Does your favorite celebrity endorse a prepaid card? Do all the ads out there for prepaid cards tempt you to get one? If so, it is a good idea to reconsider your options.

While prepaid cards may be the latest rage, the time-tested option of using a checking account is still a superior means of conducting transactions and storing money.

A 2011 study by Consumers Union analyzed fees at some popular banks and compared them to those of popular prepaid cards. The study showed that savvy customers can end up with very limited fees or even no fees at all with a checking account. For example, by avoiding non-network ATMs and taking other measures to avoid fees, customers who use Alliant Credit Union’s Free Basic Checking plan would pay nothing at all for an account. At the high end of the accounts that were studied is a US Bank Free Checking account, and savvy customers would spend only $21.25 per year on this account.

On the other hand, the report by Consumers Union showed that, in a comparison of 12 popular prepaid cards, the lowest annual amount that a consumer could spend is $18 with either the H&R Block Emerald card or the Western Union card. Other cards that were studied had yearly minimum fees of nearly $150.

Of course, the range of fees are virtually endless with both checking accounts and prepaid cards. However, this just illustrates the lowest amount that you could expect to pay with a checking account and the same with a prepaid card. Thus, if you are a fiscally responsible person, you’ll generally do better with a checking account versus a prepaid card in terms of fees.

Even if you decide to let loose and spend like a drunken sailor, you’ll still generally do better with a checking account. In the study by Consumer Union, which consisted of 7 checking accounts and 12 prepaid cards, all of the studied checking accounts ended up being cheaper than 9 of the 12 prepaid cards – even if the customer did nothing to reduce fees.

While there are exceptions, a checking account is generally a cheaper option than a prepaid card.

I’m not aware of any banks that do not offer debit cards to their checking account holders. If you know of any that do not, please tell me and I’ll send Chuck Norris their way to change that.

A debit card is virtually the same as a prepaid card in terms of functionality. You can only spend money that you already have and can typically get either type of card with a major issuer’s logo on it. Essentially, either type of card is almost as good as cash. Nowadays, it’s nearly impossible to find places that don’t accept such cards these days.

So, by having a checking account, you’ll generally have the same features as you would with a prepaid card – and plenty more. All of this generally comes at a lower cost, as well, making it a win-win when comparing these card types.

For old-school spenders, checking accounts offer much more flexibility than prepaid cards.

Checking accounts offer users the ability to – get this – spend with checks! This means that, if the guy behind you at the grocery store makes a rude comment about how many candy bars you throw onto the belt at the last minute, you can whip out your trusty checkbook and waste a few minutes of his day. Also, if you just like paying with checks for whatever reason, you can use them whether or not you are trying to get under somebody’s skin.

A major bank is also likely to have more in-network ATMs than most prepaid cards offer. That is a major factor to consider if you take frequent cash withdrawals or use ATMs for other reasons.

Some people do not qualify for a checking account. If this describes you, then a prepaid card is a viable alternative to a checking account, as it will give you some of the same benefits.

For most other people, a checking account is the way to go. Do you really care which rapper-turned financial genius sponsors a card? Probably not. What you likely care about is getting a good service at a reasonable fee – and checking accounts usually beat prepaid cards in this regard.

“Would you like to sign up for a (insert relevant store) credit card? You can save a zillion dollars and it will make you the king of a small nation.”

Alright, I embellished that a bit, but you get the drift. How many times have you been asked to sign up for a store credit card? The cashier is probably required to ask all customers to sign up for a card and may even get a small commission for signing you up. Still, you may occasionally wonder whether or not the offered card is actually worth it.

The situation is no different at Marshalls, as customers may be asked to sign up for a credit card. You may want to just frown and decline the offer, but it could be a good deal. Is this the case? Let’s find out!

There are two credit cards that are tailored for Marshalls customers. These are the TJX Rewards card and the TJX Rewards Platinum MasterCard. Marshalls is under the TJX umbrella, as are T.J. Maxx and HomeGoods. Thus, the mentioned cards will work at any of these retailers.

Below is a brief overview of each card.

TJX Rewards Credit Card

This card offers 10 percent off your first purchase with the card. So, if you go into Marshalls and buy $1,000 worth of socks, you’ll get $100 back. If you are buying that many socks, you may want to begin wearing shoes outside.

You’ll earn 5 points per dollar spent at Marshalls, T.J. Maxx and HomeGoods. Purchases elsewhere will not earn any rewards.

