Visa and Mastercard reached a settlement with U.S. merchants this week that could have some trickle-down effects for consumers if the deal is approved. The agreement would lower credit card interchange fees, which merchants pay to process credit card transactions, and hold them at that reduced rate for several years. It also would limit the surcharges that merchants could impose on customers who pay with credit cards.
This settlement isn’t connected to the Credit Card Competition Act, bipartisan legislation that seeks to introduce greater competition among credit card payment networks in the hopes of lowering interchange fees.
The settlement still has to be approved by a federal court. If it is, here’s how it could affect consumers.
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What the settlement could change
Merchants’ costs of doing business (and maybe your shopping bill)
According to the terms of the settlement, Visa and Mastercard must lower their interchange fees by at least 4 basis points (that’s 0.04 percentage points) for at least three years. For five years, they can’t raise these fees above 2023 levels, and average interchange fees must be at least seven basis points (or 0.07 points) lower than the current average rate. In other words, interchange fee levels would be lowered for five years.
This interchange fee reduction could save merchants $29.79 billion in the five years after the settlement is approved, according to a statement by one of the law firms representing the class of merchants in the lawsuit.
Theoretically, merchants could pass these savings on to consumers in the form of lower prices or at least prices that remain stable over several years. They could also reinvest the savings into their businesses, such as by improving customer service. But there’s no requirement for merchants to do any of these things.
How you choose to pay
Other terms of the settlement put a limit on credit card surcharges, which are additional fees customers sometimes have to pay to use a credit card at checkout. Currently, Mastercard limits surcharge amounts to no more than 4%, while Visa limits surcharges to 3%.
The new surcharge cap would be 1% on Visa or Mastercard cards, regardless of what surcharges merchants impose on cards on other payment networks, such as American Express and Discover. If the merchant doesn’t accept cards on other payment networks, the surcharge is capped at 3%.
Merchants would be allowed to “steer” customers toward paying in certain ways, such as encouraging the use of cards on certain payment networks by offering lower surcharges. This could affect how you choose to pay for purchases based on what terms a merchant offers.
What won’t change
Credit card access and rewards
According to Visa, this settlement wouldn’t affect consumers’ access to credit, nor would it affect credit card rewards programs.
“By negotiating directly with merchants, we have reached a settlement with meaningful concessions that address true pain points small businesses have identified,” Kim Lawrence, Visa’s president for North America, said in a statement. “Importantly, we are making these concessions while also maintaining the safety, security, innovation, protections, rewards and access to credit that are so important to millions of Americans and to our economy.”
The Credit Card Competition Act
Again, this settlement is separate from the proposed Credit Card Competition Act. The settlement is a result of litigation that began in 2005, while the CCCA was first introduced in 2022.
A statement from the Electronic Payments Coalition, which opposes the CCCA, said the settlement eliminates the need for legislation on interchange fees.
“The agreement between merchants, Visa, Mastercard and financial institutions has been decades in the making and treats businesses of all sizes equally without government mandates or jeopardizing consumers’ data security and rewards programs,” EPC executive chairman Richard Hunt said.
The Merchant Payments Coalition, a CCCA proponent, counters that a temporary fee reduction leaves consumers and businesses hanging once the five-year period is over.
“A few years of very small relief followed by business as usual is not a good outcome from 20 years of litigation,” said a statement from Christopher Jones, a member of the merchant coalition’s executive committee and the National Grocers Association’s senior vice president of government relations and counsel. “The settlement does nothing to actually bring competitive market forces to swipe fees or change the behavior of a cartel that centrally fixes rates and bars competition. Instead, it tries to provide token, temporary relief and then allows the card companies to raise rates yet again.”
What’s next?
Nothing is finalized just yet. The settlement must first be approved by the U.S. District Court for the Eastern District of New York. A statement from Mastercard estimates the changes spelled out in the settlement would go into effect in late 2024 or early 2025.
Refinancing your mortgage, or replacing your existing home loan with a new one, can lower your interest rate and monthly payments or even get you extra cash from the equity in your home.
Not all homeowners are approved for refinancing, though. With home prices and interest rates still high, lenders are careful about who they approve. The rejection rate on mortgage refinance applications increased to 15.5% in 2023 from 9.9% in 2022, according to the Federal Reserve Bank of New York.
If you’ve been turned down, you still have options for refinancing — and ways to improve your chances next time.
What we’ll cover
Compare offers to find the best mortgage
Common reasons mortgage refinancing is rejected
Lenders rely on federal underwriting guidelines from Fannie Mae and Freddie Mac when deciding whether to approve a refinancing application. Some issues are easier for borrowers to address than others.
High debt-to-income ratio
How much of your money is tied up in paying off debts isa major factor in getting approved for refinancing. Your debt-to-income (DTI) ratio is determined by dividing your total monthly debts (including your current mortgage) by your gross monthly income.
A DTI of 35% or less is ideal, according to Experian, although lenders typically will consider a ratio up to 43% for refinancing a conventional mortgage, depending on how strong the rest of their application is.
Low credit score
A credit score of at least 620 is usually needed to secure refinancing, although you may be able to get FHA cash-out refinancing with a score in the 500s.
Low home appraisal
An appraisal of your home’s fair market value ensures it hasn’t significantly depreciated, especially to the point that it’s worth less than what you owe (known as an “underwater mortgage”).
If the appraisal indicates your home is in poor condition or has renovations that are not up to code, it could also lead to being turned down.
Not enough home equity
The amount of your home that you own outright is known as home equity. If you put 5% of the cost of the property as a down payment, you’re starting with 5% home equity. That amount increases as you make mortgage payments and as the home’s value increases. You typically need to own at least 20% of your home outright to refinance your mortgage.
Employment history
According toFannie Mae’s underwriting guidelines,lenders look at an applicant’s career history and income over several years. Ideally, they want to see at least two years at your current job, but you probably won’t have to worry about a promotion or a better-paying job in the same industry. A consistent income is the key.
Taking a lesser role or lower-paying job and lengthy gaps in employment are more serious red flags, as is changing jobs in the middle of the application process. However, you can always try to explain your circumstances to your lender.
What to do if you’ve been rejected for refinancing
Find out why you were denied
Lenders are legally required to explain why you’ve been turned down. Find out the reason (or reasons) and if possible, make any necessary changes so you’ll be approved next time.
Shop for another lender
You may need a lender that is willing to accept a lower credit score. Rocket Mortgage works with applicants with scores as low as 580, rather than the 620 required by most lenders.
Rocket Mortgage Refinance
Annual Percentage Rate (APR)
Apply online for personalized rates
Types of loans
Conventional loans, FHA loans, VA Interest Rate Reduction Refinance Loan (IRRRL) and jumbo loans
Fixed-rate Terms
8 – 29 years
Adjustable-rate Terms
Not disclosed
Credit needed
580 if opting for FHA loan refinance or VA IRRRL; 620 for a conventional loan refinance
Already have a mortgage through Rocket Mortgage or looking to start one? Check out the Rocket Visa Signature Card to learn how you can earn rewards
Ally Bank offers cash-out refinances for conventional and jumbo loans, allowing homeowners to convert their home equity into cash and take out a loan that’s larger than their current mortgage. Ally doesn’t charge application, origination or processing fees and its website has a refinance calculator that provides customized rates without affecting your credit score.
