Barclaycard® Rewards MasterCard® Review for 2013

The best-selling credit card is the Barclaycard® Rewards MasterCard®, which provides a 0% opening APR on balance transfers and purchases. 

It also provides speedy collection of points with bonus points after the cardholder’s 1st purchase or balance transfer, and double points while utilising the card for the grocery store*, gas, and utilities.

The Barclaycard® Rewards MasterCard® offers 3 other variations, depending on your credit rating:

• average credit (no intro. APR or balance transfer benefits)
• good credit (this review is focussed on this version)
• excellent credit (with 0% APR for 12 mo. & up to 10,000 bonus points!)

Note: all the "Apply Now" buttons and other BarclayCard® links on this page take you to the good credit version.

APR for Purchases

The Barclaycard® Rewards MasterCard® comes with a 0% introductory APR that's in effect for the 1st six months (12 months for excellent credit version) the account is open. After that period, the rate adjusts to a variable APR that is presently tiered at 14.99%, 17.99%, or 24.99% depending on creditworthiness & reward benefits. When the introductory APR expires, the minimum interest payment on cards carrying a balance is $2.00.

The opening APR can be eliminated early in the event from a late payment, in which case a penalty APR of up to 30.24% may be applied. Even during the introductory period, it’s important to make all payments promptly.

Balance Transfers

For balance transfers, it's 0% APR for the first 6 months. Likewise, after six months, the interest on balance transfers moves to the same three levels as for purchases: 14.99%, 17.99%, or 24.99%. 

Fees

This card has no yearly fee. It does charge a fee for balance transfers: the greater of $10 or 3% for the first 15 months, and the greater of $10 or 4% after that. Cash advances come with a fee equivalent to the greater of $10 or 5%, along with an APR of 25.24% on that portion of the balance.

Either a late payment or a returned payment brings a fee of “up to” $35.

Reward Points

Barclaycard® Rewards MasterCard® offers two Rewards points for every dollar spent on “day-to-day purchases,” such as gas, groceries, and utilities*. It also offers one point per dollar on everything else, and 5,000 bonus points awarded after the first purchase or balance transfer. Points can be saved for statement credits; they're applied to any purchase on the previous statement of $25 or more, at a rate of 100 points per dollar redemption. The bonus 5,000 points are worth a statement credit of $50. Rewards points don't expire, so long as the account remains active and in good standing.

My Take

The Barclaycard® Rewards MasterCard® provides a fantastic 0% APR opening period of a full year on purchases and 15 months on balance transfers. The reward redemption choice is limited to purchase reimbursement, and the interest after the opening period is rather high, but the card remains a good option for consumers who want to use the introductory period to pay down balances and can pay off the balance in full every month after the first year.

Apply for Barclaycard Rewards MasterCard

5 Reasons You Should Have Credit Building Prepaid Cards

Prepaid Cards are issued against your own deposits with the concerned financial institutions that facilitate the same. A certain amount needs to be deposited for entitlement of a credit card and you spend as much as you deposit. Prepaid cards help you to build your credibility amongst others. Their unique features make them popular and increase their demand amongst large section of people across the globe that prefers this unique mode over other methods.

Enhance trustworthiness

Credit building credit cards are a good source to increase your credibility amongst the banking institutions, your friends and the vendors. Such cards do not permit more amount than the one deposited by you. So you are not in a position to release payments more than that. As you remain within your limits, only the genuine expenses will be made by you and you won’t go in for overspending that result in the enhancement of your credibility amongst others.

Avoid extravagance

As aforesaid, the credit cards are provided against your deposits by the financial companies. You can withdraw or purchase within the deposit limits of your credit cards that do not allow you to spend more than that. This way you save from making any additional expenses and ensure a secured amount with you. However, if there is no limit upon your spending through the credit cards and you are allowed to withdraw more amount than that of your deposits, you may spend more.

Easily available

Since the credit building credit cards are issued against your own deposits, the banking institutions provide with a smile without any much formality. You are not required to submit any salary proofs or fulfil additional documentation for issuance of such cards. In fact, the companies engaged in this business are happy to do the same because they get deposits for a considerable time against which they don’t pay much interest to you. As such, they don’t ask much about your credentials or credit history. Just make the deposits and be a proud owner of such credit building credit cards.

Convenience and security

The credit building prepaid cards are easy to carry. Just put them in your pocket and carry them anywhere you are going. While receiving such cards, you are issued a personal code for withdrawals or making payments for your bills. This way you save from any duping or deceit by the unscrupulous persons who often intend to rob you through their dishonest actions.

No extra charges

Since it is your own money that you withdraw or spend against your deposits through the credit building prepaid cards, the institutions that issue the same don’t charge anything for their valuable services. Thus you are saved from the banking charges through such prepaid cards whereas the other modes of payments may require you to pay the requisite charges. Some banking institutions do charge against their other services to the customers whereas no such charges are applicable in respect of the credit building prepaid cards that are released against the customers’ own deposits.

How Credit Card Reward Programs Can Help You Save Big

In today’s consumer-driven society, few people in the United States do not use credit cards on a regular basis. Credit cards have been increasingly prominent in the U.S. economy since the late 1970's and the concept of making purchases with a credit card dates back further than that. 

