The Best Credit Cards for the Holidays

BILLSHRINK THE BEST CREDIT CARDS FOR THE HOLIDAYS OF SHOPPERS PLAN TO 45% CHARGE HOLIDAY PURCHASES ON THEIR CREDIT CARDS 55% ON THE WEB WILL DO THEIR SHOPPING HOLIDAY SHOPPERS WILL SPEND AN AVERAGE OF $682.74 SOURCES: USAA & MarketLive AT THE END OF 2008 91.1 MILLION- AMERICAN HOUSEHOLDS HAD CREDIT CARDS THAT'S 78% OF AMERICANS SOURCE: creditcards.com TOTAL AMERICAN CREDIT CARD DEBT WAS $972.73 BILLION AT THE END OF 2008 SOURCE: Nilson Report THE NATIONAL AVERAGE APR HAS INCREASED 10-11% 11-12% 12-13% 13-14% 14-15+ IN THE LAST YEAR AVERAGE APR 6 MONTHS AGO 12.04% 11.82% NATIONAL AVERAGE- CREDIT CARD CATEGORY I 10.14% 10.21% BALANCE TRANSFER 10.53% 11.14% LOW INTEREST 11.41% 15.82% BUSINESS 11.63% 12.85% CASH BACK 12.10% 11.61% REWARDS 12.99% 11.63% INSTANT APPROVAL 13.31% 11.86% AIRLINE 14.29% 12.15% BAD CREDIT 14.45% 14.21% STUDENT SOURCE: creditcards.com THERE ARE 3 TYPES OF SHOPPERS Shopper O Shopper © Shopper © You don't pay off your balance each month, have a fair credit rating and make the occasional late payment. Bravo- you pay off your bill each month, and you want to get rewarded with a few trips this year! You pay off your bill each month, but you're looking for some cash back rewards, not trips. SO WHAT IS THE BEST CREDIT CARD FOR YOU? SHOPPER A U.S. Bank Skypass Visa Secured Wells Fargo Secured Visa Card U.S. Bank Visa Platinum Credit Card us bank platinum SKYPASS OKSA 4719 1234 5678 9010 1234 5618 h VISA VISA VISA 16.99% APR 18.99% APR 9.99% APR $50 $18 $40 ANNUAL FEE SHOPPER B American Express JetBlue Citi Visa Forward Card Bank of America Airlines Visa Signature AlaskaArline FORWARD jetBlue citi 3159 375543 da 4128 0012 3456 1890 RO00 1234 5-78 9123 NESAISATU VISA VISA 15.24% APR 14.24% APR 12.74% APR $40 $0 $75 Sign-up bonus of 50 points. For purchases at JetBlue, earn 0.01 points per $1 spent, for all other purchases earn 0.005 points per $1 spent, no limit on earnings. Earn 5 pts per $1 spent in bonus categories, earn 1 pt per $1 spent on all other purchases, earn up to 75,000/year. Sign up bonus of 20,000 miles, for purchases at Alaska Airlines/Horizon Air, earn 3 miles per $1 spend, earn 1 mile per $1 spent on all other purchases, no limit on earnings. SHOPPER C Pentagon Federal Credit Union Visa Platinum Cashback Rewards Bank of American Cash Rewards Visa Signature Card Chase Freedom Card CHASE O BankAmericard Cash Rewarde VISA SIGNATURE CHASEFREEDOM VISA VISA VISA 12.99% APR 14.99% APR $0 $0 $0 Earn 5% per $1 spent in bonus categories, earn 1.25% per $1 spent on all other purchases, no limit on earnings, no annual fee, 13.99% interest on purchases, 4.99% interest (fixed) on balance transfers Sign up bonus of $50 after $25 spending within 12 months, earn up to 3% per $1 spent in bonus categories, earn 1% per $1 spent on all other purchases, no limit on $50 cash back after your first purchase, plus 3% cash back in rotating categories like gas, home improvement and department stores, no annual fee. earnings, no annual fee. OUR OUR TOP 5 HOLIDAY SPENDING TIPS # 1 The Temptation of the 0% Interest Rate Beware of in-store promotional cards that offer an initial store discount. An introductory 0% interest rate can quickly leap to over 20% with just one late payment. Also, when you apply for a new card, an inquiry is made to the credit bureau, which may slightly lower your credit score. Watch Out for Sky-High Interest Rate Some card rates have gone up more than 20% this year! With additional consumer protection laws going into effect in February 2010 that will impact issuer's profits, we're likely to see unstable variable interest rates continue to rise. Make sure you have a careful look at the fine print now to see how high those variables can go. #3 Enjoy Return Policies Around the holidays, many credit cards offer "return protection" which means your issuer will take back most items that the retailer will no longer accept, up until 90 days of the original purchase. This is great for early shoppers who may want to make returns after a store's standard 14-30 day return policy expires. Take Advantage of Post-Holiday Price Adjustments Surprise! Some credit cards actually have price adjustment policies for 60 days, so if your favorite store slashed prices after the holidays, you could be eligible for a refund of the difference in cost. #5 Know how much you are spending on your credit card You'll save yourself money and a major headache if you make sure you've got enough cash in the bank to cover your credit card spending. Go online to get the latest amount in your checking account, and subtract the amount you spent on your credit cards on those holiday gifts. This will give you a good sense of whether or not you have enough to pay your bill on time.