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Yahoo
12 hours ago
- Business
- Yahoo
The best balance transfer credit cards for 2025: Don't pay any interest until 2026
Why we like it: The Chase Freedom Unlimited is another cash-back credit card with a competitive introductory 0% APR period on both balance transfers and new purchases. You'll have 15 months before interest kicks in, with an ongoing variable APR of 20.49%–29.24% when the intro period ends. There's a 3% fee ($5 minimum) for balances you transfer within 60 days of account opening; after that, the fee goes up to 5% ($5 minimum). Like the other cash-back cards on this list, you can still get plenty of value from the Chase Freedom Unlimited after the introductory period ends. You'll earn 5% cash back on Chase Travel℠ purchases, 3% back on dining and at drugstores, and 1.5% back on everything else. This card can make a great choice if you already have a Chase card, too. You can use the rewards you earn to book travel through Chase Travel and even combine them with other Chase cards that may get added multipliers on travel redemptions (like the Chase Sapphire Preferred® Card or Chase Sapphire Reserve®).Given the Chase Freedom Unlimited's high ongoing APR though, it's important to make sure you don't fall into old habits of racking up revolving balances. One of this card's best features is its first-year welcome offer, for example. But if you're not able to pay down your debt balance quickly enough to take advantage of it, or you're worried it'll encourage overspending that could lead you back into debt, you may want to consider another we like it: The Blue Cash Everyday from American Express is one of our favorite cash-back credit cards today. It can also be a helpful tool for paying down existing credit card debt. The card's introductory 0% APR on balance transfers lasts for 15 months after account opening, with a variable APR of 20.24% to 29.24% thereafter (see rates & fees). The balance transfer fee is 3% ($5 minimum) of the amount you transfer. But the Blue Cash Everyday shines for its long-term savings once you've paid off your existing debt. You'll earn 3% cash back at U.S. supermarkets, U.S. gas stations, and on U.S. online retail purchases, each up to $6,000 spent per year, then 1% back (and 1% cash back on everything else). Plus, annual benefits can help you save even if you don't want to charge many new purchases to your card during the promotional period. You can get $7 in monthly statement credits (up to $84 annually; with enrollment) when you spend at least $9.99 on an auto-renewing Disney Bundle we like it: The Citi Double Cash Card is our overall pick for anyone looking to pay down debt with a balance transfer. With a long 0% APR on balance transfers for the first 18 months (18.24%-28.24% variable APR after that), it's an excellent option for debt payoff. You'll pay a 3% balance transfer fee ($5 minimum) for each balance you transfer within the first four months of account opening, which increases to 5% ($5 minimum) after four months. Throughout the extended intro period, you can make major progress on existing balances or even commit to paying the amount you transfer in full. There's plenty to like about this card after you pay down your balance, too. You'll earn up to 2% on every purchase you make with the Citi Double Cash: 1% when you make the purchase and 1% when you pay it off. That rewards structure may even add some incentive to avoid carrying a balance once you've paid down your debt, since you won't earn the total cash rewards until you pay in full. Unlike other balance transfer credit cards, the Citi Double Cash Card does not offer an introductory 0% APR on new purchases — the only detail that kept it from a perfect score in our methodology. However, if you're planning to use this card primarily to pay down debt (and then for its cash-back benefits after the intro period), we don't think that holds this card back from being a top choice among balance transfer offers we like it: The Citi Rewards+ Card is another rewards credit card with a solid 15-month introductory 0% APR period, which applies to both new purchases and balance transfers. After the intro period ends, you'll pay a 17.74%-27.74% variable APR. That's still very high for any balance you carry, but it is one of the lowest you'll find among balance transfer credit cards today. After the intro period ends, you can earn Citi ThankYou® Points on your purchases: 5x points on hotels, rental cars, and attractions booked through Citi Travel through the end of 2025; 2x points at supermarkets and gas stations (up to the first $6,000 spent per year, then 1x); and 1x on all other purchases. For each purchase you make, your rewards are rounded up to the nearest 10 — so you could get 30 points from a $24 purchase — and for each redemption you make, you'll get 10% points back (up to the first 100,000 points you redeem per year). Each of these can help you maximize points to use on travel, statement credits, gift cards, and more. The Citi Rewards+ Card isn't the only rewards card from Citi with a competitive intro period and a lower ongoing APR, but it took the edge over the potentially higher-earning Citi Custom Cash® Card for its slightly lower balance transfer fee. When you transfer a balance to the Citi Rewards+ within the first four months of account opening, you'll pay a 3% fee ($5 minimum). After that, the fee goes up to 5% of your transfer ($5 minimum), which is the same as the Citi Custom Cash Card's we like it: Discover it Cash Back similarly offers great ongoing rewards alongside a useful 0% APR. It has an introductory 0% APR period for 15 months after account opening for new purchases and balance transfers (as long as you make your transfer within a given time period). The ongoing variable APR after the intro period is 18.24%-27.24%, and there's a standard balance transfer fee that's in line with other balance transfer credit cards. The Discover it Cash Back also has great long-term value with revolving 5% cash back Discover rewards categories. You'll earn 5% back on the first $1,500 spent across the revolving categories — which may include grocery stores, restaurants, gas stations, streaming services, and more — each quarter when you activate and 1% on everything else. Like some other cards on our list, one of the Discover it Cash Back card's top features is its welcome offer: a Cashback Match on all the rewards you earn in your first year. Of course, maximizing this offer depends on earning rewards