Can You Stop Paying Closed Credit Card Accounts?

By: Christina

09/21/2011

In the last year all my credit cards (3) have been closed on me, and I don’t know why, I have always paid on time. Now I am paying on closed accounts, and I would like to know what will happen if I stop paying them? Thank you. – Anette

Dear Anette,

Unfortunately, many credit card companies have closed card accounts recently; some without any notification. Imagine dining in a restaurant or taking a trip and finding out your card is canceled right when you are trying to pay. It can be an embarrassing situation that sometimes creates panic. You may wonder: Was my card stolen? Did I do something wrong?

According to Equal Credit Opportunity by the Federal Trade Commission, you are entitled to notification why the account was closed, unless the account was inactive or you defaulted in some way with the card.

Risky Accounts

Creditors are increasingly keeping an eye on cardholders who may become unemployed, may not be able to pay their bills, or may file bankruptcy. There are a number of red flags that could make the creditor think your account is a high risk account. Some of these include, a large number of credit card applications, maxed out accounts, and late payments. Excessive cash advances, going over your limit or bouncing checks are additional indicators of high risk accounts.

Inactivity

One of the most popular reasons for a creditor to suddenly cancel a credit card is inactivity. If you have been paying your bills on time and haven’t had any problems with your accounts, your accounts may have been closed due to inactivity. Apparently, if you do not use your cards, it is also perceived as risky because the cards are open to fraud and theft, which can result in a potentially large liability to the creditor.

Drop in Credit Score

A sudden drop in your credit score could indicate a few things such as job loss, late or missed payments, or some other issue that affects a person’s ability to make the credit card payments. Credit card companies are on the lookout for accounts that could end up in trouble. Many lending companies prefer to just close the account instead of taking the risk.

To answer the second part of your question, you do still need to make your payments according to the credit card agreement, even if the account is closed. If you default and do not make your payments, the same things will occur that would occur if the accounts were open and you failed to make your minimum monthly payment on the card. Eventually, the creditor will attempt to collect and the account will end up in collections, which is going to harm your credit score more than your accounts being closed.

If you have other credit cards, (especially if the closed cards were canceled due to inactivity) you may want to try transferring the balances to the open accounts; preferably during a 0% balance transfer phase. If your credit is not damaged, I would also suggest trying to acquire a card that includes an introductory APR to transfer the balances from the closed accounts to. However, regardless of the strategy you decide upon, you will still need to continue making your payments and pay off the cards. The sooner you pay them off, the better; and less time spent worrying about a closed account.

If you do not have the option of transferring the balance to either a new card or an open card, or if you have had anything on your report that has affected it negatively, call the card company. There is a good chance that the APR may have increased or the credit limit lowered to right above the amount that you owe. It would be in your best interest in this case to attempt setting up a payment plan with a lower APR and then if you are able to, pay it off as soon as possible.

FICO recommends that consumers continue to make their payments on time, keep balances on revolving accounts low, and only apply and acquire new credit when necessary. In order to avoid cards being cancelled due to inactivity, use your cards – even if it is only on a small purchase that you pay off right away. If the card hasn’t been used in a year, you may be at risk for cancellation.

Bank Overview: American Express, Part 2

By: Jason Steele

09/19/2011

Yesterday, as part of a continuing series analyzing consumer credit and charge cards offered by the major banks, I began looking at American Express’s products including their premium rewards charge cards and their regular credit card line. Today, I will be looking at airline, hotel, and other partner cards.

American Express Airline Cards

American Express has very close ties with Delta airlines. They offer five different co-branded credit cards. Their plain SkyMiles card and SkyMiles Options cards are at the bottom end of the spectrum to say the least. These embarrassing products only earn 5,000 and 1,000 sign up bonus miles and are not even shown on American Express’s web site, only Delta’s. They come with no features or perks other than the ability to earn SkyMiles. The ultra low end Options card, the one with a trivial 1,000 mile sign up bonus, offers 1 SkyMile per dollar on Delta tickets only, with one mile for ever two dollars spent on all other purchases. The only thing it has going for it is that it has no annual fee. The SkyMiles Options card offers the standard one mile per dollar on most purchases and two miles per dollar on purchases from Delta, although it has a $55 annual fee. The next step up in SkyMiles cards is the Gold card. It offers priority boarding, checked bag fee waivers, and discounted entrance to SkyClubs. A nice feature is the $99 companion certificate and a $95 annual fee. The Platinum card is similar, but the companion ticket is free and there is the opportunity to earn elite qualifying miles and the annual fee is $150. The top of the line Reserverd offers more elite miles, SkyClub membership, and upgrade priority over non-Reserve card holders.

