Whether you’re shopping for a new credit card or trying to understand the details of an account you’ve already opened, the Schumer box can be a great place to start your research.
This cheat sheet provides the key details about a credit card account, such as the annual percentage rate you might pay to borrow money, and fees a card issuer may charge you.
What is a Schumer box?
Once upon a time, credit card companies used various methods to disclose the annual percentage rates and fees they charged consumers. However, the system was confusing. It could be difficult for consumers to understand the true cost of borrowing money with a credit card. And comparing one credit card to another was even more challenging.
Enter the Schumer box. In the late 1980s, then-Rep. Charles “Chuck” Schumer proposed legislation requiring credit card companies to use a standardized table to summarize a credit card’s rates, fees and other pertinent details. Congress passed the Fair Credit and Charge Card Disclosure Act of 1988 (an amendment to the Truth in Lending Act), and card issuers had to begin using the “Schumer box” in 2000.
Example of a Schumer Box
Key information you can find in a Schumer box
Credit card issuers follow specific rules when it comes to Schumer box disclosures. Even the font size a card issuer uses has to meet certain standards. For example, the APR for standard purchases must appear in 18-point font. Bold text is also required for certain disclosures. Additionally, there are key details that card issuers must include in the Schumer box to make it easy to understand each credit card’s terms and conditions.
Here is some of the helpful information you can find in a Schumer box:
APR for purchases
The purchase APR is the interest rate a credit card company applies to the purchases you make with your credit card if you don’t pay your full statement balance during the grace period. (Tip: If you follow the first rule of credit card rewards and never carry a balance from one month to the next, you can enjoy the benefits of a credit card without paying interest charges.)
If you’re reviewing a Schumer box that’s part of a credit card application or offer, you might see a range for the purchase APR instead of a single interest rate. The APR a card issuer assigns you will depend on your creditworthiness and other factors.
Related: What is a good APR for a credit card?
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APR for balance transfers
When you use your credit card for a balance transfer, the APR may differ from what you pay for standard purchases. If you take advantage of a promotional balance transfer credit card offer to consolidate debt, your balance transfer APR might be temporarily lower. However, once the promotional APR expires, the balance transfer APR could be equal to or higher than your purchase APR.
APR for cash advances
When you use your credit card for a cash advance, you’ll typically pay a higher APR than for standard purchases. The Schumer box will tell you how much your APR will be on a cash advance. However, it might not make it clear that you’ll probably begin paying interest the same day you request a cash advance instead of enjoying a grace period like you do with the other purchases you make on your credit card.
Penalty APR
If you miss a credit card payment or violate the terms of your credit card agreement in other ways, you risk activating the penalty APR on your account. The Schumer box discloses the (high) cost of your account’s penalty APR if you ever trigger it.
Grace period
If a credit card company offers a grace period, the Schumer box explains how many days you have between the statement closing date and your due date to pay off your statement balance to avoid interest charges.
Related: Important dates to know for your credit cards
Annual fee
A card issuer must disclose the cost of any annual fee it charges (if applicable) in the Schumer box.
Transaction fees
It’s common for credit card companies to charge fees for certain types of transactions like balance transfers, cash advances and foreign transactions. If a card issuer charges these fees, it must list them in the Schumer box.
Penalty fees
Another type of fee that a card issuer might charge you is a penalty fee. These charges include late fees, fees for going over your credit limit, returned payments fees and returned check fees.
Related: What happens if you go over your credit limit?
Where to find the Schumer box
You can check your credit card statement to find the Schumer box for your account if you’re already a cardholder. But if you’re shopping for new credit card offers and want to compare different products online, you can also look for this information on different credit card issuers’ websites.
It’s worth pointing out that locating the Schumer box for individual credit card offers isn’t always easy. But most card issuers provide a link to the information under a phrase like “Pricing & information” or “Rates & fees.”
The following cheat sheet shows the phrase you’ll need to look for on various card issuer websites when you’re looking for the Schumer box to compare credit card offers:
American Express: “Rates & Fees”
Capital One: “View important rates and disclosures”
Chase: “Pricing & Terms”
Citi: “Pricing & Information”
Discover: “See rates, rewards and other cost information”
Bottom line
A Schumer box contains helpful details you can use when shopping for a credit card (or to stay informed about accounts you already have open). Yet there may be additional steps you need to take to choose the best credit card for you. While it’s wise to understand the potential cost of borrowing on a credit card, don’t overlook the importance of comparing the best credit card offers based on credit requirements, rewards and benefits before you apply for a new account.
Note: We’re not encouraging people to go out and sign up for credit cards, especially if you have debt or plan to carry a balance on a card. (The interest you pay will wipe out any rewards benefits.) But if you can control your spending and pay your bill on time and in full every month, Holly’s money hack may work for you. Also keep in mind that your credit score takes a hit each time you open a card, and whatever balance you have on your credit card as of the statement closing date will be reported to the credit bureaus. If you pay the balance in full before the statement closing date, your balance will be reported as $0.
Almost two years ago, we began our journey out of debt. Like the average American family, we had car loans, student loans, and consumer debt. At one point, we were making minimum payments on several credit cards and a loan I took out to buy a Kirby vacuum. I’m serious.
However, getting pregnant with our second child made us realize that we needed to get our finances together quickly. Once we committed to new financial goals, we cut out nearly everything from our life that was “enjoyable.” We said goodbye to cable TV and dinners at restaurants. We quit shopping for fun and only went to the store to get groceries and absolute necessities. Our new budget was cut down to the bare bones…so much so that I hesitated to buy almost anything.
As the months flew by, we began making huge strides against the debt that we had burdened ourselves with. Once we became debt-free, we realized that we had become addicted to our new, frugal lifestyle. Having no consumer debt had freed up a lot of cash to save and invest, and we quickly got serious about building wealth. However, having a strict budget made it difficult to do anything spontaneous like see a movie or have a date night. I began to look for a way to supplement our income with some “fun money” without ruining our short- and long-term goals. It was around that time that I got my first credit card sign-up bonus offer in the mail.
Enter credit card rewards
I couldn’t believe my eyes when I read a direct mailer from a major issuer promoting their new credit card. “Spend $500 in 3 months and earn a $100 statement credit.” Could it really be that easy? Why would they give away $100 in free money? As I read through the disclosures carefully, I determined that there was no “catch.” Truthfully, the issuer was offering a $100 bonus just to get new customers to try their card. As long as I paid off the card in full and accrued no interest, this $100 would truly be free money. Since our grocery spending approaches $500 on a normal month, I knew that we could reach the spending requirement easily and I decided to give it a try. Within the first month, we put our regularly planned spending on the card. The bonus points, equal to a $100 statement credit, were quickly credited to my account. I was hooked.
Soon after that, my husband applied for the same card and earned the $100 bonus just for doing our regular shopping. We then moved on to new cards in order to earn a new sign-up bonus. Another card from that issuer, which had better perks, required that we spend $3,000 in three months in order to earn a $400 statement credit. Since we had some upcoming expenses that could be put on credit, we each signed up. We put two family vacations and our regular monthly spending for groceries and gas on each card and easily earned $800 in statement credits. Since we were going to spend the money anyway, these bonuses were truly “free.” We used the $1,000 that we had earned up to this point on some fun activities with our children. I was also able to surprise my husband with last-minute tickets to see his favorite musical, “Les Miserables,” and a new grill for Father’s Day.
Is this wrong?
Obviously there are some people who would say that we are gaming the system. Their argument may be that the credit card bonuses are meant to secure long-term customers, not to provide some extra cash to take my family to Applebee’s. Some may feel that we are just using the banks for our own gain.
I don’t see it that way at all. Actually, to a certain extent, some of their strategies have worked. For instance, I plan on keeping the perkier card because it has no foreign transaction fees. I have also found that this particular card comes with great customer service. Calling the 1-800 number on the card quickly connects me with a real, live person at any hour of the day or night. I would have never tried the card if not for the sign-up bonus. So, in that respect, I feel that the issuer did earn a long-term customer.
I also definitely do not feel bad that I never pay interest. For every person like me who pays their balance in full every month, there are far too many people making the minimum payment. Additionally, banks earn money from retailers just because they choose to take credit cards as payment. Simply put, when I spend $100 at the grocery store, they have to pay the credit card company a certain percentage of my order.
Moving forward
In the past two months, we have moved our spending from those cards to another issuer’s premium card. Their new offer of “Spend $2,000 in 3 months and earn $250 in gift cards” was just too good to pass up…especially with Christmas just around the corner. Since we will put our gas, groceries, and our entire Christmas shopping budget on the card, we will easily reach the spending requirement and, thus, reap the rewards.
