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142

The offer of an increased credit limit may be a sign of increased confidence. However from a bank's point of view it is an attempt to get you to spend more and thus make more money from you. Decreasing your APR however will result in them making less money from you. There is no equivalence.


85

The catch is that you are paying the extra cents for nothing but miles. If you want to "boast" that you earned 10 miles per dollar, you have to also note that you paid $4.00 for $3.20 worth of coffee. While 1-2 miles per dollar is a decent rate for a kickback when you are spending money on other things, if you are outright buying miles you should expect to ...


69

They Do this using the Merchant Category Code. See https://en.wikipedia.org/wiki/Merchant_category_code. This is assigned to the merchant when they sign up with the bank that is going to handle their payments. And this code will be part of the meta-data that gets associated with the transaction that you do.


56

I see three possible reasons: He doesn't have a secure way (or any way) to manually enter card details. Most payment terminals have a keypad and can support manual entry (or PINs), but everything else in the ecosystem has to as well. If he doesn't have a way (or doesn't know how) to get the terminal to prompt for manual entry, then that's not an option. ...


56

Imagine that you pay cash for everything and every day you come home and put your change in a jar. Say you have a month's spending: 3.40, 2.60, 7.10, 8.90 Now you have 22 dollars spent (gone forever) and 2 dollars of loose change sitting in your jar. What will you do with that two dollars: (a) spend it to buy 100 airline miles, or (b) literally anything ...


31

If I end up rounding even $20 I'll end up with 1000 miles and so roughly $10 to $12 in AA value. So you'll be spending $20 to get $10 to $12 worth of miles? You seem to be confusing earning mile as a bonus versus outright buying miles. If you spend 80 cents to get something that costs 80 cents, and you also get 40 miles, that's 40 bonus miles. If you ...


27

Using the physical card or not are two different scenarios, namely "Card Present" and "Card Not Present" (also known as MOTO as in Mail Order / Telephone Order). They may involve different contracts, different rates, different risks, and different equipment. Some contracts will simply not allow Card Not Present transactions. You need to actually use the ...


16

They don't (through this route at least) know what you're buying, just where. So if you go to your gas station and buy food and no fuel it will display just the same as if you bought fuel. I've just checked one of my cards, and the instore cafe at the supermarket shows up exactly the same as buying groceries ("Grocery Stores, Supermarkets") but the petrol ...


15

You are misunderstanding utilization. You do not need to carry a balance past the due date to create utilization, in general carrying a balance past the due date is not a good idea. The best practice is to always pay off each month's balance when you receive your statement. (I'm sure there's some tiny exception in there somewhere, but for normal people--just ...


15

Let's deal with these issues one at a time. Having unpaid debts will not result in your girlfriend being refused admittance to the US. As a citizen she cannot be prevented from entering the US. Nor can she have her citizenship removed because of debt. If she returns to the US then she may be pursued by the credit card companies, or by debt collection ...


12

You're getting miles for 2 cents per mile on the round-up portion (80 cents -> 40 miles). The travel blog I most often read for miles hobbying estimates American's value at 1.4 cents per mile, based on redemption value and availability/ease of getting an award. If you are otherwise close to a reward limit or status, then this could be a great deal for you, ...


12

I've written a number of answers to this effect but my philosophy is just call and ask. Always be nice, but just ask. The worst possible outcome is no change. You can rationalize your way to any outcome. No, they won't lower this because this stream of logic. Yes, you can do this because of this stream of logic. You never carry a balance so the ...


12

To answer the question, yes, you can get a car loan to "buy" a car from your spouse. You can even get a car loan on a car that you already own outright! Now, the bank may ask why you are doing this any you may not get a great interest rate (since it's a sign that you are cash-poor), but it is possible. But, I don't think you need to. We know dealerships ...


11

Is getting a credit card a wise financial decision? YES. I like my credit cards (plural!) because they offer much better fraud protection than does a debit card. For example, if someone gets my card number, CVV, etc and makes a large charge, I call the bank, have them send us new cards (with different numbers) and go about life while the bank decides if ...


9

I'm not in the UK, but just a matter of observation: My wife was recently declined for a credit card based solely on the fact she is 6 months pregnant and will soon be on maternity leave. No, you're wife was declined because her financial situation was presented as it would be negatively affected. She likely would have been declined if she said she was ...