In addition to Delta, Amex also offers a card from discount carrier JetBlue that earns TrueBlue points. Cardmembers earn two points per dollar on purchases from JetBlue and one point per dollar elsewhere. There is a $40 annual fee for this card.

Hotel Cards

Amex offers two Hilton cards and a card from Starwood hotels. The standard Hilton HHonors card and the Hilton Surpass cards offer six points per dollar at Hiltons and three points per dollar elsewhere. The surpass card comes with a much higher sign up bonus and a few extra perks to justify its annual fee of $75, while the standard card has none.

The Starwood card is the real standout, not just as American Express cards go, but in the market for hotel cards and credit cards in general. It offers one point per dollar on most purchases and 4 to 5 points per dollar at Starwood hotels. The real value here is in the incredible versatility of Starwood points. They can be used for free nights with no blackout dates or capacity controls, giving you last room availability. When you redeem four nights, your fifth night is free, increasing your points value by 25%. There is also the option to redeem points for airline miles in the programs of 20 different carriers. Like the hotel redemptions, cardholders can see more value by redeeming a large number of points at once since 20,000 points returns a 5,000 point bonus. Super frequent flier mile gurus, like me, hoard Starwood points for hotel stays at expensive destinations, and to redeem awards on airlines around the world. It can be a lifesaver when you need to top off an account to reach a certain award level.There is a $65 annual fee for this card that is waived the first year.

Mercedes-Benz Cards

Amex just introduced two cards co branded with Mercedes-Benz. The first is a credit card that earns membership rewards points; 5 points per dollar for purchases at Mercedes dealers, 3 points per dollar at gas stations, double points at restaurants, and one point elsewhere. This is a pretty good deal in itself for a $95 annual fee. There is also a $500 certificate towards the purchase or lease of a new car, 1,000 excess miles forgiven on a lease, and a $50 credit towards Mercedes accessories. They also offer a Platinum card that is similar to their feature packed Platinum. It only offers 5 points per dollar at Mercedes dealerships and one point elsewhere, but they do double all of the Mercedes specific perks. This is otherwise an Amex Platinum card with all of the incredible benefits it offers, as well as a super high annual fee of $475.

Conclusions

Amex offers some fantastic deals among its proprietary and co-branded cards. All of their cards earn rewards, and they all feature American Expresses famous service. For just about all people, there is an American Express card that will meet your needs.

Bank Overview: American Express, Part 1

By: Jason Steele

09/16/2011

In my continuing series on cards offered by each bank, I will begin my overview of American Express today.

Premium Rewards Charge Cards

Many of American Express’s products are not actually credit cards, they are charge cards. With these products, you are agreeing to pay your entire balance in full and on time each month. To do otherwise would make your account delinquent and customers would owe interest at a penalty APR. The entry level card they offer is the Zync card. It is targeted at young adults with various options, called Packs, to earn rewards based on individual spending habits. There is only a $25 annual fee for this card, and holders will earn Membership Rewards points, but they are only part of a limited program called Membership Rewards Express. The next card up is the iconic Green card. For a $95 annual fee, waived the first year, cardholders can earn Membership Rewards points for each purchase, with double points for travel purchases made through Amex’s web site. Next up is the American Express Gold card And Premier Rewards Gold card. These regular Gold card is quite similar to the Green card, while the Premier Rewards version offers triple points for airfare an double points on gas and groceries. The annual fee for these cards is $95 and $125 respectively, but they are usually waived the first year. At the top of the line is the Amex Platinum card which just goes overboard with benefits. Travel protections, purchase insurance, and airport lounge clubs are just the start. Members receive a $200 airline fee credit and a $100 credit towards the Global Entry program for customs and border patrol. The one benefit which has the most potential value is a free companion ticket for premium international travel. The tickets have to be booked through Amex and must be full fare, unrestricted tickets. Since these can cost thousands, you can see how this can be a major perk.

