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Business Insider
a day ago
- Business
- Business Insider
3 ways to avoid getting burned by exchange rates and fees when traveling overseas this summer
If you earn your paycheck in US dollars, it's a tough time to be traveling abroad. As foreign investors turn away from US assets amid President Trump's trade war and a growing national debt, the value of the US dollar relative to other currencies is down by around 10% since Inauguration Day to its lowest level since early 2022. But if you're not careful, your effective exchange rates can spiral higher. Chris Kawashima, the director of Charles Schwab's Financial Planning division, recently shared three ways to save money on your next trip when it comes to foreign exchange rates and transactions. First, be aware of foreign transaction fees associated with your credit or debit card, Kawashima said. Many credit card companies will charge up to a 3% fee. On top of that, the bank behind your credit card company may also charge a similar fee. Some common credit cards with no foreign transaction fees include the Chase Sapphire Preferred Card, Citi Strata Premier Card, and Capital One Venture Rewards Credit Card. Card readers will also sometimes offer you the option to pay in the local currency or in USD. In those cases, pay in the local currency, Kawashima said, because the exchange rates are usually poor and will leave you paying a higher price in the end. "Many travelers are enticed by the convenience and familiarity of receiving bills—at restaurants, for instance—in U.S. dollars," Kawashima said in the post earlier this month. "But this new trend, called dynamic currency conversion, can come with an unfavorable exchange rate, transaction fees, or both." A good way to avoid fees altogether is to pay in cash. But getting hold of foreign cash without paying a hefty price can also be challenging for two reasons: exchange fees and unfair exchange rates. To avoid steep fees, perhaps minimize how many times you're getting cash out. You may also want to get the cash before you leave at your bank or credit union, which usually offer some of the best exchange rates available, Kawashima said. "It's best to check ahead, however, to confirm that they have the foreign currency in hand as well as to check on the conversion rate," Kawashima said. "Once you arrive at your destination, you might be able to get a decent exchange rate at your hotel as well."
CNBC
29-05-2025
- Business
- CNBC
Does APR matter if I pay off my credit card each month?
If you've ever owned a credit card before, chances are you're familiar with the term "APR," or annual percentage rate. For specifically credit cards, your purchase APR is essentially your interest rate, or the cost of borrowing money. But for those cardholders who pay their balance off on time and in full every month, their APR really doesn't matter. Let's see how managing your credit card payments can help you avoid interest entirely. Credit cards often have a few different types of APRs, but purchase APR is what many people are referring to when they talk about a credit card's interest rate. Purchase APR is essentially how much it costs to borrow money, which is what you're doing each time you use your card. For any borrowed funds that you don't pay back on time, your bank will charge you interest on the amount that remains unpaid. For example, if you had an unpaid statement balance of $1,000 on a card with a 20% APR, you would be charged an additional $16.57 in interest for that one billing cycle. You can see how credit card balances quickly balloon the longer they go unpaid. To find your card's APR, look at your monthly billing statement or contact your card issuer. Offers in this section are from affiliate partners and selected based on a combination of engagement, product relevance, compensation, and consistent Debt Relief has resolved over $19 billion in outstanding debts since 2002. It offers free credit card debt relief in 2011, Accredited Debt Relief has helped clients resolve over $1 billion in debt. Your purchase APR doesn't really matter if you pay your statement balance on time . Many credit cards have a grace period, which is the time between when your billing cycle ends and when your payment is due. Since credit cards only charge interest on outstanding balances, if you pay off everything you bought with your card for that period, you won't owe any interest. While grace periods are not required to be offered by cards, if they are, they must be for a minimum of 21 days. Paying off your card's balance on time and in full each month isn't just a good financial habit that can save you money on