Citi has actually had a co-branded credit card in China since 2004, but those cardholders are technically customers of Shanghai Pudong Development Bank. Elsewhere in Asia, Citi has 16M credit card customers, but China…

Wow, what a huge market.

I haven’t seen any details regarding this card and, frankly, I know very little about the credit card market in China. I did, however, run across a 2009 article from the NY Times that talked about consumer debt problems in China due to banks “blindly” issuing credit cards. Sound familiar?

Apparently the number of credit cards issued in China tripled from less than 50M in 2006 to 142M in 2008, and a total of roughly 1.9B cards are believed to have been issued there since 1985.

Source: CNN/Money

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While flipping through the mail, I recently ran across a missive detailing a test of a new cash back feature for the Chase Freedom card.

As you’re likely aware, many credit cards (including this one) have adopted a rotating bonus category model, where you get 5% on purchases in certain categories for a limited time, and 1% on everything else.

In the past, you’ve had to re-enroll each and every quarter to get 5% cashback on the select categories. Annoying. But that’s (hopefully) changing…

Because I’m a “valued Chase Freedom cardmember,” I’ve been invited to participate in a test of a new auto-activation system. In short, I just have to sign up and agree to receive text reminders.

The text reminders (no more than one per month) sound fairly non-invasive; they simply remind you of the reward categories. In return, you’ll be auto-enrolled in the bonus categories each quarter for the remainder of 2012.

If you discontinue the text reminders (which you can do at anytime) you’ll also lose the auto-activation, so you can’t easily game the system.

If you’re interested, you can sign up at chase.com/freedomoffer — but hurry, you have to do so by February 10th to qualify.

Note: According to a reader (thanks Jonathan!), this is a targeted offer, so you may not be eligible. But if you’re interested, it can’t hurt to try signing up.

Don’t forget the $200 bonus…

And don’t forget… If you don’t already have the Chase Freedom card, you can get a $200 cash bonus by applying for one, getting approved, and spending $500 within the first three months. There’s no annual fee. Technically, you’ll get 20,000 points, but you can easily redeem these for a $200 check.

For what it’s worth, we’ve had this card for years and have never had any problems getting Chase to hold up their end of the bargain. You just login, request the check, and it shows up in your mailbox within a week or so.

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Was one of your New Year’s resolutions to pay down your credit card debt? If so, then you might be interested Discover More’s newest 0% balance transfer offer. This card offers 0% APR on both purchases and balance transfers with no transfer fee and is thus far one of the best balance transfer credit cards of 2012.

The 0% APR promo rate applies for 12 months following the date of your transfer, and the transfer(s) has/have to be made by August 10, 2012 to qualify for the no-fee treatment. After that, there will be a 3% fee, but that’s six months away so you should have plenty of time to make the transfer. Also note that there is no annual fee.

This card pays up to 5% cash back for purchases in rotating categories, though (if I had high interest credit card debt) I would personally use it for the balance transfer and nothing else.

Here are the details:

• Limited Time Offer – $0 Balance Transfer Fee!*
• 0% intro APR on purchases and balance transfers for 12 months, then the variable standard purchase APR of 10.99% – 19.99%*
• 5% Cashback Bonus® in categories that change like gas, restaurants, department stores and more. Limitations apply*
• Up to 20% Cashback Bonus at popular retailers when you shop online through Discover.com
• Discover is ranked #1 in customer loyalty–15 years in a row! (2011 Brand Keys Customer Loyalty Engagement Index report)
• 24/7 access to a U.S.-based Account Manager within 60 seconds
• Great rewards with no annual fee, no rewards redemption fee, and no additional card fee
• *Click apply to view rates, fees, rewards, limitations and other important information

If you’re interested, then by all means…

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As a followup to my recent post about Chase Freedom bonus categories for 2012 (and their $200 signup bonus), here’s some info on the bonus categories for the Citi Dividend Platinum Select Visa credit card…

As you’re likely aware, many credit card companies have switched to a model where they offer a base level of rewards (typically 1%) plus bonus rewards (usually 5%) in certain categories. Citi is amongst those who now use this model and, unfortunately, you have to re-enroll each quarter.

The categories just switched on January 1, so it’s time to re-enroll. Here’s the deal:

Earn 5% Cash Back when you use your Citi Dividend Card in the following categories from January 1, 2012 through March 31, 2012*, after you accept this offer:

• Health Care
• Fitness Clubs
• Utilities

Within 2 business days of when you accept this offer, or January 1, 2012, whichever is later, you will earn an additional 4% cash back on eligible health care, fitness club and utilities purchases from January 1, 2012 and March 31, 2012.

The healthcare category includes physicians, dentists, medical facilities, etc. Thus, if you have a high deductible health plan like we do, this could come in quite handy during the early part of the year before you’ve satisfied your deductible.

To enroll, simply login to your account and look for the 5% banner along the left edge of the screen. Click it, agree to the terms, and you’re done.

Don’t forget the $100 bonus…

If you don’t already have the Citi Dividend Platinum Select Visa card, you can get a $100 cash bonus by applying for one, getting approved, and spending $500 within the first three months, and there’s no annual fee.

As with the Chase Freedom card, we’ve had this card for years and have never had any problems getting Citi to hold up their end of the bargain. You just login, request the check, and it shows up in your mailbox within a week or so.

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With New Year’s Day nearly upon us, it’s time to think about signing up for the next round of bonus categories on your rewards credit card.

As you may recall, most cash back credit cards have moved to a base 1% level of earnings with rotating bonus categories, and you need to sign up for these on a quarterly basis.

Looking ahead to 2012, here are the Chase Freedom 5% reward categories…

January-March: Amazon.com and gas stations

April-June: Grocery stores and movie theaters

July-September: Gas stations and restaurants

October-December: Airlines, hotels, Best Buy, and Kohl’s

To register your card for Q1, be sure to visit ChaseBonus.com — and don’t forget to go back to re-register throughout the year.

Don’t forget the $200 bonus…

If you don’t already have the Chase Freedom card, you can get a $200 cash bonus by applying for one, getting approved, and spending $500 within the first three months, and there’s no annual fee. Technically, you’ll get 20,000 points, but you can easily redeem these for a $200 check.

For what it’s worth, we’ve had this card for years and have never had any problems getting Chase to hold up their end of the bargain. You just login, request the check, and it shows up in your mailbox within a week or so.

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This is just a quick note to let you know that the Discover More card is currently offering a $150 signup bonus. It’s been over a year since I last wrote about a Discover signup bonus, and this one is twice as rich as the last one.

To qualify for the bonus, you need to apply for the card, get approved, and then spend $1000 within the first 90 days.

In case you’re not familiar with the Discover More card, it’s widely considered to be one of the best cash back credit cards, paying up to 5% cash back in rotating categories with no annual fee.

Other attractive features of this card include 0% on purchases for the first six months, 0% on balance transfers for the first six months (albeit with a 3% fee), and up to 20% cash back when shopping through their online shopping mall.

But really… That $150 cash bonus is the big thing here.

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Check this out… According to TransUnion, which is one of the big three credit bureaus, credit card delinquencies are currently at their lowest level in 17 years.

Surprised? I am. Given all the tight job market, stagnant wages, and increasing food prices (among other thing), I wouldn’t have expected it.

At the same time, however, more Americans are falling behind on their mortgages. According to Charlie Wise, TransUnion’s director of research and consulting, “Consumers are protecting their credit cards. It gives them financial flexibility.”

Back in 2008, 4.3% of consumers were current on their credit cards but behind on their mortgages. Fast forward to 2010, when that number climbed to 7.4%. On the flip side, the number of consumers that are delinquent on their credit cards but current on their mortgages dropped from 4.1% to 3.0%.

So the numbers here aren’t huge, but there’s a definite pattern — and the relative changes are quite large. But why? Historically, people in financial trouble have tended to pay stay current on their mortgages while letting their other obligations slide. So why the reversal?

Experts say it’s because the housing market is so bad that consumers are being forced to make tough choices. As it becomes clear that they’re going to lose their homes, more people are choosing to protect the few financial tools they have left.

Whatever the cause, it’s an interesting — and potentially troubling — change.

Source: AJC.com

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This is just a quick note to let you know about another interesting promo from American Express. Just in time for the peak of the holiday shopping season, they’ve rolled out their so-called Gift Chain program.

In short, you just need to register your card and then you’ll get a free gift valued at between $2-$500 every time you spend $25 at select online retailers between 11/28 and 12/21. Participating retailers include:

• American Eagle Outfitters
• Bed Bath & Beyond
• Blue Nile
• Dell
• GameStop
• J.Crew
• Lenovo
• Neiman Marcus
• Nike
• Pottery Barn
• REI
• Rue La La
• Toys”R”Us
• vente-privee
• WalMart
• YoYo.com
• Zappos

Honestly, there’s not much on that list excites me, but it can’t hurt to sign up.

And if you’re intent on making the most of this offer…

ProTip: There’s a limit of 10 gifts total, but there is no limit per retailer. Thus, you can buy (in separate transactions) 10 x $25 WalMart gift cards to max out the gifts in short order. Or you could buy gift cards to other stores through WalMart in ten separate purchases. Whichever you prefer.

The gifts include small (generally $2-$10) statement credits, store gift cards, etc. Presumably that high value items are pretty rare, but you could still wind up with a nice little pile of gifts if you do this.

This promo is open to the first 250k registrants. As of right now, around 90k people have signed up. Here’s the link: Amex Gift Chain.

Hat tip: MyMoneyBlog via The Finance Buff

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As a quick followup to my post about Small Business Saturday, I also wanted to point out a $20 bonus offer from MasterCard. To qualify, simply register your card and then spend $200 online between now and December 31st. Within a week of hitting the spending threshold, you should receive an e-mail with redemption details.