Ally Home
Annual Percentage Rate (APR)
Apply online for personalized rates; fixed-rate and adjustable-rate mortgages included
Types of loans
Fixed-rate, adjustable-rate and jumbo loans available
Fixed-rate Terms
15 – 30 years
Adjustable-rate Terms
5/6 ARM, 7/6 ARM, 10/6 ARM
Credit needed
Not disclosed
Terms apply.
Pay down your existing mortgage
If you didn’t put 20% down when you bought your home, you may need to pay off another chunk of your mortgage before you’re able to secure refinancing.
Work on your credit
If your credit is the problem, take some time off to raise your score. Focus on making on-time bill payments and lowering your credit utilization ratio, or the amount of available credit you’re using. Avoid opening or closing any lines of credit and check your credit reports for any errors.
Experian Boost™ is a free way to improve your credit score. It links utility, phone and streaming service payments to your Experian credit report and uses the You’ll get an updated FICO® score delivered to you in real-time.
Experian Boost™
On Experian’s secure site
Cost
Average credit score increase
13 points, though results vary
Credit report affected
Experian®
Credit scoring model used
FICO® Score
Results will vary. See website for details.
How long should I wait before applying again?
Technically, you can reapply right away, but each application requires a hard credit check, which temporarily lowers your FICO score. So, consider why you were rejected first — if your credit score was too low or you don’t have enough home equity, address the issue before applying again.
If you were turned down because of a recent job change, you may have to wait up to two years to reapply.
How to lower your mortgage payments without refinancing
Whether it’s because you’ve been denied or the rates are still too high, refinancing might not be an option. Fortunately, there are ways you can lower your mortgage payment without refinancing.
Get rid of mortgage insurance
If you have a conventional mortgage, your lender will automatically cancel PMI when you reach 22% equity. You might be able to request cancelation once your equity reaches 20%.
Recast your mortgage
Some lenders will allow you to make a large lump-sum payment toward your principal balance and then re-amortize your loan. The terms remain the same when you recast your mortgage, but the lower balance means smaller monthly payments and an overall decrease in the amount you’ll pay in interest.
Request a loan modification
If you’re facing financial hardship, you can ask to change the terms of your mortgage permanently to help you avoid foreclosure. You can also request a forbearance to temporarily reduce or pause your mortgage, but you’ll eventually have to repay the late or suspended payments.
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FAQ
What is mortgage refinancing?
Refinancing your mortgage is when you replace your existing home loan with a new one, typically to get a lower interest rate.
How much does it cost to refinance a mortgage?
Depending on the lender, there are several fees associated with refinancing, usually 3% to 6% of the loan. Freddie Mac suggests putting aside $5,000 for refinancing closing costs
Can I lower my mortgage payments without refinancing?
Bottom Line
An applicant can be denied refinancing for various reasons, from a low credit score to a new job. If you know why you were turned down, you can work on the problem and reapply.
Why trust CNBC Select?
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. Everymortgage article is based on rigorous reporting by our team of expert writers and editors with extensive knowledge ofproducts. 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.
Catch up on CNBC Select’s in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.
*Results will vary. Not all payments are boost-eligible. Some users may not receive an improved score or approval odds. Not all lenders use Experian credit files, and not all lenders use scores impacted by Experian Boost™. Learn more.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
Wondering how to stay at hotels for free? I have stayed in many hotel rooms for free over the years by using many of these same strategies below. Finding ways to get free hotel stays is a great way to travel on a budget or simply just save money on hotels. This can allow you…
Wondering how to stay at hotels for free? I have stayed in many hotel rooms for free over the years by using many of these same strategies below.
Finding ways to get free hotel stays is a great way to travel on a budget or simply just save money on hotels. This can allow you to go on more vacations and use your money for other things in life.
Whether it’s a fancy resort or a specific hotel brand, the trick is to know where to find these opportunities and make the most of them.
Key Takeaways
Loyalty programs are a direct path to earning free hotel stays. This is because they tend to give a free night after a certain number of paid stays. You accumulate points for each stay that you can redeem for free nights.
Credit card points can be used for free hotel stays. Many credit cards partner with hotel brands to give sign-up bonuses. By meeting the minimum spending requirements, you can earn points for free hotel stays. These points can be substantial, so choose a card aligned with your preferred hotel chain.
Earning gift cards from rewards platforms can be a way to make money to put toward free hotel stays.
Best Ways To Get Free Hotel Stays
Below are ways to get free hotel stays.
Take surveys for free hotel stays
You can get free gift cards by answering paid online surveys, and you can use these gift cards to help you get a free hotel stay.
So, this would work like this – you could get free gift cards to places like Hotels.com, Marriott Hotels, Holiday Inn, or even a Visa gift card (that you can use anywhere) as a reward for answering online surveys. You then collect gift cards until you reach the amount that you need to book the hotel that you want.
To get started, you’ll want to find a survey site that you trust. Some of my favorites are:
I recommend signing up for all of them so that you can get the most surveys possible to answer, which will then pay you with more gift cards.
There are also other apps that you can use as well to get free gift cards, such as Fetch Rewards and Ibotta.
I get free gift cards all the time, and recently, I logged into several of the accounts that I am signed up for and turned in my points. This led to me getting $275 in free gift cards. I personally like to wait until I have a lot of gift cards that I can redeem all at once.
Now, this would take a decent amount of time. You won’t get a free hotel stay in one day. But if you keep doing surveys, your gift cards will add up.
Recommended reading: 16 Real Ways To Earn Free Gift Cards (Amazon, Target, Visa)
How to get free hotel stays as an influencer or blogger
As a blogger and social media influencer, I have received many hotel stays for free over the years. From luxury hotels and all-inclusive resorts in the Caribbean to RV campgrounds and more, I have partnered with many different types of accommodations over the years.
And, I know of many other people who have received free hotel rooms through this as well.
Getting free hotel stays as an influencer means partnering with hotels and showing them why you’re valuable to their brand.
This may include sharing your hotel stay on your blog, Facebook, Instagram, Twitter, YouTube, TikTok, or somewhere else that you have followers and readers.
Here’s a quick guide on how to stay at hotels for free as a social media influencer or blogger:
Assess what you can offer. Hotels are looking for exposure and new customers, so your reach and engagement rates are important. How many people will see what you share about their hotel?
Customize your content to align with the hotel’s image and key messages.
Contact hotels professionally, usually through their marketing or PR department, and highlight how your content will benefit their visibility and attract potential customers. This is typically done through email.
Be clear about expectations – what you will provide and what you expect in return. Set deliverables, such as a number of posts, stories, or a video.
You can learn how to start a blog by taking my free How To Start A Blog Course. You can join over 80,000 people who have already taken the course. In this free course, I show you how to create a blog, from the technical side to earning your first income and attracting readers.
Travel credit card rewards
If you want to learn how to stay at hotels for free, this is one of the top ways.
I have earned several free hotel stays over the years by using the rewards points I have earned from my credit cards toward my hotel room. I’ve been using rewards credit cards for years, and they are pretty much all that I use now. It helps me save money on travel, earn cash back, and more.