on your purchases throughout the year. If you want to take advantage of the bonus offer (and the card's revolving bonus rewards categories), make sure you can balance your spending with your debt payoff plan so you don't end up back where you started when the balance transfer intro period you're looking for the absolute longest 0% APR promotional period on balance transfers, here are a few more of our top-rated cards with long intro periods. Why we like it: BankAmericard has a solid combination of long introductory 0% APR and relatively low ongoing APR, which can be great for people solely focused on debt payoff. The introductory period for balance transfers is 18 billing cycles and applies to balances you transfer within 60 days of account opening. The same 0% APR intro period applies for new purchases. After that, you'll pay a variable 15.24%-25.24% APR on any remaining balance. While that can easily add up over time, it's significantly less than you'll find from many credit cards today. There's an introductory balance transfer fee of 3% for the first 60 days, then it goes up to 4%. There's also no penalty APR; while you should always make your credit card payment on time (especially while carrying a balance), paying late or having a payment returned won't automatically increase your BankAmericard APR. Why we like it: The Wells Fargo Reflect® Card is an excellent choice for balance transfers primarily because of its extraordinarily long 0% APR offer of 21 months. This feature allows cardholders to transfer existing balances and enjoy a prolonged period without incurring interest, providing ample time for debt management and reduction. The 5% balance transfer fee needs to be considered, but for many, the benefit of the extended interest-free period outweighs this cost. This card is particularly advantageous for those who anticipate needing more time to pay off their balances and want to avoid the rapid accumulation of interest we like it: The U.S. Bank Visa Platinum Card also has one of today's longest intro periods, with an introductory 0% APR for 21 billing cycles. That intro offer applies to new purchases and to balance transfers made within 60 days of account opening. After that, your remaining balances will earn a variable 17.74%-28.74% APR. In exchange for the long intro period, you'll again earn no rewards and pay a slightly higher balance transfer fee than other cards on our list: 5% of your transferred balance or $5, whichever is greater. Why we like it: The primary appeal of the Citi Simplicity Card for balance transfers lies in its extended 0% APR offer, lasting an impressive 21 months. This length of time is one of the longest available, providing cardholders with a substantial period to manage and pay off transferred balances without accruing interest. The 0% APR offer for 12 months on purchases also adds flexibility, allowing cardholders to make new purchases without immediate interest concerns. While the card does not offer cash-back rewards or a welcome bonus, its strength is its simplicity and the potential for significant interest savings. The balance transfer fee of $5 or 3%, whichever is greater, is a standard rate and should be considered when evaluating the overall benefit of transferring balances to this card. The Citi Simplicity Card is particularly well-suited for those prioritizing a lengthy interest-free period for their balance transfer needs, offering a straightforward and cost-effective approach to managing debt. Not only is credit card interest expensive, but it's as high as it's ever been. Today's average credit card interest rate is over 21% — higher than at any other point since the Federal Reserve began tracking rates in the 1990s. For those who carry a balance on their card, the average is more than 23%. Credit cards with 0% APR on balance transfers can offer significant savings compared to standard double-digit interest rates. Maximize your balance transfer savings by paying your balance in full before the intro period ends. If you can't pay the balance within the 0% APR period, you can still shave months and potentially thousands of dollars from your debt payoff. Your total savings will depend on a few details, including the length of your intro period and how much you can pay each month. Let's say you have a credit card balance of $5,500 today — just below the average balance for U.S. households with credit card debt, according to the Federal Reserve Bank of St. Louis. That balance is all on a credit card earning 21% APR. Here's what your journey to pay down debt could look like over a few different scenarios: Minimum payments: This is by far the most costly option. Making only minimum payments, you would add nearly $9,000 in interest over more than two decades before paying your balance off in full. Total paid: $14,499 Fixed monthly payment: You can minimize costs by paying more than your monthly minimum, even if you cannot pay your balance in full. Maybe you can afford to contribute a fixed payment of $200 each month toward your debt. In this case, you'll pay your balance in full after three years, but still add more than $2,000 to your total balance. Total paid: $7,566 Now, let's see how a balance transfer credit card could make a difference in your $5,500 debt. This card comes with an 18-month 0% introductory APR and a 3% balance transfer fee (more on that below). After the intro period, you'll take on the same 21% APR. Pay in full: If you can put at least $314 toward your credit card bill each month, you could wipe out your balance in full by the end of the intro period without paying any additional interest. The only payment added to your principal is the 3% fee when you transfer, equal to $165. Total paid: $5,665 Fixed monthly payment: If the amount you need to pay in full is out of your budget, you can still save with a balance transfer offer. Maybe you can afford the same $200 monthly payment as before the transfer. Over the introductory period, you would pay down $3,600 of your principal balance, lowering your debt to $2,065. Once the APR starts to accrue, you could cover the remainder in one year with only $235 in added interest. Transferring your balance would allow you to pay your balance in full over 30 months and with about $400 in added interest and fees. Total paid: $5,900 There are many factors to consider for a balance transfer credit card, most notably whether this is the right tool to help with your debt repayment journey. Make sure you're considering balance transfer credit cards