The email will contain a link to the Redemption Form where you must provide your complete Gift shipping address and other relevant details, including your registered email address. MasterCard gift card recipients should allow 1-2 weeks following submission of the Redemption Form to receive your gift card via USPS First Class mail.

Note that this promo is limited to “the first 80,000 eligible entrants.” The next 10k eligible entrants will receive a 1-year subscription to “a magazine title to be designated by Sponsor.” And beyond that, there are no rewards.

It’s unclear (at least to me) if these means that only the first 80k to register can get the card, or if it’s the first 80k to register and hit the $200 online spending threshold. Either way, it only takes a few seconds to register, and you might wind up with a $20 gift card. It can’t hurt to try. Here’s the signup link.

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As you’re likely aware, this coming Friday is none other than “Black Friday.” And what happens the day after that? Small Business Saturday, of course.

Small Business Saturday is a promo that was launched last year by American Express. The goal of this promotion is to get people to shop at small, locally-owned businesses – and to use their American Express cards when doing so. As before, Amex is offering a $25 bounty for participating.

Simply register your eligible card(s) and and then make a $25 minimum purchase (with your card, of course) at a qualifying small business on this coming Saturday, November 26th. In return, you’ll get a $25 statement credit.

Eligible merchants include:

…any independently owned small businesses that accept the American Express Card. Purchases made online, at large, national chains, at franchised business locations and at government agencies are not eligible. Prepaid, corporate cards and ExpressPay transactions are not eligible.

There’s a limit of one statement credit per card no matter how many purchases you make. That being said, I was able to get credits on two different cards last year, so if you have more than one Amex card, you might consider registering and using each of them.

The credit should show up within five (5) business days, but it could take up to two statement cycles in some cases. Last year, my credits showed up very quickly (within just a few days).

This is a win-win for you and any local merchants that accept Amex, as they’ll get extra business and you’ll get a $25 credit.

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Have you ever noticed that certain businesses offer a discount for paying with cash vs. credit? This practice is particularly common at gas stations, though you’ll sometimes see it at other businesses, as well. And yet, as we’ve discussed, it’s against the policies of the major card networks (Visa, MasterCard, etc.) — and, in some cases, against state laws — to charge a premium for using a credit card.

So what’s the deal? Are these businesses breaking the rules? As it turns out, dual pricing is allowable, but only if the vendor advertises the credit card price and then offers a cash discount from there. In contrast, they’re not allowed to advertise something at a certain price and then tack on an upcharge for using a credit card. Seems like a silly distinction to me, but it is what it is.

Given this loophole, a number of businesses have taken to incentivizing cash by passing a portion of their savings on to the customer. From a consumer standpoint, you have a decision to make. Is it worth giving up the convenience of your credit (or debit) card, as well as the cash back rewards, in return for a cash discount? In some cases, yes. In other case, no. It all depends on how big the discount is — and how much extra cash you’d have to carry around to cover the expenditure.

I’m mainly bringing this up today because I recently received an e-mail from a reader named Joe who ran into something similar at the doctor’s office. Apparently he’s been dealing with an eye surgeon who is charging $5400 for a certain procedure, but wants more if you pay with a credit card. Joe was wondering if this is allowable.

In short, it all comes down to how the dual pricing is presented. If the doctor is advertising the procedure at $5400 and then upcharging if you want to use a credit card, he’s running afoul of the credit card rules, and possibly state law. If, on the other hand, he is charging (say) $6000, with a 10% cash discount, that’s perfectly allowable. Again, it’s a silly distinction, but it is what it is.

We’ve actually run into this ourselves at the orthodontist, where they offer both a cash discount and a discount for paying for the full course of treatment in advance vs. doing an installment plan. Since we’ve been in the fortunate position of having the cash on hand, we jumped at the chance and saved a good bit of money.

What do you think? Should dual pricing be allowed? Do you choose to pay with paper over plastic when there’s a discount involved?

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The recent news that banks were planning to charge monthly debit card fees was not well-received by recession-weary Americans. The rising costs of fuel, food and living in general when unemployment is at an all-time high means the timing couldn’t have been worse to hit up our pocketbooks some more.

When will it all stop?

Well, banks have since backed off on the debit card fees, but that doesn’t mean they’ve stopped looking for ways to nickel and dime our pocketbooks into oblivion. It’s up to the Consumer Financial Protection Bureau to keep these bank fees in check.

Created by Congress in 2010, the CFPB and opened its doors in July 2011. The CFPB’s job is to help put a stop to unfair and/or abusive practices when it comes to financial products and services. According to its website, the agency’s central mission is to “make markets for consumer financial products and services work for Americans.” Among other things, this means protecting credit card holders, bank customers, etc. from unreasonable fees.

For consumers, education is key.

Not only is it the CFPB’s job to gather and analyze information to better understand consumers, but the agency also ensures that Americans receive the information they need to make smart financial decisions in an easy-to-understand format. This means nothing should be buried in fine print, direct comparisons can be made, and financial service providers cannot be deceptive or unfair.

The CFPB’s initiatives in the last year have sought to simplify a number of processes and to make critical information more accessible and easier to decipher. For example, Know Before You Owe combines two federally-required mortgage disclosures into one simple format so consumers are better equipped to understand the costs and risks of a loan.

The agency also commissioned a survey to explore how Americans perceived the Card Act, a credit card holders’ bill of rights that touts fairness and transparency that was signed into law by President Obama in May 2009 and instituted in February 2010.

More recently, the CFPB has set its sights on checking account overdraft fees. It’s no wonder, as the banking industry is said to have taken in record amounts of overdraft fees, well into the billions of dollars, that some contend has been acquired through unfair processing and fees, along with unclear disclosure information.

The skepticism about overdraft fees is not new. A 2008 Federal Deposit Insurance Corp. (FDIC) report found that three-quarters of all banks automatically enrolled consumers in overdraft protection, sometimes without their knowledge.

Following the FDIC report, the Federal Reserve developed rules requiring banks to ask customers whether or not they wanted to enroll in overdraft coverage.

The CFPB’s goal is to take another look at bank overdraft programs and attempt to clarify the cost of free checking accounts. This means consumers will be better informed about overdraft fees and the impact on their bank accounts.

Consumer advocates are counting on the CFPB to crack down in other areas, as well. For example, some are calling for more policing of check-cashing operations and their high fees. Others are looking for increased regulations regarding prepaid debit cards, which can be more expensive and less secure than traditional deposit accounts.

For-profit debt settlement companies, which have been further regulated by the FTC recently, are also under fire by advocates, who charge that these firms target and exploit desperate consumers.

Granted, the CFPB has its work cut out for it, but at least they no longer have to take a look at that $60 annual debit card fee. Hopefully, by keeping the consumer in mind when making their rulings, the agency can stop other abuses, provide consumers with better insight into their financial transactions and obligations, and positively impact the economic climate overall. Every penny counts.

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Prior to 2009, you could hardly open your mailbox without getting an offer for a no fee, 0% balance transfer from one credit card issuer or another. And then it happened. The economy crashed and the credit markets tightened up. And pretty much every attractive credit card offer dried up.

Over the past year or so, more attractive offers have been coming back on the market, but it’s still relatively rare to see 0% balance transfer offers without a 3-5% transfer fee. Whether you’re looking to make a quick buck or reduce your interest payments, these fees have been a very unwelcome addition.

The good news is that, while fee-free offers are rare, they’re not unheard of. For example, the Chase Slate card now comes with a 15-month, 0% balance transfer offer with no transfer fees. Note, however, that you need to make the transfer within 30 days of your account being open or you’ll face a 3% transfer fee.

While the 0% arbitrage game has gone down the tubes ever since bank interest rates tanked, these cards are still a great way to reduce your interest obligations if you’re digging yourself out of debt. Just be sure to stop buying things on credit or you’ll wind up even deeper in debt than when you started.

You also need to be sure that you’ll be able to pay off the balance before the promo period ends or you’ll wind up back where you started. Remember, as the past few years have shown us, these sorts of offers come and go, so there are no guarantees that you’ll be able to find another 0% offer to switch to a year from now.

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When I wrote last week about credit card surcharges, I noted that ten states have actually passed laws against such fees. This is in addition to the major card networks having banned them as part of their merchant agreement.

The ten states with laws against credit card surcharges include:

• California
• Colorado
• Connecticut
• Florida
• Kansas
• Maine
• Massachusetts
• New York
• Oklahoma
• Texas

If you are hit with a credit card surcharge or other checkout fee in one of these states, you can contact the state’s Attorney General. Contact information can be found on the National Association of Attorneys General website (link).

As I noted in that original post, merchants can offer discounts for cash payments without getting in trouble with the credit card networks, and such discounts are also legal in most (if not all) of the states with a surcharge ban.

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I’m currently on the road and just had an opportunity to dine out at a fantastic local breakfast spot. After placing my order and being told my total, I whipped out my Chase Freedom card, at which point I was informed of a $0.40 charge for using a credit card.

I was annoyed, but I was in a hurry and wanted to conserve my cash, so I had them go ahead and run my card. I also rationalized that, with the 5% bonus rewards on restaurants, it would end up being a push vs. using cash.

So what’s the deal with credit card surcharges? Are they okay? Well… According to Visa (details here):

A checkout fee, or payment card surcharge, is an unfair surprise fee that a retailer tacks onto a consumer’s bill when he or she uses a credit or debit card. Visa rules do not allow retailers to charge cardholders a checkout fee for using their cards, mirroring laws in 10 U.S. states.

In other words, not only does Visa not allow this practice amongst their merchants, but 10 states have actually outlawed such fees. And guess what? The state I’m in is amongst those that don’t allow it.

While this bugged me, it really wasn’t a big enough deal for me to pursue. But if I wanted to follow up on this, I could report them to Visa as well as to the state attorney general’s office. Will I bother? Probably not — it’s just not worth the time involved.