Chasing reward deals certainly isn’t for everyone. However, it has definitely made a difference in our bottom line. It has provided us with some extra money that doesn’t have to be accounted for. I can spend our rewards on gifts or something fun and not feel like I have sacrificed what is important to us. And now that we are completely out of consumer debt, I am actually finding that using credit cards helps us stay on budget. Both of the issuers have websites that make it quick and easy to track what I have spent and where.
Is this strategy right for you?
Before entertaining any credit card sign-up bonuses, I would ask myself a few questions. Are you in debt? If you are in credit card debt, then it is a bad idea to pursue credit card rewards. In fact, you might consider cutting up your cards or putting them somewhere not easily accessible. Work on getting out of debt and staying out of debt instead.
Do you have trouble tracking your spending? If so, then pursuing rewards offers may not be for you. While I tend to use one card at a time, some people try to juggle multiple offers at once and end up getting confused. If you are worried about losing track of your spending, then please skip using credit cards altogether.
Are you worried about your credit score? Remember that applying for new credit too frequently can reduce your score and make it harder for you to get the best rate for a loan. Please take into consideration how applying for credit will affect your credit score and do what is in your best interest.
Do you try to earn credit card rewards? If so, what is your favorite credit card rewards program?
Bank of America Premium Rewards card is offering a signup bonus of 60,000 points (worth $600 cash) after you spend $4,000 on the new card.
Card Details
Annual fee of $95 (not waived first year)
This card may not be available to you if you currently have or have had the card in the preceding 24 month period.
$100 Airline Incidental Statement Credit annually for qualifying purchases such as seat upgrades, baggage fees, in-flight services and airline lounge fees. Only applies to domestic-originated flights on certain U.S. Domestic airline carriers.
$100 airport security statement credit towards TSA Pre✓ ® or Global Entry Application fee every four year
Card earns at the following rates:
2x points for every $1 spent on travel and dining purchases
1.5x points for every $1 spent on all other purchases
No foreign transaction fees
Eligible for Bank of America Preferred Rewards, meaning you can get an additional 25-75% rewards on all purchases. Makes the card earn at the following rates with top tier status:
3.5x points per $1 spent on travel & dining purchases
2.625x points per $1 spent on all other purchases
Points are worth 1¢ each and can be redeemed for cash back as a statement credit into eligible Bank of America or Merrill Lynch accounts or to purchase travel through the Bank of America travel center or to redeem gift cards
Full card review for Bank of America Premium Rewards card can be found here.
Our Verdict
Since its launch in 2017, the offer on this card has been 50,000 points with $3,000 spend. They’re now bumping it up to 60,000 points with $4,000 spend which is nice.
If you don’t have the card, this is pretty easy $600 bonus to meet. It does have the $95 annual fee, which some might be able to offset with the $100 travel incidental credit (see what counts here).
Bank of America has also increased the Elite version of this card to $750.
We’ll add this to our List of Best Current Credit Card Signup Bonuses. Check out these Things To Know About Bank of America Credit Cards before applying.
Getting divorced can cause both emotional and financial upheaval for everyone involved. One of the most important questions you and your soon-to-be former spouse may have to decide centers on how to divide retirement assets.
Understanding the key issues around divorce and retirement can make it easier to untangle them as you bring your marriage to a close.
Taking Note of Your Retirement Accounts
The average cost of divorce can range from several hundred to several thousand dollars, so it’s important to know what’s at stake financially. Managing retirement accounts in divorce starts with understanding what assets you have.
There are several possibilities for saving money toward retirement, and different rules apply when dividing each. Here’s a look at what types of retirement accounts you may hold and thus will need to consider in your divorce.
401(k)
A 401(k) plan is a defined contribution plan that allows you to save money for retirement on a tax-advantaged basis. Your employer may also make matching contributions to the plan on your behalf. According to the Census Bureau, 34.6% of Americans have a 401(k) or a similar workplace plan, such as a 403(b) or Thrift Savings Plan.
IRA
Individual retirement accounts, or IRAs, also allow you to set aside money for retirement while enjoying some tax benefits. The difference is that these accounts are not offered by employers. There are several IRA options, including:
• Traditional IRAs, which allow for tax-deductible contributions.
• Roth IRAs, which allow for tax-free withdrawals in retirement.
• SEP IRAs, which follow traditional IRA tax rules and are designed for self-employed individuals.
• SIMPLE IRAs, which also follow traditional IRA tax rules and are designed for small business owners.
Each type of IRA has different rules regarding who can contribute, how much you can contribute annually, and the tax treatment of contributions and withdrawals.
💡 For more info, check out our guide on individual retirement accounts (IRAs).
Pension Plan
A pension plan is a type of defined benefit plan. The amount you can withdraw in retirement is determined largely by the number of years you worked for your employer and your highest earnings. That’s different from a 401(k), since the amount you can withdraw depends on how much you (and your employer) contribute during your working years.
How Are Retirement Accounts Split in a Divorce?
How retirement accounts are split in divorce can depend on several factors, including what type of accounts are up for division, how those assets are classified, and divorce laws regarding property division in your state. There are two key issues that must be determined first:
• Whether the retirement accounts are marital property or separate property
• Whether community property or equitable distribution rules apply
Legal Requirements for Dividing Assets
Marital property is property that’s owned by both spouses. An example of a tangible marital property asset is a home the two of you lived in together. Separate property is property that belongs to just one spouse.
In community property states, spouses have an equal share in assets accrued during the marriage. Equitable distribution states allow for an equitable — though not necessarily equal — split of assets in divorce.
You don’t have to follow state guidelines if you and your spouse can come to an agreement yourselves about how divorce assets should be divided. However, if you can’t agree, then you’ll be subject to the property division laws for your state.
If retirement assets are to be divided in divorce, there are certain steps that have to be taken to ensure the division is legal. With a workplace plan, you’ll need to obtain a Qualified Domestic Relations Order (QDRO). This is a court order that specifies how much each spouse should receive when dividing a 401(k) or similar workplace plan in divorce.
IRAs do not require a QDRO. You would, however, still need to put in writing who gets what when dividing IRAs in divorce. That information is typically included in the final divorce settlement agreement, which a judge must sign off on.
Protecting Your 401(k) in a Divorce
The simplest option for how to protect your 401(k) in a divorce may be to offer your spouse assets of equivalent value. For example, if you’ve saved $500,000 in your 401(k) and you jointly own a home that’s worth $250,000, you might agree to let them keep the home as part of the divorce settlement.
If they’re not open to the idea of a trade-off, you may have to split the assets through a QDRO. That could make a temporary dent in your savings, but you might be able to make it up over time if you continue to make new contributions.
You could skip the QDRO and withdraw money from your 401(k) to fulfill your obligations to your spouse under the terms of the divorce settlement. However, doing so could trigger a 10% early withdrawal penalty if you’re under age 59 ½, along with ordinary income tax on the distribution.
Protecting Your IRA in a Divorce
Traditional and Roth IRAs are subject to property division rules like other retirement accounts in divorce. Depending on where you live and what laws apply, you might have to split your IRA 50/50 with your spouse.
Again, you might be able to protect your IRA by asking them to accept other assets instead. Whether they’re willing to agree to that might depend on the nature of those assets, their value, and their own retirement savings.
If you’re splitting an IRA with a spouse, the good news is that you can avoid tax consequences if the transaction is processed as a transfer incident to divorce. Essentially, that would allow you to transfer money out of the IRA to your spouse, who would then be able to deposit it into their own IRA.
Divorce and Pensions
Pension plans are less common than 401(k) plans, but there are employers that continue to offer them. Generally, pension plan assets are treated as marital property for divorce purposes. That means your spouse would likely be entitled to receive some of your benefits even though the marriage has ended. State laws will determine how much your spouse is eligible to collect from your pension plan.
Protecting Your Pension in a Divorce
The best method for protecting a pension in divorce may be understanding how your pension works. The type of payout option you elect, for instance, can determine what benefits your spouse is eligible to receive from the plan. It’s also important to consider whether it makes sense to choose a lump-sum or annuity payment when withdrawing those assets.
If your spouse is receptive, you might suggest a swap of other assets for your pension benefits. When in doubt about how your pension works or how to protect pensions in a divorce, it may be best to talk to a divorce attorney or financial advisor.
Opening a New Retirement Account
Splitting retirement accounts in a divorce can be stressful. It’s important to know what your rights and obligations are going into the process. If you’re leaving a marriage with less money in retirement, it’s a good idea to know what options you have for getting back on track. That can include opening a new retirement account.
SoFi offers individual retirement accounts for people who want to invest with minimal hassle. You can open a traditional or Roth IRA online and choose between active or automated investing to fit your needs and goals.
Easily manage your retirement savings with a SoFi IRA.
FAQ
How long do you have to be married to get part of your spouse’s retirement?