interest, but it also means you're maximizing the value you get from rewards. Let's look at a card like the Capital One Venture Rewards Credit Card, which comes with 5X miles on hotels, vacation rentals and rental cars booked through Capital One Travel and no foreign transaction fees. If you pay off your card's balance each month, you'll avoid the nearly 30% APR on purchases and balance transfers (!) and it also makes perks like an up to $120 credit for Global Entry or TSA PreCheck that much more valuable. It's a real $120 credit; if you were also paying interest on a balance, it effectively cancels out, or subtracts from, that credit you're getting. Good to Excellent670–850 19.99% - 29.24% variable $95 Earn 75,000 miles Terms apply. Read our Capital One Venture Rewards Credit Card review. The Capital One Venture Rewards Credit Card has a reasonable annual fee and earns flexible travel rewards, which makes it a great travel card for beginners or heavy travelers.$0 at the Transfer APR, 4% of the amount of each transferred balance that posts to your account at a promotional APR that Capital One may offer to you None We can apply the same thought process to a cash-rewards card like the Wells Fargo Active Cash® Card. With this credit card, you can earn a flat-rate 2% unlimited cash rewards on purchases while paying no annual fee. If you use this card and pay your bill on time and in full each month, you're essentially getting 2% cash rewards of what you spend back to you for no extra fees. On Wells Fargo's site On Wells Fargo's site Good to Excellent670–850 19.24%, 24.24%, or 29.24% Variable APR $0 Earn a $200 cash rewards bonus See rates and fees. Terms apply. The Wells Fargo Active Cash® Card is great if you want simplicity thanks to its flat-rate 2% unlimited cash rewards on purchases and $0 annual balance transfer fee of 3% for 120 days from account opening, then up to 5%, min: $5 3% Remember that rewards and welcome bonuses on new credit cards are really most valuable when you pay your credit card on time and in full every month. If you find yourself carrying credit card balances month to month, it's something you should address ASAP. It's likely that your credit card's APR is the highest interest rate you're being charged out of all your debts so it should be prioritized. Cut out other spending, like monthly subscriptions, until that balance is paid off entirely. And if it's a sizable amount of credit card debt, consider a balance transfer card where you transfer your outstanding balance to a credit card that has an introductory zero-interest period. That gives you time to make payments to your balance without accruing more interest. With the Citi Simplicity® Card, for example, you'll have a 0% intro APR for 21 months on balance transfers from date of account opening — nearly two years — to pay off your debt entirely (after, 18.24% to 28.99% variable APR). An intro balance transfer fee of 3% of the amount you transfer ($5 minimum) applies to transfers you make in the first four months, after that a fee of 5% of the amount you transfer applies ($5 minimum). Receive a 0% Intro APR for 21 months on balance transfers and for 12 months on purchases from date of account opening. Good to Excellent670–850 18.24% - 28.99% variable $0 None See rates and fees. Terms apply. Read our Citi Simplicity® Card review. The Citi Simplicity® Card may not earn rewards, but it can still save you money due to its amazing intro-APR offers. There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5). 3% Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here. At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Yahoo
17-05-2025
- Business
- Yahoo
Do millionaires use credit cards? Yes, and so should you.
If you use a rewards credit card, you're more like a millionaire than you may think. Although most adults have credit cards, millionaires are even more likely to use them. According to the Federal Reserve, almost all adults with incomes over $100,000 have a credit card in their name. But if millionaires are so wealthy, why do they rely on credit? Credit cards provide plenty of benefits, even for the super-wealthy. However, you don't need a seven-figure net worth to take advantage of those benefits. Millionaires use credit cards thanks to the convenience and perks they provide. These are some of the key benefits of using a credit card — even for people who can easily afford any purchase in cash: Millionaires earn valuable rewards by using credit cards, from paying for groceries to buying clothing. For example, some cash-back cards offer 5% back on certain purchases, or you can use a travel credit card to earn points or airline miles that can be redeemed