Interestingly, merchants can offer a discount for using cash or checks without running afoul of the rules. While this really seems like two sides of the same coin, the difference is that the merchant would have to advertise a higher price and then discount down from there. I’m guessing that most merchants would prefer to offer a lower price so as to appear more competitive, and then tack on a fee.

What do you think? Should merchants be allowed to tack on a credit card fee? How would you handle it if they did? Would you use your card and move on? Use a different form of payment? Go somewhere else? Report them? Let us know in the comments.

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That’s right… I just got upgraded to first class for a cross-country flight. Woohoo! While I fly a reasonable amount over the course of a year, it was never quite enough for me to qualify for free upgrades like this.

This is a huge deal for me, as I’m tall, and I don’t fit very well in economy seats. Thus, I’ve always suffered through long flights. While my flyer status is now high enough to give me access to those exit row seats that they’ve long since blocked off for frequent flyers, nothing quite compares to sitting in first class.

Yes, I’m paying $150/year for this card, but the complimentary companion certificate (redeemed earlier this year for a $385 ticket), the MQM miles, and the resulting access to first class upgrades make this fee a worthwhile expenditure.

The regular miles that I earn are just icing on the cake, and I’m often able to redeem them for something close to $0.02/mile, which is roughly equivalent to earning 2% in the form of cash back rewards.

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I’m not normally a fan of store credit cards, but I recently looked into the Target REDcard, and I have to say that it looks quite good. This past weekend, my wife and stopped in at our local Target store for some early Christmas shopping. While there, I picked up a pamphlet about the REDcard and gave it a quick once over.

Hmmm… Not too shabby. Yes, it’s a store-branded credit card, but it’s an actual Visa card that you can use anywhere you please. On top of that, you get 5% cash back on all Target purchases. And for every five prescriptions you buy with it (from the Target pharmacy, of course) you get an additional 5% at Target for an entire day.

The Target Visa is not to be confused with the Target Credit Card, which can only be used at Target, but still offers the cash back rewards. Interestingly, they also offer a debit card that you can link directly to your checking account. This debit card can likewise only be used at Target, and it also qualifies for the 5% cash back rewards.

The primary downside to the REDcard is that you don’t earn rewards anywhere else. Thus, this card probably only makes sense if you’re going to carry it alongside another “general purpose” reward credit card. Given that I’ve been trying to simplify our financial life, that makes it significantly less attractive to me.

Ultimately, I decided to pass on this card. We just don’t shop at Target often enough to make it worth keeping track of another credit card bill every month. While we could use the debit card to get the 5% discount without generating another bill, I’m not crazy about the idea of linking a third party debit card to our checking account.

What about you? Are you interested in this sort of targeted (no pun intended) reward card? Or would you prefer to just carry a single, general purpose reward credit card?

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As a followup to my recent post about the Chase Freedom bonus reward categories for Fall 2011, here’s some info about the newest bonus categories for the Citi Dividend Platinum Select Visa…

As you’re no doubt aware, many reward credit cards have switched to a model where they offer a base level of 1% rewards plus bonus rewards in rotating categories. Citi adopted this model a little over a year ago.

The categories will switch on October 1, so be sure to enroll. Here’s the scoop:

Earn 5% Cash Back when you use your Citi Dividend Card in the following categories from October 1, 2011 through December 31, 2011*, after you accept this offer.

• Department Stores
• Clothing Stores
• Electronics Stores
• Toy Stores

*Within 2 business days of when you accept this offer, or October 1, 2011, whichever is later, you will earn an additional 4% cash back on transactions identified as purchases made at standalone department, clothing, electronics, and toy stores from October 1, 2011 through December 31, 2011.

To enroll in this offer, simply login to your account and look for the small “earn 5% cash back” link on the left in the “Did You Know…” section and then click “Accept” on the next page.

If you can’t find the link, or would rather talk to a person, I’d imagine that you could call the number on the back of your card to opt-in.

There does not appear to be a quarterly limit associate with this offer, but you can only earn a total of $300 cash back per calendar year.

And if you don’t yet have this card, you can…

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» Citi Bonus Cash Back Reward Categories for Winter 2012 – Plus a $100 Bonus
» Citi Dividend Platinum Select Card
» Chase Freedom Reward Categories for Fall 2012 – Plus a $200 Bonus
» Citi Dividend Platinum Adopts Rotating Reward Categories
» Citi Bonus Reward Categories for Winter ‘12
» Discover More Cash Back Reward Categories for 2011
» Chase Reward Categories for Fall ‘12 – Plus a $100 Bonus
» Chase Freedom Bonus Reward Categories – Summer ‘12

As we head into fall, it’s time for Chase Freedom cardholders to sign up for the next round of bonus reward categories. This time around, they’re offering 5% cash back from Oct 1 through Dec 31 on hotels, airlines, Best buy® and Kohl’s. As always, the bonus is limited to $1,500 in purchases in the relevant categories.

An added wrinkle this time around is that you’ll earn an “extra” 5% cash back on purchases at Kohl’s. I’ve read through the offer fairly closely, and it’s still unclear to me if this means 5% + 5% = 10% on Kohl’s purchases, or if it means that Kohl’s is essentially an extra category with it’s own $1500 limit.

Here’s the text from their FAQs:

Q. Will I receive an extra 5% cash back on purchases made at Kohl’s?

A. Yes, just activate your 5% cash back categories and you’ll automatically receive an extra 5% cash back on up to $1,500 spent on Kohl’s purchases. That’s in addition to the 5% cash back you receive when you spend up to $1,500 in the four categories (dining, department stores, movie theaters and charitable organizations) this quarter.

Q. Can I get 5% cash back at Kohl’s even if I’ve already earned 5% cash back on $1,500 spent in the other categories?

A. Yes! You can earn 5% cash back on up to $1,500 spent at Kohl’s on top of the 5% cash back you already earn in this quarter’s categories.

This means you can earn an extra bonus of up to $75 on Kohl’s purchases. That’s on top of the $75 you’ll earn when you make purchases in the three categories (hotels, airlines, Best buy®).

The answer to the first question makes it sound like you’re getting an additional 5% on Kohl’s purchases, but the answer to the second question makes it sound like Kohl’s is essentially an extra, standalone category.

Regardless, if you have this card, you should visit ChaseBonus.com and follow the instructions to get your bonus rewards — or just call the number on the back of your card and tell the rep what you want to do.

Don’t forget the $200 bonus…

If you don’t already have a Chase Freedom card, don’t forget about the $200 signup bonus for applying for one, getting approved, and spending $500 within the first three months. Technically, you’ll get 20k points, but you can easily redeem these for a $200 check.

For what it’s worth, we’ve had this card for a long time and have never had a problem getting Chase to hold up their end of the bargain. Simply login to your account and request a check. It should show up within about a week.

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» Chase Reward Categories for Summer 2012 – Plus a $100 Bonus
» Chase Reward Categories for Winter ‘12 – Plus a $100 Bonus
» Chase Freedom Bonus Reward Categories – Summer ‘12
» Citi Bonus Cash Back Reward Categories for Winter 2012 – Plus a $100 Bonus

Details are now starting to trickle in on the replacement of the Schwab Visa cash back credit card. For starters, the “2% on everything” will end on 10/31/2011.

In place of the old card, Bank of America will be issuing a new card that offers 1% cash back on retail purchases, 2% on groceries, and 3% on gas — with a $1500 quarterly cap on groceries and gas. You will also (apparently) get a 10% bonus on your cash back earnings if you have them deposited into a Bank of America account.

Alternatively, at least one reader has been offered the option of switching to a Bank of America “Privileges” card with that offers 1% cash back on all purchases, and 3% on select categories that rotate quarterly. I’m not sure if you’ll have to opt in like with other card issuers, but this sounds similar — except both Citi and Chase offer 5% cash back on their bonus categories. Note, however, that Chase is currently offering a $200 signup bonus.

While that same reader was told that the terms and conditions of their current (Schwab/FIA) account would apply to the new account, a reader named Janice reported that:

I received another letter today from B of A. They state that travel accident insurance will be reduced from $1,000,000 to $250,000; I.D. Theft Recovery will no longer be a benefit; and Price Protection will no longer be a benefit.

It remains unclear if features like the lack of foreign transaction fees will remain in place.

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In talking about the Chase bonus categories last week, I mentioned that they were offering a $100 signup bonus, but guess what? They’re actually offering a $200 bonus!

As it turns out, they have two different offers for the same card. The one that I linked to last week includes a 12 month 0% balance transfer as well as the $100 signup bonus. The one that I’m linking to today has the $200 signup bonus but no 0% promo period.

Either way, this card comes with a standard 1% cash back reward with rotating 5% bonus categories, and there’s no annual fee. To get the signup bonus, you need to spend $500 within three months, at which point they’ll credit your account with 20k points that can be used to request a $200 check.

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» Chase Freedom Reward Categories for Fall 2012 – Plus a $200 Bonus
» Chase Reward Categories for Summer 2012 – Plus a $100 Bonus
» Chase Reward Categories for Winter ‘12 – Plus a $100 Bonus
» Why Didn’t I Earn Bonus Rewards from Chase?
» Chase Freedom Reward Categories for 2012 – Plus a $200 Bonus

As you may recall, Chase Freedom card offers bonus rewards in different spending categories on a quarterly basis — and yes, you have to re-enroll each quarter.

This time around, they’re offering 5% cash back on gas stations and restaurants from July – September. There’s a $1,500 spending cap for the bonus rewards, so we’re actually talking about a possible $75 in bonus rewards.

While $75 isn’t a huge sum, it’s certainly worth the minimal effort required to enroll your card in the program. Speaking of which… To enroll, visit ChaseBonus.com and follow the instructions, or call the number on the back of your card.