that match your financial goals. Here are a few details to look for: Introductory APR: Credit cards offer introductory APRs for new cardholders, either on new purchases or balance transfers (or both). The introductory rate for many balance transfer cards is 0% over a given intro period, which can help you pay down your existing balance without interest. Regular APR: APR stands for annual percentage rate, the percentage you get charged by the credit lender each payment period you carry a balance. This will likely be different than your intro rate. Credit cards typically have variable APRs, which means your rate goes up and down over time. Transfer period: On some cards, balance transfers are only eligible for 0% APR offers when you transfer your balance within a given time frame: within 60 days of account opening or 120 days of account opening, for example. While it makes sense to transfer your debt as soon as possible to take advantage of the full intro period, you'll also want to keep any time limits like this in mind, so you don't miss out on the offer. Issuer: You generally won't be able to transfer a balance from one card account to another card account with the same bank. Look for balance transfer offers from different credit card issuers than the card on which you have an existing debt balance. Annual fees: Your issuing bank might charge an annual fee for your card, though annual fees aren't common among top balance transfer cards. If you do choose a card with an annual fee, you should make sure you're getting enough value to offset the yearly cost. Balance transfer fees: If you want to transfer debt to an existing balance from one credit card to another, the new card issuer can charge you a fee. This is usually a percentage of your transfer amount ranging from 3% to 5% with at least a $5 minimum. Your credit score: Balance transfer credit cards generally require a good credit score. A credit score is a number that represents your credit health, and is based on the information in your credit report. You can request a free credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) These reports contain your credit history, like how many credit card accounts you've had. Credit scores range from 300-850. Above around 700 is considered good, and above 800 is considered excellent — the higher your score, the more likely you are to qualify for great loan terms and rewarding credit cards in the future.A balance transfer credit card can save you money, but you should still prepare for the potential costs you'll incur. Balance transfer cards don't typically carry an annual fee. However, there is often a fee for transferring your balance. Balance transfer fees can range from 3%-5% of your overall balance, usually with a minimum of around $5 or $10. Say you want to transfer a $3,000 balance to a card with a 0% intro APR and a 3% balance transfer fee. The balance transfer would cost you $90 in total. The larger your balance, the more you'll pay for the balance transfer. Still, these fees are likely only a small fraction of the interest you would otherwise pay. Some balance transfer credit cards waive this fee. If you have a very high balance that could lead to a costly fee — or you want to avoid any added cost altogether — you may want to focus on balance transfer cards with no fee. Balance transfers have pros and cons. While benefits include the intro APR offer for debt payoff, cons include balance transfer fees and potentially few. 0% introductory APR: With no-interest balance transfer credit cards, any payments you make throughout the intro period will go directly toward your principal balance. Instead of interest making it more challenging to pay off your debt, you can use this tool to eliminate the underlying balance. No annual fee: The best balance transfer cards available today have no annual fee, so you don't have to worry about any additional cost of owning the card. Debt consolidation: If you have balances spread across multiple credit cards, you may be able to consolidate them onto a single balance transfer card. Not only can you benefit from the period of interest-free payments, but you'll also minimize the number of individual monthly payments you need to remember. Just make sure the total transferred balance is less than your card's credit limit. Risk of not paying your balance off in full: You may not be able to maximize your balance transfer if you cannot prioritize your monthly payments over the intro period. These cards work best if you can commit to paying down a significant portion of your balance over the 0% APR offer. Otherwise, you'll be left with a growing balance once again when your regular interest rate begins. Balance transfer fees: The fees issuers charge to make your transfer can add to your overall balance. But for most cardholders, a 3% or 5% fee will still be far less than the amount you would otherwise accrue in interest charges. Credit limits: Make sure you know the credit limit of your balance transfer credit card before you attempt to make your transfer. If your existing debt is more than the limit, you won't be able to transfer the entire balance. Take advantage of your new card. Not only is a balance transfer credit card a great way to pay down debt, but it can also set you up for a better financial future. Here are three things you should do when you open up a new card: The introductory period on your balance transfer card only lasts so long. Take full advantage by transferring your balance as soon as possible after approval. If your new credit card offers an 18-month 0% APR intro period but you wait two months to make your transfer, paying down your debt in that shorter time frame will be more difficult. Some balance transfer cards even require you to transfer your balance within a specific timeframe. For example, your card agreement may specify that the 0% APR offer applies to transfers made within the first 30 days of account opening. Alternatively, you could take on a more significant balance transfer fee the longer you wait. For example, there may only be a 3% fee for balances transferred within 60 days of account opening, but a 5% fee for balances transferred after that time. Always read the fine print of an introductory balance transfer offer before opening your account so you can avoid any surprises that may set you back. Throughout the intro period, prioritize paying down your debt without making new purchases that increase your balance. If you're adding to your balance throughout the 0% APR period, you'll