Cash back credit cards will always earn you the most as far as rewards are concerned, relative to what you spend. The standard rate for cash back reward programs is one percent, so $1 for every $100 spent. Unlike point or mileage-based reward programs, with cash back rewards what you’ve earned is yours to keep, and your rewards can’t be devalued in any way. Another benefit of a cash back rewards program is that if you become unhappy with your credit card issuer and want to switch to a better credit card you do not have to worry about loosing your cash back. You can simply request a check for your earned cash back rewards and then close your account at no risk.
My APR skyrocketed to 27 percent after I made two late payments. Can it be lowered?
It’s very hard to get the interest rate on a credit card account lowered in this economy, even if you have excellent credit and a superior track record with your credit card issuer. Now that you’ve made two late payments you’ve weakened your negotiating power considerably. Your APR was also raised because – simply put – it’s a sign of the times. Banks are doing all that they can to increase profits before the Credit CARD Act, which restricts their ability to raise rates, takes effect in February. We would suggest a balance transfer, but any credit card application you fill out now will likely be declined, given that you’ve made two late payments so recently. The best you can do at this point is to prove your case with good behavior. Make sure you pay your bill on time every month and pay more than the minimum amount due. Do this for several months and then try calling your credit card issuer to negotiate your rate down. You may see some relief. If not you can try transferring your balance at this time.
If I transfer my balance from one credit card to another, do I still get the rewards from the original credit card?
This depends. The only way to loose rewards is by defaulting on a credit card or closing your account before you use your earned rewards. Rewards credit cards are almost always associated with usage on the account. For instance some reward programs offer one point or one mile for every dollar spent. If you transfer your balance to another card and have already accumulated rewards on or continue to use your original credit card account, then yes, you will still enjoy the benefits of its reward program. If don’t plan on using your old card any longer, then you will not get any new reward benefits, so make sure your new account offers a rewards program that you are happy with.