Don’t forget the $100 bonus…

If you don’t already have a Chase Freedom card, you can get a $100 bonus by applying for one, getting approved, and spending $500 within the first three months. Technically, you’ll get 10k points, but you can easily redeem these for a $100 check.

For what it’s worth, we’ve had this card for a long time and have never had a problem getting Chase to hold up their end of the bargain. Simply login to your account and request a check. It should show up within about a week.

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» Chase Freedom $200 Signup Bonus
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» Citi Bonus Cash Back Reward Categories for Winter 2012 – Plus a $100 Bonus
» Chase Freedom Reward Categories for Fall 2012 – Plus a $200 Bonus
» Chase Reward Categories for Winter ‘12 – Plus a $100 Bonus
» Chase Freedom Reward Categories for 2012 – Plus a $200 Bonus

Not quite a year ago, I mentioned that Schwab would no longer be sponsoring their 2% cash back credit card.

That was the bad news. The good news was that cardholders continued receiving 2% cash back on all purchases as they transitioned the card over to FIA Card Services. In actuality, FIA had been servicing the card all along, but it was co-branded with Schwab.

Fast forward to now… I’ve heard from several readers (and seen elsewhere) that FIA has been notifying cardholders that this card will soon be re-branded (again) as a Bank of America rewards credit card. Details beyond that are scarce, but many are concerned that this will mean an end of the 2% rewards.

While that may well be true, it’s worth noting that FIA and BofA are essentially one and the same. Moreover, I’ve heard internet rumors of people having talked to FIA phone reps and being told that that 2% rewards would remain.

For now, I guess the best strategy is to wait and see. But if you have this card, be aware that changes are afoot.

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There was a time when I was solidly in the cash back credit card rewards camp, and you couldn’t have convinced me to apply for a frequent flyer credit card. But that was then, and this is now…

Last summer I applied for an Amex Delta Platinum SkyMiles credit card. I travel semi-frequently, and our family also takes periodic trips. Given that almost all of this travel (when it involves flying) is done on Delta, I thought a targeted card like this might make sense for us.

Upon approval, I was granted 20k bonus miles, 5k of which were MQMs (i.e., they count toward upgrading my flyer status), along with an extra 2250 bonus miles for my wife’s card. As far as ongoing rewards go, I earn one mile per dollar spend with double miles on purchases from Delta. I also get chunks of additional MQMs at specific spending levels (10k MQMs for each $25k spent) as well as free checked bags and one free “companion” travel certificate per year.

All in all, it’s been a good experience. Thanks to the bonus MQMs, I’ve been able to upgrade my status such that I earn mileage at a higher rate when I fly, I get occasionally get free upgrades, and I also get to reserve seats in the sought after exit row – this is no small thing when you’re 6′5″.

All of that is well and good, but how much are these rewards actually worth? I place a very high value on the status upgrade, as that pays dividends in multiple ways. But what about actual cash savings? Well…

My wife is taking two of our kids to visit family this fall. Last night, while making arrangements, I was able to use miles to snag one of the tickets (albeit at a slightly inflated price) and then use the companion ticket for a buy-one-get-one-free pair of tickets for the other two.

The reward ticket cost 32,500 miles – a bit higher than the base 25,000 due to availability – with a $5 booking fee. That ticket would have otherwise cost $385, so I saved $380. That works out to just shy of 1.2 cents per mile. Not the steal of the century – I’ve done better in the past – but a pretty solid deal.

As for the companion ticket, I was really pleased with this in that it was very easy to use. There were some taxes/fees that weren’t covered on the companion fare, which added $21 to the overall bill, but we got away with two tickets for $406. Not too shabby.

Adding it all up, we got three plane tickets worth $1155 for $427 out-of-pocket. Even after adding back in the $150 annual fee for the Platinum card, we ended up paying about half what these tickets would have otherwise cost us.

Sure, if we had a cash back reward card we could’ve put those rewards toward a flight, but we wouldn’t get the companion voucher, free baggage, enough bonus MQMs to upgrade my status, etc.

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It’s been awhile, but we’ve once again found ourselves in the crosshairs of a collection agency. Long-time readers might recall that we were contacted by a collection agency a few years ago in relation to a medical debt that wasn’t actually overdue. In fact, that collection notice arrived less than 30 days after the first bill was sent, and it crossed in the mail with our check to the payee.

This time around, we’ve found ourselves in trouble with a local medical facility, albeit a different one. Our oldest son visited the emergency room at the end of April and that visit cleared insurance in early May. The bill was supposedly in the mail shortly thereafter, but we never received it.

Around here, it’s standard practice to send a bill with a due date 30 days in the future, and then to send at least one, if not two (or even three) followup notices before sending a medical bill to collections. That would mean that we should have received a second bill in July (marked 0-30 days overdue) and another in August (marked 30-60 days overdue).

Instead, it appears that they sent us to collections in mid-July, about two weeks after the initial due date. That was it. No second notice or followup of any kind. Gee, thanks… A possible ding on the good old credit report thanks to a slightly late $20 charge that we never received.

Given that we hadn’t received any sort of documentation, I had to do some digging to figure out what this bill was related to. Fortunately, our health insurer has all of that information on line so I was able to look it and figure it out. From there, it was a matter of contacting the billing office.

Sure enough, she confirmed that they sent a single bill, and then turned us over to collections shortly after it was due. Great policy, huh? The good news is that she said we have 30 days to pay before it would be reported to the credit bureaus. I had the choice of paying them directly or going through the collection agency, and I opted to pay on the spot.

I’m now in the process of drafting a letter to the collection agency challenging the validity of the debt. This may be overkill, as it sounds like the billing office and collection agency are in fairly close contact, but now that the bill has been paid, I don’t want the collection agency hassling us or mistakenly trashing our credit.

As before, I’m keeping it short and sweet, simply stating that I’m writing to dispute the validity of this debt, and letting them know that it’s been paid and that we can provide proof of payment. As per the Fair Debt Collection Practices Act, they can’t contact us, attempt to collect, or report anything to the credit bureaus if they can’t validate the debt. And they won’t be able to because we’ve already paid it.

If you find yourself in a similar situation, be sure to follow up in a timely manner – within 30 days of the date on the collection notice at the very latest. And be sure to communicate in writing, via certified mail if at all possible. That way they can’t deny having heard from you.

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Have you ever been wronged by a credit card issuer? Did you wish you could complain to someone other than the customer service line? If so, then you’ll be happy to know that the Consumer Financial Protection Bureau (CFPB) has launched an online portal for submitting credit card complaints.

In case you’ve never heard of it, the CFPB is an independent bureau within the Federal Reserve System whose goal is to provide consumers with the information necessary to make sound financial decisions. It was created as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, and they’re working “to promote fairness and transparency for mortgages, credit cards, and other consumer financial products and services.”

In order to file a credit card complaint with the CFPB, you’ll be asked to describe the problem in your own words, choose a category for your complaint, let them know how much money (if any) that you lost, let them know what you’ve done to try to resolve the problem, describe what you think would be a fair resolution to the problem, and provide your contact and credit card info. When you’re finished, you’ll be assigned a tracking number.

From there, you’ll apparently be directed to contact the card issuer to resolve the problem. If that doesn’t work, you can contact the CFPB with your tracking number for additional action, which will include an investigation into whether or not the problem violates and laws or regulations. You can also use your tracking number to check on the status of the investigation.

In the future, the system will be upgraded to handle complaints related to other financial services, including bank accounts, mortgages, student loans, etc. In the long run, I would imagine that these consumer reports will also help the CFPB identify patterns of abuse and help them to proactively combat problems.

If you prefer to deal with your credit card problems offline, you can also call the CFPB (toll free) at 855-411-CFPB to lodge your complaint. Otherwise, feel free to click through and get started.

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It’s been awhile since I’ve posted a big list of credit card bonuses in one place, so… Note: given changes in offers, the total amount has dropped below $1,600. If you see any new offers appear, please list them in the comments. Here’s a list of five cards that will get you signup bonuses for credit card with rewards. In all but one case, there’s either no annual fee, or the fee is waived for the first year.

Yes, there are spending requirements, so you’ll have to plan ahead, but… There’s a ton of cash on the table if you’re willing to jump through some hoops.

Ready? Here we go…

Chase Freedom $100 Bonus (Click to Apply)

Signup bonus: $100 cash back
When: After $500 in purchases w/in first 3 months
Annual fee: None
Benefits: 5% cash back on up to $1,500 spent in rotating categories; 0% balance transfer

Capital One Venture Rewards Card $100 Bonus (Click to Apply)

Signup bonus: 10k miles (equal to $100 in travel)
When: After $1000 in purchases w/in first 3 months
Annual fee: $59, waived for first year
Benefits: Two miles per dollar on every purchase

Citi Thank You Premier Card $300 Bonus (Click to Apply)

Signup bonus: 30k points (can be redeemed for $300 in gift cards)
When: After $1500 in purchases w/in first 3 months
Annual fee: $125, waived for first year
Benefits: Earn 1 point for every $1 you spend on purchases

Chase Sapphire Card $250 Bonus (Click to Apply)

Signup bonus: 25k points (can be redeemed for $250)
When: After $3000 in purchases w/in first 3 months
Annual fee: None
Benefits: Earn 2 points per dollar spent on dining and 1 point per dollar spent on all other purchases

Chase Sapphire Preferred Card $500+ Bonus (Click to Apply)

Signup bonus: 50k points (can be redeemed for $500 or up to $625; details)
When: After $3000 in purchases w/in first 3 months
Annual fee: $95, waived for first year
Benefits: 2 points per dollar spent on travel and dining & 1 point per dollar spent on all other purchases

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It’s time for another credit card signup bonus… This time around, it’s from the Chase Freedom card. In short, if you apply for the card and spend $500 within the first three months, you’ll get 10k bonus points that can be redeemed for a $100 check.