Credit Card Products

In addition to their charge cards, Amex also offers a range of credit card products. There are five different cards in the Blue line as well as a Clear card. The standard Blue card has no annual fee and returns a reward point for each dollar spent and double points for travel booked through American Express’s web site. They also offer a Blue Cash Everyday card that earns one percent cash back on most purchases, with 2% on gas stations and at department stores, and 3% at grocery stores. This card has no annual fee. For a $75 annual fee, customers can choose the Blue Sky Preferred card. It offers 6% cash back at supermarkets and 3% cash back at gas stations and department stores, along with the standard 1% cash back on most purchases.

They also offer the Blue Sky and Blue Sky Preferred cards. Both earn a reward point for each dollar spent, and neither has an annual fee, but the Preferred card offers the chance to earn additional points by booking travel through Amex’s agent. Finally, the Clear card is another no annual fee card that offers a simple 1% cash back on all purchases.

In the next installment of this series, I will examine their branded cards.

Bank Overview: Discover

By: Jason Steele

09/15/2011

Discover traces its history back to the mid-eighties when it was created by Sears, the then large retailer. Today, Discover still enjoys a large following of users who enjoy products with decent rewards. As part of a continuing series comparing the cards offered by the major banks, I am analyzing all of the Discover cards on the market for consumers.

Cash Back Cards

Discover offers several different cash back products aimed at the general market. It’s Discover More card is one of these products that offers the standard 1% cash back on most purchases, and additional cash back on purchases from specific categories of merchants that change each quarter. In this case, the reward is a handsome 5%, if you are into playing the whole rewards merry-go-round game. The Discover Open Road card offers the same 1% cash back on most purchases, but then double cash back at restaurants and gas stations each month, but only for the first $250 of spending, for a whopping $5 cash back. Their Motiva is also big on the gimmicky rewards. It offers a 5% decrease in interest charges if you are nice enough to pay your bill on time, plus 1% cash back on all purchases. Just what we need, a reward for spending and a reward for paying interest. The Discover Student More card is very similar to the regular More card, but it is aimed at students. For those imagining that the quarterly bonus categories for students will be for things like pizza delivery and keg purchases, you will disappointed to find out that the bonuses are the same for both cards, and the only difference appears to to be the name. Fortunately, there are no annual fees for these cards.

Discover also offers two products that they describe as Miles cards. Miles by Discover earns one “Mile” for each dollar spent, with double miles for travel and restaurant purchases. The “Miles” are simply redeemed for one cent each towards travel booked through Discover. This is a pretty good reward rate and this card appears to be comparable in many ways to the Capital One Venture Rewards card. Unlike most Discover cards, it does have a %60 annual fee. Unlike the Capital One cards, there is a foreign transaction fee though.

Other Things To Think About With Discover

Frankly, Discover just doesn’t have as many merchants as Visa, Mastercard, or even American Express. In some places, the difference is negligible, while in other parts of the country, it is harder to find merchants who will accept this card. Where cardholders really run into trouble is overseas where there are few countries where Discover has gained acceptance.

Conclusions

Discover has a solid line of products, but most of them are riddled with odd terms that sometimes make little sense. Their Escape card is, by far, their most competitive rewards product. Like the Capital One Venture Rewards card, it can deliver the equivalent of 2% cash back, so long as you use the fake miles for statement credits against any travel related expense. The down side is, especially for travelers, the decreased acceptance and foreign transaction fees. If you haven’t already discovered Discover, there is little other incentive for you to do so.

Wither Disposable Credit Card Numbers

By: Jason Steele

09/14/2011

Have you ever heard of disposable credit card numbers? The idea is that a single number is generated for cardholders to use for a one time transaction. The theory is that once the number is used to process a single transaction, it becomes invalid. In this way, customers are protected from data breaches by the merchants.

What Is Right And Wrong With This Theory

I have never used a disposable credit card number, but I have spent some time considering them. First, the claimed threat of a security breach is hardly a concern. So long as card holders report any fraudulent charges, they are immediately removed from their account. In effect the only one’s at risk of fraud are the banks, not their customers. The worst part of this kind of fraud is the hassle, which involves contacting your bank and possibly having a new card issued.