A rewards credit card lets you earn points, miles, or cash back that you can use for almost free travel. These cards usually give you points that you can use for things like airline miles, booking hotels, gift cards, or cash back. You earn these rewards just by using your credit card for everyday purchases like groceries, gas, and shopping. But remember, it’s important to pay off your full balance each month to make sure the rewards are worth it and avoid paying extra for interest charges.
Here’s a quick summary to help you understand how rewards credit cards work:
Choose a credit card with rewards that interest you, like points, cash back, or travel rewards.
The card may require you to spend a certain amount, for example, $3,000 in the first 90 days, to get a sign-up bonus. Some don’t have any minimum requirement, and you can simply earn points for your purchases.
Use these points for rewards like cash back, hotel stays, airfare, or other options.
You can learn more about my favorite cards at Best Rewards Credit Cards, such as the Chase Sapphire Preferred Card (Chase Ultimate Rewards Points are the best!), Chase Sapphire Reserve, Marriott Bonvoy Boundless, Hilton Honors American Express Surpass Card, and others.
I also recommend reading How To Take A 10 Day Trip To Hawaii For $22.40 – Flights & Accommodations Included.
Note: Credit card rewards and even the best travel credit cards are not worth it if you go into debt. Remember to pay off your monthly bill in time (and the full amount) before interest charges accrue. Also, many of the good rewards credit cards have an annual fee each year on your card anniversary, so take that into account as well. So, you should always be careful!
Sign up for hotel loyalty programs
Hotel rewards programs are your way to get free stays and room upgrades. When you join these programs, you can earn points for a free night’s stay, and as you climb the levels, you can get additional benefits such as getting your resort fees waived.
Programs like Marriott Hotels, IHG Rewards Club, and Hilton Honors are free to join and sometimes give you a free night after a certain number of stays or points earned.
Some examples of hotel rewards programs include:
Marriott Bonvoy – Combines former Marriott Rewards, Ritz-Carlton Rewards, and Starwood Preferred Guest programs.
IHG Rewards Club – Allows you to earn points for stays which can be used for free nights.
Hilton Honors – Provides exclusive member deals and guarantees the lowest rates when booking directly.
Many travel booking sites also have rewards programs, such as Expedia even. These programs give valuable benefits like this to get you to book through them as much as possible so that they can make more money.
You can earn points in several ways beyond just booking hotel rooms:
Stay at hotels – Every night you stay earns you more points, with the amount varying by hotel and the rate you book.
Promotions – Look out for and register for periodic promotions that have bonus points.
Partnerships – Earn points through partners, for instance, by booking car rentals or flights with associated airlines.
Your accumulated points can be redeemed for free hotel nights, among other rewards. The number of points needed for a free night certificate varies by hotel brand, location, and the room’s price.
Find mystery shopping jobs at hotels
Mystery shop companies sometimes need secret shoppers to evaluate a hotel for them. I have seen these types of jobs pop up several times, and I have personally done a few as well.
These are typically just one or two-night stays in your local area, but it can make for a fun and free staycation.
This can be a great way to vacation on a budget.
Become a travel agent if you’re traveling with a group
If you often travel with groups, becoming a travel agent can be a smart choice. As a travel agent, you get industry discounts and may earn commissions on your bookings. To become one, you need accreditation, usually from a trusted program that teaches you important industry knowledge.
Here’s how you can benefit:
Access to discounts – As a travel agent, you can unlock special rates not available to the public. When traveling with a group, this can translate into significant savings.
Earn commissions – Booking for multiple people means the potential for earning commissions from hotels increases. This can sometimes offset the cost of your own accommodation.
Though this role comes with perks, it also means handling travel details professionally and responsibly for others. It’s not just about getting free stays; it’s also about making sure that your group has great travel experiences.
Work at a hotel
Working at a hotel can be a way to get free accommodation. As an employee, you can usually get discounts or even stay for free, depending on your job and the hotel’s policy.
This may include jobs such as working the front desk, being in management, and more.
Policies vary, so it’s important to know what’s available to you and to ask about the hotel’s policy on employee stays. For example, some hotels have a set number of free nights as part of the employment package. Plus, discounts on rooms can sometimes extend to family and friends.
Attend a timeshare presentation
Going to a timeshare presentation can lead to complimentary hotel stays.
These can sometimes be brutal, though, so if you think that you may end up buying a timeshare that you don’t need – then DO NOT DO THIS! Timeshares can be quite expensive and they are lifelong with annual costs.
But, if you think you can withstand the temptation, plenty of people sign up for these in order to get a free hotel stay all the time.
Here’s how this works:
Usually, your attendance at a 90-minute to 2-hour sales pitch is required.
Be prepared for high-pressure sales tactics, but remember you’re under no obligation to buy.
Incentives can range from free hotel stays, discounted travel, or even gift cards.
Make sure you understand the terms and conditions attached to the free stay.
If interested, consider the timeshare offer carefully. If not, politely decline and redeem your free stay or other perks.
Hotel promotions and deals
You can stretch your travel budget by taking advantage of different hotel promotions and deals to get the best room rates. Whether you travel often or are planning a one-time trip, there are several strategies you can use to get free hotel stays.
When you sign up for newsletters from your favorite hotel chains, you’ll receive emails on new promotions and deals (such as for seasonal sales on room rates) directly to your inbox. Some hotels might even offer a reward night, room upgrades, or welcome points just for joining at check-in.
Scan your grocery receipts for free hotel gift cards
Using grocery receipt scanning apps can be an easy way to earn free hotel stay rewards.
As you do your regular grocery shopping at grocery stores, these apps turn your grocery receipts into points, which can be exchanged for gift cards that can be used at different hotels.
Here’s how you can get started:
Download receipt scanning apps – Look for apps like Fetch Rewards (this is my favorite and the one that I use for every single one of my grocery receipts) that are known to offer hotel gift cards as a redemption option.
Scan your receipts – Every time you shop, take a second to scan your receipts using the app.
Earn points – Get points with every scanned receipt.
Redeem for hotel gift cards – Once you’ve earned enough points, browse the app’s reward section for hotel gift card options. Select your preferred hotel chain and redeem your points. With Fetch Rewards, you can get gift cards to places such as Airbnb, Hotels.com, Visa, and more.
While it will take some time to earn enough points, it can be a way to save some money on a hotel reservation.
Frequently Asked Questions
Below are answers to common questions about how to stay at hotels for free.
Is it possible to get a free night at a hotel?
Yes, you may be able to get a free night at a hotel through loyalty programs, which reward you with points for free night awards that can be redeemed for free nights. Additionally, some programs may give a free night after a certain number of paid stays or as a sign-up bonus.
How to get a hotel room for free?
You may get a free hotel room through loyalty programs, credit card rewards, by earning free hotel gift cards, and more.
How can I earn free hotel stays through surveys?
You can earn points by joining market research and filling out surveys on specific websites. These points might be traded for hotel rewards points, allowing you to book hotel stays for free.
Are there contests or sweepstakes that offer chances to win a stay at a hotel?
Yes, contests and sweepstakes run by hotels, travel bloggers, or travel websites tend to have hotel stays as prizes. You can start by possibly searching related hashtags on social media, such as #giveaway.
How can I travel luxury for free?
Traveling in luxury for free can be done by maximizing credit card sign-up bonuses and rewards, leveraging elite status with hotel loyalty programs for upgrades, and possibly collaborating with luxury hotels as an influencer if you have a strong online following.