This card, which has no annual fee, also offers a 0% balance transfer (with a 3% transfer fee) as well as 5% cash back on purchases in select (rotating) categories, and 1% cash back on everything else.

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This is a guest post from Lisa White.

They say there is never a better time to start a business than in a down economy. But if you’re like many others who’ve tried to get a loan or investor capital, you know that money for startups does not come easy.

Whether you are looking to help finance a new or existing business, there may be another option.

A number of small and even medium-sized businesses utilize credit cards to help finance their expenses. Although experts considered this practice ill-advised in the past, today many find it necessary to cover expenses like overhead, travel and entertainment.

If you have previously managed to avoid utilizing lines of credit for these purposes but are now considering it, there are a number of things to keep in mind.

Things to consider

For starters, if you are currently employed and considering starting a new business using business credit cards to finance expenses, then you should apply for the cards now. It will be far easier to obtain credit while employed in a regular job than if you don’t have a steady income.

Credit card financing works especially well for businesses with obvious busy and slow sales periods or short-term expenses. The ebb and flow of revenue will allow you to more easily pay off debt and keep spending in check.

Unexpected expenses are a given in business. Broken equipment, unexpected travel, and last minute client dinners can wreak havoc on your cash flow. Credit cards can be very helpful in the case of such “emergencies.”

Credit cards can also be very helpful if you are looking to keep track of expenses and segregate spending. By using a card, you’ll have an auto-generated, detailed listing of all transactions. In some cases you can even access a categorized expense report so it will be easy to keep a handle on entertainment, travel, office supplies, and other business-related expenses.

Be aware that by charging credit cards to their limit and paying the minimum amount required each month, you’re likely to get yourself in a hole that’s not easy to get out of. Not only can this limit your available credit, but your interest obligation will continue to grow. Moreover, late payments can also cause your APR to skyrocket. Be aware of the 0% balance transfer credit cards that are available in the event you need to change cards.

Obviously, it’s best not to utilize credit cards that accrue interest from the date of purchase due to high finance charges. Rather, seek cards where interest begins to accrue from the date the card’s payment is due. Even better, look for credit cards that provide interest-free financing, at least for awhile.

Not only should you try and stay away from high interest rates, but you also need to keep an eye out for rate and term changes.

Do your research. Read the credit card terms carefully, making sure you understand interest rates, payment requirements, fees and perks.

Keep in mind that credit card cash advances typically carry higher interest rates and should not be utilized to finance your business.

Not only is it important to monitor your own credit card spending, but you will also need to keep close track of usage by any employees who are authorized to use the account.

When to avoid credit cards

My advice is to avoid credit cards as the primary method of financing your business if there are other alternatives available, such as a line of credit from your financial institution, or even p2p lending from an outfit like Lending Club.

Those who are not financially responsible and have difficulty keeping spending in check should probably look extra hard for another method to finance their business expenses.

If you’ve determined that credit card financing for your business is the way to go, take into account that, no matter how many credit cards you plan to utilize, there will be a total cap of credit that will limit the amount you can access.

This is not free money. You will need to come up with the funds to pay all of the bills and, in some cases, will be paying more due to interest rates and fees.

Be prudent by creating a payment plan for business credit card bills from the get go. This will not only provide you with insight into how much money you can afford to spend, but also make you think more about where this money will come from.

Whether it’s personal or business-related, debt is debt, and it needs to be repaid eventually.

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This is a guest post from Hank Coleman.

Stay-at-home moms and dads may soon find it more of a challenge to get a credit card in their own name.

The Federal Reserve recently provided additional clarification of the Credit CARD Act of 2009, and issued new guidance to credit card companies that will make it almost impossible for non-working spouses to have their own credit card.

Credit card holder must have income

The new ruling requires credit card companies to look at individual income for people applying for individual credit cards. They are no longer allowed to consider total household income to issue credit. Now, stay-at-home spouses will not qualify for credit cards if they do not have specific income themselves.

Stay-at-home spouses will be required to build their own credit history and show proof of individual income when applying for a new credit card. The Federal Reserve issued the ruling in order to ensure that the person applying for a credit card actually has the means to pay the bill when it is due, thus reducing the likelihood of default.

New rules take effect in October

Credit card companies are required to begin complying with the new rule starting in October 2011, though some credit card companies have already begun implementing the policy.

If you’re a stay-at-home parent or spouse and you cook, clean, and care for the home while your significant other brings in the bacon, that may work perfectly well in practice. But in the world of consumer credit, your credit card company doesn’t care how much your home-making skills are worth. You can’t pay off a credit card bill by offering to watch some watch the credit card issuer’s kids, change their car’s oil, or prepare them a roast.

So as the new guidelines take effect, how can you build and maintain your own credit history if you don’t have a pay stub in your name?

Three ways a non-working spouse can get credit

Here are three ideas for how a non-working spouse can gain access to credit and build a solid credit history.

1. Apply for a joint credit card. If you’re a stay-at-home parent and your spouse or domestic partner is employed, you can get credit in your name if the two of you sign up for a joint credit card account. Credit card companies will use your combined income to determine if you qualify for credit. Keep in mind that both of you will be held equally liable for the debt. Of course, this can play havoc if you get divorced and half the debt becomes yours and you still have no income.
2. Consider a secured credit card. Stay-at-home parents can get a secured credit card in their name very easily. This may be one of the simplest and most efficient ways to establish your credit history. Secured credit cards are pre-loaded with cash that you send the credit card company, and your credit limit is restricted to the amount that you deposit.
3. Become an authorized user. Being an authorized user on your working spouse’s credit card can help you get access to credit. While the legal liability for any incurred debt resides with the cardholder, the account will in most cases appear on the authorized user’s credit report, thereby helping (or hurting, as the case may be) their credit score.

Once the new rules take effect, stay-at-home parents and non-working spouses will still have access to credit. That being said, the above workarounds fall short of having your own credit card with rewards in your name, and don’t provide the necessary means for those with no reportable income to obtain the best credit cards.

What do you think? Is the Federal Reserve going too far? Is it reasonable for credit card companies to require individual applicants to prove that they can pay their own credit card bills? Or, is using household income on a credit application sufficient? I’d love to hear your thoughts in the comment section.

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Back in March, I shared a killer deal from the Capital One Venture Card. In short, they were matching up to 100k of your miles if you applied for their card and spent $1k within the first three months. Throw in the 10k bonus miles for new cardholders, and that was the equivalent of (up to) a whopping $1100 signup bonus.

Unfortunately, that offer has since expired, but Cap One is offering a relatively generous bonus in its place. This time around, they’re offering 25,000 bonus miles in return for applying for the card and spending $1k in the first three months. Given that these “miles” can be traded in on a penny per point basis, that’s the equivalent of a $250 cash signup bonus.

There is a $59 annual fee, but it’s waived for the first year. Going forward, you’ll receive two miles for every dollar spent. Another nice aspect of this card is that there are no foreign transaction fees. Thus, if you’re a big traveler, you can save a nice chunk of money when using your card overseas.

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Around a month ago, I wrote about a generous $500+ bonus offering from the Chase Sapphire Preferred Card. Today I wanted to share another big bonus, this time from the Citi ThankYou Premier Card. It’s a pretty simple deal… Apply for the card and use it to spend $2k within three months and you’ll get 30k bonus ThankYou points.

Once you earn the bonus points, you can redeem them for a variety of ThankYou Rewards. If you’re looking for store gift cards, you’re best off looking at the high denomination cards, which have a better conversion rate ($0.01/point, which means 3 x $100 = $300 for 30k points).

Eligible stores include: Banana Republic, Barnes & Noble, Bath and Body Works, Bed Bath & Beyond, Cabela’s, CVS, Gap, Home Depot, Kohl’s, Land’s End, LL Bean, Lowe’s, Sears, Staples and Walmart.

I’ve never used Citi’s ThankYou Travel Center so I can’t comment on it, but I have used redeemed ThankYou Rewards for store gift cards with great success. As noted above, the key is to focus on the $100 cards, which can be had for 10k points each.

Other features of this card include 1.0 ThankYou points per dollar spent (1.2 ThankYou points per dollar spent at gas stations, supermarkets, drugstores, commuter transportation and parking merchants), no earning limits, your points never expire, earn points while you fly when you purchase the ticket with this card, an annual complimentary companion ticket for domestic travel, and no foreign transaction fees on purchases.

The downside is that the Citi ThankYou Premier card has a $125 annual fee, which is waived for the first year. That being said, you’re still getting $300-$400 in bonuses, and  as long as you’re putting at least $12.5K per year on the card, the ThankYou points will more than cover the annual fee after the first year.

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As a small business owner, I’ve debated whether a dedicated credit card for my company is the way to go.

Today, money is a lot harder to come by. Loans are more difficult to acquire and take longer to finalize. When used responsibly, company credit cards can provide small business owners with a method of payment during periods of slow cash flow.

I am aware that a “corporate” card would help me better track my company expenses, keep tabs on my spending, and even help me grow my business. I know that, with a card, I have the opportunity for rewards in the form of cash back, airline miles and other perks. I also realize that the availability of generous credit limits makes these cards both desirable and practical.

But my practical side reminds me that, especially for entrepreneurs small business credit card debt needs to be kept in check – no matter how attractive that low introductory rate might be.

Interestingly, more than two-thirds of small businesses use a credit card for expenses, though (according to the Tower Group) only 40% manage their finances exclusively with a business credit card. If you’re like me, and you regularly debate whether a dedicated business credit card is right for you, then you might want to consider these advantages:

• Expenditure tracking: It’s difficult enough remembering your expenses at the end of the quarter, but
  tracking all business spending for the year can be cumbersome and overwhelming. By making all of these purchases on a company card, you will have a detailed listing of every transaction, including the date, amount spent, and place of purchase.
• Future capital: By responsibly using a business credit card, you’re able to build credit for your company, which can be beneficial for future financing purposes, including securing loans and/or credit lines.
• Perks: Signing up for a card that offers cash back, airline miles, or other
  valuable rewards can help reduce overall expenses. However, it’s important to keep in mind that these can easily be offset by card fees and late payment penalties.