With this card, you’ll receive $10 in rewards certificates for each 1,000 points that you earn. To reach this many points, you must spend $200 at the mentioned stores. This effectively amounts to a reward of 5 percent, assuming that you are satisfied with being limited to TJX locations.

Note that this card offers 0 percent fraud liability. This means that if you lose this card on the bus and some guy decides to buy $10,000 worth of clothes with it, you should be clear of paying this back.

There is no annual fee with this card.

TJX Rewards Platinum MasterCard

This card offers all of the same features as the standard version. Additionally, it offers the following:

• 1 point per dollar spent at all other locations
• Worldwide acceptance
• Usage of MasterCard ATMs
• Purchase protection
• Extended warranty
• Travel assistance
• Travel accident insurance

There is also no annual fee with this card.

I usually recommend declining store card offers. Store credit cards tend to have very high interest rates and lackluster rewards.

However, it may actually be worthwhile to sign up for either TJX card. Obviously, the Platinum card is a better offer, but either card will save you 10 percent on your first offer. Also, each has an effective offer of 5 percent cash back, provided that this “Cash” is only good at TJX locations. All of this comes at no annual fee, as well.

Still, be careful. Both cards come with a very high APR, as is typical of store credit cards. So, I only recommend signing up for either card if you are certain that you will pay your balance off on time each month.

The verdict? Go for it, but be very careful not to overspend.

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CREDITSHOUT RATING:

Very Good

The Disney Premier Visa card is geared heavily toward Disney fans. Basically, if you love Disney products and/or locations, this card offers substantial rewards.

Sign Up Bonus: With the Disney Premier Visa card, you’ll receive a $100 Disney gift card after your first use of the card. That’ll get you into Disney World for a day with enough left over to buy a small souvenir.

You may expect only Disney purchases to qualify for the highest level of rewards, but you’ll earn 2 percent cash back per dollar spent at gas stations, grocery stores and restaurants. You’ll also earn this much at most Disney locations. All other purchases qualify for 1 percent cash back per dollar spent.

Rewards dollars can be redeemed for airline tickets on any airline. They can also be redeemed at Disney Store locations or DisneyStore.com. Additional redemption options include hotel stays at Disney Resorts, Disney Vacation Club annual dues, park passes and plenty more.

In addition to earning rewards dollars, you’ll get several other perks with this card.

1. With this card, you and up to 5 others may “Meet “N’ Greet” Disney characters. You’ll also get a complimentary photo with them. Alright – it’s just a bunch of people in costumes, but the younger folks in your group may not know or care!

2. You’ll also be eligible for savings of 10 to 20 percent on select purchases with this card. These include select merchandise, dining and guided-tours at Disney World and Disneyland as well as select purchases from the Disney Store and DisneyStore.com.

Alright – here comes the part where the guy on the radio says 300 words in 12 seconds.

This card comes with a $49 annual fee. There is also a 3 percent foreign transaction fee, but that shouldn’t come into play often if you are using this card for it’s designed purpose. Rewards dollars are not the same as cash. They are Disney’s own currency. So, your usage of rewards dollars will be restricted to the offered redemption options.

Actually, that’s about it. There aren’t many what-ifs with this card. That was less than 300 words, too. Not bad, huh?

Disney Premier Visa vs. Disney Rewards Visa

With the Disney Rewards Visa, you’ll receive a $50 gift card after the first use. This is less than the $100 gift card that you’ll get with the Disney Premier Visa.

All purchases with the Disney Rewards Visa qualify for 1 percent cash back in the form of rewards dollars. As many purchases with the Disney Premier Visa qualify for 2 percent cash back, this puts the Disney Rewards Visa at a major disadvantage in terms of purchase rewards.

Another critical difference is that the rewards dollars cannot be used for airline travel with the Rewards Visa. As you can do so with the Premier Visa, this is another major disadvantage of the Rewards Visa.

The rest of the rewards are very similar.

While there is a $49 annual fee with the Premier Visa, there is no annual fee with the rewards Visa.

Although the annual fee is higher on the Disney Premier Visa, most people will easily do better with this card. It’s higher upfront bonus will cover the difference in annual fees during the first year and it’s offer of 2 percent cash back on some purchases will more than cover this amount in future years for most people. Also, with the ability to cash in on airline travel, this card is an easy pick over the Disney Rewards Visa.