What consumers are more legitimately concerned about is the prospect that an merchant will slip something into an agreement that can allow them to charge your card repeatedly. They are not supposed to be able to do this without your authorization, but some companies have become experts in manufacturing such authorization out of microscopic fragments of small type. Worse, many have been able to convince banks to uphold these charges in the event the cardholder pushes back and issues a chargeback. In these cases, I can see the real need for a one-time use credit card number. For example, Paypal comes to mind as a company that nobody seems to trust. When a transaction goes bad, Paypal likes to ding people’s credit card accounts. Rental car agencies, with their propensity for finding hidden damage months after a car has been returned, would also be excellent candidates. Unfortunately they require you to present your card when you rent, even on a prepaid reservation. Remember, these disposable cards are only usable for online and telephone transactions, not face to face situations when you have to present your card.

Of course, there were problems with this strategy. There were reports that charges sometimes went though over the maximum limit for a number or beyond the expiration date. Other times, people used them for online transactions where they were later asked to show the card, such as airline or movie tickets. All in all, it sounds like banks had some headaches with this system.

Disposable Numbers Are Dying

American Express was the first issuer to announce this system back in 2000, but they have since discontinued it. Discover has also announced just recently that they will end this program as well, presumably do to the high cost of numbers or something. That leaves Bank of America and Citi as the remaining providers of this service.

Even though I don’t use it, I think that it is too bad. This is an innovative feature that has some distinct uses. I know of lots of shady merchants who I would like to avoid the possibility having to fight them over a charge I didn’t authorize. There is a lot of innovation left in the credit card business, but no there is just one less feature on some cards.

Bank Overview: Citi, Part 2

By: Jason Steele

09/13/2011

As part of a continuing series on credit card issuing banks, today I am providing an overview of Citi’s airline and hotel affiliated credit cards. Yesterday, I covered their proprietary offerings, including both reward and non-rewards cards.

Citi’s Co-Branded Hotel and Airline Cards

Citi offers its Citi Hilton HHonors Visa Signature Card. This is an odd card in that the Hilton program seems to function with twice the points of other hotel and credit card loyalty systems. For example, each dollar spent earns two points in the HHonors program, with three points earned for purchases at supermarkets, drugstores, and gas stations. Six points are earned when spending money at Hilton properties. Cardholders are granted HHonors Silver status. There is no annual fee for this card. Other than redeeming points for hotel stays, Hilton points are generally worth less than a half a cent each, making this a somewhat poor card for most users except for those who frequently stay at Hiltons. Their one bright spot is that, like Starwood, their rooms are available with no blackout dates or capacity restrictions; if there is an empty room for sale, you can redeem your points to stay in it. Another oddity of this program is that Citi is not the exclusive credit card partner of Hilton hotels as American Express also offers co-branded products.

Citi is also the credit card partner for American Airlines and they currently offer four different cards aimed at consumers. They offer a standard and a “Select” card that both use the American Express transaction network, but are not issued by America Express. The standard card has a $50 annual fee that is waived the first year. Users earn one mile per dollar spent on all purchases. Cardholders are also eligible to redeem their miles for reduced mileage awards to destinations that change every quarter. The Select version of this card appears to be identical, but offering a higher annual fee of $85 and a higher sign up bonus. At the moment, the bonuses are 20,000 miles and 30,000 miles, although these can change at a moment’s notice. The standard card is also offered in a Visa version with identical terms and conditions.

Citi Recently announced the addition of the Executive AAdvantage Elite MasterCard. This product competes with other premium co-branded credit cards offered by airlines such as Delta and United. The idea is that users receive lounge club access as well as most of the perks normally reserved for elite status members. Holders of this card receive Elite qualifying miles and check baggage waivers along with priority check-in, airport screening, and boarding. Like many new premium travel cards, there are no foreign transaction fees for purchases processed outside of the United States. All these premium perks come with a premium price of a $450 annual fee that is not waived the first year.

Finally, no discussion of American Airlines frequent flier program would be complete without noting that this system is unique in a crucial way. In my experience, no domestic carrier can match American’s outstanding award availability and flexibility. For example, I recently booked a first class domestic award flight for three people at the lowest mileage level. This feat by itself is practically unheard of on other legacy carriers. I then was able to change the award to the next day, and there were still seats available! What more, there were no change fees necessary, just a brief, polite phone call. While other carriers might not charge a fee to change an award booking for their elite members, I have no status with American.