8

I don't think any of the other replies mentioned it, but the value of an 'airline mile' is also being intentionally obfuscated by many carriers today in what is a rather obvious way to devalue them. This radio show covered it just 2 days ago: https://www.marketplace.org/shows/marketplace-morning-report/05282019-markets-edition/ In short, several airlines ...


8

The financial media, who are paid by car and credit companies, will tell you that building a credit score is of the utmost importance. Why would you believe otherwise? They will tell you to take out loans and pay interest with the sole purpose and intent of building credit. If your goals are to drive a fanciest possible car and live in the fanciest ...


8

The pitfalls are: not paying it off during the so-called 0% time limit, and accumulating more debt in the meantime. the balance transfer is rarely 'free', it's common to have a 3% fee/$25 minimum once a balance transfer offer has been accepted, the account becomes a revolving charge account and the "grace period" during which new charges don't get charged ...


7

From your question it seems like you are attempting to calculate the total interest based on one cut-off amount whereas credit cards calculate the interest on a daily basis. They arrive at DPR (Daily Periodic Interest Rate) by either dividing your Annual Percentage Rate (APR) by 360 or 365. So in your case it is 0.071% or 0.069% based on how your card ...


7

The pregnancy is a red herring as such, they have not declined you to do with the pregnancy, they have declined due to a expected decrease in income that takes you below the threshold required to get the loan. protected characteristics like pregnancy can't be used to discriminate, but your income is not a protected characteristic , and the protection doesn'...


7

Some people can only avoid impulsive overspending if they have the risk of a declined card hanging over them. But if you have managed to save up ten times your income without playing such games, then plainly you're not one of those people. Spreading your spending across several cards can be a useful way to track your budget -- it's a simple low-tech way of ...


7

It's not a bad idea; it's -- as explained by void_ptr -- a fruitless idea. The rest of us who had (or have) CC spending problems (except for Ramseyites1) just stick them in "the back of the sock drawer" and use a debit card until such time as they've paid off all CC debt and have ingrained the habit of living below their means. . I stuck mine in a basket ...


6

Other answers have corrected your misconceptions about the offer. Here is a blog post considering the offer under its actual merits: https://onemileatatime.com/barclaycard-aviator-card-flight-cents/ In addition to considering whether paying 2 cents per mile is worth it, you also should consider whether it is worth the opportunity cost of earning the base 1 ...


5

The reason I would consider most likely is "liability shift". When a card transaction is flagged as fraudulent, the issuer will check whether the merchant who accepted the payment met agreed standards of: Security: is the payment system properly isolated, access to card details strictly controlled, etc Authentication: did the customer provide evidence that ...


5

You asked a few questions in your last paragraph. Let's take a step back before answering them, to understand the context. Essentially, a credit score is an number that's used to predict a consumer's chance of default within the near future. As such, it's used by financial institutions (and sometimes other entities, i.e. employers, service providers, etc) ...


5

I have recently started seeing it in my accounts in Credit Karma. It shows all of the utilization under my name. I was expecting it to show under my wife's account. Is this correct or is this a quirk with Credit Karma? Many people add an authorized user to their account (for example a child or a parent) to improve the credit history of the new user. ...


4

Google pay delegates payment processing to other providers who are charging the merchants fees already. They do not charge their own fees (from https://developers.google.com/pay/api/faq): Does Google Pay charge any fees? Google Pay doesn't additionally charge users, merchants, and developers additional fees to use the Google Pay API for payments. ...


4

Have your friend shop with other institutions, perhaps their employer's credit union, if they have one. Many financial institutions will allow a customer with no credit history to open a secured credit card. Some FIs will also offer guidance or counseling on how to get started with credit. A secured credit card is basically an account where you deposit the ...


4

They sent you the SMS as a courtesy. Bank refund transactions don't happen instantly. "Will reflect in your credit card shortly" is bad grammar. It should read "Will reflect on your credit card shortly". Which means that you'll see the refund soon on your credit card.


3

Short answer: The extra 80¢ you spend on coffee doesn't pay for the 40 miles you earn. In the US, the average mile price is 1.4¢, but you paid 2¢.


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