If you’ve decided that a business credit card is the way to go, there are several rules of thumb to consider.

First, check with your bank to see what types of credit cards it offers, if the approval process can be expedited, and if you can utilize the card or your bank for a loan or line of credit, if needed.

Although it is typically quite easy to receive multiple credit cards for your business and employees, if you are a sole proprietor or the only one making purchases, it is best to have one card so spending does not get out of hand.

You should also keep in mind that it’s important to keep your personal and business spending separate – both for financial reasons and for limiting your personal liability – so you should only use the card for company expenditures. At the same time, you should also avoid taking cash advances, and you should strive to pay off your balance in full and on time each month.

Because all credit cards offer different combinations of terms, fees, rewards, and credit limits, you’ll need to do your homework to find the best fit for you and your business.

Here are a few great offers to get started on your search:

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In case you haven’t heard, Citigroup got hacked, and the hackers made off with approximately 200,000 credit card numbers, cardholder names, and e-mail addresses. That’s the bad news. The good news is that they were unable to access Social Security numbers, birth dates, card security codes, or card expirations dates.

The other bit of good news is that Citi actually has 21 million North American credit card customers, so even if you have a card with them, it’s relatively unlikely that you were affected by this data breach. But what if you were affected? What next?

Well, if Citi’s response is anything like Chase’s response was when our credit card info was stolen when a merchant database got hacked awhile back, you’ll be hearing from them very soon. In our case, the Chase security division called us to check out our recent card activity and make sure there weren’t any fraudulent charges, and to let us know that our cards had been cancelled and that new ones were on the way.

As a side note, high profile security breaches like this are a prime opportunity for scammers to take advantage of unsuspecting customers. If you do get a call from someone that claims to work for Citi, beware and don’t give them any valuable information. In our experience dealing with Chase, they were careful not to ask for critical information – instead, they listed off charges and simply asked if we remembered making them.

In the mean time, I suggest that you spend a few minutes this weekend reviewing your account and looking for any suspicious activity. While there’s only about a 1% chance that your Citi card was compromised, it’s better to be safe than sorry. If you see any charges that you don’t recognize, call the number on the back of your credit card immediately.

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On the heels of last week’s 50k point signup bonus for the Chase Sapphire Preferred card, I wanted to point out another deal from Chase… This time around, you can get 25k bonus points from the Chase Sapphire card (i.e., the non-preferred version).

What’s the difference? Well, in this case, the bonus points are worth $250 vs. the $500 (or more) that you could get from the Preferred card, and you still have to spend $3k within three months to qualify. The primary advantage is that there is no annual fee associated with this offer vs. the $95 (waived for the first year) annual fee that accompanies the Preferred card.

All things considered, I would lean toward the Sapphire Preferred card with 50k bonus points, as it’s not that hard to remember cancel the card sometime in the next 12 months (before the annual fee hits) if you decide you don’t want to keep it. But if you’d prefer the Chase Sapphire card along with the 25k bonus points, then…

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Not quite two months ago, I wrote about a 25k point signup bonus from the Chase Sapphire Preferred card. Well, guess what? They’ve sweetened the deal, and are now offering a juicy 50k bonus points.

Once you earn the bonus, your 50k points can be redeemed for a $500 statement credit or use 20% fewer points when you redeem for travel for travel rewards worth up to $625. Just book your flight, cruise, or other travel through Ultimate Rewards(SM). If you airline tickets cost more, no problem – just pay the difference.

One of the huge strengths of this card is that there are no blackout dates or other travel restrictions. You’re free to use your points whenever and however you want.

To qualify, you need to apply for the card, get approved, and then spend at least $3k in the first three months. Note that this card has a $85 $95 annual fee, but it’s free for the first year. As far as ongoing rewards are concerned, you’ll earn one point for every dollar spent with no earnings cap, and your points will never expire.

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Did you know that the three major credit bureaus maintain a VIP list of people who get preferential treatment when it comes to fixing credit report errors? Neither did I but, according to the NY Times, it’s true.

This magical list apparently contains “celebrities, politicians, judges and other influential people,” and those on this list get special help from real people who investigate the problem and bring it to a quick resolution. As for the rest of us, we’re dumped into a largely automated system where overseas subcontractors distill our problem down into a three digit computer code and forward the complaint to the creditor.

While I’ve never had a problem correcting an error on my credit report, I’ve never had to deal with anything more than an old (closed) account that was still showing up as open and active. But others have dealt with more serious issues, and at times have had real trouble getting their problems addressed.

Consider, for example, the case of Judy Johnson from Louisiana. Poor Judy’s credit file was confused with that of the much-less-creditworthy Judith Johnson, who had a similar address and Social Security number. Judy has spent seven years trying to straighten out the mess, but it keeps cropping back up. She even sued one of the bureaus and received an undisclosed settlement, but the problems still persist.

For their part, TransUnion claims that all consumers “have the ability to speak to a live representative,” Equifax says that consumers who request a free credit report are given a customer service number, and Experian has denied the existence of a VIP list entirely. Nonetheless, the Times is sticking by their story.

What about you? Have you ever had trouble with errors on your credit report? If so, were they difficult to correct? Please share your stories in the comments section.

Source: NYTimes.com

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This is a guest post from Lisa White.

Heading to the checkout counter after a fruitful shopping spree, I was taken aback by the steep total shown on the register. Noting my dismay, the cashier asked me, “Would you like to save 10 percent today by opening a credit card with us?”

I’ve played this game before, going for the discount, getting the card and then dutifully either cutting it right up or storing it away in my nightstand drawer to resist the temptation to spend. But this time I wasn’t so sure I’d go for it, and here’s why.

Store credit card perks

If you are fiscally responsible, store credit cards can be beneficial. You can take advantage of the store’s promotions, discounts and other perks – provided you keep up with the payments and the card rewards that can save you money.

Store credit cards also can help boost your credit score and improve your credit history. Paying these monthly bills on time works to your advantage, and a long-standing account with no outstanding balances will be looked on favorably by the credit rating companies.

The best store credit cards are co-branded cards, meaning store cards that bear a Visa, MasterCard, Discover or American Express logo. This is because they can be used at any place that accepts major credit cards. And these cards often have reward programs where you can redeem points for cash, discounts on future purchases, or even airline tickets.

If you’re thinking, “Where do I sign up?”, you may want to take a closer look at the fine print.

Downsides aplenty

Store credit cards typically have higher interest rates. How much higher? According to CardRatings.com, the average store credit card interest rate is 24 percent. In contrast, regular credit cards have an average annual interest rate of less than 15 percent.

It’s also more likely that your store credit card will have low credit limits. This makes it easier to max out the card, which can lower your credit score. If you quickly max out the card and can’t pay it off right away, outstanding balances could become a red flag to other creditors, who may then increase your interest rate and lower your credit limits on other credit cards.

And did you know that, every time you apply for a new credit card, it automatically instigates a hard inquiry on your credit report? This also negatively impacts your credit score. Even if you’re like me and immediately cut up the card or throw it in a drawer and forget about it, the inquiry can stay on your credit report for up to two years. If you’re planning on taking out a major loan such as a mortgage, this can affect your loan eligibility and monthly payments.

What’s worse, even if you try closing a store account, it will remain on your credit report for seven years. That’s quite a long time for a high interest rate card with a low credit limit.

And if you’re one to spend to your limit, rather than cut up or put away the store card the day it arrives, you could be in for some very bad days when those bills start arriving and piling up.

The takeaway

Despite the kickers mentioned above, don’t be too quick to count these cards out. Consider opening a store credit card if you:

• pay off your credit card balances in full each month
• are financially responsible and don’t overspend
• have a cushion in a high yield savings account
• are looking to establish a credit history
• plan to take advantage of store discounts, point programs, and other perks

If you’re an impulsive shopper who has trouble paying off credit card bills in full each month, resist the urge to open a store credit card to save that 10 percent. In the long run, you’ll most likely eat that savings and end up spending more.

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I recently ran across an interesting article over on CardRatings.com about whether or not credit cards are addictive. The article highlighted a recent academic study by Marsha Richins of the University of Missouri that focused on the relationship between materialism and overspending.

The study was based on a survey of 400 consumers of various ages and income levels, and the central thesis was that “transformation expectations” – the idea that consumers expect products to have transformative powers on their life – are the mechanism through which materialism drives credit card abuse. Unfortunately, these transformations (assuming that they occur) are short-lived, leaving the consumer looking for another fix.

Richins was able to identify four major types of transformations that are especially prevalent in people with debt problems:

• Self improvement: Over-spenders often believe that their purchase will make them a better person – like the woman who thought cosmetic dental surgery would make her more confident and successful.
• Improved relationships: Over-spenders often believe that their purchase will make it easier for them to connect with others – like the man who thought installing a swimming pool would improve his relationship with his daughter.
• Sense of fun/adventure: Over-spenders often believe that their purchase will make them more fun and/or fulfilled – like the expectation of fun that might come from an ATV or boat purchase.
• Greater effectiveness: Over-spenders often believe that their purchase will make them more effective/efficient – like the idea that a new car will make you more self-reliant, or than an iPad will make you more efficient.

In other words, certain consumers (typically those with mountains of debt) have a tendency to think that the products make the person – as if a purchase will help to re-define you, or change your standing in society. This isn’t to say that the rest of the world doesn’t fall prey to these expectations. It’s just that these tendencies are far less prevalent in “average” consumers.

Richins also believes that people are “hard-wired” to want new things that promise to make your life better. She chalks this up to the fact that primitive people who had better tools were more likely to survive, and thus passed on an innate sense of attraction to things that make survival (or life in general) easier.