only leave yourself with more to pay off. Instead, focus on buying only what you can afford to pay in full. Whether you make purchases with another credit card, use your debit card, or pay with cash, ensure you have enough money in the bank to cover your spending. This may also help you become more aware of any spending habits that led to taking on the debt in the first place, so you can avoid ending up in the same place again. If debt payoff is your priority, long-term rewards or benefits may not be the biggest concern when choosing your balance transfer card, but they are worth considering. Balance transfer credit cards with the longest introductory 0% APR periods (up to 21 months) typically offer few ongoing benefits. They are designed for cardholders looking to pay off as much debt as possible over a more extended period. On the other hand, credit cards with balance transfer offers and ongoing rewards or other benefits tend to have slightly shorter intro periods of around 12 to 15 months. Even after you pay down your debt, these cards can offer long-term value on your everyday purchases. Just make sure you plan to avoid overspending and taking on debt you can decide if opening a new account is right for you. A balance transfer credit card can help if you're in debt or have high-interest debt. But you should always consider all the options that could help you pay down debt balances and know the potential risks involved. Think about these things before you make your decision: A balance transfer isn't your only option for debt payoff. Consolidating debt with a personal loan may be a better option for some people. If your debt far exceeds the credit limit on a new balance transfer card or you need more time than 0% APR intro periods offer today, opting for a personal loan with a fixed APR lower than your current credit card could be a good solution. Not only do you need good credit to qualify for a balance transfer card, but a balance transfer itself can also potentially affect your credit. For one, when you open any new credit card (including a balance transfer card), the required hard inquiry on your credit could lead to a small, temporary credit score drop. To keep multiple applications from sinking your score, only apply for cards you're confident you'll qualify for or get prequalified before applying. Another potential credit impact involves your credit limit. If you transfer a debt balance that makes up nearly your entire credit line, you could increase your credit utilization ratio — the amount of credit you're using compared to the amount you have available. This is one of the most influential factors in your credit score; the lower it is, the better. However, if you can keep up with your payments and begin to quickly bring down your balance over the intro period, you can mitigate the negative effect and balance the ratio.A good plan is the most important thing you can have before opening a balance transfer credit card. Using your card details (length of intro period, balance transfer fee, etc.), determine precisely how much you need to pay each month to eliminate your balance in full before the 0% APR period ends. If necessary, look at your budget and spending before you apply to find areas where you can reduce spending to dedicate more toward your monthly payments. If you can't pay off your balance completely, think about what next steps you'll take once interest kicks in to keep the remainder from growing out of your control. And don't forget to rethink your spending over the long term to ensure you don't wind up with another debt balance in the future. Practicing good credit habits and spending only what you can afford is the best way to take advantage of the rewards and benefits of credit cards without paying the price tag of high interest rates. Balance transfer cards can be a savvy financial move if you're looking to tackle high-interest debt. By transferring your existing debt to a card with a 0% introductory APR, you stop accruing interest and only make payments toward the principal balance. However, if you can't clear the balance before the introductory period ends, you'll face the card's standard APR on the remainder. You should be confident you can make a significant difference in your balance before this ongoing interest kicks in to make the balance transfer worth it. It's also important to note that most balance transfer credit cards come with a transfer fee — usually 3%-5% of the amount transferred — which adds to your costs. Navigating a balance transfer can be tricky; you need a solid strategy to maximize it. First, find a balance transfer card that offers a long 0% introductory APR period — ideally, 15 to 21 months. The longer this no-interest period lasts, the more time you have to pay down your balance without worrying about interest charges. Also pay attention to the balance transfer fee; most balance transfer cards will have at least a 3% fee that you should be prepared to add to your total amount due. Once you've opened your new card, transfer the balances from your highest-interest credit cards first to maximize savings over the 0% APR period. Double-check your balance transfer limit before you start so you don't attempt to transfer more than the card allows. Prioritize paying more than the minimum payment each month. To truly take advantage of the 0% APR, calculate how much you must pay monthly to clear the debt before the introductory period ends. If you just stick to the minimum, you likely won't reduce the balance by much. Never make a late payment on your balance transfer card. One missed payment could mean losing your 0% APR and being hit with a much higher penalty APR, along with late fees. Set up autopay or reminders to ensure you never miss a due date. Avoid using your new card for new purchases while you pay down the balance. Keep your spending in check and focus solely on paying off the debt you transferred. Finally, don't get caught off guard when the 0% APR period expires. If you think you won't be able to pay off the full balance by then, start planning ahead for how you'll continue paying down your debt. A balance transfer can temporarily lower your credit score because it triggers a hard inquiry by the card issuer on your credit report. This is true for all new credit applications, not just balance transfer cards. A balance transfer can also affect your credit utilization ratio, potentially lowering your score if the balance transferred to your new card represents a large percentage of its