How to get a free hotel room by complaining?
If you honestly had a bad stay at a hotel, you may be able to talk to management. Sometimes, they will give you a free hotel stay to make up for the bad review. But, you should never lie about a stay just to get a free room, as you can cost someone their job.
How To Stay at Hotels for Free – Summary
I hope you enjoyed this article on how to stay at hotels for free.
There are many ways to get free hotel stays, as you learned above.
Joining hotel loyalty programs at major hotel chains is a simple way to get free night rewards. These programs give you points for staying often, and you can use these points for free hotel nights.
Travel credit cards and hotel credit cards also give rewards that can be used for hotel stays.
If you’re an influencer or booking for a group, this may result in you getting a hotel stay for free. Other ways, like joining hotel promotions, being a mystery shopper, or attending timeshare presentations, can also get you free or cheaper stays at different places.
I have personally done many of the ways listed above to get free hotel stays at places in many states and countries. The stays have been great and have allowed me to save so much money over the years!
Do you have unwanted gift cards? Here are 7 ways to sell gift cards online instantly for cash and make extra money. Approximately $3 billion in gift cards go unused in the U.S. every year. If you’re one of those people who have gift cards and don’t plan to use them, consider selling the gift…
Do you have unwanted gift cards? Here are 7 ways to sell gift cards online instantly for cash and make extra money.
Approximately $3 billion in gift cards go unused in the U.S. every year. If you’re one of those people who have gift cards and don’t plan to use them, consider selling the gift card for cash.
There are many reasons gift cards go unused, including you don’t shop at the retailer, you need money to pay the bills, or you simply rather have cash instead of a gift card. This can be an easy way to get free money now.
The most popular gift cards people buy come from retailers like Target, Starbucks, Amazon, Best Buy, Visa, and Walmart. You’ll generally receive about 90% of the total gift card amount if you decide to sell the gift card, so keep that in mind.
Best Ways To Sell Gift Cards
Today, I’m going over the best places to sell gift cards.
1. Raise
Raise is a gift card site that lets you buy or sell used gift cards.
To sell a gift card on Raise, you need to:
Go to the “Sell” link at the top of the Raise home page.
Enter the store name of the gift card.
Enter the gift card information such as serial number, PIN, current balance, and your selling price.
Payout options: pay by check, PayPal, or ACH direct deposit. Anytime you sell a used gift card on Raise, Raise takes a 15% cut from the selling price.
2. CardCash
CardCash is a platform that buys used gift cards.
To sell your gift card to CardCash, do the following:
Enter the store name of the gift card you have.
Enter the amount on the gift card.
CardCash will offer you an amount to buy the card.
For example, I pretended I had a Target gift card to sell with a $50 balance. CardCash offered me $39.50 cash or $40.09 for a prepaid Mastercard. Seeing their instant offer with their quote tool was quick and easy!
Then I have the option to get paid either by mailed check, ACH direct deposit, or PayPal.
3. CardSell
CardSell is an app that helps you trade unwanted gift cards for cash. The mobile app works for both iOS and Android users.
To get started, download the app and enter your gift card number and PIN. CardSell will verify your card and check the balance. Once verified, CardSell will pay you within 48 hours via PayPal.
4. ClipKard
ClipKard is another popular website that buys used gift cards. The process is similar to other gift card websites.
To get started here’s what to do:
Enter the info for the gift card store and the amount on the gift card.
Receive an offer from ClipKard for your gift card.
You’ll need to ship your gift card via USPS to ClipKard.
Once the gift card is accepted, you’ll get paid either via PayPal or you can choose to have a check sent to your address.
You can also earn rewards on ClipKard for doing things like buying and selling gift cards. Reward points can be used to give you discounts on future purchases on the website.
5. Gameflip
Gameflip is a website for gamers that helps you sell unused gift cards from places like Steam, PSN, Xbox, iTunes, Google Play, and more.
To sell a gift card on Gameflip, you need to create an account and click “Start Selling”. This is where you can list your gift card in the marketplace. Once someone buys your gift card, you’ll be notified.
When the transaction goes through, the sale proceeds are immediately deposited into your Wallet. You can then withdraw the cash into your bank account, Skrill, Bitcoin, or crypto account, and more.
Recommended reading: 12 Best Places To Sell Video Games
6. GiftCash
GiftCash is a platform that buys gift cards. Selling a gift card on GiftCash is easy.
All you have to do is enter the brand’s name of the gift card into GiftCash, enter the gift card balance, and GiftCash will tell you the total payout offer instantly.
Then, you can accept payment from options like ACH direct deposit or Cryptocurrency.
7. Check Into Cash
If you rather go in person to sell your used gift card, find a local Check Into Cash store near you. There are over 300 locations in the U.S., which makes it easy to get cash immediately for your gift cards.
Bring any gift cards you haven’t used into your local Check Into Cash store and they will exchange the gift cards for cash.
Frequently Asked Questions
Below are answers to common questions about how to sell gift cards.
Why do people buy used gift cards?
People buy used gift cards because it’s a way to save money. For example, someone can buy a gift card that has a $50 balance on it and only pays $40 for the gift card (depending on the site they are buying it from). This allows people to get the same value of goods or services at a discounted rate.
What’s the best site to sell gift cards?
The best site to sell gift cards depends on what kind of gift card you’re selling. If you’re selling a gift card to a place like Target or Starbucks, Raise and CardCash are great spots to sell gift cards. They make the process easy and convenient to sell unused gift cards and get the most money for your gift card.
If you’re selling a gaming-related gift card, Gameflip is the best website to sell your used gift card.
Recommended reading: 16 Best Selling Apps For Selling Stuff Online And Locally
Does Gift Card Granny buy gift cards?
Gift Card Granny no longer buys gift cards from people. The website is a gift card marketplace and cash back website. For example, you can build and customize a gift card and send it to people, but you can’t buy discounted cards.
Gift Card Granny does have a “discounted” gift card section, but it is really just a cash back section that gives you a bonus for getting a certain gift card. For example, if I buy a Subway gift card, I may be able to get $2.50 in cash back, but I have to buy a $250 gift card to even receive that amount.
How can I sell gift cards for cash immediately? Can I sell gift cards online instantly?
You can sell gift cards online instantly and the best website to get paid immediately for your gift cards is CardCash. CardCash pays up to 92% of the gift card value and pays out within 1-2 days of gift card approval. You may need to send in the gift card to CardCash, but typically the gift card can be transferred by entering the gift card number and pin to the website.
Where can I sell gift cards for PayPal cash?
Raise and CardCash buy gift cards and both payout via PayPal.
Can I sell my gift cards anywhere in person?
Check Into Cash is a brick-and-mortar with over 300 locations. To find a store near you, go to their website and find a local store. Bring in your gift card and get a free quote. Make sure to bring your government-issued ID so they can verify your identity and process payment. If your gift card is accepted, you’ll walk out with cash immediately and have no waiting period, unlike online gift card marketplaces.
You can also sell your gift cards locally, such as on Facebook Marketplace.
Can I sell my gift card on eBay?
Another great option for selling gift cards is via eBay. You can list all kinds of gift cards on the platform and even send the gift card info to the buyer via messenger, so there’s no need to ship anything. eBay does take a portion of the sale so you also need to keep that in mind.