The good news is that most people realize (sooner or later) that, while some tools are important, others are a waste of money. Unfortunately, others don’t make that realization, and wind up on the hedonic treadmill.

So… The next time that you’re considering a purchase, stop and think. Ask yourself why you’re interested in making the purchase, and take a very critical look at your answer. Are you looking for a quick fix? Are you expectations too high? Or is this something that you truly want or need?

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On Friday, I shared an anecdote about a woman with (at least) 30 credit cards in her wallet, and I talked a bit about the cards that I carry in my wallet. I also asked you guys to share details about your situation, and the general consensus seemed to be that most of you carry somewhere between 2-4 credit cards.

There were, of course, several readers who don’t use credit cards at all, and I think that’s great. In personal finance, as in other areas of your life, it’s important to do what works for you. That being said, a reader named Dave left a comment that just left me shaking my head:

I do not have any credit cards because I do not spend more than I make. If I buy clothes with my debit card then it would cost me $100 bucks, but with a credit card it would cost me $100 plus $10 interest.

Based on the above, it seems that Dave doesn’t fully understand how credit cards work. Either that, or he was trying to be dramatic. Regardless, there are some important issues here, so let’s dig in…

For starters, I couldn’t agree more with the “spend less than you earn” mantra. Credit cards most definitely give you the opportunity to over-extend yourself, so you need to be careful. At the same time, however, just because you use a credit card doesn’t mean you’re living beyond your means.

As for me, I like using credit cards because: (1) they’re convenient, (2) they provide me with what is essentially an auto-generated spending report (the bill), and (3) assuming that you choose wisely, there are some fairly generous credit card reward programs out there. While you can capture #1 and (to a certain extent) #2 with a debit card, my experience has been that debit card rewards pale in comparison.

Another non-trivial concern with debit cards relates to fraud protection. While debit cards carry many of the same protections as credit cards, fraudulent activity typically results in an investigation before the questionable charges are eventually reversed, during which time your bank balance might be tied up. But I digress…

Of course, these benefits will be swamped out by interest charges if you don’t pay your balance in full every month. The answer here is simple – don’t carry a balance. Despite Dave’s concerns about paying more with credit, that’s only true if you don’t pay your bill in full and on time. Assuming that you have the money in the bank, you don’t have much to fear here.

But… Even if you’re not carrying a balance, it’s possible that you’re spending more than you might otherwise spend thanks to your credit cards. In fact, it’s been argued that the average credit card user spend more than those who use cash. And what good are 1-5% rewards if you’re spending 20% more thanks to that piece of plastic in your pocket?

If you’re a credit card user and you’re unsure about how they affect your behavior, then I suggest running an experiment. Closely track your spending for a month (or two or three) with a credit card in your wallet. Next, throw your credit cards in your sock drawer and repeat.

Did you spend more with your credit cards than without?* I’d be willing to bet that, in many cases, the will (over the long run) be fairly similar if you simply replace your credit card with a debit card. Sure, the transition to a debit card will help to reign in the most egregious over-spenders because they won’t have the necessary bank balance to support their spending, but it may not do as much for everyone else.

If you really want to modify your spending behavior, you might want to try banishing your cards entirely – including your debit card. In this case, I have little doubt that your spending will decline, primarily due to the huge inconvenience associated with navigating the modern world without plastic. If you lead an entirely local life, this might be an option for you. But if you shop online, travel, etc. then this probably isn’t an option.

As for me, I’m comfortable with our spending levels and unwilling to forego the convenience of carrying a card. On top of that, I’m confident that we have the discipline to keep our spending in check, so I’m not particularly concerned about the credit vs. debit debate when it comes to spending patterns.

Given the above, along with the differences in fraud protection (at least as it relates to your balance getting tied up while the charges get sorted out) and the availability of more generous reward programs, I’m not planning on ditching our credit cards anytime soon.

*Note: If you end up trying this experiment, please send me the details. I’d love to hear how it worked for you, and/or to share the results with other FCN readers.

Also, make sure you’re using the best credit card for your spending needs. Here are some great card deals to consider:

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While on a recent business trip, I witnessed something that made my jaw drop. I was standing at the hotel registration desk when I heard someone say “See, this is why I don’t need any more cards.” I turned to look and saw an older woman showing her pocketbook to two kids – possibly her grandchildren?

Anyway, I just got a quick look, but a conservative estimate would be that she was carrying at least thirty credit cards, though I’m pretty sure it was more. I was shocked. Who could possibly need (or want) that many credit cards? Sure, there might have been an ATM card or some debit cards mixed in, but still. Wow.

As for me, I regularly carry three credit cards:

• AmEx Platinum Delta SkyMiles Card
• Chase Freedom Visa Card
• Citi Dividend Platinum MasterCard

My primary cards are the AmEx SkyMiles card, backed up by the Chase Freedom in case I run into a merchant that doesn’t accept American Express. As for that Citi MasterCard, we have mostly kept that account open because Sam’s Club doesn’t accept Visa (or American Express).

I also have an American Express Blue Cash Rewards card that I used regularly before I got the SkyMiles card, though I don’t carry that one around with me.

I should note that I was tempted by the recent Capital One Venture Card offer of matching miles, the offer is good through May 13, 2011 but I had just redeemed about 70k miles and thus didn’t have enough miles to really benefit from the offer. Honestly, though, if I had more miles laying around, I’d probably have a Capital One Venture Card to go with the others.

What about you?

How many credit cards do you have? What’s the breakdown between open accounts and those that you actually use? Which are your favorites, and why?

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Earlier this month, I pointed out a 100k mile bonus for signing up for the Chase British Airways Visa Card. This is a pretty generous offer, in that you can immediately trade those miles for a pair of Transatlantic flights. But what if you don’t want to leave the country?

As it turns out, you can use British Airways miles to book reward travel on their domestic partner, American Airlines. In other words, you can use those bonus miles for up to four domestic tickets.

Here’s how it works: Go to the British Airways website and start looking for flights. When trying to book a reward flight, they will search for BA flights first, but will give you the option of including partner airlines if you search for domestic flights. Do so, and you’ll be able to book available “MileSAAver” fares in lower 48 for 25k BA miles + a $5 booking fee (or fewer miles plus a higher fee).

That’s it. To take advantage of this deal, apply for the card, get approved (= 50k miles) and spend $2500 within the first three months (= another 50k miles, for a total of 100k). Yes, there’s an annual fee of $95, but you also get a free companion voucher if you spend over $30k with your card in a year.

Hat tip to MyMoneyBlog for figuring this out.

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It was a typical evening in the mid 1980s, and I was working late at my job as an advertising copywriter in Chicago. Down the hall, a colleague named Mary, not many years out of college, was also toiling away in overtime. I could hear her in her office, humming, shuffling papers and twirling the dial on a desktop radio.

Suddenly there was a shriek, followed by footsteps briskly toward my office. “Jeff! Did you know about this? I just heard on the radio they’re bringing out a new credit card. You get cash back for purchases by using the card!”

Yes, it was the unveiling of the Discover Card (“The card that pays you back,” as the oft-heard promotions promised), and with it a new era of earning points toward purchases simply by flashing your card.

This was big news to Mary, who dove into a chair in my office and explained she’d had a long history of using – and overusing – credit cards.

Credit card debt built up

While in college, she related, she’d built up tens of thousands of dollars in credit card debt that later had to be settled by selling off stock bequeathed her by her grandmother. Why, I asked her, had she piled up such enormous sums of credit card debt as a student? Didn’t she think she’d have to pay it off?

“Well, you know, in college I was really popular, and I dated a lot.”

Yeah … ?

“Well, I dated a lot of guys who were pre-med and pre-law.”

And your point is?

“See, I figured I’d wind up getting engaged to one of them, we’d get married, he’d get a six-figure job and he’d just pay off all my credit card bills.”

The Goof’s Guide to Money

Why recall that conversation a quarter century later? Because it may have been the moment I began cataloging the daffy approach to spending so many Americans embrace. Call it The Goof’s Guide to Money Management.

Spend a little time watching, and on any given day you can see folks in little ways, big ways, and every way in between – many using credit cards as toys rather than tools – making the Goof’s Guide their personal fiscal Bible.

See the guy throttling past you on a city street, racing past $4-a-gallon-for-regular gas signs, so he can throw on the brakes and skid 200 feet to a stop at a red light? That’s goofy. How about the packs of folks wedging themselves in the doors of the local coffee house trying to beat each other to $5 cups of frothy hot liquids they could concoct themselves for 23 cents? That’s goofy.

And how ’bout the gal loading up at the mini-mart on junk food, lottery tickets, and cigarettes? That’s goofy, goofy, and goofy again.

That so many gain guidance from the guide is witnessed in the sprouting of casinos, the lines of folks itching to buy a new phone sure to be obsolete next month, and the tendency to start saving four decades after the start of earning.

No wonder credit card debt is so high

Multiply by the tens of millions who apparently use the Goof’s Guide as an indispensable reference wherever they go, and it’s no wonder that (according to IndexCreditCards.com) average credit card debt per household that carries a balance is $9,858.

And what of Mary, my colleague once so sure she would wed a doctor who would cure all her credit card ills? Later, a few of our colleagues and I were guests at her wedding, watching her walk down the aisle to a groom who eked out a meager living as an entry-level chef. Sooner or later, we all have to come to grips with our goofy, goofy ways – cash back on purchases or not.

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This is a guest post from Jim Sloan.

If your mailbox is filling up these days with zero percent balance transfer offers and other goodies from credit card companies, consider yourself among the elite.

Credit card companies, stung by new federal regulations that are preventing them from making money through punitive interest rate increases and penalty fees, are redoubling their efforts to court only the best customers with the best credit cards… The ones who don’t mind paying fees for services now and then.

