix of the two major types of credit cards.
The Benefits of Co-Branded Cards in Your Pocket from an unknown source
BEST STORE CREDIT CARDS
What banks do these cards cobrand with? Let’s take a look. This section actually has a list of of some of them as well as the bank affiliations they have. Best Store Credit Cards according to WalletHub.com
Best Retail Store Credit Cards and the banks that cobrand them. Enlargment of above image
BANKS THAT COBRAND THE BEST STORE CREDIT CARDS
According to WalletHub.com, this is a list of the banks that cobrand the best store credit cards. Amazon.com Store Card-Synchrony Bank
Costco Anywhere-Citibank
Target-TD Bank
TJX Store Card-Synchrony Bank
Kohl’s Credit Card-Capital One
Fingerhut Credit Account-WebBank
MORE ABOUT THE BANKS THAT COBRAND STORE CREDIT CARDS
Many stores are cobranded by Synchrony Bank to offer a huge variety of choices
Synchrony Bank
Synchrony Bank specializes in cobranded credit cards. Offering cards that are tailored to particular customers, they have credit cards for store brands, gas stations and more.
“Most are offered with no annual fee and some have excellent rewards available. Synchrony Bank credit cards can be a good choice if you’d like to earn and redeem rewards with a particular brand.” From Synchrony Cards report by US News
Although the following also cobranded with the top retail banks, they will not be gone into in detail at this point. With one exception, Comenity bank which cobrands with 91 retailers will be explored in detail after the list of the other four top cobranding banks. Citibank TD Bank Capital One WebBank
Comenity Bank
91 Comenity Bank partners with retail credit cards from UpgradedPoints.comComenity Bank cobrands with many store credit cards with fleible benefits, quote from upgradedpoints.com
WHAT’S NEXT IN PART TWO
The following issues will be explored in Part Two of this topic, Different Types of Credit Cards And Their Best Uses. Why get network cards? Why get store brand cards? Secured versus unsecured credit cards.
COMMENTS AND QUESTIONS
This is only a SAMPLE of the comment box that can be found and filled in at the bottom of this page as well as each blog post page.
Readers are welcome to comment on this blog post by scrolling down to the VERY bottom of the page. That is where you will find the comment form where the words ‘start the discussion’ are. Questions are also welcome. But it is best to contact me for Q&A on The Credit Card Maven Facebook Page.
Although this final post in the five-part series is about risky cash reward cards and their qualities, I would first like to review the rating system itself. Then this post will get into the details of risky cash reward credit cards and qualities.
CASH REWARD CREDIT CARD RATINGS REVIEW
As explored in earlier posts in this series, I have created a rating system for Cash Reward Credit Cards. It is similar to how traffic signals operate. This image is from Pixabay.
To make the most of cash reward credit cards, it is important to know about the qualities of any cash reward credit card before obtaining or using it. This is because not all cash reward credit cards have the same qualities. Therefore, when you know the qualities, you know how to plan for the most benefits from it and how to avoid the least of them. Let me explain how this works by reviewing the traffic signal system I developed.
THE TRAFFIC SIGNAL SYSTEM FOR CASH REWARD CREDIT CARDS AND QUALITIES
Cash Reward credit cards can be divided into three quality categories similar to a traffic signal: GREEN LIGHT credit card cash reward cards are detailed in the blog post Cash Reward Credit Cards Considerations (June 2019). YELLOW LIGHT cash reward cards are detailed in the blog post, Cash Reward Credit Card Cautions (June 2019). RED LIGHT cash reward cards and qualities are detailed in this blog post. It is about qualities to avoid or even cards with severe drawbacks. If possible, avoid the card limitations but not the card completely if it has redeeming qualities. As the saying goes, ‘don’t throw the baby out with the bathwater’. Sometimes, I find this does apply to cards that have qualities in the RED LIGHT quality category. Thus, here are some situations where this has proven to be the case.
RISKY RATED: PROCEED WITH GREAT CAUTION OR NOT AT ALL
The red ‘Warning’ traffic signal light from Pixaday images.
This post, Part Five of The Credit Card Rating System reveals risky cash reward cards that can present some rather challenging situations. In such cases, I would either pass or proceed with great caution. Anyway, there are several reasons people do acquire such cards:
1. less than stellar credit score which makes better quality cards unavailable
2. lack of knowledge about better quality cards
3. need for any financial benefit at the given time
USE ONLY WITH THE GUIDANCE OF A RELIABLE RATING SYSTEM
As mentioned in Part 4, there are many cash rewards credit cards that require caution when using because of the mixed qualities they possess. I also mentioned that in order to manage all types of cards, I had to set up a system for rating cash reward credit cards.
MY SYSTEM
My system helps determine what degree of cautious awareness is required to use such a card and/or qualities safely. Along these lines, I have reserved this post about risky cash reward cards to focus on what card(s) comprise the riskiest qualities to use. In other words, this post is about the ‘Red Light’ Cash Reward Credit Cards qualities and cards that possess them. These can be the least desirable cards to have.
RED LIGHT CREDIT CARD CASH REWARD CHARACTERISTICS TO AVOID
The red ‘STOP’ light traffic signal light from Pixaday images.
The following information is based upon my own experience and is not necessarily documented research facts. Where it is a fact, a source will be sited.
The CARECREDIT® REWARDS MASTERCARD
For instance, the new CareCredit® Rewards MasterCard has some unusual perks. There are categories in which one can receive 2% cash back. They include medical practitioner charges, drug store charges, and some other unique categories for this rate. But there is a serious limitation in cash reward delivery.