limit. Credit utilization, which measures how much credit you're using compared to your total available credit, is a major factor in calculating your credit score. your credit score. It's best to keep this ratio under 30%. The good news is that if you use a balance transfer card wisely — by paying down your balance and avoiding more debt — your credit score should improve over time. Like most credit cards, the higher your score is, the better your chances of getting the best available balance transfer offers with long 0% APR periods and other benefits. In general, you're most likely to qualify for a balance transfer card with a good-to-excellent credit score. According to FICO, that means a score of at least 670 and up to the maximum 850 credit score. With a solid credit score (especially one closer to the 'excellent' end of the range around 750 or higher), you can usually score the best balance transfer terms, a relatively lower interest rate after the intro period, and additional perks like cash-back rewards and a sign-up bonus. To create our list of the best balance transfer credit cards, we prioritized a holistic look at what these cards offer cardholders, even after the intro period ends. First and foremost, though, we analyzed the details of each card's balance transfer offer. This includes the length of the intro period for balance transfers, the balance transfer fee, and whether it also has an intro period for new purchases. We also rated each card on other features that may apply throughout the intro period and beyond: the ongoing variable APR, any rewards on spending, annual fee cost, and credit score access. Finally, we reviewed customer service, security, and accessibility features that apply to any of our card rankings. These include mobile app reviews, fraud monitoring, number of ways to contact the issuer, and more. Using this system, we evaluated more than two dozen credit cards from major issuers with balance transfer offers available today. The cards we looked at are widely available for American consumers (with the credit to qualify), no matter where you're located or what institution you bank with. Of course, not everyone looking for a balance transfer credit card is interested in long-term rewards and benefits. For some, finding the longest intro period available to begin paying down debt is more important than any ongoing card features. While the cards with today's longest intro periods (typically 18 to 21 months) generally scored lower in our overall ranking system because of their lack of ongoing value, we did want to include them on our list. In the 'more cards to consider' section, we include these cards, which offer the longest introductory periods and next-best overall scores after those cards that made the primary bring down your balance over the intro period quickly This article was edited by Rebecca McCracken Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank's website for the most current information. This site doesn't include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.
CNBC
21-05-2025
- Business
- CNBC
40% of Gen Z expect to spend more in 2025 than last year — make sure to use the right credit card
Gen Z is opening up their wallets a bit more this year than last. According to a recent Northwestern Mutual study, almost half (40%) of this young cohort expect to spend more in 2025 than in 2024, well outpacing other generations. More spending generally encourages more opportunities to earn rewards, but only if you use the right financial tools. Below, CNBC Select looks at some popular Gen Z spending categories — and the credit cards that provide the most bang for their buck in each category. Other generations are cutting back on travel spending, but not Gen Z. According to Berkshire Hathaway's 2025 State of Travel Insurance Report, millennials decreased their annual travel spend from 2023 to 2024 by just over 15% while Gen Z's annual travel spend went in the opposite direction, up by about 20% to $11,209. If travel is at the top of your bucket list for summer and beyond, using the right credit card not only provides you with extra protection but also rewards you for your spending. The Chase Sapphire Preferred® Card (see rates and fees) is one of the top travel cards on the market, and it comes with primary rental car insurance, trip cancellation and interruption insurance and baggage and trip delay insurance. You'll also earn valuable Chase Ultimate Rewards® points with your spending, which can be redeemed in a handful of ways, from simple statement credits to taking advantage of Chase's transfer partners. On Chase's site On Chase's site Points are worth 25% more when you redeem them for travel booked through Chase TravelSM. Good to Excellent670–850 19.99% - 28.24% variable $95 Earn 60,000 bonus points See rates and fees. Terms apply. Member FDIC. Read our Chase Sapphire Preferred® Card review. The Chase Sapphire Preferred® Card packs a punch for a $95 annual fee card, offering annual travel credits, comprehensive travel protections and $5 or 5% of the amount of each transfer, whichever is greater Here's a hypothetical example of how you could benefit from the Chase Sapphire Preferred. Say you spend the Gen Z average of $11,200 (we rounded down) on travel using this card. Half of that travel was bought through the Chase TravelSM portal, which earns an elevated 5X points per $1, making the $5,600 spent worth 28,000 points. The other $5,600 you spent on travel outside the portal, earning you 2X per $1, or 11,000 points. This brings you to a grand total of 39,000 Chase Ultimate Rewards points or almost $400 in value (at 1 cent per point). If you cash in these points through the Chase Portal or via transfer partners, you could be getting even more. The flexible rewards you can earn via travel spending, plus the several protections the card offers, make it one of the top options for those looking to splurge on travel. A Bank of America Institute study found that Gen Z discretionary spending in categories like entertainment and travel went up 25.5% from 2023 to 2024, and it's trending up YoY from this year to last. If entertainment is a big spending category for you, know that certain credit cards get you access to presale and VIP tickets for concerts, sports games and exclusive events. American Express cardholders, for example, benefit from special Amex Experiences, including theater shows and concerts, with some more exclusive events tied to higher-tier cards. The Platinum Card® from American Express will get