If you’re interested in getting spousal retirement benefits from Social Security, you have to be married for at least one continuous year prior to applying. The one-year rule does not apply if you are the parent of your spouse’s child. Divorced spouses must have been married at least 10 years to claim spousal benefits.
Is it better to divorce before or after retirement?
Neither situation is ideal, but divorcing before retirement may be easier if there are fewer assets to divide. Getting a divorce after retirement can raise questions over how to divide retirement and non-retirement assets. It may also lead to financial insecurity on the part of one or both spouses if the distribution of assets is unequal.
Who pays taxes on a 401(k) in a divorce?
If you’re dividing up your 401(k) prior to divorcing then you would be responsible for paying any taxes or penalties owed. Waiting until after the divorce is finalized to split your 401(k) with your former spouse could reduce the amount of taxes and penalties you owe.
Photo credit: iStock/FG Trade Latin
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Southwest Airlines is the nation’s largest domestic carrier, but it offers a remarkably simple frequent flier program called Rapid Rewards. You simply redeem your points for about 1.4 cents each toward any unsold seat.
The Southwest Rapid Rewards Priority card offers the most perks of any of their credit cards, but that comes at a cost.
What Is the Southwest Rapid Rewards Priority Credit Card?
The Southwest Rapid Rewards Priority Credit Card is a premium travel rewards credit card offered by Chase. With its $149 annual fee, it’s the most expensive of the three Rapid Rewards consumer credit cards offered.
As a new applicant, you can earn 60,000 Rapid Rewards points and a 30% off promo code after using your card to spend $3,000 within three months of account opening. You can use this code for a round-trip ticket with multiple passengers, and it’s valid with both cash and points bookings.
You also earn 2x points on Southwest airlines purchases and from purchases from Rapid Rewards® hotel and car rental partners. The 2x points offer is also valid for local transit and commuting purchases, including rideshare providers such as Uber and Lyft. You also earn 2x points on your internet, cable, and phone bills as well as for select streaming services.
You should expect plenty of valuable benefits from a premium travel rewards card, and this card largely delivers. For example, you receive a $75 credit toward Southwest purchases each year as well as a credit toward four upgraded boardings annually. These upgraded boardings currently sell for $30 to $80 each, depending on the flight.
This card can also help you earn elite status in the Rapid Rewards program. You earn 1,500 tier qualifying points (TQPs) toward A-List status for every $10,000 you spend, and there’s no limit on the number of TQPs you can earn.
Other perks include 25% back on in-flight purchases as well as cardholder benefits like lost and delayed baggage insurance, extended warranty coverage and a purchase protection policy.
There’s a $149 annual fee for this card, but thankfully there’s no foreign transaction fee imposed on purchases processed outside the United States. You also get a 7,500-point bonus on your account anniversary instead of flowers, which is worth about $105.
What Sets the Southwest Rapid Rewards Priority Credit Card Apart?
Nearly every airline offers several credit cards, but the Southwest Rapid Rewards Priority Credit Card is different for a few reasons. Mostly, it provides you with enough perks to help you justify its considerable annual fee. These perks include:
Big sign-up bonus. Earn 60,000 bonus points and a 30% off promo code after spending just $3,000 within three months. The promo code itself is a unique offer and can be very valuable.
Lots of bonus categories. Earn 3x points on Southwest ticket purchases plus 2x from transit, commuting, and rideshare purchases and 2x from internet, cable, and phone services and select streaming purchases. You also earn 2x when you book reservations with Southwest’s hotel and rental car partners.
Credit toward Southwest tickets. You get $75 back from your Southwest purchases each year. You also get a 7,500-point bonus on your account anniversary, which is worth about $105. For many travelers, these two features can justify this card’s annual fee.
Earn credit toward A-List status. This card lets you earn 1,500 tier qualifying points (TQPs) toward A-List status for every $10,000 you spend, and there is no limit on the number of TQPs you can earn. A-List status offers you perks such as a better boarding position and free same-day confirmed flight changes.
Four upgraded boardings per year when available. This gives you a boarding position of A1-15, which normally costs $30 to $80 per flight.
Key Features of the Southwest Rapid Rewards Priority Credit Card
The Southwest Rapid Rewards Priority Credit Card is not a very complicated credit card, but it does offer a lot of features that are worth knowing about before you apply.
Sign-Up Bonus
Earn 60,000 bonus points and a promo code for 30% off after spending just $3,000 within three months. The 30% off code has the potential to offer tremendous savings to large families who use it to book a round-trip ticket.
Earning Rewards
Earn 3x points on Southwest ticket purchases plus 2x from transit, commuting, and rideshare purchases and 2x from internet, cable and phone services, and select streaming purchases. You also earn 2x when you book reservations with Southwest’s hotel and rental car partners. You earn one point per dollar spent on all other purchases.
Redeeming Rewards
Rapid Rewards points are worth about 1.4 cents each toward airfare in any of their four fare classes. There are no restrictions on the number of seats available for redeeming rewards — you can use your points for any unsold seat.
Important Fees
This card has an $149 annual fee. No doubt, this will turn off a lot of potential applicants. However, it’s important to consider it in the context of the sign-up bonus as well as the $75 annual travel credit, 7,500-point anniversary bonus, and the four upgraded boardings each year. Fortunately, there’s no foreign transaction fee.
Credit Required
This card requires good or better credit to qualify. If your FICO score is much below 700, then you’ll likely have trouble being approved.
Advantages
This card has several key advantages that help justify its pricey annual fee.
Lots of benefits. This card offers numerous benefits, such as travel fee credits, upgraded boardings, in-flight purchase discounts and an anniversary bonus. You also get several purchase protection and travel insurance policies.
Bonus points. With all the 3x and 2x bonus categories, this card makes it easy to earn a free trip.
Big sign-up bonus. You can earn a bonus worth hundreds of dollars, and the minimum spending required is lower than many competing cards. The 30% off code can also be extremely valuable.
Easy rewards program. Other airline credit cards offer miles that can be difficult and confusing to redeem for the most value. But the Southwest Rapid Rewards program still keeps it simple.
Disadvantages
Before applying for this card, you have to consider some of its drawbacks and missing perks.
Expensive annual fee. There’s no way around the fact that you must pay $149 a year to use this card, so you have to use the rewards and benefits of this card to justify it.
No promotional financing offer. If you’re looking for a credit card with a 0% APR introductory financing offer, this isn’t it.
Forget first-class. You can’t redeem your Rapid Rewards points for a first-class seat because there are only economy seats on Southwest.
No overseas awards. Like first-class, Southwest fliers will find Europe, Asia, and much of the world out of their reach. However, Southwest does fly to Hawaii, Mexico, the Caribbean and even Central America.
How the Southwest Rapid Rewards Priority Credit Card Stacks Up
One of Southwest’s closest competitors is JetBlue, and it offers the JetBlue Plus card from Barclays. The JetBlue card has a slightly better sign-up bonus and substantially more points for airline ticket purchases. However, JetBlue points are worth about 1.2 cents each, which is significantly less than Southwest points.
Southwest Rapid Rewards Priority Credit Card
JetBlue Plus Card From Barclays
Annual Fee
$149
$99
Sign-Up Bonus
Yes
Yes
Rewards Rate
Up to 3x
Up to 6x
0% Intro APR
None
None
Foreign Transaction Fee
None
None
Credit Needed
Good or better
Good or better
Final Word
Fans of Southwest Airlines know that it’s a different type of carrier than the likes of American, Delta and United.
Instead of business-class tickets to Europe, Southwest fliers prize little perks like an upgraded boarding position and easy-to-use rewards. That’s where the Southwest Rapid Rewards Priority Card delivers.
But for those who aren’t fully onboard with the way Southwest works, the $149 annual fee can be hard to swallow. It’s also not a card for those whose home airport doesn’t offer much Southwest service. And for these more casual Southwest customers, it can be worth considering the Rapid Rewards Plus and Premier cards.
But if you find yourself regularly boarding Southwest and are looking for the best card to maximize your rewards and benefits, then there’s no substitute for the Southwest Rapid Rewards Priority Credit Card.
Disclaimer: The information related to the Chase Southwest Rapid Rewards Priority Card has been collected by Money Crashers and has not been reviewed or provided by the issuer of this card.
The Verdict
Our rating
Southwest Rapid Rewards Priority Credit Card
This is Southwest’s most feature-filled credit card for consumers. It includes lot’s of opportunities to earn bonus points, and it features strong benefits. If you’re a regular Southwest flier, you need to look into this card.
Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
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Jason has been writing about personal finance, travel, and other topics on blogs across the Internet. When he is not writing, he has a career in information technology and is also a commercially rated pilot. Jason lives in Colorado with his wife and young daughter where he enjoys parenting, cycling, and other extreme sports.
