Credit Card Usage And Review Process

From time to time I’ll be reviewing credit card offers. To help create a fair system in which to review the credit cards, I have developed a systematic review process to grade the offers.

I will be reviewing offers that I have an affiliate relationship with as well as those that I do not have an affiliate relationship with. If you click on an affiliate link, it will direct you to a sign-up page for the credit card. If you complete the offer, I will receive some form of compensation for referring you.

Remember, not all credit cards are created equal. Different cards will work for people with different needs. You should evaluate a credit card offer by reading and understanding the disclosures, user agreements, and program rules before you make any credit related decisions.

Readers should also understand these concepts about credit card use.

Credit Card Usage Rules

1. We never* pay an annual fee to use a credit card. No matter how tempting the offers are for cash, points, or mileage, we never pay for credit. The credit card company will make enough money from transaction fees.
2. We don’t care what the interest rate for the credit card is. We always pay our credit card balances in full every month.
3. We don’t care what the balance transfer fee is. We never transfer balances, because we don’t carry a balance.
4. We don’t care what the late payment fee is. We never pay our bills late.
5. We don’t care what the returned payment fee is. We always ensure we have enough in our checking accounts to pay our bills in full.
6. We don’t care what the over-the-credit limit fee is. We keep track of how much we spend and never max out our credit cards.
7. We don’t care what the cash advance fee is. We never take cash advances on our credit cards.
8. We pay little to no foreign transaction fees. We are conscious of fees that increase our costs when we spend money abroad.
9. If we take advantage of a 0% interest credit offer for a large purchase, we will make equal monthly payments to completely pay off the balance at least one month prior to the offer expiration date.
10. We will take full advantage of the best credit card rewards program available.

Credit Card Review Process

Several factors will be considered when reviewing a credit card.

Annual Fee: Is there an annual fee? Credit cards with no annual fees are preferred.

Foreign Transaction Fee: What is the foreign transaction fee? While no fees or low fees for the privilege and convenience of using a credit card for foreign transactions is preferred, it is not necessarily a deciding factor. Consumers have the option of carrying different products for different purposes.

Rewards Program: If the credit card has a rewards program, it will be graded on the generosity of rewards, ease of redemption, limits, and expiration.

Occasionally, I will include additional ratings that draw from my personal experience with the credit card companies.

Customer Service: Customer service is graded on employee listening skills, knowledge, and empowerment. Hold times, automated menus, and ease of human contact will also be weighed.

Website: The website experience is graded on website presentation, ease of use, and breadth of self-help tools.

*An annual fee would only be acceptable in limited circumstances. For example: an airline miles/frequent flyer rewards credit card that has an annual fee may actually offset spending on baggage fees or other surcharges from the airline. A consumer who travels often by air will actually save money by paying the annual fee.