The Disney Premier Visa is relatively hassle-free and doesn’t attempt to lure you in with half-truths. It offers strong rewards at a reasonable price. Just remember that the rewards dollars are not the same as cash before you sign up, meaning that you should only get this card if you spend at lot on Disney merchandise and experiences.

Apply for the Disney Premier Visa card.

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Disney’s Premier Visa Card

• Credit Required
  Average Credit
• Rewards Program
  Earn 2% in rewards dollars at gas stations, grocery stores, restaurants, and most Disney Locations. 1% back on all other purchases.
• Signup Bonus
  $100 Statement Credit
  after your first purchase.
• 
  

CreditShout Rating:

( Very Good )

With June quickly approaching many families are starting to prepare for a summer vacation. In less than a month, many kids will be finishing up the school year and parents will be exercising some well earned vacation days.

At CreditShout, this means helping our readers maximize their travel points to make that trip a little more affordable. One of the most popular destinations for families redeeming their card rewards (or least the one we get the most questions about) is Disney. Every week around this time we get a few emails that look something like this:

Dear CreditShout,

My wife and I are starting to save for a Disney vacation. We aren’t “huge” spenders so probably won’t be relying solely on credit card points to pay for this but they will help! Which cards would you recommend using to help us start saving for the trip?

The good news is that here are plenty of cards with travel rewards programs to choose from. However because there are so many different programs, choosing the right one can be confusing especially when you aren’t a high spender – every point you earn matters!

In this situation, your first thought is to probably sign up for the official “Disney” branded credit card. However with credit cards, a little research usually goes a long way and the most apparent option isn’t always the best option. To demonstrate this, today we are going to compare the Disney Premier Visa with another popular option for those earning credit card rewards, the Chase Sapphire Preferred card.

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CREDITSHOUT RATING:

Very Good

Initial Sign Up Bonus

After your first purchase, you’ll receive a $100 statement credit. With a 1-day ticket currently at $85, that’ll get one person in your group or family into the park for a day with enough left to partially cover your first days lunch.

Purchase Rewards & Redemption

Purchases at gas stations, grocery stores, restaurants and most Disney locations qualify for 2 percent cash back in the form of rewards dollars. All other purchases qualify for 1 percent back. Note that rewards dollars are not the same as US dollars, as they are Disney’s own currency. With the US dollar going down the tubes, though, you may want to hold on to these!

Rewards dollars can be redeemed for airline tickets. To do so, you must purchase airline tickets (to any destination) with your Disney Premier Visa card and then redeem rewards dollars for a statement credit. Rewards dollars can also be redeemed for Disney theme park tickets, Disney resort stays, Disney dining and just about anything else that Disney offers.

Discounts

With this card, you’ll receive the following discounts:

• 10% off select merchandise at DisneyStore.com and Disney Store locations (must spend $50 or more)
• 10% off select merchandise at select locations at Disney World and Disneyland (must spend $50 or more)
• 20% off the non-discounted price of select guided tours at Disney World and Disneyland.

Added Bonus: Get a Picture With a Character

On your trip to Disney World, you and up to 5 of your guests can meet and greet a Disney character and get a complimentary photo. I’m not aware of any successful experiments by Disney to create a real Mickey Mouse, but any kids that you bring along might not care if it’s just a guy in a costume!

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CREDITSHOUT RATING:

Excellent

Initial Sign Up Bonus

If you spend at least $3,000 within the first 3 months, you’ll earn 40,000 bonus points with this card. That’s worth at least $400 and will be worth $500 if you purchase travel through the Ultimate Rewards Mall.

Purchase Rewards & Redemption

Purchases of travel and dining earn 2 points per dollar spent. All others earn 1 point per dollar spent.

Points can be redeemed for cash back, travel, gift cards, merchandise and in other fashions. The cash back and travel options make this a strong card for your Disney World vacation.

Transfer to Frequent Flyer Programs

Points can be transferred at a 1-to-1 ratio to frequent flyer programs. These include United MileagePlus, Southwest Airlines Rapid Rewards, British Airways Executive Club, Korean Air SKYPASS, The Ritz-Carlton Rewards, Marriott Rewards, Hyatt Gold Passport, Priority Club Rewards and Amtrak Guest Rewards. If you participate in a frequently flyer program, then this feature could be beneficial for your trip.

Now that we understand how the rewards program associated with each card works, lets take a look at some hard numbers and how much you could really save. For this comparison, let’s suppose that you spend $25,000 on your card between now and the time that you pay for your trip.