Balancing your checking account may seem like a task straight out of a bygone era, akin to winding a grandfather clock or sewing buttons onto a shirt.
However, the reality is quite different. It is an essential financial task, one that could help you dodge hefty overdraft charges, detect fraud early, and provide a true understanding of your spending patterns. So, let’s demystify this often misunderstood task.
The Importance of Balancing Your Checking Account
Regularly balancing your checking account is a cornerstone of sound money management. It’s not just about avoiding those pesky overdraft fees (though that is a significant bonus), it also provides invaluable insights into your spending habits. This will enable you to track your progress towards your money goals and make adjustments as necessary.
A balanced checkbook gives you a clear view of your financial accounts, showing you what’s going in, what’s going out, and most importantly, what’s left. By keeping track of all your transactions, you’ll be able to spot if a wrong amount has been deducted or if a direct deposit hasn’t been made. This can also help you to detect fraud at the earliest opportunity, helping to safeguard your hard-earned money.
Checking Account Basics: Understanding Key Terminologies and Concepts
To successfully balance your checking account, it’s crucial to comprehend the basic components of it. By understanding these terms, you’ll be better equipped to manage and reconcile your checking account.
Debit Card: Your bank will likely issue you a debit card that allows you to access the funds in your checking account electronically. When you make a purchase with your debit card, funds are withdrawn directly from your account. It’s important to keep track of all transactions made with your debit card to ensure your records accurately reflect your spending.
Pending Transactions: These are transactions that have been made but have not yet been fully processed by your bank. They are usually deducted from your available balance but may not be reflected in your current balance until the transaction has fully cleared.
Bank Balance: This is the amount of money in your checking account at any given time. It’s important to note that your bank balance can change frequently throughout the day as deposits and withdrawals are made.
Monthly Statement: This is a summary provided by your bank of all transactions into and out of your account over a particular period, typically a month. The monthly statement includes the dates and details of your transactions, the balance at the beginning and end of the period, and any charges incurred. It’s crucial to carefully review your monthly statement each month to identify any potential errors or fraudulent activity.
Automatic Payments: These are recurring payments set up to pay bills directly from your checking account. They are convenient for paying regular bills, such as utilities or subscriptions, but can lead to overdrafts if not properly accounted for in your balance.
Overdraft Fees: If you withdraw more money than you have available in your checking account, you’ll likely be charged an overdraft fee by your bank. Regularly balancing your checkbook can help you avoid these costly fees.
The tools you need for checkbook balancing can be as simple or as complex as you’d like them to be. The traditional approach involves using a paper checkbook register, a bank statement, a pen, and a calculator. But in our digital age, we have online and mobile banking tools at our disposal, and a host of other tools to make this process much simpler.
You might choose to use Google Sheets or another spreadsheet software to create a check register. You can also use mobile banking apps that provide real-time updates on your transactions, making it much easier to keep up with your account activity.
How to Balance Your Checking Account
So, how do you actually balance a checkbook? Here’s a step-by-step guide, using the traditional checkbook register method.
Step 1: Gathering Information
Start by gathering all your receipts, ATM slips, deposit slips, and bank statements. If you have access to online banking, make sure to check your account for any recent transactions that haven’t yet made it onto your paper statement.
Step 2: Recording Transactions
Write down every transaction in your checkbook register. This should include deposits, checks, debit card purchases, ATM withdrawals, bank fees, and any other financial transactions. Doing this ensures your records match your bank’s records, making it easier to detect any errors or discrepancies.
Step 3: Reconciling Your Check Register With Your Bank Statement
Review your bank statement for any additional charges or deposits that you might have missed. Make sure to update your check register with these transactions. Then, add up all the deposits, and subtract all the payments and withdrawals to calculate your checking account balance.
Step 4: Calculating Your Balance
The balance in your checkbook should match the current balance in your bank account. If they do not, you will need to check your calculations and go through each entry to identify any potential errors or discrepancies. This step helps you ensure the available balance matches your own records.
Step 5: Addressing Any Discrepancies
If the balances do not match, start by checking for common errors, such as transposing numbers or forgetting to record transactions. Check your receipts and the online banking portal to ensure you haven’t missed any transactions. If you find any transactions posted to your account that you did not authorize, contact your bank immediately.
Regular Maintenance and Good Habits
Balancing your checkbook is not a one-time activity. It’s a habit that needs to be developed and maintained. Aim to do this at least once a month when your bank statement arrives. For those who frequently use their debit cards, write checks, or have a lot of automated payments, weekly check-ins might be beneficial to ensure all transactions are recorded correctly.
Maintaining a balanced checkbook may also prevent you from spending more than what’s available, thereby avoiding overdraft charges. It also helps in tracking your spending habits and understanding your spending patterns, which can be instrumental in managing financial matters.
The Role of Technology in Balancing Your Checking Account
In our digital age, technology plays a significant role in simplifying the process of balancing checking accounts. Online and mobile banking apps provide a real-time view of your account, enabling you to check your current balance, deposit checks, and monitor transactions from anywhere, at any time. This gives you the flexibility to manage your financial tasks on the go, reducing the time and effort required for this task.
On the other hand, it’s crucial to understand that while these apps are incredibly handy, they should not replace the practice of keeping your own records. The balance shown on these apps might not reflect pending transactions or paper checks that haven’t cleared yet.
Conclusion
Balancing your checking account is an essential component of sound financial management. It’s not just about avoiding fees and detecting potential fraud. It’s about taking control of your money and understanding how you’re using it. With the right tools and a bit of discipline, you can make this task part of your regular financial routine.
Frequently Asked Questions
How often should I balance my checkbook?
It’s generally recommended to balance your checkbook once a month. However, if you frequently use your debit card or have numerous automatic payments, you might want to consider balancing your account on a weekly basis. Regularly keeping track of your financial transactions will help you avoid errors and keep a close eye on your spending habits.
Is it safe to balance my checkbook online?
Online and mobile banking apps are generally safe to use. Most banks provide strong encryption and security measures to protect your data. However, always ensure you’re using a secure network when accessing your bank account online and update your apps regularly to get the latest security features.
What should I do if I find a fraudulent transaction in my account?
If you notice a transaction that you did not authorize, you should report it to your bank immediately. Most banks have policies in place to protect customers from fraud, and you may not be responsible for any fraudulent charges if they’re reported in a timely manner.
What’s the difference between my current balance and my available balance?
Your current balance is the total amount in your account at the start of the business day. This includes all transactions, like deposits and withdrawals, that have been posted to your account. On the other hand, your available balance is your current balance minus any holds (like pending transactions).
How can I avoid overdraft fees?
One way to avoid overdraft fees is by keeping an accurate record of all your transactions. By knowing exactly how much money is in your account at all times, you can avoid spending more than what’s available. Some banks also offer overdraft protection services that link your checking account to a savings account or credit card to cover any overdrafts.
How can balancing my checkbook help with my budget?
Balancing your checkbook gives you a clear understanding of how much money is coming in and going out of your account. This can help you identify spending patterns, prioritize your spending, and set realistic budgets.
I rarely write checks. Do I still need to balance my checkbook?
Yes, even if you don’t write checks, balancing your checkbook is still essential. Any type of transaction, be it debit card transactions, automatic payments, or ATM withdrawals, can cause discrepancies in your account balance. By balancing your checkbook, you can ensure that your account has the correct balance and catch any errors or fraudulent transactions.
I’ve made a mistake and my account is overdrawn. What should I do?
If you realize that you’ve made a mistake and your account is overdrawn, it’s important to address it as quickly as possible. Deposit money into your account to cover the overdraft and any associated fees. Then, review your recent transactions to understand what led to the overdraft and how you can avoid it in the future.
Today we’ll check out “Compass Mortgage,” a direct lender based out of Chicagoland that is one of the top mortgage companies in Illinois.
They do nearly all of their business in the Land of Lincoln, putting them near the top-20 for all mortgage lenders in the state.
So if you’re a homeowner or prospective home buyer in Illinois, there’s a good chance you’ve heard of them.
What sets them apart is their dedication to customer service, with a big focus on creating a personal home loan experience, with you guessed it, real people.
That means being treated like family, instead of relying on a chat bot to get your loan. Read on to learn more.
Compass Mortgage Fast Facts
Retail, direct-to-consumer mortgage lender
Offers home purchase loans and refinances
Founded in, headquartered near Chicago, IL
Licensed to do business in 15 states
Funded $3.2 billion in home loans last year
Roughly 90% of total production comes from state of Illinois
Compass Mortgage is a retail, direct-to-consumer mortgage lender that offers home purchase loans and mortgage refinances.
This means you can apply remotely via their website, or visit a physical branch if one is located near you (they’re mostly in the Midwest).