for travel. Consider a card like the Capital One Venture Rewards Credit Card. This credit card offers a base earning rate of 2x miles on all eligible purchases. If a millionaire makes $50,000 in purchases, that's 100,000 miles (equal to $1,000 toward travel). That's not a bad return for purchases they're already making. In the case of average consumers, we don't have to spend like millionaires to earn lots of rewards. If you have upcoming large expenses, you can time paying for them with a new card and earn a credit card sign-up bonus. This can immediately boost your rewards bank without any need to overspend. Millionaires use credit cards because many credit cards automatically give you added protection and coverage. For example, the Chase Sapphire Preferred® Card offers the following protections: Auto rental collision damage waiver Baggage delay insurance Extended warranty protection Lost luggage reimbursement Purchase protection Roadside dispatch Travel accident insurance Travel and emergency assistance services Trip cancellation and interruption insurance Trip delay reimbursement Some cards, like the Ink Business Preferred® Credit Card and Wells Fargo Active Cash® Credit Card, offer cell phone protection. It's one thing to make a lot of money, but it's another to hold on to that money in different ways with good money habits, such as protecting your purchases. And certain credit cards provide an easy way to make sure you have automatic protections in place on qualifying their incomes, millionaires still face some of the same annoyances or stressors while traveling, such as long lines at the airport. By using a card like the Capital One Venture X Rewards Credit Card, they can make the experience less stressful by utilizing the following perks: TSA PreCheck or Global Entry fee credits: You can receive up to a $120 credit for Global Entry or TSA PreCheck application fees. Airport lounge access: Cardholders receive complimentary access to Priority Pass and Capital One Lounge locations. Travel concierge: Credit card concierge services can assist you if you need help booking reservations or finding a good hotel. They can even help you secure event tickets, refer medical or legal services, and assist with other of the reasons why millionaires use credit cards rather than cash or debit is because of the protection against fraud they provide. In most cases, if a credit card is lost or stolen, your maximum liability for unauthorized purchases is $50. By contrast — depending on how quickly you report the charges — you may be responsible for the entire amount of unauthorized transactions with a debit spending with cash can be difficult. Tax season can be especially challenging unless you keep diligent records and store your receipts. Credit cards allow you to sync your accounts with your favorite budgeting or bookkeeping software. You can quickly view your records to see how you've historically spent money, trends in your spending habits, and even look up specific transactions from the past. These records can make finding your charitable donations, medical expenses, and other potential deductions easier at tax cards are often much more convenient than cash or paper checks. You don't have to worry about stopping at an ATM to make a withdrawal with your debit card, and you can add your credit card to your phone to make contactless or mobile cards for wealthy people include the American Express Centurion Card (Amex Black Card) and J.P. Morgan Reserve Card. However, rich people use various types of credit cards that are generally available to anyone who qualifies, such as The Platinum Card® from American Express and Chase Sapphire Reserve®. Note that many popular travel cards typically require at least a good credit score. Rich people have the money to pay off credit card debt and don't have to carry credit card balances, so they don't have to worry about high interest rates or annual fees. Rather, they can focus on the benefits of credit cards, like earning rewards to continue to build wealth, taking advantage of travel perks, and using card protections and insurance. They get many of the same benefits that the average cardholder can get from credit card companies, including: Opportunities to build credit Rewards on eligible purchases Card protections and insurance coverage Travel perks, such as airport lounge access Expense tracking Convenient payment method Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank's website for the most current information. This site doesn't include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.
Yahoo
13-05-2025
- Business
- Yahoo
Can you pay college tuition with a credit card? Yes, but think twice.