The purchases can be broken down into the following amounts:

• Groceries – $5,000
• Gas – $3,500
• Travel – $500
• Dining – $1,500
• Other – $14,500

Here is how each card would work for you, when you break down the upfront bonus, purchase rewards and additional discounts earned with the amount of spending noted above:

As we can see, you’d save over $373 extra when using the Chase Sapphire Preferred card over Disney’s Premier Visa. Also, note that there is no annual fee with the Sapphire Preferred card during the first year, meaning that you won’t pay a dime in annual fees if you just use this card to help fund a trip within the next year. With the Disney offer, you’ll have to pay a $49 annual fee, which will widen the savings gap to over $400 in this example.

To calculate the “Additional Discounts” we used the following spending amounts, estimated based on a vacation for a family of four:

• Airfare – $1,400
• Hotel – $984
• Tickets – $1,049
• Dining – $700
• Experiences – $600
• Merchandise – $150
• Other – $500

So, in conclusion, we recommend going with the Chase Sapphire Preferred card to help fund a Disney World vacation. It offers stronger travel rewards and more flexibility than Disney’s Premier Visa card, making it an easy pick as a go-to card for Disney World vacationers. Still, give Disney’s Premier Visa card consideration if the Sapphire Preferred card doesn’t work for you for any reason.

If you are a Canadian who frequently purchases US goods, a US credit card could be beneficial to your budget. Sure, the Canadian Dollar is currently slightly stronger than the US Dollar, but that benefit will be negated by the typical 2.5 percent conversion fee. Thus, it may make sense to use a US card and avoid that fee.

The easiest way for a Canadian to obtain a US credit card is through a Canadian financial institution. The process is the same as applying for a Canadian credit card, except that you’ll be able to make purchases in US dollars. You’ll need a Canadian credit history and have to meet the same requirements as you would for a standard Canadian credit card, but there isn’t much else to it.

There are a few cards on the market for Canadians who make frequent US purchases. The following are a few such cards and a brief overview of each:

BMO US Dollar Credit Card – Recommended

In my opinion, this is the best Canadian-issued US dollar credit card. It has the lowest annual fee of the mentioned cards at $25. Also, if you spend at least $1,000 during a given year, the annual fee for the following year will be rebated. The interest rate on purchases is 19.5 percent, which is slightly lower than the rate found on the other mentioned cards. The US Dollar Credit Card also comes with purchase and fraud protection. It is a low-frills card, but it will get the job done for a low cost if you use it wisely.

RBC US Dollar Visa Gold

This card has an annual fee of $65 and an interest rate of 19.99 percent. The fee structure is moderate when compared to other RBC rewards cards.

You’ll get to use the Dollar Visa Gold card without conversion charges as long as you spend in US Dollars. Also, you’ll earn 1 point per dollar spent with this card. Additionally, you’ll have travel benefits such as travel accident insurance, auto rental insurance and more.

TD US Dollar Visa Card

The TD US Dollar Visa will also allow you to make purchases in US dollars without incurring a conversion fee. The annual fee on this card is $39 and the interest rate on purchases is 19.99 percent.

The US Dollar Visa Card does not offer any points or similar monetary rewards. However, you’ll have travel benefits such as auto rental insurance, travel accident insurance and more. Overall, this is a decent card for someone who wishes to keep expenses down while making purchases in US dollars.

CIBC US Dollar Visa

The CIBC US Dollar Visa has an annual fee of $35. On purchases, the interest rate is 19.99 percent. You’ll be able to make purchases in US dollars with this card. Other benefits include auto rental discounts and travel accident insurance.

1. Secured Credit Card

Instead of going with a Canadian-issued US credit card, you could go with a US-issued card.

Some US credit cards are issued to those with no credit – making it possible for a Canadian with no US credit history to get a card. Such cards are typically issued as secured credit cards, meaning that you’ll have to make a deposit to acquire one. The interest rates and credit limits may not be the most enticing on the market. However, if you would like to use a US credit card and build a US credit history, a secured card may be the way to go.

Note: Many credit card companies require US citizenship, so this may be a good route only if you have dual-citizenship.

2. Prime Card with Co-Signer

If you can find a co-signer, you may be able to secure a US credit card. Bank of America, Chase, Citi and Discover allow co-signers to help applicants secure cards. You may wish to contact these companies for further information based on your specific situation.

Like many other cases in the financial world, applying for a US credit card as a Canadian can be a bit of a headache. The easiest way is to do so through a Canadian issuer. However, if that doesn’t work for you, give one of the other methods a try.