In recent years, credit cards have received a negative reputation due to the high levels of debt carried by many Americans and the fees and penalties card companies often impose. However, credit cards, especially rewards cards, can provide benefits far greater than the potential downsides if handled responsibly. 

To compare the top reward credit cards, utilizing comparison sites like www.ratesupermarket.ca can be very helpful. Comparing rewards, rates and understanding introductory periods can go a long way to helping you utilize the convenience of using a credit card, without offsetting the savings by tricking yourself into spending too much, too often. 

Background of Rewards Credit Cards 

Although credit cards were given to consumers far more freely prior to the market downturn in 2008, it is still fairly easy to secure credit so long as your credit history is not poor. Many different kinds of cards exist, but the card the average consumer will find to be most beneficial is the rewards card. Many different companies and banks offer rewards credit cards with a variety of different perks and privileges. These cards allow consumers to earn points, miles, or percentages off purchases with frequent use. 

Credit card companies benefit from these rewards cards as well: since customers are encouraged to pay with their credit cards to earn rewards, companies receive higher amounts in fees from their vendors with the increased use. The best cards are often only available to those with a high credit score, so be sure to keep an eye on your credit if you are hoping to earn big rewards from your purchases. If you have average credit, however, this does not mean you will not be approved for a rewards card. Many different rewards cards exist with varying credit expectations. 

Kinds of Rewards Cards 

Rewards credit cards come in many different varieties. Some are store- or vendor-specific, meaning that the rewards customers can earn are only valid at the retailer the card comes from. Some cards offer specific rewards, like airline miles that can be redeemed for flights. Other cards can be used anywhere and points can be accrued with use anywhere, but purchases at certain retailers can earn further rewards; for example, some cards offer more points when purchasing gas and groceries. 

With most cards, points earned for making purchases can be redeemed for cash, gift cards, or merchandise at the user’s discretion. Some cards offer rewards with any number of points, while others require you hit a certain benchmark. 

Differences Between Rewards Cards 

Some rewards cards are better than others, and the value of the rewards a card offers may relate directly to your personal situation. For example, if you fly frequently for personal reasons, an airline rewards card might make the most sense. If you do not have a specific use for a card in mind, it is best to find a generic rewards card geared toward your spending habits. 

Some cards offer double or triple points on purchases at commonly-used services like gas stations and restaurants. Other cards offer high rewards on certain purchases that rotate throughout the year. Evaluate your own spending habits and search for cards accordingly. Many credit card research sites and forums exist online that can help you compare cards, see what cards your credit score may qualify you for, and get feedback from current customers. 

Conclusion 

There are plenty of necessary expenditures consumers have to make every month, from rent to gas to groceries. When used responsibly, credit cards can be a great tool in helping with your monthly expenses and even building credit. With rewards cards, you can earn while you spend. If you have to spend regardless, why not get a little money back while you do so?

How Credit Cards Cost Us More Money

 (Photo credit: Wikipedia)

Some of us grew up in the days before credit cards were terribly prevalent. Forty years ago, you might have had a department store credit card, or perhaps a credit card for a gas station. Visa and MasterCard were around, but they didn’t have the kind of widespread acceptance they do today.

While the days of cash may be dwindling, some new research is shedding light on just how this shift has affected consumers. The method we choose to use for payment has a significant impact on what we choose to buy. Some new research from Professors Promothesh Chatterjee and Randall Rose of University of Kansas and University of South Carolina respectively suggests that this impact is significant, and even affects how we remember a purchase after the fact.

Cash means a focus on cost

In the study, customers who were primed to use cash for a given purchase came out as much more concerned about cost than they were concerned about benefits. For example, here are some of the observations in the study

• Cash customers responded more quickly to cost-related words.
• Cash customers had greater recall of cost-related aspects after the fact.
• Cash customers exhibited recall problems with benefit-related words.
• Cash customers often choose less expensive products, even those with inferior benefits.
• Cash customers were more likely to identify a wide range of cost factors beyond just price, such as installation or delivery costs, warranty costs, and even delivery time.
• Cash customers experienced more of the pain of payment. Every time a transaction takes place, money goes away while the consumer watches.

As you might expect, the opposite is often true when it comes to those customers who use credit cards.

Credit cards mean a focus on benefits

Those customers who were primed to use credit cards weren’t nearly as focused on costs as cash customers. Here are some observations from the study about credit card customers:

• Credit card customers responded more quickly to benefit-related words.
• Credit card customers had greater recall of cost-related aspects after the fact.
• Credit card customers exhibited recall problems with cost-related words.
• Credit card customers often chose indulgent or high-image products.
• Credit card customers made more cost errors than cash customers.
• Credit card customers experienced less pain of payment, because the process of consumption is decoupled from the payment process.

What this means, at least in part, is that customers using credit cards came out of the study as being much less concerned with cost than they were with what the given product could do for them.

Choosing the right payment method at the register

What does this mean for older Americans? Really, it reinforces something we probably already know: using credit cards can cost us more money. This is true not only because of the interest or fees we often face with credit cards, but because of the way paying with a credit card affects our choices as consumers.

If you want to make smart financial choices, let payment method be a factor in how you shop.

David Rodwell is an experienced writer who covers everything from business to personal finance. Check out his site CreditCardProcessing.net for similar articles.