The company was founded by Dan Graham in 2002 and is located in Warrenville, Illinois, which is about 30 miles west of Chicago.
For the record, they are not affiliated with the Compass real estate brokerage, which is based out of New York City.
While Compass Mortgage is licensed in 15 states across the nation, roughly 90% of total loan volume comes from their home state of Illinois.
That made them a near top-20 mortgage lender in the state of Illinois, mostly beat out by the mega banks, Guaranteed Rate, Rocket Mortgage, and so on.
The other states where they’re licensed include Arizona, California, Colorado, Florida, Georgia, Indiana, Iowa, Kentucky, Michigan, Minnesota, North Carolina, Ohio, Oregon, South Carolina, Tennessee, Texas, Virginia, and Wisconsin.
Last year, Compass funded $3.2 billion in home loans, with about two-thirds of volume consisting of mortgage refinances and the rest purchase loans.
That means they are probably well-suited for both existing homeowners and those looking to buy a property.
How to Apply with Compass Mortgage
To begin, you can either call them up, visit a physical branch, or simply head over to the website and go the self-serve route.
Your best bet might be to speak with a loan officer first to discuss loan pricing and eligibility, then apply.
Either way, it’s possible to apply without speaking to anyone if you’re a self-starter.
Once at the website, select your transaction type (e.g. refinance or purchase), then you’ll be asked if you know your loan officer by name or don’t have one/remember.
There is a loan officer directory on their website if you wish to read bios or if you simply need a reminder of who you were working with/referred to.
If you know the individual, you can select them from a drop-down list to ensure you’re paired with the correct person.
If not, you’ll be assigned a loan officer after you submit your loan application.
Their digital mortgage application is powered by Blend, a leader in the mortgage fintech world.
It allows you to complete the app electronically, link bank accounts using login credentials, eSign disclosures, upload paperwork, and more.
Once your loan is submitted, your loan team will guide you throughout the process. You’ll also be able to log on to the borrower portal 24/7 to check loan status and satisfy outstanding conditions.
Compass Mortgage makes it easy to apply for a home loan and stay abreast of what’s going on from start to finish.
If you’re a prospective home buyer, they offer their “Get Committed” mortgage pre-approval, which is a more robust loan commitment.
It is fully-underwritten and includes the ability to lock your loan before you find a property (pre-lock).
This shows home sellers you’re a serious, well-qualified buyer and can make your offer stand out in a bidding war or even compete with cash buyers.
Loan Programs Offered by Compass Mortgage
Home purchase loans
Renovation loans
Construction loans
Refinance loans: rate and term, cash out, streamline
Conforming loans backed by Fannie Mae and Freddie Mac
Jumbo loans
FHA loans
VA loans
USDA loans
Down Payment Assistance (DPA) programs
Bridge loans
Lot/Land loans
Compass Mortgage offers a wide selection of home loan options to suit just about any borrower in any situation.
This includes home purchase loans, refinance loans, and construction and renovation loans, such as the FHA 203k program.
All the major loan types are available, including conforming, jumbo, government loans (FHA/VA/USDA), and even bridge loans.
Those who are short on funds can take advantage of their Down Payment Assistance (DPA) programs, including grants and forgivable loans.
They lend on all property types, including primary residences, vacation homes, multi-unit investment properties, and condos/townhomes.
Both fixed-rate and adjustable-rate mortgages are available in a variety of loan terms including the 15-year fixed and 7/1 ARM.
Simply put, you shouldn’t be limited when it comes to loan choice.
Compass Mortgage Rates
One area that’s light on information is their mortgage rates and lender fees.
Compass Mortgage doesn’t publicize these details on their website, so it’s hard to know how competitive they are on the pricing front.
As such, you’ll need to get in touch with a human first to discuss interest rates and inquire about any fees.
It’s unclear if they charge a loan application fee, loan origination fee, underwriting fee, and so on.
Be sure to get all the details and your mortgage APR so you can compare it to quotes from other banks, lenders, and mortgage brokers.
Compass Mortgage Reviews
On Zillow, Compass Mortgage has a 4.99-rating out of a possible 5 from about 400 customer reviews.
That’s pretty much as close to perfection as you can get, and a testament to their mission to provide a “Better Mortgage Experience.”
A good chunk of those reviews indicate that the interest rate and/or closing costs were lower than expected. So that at least provides a clue to their pricing.
They also have a 4.9-star rating on Google from nearly 800 reviews, another sign of their strength in the customer satisfaction department. And a 4.5-star rating on Yelp from over 50 reviews.
Lastly, while they’re not an accredited business, they hold an ‘A+’ BBB rating based on complaint history, of which there are none currently on file.
To summarize, Compass Mortgage seems to be really big on customer service, and could be a good choice for a first-time home buyer who wants hands-on service throughout the loan process.
They could also work for an existing homeowner looking to refi – just pay attention to rates and fees to ensure they’re competitive.
Compass Mortgage Pros and Cons
The Good Stuff
Can apply for a home loan online in minutes
Offer a digital, paperless loan application process
Also have brick-and-mortar branches in the Midwest
Lots of loan programs to choose from
Offer fully-underwritten pre-approvals to help you win a bidding war
Can pre-lock your rate before you find a property
Excellent customer reviews across ratings sites
A+ BBB rating
Free online mortgage guides, mortgage calculators, and mortgage glossary
Direct retail lender Revolution Mortgage has scooped up two of loanDepot‘s top LOs, accelerating its plans to expand market share despite a tough origination environment.
Jorden Brok and Brett Lotsoff are producing area managers and SVPs of mortgage lending at Revolution Mortgage and are tasked with expanding the company’s footprint in the greater Chicago area. Lotsoff and Brok spent nearly 10 years at loanDepot and the branch they managed originated $1 billion in volume in 2020 and 2021, Lotsoff and Brok said.
“We liked that we’d have the opportunity to be more entrepreneurial and have more freedom. We just see a lot of growth opportunities here in terms of building our branch and building our team,” Lotsoff said in an interview with HousingWire.
As with the rest of the country, the Chicago-area market is dealing with issues stemming from a lack of inventory, and until rates decline, it’s the first-time buyers that Lotsoff and Brok are primarily targeting for volume.
“We should see more purchase activity from existing homeowners once rates and/or home prices come down a bit. Until then the factors we see that will drive existing homeowners to purchase are life events and household formation changes,” Brok noted.
For first-time homeowners, having the capital for a down payment is the biggest barrier, Brok said. Providing presentations on whether to opt for a conventional loan, Federal Housing Administration (FHA) loan, Fannie Mae’s HomeReady or Freddie Mac’s HomePossible loans while winning over contracts in a multiple bid environment are key to creating client stickiness, Lotsoff added.
“The first transaction is the most important, but we want to make sure we have a relationship with you afterward. We’ve been able to create a lot of stickiness over the years,” Lotsoff said.
Rapidly expanding Revolution
In a rising rate environment, many lenders have downsized or have gone out of business. Revolution, on the other hand, has been expanding its footprint by scooping up top loan officers in local markets.
By the end of June, the Ohio-based lender will have added 30 new branch locations nationwide since January, bringing the total to 120.
Last year, Revolution began bringing top LOs in the industry to the company, including Larry Steinway, former senior vice president of lending and branch manager at Guaranteed Rate, and Stacy Chevalier, loanDepot’s former area manager.
“When we grab what we call top LOs and top originators, they’re leaving that world in most cases, and they’re going into the world of owning their own shop,” Tim Johnson, president and COO at Revolution, said in an interview.
At Revolution, loan originators select their own staff members to support their branches from processors, assistants and other originators. The executive also sees opportunities to pick up high-producing branches across the country from lenders that are struggling.
Johnson estimates origination volume will be between $2 billion and $2.5 billion in 2023 and expects a target production of $4 billion in 2024.
“They’re coming over here because they want to go build something for themselves (…). People just want to have their own deal and you have to be willing to set up a model that promotes that. That’s what we are about – entrepreneurship,” Johnson said.
Buying a house ranks among the biggest financial decisions of a lifetime. So when making an offer, it helps to have an escape hatch if something goes wrong. That hatch is called a real estate contingency.
What is a real estate contingency?
Typically included in the contract, contingencies aim to protect buyers and sellers should issues emerge in the period between accepting an offer and closing the sale.
“The transaction is typically 30- to 60- day process—it isn’t like walking into a store and buying an iPhone,” says Anurag Mehrotra, an assistant professor of finance at San Diego State University.
With properly worded contingencies, buyers can rescind their offer if, for example, they’re unable to get a home loan or an inspector flags a leaky roof. In short, they can walk away from the deal without losing their “earnest money,” the security deposit put down when the offer was made.