you access to Amex's Premium Events Collection™ (previously By Invitation Only®) where you'll get access to exclusive events unavailable to other cardholders; some past examples include VIP Access to the Monaco Grand Prix and advanced screenings of the award-winning show . The card also comes with several statement credits, including a $200 hotel credit* and a $200 airline fee credit (enrollment required), both of which help offset the travel costs for your next entertainment getaway. * On the American Express site On the American Express site The Amex Platinum Card provides access to Amex Centurion Lounges, Delta Sky Clubs, Lufthansa Lounges, Escape Lounges and more. (Enrollment required) Good to Excellent670–850 See Pay Over Time APR $695 Earn 80,000 Membership Rewards® Points after you spend $8,000 on purchases on your new card in your first six months of Card Membership See rates and fees, terms apply. Read our Amex Platinum Card review. The Platinum Card® from American Express is a premium card loaded with annual statement credits, entertainment benefits, extensive airport lounge access, elite status perks and more. (Enrollment required for select benefits mentioned)N/A None Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability.3.60% APY as of 5/8/2025Min balance to open = $0 On the American Express site Terms apply.1.00% APY as of 06/24/2024Min balance to open = $0 American Express National Bank is a Member FDIC. Terms apply. While the Amex Platinum Card does come with a bit of a higher annual fee, between the access to exclusive events and sheer amount of statement credits, this card can generate over $1,500 in value for the right event-goer. Gen Z is spending more at restaurants, increasing their dining out spend by 14.3% compared to last year, while the general population's spending rose by just 2.6%, according to the Bank of America Institute study. Using a credit card that earns dining rewards can help cover the cost of future meals. Whether dining out or ordering in, the U.S. Bank Altitude® Go Visa Signature® Card is a good fit for no annual fee. More accessible than some premium cards, you'll earn 4X points on dining, takeout and restaurant delivery on your first $2,000 each quarter. This credit card from U.S. Bank also earns 2X points on streaming services and comes with a $15 credit for Netflix and Hulu — making ordering in just as rewarding. Personal and small business credit cards issued by U.S. Bank are currently not available on CNBC Select. Click "Learn More" to review other credit card offers. Personal and small business credit cards issued by U.S. Bank are currently not available on CNBC Select. Click "Learn More" to review other credit card offers. Personal and small business credit cards issued by U.S. Bank are currently not available on CNBC Select but you can check out our marketplace to compare offers from other issuers including American Express and Chase.N/A See terms See terms See terms *See rates and fees, terms apply. Information about personal and small business credit cards issued by U.S. Bank has been collected independently by CNBC Select and has not been reviewed or provided by the issuer prior to publication. Gen Z or not, maybe you simply want a credit card that rewards kind of spending. For that, a flat-rate cashback credit card is the perfect addition to your wallet. The Citi Double Cash® Card earns you 2% cash back on all your purchases (1% when you buy and 1% when you pay your bill). The card has no annual fee and there's no cap on the amount of rewards you can earn. You can redeem your cash back via statement credit, direct deposit or through one of the other options, including at On Citi's site On Citi's site Receive a 0% intro APR for 18 months on balance transfers. Fair to Excellent580–850 18.24% - 28.24% variable $0 Earn $200 cash back See rates and fees, terms apply. Read our Citi Double Cash® Card review. The Citi Double Cash® Card is one of the best no-annual-fee cash-back cards thanks to its straightforward rewards is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. A balance transfer fee of 5% of each transfer ($5 minimum) applies if completed after 4 months of account opening. 3% Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Yahoo
17-05-2025
- Business
- Yahoo
Do millionaires use credit cards? Yes, and so should you.
If you use a rewards credit card, you're more like a millionaire than you may think. Although most adults have credit cards, millionaires are even more likely to use them. According to the Federal Reserve, almost all adults with incomes over $100,000 have a credit card in their name. But if millionaires are so wealthy, why do they rely on credit? Credit cards provide plenty of benefits, even for the super-wealthy. However, you don't need a seven-figure net worth to take advantage of those benefits. Millionaires use credit cards thanks to the convenience and perks they provide. These are some of the key benefits of using a credit card — even for people who can easily afford any purchase in cash: Millionaires earn valuable rewards by using credit cards, from paying for groceries to buying clothing. For example, some cash-back cards offer 5% back on certain purchases, or you can use a travel credit card to earn points or airline miles that can be redeemed for travel. Consider a card like the Capital One Venture Rewards Credit Card. This credit card offers a base earning rate of 2x miles on all eligible purchases. If a millionaire makes $50,000 in purchases, that's 100,000 miles (equal to $1,000 toward travel). That's not a bad return for purchases they're already making. In the case of average consumers, we don't have to spend like millionaires to earn lots of rewards. If you have upcoming large expenses, you can time paying for them with a new card and earn a credit card sign-up bonus. This can immediately boost your rewards bank without any need to overspend. Millionaires use credit cards because many credit cards automatically give you added protection and coverage. For example, the Chase Sapphire Preferred® Card offers the following protections: Auto rental collision damage waiver Baggage delay insurance Extended warranty protection Lost luggage reimbursement Purchase protection Roadside dispatch Travel accident insurance Travel and emergency assistance services Trip cancellation and interruption insurance Trip delay reimbursement Some cards, like the Ink Business Preferred® Credit Card and Wells Fargo Active Cash® Credit Card, offer cell phone protection. It's