What if I don’t want to sell my gift card and don’t want to use it either?
If you don’t want to go through the process of selling your gift card, you have several other options. You can regift the gift card or donate the gift card to a place in need like an animal shelter or local charity. Some retailers might even take gift card returns as long as the gift card isn’t used. However, you’ll need the original receipt to do that.
Best Places To Sell Gift Cards Online – Summary
The best places to sell your gift cards are Raise, CardCash, CardSell, ClipKard, GameFlip, GiftCash, and Check Into Cash. To get the most money for your gift card, check around multiple sites and get quotes for how much you can receive.
These gift card exchange sites buy gift cards because they resell them. People then buy these used gift cards because they are sold at a discount. For example, you may be able to buy a $100 gift card but only actually pay $90 for it.
Remember, you can sell both digital and physical gift cards! If you have a physical gift card, you may have to mail it in.
Some of the gift card exchange sites do have a minimum balance (such as $10) as well as a maximum value (such as $2,000) that they will accept.
Selling gift cards is easy and a great way to make extra cash. I recommend gathering the different unused gift cards you have lying around and checking the gift card balance to see how much extra money you can make.
Did you know that you can sell your old gift cards that you don’t want?
Want to learn how to get free furniture? Do you want to transform your living space without breaking the bank? Here’s a guide on furnishing your house without spending any money. Whether you’re looking for sofas, beds, dishes, or other household items, there are ways to get free furniture. Today you’ll learn: You may be…
Want to learn how to get free furniture?
Do you want to transform your living space without breaking the bank? Here’s a guide on furnishing your house without spending any money.
Whether you’re looking for sofas, beds, dishes, or other household items, there are ways to get free furniture.
Today you’ll learn:
The different places to get free furniture
How to find high-quality furniture for free
Creative strategies for styling your home for free
You may be able to get furniture for pretty cheap or even free. If you are looking to save some money, then finding ways to get free stuff can help you spend less money.
11 Places To Find Free Furniture
Below are 11 places that give away free furniture.
1. Facebook
Facebook is one of the best places to find free furniture near you. By utilizing Facebook Marketplace and local community groups, you can score the furniture pieces you need for your home.
Here’s a step-by-step guide to finding free furniture on Facebook.
Click the “Marketplace” option in the left-hand menu.
Search for “free furniture” in the Marketplace search bar.
Once you’ve entered the search term “free furniture”, you can filter your results for options such as “Free or “Price: Free”. This will narrow down listings to only free listings.
Optionally, you can also join local community groups on Facebook. These groups have members who often give away free furniture they don’t want to bother selling.
It’s important to be safe when arranging pickups and meeting people online. Stay safe by meeting in public places, bringing someone with you, and letting someone know where and when you plan on meeting this person.
2. Buy Nothing Groups
The Buy Nothing Project started in 2013 and the main purpose is to get free things that you need without having to go and buy more things.
These groups encourage recycling and giving items a second chance rather than throwing them away when you no longer need them.
To get started, find and join a local Buy Nothing Group on Facebook. You can search for groups specifically for your city. Read and understand the group rules for the Buy Nothing Group and regularly check the group for new posts.
If you see a piece of furniture you’re interested in, respond to the offer politely and express your interest. You can even share why you need the item, so the person knows it’s going to good use.
Buy Nothing Groups are incredible communities for sharing, getting, and giving support to others. If you have the means, consider giving things to the Buy Nothing Group when other members of the community need something.
My sister has given away a ton of free furniture in local buy-nothing groups such as a sectional couch, TV stand, coffee table, bed frames, dressers, outdoor furniture, and more. There are lots of decent furniture pieces that you may be able to find in your local buy-nothing group as well!
3. Craigslist
Craigslist is another great spot for finding free furniture for your home.
Here’s a list of tips to find free furniture on Craigslist.
Look for the “Free” section. This page will show you a long list of items people are giving away for free in your local area.
When in the “Free” section, use the search bar and type in keywords like “furniture”, “couch”, “bed”, or other items you’re interested in getting.
Contact the poster on whichever item you’re interested in and use the contact information provided to reach out.
When meeting with people from Craigslist, it’s important to coordinate a spot that is safe and well-lit. It doesn’t hurt to bring a friend with you and let someone know where you’re meeting the online person and at what time.
4. Freecycle
Freecycle is a network of local groups for people who want to give away stuff and receive items for free. Here are some tips for finding furniture on Freecycle.
Visit the Freecycle website, find your local Freecycle group, and join the group by signing up with your email.
Search the local Freecycle group for furniture. Type in keywords in the searcher like “furniture”, “couch”, and “table”.
If you can’t find the furniture you’re looking for, create a “Wanted” post and state what you’re looking for and why you need it.
Contribute to the community when you can by offering items you no longer need. And as always, prioritize safety when arranging pickups. Let someone know your plans and choose public places to pick up furniture.
5. Ask friends and family
You can possibly get free furniture from friends and family, especially if they are looking to declutter or upgrade their home with new furniture.
Let family and friends know you need furniture. Be honest about your situation and clearly communicate the type of furniture you’re looking for, whether it’s a couch, table, bed, etc.
In a casual setting, such as at a family dinner, mention that you’re in need of furniture for your place. People may be more inclined to offer items they no longer use.
You could even make a Facebook post simply asking if anyone has any furniture they no longer want.
To make things as easy as possible, offer to pick up the furniture from your friend or family member. They’ll probably be really happy to get rid of the furniture and have more space in their home.
6. Ashley Furniture – Hope to Dream Program
Hope To Dream is a program by Ashley Furniture with the main goal of providing free mattresses and bedding to children in need. This program operates through partnerships with local organizations and charities.
The qualifications for the Hope To Dream program include:
Underserved children between the ages of 3 and 16 who do not have beds.
Families with very low income, live in poverty, or transitioning from homelessness.
Nominated by a school social worker, case manager, church, and other charitable organizations.
The Ashley Furniture free bed assistance program is a helpful one to look into if you are looking for free furniture for low income families.
Here is more information on the Hope To Dream program.
7. The Salvation Army Furniture Vouchers
Salvation Army accepts furniture donations, but sometimes they sell their furniture items at a high price. If you are low-income, you may qualify for Salvation Army free furniture vouchers.
The Salvation Army gives free furniture vouchers to people in need as part of their assistance program.
To get support, contact your local Salvation Army and ask about their assistance program, specifically related to furniture. Explain your situation and provide any required documentation to assess your eligibility for assistance. You may need to provide proof of your financial situation and ID.
Some Salvation Army locations conduct interviews as part of the application process. Once the application process is completed, the Salvation Army will inform you of your outcome.
If approved, the Salvation Army will provide you with furniture vouchers.
8. Dumpster Diving
Dumpster diving is a unique way to score free furniture, but it’s important to approach this activity with caution and respect for local laws and safety.
Here are some tips for dumpster diving:
Understand local laws regarding dumpster diving. Some areas have strict rules against it while other places are lenient.
Choose dumpsters in safe and legal areas and avoid private property without permission.
Inspect items for damage, stains, and signs of infestations.
Dumpster dive when people are likely to move out and throw away furniture, like the end of the month, college move-out periods, or large item pickup days.