Also, it may be worthwhile to consider the value of the Canadian Dollar. A Canadian Dollar will currently get just over $1.01 US worth of goods, making it worthwhile to skip the 2.5 percent conversion fee that many Canadian cards assess. However, if the Canadian Dollar becomes a little stronger, it may be worth it to just pay the conversion fee.

Whatever the case may be, there are several ways to obtain a US credit card. Once you’ve done so, be sure to keep up with currency values and conversion fees to determine when it is worthwhile to use your card.

You’re cruising along the highway wondering how the driver next to you can text and eat without driving off the road. Next thing you know your engine light comes on and your car sputters. Oh well, time to call your credit card company and use that roadside assistance coverage, right? Hold your horses.

Although many credit cards come with roadside assistance coverage, it may not be all that it appears to be. Does your card offer roadside assistance? What does each program entail? What should you watch out for?

The following American Express cards offer roadside assistance:

• Platinum card
• Delta Reserve card
• Premier Rewards Gold card
• Green card
• Gold card
• ZYNC card

If you own one of these cards, you’re not completely out of the woods if something goes wrong. There are limitations attached to the roadside assistance features that are offered with each card.

For example, with each card, you’ll get a maximum of either 4 or 5 service calls each year, depending on the card that you have. That should work well unless you are a road warrior or drive over 30 potholes each day.

Also, there is a limit of 1 call over 7 days for the same cause. So, if your engine blows up twice next week, American Express will only help out once.

Most cards also qualify for a maximum tow of 10 miles. This should work fine for most people, but it could be a problem if you are stuck in a rural area.

Important Note: American Express will cover a maximum of $50 per service call. This will fully cover a lot of minor issues, but could be insufficient for some tow calls. Also, note that coverage applies in the US, Canada and Puerto Rico, which means that you should seek alternative coverage if you travel outside of those countries frequently.

Visa does not offer a free roadside assistance program. However, you can get a discount on such service through Visa.

Visa offers all cardholders the Visa Dispatch program. This allows you to call their hotline and arrange for roadside assistance. For a flat fee of $59.95 per call, you’ll be eligible for the following:

• Towing (up to 5 miles)
• Tire change (must have your own spare)
• Jump-start
• Lockout service
• Fuel delivery (cost of fuel is added to total)
• Winching (within 100 feet of maintained roads only)

It can’t hurt to have this benefit, as you’ll only incur a fee if you actually have a problem. Also, for tows of even just a few miles, the fee can be quite expensive, making the flat $59.95 well worth it in some cases. However, it may be best to do a brief calculation to determine whether or not it is worthwhile, depending on the incident.

Only some MasterCard-issued credit cards come with roadside assistance. To determine whether or not your card does so, contact MasterCard at 1-800-MC-ASSIST. MasterCard’s roadside assistance is very similar to that of Visa’s. You’ll have some basic coverage in the event that things go wrong, but will have to pay out of pocket if something happens. Rates vary from $70 to $95 per call.

Many Discover cards do not come with roadside assistance. A few cards come with this feature, but you’ll have to pay out of pocket for it at rates that are similar to those of MasterCard and Visa.

The services that are offered are similar to those that the other mentioned issuers offer. Basically, if your vehicle breaks down, you’ll almost always have some form of help if you have roadside assistance on your card.

Be sure to contact your credit card issuer to verify whether or not your card comes with roadside assistance. Being stuck on the side of the road during a snowstorm won’t be much fun in general, let alone if you realize that your card doesn’t have coverage.

Other than verifying your coverage, remember that you’ll often have to pay out of pocket for your service. Also, keep mileage limitations in mind, as your tow may not be fully covered if you get stuck in a rural area. That has all the recipe for a low-budget horror film, doesn’t it?

Of the major credit card issuers, American Express easily has the best roadside assistance program. You won’t have to pay a dime out of pocket if your fees come in at $50 or less per call. With the rest, you’ll have to pay a fee for roadside assistance on every call.

Consider a traditional roadside assistance provider such as AAA if you don’t have one of the mentioned American Express cards. You’ll have to pay a set amount, but one call with Discover, MasterCard or Visa would just about equal a year’s worth of coverage on some AAA plans.

Suppose that you signed up for the American Express Platinum card. You saw the high-end travel perks and thought that the $450 fee was well worth it. Maybe they were at the time if you were a high rolling globe trotter. However, if you got tired of rubbing elbows with other high rollers or your lifestyle has changed for other reasons, the time may have arrived to downgrade to a less expensive card.