Conclusions

Citi’s hotel and airline affiliated rewards cards are only as valuable as the programs they earn points and miles with. With Hilton, these points are only valuable for free night awards, and not much else. When it comes to American Airlines, cardmembers can earn some of the most valuable frequent flier miles due to the continued excellence of American’s program.

Why do credit card companies offer no caps on points earnings?

By: patton

You have to think of a credit card as a way for someone else to make money off your purchases. If you’re paying off the balance every month, they aren’t doing too hot. If you aren’t using the card too much, they aren’t making much money. So, they have to find ways to keep you involved in the use of the card. One way to do that is to use rewards programs. However, not all are the same.

#1 — First off, what is “no cap?”

No caps on points earnings means that you can earn as many points as you want on the card that you are using. It’s a very smart advertising tactic. I mean, if you can just earn and earn, then you can plan to use the points on certain things that you really want to save up for.

However, there are a couple things to consider. First, you might have a hard time using those points, there may be restrictions on the points and their usage, or there may be some ways that you are simply not allowed to use the points.

If you think of travel rewards, many cards have blackout dates and restrictions that keep you from using the points. You might forget enough times that you keep spending and the company keeps making more money. You might also not be able to use too many of them at one time. This will keep you using the card, and it will make it hard for you to use them all at once (thus making the payoff easier for them to stomach.)

#2 — They expire too

Not all points expire on all cards, but they DO expire for some cards. That’s just the way that it is. You have to read the fine print and find out if there is an expiration date on your points. There may be expiration dates on certain points and not on others. It takes some research on your part to make sure you know the terms of the card. That’s kind of a huge deal.

#3 — Sometimes they don’t

There are cards that have no caps and no expiration dates. That’s REALLY good, but then you have to go back to point #1. There are probably restrictions on the points. So, the company has a much easier time handling dealing out all those points or paying their affiliates for the points you use.

You have to be smart about this and not easily be lured in by “no caps and no restrictions.” Don’t believe that until you read it in the fine print or you have a person tell you that over the phone or submit it to you in writing. That might sound kind of intense, but it’s either that or being disappointed that you didn’t get what you thought you would get.

#4 — What are restrictions?

Restrictions are anything that makes it harder for you to use the points you have. In some cases it is a limit on the amount of money you can save on something. Sometimes, it is a blackout date for travel, or it is a limit that you can only use regional air carriers as opposed to the major carriers. You might even find that you can only use your points on certain items in a company’s “marketplace.” You could see a huge catalog, but you’ll only be able to get a fraction of that stuff.

You could easily end up in a position where you have tons of points that you literally can do nothing with. They become useless, you write off the program, and then you end up not enjoying the benefits of the card. Now you’re just paying interest to the company for nothing.

#5 — What do you do to make sure you are getting a good deal?

Well, it’s all here. You have to read the fine print, and you have to read it very carefully. You can’t just read the fine print about getting the points. You also have to read the fine print about redeeming the points. As we’ve said, you may have all the points in the world and very few ways to redeem them because you might have limits on redemption or usage. If there are blackout dates for travel, restrictions, or monetary on limits on how much you can spend, then you can be in for a real downer.

#6 — What do I do to get a good deal?

Well, you need to get cards that target the things you want. Just because a card offers points, that does not mean that they have things that you want. If you get a card that is for travel points, but you never travel, you’re not going to start traveling all of the sudden. You’ve really got to be sold on the points you’re getting and have a plan to use them. If you travel, find a travel rewards card with terms you like. If you want to get Christmas and birthday presents, then you need to find a card with a rewards program that features all kinds of merchandise in a catalog format. Whatever you REALLY need, that’s the kind of card you get. Don’t just get a card because the rewards sound cool (but you really don’t care about them that much.) You won’t all of the sudden get interested in Bass Pro Shops just because you’re getting points for their store. You get the idea.

#7 — Do I have to be this diligent all the time?

Yes. IF you’re not, then, at the very least, you’re just wasting your interest payments and getting nothing back. At the worst, you’re getting ripped off and you don’t realize it. That’s not a good place to be in.

Be smart.

Do the research.

Read all the fine print.

Better safe than sorry.

Bank Overview: Citi Part 1

By: Jason Steele

09/12/2011

In my continuing overview of the major credit card issuing banks, I will be looking at Citi today. Like my last subject, Chase, Citi is a massive player in retail banking and they offer a wide assortment of credit cards.