Drive around your area on normal trash day as well, as sometimes people will put out furniture they no longer want.
It’s also handy to bring gloves and a flashlight. If you’re unsure about the legalities of dumpster diving, it’s best to check with local authorities.
9. College campuses on move-out day
College campuses are a gold mine on move-out day. Students throw away items they no longer need or cannot take home with them ALL THE TIME.
You should find out when the official move-out dates are for the colleges near you. These dates are always online on the college’s website.
On move-out days, arrive early to the campus where students are likely to leave items. Carry tools such as a screwdriver or wrench in case you need to disassemble furniture so that it can fit in your car.
As always, make sure to inspect furniture for damage, pests, and other issues.
10. NextDoor
NextDoor is a social networking platform that connects people in the same neighborhood or community. This is a great spot for finding free furniture locally.
To get started, sign up for NextDoor and verify your address to join the specific neighborhood community where you live. Browse the “Free” section as members are constantly posting items that they are giving away for free.
You can even set up alerts for specific keywords. Set up alerts for furniture-related items, so you can get notified as soon as someone posts free furniture in your area.
If you aren’t having luck searching for items on NextDoor, consider creating a “Wanted” post. Be specific about the items you’re looking for and why you need the item.
11. Answer online surveys and get free gift cards for free furniture
While, this will take some time, because furniture is not cheap, one way is to earn free gift cards.
You can earn free gift cards by answering online surveys and doing other online tasks, and you can use these gift cards to help you get free furniture.
So, this would work like this – You could get free gift cards to places like Amazon or TJ Maxx as a reward for answering online surveys or earning points in other ways. You can simply collect gift cards until you reach the amount that you need to buy your wanted and essential household items.
Some of my favorite rewards sites are:
I recommend signing up for all of them so that you can get the most surveys and tasks possible, which will then pay you with more gift cards.
My sister gets free gift cards all the time, and just the other day, she logged into several of the accounts that she is signed up for (such as Fetch Rewards and Swagbucks) and turned in her points. This led to her getting $275 in free Amazon gift cards. She personally likes to wait until she has a lot of gift cards that she can redeem at once, like for furniture!
Recommended reading: 16 Real Ways To Earn Free Gift Cards (Amazon, Target, Visa)
Frequently Asked Questions
Below are answers to common questions about how to get free furniture.
Where is the best place to find free furniture?
The best places to find free furniture are Facebook Marketplace, Facebook Buy Nothing Groups, and college or university campuses (on the last day of the semester before summer break).
Wherever you get furniture, it’s important to inspect items thoroughly for cleanliness and functionality before bringing it home.
Is there a way to get free furniture for low income?
If you or your family is low income, there are several ways you can get free furniture.
Here are some tips:
Reach out to local charities or outreach programs and inquire about available resources.
Most Salvation Army locations provide assistance to families in need.
Some Goodwill’s also have programs for individuals facing economic challenges. Contact your local Goodwill to find out more information and to see if they have Goodwill Industries furniture vouchers to give away.
Local churches and community centers sometimes organize furniture drives or give resources to those in need.
See if there are any furniture banks, American Red Cross (such as if you’re a victim of natural disasters like hurricanes and floods), social services, veterans groups, victims of domestic violence groups, or welfare programs near you (depending on the eligibility criteria, of course).
If you’re in North Carolina and are looking for furniture assistance programs, a place to reach out to is Crisis Assistance Ministry in North Carolina.
Reach out to thrift stores and see if they give away furniture to low-income households.
Is it safe to get free furniture?
When getting free furniture, it’s important to prioritize safety and take certain precautions. When getting new furniture, make sure to inspect the item thoroughly. You don’t want to take items home with infestations like bedbugs or cockroaches.
You will also want to clean the furniture before bringing it inside your home by using appropriate cleaning agents to disinfect and sanitize. It’s also important to check for recalls on furniture. You can check the Consumer Product Safety Commission (CPSC) website to search for recalls.
How To Get Free Furniture – Summary
I hope you learned some new ways when it comes to how to get free furniture.
Finding free furniture is possible with the right resources and patience. Resources, like Buy Nothing Groups, NextDoor, and other platforms, have many options for people in need of free furniture.
Whether you are looking to furnish a small apartment or a big house, there are many places to get free furniture near you.
A secured credit card is a bit different than an unsecured credit card. It’s an unsecured card that most of us think of as a traditional credit card. The difference between a secured card and an unsecured card is that a secured card requires a security deposit to get. That deposit is either a down payment on your credit line or your entire credit line.
And because building credit requires having credit to use, secured credit cards are a fabulous way to fill the gap for those that don’t have a credit history or who’ve ended up with a bad or poor credit rating. And roughly 30% of Americans have bad credit or poor credit, which is almost 70 million people
And with poor credit, you can find it difficult or even impossible to get a car loan or mortgage. It can even make getting an apartment lease tough. And it can make getting a traditional credit card tough too. And even if you can get a loan, lease or credit card, your bad credit will cost you in higher interest rates and monthly payments.
There’s no instant cure for bad credit, but you can improve your score with work and careful planning. One of the ways you can improve that score is with a secured credit card.
Are you asking: “What is a secured credit card?” Keep reading for an explanation of what one is and how it can help build or rebuild your credit score and/or credit history.
What Is a Secured Credit Card?
Some credit card issuers offer secured credit cards. These cards are an option for those with less-than-perfect credit scores or no credit history. But, they have a catch. That catch is a required deposit.
OpenSky® Secured Visa® Credit Card
No credit check to apply. Zero credit risk to apply!
Looking to build or rebuild your credit? 2/3 of cardholders receive a 48+ point improvement after making 3 on-time payments
Extend your $200 credit line by getting considered for an unsecured credit line increase after 6 months, no additional deposit required!
Get free monthly access to your FICO score in our mobile application
Build your credit history across 3 major credit reporting agencies: Experian, Equifax, and Transunion
Add to your mobile wallet and make purchases using Apple Pay, Samsung Pay and Google Pay
Fund your card with a low $200 refundable security deposit to get a $200 credit line
Apply in less than 5 minutes with our mobile first application
Choose the due date that fits your schedule with flexible payment dates
Join over 1.2 million cardholders who’ve used OpenSky to build their credit
Need more credit?
When you apply for a secured credit card, the credit card issuer takes a refundable security deposit. That deposit gets you approved for the card and for a small credit line. The credit line is usually small like $200 or $500. But some cards offer higher credit lines—even up to $3,000.
With most secured cards, your security deposit is your credit limit. Your deposit acts as collateral against any payments you might miss and your poor or absent credit rating. Since your deposit equals your total credit limit in most cases, the issuer won’t lose money if you miss a payment.
Secured Vs. Unsecured Credit Cards
The other main form of credit card is an unsecured credit card. Credit card issuers don’t require a deposit when for traditional unsecured credit cards.
You can have a good credit score and still get turned down for an unsecured credit card based. For example, they may turn you down if your annual income isn’t high enough or if you have several other credit cards near their limit
Who Are Secured Credit Cards For?
Secured credit cards are intended for two types of cardholders:
Those who want and need to improve bad credit or poor credit scores
Those who need to start building on a limited or nonexistent credit history
Both of these types of cardholders are challenged with low credit scores.
If you fit into either of the above categories and as a result, you’re having trouble qualifying for a traditional credit card, secured credit cards could be a good solution.