When the real-estate market is cooling, as it has been in many parts of the country over the past year, buyers are increasingly able to ask for contingencies and still remain competitive if there are other offers.
In theory, potential buyers can ask sellers for almost anything imaginable—like assurances that the house has “good vibes.” But in reality, there are five contingency clauses most commonly found in real estate contracts.
Contingencies to consider
Inspection contingency
Once an offer has been accepted, there is typically a 30-day period for due diligence, Mehrotra explains. A buyer can hire a third-party inspector or engineer to assess things such as the home’s foundation and structure, electrical wiring and plumbing, the heating/cooling system and kitchen appliances.
Many inspection reports reveal minor or cosmetic defects that are no cause for alarm, a ding on the refrigerator door, for instance. But when the report unearths major issues, an inspection contingency allows the buyer to tell the homeowner to rectify them or reduce the purchase price.
“This is a huge one,” Mehrotra says. “It helps with unforeseen problems.”
Indeed, Realtor.com found that the number of buyers asking for repairs after an inspection more than doubled between August 2021 and August 2022, with the majority of sellers saying the cash value of repairs was in the $10,000-or-less range.
(News Corp, parent of The Wall Street Journal, operates Realtor.com.)
Appraisal contingency
Before it provides a mortgage, the lender will have the home appraised to ensure that its value meets or exceeds its purchase price. If the property’s valuation comes in low, buyers with an appraisal contingency are able to quash the transaction without losing their security deposit. Without that contingency, buyers would typically be on the hook to pay the difference upfront.
When the inventory of available homes is low but the demand from buyers is high, purchase prices are more likely to exceed appraised values. That dynamic was at play after the onset of the pandemic, when throngs of buyers sought larger homes. In January 2020, just 7% of home sales had a contract price above the appraised value, an analysis by real-estate data provider CoreLogic found. By May 2021, the frequency increased to 19% of transactions.
Since then, however, the demand for homes has eased—partly because rising interest rates have made mortgage payments less affordable. When sales are slower, bidding wars that jack up prices are less likely, which in turn helps close gaps between a home’s purchase price and its appraised value.
Mortgage contingency
When buying a house, most people can’t exactly whip out their checkbooks. According to the National Association of Realtors, 78% of recent home buyers obtained financing to complete their purchase. A mortgage or financing contingency gives buyers some extra time to shop for the best lender and interest rate.
That time is especially essential today. In the early months of 2023, average mortgage-interest rates bounced around 6.5%—well above the 2021 lows of less than 3%. In general, higher interest rates lead to larger house payments, so some borrowers may have more difficulty qualifying for a mortgage. That’s because a key component of the lender’s decision is the borrower’s debt-to-income ratio, a measure of the applicant’s total monthly debt payments in relation to the total monthly earnings.
It’s helpful when potential borrowers are preapproved for a mortgage before house hunting begins, explains Vanessa Famulener, president of HomeLight Homes, a real estate technology company. That may be enough to assure sellers that the deal will go through even with a financing contingency in the contract.
Better yet is conditional approval from a lender before the home search begins, Famulener adds. With preapproval, the lender mainly looks at the borrower’s credit score, credit history, income and assets. With conditional approval, the underwriter has received and reviewed most or all of the documentation required to get a loan up to a certain amount. Assuming nothing changes—no job losses or change in marital status, for example—borrowers with conditional approval can feel confident about their creditworthiness, which may eliminate the need for a financing contingency entirely, Famulener says.
Home-sale contingency
Over 56% of buyers are also selling a home, Famulener notes. And for most of them, selling is necessary before buying. First, they likely need the equity in their existing home to qualify for financing on their new home. And second, they can’t afford to make two mortgage payments every month. For both of these reasons, home-sale contingencies are commonly used in tight markets, Famulener says.
When including the home-sale contingency, it is important to include a time limit. Typically, the clause gives buyers 30 to 90 days after the contract is signed to sell their home. Without a time frame, buyers and sellers are left in limbo.
Facing a home-sale time crunch, some buyers turn to companies that pay cash for their current home.Terms vary widely among these companies, with some requiring homeowners to pay service fees, broker commissions, taxes and/or closing costs.
Title contingency
Before a home sale closes, a title search is performed to ensure there are no issues over ownership, such as liens against the property for things such as unpaid taxes, outstanding loans or overdue contractor fees.
A title contingency allows the buyer to back out of the deal if the title search flags ownership concerns. However, this contingency is less common because most purchase agreements already include a clause that voids the sale if title issues emerge, Famulener says.
Even if they waive a title contingency, buyers are typically required to purchase title insurance. This policy covers them—and their lender—if ownership issues arise down the road, such as an undisclosed heir. The premium is generally a one-time fee paid to the title company at closing.
Will contingencies hurt my chances in a bidding war?
While contingencies of all types give buyers some wiggle room when making an offer, contingencies can also hurt your chances of getting the house of your dreams.
In Milwaukee, first-time home buyers Drew and Lyn Buus, both 26, made offers on seven homes between March and mid-May—losing out each time to other buyers, most likely because of contingencies.
In one instance, the couple bid $303,000 for a three-bedroom, 1½ -bathroom house in Wauwatosa, Wis., that was listed for $273,000. They included inspection and appraisal contingencies, but also said they would cover up to $5,000 if there was an appraisal gap and up to $5,000 if the inspection showed necessary repairs.
After just one day on the market, the house had 33 offers, eventually selling for $293,000. “We offered more and it sold for less,” Buus says. “We never heard back [from the sellers], but we assume contingencies were waived” in the winning bid.
For now, he and his wife—and their dog Bailey—are staying put in a house they’re renting in Milwaukee’s Bay View neighborhood. “I feel strongly that you shouldn’t waive the inspection and appraisal contingencies,” says Buus, a supply-chain specialist for a medical manufacturer.
“It’s one of the largest financial decisions you’re going to make,” he says. “If something goes wrong, you’re on the hook.”
More on real estate
The advice, recommendations or rankings expressed in this article are those of the Buy Side from WSJ editorial team, and have not been reviewed or endorsed by our commercial partners.
With the start of summer upon us, now may be a great time to evaluate your credit card portfolio. Credit card sign-up bonuses and welcome offers are the quickest and easiest way to rake in lots of points and miles, so we regularly update the roundup of our favorite current offers in our best credit cards guide.
But to help you keep up with an ever-changing list of bonuses, we’ve also compiled a list of the best card offers currently available — especially the ones that are worth an extra look right now because they are at all-time highs or may end soon.
Since many issuers have restrictions on how often you can earn a bonus on a card, it’s important to time your application for when there’s a good offer. Also, higher bonuses don’t always stick around for long, so if you’re considering one of these offers, you’ll want to hop on it sooner rather than later.
Finally, if you’re not ready to jump on a higher-end card, consider these great starter cards or even one with a 0% introductory annual percentage rate (APR) offer.
The best credit card offers for June 2023
Card
Sign-up bonus/welcome offer
Welcome offer value*
Annual fee
The Business Platinum Card® from American Express
120,000 points after you spend $15,000 on eligible purchases with the card within the first three months of card membership.
$2,400.
$695 (see rates and fees).
Ink Business Preferred Credit Card
100,000 points after you spend $15,000 on eligible purchases with the card within the first three months of card membership.
$2,000.
$95.
The Platinum Card® from American Express
80,000 points after you spend $6,000 in the first six months, though you may be able to get a higher bonus through the CardMatch tool (terms apply).
$1,600.
$695 (see rates and fees).
American Express® Green Card
60,000 points after you spend $3,000 on purchases in their first six months of card membership. Also, get 20% back on eligible travel and transit purchases in your first six months to earn up to $200 back.
$1,400 ($1,200 in points plus up to $200 in cash back).
$150 (see rates and fees).
Capital One Venture X Rewards Credit Card
75,000 miles after you spend $4,000 on purchases in the first three months of account opening.
$1,388.
$395.
Capital One Venture Rewards Credit Card
75,000 miles after you spend $4,000 on purchases in the first three months of account opening.
$1,388.
$95.
Chase Sapphire Reserve
60,000 bonus points after you spend $4,000 on purchases in the first three months of account opening.
$1,200.
$550.
Chase Sapphire Preferred Card
60,000 bonus points after you spend $4,000 on purchases in the first three months of account opening.
$1,200.
$95.
American Express® Gold Card
60,000 points after you spend $4,000 in the first six months of card membership, though you may be able to get a higher bonus through the CardMatch tool (terms apply).
$1,200.
$250 (see rates and fees).
Southwest Rapid Rewards Plus Credit Card, Southwest Rapid Rewards Premier Credit Card, and Southwest Rapid Rewards Priority Credit Card
60,000 bonus points plus a 30% off promo code after spending $3,000 on purchases in the first three months from account opening.