It may appear to be a clever life hack: If you have a rewards credit card, use it to pay for your college tuition to earn valuable rewards. Depending on the type of school you attend, college tuition averages $11,610 to $43,350 per year, according to the College Board. By paying the bill with a rewards credit card, the amount of points, miles, or cash back you'd earn could be substantial. However, you might have to pay a service or convenience fee to use a credit card, so it's wise to consider the pros and cons and review different financing options. If your college's student bursar office allows credit cards as a payment option, there are definitely some advantages to using one. Rewards credit cards allow you to earn points, miles, or cash back on eligible purchases. Considering that tuition payments can be thousands of dollars, your potential rewards could rack up quickly. For example, let's say you owe $10,000 for tuition. With a card like the Capital One Venture Rewards Credit Card, which offers unlimited 2x miles on eligible purchases, you could earn 20,000 miles (worth $200 toward travel). Some credit cards attract new cardholders by offering special sign-up bonuses. New cardmembers who meet the cards' spending requirements within a specific period can earn added rewards. If you use your card to pay for your tuition bill, you can quickly meet any necessary spending requirements for a credit card welcome bonus and qualify for bonus rewards points, cash back, or miles. If you have good credit, you could qualify for a card that has a promotional APR. Most 0% APR credit cards offer an introductory 0% APR on purchases for a limited time, such as 12 to 18 months. After that, the regular APR applies. With a promotional APR, you can essentially finance your tuition costs at 0% interest over several months. However, you must pay off the card's full balance before the promo APR expires. At that point, any amount remaining on the card will begin accruing interest. Read more: How does credit card interest work? Although the idea of using a credit card to earn rewards or to qualify for sign-up bonuses can be appealing, there are some significant downsides: Many colleges and universities permit credit card payments, but that's not the case for all schools. Some colleges prohibit using credit cards to pay tuition or other school-required fees. If your college doesn't permit credit cards, you'll need to find another financing option. If your college allows credit or debit cards as a payment method, be aware that there can be an added cost for the convenience of using plastic. Colleges often charge service fees, which can range from 2% to 4%, depending on the school. For $10,000 in tuition, that's potentially a fee of $200 to $400. Such a high fee could negate the value of any rewards you may earn with your is already very expensive, and you need to be aware of how credit cards, with their APRs, can add to that cost. Credit card rates can often go well over 20%, and if you don't pay off the balance in full by the end of your billing cycle, interest charges can build rapidly. Student loans, on the other hand, generally charge much lower rates and come with more built-in protections for college students. Let's say you owe $10,000 to your college. Here's a look at how interest costs affect what you pay, and how a credit card could compare to a federal student loan. [there's a table in the original article here]Unless you have access to a lot of available credit, charging a large expense like college tuition to a credit card will likely impact your credit utilization ratio. This represents the amount of credit you're currently using in relation to the amount that you have available. The lower your credit utilization, the better it is for your credit score. If you're carrying a large credit card balance, it may make it harder for you to borrow money later — including forms of debt like private student loans. Credit cards typically involve high interest rates and fees. As a result, using a credit card to pay for your tuition may only make sense if you have a 0% APR offer or if you have the money to pay off your credit card bill in full by the end of the billing cycle; with either approach, you could earn rewards and avoid interest charges. But if you charge your tuition to your credit card and must eventually pay interest fees on it, there are safer and more affordable ways to finance your education. Consider the following options first: Fill out the Free Application for Federal Student Aid (FAFSA) to apply for federal aid, including federal grants and work-study programs. Colleges also use the FAFSA to decide whether you're eligible for institutional aid, including grants. Additionally, you can apply for private grants or scholarships through sites like FastWeb or These awards generally don't have to be repaid, so they can make college much more colleges have payment plans that allow you to make payments toward your tuition bill in monthly installments rather than having to pay it all at once. These plans are usually interest-free, but they may have a small enrollment if you need additional financing, student loans can help cover the remainder not paid for with scholarships or grants. You can take out federal or private student loans to cover up to 100% of the school-certified cost of attendance. While debt is never ideal, student loans typically have significantly lower rates than credit cards, with more flexible repayment options and borrower protections. For most students, they make much more financial sense than turning to a credit a great idea if you don't have to pay any additional fees. Large tuition payments can help you earn plenty of rewards on a travel credit card or cash-back credit card, especially if you're eligible for a new cardholder welcome offer. However, it doesn't make sense to use a credit card for tuition if there are high fees or you plan on carrying a balance. Earning rewards isn't worth getting into credit card debt. It depends on your college and its accepted payment methods, but American Express, Visa, Mastercard, and Discover are all commonly accepted if credit cards are an available option. Yes, many colleges charge extra service or processing fees if you want to pay tuition with a credit card. Because of these fees, it might not be worth using a credit card for this expense. However, it depends on the type of fee. A flat fee of $2 or $3 could be worth paying, but a percentage fee of 2% or 3% likely isn't worth paying. This article was edited by Rebecca McCracken Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank's website for the most current information. This site doesn't include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.