Keep in mind that it’s still possible to be turned down for a secured credit card, particularly if you have a blemish like bankruptcy on your credit history.
How Secured Cards Help You Build Credit?
The major credit bureaus calculate your credit scores. They use many factors in modeling that score. While a secured card can’t fix all the issues that go into your score, like payment history, debt usage, credit history, account mix and credit inquiries, it can help you with most.
One of the big factors in your credit score is the percentage of on-time payments. The higher the percentage the better with 100% being ideal. Issuers that offer secured cards report your payments to the credit bureaus each month the same way they report unsecured credit card payments.
The best way to build your credit with a secured card is to use the card responsibly and make your monthly payments on time, every time. That way, you’ll build a positive payment history on your credit.
There are other ways to use your card to build your credit too.
The credit bureaus also look at how much of your credit you use—called debt usage. If you keep the balance on your secured card low, it helps boost your score. As a general rule, don’t use more than 30% of your credit limit if possible. Even better, use no more than 10%. Thirty percent of $500 is $150. Ten percent is $50. Following that guideline shows you can use credit wisely by not maxing out your card or cards.
Another factor credit bureaus look at is your account mix. You want a healthy mix of accounts. Long-term accounts increase your available credit limit, so they lower your debt usage. They also add to your account mix. Keeping your secured card—even if you’re not using it—is a good idea.
Note though, if you apply for too many credit cards, it can hurt your score. Each application puts a hard inquiry on your credit report. So, find one card and apply and only apply for another if you’re declined. Also, consider applying to cards that don’t check your credit history like the OpenSky® Secured Visa® Credit Card or one that prequalifies you with a credit check like the Merrick Bank Secured Credit Card.
Merrick Bank Secured Credit Card
Choose your own credit line based on how much money you want to put down as a security deposit.
Initial deposits can be from $200 to $3,000. You can increase your credit line at any time by adding additional money to your security deposit, up to $3,000.
After 9 months, we review your account for a credit line increase. No additional deposit required!
Secured Credit Cards are great for people looking to build or rebuild credit and are available to people with all kinds of credit backgrounds.
Unlike a debit card or a pre-paid card, it helps build your credit history. We report your payment history to all three major credit-reporting agencies.
Get your FICO® Credit Score for free each month.
Fraud coverage if your card is lost or stolen. Access your account 24 hours a day, 7 days a week. Get help staying on track with available Auto Pay and account alerts.
Card issued by Merrick Bank, Member FDIC.
Tips for Using a Secured Card Wisely
Getting a secured card is only the first step. You must use the card in a smart manner to get the most benefit from it.
You might find yourself tempted to put the card away and never use it. That approach provides limited value for your credit score. It just shows up on your credit report as available credit.
You want to use the credit, a little, to prove you can use it responsibly. One way you can do that is through occasional small purchases.
For example, you can buy a parent or sibling a small gift they need, such as a blender or microwave. Then you pay that off over the course of a few months or in full at the end of the month.
Pay for minor car maintenance with it, like an oil change. Most oil changes come in under $75, which makes it something you can reasonably pay off in a month or two. You also get something useful and necessary out of the deal.
Don’t use your card for impulse purchases. Your credit limit might cover the cost of a video game or new jacket you want. Give yourself a two-day cooling off period and then ask: “Is that the best use of my credit card?” In most instances, the answer is no. Those kinds of purchases eat up credit you might need for an emergency, without providing much value in return.
Is There a Downside to Secured Cards?
Secured cards can have higher interest rates—dubbed annual percentage rate or APR—than other credit lines, though APRs vary a lot from card to card. There are many secured cards that have better APRs than traditional credit cards—especially rewards credit cards that charge higher interest rates to make up for the rewards you earn.
For example, the Applied Bank® Secured Visa® Gold Preferred® Credit Card at publication time has an ongoing APR of just 9.99% Fixed and the First Progress Platinum Prestige Mastercard® Secured Credit Card an ongoing APR of 15.24% Variable APR for Purchases.
Like any credit card, secured credit cards may charge an annual fee. Fees tend to range from $29 to $50. But, like traditional credit cards, there are secured cards that have no annual fee.
If you’re dreaming of earning points or cash-back with a secured card, you’re out of luck. These cards don’t come with added perks outside of helping you build credit. But, if you use it right and do build your credit, you’ll be on your way to qualifying for a rewards credit card before you know it.
Always make sure you understand exactly what the company offers before you apply. That way you can get a card that better suits your situation.
Parting Thoughts on Secured Credit Cards
You can answer the question, what is a secured credit card, by saying it’s an opportunity to build your credit.
When you can’t get an unsecured credit card, it makes rebuilding your credit more difficult. A secured credit card lets you establish that you can use credit responsibly, make on-time payments and keep an account in good standing.
Credit.com helps consumers by providing practical information about getting and using credit. To help you track your quest for better credit, and to find out where you stand before applying for a new credit card, get your free Experian credit score, right here on Credit.com. Your score includes a free credit report card that helps you track where you stand on payment history, debt usage, credit history, account mix and credit inquiries and how you can improve each area.
Discover card travel insurance used to be a common benefit of many of the bank’s cash-back cards. But in early 2018, Discover cut the travel insurance benefits on all of its cards (alongside benefits like extended warranty and price protection).
That means that today, Discover cards don’t offer any type of travel insurance. Instead, the bank now focuses on the simplicity of cash-back awards on its rewards credit cards.
Which other cards offer travel insurance?
Since Discover card trip insurance is a thing of the past, you might consider spending on other cards that offer travel insurance protections.
Chase cards with travel insurance
The Chase Sapphire Preferred® Card and Chase Sapphire Reserve® offer some of the most robust travel insurance coverages available on a credit card, including trip delay protection, primary auto rental collision damage waiver insurance, baggage delay insurance, lost luggage protection and travel accident insurance.
Chase Sapphire travel benefits
Chase Sapphire Preferred® Card
on Chase’s website
Chase Sapphire Reserve®
on Chase’s website
Travel insurance coverage
Trip cancellation.
Trip interruption.
Trip delay.
Baggage delay.
Lost luggage.
Auto rental collision damage waiver.
Travel accident.
Trip cancellation.
Trip interruption.
Trip delay.
Baggage delay.
Lost luggage.
Auto rental collision damage waiver.
Roadside assistance.
Travel and emergency assistance.
Travel accident.
Emergency evacuations and transportation.
Emergency medical and dental.
Learn more
Here is a full list of credit cards that offer Chase travel insurance:
Chase cards with travel insurance
Premium cards with travel insurance
Capital One Venture X Rewards Credit Card
NerdWallet Rating
Annual fee
$395
The Capital One Venture X Rewards Credit Card includes primary auto rental collision damage waiver, trip cancellation/interruption insurance, trip delay reimbursement insurance, a $1 million worldwide common carrier travel insurance policy and lost luggage protection.
No-annual-fee cards with travel insurance
While you’ll get the most travel insurance coverage from a premium travel card, some cards with no annual fee offer travel insurance as well.
What types of travel insurance coverages do credit cards usually offer?
Here are some of the most common types of travel insurance offered on credit cards.