LONG DELAY TO RECEIVE CASH REWARDS
This illustration of a long delay to receive a cash reward is a story about The Care Credit Rewards Card. Promotional signup bonus availability does take the amount of time clearly stated in the application, after 90 days.
On the other hand, cash rewards for the most desirable credit cards take simply a matter of days. Here’s where you can get stopped by a red light. It is also where you may have to weigh whether or not the positive considerations outweigh the qualities to avoid.
When you call, you have to:
1. be specific about asking for the redemption of your cash rewards, in increments of $10
2. verify your information with the customer service representative
3. clearly state, ‘I want to redeem my cash rewards, now’
4. find out when you can expect your cash reward
5. write down every detail each time a call is placed to them about this
The immediate result is the following. It takes one to two billing cycles after calling to request your cash rewards. The number of months delay depends upon what date in relation to the statement date the request is made. Now, are you totally confused as well? I was.
LONG WAIT FOR PROMOTIONAL SIGNUP BONUS TO BE AVAILABLE
In some cases, I have spent the minimum needed to qualify for a promotional bonus in less than the time provided. Some cards will pay me the bonus early. On the other hand, some won’t. It is clear which is preferable. Find out the quality related to this. It is important to know how long the wait is.
CITIBANK N.A. SPONSORED CARDS
Some of the cash back cards sponsored by Citibank, NA are problematic.In addition to VISA, MASTERCARD, AMEX, and DISCOVER CARD, there is a variety of bank-sponsored credit cards such as Citibank N.A., Synchrony Bank, TD Bank, and Comenity. In my experience, Citibank N.A. cards can be problematic. For example, I constantly have trouble logging into my accounts. These include Staples | More Account, and The Home Depot. In addition, one of my accounts was closed without warning due to lack of use. Most credit card companies will write at least once, if not more to notify a customer about an impending closing. To say the least, this is a nuisance if not a real inconvenience.
OTHER QUALITIES AND CARDS TO AVOID OR USE AT YOUR OWN RISK
The red ‘STOP’ light traffic signal light from Pixaday images.
LOW PROMOTION SIGNUP BONUS
There have been times when I really needed a promotional bonus to help pay some bills even if it was only $100. It is not always possible to get the best card with double that rate. Therefore, compromise comes into the picture. Because it’s been quite a while since I needed to signup for one of these cards, I am not sure which they are. But you will find out when you see their offer.
LONG WAIT FOR PROMOTIONAL SIGNUP BONUS TO BE AVAILABLE
In some cases, I have spent the minimum needed to qualify for a promotional bonus in less than the time provided. Some cards will pay me the bonus early. On the other hand, some won’t. It is clear which is preferable. Find out the quality related to this. It is important to know how long the wait is. As mentioned, CareCard Rewards MC is such a card.
$50 MINIMUM IN CASH REWARDS BEFORE DISTRIBUTION IS AVAILABLE
Barclay Bank MasterCard®. There are so many other cards that offer cashback so much quicker. One really needs to question why to bother with this one. Unless this card is used to charge all one’s expenses, it does not make sense to use it. In addition, 1.5% is not such an attractive rate anyway. In my opinion, this is one of those cards to sign up for when you just really need the $100. promotional signup bonuses.
A Review of The Home Depot Card which offers no cash back
NO CASHBACK OR 1% CASH BACK
There are so many cash reward cards with enticing deals that there should be no reason to acquire a card that offers no cashback or only 1% back. Unless there is a good reason, stick to this. Here’s one exception.
When we went to The Home Depot to make some purchases. We got a $25 promotional signup bonus. That paid for what we bought. But after that, the card has sat gathering dust. We have to make a purchase on it or our credit limit will go up at the beginning of next month. At least they wrote to let us know. On the plus side, there are some good promotions on large purchases and time to pay them off.
UNAFFORDABLE HIGH ANNUAL FEES
Some Chase Cards have very high annual fees. But keep in mind that if you can afford it, the benefits can be commensurate with such a fee. But if money for such a fee is not saved and readily available, it can be a disaster.
The Best Buy Citibank Card was cancelled without warning
CANCELLATION OF CARD WITHOUT WARNING FOR LACK OF USE
We had a Best Buy Credit Card issued by Citibank®. We failed to use it within the given time required. But we received no communication from them notifying us that our card would be closed if we did not use it within the given amount of time. To my knowledge, at least one or more letters are required before an account is closed. Shame on you Citibank.
LIMITED ‘LIVE’ HOURS TO REACH THE BANK
This can often be a problem with store credit cards and smaller bank credit card companies rather than large banks. Their hours of in-person availability tend to coincide with regular business hours, 9am-5pm or maybe 8am-8pm. But they are not 24/7.
CONCLUSION
As you can see, there are not always very clear distinctions when it comes to choosing a cash rewards card. Some things may work in your favor while some may not. In addition, ratings and credit card consideration details can change over time. It is best to check the most recent information posted about each credit card. Don’t be afraid to ask questions. Keep asking questions until you get the right answer. Reread this blog post series as well.
Please note: I am not a certified financial planner or professional advisor. These blog posts about the use of credit cards are based on my own experience which I freely share. But I can take no legal or financial responsibility for the results you may have in attempting to follow my system. But I do wish you the best and welcome your questions on the comments at the very end of this post.
‘Stop and Proceed Slowly’ Sign by ComplianceSigns.com
Wells Fargo Promotional Bonus Credit Card Offer