$900.
$69 (Plus), $99 (Premier) and $149 (Priority).
United Club Infinite Card
80,000 bonus miles and 1,000 Premier qualifying points (PQP) after you spend $5,000 on purchases in the first three months from account opening. Offer ends Aug. 9.
$880.
$525.
IHG Rewards Premier Business Card
165,000 points after spending $3,000 on purchases in the first three months from account opening.
$825.
$99.
Hilton Honors American Express Surpass® Card
130,000 Hilton Honors bonus points and a free night reward after spending $2,000 in purchases on the card in the first three months of cardmembership. Offer ends July 19.
$780.
$95 (see rates and fees).
* Welcome offer value is determined using TPG valuations and is not provided by nor reviewed by the issuer.
The Business Platinum Card from American Express
This business card stands out not only for its 120,000-point welcome offer but thanks to added travel perks that can easily cover the card’s $695 annual fee (see rates and fees). Cardholders enjoy automatic Gold status in both the Hilton Honors and Marriott Bonvoy loyalty programs, along with access to a wide variety of airport lounges — including Amex Centurion, Priority Pass and Delta Sky Club (when traveling on same-day Delta flights). Enrollment is required for select benefits.
Cardholders also enjoy 5 points per dollar on flights and prepaid hotels booked at American Express Travel, along with 1.5 points per dollar on eligible purchases in select business categories and eligible purchases of $5,000 or more (on up to $2 million of these purchases per calendar year).
Related: Amex refreshes Business Platinum Card with new perks, higher annual fee and a 120,000-point bonus
On top of that, the card comes with up to $200 in annual airline fee statement credits and a 35% points rebate for flights booked through Amex Travel in first or business class on any airline (up to 1 million points back per calendar year), or in any class on the U.S. airline of your choice each year. Non-travel benefits include up to $400 in annual statement credits toward U.S. Dell purchases, up to $360 in credits toward Indeed, up to $150 toward select Adobe purchases and up to $120 toward wireless telephone services.
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Enrollment is required for select benefits.
Read our review of the American Express Business Platinum Card for more information.
Official application link: The Business Platinum Card® from American Expresswith 120,000 points after you spend $15,000 on eligible purchases with the card within the first three months of card membership.
Ink Business Preferred Credit Card
Then there’s the Ink Business Preferred. According to TPG’s valuations, this card’s welcome bonus alone is worth $2,000 since you can take advantage of Chase’s excellent collection of airline and hotel transfer partners. Points redeemed through the Chase travel portal are worth 1.25 cents each, which isn’t bad, either.
Another factor in this card’s favor? Its tremendous earning rates. You’ll earn 3 points per dollar across the following categories on up to $150,000 in combined purchases (1 point per dollar thereafter):
Travel.
Shipping purchases.
Internet, cable and phone services.
Advertising on social media sites and search engines.
Depending on which categories you spend in, you could earn a whopping 450,000 bonus points per year if you maxed out that $150,000 cap.
Among the Ink Business Preferred’s unsung benefits are cellphone protection, primary rental car coverage (when renting for business purposes) and other travel and purchase protections. You can also add employee cards to your account for free.
Read our full review of the Ink Business Preferred Credit Card for more information.
Official application link: Ink Business Preferred Credit Card with 100,000 bonus points after you spend $15,000 on eligible purchases with the card within the first three months of account opening.
The Platinum Card from American Express
Often referred to as the king of the premium travel rewards cards, the Amex Platinum offers a slew of benefits — along with a $695 annual fee (see rates and fees). Cardholders enjoy perks such as automatic Gold status with both Hilton Honors and Marriott Bonvoy plus access to a wide range of airport lounges, including Amex Centurion, Priority Pass and Delta Sky Club (on same-day Delta flights). On top of that, you’ll get up to $200 in annual airline fee statement credits, an up-to-$200 hotel statement credit to use toward prepaid Amex Fine Hotels + Resorts or The Hotel Collection bookings (the latter of which requires a minimum two-night stay) via Amex Travel, and an up-to-$189 Clear Plus membership statement credit — along with numerous other perks. Enrollment is required for select benefits.
Related: It’s a ‘lifestyle’ card now: A closer look at the Amex Platinum’s 6 new benefits
Non-travel benefits include an up-to-$240 digital entertainment statement credit (split into monthly $20 credits) for Audible, The New York Times, SiriusXM, Peacock, The Wall Street Journal and services under the Disney umbrella — including Disney+, ESPN+ and Hulu.
Cardholders also receive an up-to-$155 Walmart+ credit (subject to auto-renewal; Plus Ups are excluded), an up-to-$300 SoulCycle bike credit and an up-to-$300 Equinox statement credit for eligible Equinox memberships (now available as an annual benefit rather than monthly credits). You also receive Uber VIP status and up to $200 in annual Uber Cash (split into monthly $15 credits for U.S. rides and Uber Eats orders plus a $20 bonus in December).
Enrollment is required for select benefits.
Finally, cardholders will enjoy enhanced earning rates on many travel purchases:
5 points per dollar on flights booked directly with airlines or with Amex Travel (on up to $500,000 on these purchases per calendar year).
5 points per dollar on prepaid hotels booked with Amex Travel.
1 point per dollar on other eligible purchases.
And while the current welcome offer provides solid value, be sure to check the CardMatch Tool to see if you can receive an even higher one (offers are targeted and subject to change at any time).
Read our review of the American Express Platinum Card for more information.
Official application link: The Platinum Card® from American Express with 80,000 points after you spend $6,000 on purchases in the first six months of card membership.
The American Express Green Card
The American Express Green Card provides a compelling offering in the mid-tier travel category. With 3 points per dollar on broader travel, restaurants and transit as well as annual statement credits for Clear and LoungeBuddy that more than cover its annual fee, the Green from Amex is a card that modern travelers should consider.
The earning rates and benefits of the American Express Green Card will be most attractive to young professionals and millennials (or millennials at heart) who travel for work, pleasure or both. The card earns 3 Membership Rewards points per dollar on travel, restaurants and transit, so you’ll want to consider this card if a large chunk of your budget goes toward these categories.
The Amex Green also offers annual up to $189 Clear Plus and up to $100 LoungeBuddy statement credits that can more than offset the $150 annual fee (see rates and fees) while making your time in the airport more efficient and relaxing. If you can utilize these statement credits, the card can easily be a worthwhile addition to your purse or wallet.
Read our review of the Amex Green for more information.
Official application link: Amex Green with 60,000 Membership Rewards points after you spend $3,000 on purchases in your first six months of card membership. Also, get 20% back on eligible travel and transit purchases in your first six months to earn up to $200 back.
Capital One Venture X Rewards Credit Card
The Venture X card is Capital One’s premium rewards card and offers great earning rates and incredible perks.
Aside from a hefty welcome bonus of 75,000 miles after spending $4,000 on purchases in the first three months – worth about $1,388 according to our valuations thanks to Capital One’s excellent airline and hotel transfer partners – the card gives members up to $300 back in statement credits annually for bookings made through Capital One Travel and 10,000 bonus miles every account anniversary, starting on their first anniversary (worth $100 toward travel, or $185 by our valuations).
As for earning rates, the Venture X racks up 10 miles per dollar on hotels and car rentals booked via Capital One Travel, 5 miles per dollar on flights booked via Capital One Travel, and an unlimited 2 miles per dollar on everything else.
Frequent travelers will also enjoy taking advantage of access to Capital One’s developing network of airport lounges as well as the ability to enroll for Priority Pass membership for entry into more than 1,300 lounge locations worldwide (though this no longer includes participating restaurants). It also added the ability to access Plaza Premium lounges worldwide in 2022 and launched The Premier Collection in 2023, giving cardmembers on-property perks at a curated set of luxury hotels.
Read our review of the Capital One Venture X card for more information.
Official application link: Capital One Venture X Rewards Credit Card with 75,000 bonus miles after you spend $4,000 on purchases in the first three months from account opening.
Capital One Venture Rewards Credit Card
The Venture Rewards packs a pretty good punch for a mid-tier credit card. It earns a flat 2 miles per dollar spent on all purchases worldwide, but you can earn 5 miles per dollar on hotels and car rentals booked through Capital One Travel. The miles you earn with this card can be transferred to Capital One’s 17 airline and three hotel partners or redeemed through the Capital One Travel portal.
The card stands out for offering an application fee credit for Global Entry or TSA PreCheck every four years; many other cards that offer this benefit have annual fees of $400 or more. This TSA PreCheck/Global Entry application fee credit alone is worth up to $100. When making everyday purchases, you may also get Warranty Manager Service which can be used for extended warranty protection. The Venture Rewards card doesn’t impose foreign transaction fees, so you can use the card overseas without accumulating extra charges.