one thing to make a lot of money, but it's another to hold on to that money in different ways with good money habits, such as protecting your purchases. And certain credit cards provide an easy way to make sure you have automatic protections in place on qualifying their incomes, millionaires still face some of the same annoyances or stressors while traveling, such as long lines at the airport. By using a card like the Capital One Venture X Rewards Credit Card, they can make the experience less stressful by utilizing the following perks: TSA PreCheck or Global Entry fee credits: You can receive up to a $120 credit for Global Entry or TSA PreCheck application fees. Airport lounge access: Cardholders receive complimentary access to Priority Pass and Capital One Lounge locations. Travel concierge: Credit card concierge services can assist you if you need help booking reservations or finding a good hotel. They can even help you secure event tickets, refer medical or legal services, and assist with other of the reasons why millionaires use credit cards rather than cash or debit is because of the protection against fraud they provide. In most cases, if a credit card is lost or stolen, your maximum liability for unauthorized purchases is $50. By contrast — depending on how quickly you report the charges — you may be responsible for the entire amount of unauthorized transactions with a debit spending with cash can be difficult. Tax season can be especially challenging unless you keep diligent records and store your receipts. Credit cards allow you to sync your accounts with your favorite budgeting or bookkeeping software. You can quickly view your records to see how you've historically spent money, trends in your spending habits, and even look up specific transactions from the past. These records can make finding your charitable donations, medical expenses, and other potential deductions easier at tax cards are often much more convenient than cash or paper checks. You don't have to worry about stopping at an ATM to make a withdrawal with your debit card, and you can add your credit card to your phone to make contactless or mobile cards for wealthy people include the American Express Centurion Card (Amex Black Card) and J.P. Morgan Reserve Card. However, rich people use various types of credit cards that are generally available to anyone who qualifies, such as The Platinum Card® from American Express and Chase Sapphire Reserve®. Note that many popular travel cards typically require at least a good credit score. Rich people have the money to pay off credit card debt and don't have to carry credit card balances, so they don't have to worry about high interest rates or annual fees. Rather, they can focus on the benefits of credit cards, like earning rewards to continue to build wealth, taking advantage of travel perks, and using card protections and insurance. They get many of the same benefits that the average cardholder can get from credit card companies, including: Opportunities to build credit Rewards on eligible purchases Card protections and insurance coverage Travel perks, such as airport lounge access Expense tracking Convenient payment method Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank's website for the most current information. This site doesn't include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.
CNBC
09-05-2025
- Business
- CNBC
Last chance: Chase Sapphire Preferred's 100K welcome bonus (worth up to $1,250 in travel) ending May 15
Summer travel on your mind? The Chase Sapphire Preferred® Card (see rates and fees) can help you get there with its highest welcome bonus ever — but only if you act fast. New Sapphire Preferred cardholders have one last chance to earn 100,000 welcome bonus points after spending $5,000 on purchases in the first three months from account opening. This rare offer, which is worth up to $1,250 in travel redemptions, will officially end on May 15 at 9 AM ET. On Chase's site On Chase's site Points are worth 25% more when you redeem them for travel booked through Chase TravelSM. Good to Excellent670–850 19.99% - 28.24% variable $95 Earn 100,000 bonus points See rates and fees. Terms apply. Member FDIC. Read our Chase Sapphire Preferred® Card review. The Chase Sapphire Preferred® Card packs a punch for a $95 annual fee card, offering annual travel credits, comprehensive travel protections and $5 or 5% of the amount of each transfer, whichever is greater The current 100,000 Sapphire Preferred bonus is one we don't see often. Usually, the welcome offer for this card is around 60,000 bonus points for a minimum $4,000 spend — making this all-star bonus a significant increase of 40,000 more points for just an additional $1,000 spend. We love that the CSP has a modest $95 annual fee. The card's travel perks include an up to $50 Annual Chase Travel Hotel Credit, trip cancellation and interruption insurance, primary rental car insurance, baggage delay insurance, trip delay reimbursement and travel and emergency assistance services. Plus, there are no foreign transaction fees. Your Chase points are worth 25% more (or 1.25 cents) when booking through Chase TravelSM. Make your points go even further with the use of Chase's 14 airline and hotel transfer partners. To be eligible for the Sapphire Preferred's 100,000-point bonus, you can't be a current cardholder of any Sapphire card (being an authorized user doesn't count) nor could you have earned a new welcome offer for any Sapphire card in the past 48 months. You'll likely need very good or excellent credit to qualify and be cautious of the Chase 5/24 rule. If you've opened five or more credit cards from any card issuer in the past 24 months, you're much less likely to be approved for most Chase credit cards. One caveat is that business credit cards typically don't add to your 5/24 count, as long as they don't appear on your personal credit report. Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here. Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent availability. Good to Excellent670–850Earn 100,000 bonus points On Chase's site See rates and fees. Terms apply. Good to Excellent670–850Earn $200 cash back On Chase's site See rates and fees. Terms apply. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Forbes
02-05-2025
- Business
- Forbes
You Won't Believe These 3 Weekend Getaways You Can Fund With Chase's 100k Welcome Bonus