If you own a relatively expensive American Express card such as the Platinum or the Premier Rewards Gold card, and aren’t taking full advantage of the benefits, you can actually downgrade the card to another offering from American Express. If you are downgrading from say, Blue Cash Preferred to Blue Cash, many times this can often be done without a hard credit pull or even an account number change.

Let’s take a look at some of the more popular cards offered by American Express that have either no annual fee, or something a bit more reasonable.

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CREDITSHOUT RATING:

Excellent

Also, note that you’ll receive an upfront bonus of $100 if you spend at least $1,000 over the first 3 months. If you are in the market for a good credit card that won’t cost an arm and a leg, this is one that should be strongly considered.

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CREDITSHOUT RATING:

Very Good

With this card, you’ll earn 3 percent cash back on gas purchases of up to $3,000 annually. Note that the rewards on gas purchases are a bit restrictive, as you’ll only get rewards at Costco and stand-alone gas stations. Purchases at the gas stations of other warehouse clubs, convenience stores, superstores and supermarkets are not eligible for rewards. Also, note that there is a 75 gallon maximum per purchase, which shouldn’t be a problem if you don’t drive a bus to work.

Dining and travel purchases qualify for 2 percent cash back with this card. All others are good for 1 percent cash back.

If you would like a travel card without an annual fee, the American Express Hilton HHonors card should work just fine. It offers high-quality travel rewards at no annual fee.

If you spend at least $750 within the first 3 months with this card, you’ll earn 40,000 bonus points. That’s enough for over 5 nights in a basic hotel room without spending an extra dime.

For purchases at Hilton locations, grocery stores, drug stores, gas stations, wireless and home phone, Internet, cable and satellite television providers, you’ll earn 6 points per dollar spent. All other purchases are good for 3 points per dollar spent. With high rewards per dollar spent, a strong upfront bonus offer and no annual fee, this is a good card to have if you are a traveler on a budget.

How Each Card Could Work For You

Suppose that you spend $50,000 per year with your chosen card. Let’s assume that you spend it as follows:

Groceries – $5,000
Gasoline – $3,500
Clothing – $1,000
Dining – $2,500
Travel – $5,000
All others – $33,000

This is how each card would work for you during the first year:

It is important to note that the Hilton HHonors card is a bit of a wildcard. There are published rewards charts indicating how many rewards are necessary to get certain levels of hotel rooms (you can also redeem in other fashions), but what does that mean to you if you are an average traveler just looking to book a room? For example, I searched for a Hilton room in Seattle and the required points varied widely, even among those with similar prices. In other words, the value of your points depends on more than just the cost of the hotel room.

The upfront bonus on the Hilton HHonors card and it’s purchase rewards are certainly good to consider. If you are looking for a high-quality travel rewards card with no annual fee, this one could be good for you.

However, given that you can spend cash back rewards without any strings attached, I recommend going with the Blue Cash Everyday from American Express card. It offers better rewards with less strings attached than the Costco and TrueEarnings card and has a less complicated rewards system than the Hilton HHonors card. Any card that you choose among these 3 will offer a strong value, but my pick goes to the Blue Cash Everyday card.

You’ve applied for a great deal on a credit card. You’re ready to be notified of your approval and cash in on those great rewards. Then, you find out that your application has been denied. What’s up with that?

If we lived in a world of perfect decision-making, things would operate much more smoothly. However, we do not. That’s why there are appellate courts for erroneous legal judgments, official reviews for questionable calls by referees and, in the credit card business, reconsiderations.

So, if you’ve been turned down on a credit card offer, you may get a second crack at it. Some companies will reconsider their decision if your application has been denied. Let’s take a look at how to go about getting a second chance with your desired credit card.

If a credit card issuer has rejected your application, it should have sent a letter explaining why. This is a good starting point for your appeal.

It is a good idea to read the denial letter carefully to determine why your application was declined. It can tell you whether or not it is worthwhile to contact the issuer’s reconsideration line in the first place. For example, if your application was rejected because your credit score is too low and you’ve gone through 8 vehicle repossessions and been evicted 4 times in the past 2 years, you probably won’t get approved for a credit card on second look. However, if it was because of income issues and your income information is outdated, reconsideration become a much more realistic option.

Have this letter handy when you contact the issuer. It should contain a reference number to expedite the call and allow you to reference it when speaking with a customer service rep.

