Credit Cards Online Information

Question: What's the best cash-back credit card?

Answer: Cash rewards cards are the cards of choice among credit customers surveyed by Synergistics Research Corp. And no wonder. Even a $15 rebate can pay for a movie ticket and a box of popcorn.

To determine which cards are most rewarding, Kiplinger's assumed that you spend $35 a week on gas, $100 a week on groceries and $1,000 a month on everything else, including $100 at the drugstore and $100 to watch movies, at home or at the theater.

Our winner: Chase Rewards Plus Visa (www.chase.com), which gives a 5 percent rebate on all the basics -- gas, groceries and drugstore items -- plus 1 percent on other purchases. There's no fee, and the interest rate can be as low as 13.24 percent. Total annual rebate in our scenario: $493. You can choose cash, gift certificates or airline tickets.

In second place is the Citi Dividend Platinum Select card (www.citibank.com). It also gives a 5 percent rebate on purchases of gas, groceries and drugstore items, plus 1 percent on everything else. But it has an annual rebate cap of $300. There's no fee for the card, which charges 17.49 percent interest.

Third-place finisher National City Everyday Rewards Elite Visa (www.nationalcity.com) rebates 4 percent on gas, 3 percent on movies and video rentals and 2 percent for food-related spending at grocery stores and restaurants. Everything else earns a 1 percent reward -- but only after you spend $10,000. Below that, you earn a measly 0.25 percent.

In our scenario, you'd pocket $281. Prime borrowers qualify for a rate of 11.74 percent.

Question: How do I get out of credit card debt?

Answer: Negotiate lower rates with your bank, says Scott Bilker, founder of DebtSmart.com and author of "Talk Your Way Out of Credit Card Debt." Let the issuer know that you've been using its credit card or that you will start using it if you get a better deal. Read the customer service representative a few of the low-rate offers you've received in the mail to illustrate your options.

Ask the issuer to waive late and over-limit fees. Banks always waive fees the first time you're delinquent. Even if the fee was charged months before, ask to have it credited to your account.

Get rid of annual fees. If an issuer won't waive its fee, ask to be switched to another of the bank's cards that doesn't charge one.

# posted by Medical Information : 4:40 AM