Imagine unlocking a world of travel with a single decision. Right now, the Chase Sapphire Preferred® Card is giving you the chance to turn everyday spending into your next vacation with a staggering new bonus worth at least $1,250 in travel. You might already have more than a few redemptions in mind for a hefty sum like that, but if not, we have a few exceptional suggestions on how to maximize your next weekend getaway. Earn 100,000 bonus points after you spend $5,000 on purchases in the first 3 months from account ... More opening. Chase Sapphire Preferred® Card - See Rates & Fees Hundreds of credit cards offer bonuses to new cardholders, but the Sapphire Preferred is essentially handing you a free ticket to adventure. If you apply soon, you can earn 100,000 bonus points after spending $5,000 on purchases in the first three months from account opening. With its 100,000 point offer on the market for a limited time, this single credit card sign-up could translate into memorable experiences without breaking the bank. There are two primary ways to use your Sapphire Preferred welcome bonus to pay for travel. The more intuitive of the two is using Chase Ultimate Rewards® to make reservations through Chase Travel℠ with a 25% bonus (in other words, each point is worth 1.25 cents when making these redemptions). The booking interface works similarly to most other travel booking websites, except that you'll have the option to pay with points at checkout (in addition to the typical option to charge your card). For these reasons, Chase Travel offers simplicity and nearly limitless travel options. The other option is the ability to transfer Ultimate Rewards to travel partners. Partners include: Airline Partners Hotel Partners The act of moving your points from Chase to your preferred program is quick, but it can take a little more finesse to find available awards and determine if you're getting a good deal. That extra effort can pay off, though: Some hot deals could significantly boost your redemption value. If a weekend chasing thrills at the theme park sounds like a good time, you can make it possible using your Sapphire Preferred bonus, and likely have enough points to bring the kids along too. Competition across airlines keeps most flights to Orlando reasonably priced, including when paying in miles. Southwest Airlines, an Ultimate Rewards transfer partner, has more service to Orlando than any other airline and can be a great option for families booking rewards since every seat available for sale is also available for point redemptions. Use its low-fare calendar to seek out cheaper travel dates and score round-trip flights in economy for about 20,000 points per person. Even after redeeming 80,000 points for a family of four's airfare, the Sapphire Preferred welcome offer would still leave you with 20,000 remaining points. Amazingly, that's enough leftover to pay for a hotel stay. Transfer your remaining points to World of Hyatt, another 1:1 transfer partner, and look for two nights at a Category 2 hotel. The Hyatt Place across from Universal Orlando Resort is a solid choice with an obviously convenient location, plus rooms fit for families with two queen beds plus a pull-out couch. If you book off-peak nights, the award rate drops to 6,500 points per night, meaning you'd have the budget to extend your stay a third night. Tulum is Mexico's current hot spot, and a weekend of fun in the sun can be yours when redeeming your Sapphire Preferred offer for a getaway. It's easier to reach than ever, with new nonstop flights from the U.S. right into Felipe Carrillo Puerto International Airport (TQO) or comfortable rides on the recently finished Tren Maya route from Cancun's airport station to Tulum. With so many accessible options, you can shop around for the best prices on airfare to stretch your points further. Transferring points to United, Southwest or JetBlue are all familiar ways to lock in an award flight without a steep learning curve. Then, transfer Ultimate Rewards to IHG One Rewards to book a stay at the Kimpton Aluna Resort Tulum. You'll frequently find award nights priced under 30,000 points per night—and sometimes cheaper. For both your flight and hotel stay, do some quick math before transferring points. Occasionally, it may require fewer points to book your trip components via Chase Travel with a 25% points bonus. This extra versatility is one of the reasons we love the Sapphire Preferred. You're not beholden to a specific type of redemption and instead can pick the option that suits you best. Pro Tip: At 1.25 cents per point, you'd need 24,000 Ultimate Rewards points to pay for a $300 flight booked through Chase Travel. Similarly, you'd need 16,000 points to pay for a $200 hotel. With two different strategies to book, your 100,000-point Sapphire Preferred bonus should easily cover a round-trip flight and a two-night stay. With flexible dates, you can likely squeeze in a second passenger, too. A weekend jaunt to London might seem cheeky, but if you live in a hub city on the East Coast, the flight's not so bad. And, believe it or not, 100,000 Chase Ultimate Rewards is enough to cover your flight and three nights at a desirable hotel, helping you plan a European getaway from a single credit card offer. Start by transferring Ultimate Rewards to Virgin Atlantic and looking for dates with affordable economy reward flights. Unless you're traveling over the summer or a major holiday, there's a good chance you'll find rewards under 10,000 points each way. To fund your hotel stay, move Ultimate Rewards into your World of Hyatt account. The Category 5 Hyatt Regency London Albert Embankment costs 20,000 points per night and is within walking distance to major sites like Westminster Abbey or the Tate Britain. Since the cost of a flight and three nights in a hotel is under 100,000 points, you'll have some rewards left to spare. You can cash some out as a statement credit to offset the taxes and fees on your award flight or pay for meals and attractions in London. Alternatively, treat yourself: Upgrade one or both directions of your trip to premium economy, choose a more luxurious hotel or bring a friend. Chase Ultimate Rewards is an incredible currency when it comes to travel. While 100,000 points can be an excellent starting budget for major trips, it could also fund a weekend trip in full. Either way, turn those points into unforgettable memories and start planning your next adventure. Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results. Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author's alone and have not been provided, approved, or otherwise endorsed by our partners.