The way to get the issuer to reconsider your application depends on why it was rejected. Below are a few reasons why your original application may have been rejected and what you can do to deal with it.

Credit Line

If the issuer is not comfortable extending additional credit to you because you already have 1 or more cards, consider requesting a lower credit limit on at least 1 card. Then, the issuer will have no reason not to extend another card to you, provided that it falls within the relevant limit. It is best to verify with the customer service representative that this will work before doing so.

Income

If your application was rejected for income purposes, verify that the information on file is accurate. For example, if you’ve taken on a second job or received a raise since you applied, have your income information updated to reflect the latest figures.

Credit Score

If you have poor credit, there is little that you can do to get reconsidered for a credit card. Still, it can’t hurt to try.

If you’ve made any positive moves in regards to your credit recently such as paying off a loan, mention this to the issuer. The worst that they can say is “No.”

Regardless of the reason that your application was denied, there are a few general tips that can be followed to improve your chances of success. These include the following:

Are You an Existing Customer?

If you already have an account with the issuer, mention reasons why you are a valuable customer. For example, if you have always paid on time and have given the issuer plenty of business in the past, it may realize that you are not as risky as originally determined.

Ask if There is Anything Else You Can Do

As credit card issuers tend to avoid inviting reconsiderations, it may not be clear on how they go about doing so. It is a good idea to just ask the relevant customer service rep. what else, if anything, they want from you before they approve your application. Then, you will have an idea of whether or not this is worth pursuing.

Below are a few contact numbers to call for reconsideration:

• American Express: 866-314-0237
• Chase: 888-270-2127 or 888-245-0625
• Citi: 800-763-9795

Note that issuers don’t publicize their reconsideration policies or numbers very well, so you may have to call the general customer service line if your issuer is not listed above.

There is no standard procedure for getting approved for a card after being denied. However, by following the above tips, you should be well on your way to giving yourself the best chance at doing so.

Remember that there are other cards in the sea. If your chosen card simply isn’t going to end up in your wallet, there are plenty of others out there to pick from.

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CREDITSHOUT RATING:

Very Good

The British Airways Visa Signature card comes with an excellent upfront bonus of up to 100,000 miles, which are also called “Avios.” It also has many other high-quality travel rewards. However, note that you’ll have to pay taxes, fees and surcharges when using your rewards, which can put a damper on this otherwise good travel rewards card.

After your first purchase with this card, you’ll earn 50,000 Avios. At the $10,000 mark, you’ll earn another 25,000 Avios and will do so again after the $20,000 mark. Note that each spending threshold must be reached within the first year to qualify for the mentioned bonuses.

The purchase rewards are fairly strong, as well. For each British Airways purchase, you’ll earn 2.5 Avios per dollar spent. All other purchases qualify for 1.25 Avios per dollar spent.

For each year in which you spend at least $30,000 with this card, you’ll qualify for a complimentary Travel Together ticket. This is a companion ticket that is good for up to 2 years.

An important benefit that this card has is smart-chip technology. As many foreign nations already have widespread use of such technology, you won’t run into the problems that a traditional US credit card with a magnetic stripe can pose while traveling abroad.

Despite the mentioned rewards, though, note that you will be responsible for paying taxes, fees and surcharges with this card. Your companion will have to do so, as well, if you are dealing with a companion ticket. Such fees are estimated at $650 on economy travel from New York to London. I’m not sure how they arrived at this estimate, but I just found an entire flight from New York to London on British Airways (including taxes, fees and surcharges) for $581. In any event, be very cautious when booking your flight with rewards to ensure that you don’t end up paying too much.

The British Airways Visa card has a relatively high annual fee of $95. The rest of the fees and APRs are similar to those found on most other cards.

Note that this card does not have a foreign transaction fee. This can be very beneficial when compared to other cards, as such fees can add up substantially if you travel frequently.

As British Airways Avios can be used on American Airlines, let’s take a look at how the British Airways Visa Signature card compares to the various Citi AAdvantage cards that are on the market:

By viewing this comparison, you may think that the British Airways Visa Signature card is an easy pick. However, given the high taxes, fees and surcharges that are associated with it’s rewards, you may be better off by taking a second look.

On domestic flights, you’ll pay $2.50 in extra fees on award tickets with American Airlines. On international flights, the most you’ll pay is $192.50 – far lower than you will on some British Airways flights when redeeming your rewards.