Reward Cards

For those who pay their balance in full and on time each month, it always makes sense to use a reward card. Like other banks, Citi offers both proprietary rewards cards and products co-branded with affiliates. Their cash back offering is the Citi Dividend World MasterCard. It offers 1% cash back on most purchases, with elevated levels of cash returns for purchases in other categories of spending that rotate every quarter. There is no annual fee for this card. Citi offers its Dividend Platinum Select Visa and MasterCard for College Students that earn 1% on most purchases, and 2% in rotating categories of spending. There is no annual fee for these cards. They also offer their AT&T Universal Savings Platinum Card that earns up to 1.5% on purchases with no annual fee.

Beyond it’s cash back cards, Citi offers several cards that earn ThankYou points in their loyalty program. The ThankYou Preferred card has no annual fee and earns one point per dollar pent.The ThankYou Premier card offers one point per dollar plus 1.2 points when you use the card at supermarkets, gas stations, drugstores, commuter transportation, and even to pay for parking. There is a $125 annual fee on this card that is waived the first year, and there are no foreign transaction fees. Their top the line product in this line of cards is the ThankYou Prestige card. Holders of this product earn 1.3 points per dollar on purchases from the same merchants that earn 1.2% with the Premier card. This card features 24/7 concierge services and a free domestic companion certificate. Since they only give out details of this certificate when becoming a card member, it is difficult to assign any value to this offer. This card does have a $500 annual fee, but like the Premier version, there are no foreign transaction fees.

The Citi Forward card also has no annual fee earns the same point per dollar spent, and five points per dollar spent on restaurants and entertainment. This card also offers APR reductions when cardholders stay within their credit limits and pay on time each quarter. The AT&T Universal Savings & Rewards Card offers additional Thank You Points for purchases of goods and services from AT&T. There is no annual fee for this card.

Non Reward Cards

Citi offers their Platinum Select MasterCard that features a generous 0% introductory APR, but no rewards and no annual fee. Likewise, the Citi Diamond Preferred card has no annual fee, no rewards, and an introductory financing period. With some minor differences in the travel and purchase protection policies, the Citi Simplicity card offers a similar set of features as the Platinum Select and Diamond Preferred.

Tomorrow, I will cover all of the airline and hotel affiliated cards from Citi.

Bank Overview: Chase, Part 2

By: Jason Steele

09/09/2011

In this continuing series, I am examining the credit cards offered by the major banks, giving my analysis on a bank by bank level. Yesterday, I began reviewing Chase’s offerings, however they have so many products, this became a two part post.

Chase Slate

This is a very interesting product that is not a rewards card. This card offers a 0% introductory APR and no annual fee. What makes this card special is its eligibility in the Blueprint program. Blueprint allows customers to carry a balance on some purchases while paying others in full. In this way, customers can reduce the amount of interest paid compared to what they would have owed had they made the same payment on a typical credit card. Customers can choose specific purchases or include entire categories of merchants to be paid in full or with which to carry a balance. The other aspect of Blueprint is a powerful set of tools to help cardholders manager their budget and create a payment plan that will allow them to meet payment goals that they can set.

Other Rewards Cards

Yesterday, I offered an overview of Chase’s many airline and hotel affiliated credit cards as well as those that offer proprietary reward points in their Ultimate Rewards mall. Yet Chase’s reward card offerings span other affiliates as well. Chase offer the Disney Rewards Visa card for those who want to earn both cash back as well as Disney Dream Reward Dollars. As a hybrid cash back and loyalty points card, this product earns a 1% cash return on spending as well as one Disney Dream Reward dollar per $100 spent. This is essentially like earning 1% cash back and 1% as a Disney credit towards their theme parks, hotels, and cruise lines. Points can also be redeemed for merchandise, and there is a 10% discount for purchases at Disney stores as well as other savings. There is no annual fee for this card.

Chase also offers their Amtrak Guest Rewards MasterCard which earns two points per dollar on Amtrak purchases and one point per dollar on all other transactions. There is also no annual fee for this card.

