10 reasons to use a credit card – Part 7: Rental car insurance

For those of us that travel and drive often, rental car insurance is a pretty big concern. You hit the road with a car that you have never driven before, and drive hundreds of miles a day to see the Grand Canyon, the Yosemite, the Hoover Dam,….

The Grand Canyon, courtesy of Papillon.

Accidents are a real risk, and can ruin your trip, especially when you are thousands of miles away from home in unfamiliar territory. Rental car agencies understand the fear, and sell product that insures you against rental car accidents. Added together, these insurance products can be more costly than the cost of renting the car itself.

car accident

One of the most popular insurance products for rental cars is collision damage waiver, a policy that releases you from the liability for any damage taken on the car during the rental period. This service usually costs around $15 plus tax a day. It’s really not a bad idea to pay $15 a day for the peace of mind. But if you travel a lot, it adds up quickly.

Continue reading 10 reasons to use a credit card – Part 7: Rental car insurance

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Today’s feature: Bank of America BankAmericard Travel Rewards credit card review

One of the most lucrative travel rewards credit cards
One of the most lucrative travel rewards credit cards

I reviewed Bank of America’s BankAmericard Cash Rewards credit card in this post: Anatomy of a credit card: Bank of America BankAmericard Cash Rewards review

Next in the line is Bank of America’s BankAmericard Travel Rewards card, one of my favorite credit cards, and one of the most under-rated rewards credit cards.

Continue reading Today’s feature: Bank of America BankAmericard Travel Rewards credit card review

Closing a credit card: let’s get the facts straight

There are so many myths surrounding the issue of credit card closing I thought it’d be helpful to dedicate a whole blog post to this topic.
Why should you close a credit card? Well, there are several reasons:

  1. The credit card is pure junk, such as one of the worst credit cards in America which are listed here: http://abcnews.go.com/blogs/business/2012/10/6-worst-credit-cards/ – No questions about this.
  2. The credit card carries an unsustainable annual fee, such as most loyalty and transferable points cards (if you’re not familiar with reward credit cards, check this post out). Many cards of these types waive the first year’s annual fee, and many consumers don’t find them worth keeping beyond the first year.  Continue reading Closing a credit card: let’s get the facts straight

Credit cards for credit builders: what are your options? – Part 3

Option 3 for credit builders: secured credit cards

I have previously described my personal experience with Bank of America’s Bankamericard Cash Rewards secured credit card. A secured credit card is a risk-free way for financial institutions to extend you credit: the money you deposit is also your credit limit. In other words, you spend your own money; the bank doesn’t lend you anything. Yet you still have the opportunity to build up your credit profile by making on-time payments which would be reported to the Consumer Reporting Agencies (CRA’s). Continue reading Credit cards for credit builders: what are your options? – Part 3

Credit cards for credit builders: what are your options? –Part 1

When I opened this blog, I had in mind the picture of myself back in January 2012, half a year out of college, and having no credit. Today, it is about a year from that, and many from the next generation of college graduates are probably having the same credit situation as I was. I was lucky to be well-guided by knowledgeable friends, and I thought it’d be my turn to provide a mini-guide for those looking to obtain their first credit card.

To recap what I wrote in my most popular post to date: Introduction to personal finance, here are the 3 main reasons you need a credit card in order of importance: Continue reading Credit cards for credit builders: what are your options? –Part 1