According to the Associated Press, consumers who have excellent credit scores – earned by paying their bills on time and keeping their credit card balances a fair distance from their credit card limits – are receiving two out of every three mailers sent out with offers for such things as zero-percent-APR credit cards and no-fee balance transfer offers. Before the recession, these so-called A-list spenders received less than half of the offers.

Is this a dubious advantage of being wealthy? Some of the things the credit card companies are doing to lure this elite group include:

• Zero percent interest for up to a year on new purchases and no interest for up to 18 months on balance transfer credit cards
• Accelerated rewards
• Waived annual fees for maintaining a certain balance – in the case of one Bank of America premium card, the required balance is $50,000
• A free companion ticket once a year when you purchase airline tickets. This offer is from Citi’s new ThankYou Prestige card, which carries an annual fee of $500
• No foreign transaction fees, such as in offers from American Express, Chase and Citi

Why all the interest in the wealthy?

Credit card companies still have bitter memories of 2009, when they had to write off more than $8 billion in unpaid credit card debt. This has prompted them to reduce the amount of credit available to their customers. According to the Associated Press, the industry has cut its overall credit line to $1.5 trillion – about a third less than what it offered in 2007.

That $8 billion write-off has also convinced them to make those of us with fair to middling credit scores pay for it. We B-listers have our finances more or less under control, but we make an occasional late payment and frankly we’re not big spenders. We can still get credit cards and do a credit card balance transfer, but we should expect higher interest rates and annual fees.

According to The Grand Rapids Press in Michigan, even the best credit cards offered to second-tier cardholders come with annual fees of $39 to $59 a year. Last year, we weren’t being asked to pay any annual fees. Bank of America recently slammed members of this group – particularly those who carried a balance close to their card limits or who had been late a few times – with a new $59 annual fee. If you didn’t have any other accounts with Bank of America, such as a mortgage or a savings account, you also got a letter about the new fee.

Life under the new law

But wait a minute. Isn’t there a law about randomly imposing new fees?

The Credit Card Accountability, Responsibility and Disclosure Act, or CARD Act, prevents companies from raising rates on existing balances, bumping the interest rate on your card during the first year, and charging more than $25 in penalties when you make a late payment.

These kinds of now-banned acts are what made the second-tier cardholders somewhat profitable for credit card companies, even with that walloping write-off.

But with those revenue streams now pinched off, the card companies are just, well, raising fees and raising interest rates. The average interest rates being offered to second-tier consumers is 22.57 percent, up from 19.07 percent just a year ago. The new law didn’t say credit card companies couldn’t raise rates. It just said they had to be more open about it.

And some banks are offering cards that reward customers who pay on time with reduced interest rates. For instance, TD Bank, a New Jersey unit of Toronto-Dominion Bank, gives customers a 50-percent reduction in their interest-rate-based finance charge when they pay at least 10 percent of their outstanding balance. And Capital One has a card that offers 1-percent cash back on purchases when the customer pays on time. The card is marketed to college students and typically carries a low credit limit.

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It looks like the airline credit card space is starting to heat up. Joining the recently-expired Capital One matching miles offer and the ongoing Chase Sapphire Preferred 25k point signup bonus, we now have a 100k mile signup bonus from the British Airways Chase Visa card.

Here’s the deal: Simply apply for the card (and get approved) and you’ll get a signup bonus of 50k miles. From there, spend $2500 in the first three months and you’ll get an additional 50k bonus miles, for a total of 100k miles. Taken together, that’s enough for two free trans-Atlantic flights.

You’ll also receive 1.25 miles per dollar spent (2.5 miles on British Airways purchases) on an ongoing basis with no limit on the number of miles that you can earn. While there is a $95 annual fee, you’ll earn a free companion travel voucher if you spend over $30k with your card in a year.

Another nice feature of this card is that it has no foreign transaction fee, making it an excellent choice for overseas travelers.

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Congratulations! You’ve just ordered a copy of your credit report and are well on your way to improving your score. Do you know what red flags to look on your report to keep your score safe? Today, I’ll review five things that shouldn’t escape your attention, and why it’s important to pursue a correction as soon as possible.

1. Accounts you don’t recognize

Most people are aware of how many credit accounts they have open. If you see a credit account that you don’t recall opening, however, it is something to take very seriously. Whether it’s a new credit card, a store charge account, or an inquiry for an apartment lease, you will need to take action right away.

2. Numbers that don’t add up

Credit limits can change, giving account owners a surprise if they aren’t familiar with new account terms or a recent adjustment in their borrowing power. If a loan or credit account limit seems way off, however, it’s necessary to investigate further. I also recommend that you keep a careful eye on each month’s statement so that you can quickly recall an estimated balance when you need to.

3. Employment inconsistencies

Social Security fraud and identity theft are fairly common occurrences, and a diligent review of your credit report is one of the best ways to ensure that you are not a victim. Carefully scan the employment history detailed on your report each and every time you request it. If a company or employer that you haven’t worked for appears, it’s time to make some inquiries into the matter.

4. Duplicate accounts

Once in a while, an error may be made that may cause a legitimate credit account to be listed more than one time on your report. These are fairly easy to catch, as they will appear identical. The problem is that they will contribute to the total debt owed and number of active accounts. Fixing these errors is straightforward, though it may take some time.

5. Ancient history

Negative marks on your credit history shouldn’t hang around forever. In fact, most negative information should fall off your report after seven years, giving you a fresh start to work with. If you see late payments, delinquent accounts, or collection activity after the time they should have been removed, you should follow up with the reporting agency.

Keeping your report accurate

These five errors aren’t the only things that can go wrong with your credit history. If you see anything else that concerns you, like inaccuracies, or confusing information, it’s in your best interest to dig a bit further for additional information.

Once you determine that a mistake has been made, the credit bureau will have a process in place to dispute and resolve errors. While it will take some time, the sooner you take action, the sooner you can clean up the mess.

About the author: Linsey Knerl is a staff writer for CreditScore.net. She’s written extensively about personal finance topics, while raising five home-schooled children on a farm. You can follow Linsey on Twitter @lknerl.

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I applied for the Capital One Venture Card back when you first talked about their “matching miles” promotion. I got the card, spent $1000, and have already received the 100k in matching miles. Thanks!

He also sent a screenshot as proof. In the interest of space and privacy, I’ve trimmed it down to just the relevant part and blacked out his partial account number.

As you can see, he now has a mileage balance of a little more than 112k miles. I didn’t ask, but I believe that the excess miles (over the 100k) include the 10k signup bonus for new customers as well as the miles he has earned for his spending thus far.

In case you missed it when I first talked about it, Capital One is offering to match the mileage balance from your existing frequent flyer credit card up to 100k miles. All you have to do is submit proof of your mileage balance and then spend $1k with your new Venture card in the first three months. This offer is good through May 13, 2011 but the mileage match is limited to a cumulative total of one billion miles.

Going forward, you earn 2 “miles” for every dollar spent, and you can redeem them on penny per point basis for airfare, hotels, or car rentals – or you can trade them in for gift cards or cash back.

At a value of $0.01/mile, this promo is worth up to $1100 in bonuses, and Jason was able to get the full amount. Not too shabby for a single credit card application. And yes, you get to keep your existing miles in your other account.

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As for using Serve, you can move money into your account from a bank account, debit card, or credit card, and money can also be transferred between Serve accounts. You can use your Serve account to send/receive money amongst friends, pay bills, make online purchases, etc. You will also receive a re-loadable, pre-paid card that is linked to your account for offline use at any merchant or ATM that accepts American Express cards.

There are apparently no fees for transactions between Serve users, but there are some other fees that you’ll want to know about. For starters, there’s a 2.9% + $0.30 fee to load your account with a credit, though that discounted to 0% for cash, debit, and ACH transactions. There is also a $2.00 fee for ATM cash withdrawals. Note that all fees are waived for the first six months*.

*Note: It has not escaped my attention that you might be able to use Serve to generate credit card rewards and/or break through cash back tiers, at least until the fees for funding your account with a credit card kick in.

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If you didn’t have enough miles to make the Capital One Venture Card mileage-matching offer worthwhile, here’s another one that might be of interest to you…

The Chase Sapphire Preferred card is offering a signup bonus of 50k points. You can redeem these points for $625 toward airfare or hotel accommodations. Use 20% fewer points when you redeem for travel just book your flight, cruise, or other travel through Ultimate Rewards(SM). If you want a more expensive ticket, no problem – just pay the difference.

To qualify, you need to apply for the card, get approved, and then spend at least $3k in the first three months. Note that this card has an $95 annual fee, but it’s waived for the first year. As far as ongoing rewards are concerned, you’ll earn two points per dollar spent on travel and dining and one point per dollar spent on all other purchases.

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This is just a quick followup to the Capital One Venture Card offer that I mentioned last week. In case you missed it, Capital One is matching your the mileage balance from your existing frequent flyer credit card up to 100k miles. All you have to do is submit proof of your mileage balance and then spend $1k with your new Venture card in the first three months. This offer is good through May 13, 2011 and the mileage match is limited to a cumulative total of one billion miles.

Earlier today, a reader e-mailed me with the following question:

I have more than 100,000 miles with the AmEx Delta SkyMiles card. Do I keep those and get an additional 100,000 miles in my Venture card account? Or do the AmEx miles somehow get transferred to Venture to become 200,000?

This is a great question, and Capital One actually addressed it in their FAQs:

What happens to my existing airline credit card miles? Nothing. They’re still yours, we’re only matching them. Your existing miles are not affected by this promotion. We’re confident that you’ll want to stick with Venture once you experience the great features and benefits, like double miles on every purchase, every day.

In other words, there’s no real risk to this offer… You keep your existing miles, plus you get a matching amount in your Venture card account. Not only that, but new Capital One customers also get an additional signup bonus of 10k miles.

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