Finally, they offer their J.P. Morgan Select and Palladium cards. These cards both feature Chip and Pin technology that is very popular in Europe and other countries. Too often, American cardholders are unable to complete transactions at automated kiosks because our cards lack this technology. This makes it incredibly difficult to purchase train tickets or even to buy gas. The J.P. Morgan Select Card has $95 annual fee that is waived the first year. It offers double points on all air, hotel, and car rentals. The J.P. Morgan Palladium Card has a $595 annual fee and details are only available over the phone. This card features access to a dedicated account specialist as well as a special, metal card. The card can only be applied for online.

Conclusions

Chase offer 18 different cards for consumers that range from proprietary and affiliate reward cards to innovative non-rewards products. By carefully considering all of Chase’s offerings, you can find the product that works best for your needs.

Stacking Up: Chase's Credit Card Lineup

By: Jason Steele

09/08/2011

This is the second installment in a series. I will be examining the credit card offerings from the major banks. If you missed yesterday’s post about Capital One you can check it out here. Today, I am looking at Chase, which offers an impressive variety of consumer cards for all sorts of different purposes.

Chase Reward Cards

Chase offers their Freedom card with 5% cash back on up to $1,500 of spending in bonus categories that rotate each quarter. The Freedom Card also offers 1% cash back on all purchases, and a 6 month introductory financing offer on purchases. There is no annual fee for this card.

Chase Sapphire and Sapphire Preferred cards are their other consumer rewards products. These cards offer points in their proprietary Ultimate Rewards program. The Sapphire cards earn 1 point per dollar spent on most purchases, with 2 points on dining. Points are worth a penny each towards many rewards options and 1.25 cents each when redeemed for travel booked through Chase’s Ultimate Rewards web site. There is no annual fee for the standard Sapphire card, but there is a $95 fee for the Preferred version that is waived the first year. The standard version carries Chase’s 3% foreign transaction, but that is waived on the Preferred version.

Airline Cards

Chase is also a leader in offering co-branded rewards cards from a wide variety of affiliates. Travel, in particular, is an area in which they dominate. They offer the Southwest Airlines Rapid Rewards Plus and Premier cards. (check out their current free flight deal here). These earn points that are worth 1.66 cents each towards tickets in the lowest priced fare class on Southwest Airlines. The Plus version has an annual fee of $69 while the Premier version’s fee is $99, but offers more benefits.

Chase is also the credit card partner of merging carriers United and Continental. They are continuing to offer the Continental OnePass Plus and Presidential Plus cards for now. The Plus card has an annual fee of $95 (waived the first year) and offers a lot of perks in addition to miles. The Presidential card has an annual fee of $395, that is not waived the first year, although there is a $95 statement credit. The key difference is the lounge membership that is included for this fee. Chase is also offering the new United Airlines Explorer card, with benefits nearly identical to the Continental OnePass Plus card. It certainly seems as if the Continental Plus card will not be offered next year when the OnePass program is phased out, but it is unclear what will happen to the Presidential Plus card at that time.

Bringing up the end of Chase’s airline affiliated offerings is the British Airways Visa card. This card is remarkable in several ways. First, it is a rare card offered in the United States that is affiliated with a foreign carrier. Next, it offers 1.25 miles per dollar spent, 25% more than most other airline cards. They also offer a companion award pass when customers spend $30,000 in a calendar year. Finally, this cards has a $95 annual fee, and as a card aimed at international travelers, it has no foreign transaction fees.

Hotel Cards

After airlines, Chase also has a wide variety of hotel affiliated products. There are the Marriott Rewards and Premier Rewards cards. They earn Marriott Rewards points and have annual fees of $45 and $85 respectively that are waived the first year. The Premier version offers 5 points per dollar at Marriott and 2 points per dollar spent at airlines, restaurants, and on rental cars. We have a great review of those cards, titled “Which Marriott Rewards Credit Card should you get?” You can read that here if you want the full story on those offerings.

Next is the Hyatt Card that has a $75 annual fee and offers three Gold Passport points for ever $1 spent at Hyatt, and one point per dollar on spent on all other purchases. Finally, there is the Priority Club card from the Intercontinental Hotels Group (IHG) that includes Intercontinental, Holiday Inn, and other brands. This card offers 5 points per dollar spent at their hotels, 2 points per dollar spent on gas, groceries and dining, and 1 point per dollar spent everywhere else. There is a $49 annual fee that is waived the first year, but no foreign transaction fees.

Tomorrow, I will cover the rest of the Chase offerings.