Due to the extra fees that are associated with the British Airways Visa Signature card, give strong consideration to either the Citi Platinum Select/AAdvantage Visa Signature card or the Citi Platinum Select/AAdvantage World MasterCard. Of course, the card that works best for you will depend on your situation, but these two cards should work well for most travelers.

Pros

• Incredible sign up bonus
• Complimentary companion ticket each year after $30,000 in spending
• Decent purchase rewards

Cons

• Annual fee of $95
• Beware of taxes, fees and surcharges that can put a damper on rewards
• High spending thresholds for some bonuses

With the US dollar seemingly getting weaker by the minute, you may wonder how anyone can afford to travel abroad these days. Once highly valued by the outside world, the US dollar is now weaker than many other first-world currencies. With this in mind, you’ll probably want to minimize your expenses as much as possible while traveling abroad. Sure, you can find the cheapest flights, use credit card rewards and so on, but what you may not realize is that your bill could be several percent higher if you choose the wrong credit card. This is because of foreign transaction fees, which could add several percent to your tally while abroad.

Let’s take a look at how foreign transaction fees work and some good cards that do not have them.

Foreign transaction fees are simple. A set percentage is charged on purchases that you make abroad. A common rate is 3 percent, but this varies from card to card.

To illustrate how foreign transactions could affect your total travel expenses, suppose that you take a trip to Italy over the summer. Below is an example of the expenses that you may incur and how much extra you would have to pay with a foreign transaction fee of 1, 2 or 3 percent:

	Total Spent Before Fees	Fee – 1%	Fee – 2%	Fee – 3%
Transportation	$400	$4	$8	$12
Hotel	$1000	$10	$20	$30
Dining	$400	$4	$8	$12
Sightseeing	$300	$3	$6	$9
Gift Shops	$100	$1	$2	$3
Other	$500	$5	$10	$15
Total	$2700	$27	$54	$81

As we can see, with a typical credit card that has a 3 percent foreign transaction fee, you’d have to pay an additional $81 just for using the card. That probably won’t sink you financially, but that is enough to pay a utility bill, put gas in the car for a few weeks or pay down any existing card balances.

If foreign transaction fees aren’t your cup of tea, there are some cards out there that contain no such fees. These include the following:

1. Capital One Venture Rewards Card

Secure Application

CREDITSHOUT RATING:

Very Good

Sign Up Bonus If you spend at least $1,000 within the first 3 months, you’ll earn a bonus of 10,000 miles with this card. Also, you’ll earn 2 miles per dollar spent on every purchase. Additionally, purchases through Capital One’s Perks Central Network are eligible for up to 15 extra miles per dollar spent.

The annual fee is $59, but is waived during the first year. The APRs are comparable with the average APRs on the market.

This card is a good pick for those who value simplicity. The upfront bonus is easier to earn than most other bonuses. Also, with 2 miles per dollar spent on every purchase, you won’t have to wonder if you failed to meet some obscure condition to qualify for the points that you think you should earn. Importantly, you won’t have to pay foreign transaction fees, which will save you a lot of money when compared to other cards.

2. Chase Sapphire Preferred – $500 in Free Airfare

Secure Application

CREDITSHOUT RATING:

Excellent

The Chase Sapphire Preferred card is a well-rounded travel card for other reasons, as well.

Sign Up Bonus: After spending at least $3,000 within the first 3 months, you’ll earn 40,000 bonus points – a $400 value. Also, you’ll earn 2 points per dollar spent on travel and dining.

When booking through Ultimate Rewards, you’ll get a discount of 20 percent on travel expenses. Also, you can transfer your points at a 1-to-1 ratio to several frequent flyer programs.

There is a $95 annual fee, but it is waived during the first year. The APR’s are on par with other similar cards that are on the market.

Sure, this card has a higher annual fee than the Capital One Venture Rewards card, but the higher upfront bonus alone would cover the difference for over 8 years. I recommend going with the Chase Sapphire Preferred card if you are looking for a card that won’t force you to sacrifice rewards for no foreign transaction fees. Still, if this card doesn’t work for you, give the Venture Rewards card a strong look.

The Bottom Line

Foreign transaction fees won’t kill you, but they can add up if you travel abroad frequently. In other words, if you live in northern Minnesota and take one day-trip each year into Canada, you probably shouldn’t lose sleep over foreign transaction fees. However, if you often forget which country you are in because you travel so much, give a card like the Chase Sapphire Preferred card strong consideration to cut down on your foreign transaction fees while maintaining a high-quality travel rewards card.