Read our review of the Capital One Venture Rewards Card for more information.
Official application link: Capital One Venture Rewards Credit Card with 75,000 bonus miles after you spend $4,000 on purchases in the first three months from account opening.
Chase Sapphire Reserve
This is one of the best premium credit cards available.
It earns a whopping 10 points per dollar on Lyft (through March 2025), Chase Dining booked through Ultimate Rewards, and hotel and car rental purchases through the Ultimate Rewards Travel portal. Cardholders also earn 5 points per dollar on airline travel booked through the Ultimate Rewards Travel portal, 3 points per dollar on travel (after using the $300 travel credit) and dining, and 1 point per dollar on everything else.
Chase defines travel and dining quite broadly, including everything from parking fees to Airbnb stays and food delivery orders. Perks of the card include a $300 annual travel credit, Priority Pass membership, a $5 monthly DoorDash in-app credit (through December 2024), a complimentary DashPass membership and an impressive array of travel protections.
Read our review of the Chase Sapphire Reserve for more information.
Official application link: Chase Sapphire Reserve with 60,000 points after you spend $4,000 on purchases in the first three months of card membership.
Chase Sapphire Preferred Card
If you can’t justify a high annual fee or want a solid card with an appealing set of perks, the Chase Sapphire Preferred is an ideal fit. It earns 5 points per dollar on all travel purchased through Chase Ultimate Rewards; 3 points per dollar on dining, including eligible delivery services, takeout and dining out; 3 points per dollar on select streaming services; 3 points per dollar on online grocery purchases (excluding Target, Walmart and wholesale clubs); 2 points per dollar on all other travel; and 1 point per dollar on all other purchases.
The points you earn with this card can be transferred to Chase’s airline and hotel partners or redeemed for 1.25 cents each through the Chase Ultimate Rewards portal. Benefits include a $50 annual credit on hotel stays purchased through Ultimate Rewards, at least 12 months of DashPass membership (when activated by Dec. 31, 2024), primary rental car coverage, up to $500 in trip delay reimbursement if you’re delayed more than 12 hours or overnight, up to $10,000 in trip cancellation and interruption insurance and up to $100 per day for up to five days in baggage delay reimbursement if your bag is delayed more than six hours.
Read our review of the Chase Sapphire Preferred for more information.
Official application link: Chase Sapphire Preferred with 60,000 points after you spend $4,000 on purchases in the first three months from account opening.
American Express® Gold Card
The Amex Gold card is a favorite of many TPG staffers thanks (in large part) to its terrific earning rates:
4 points per dollar on dining at restaurants (including takeout and delivery in the U.S.)
4 points per dollar at U.S. supermarkets on up to $25,000 in purchases per calendar year (1 point per dollar after that).
3 points per dollar on flights booked directly with airlines or through Amex Travel.
1 point per dollar on all other eligible purchases.
The card also offers up to $120 in annual credit for Uber rides and Uber Eats purchases and up to $120 in statement credits for select dining purchases (enrollment is required for select benefits) — all for a manageable annual fee of $250 (see rates and fees)
And while it’s not providing a limited-time bonus for new cardmembers, you can often find elevated welcome offers through the CardMatch tool. The card currently features a public welcome offer of 60,000 points after you spend $4,000 on eligible purchases within the first six months of card membership. However, some new customers can earn a 75,000-point or even 90,000-point welcome offer via the CardMatch tool after meeting the same minimum spending requirements. Note that these elevated offers are targeted and subject to change at any time.
Alternatively, you can refer a friend through the Amex referral program — and when your friend applies for a new account by June 7, you can earn an additional +5 rewards per dollar (as either points or cash back, depending on the card) on eligible U.S. supermarket purchases for three months after they’re approved (starting from the first date the referred friend’s account is opened), on up to $25,000.
Additionally, new applicants for the Amex Gold through a referral link will be eligible for an up to $200 statement credit after reaching minimum spending requirements, on top of that card’s usual welcome offer.
Read our review of the American Express Gold Card for more information.
Official application link: American Express® Gold Card with 60,000 points after you spend $4,000 in the first six months of card membership.
Southwest personal cards
All three personal of Southwest’s personal credit cards — the Rapid Rewards Plus, Rapid Rewards Premier and Rapid Rewards Priority — are currently sporting identical welcome offers: 60,000 bonus points plus a 30% off promo code after spending $3,000 on purchases in the first three months from account opening. This is the first time Southwest has offered a promo code as part of a sign-up bonus on a credit card.
The code will appear directly in your Southwest.com account within eight weeks of meeting the spending requirement. It can be used — only once — on a single one-way or round-trip Wanna Get Away, Wanna Get Away Plus, Anytime and Business Select fare, and is available for use until October 31, 2024.
Given it is a single-use promo code, it would be best to save this for a more expensive ticket. You’ll get the biggest savings when using the code for round-trip travel and/or during peak travel periods like the summer or the holidays.
Read more about the three cards and this limited-time offer.
Official application link: Southwest Rapid Rewards Plus
Official application link: Southwest Rapid Rewards Premier
Official application link: Southwest Rapid Rewards Priority
United Club Infinite Card
The United Club Infinite Card is the ideal card for United lounge access — bar none.
The United Club Infinite Card’s $525 annual fee sounds high until you factor in the United Club membership included with the card. Membership normally costs $650 per year for non-elite members.
In addition, one of the primary disadvantages of many airline credit cards is a low return on spending, even on branded purchases, as most airline cards only offer 2 or 3 points per dollar on airline purchases. But the United Club Infinite Card sets a new standard with an impressive 4 points per dollar on United purchases.
If you spend thousands of dollars on United flights each year, the United Club Infinite Card is worth considering.
Read our review of the United Club Infinite for more information.
Official application link: United Club Infinite with 80,000 bonus miles and 1,000 Premier qualifying points (PQP) after you spend $5,000 on purchases in the first three months from account opening. Offer ends Aug. 9.
IHG Rewards Premier Business Card
New applicants for the IHG Rewards Premier Business card can earn 165,000 bonus points after spending $3,000 on purchases within three months from account opening.
Your bonus will come in the form of IHG points, which TPG values at half a cent each. Thus, this bonus is worth $825.
Generally speaking, you won’t get fantastic earning rates on most hotel credit cards — especially on broad categories like dining and groceries. That said, the IHG Premier Business card could be a solid option, especially at participating IHG properties.
When you use your card at IHG hotels and resorts, you’ll earn 10 points per dollar spent on your stay. This is in addition to the 10 base points that all IHG One Rewards members accrue at most participating brands. And since you have automatic Platinum Elite status with the card, that’ll give you another 60% bonus on top of the base points. When combined, that translates to a total of 26 points per dollar spent on most IHG stays — or a 13% return on spending, based on TPG’s valuations.
Beyond IHG purchases, cardholders of the IHG Premier Business will earn points at the following rates:
5 points per dollar spent on travel, dining and gas purchases.
5 points per dollar in select business categories, such as social media and search engine advertising and at office supply stores.
3 points per dollar spent on all other purchases.
You’ll also receive a free night certificate (worth up to 40,000 points) every year when you renew your card and enjoy your fourth night free on award stays of four nights (or longer)
Read our full review of the IHG Rewards Premier Business for more information.
Official application link: IHG Rewards Premier Business card with 165,000 bonus points after spending $3,000 on purchases within three months from account opening.
Hilton Honors American Express Surpass® Card
The Hilton Honors American Express Surpass® Card provides solid earnings at Hilton properties and automatic Hilton Gold elite status, which offers complimentary breakfast, increased earnings and space-available upgrades when you stay at Hilton properties.
Hilton Honors Gold status is one of the best mid-tier hotel loyalty statuses you can obtain. As a Hilton Gold elite member, you’ll get complimentary breakfast, space-available room upgrades and improved earnings when staying at Hilton brands. Luckily, you can easily earn and maintain Hilton Gold status since it is an automatic perk of the Hilton Honors American Express Surpass Card.
The Hilton Surpass card is an ideal choice for those who stay at Hilton properties often and want a cobranded credit card with a modest annual fee and valuable perks.
Read our full review of the Hilton Surpass for more information.
Official application link: Hilton Surpass with 130,000 bonus points and a free night reward after spending $2,000 in purchases on the card in the first three months of cardmembership. Offer ends July 19.
*Bonus offer value is based on TPG valuations and not provided by issuers.
For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply
For rates and fees of the Amex Platinum card, click here. For rates and fees of the Amex Business Platinum card, click here. For rates and fees of the Amex Gold card, click here.
For rates and fees of the Amex Green card, click here.
For rates and fees of the Hilton Honors Amex Surpass, click here.
Additional reporting by Ryan Wilcox and Eric Rosen.