Auto rental collision damage waiver insurance covers damage to or theft of cars that you rent using your credit card. For auto rental collision damage waiver insurance to apply, you must make your reservation and pay for your car rental with a card that has this benefit. You must also decline the car rental company’s collision damage waiver. Most auto rental collision damage waiver insurance is secondary, meaning that you must make a claim through your personal auto insurance before the credit card insurance will pay. Primary auto rental collision damage waiver insurance is a benefit on some premium credit cards.
Baggage delay insurance can reimburse you for expenses you incur as a result of a temporary baggage delay. Incidentals like toiletries, clothing, chargers and medication are typically reimbursable through baggage delay insurance.
Lost luggage reimbursement covers the cost to repair or replace your checked and carry-on baggage and its contents. Lost luggage coverage is usually provided as secondary insurance and will cover the difference between what an airline or other carrier reimburses you and the amount of your loss, up to the limit of coverage.
Travel accident insurance can compensate you or your survivors for loss of life, limb or function when you book your common carrier ticket, such as an airline ticket, with your card. Travel accident insurance typically specifies a payout amount for each type of covered loss.
Trip cancellation and interruption insurance may reimburse you for certain prepaid travel expenses when a trip is interrupted or canceled for a covered reason. Trip cancellation and interruption insurance policies vary widely but usually cover at least airfare booked with your card. Some policies may cover a wide range of prepaid travel expenses.
Trip delay reimbursement can cover meals and overnight accommodations when you are significantly delayed and you book your travel with your card. Trip delay benefits usually kick in after a certain number of hours of delays or when you are delayed overnight.
You can also buy travel insurance separately
If you aren’t interested in adding a new credit card to your wallet but want travel protections, you have options.
Consider shopping for one-off plans from third-party travel insurance companies to find coverage that fits your risk tolerance and budget. A bonus of purchasing travel insurance out-of-pocket — rather than using a card’s built-in benefits — is that you can customize the plan to meet your needs.
You can even add on Cancel For Any Reason coverage to more confidently protect your upfront and nonrefundable payments.
Expect to pay roughly 7% of your trip budget for travel insurance.
Should I use a Discover card for travel?
With no Discover travel protection, does it make sense to use a Discover card to book travel? The short answer is probably not.
Discover does not offer any credit cards featuring additional rewards on travel purchases. Discover does market the Discover it® Miles travel credit card, but the card earns 1.5 miles per dollar on every purchase and has no rewards or benefits specific to travel.
The information related to the Chase Freedom® Student credit card, Chase Slate Edge℠, Ink Business Plus® Credit Card, Starbucks® Rewards Visa® Card and the United Club℠ Business Card credit cards has been collected by NerdWallet and has not been reviewed or provided by the issuers of these cards.
How to maximize your rewards
You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024, including those best for:
Credit unions are among the few institutions where consumers can go to save on fees and interest rates for different banking services and loans. These not-for-profit cooperative financial institutions are owned by their members and return profits to them in the form of such savings. But a bipartisan bill first introduced in the U.S. Senate in 2022 could impact the ability of credit unions to provide those benefits, according to some opponents of the measure.
The Credit Card Competition Act would require financial institutions with more than $100 billion in assets to provide merchants with more choice when it comes to which payment network can process credit card purchases made in their stores. The bill’s supporters say introducing such options will help drive down costs for merchants and, in turn, for consumers.
Currently, when a consumer makes a purchase with a credit card, the merchant pays what’s known as an interchange fee to accept that payment and have it processed securely by the card’s payment network (typically Visa, Mastercard, American Express or Discover). That fee, set by the payment network the credit card runs on, is usually between 1% and 3% of the transaction — and many merchants have long complained that it’s too costly. The bill would give merchants the ability to choose a different network to process its transactions (a Visa card wouldn’t have to run on the Visa network, for example), and proponents of the bill believe that more choices will beget lower fees.
Most credit unions fall below the $100 billion asset requirement and wouldn’t be directly impacted by the proposed bill. But some fear the potential domino effect that this bill may have on these institutions’ ability to give back to their communities.
The feared ripple effects on credit unions
With assets of over $100 billion, there’s only one major credit union that would be directly impacted by the Credit Card Competition Act. Navy Federal Credit Union has 13 million members — many with ties to the military, including their qualifying relatives — and branches near military installations and overseas. The credit union declined to comment on the potential impact the bill would have on its community.
“It only impacts a single credit union,” says Doug Kantor, a member of the Merchants Payments Coalition executive committee and general counsel at the National Association of Convenience Stores. “All the rest are exempt from the bill.”
Still, while the rest of the nation’s credit unions would not be affected directly, concerns persist. For Mike Lee, president and CEO of KCT Credit Union in Illinois, there’s worry that the proposed legislation could have lasting indirect impact. Credit unions earn interchange fees when their cards are swiped, same as the big banks. The bill could drive interchange income down for credit unions if Mastercard and Visa have to eventually lower their costs to compete with another network.
“We just don’t have a lot of fat, so even something as small as interchange, taking that away from me is going to have an effect on the credit union,” Lee says. “I might not be able to be as cheap on loans as I was, I maybe can’t offer as good a CD. When you’re already working on low margins, the well is not endless.”
KCT Credit Union also shares its interchange revenue with the community like the school district’s foundation, which provides scholarships for kids and grants for teachers to fix up their classrooms or cover school supplies, according to Lee. “If they mess with this a lot, all of these partners, all of these school districts I’m sharing my interchange with, I don’t know if I can do that anymore,” he says.
On the opposite end, the measure’s sponsors argue that competition in the marketplace will benefit consumers. “Our legislation would rein in the big banks and the credit card industry, drive down costs for convenience stores, gas stations and other small businesses, and ultimately pass those savings down to consumers,” said bill sponsor U.S. Sen. Dick Durbin, D-Ill, in a news release.
But whether those savings are actually passed down to consumers by merchants is debatable. After all, there’s no guarantee or way to ensure that they do so.
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Will past predict future?
There’s some precedent for swipe-fee legislation. In 2010, Sen. Durbin sponsored legislation that succeeded in reducing swipe fees on debit card purchases, and its subsequent impact on consumers is arguable.
Multiple studies conducted since the 2010 Durbin amendment became law conclude that the cap imposed on debit card interchange fees did not significantly lower prices for consumers. A 2015 economic brief published by the Federal Reserve Bank of Richmond showed that more than 21% of merchants actually increased their prices after the rule went into effect.
By contrast, some supporters, like the Merchant Payments Coalition, have cited a study by Robert Shapiro, a Georgetown University economist, which claims that the Durbin amendment saved merchants an estimated $8.5 billion in 2012, the first full year that it was in effect. And $5.87 billion of those savings (69%) was passed on to consumers in the form of lower prices.
To be clear, the new credit card legislation wouldn’t impose a cap on swipe fees like the 2010 amendment did for debit cards, so its not an apples-to-apples comparison. But the broader argument, that swipe fee savings by merchants would lead to lower prices for consumers, applies to both bills.
Lower prices could have hidden effects, too
If the premise of the Credit Card Competition Act proves true — if more payment processing choices leads to lower swipe fees, and merchants pass those savings along to consumers in the form of lower prices — might hidden costs still turn up elsewhere?
Several studies suggest that Sen. Durbin’s 2010 amendment resulted in financial institutions raising checking account prices and increasing minimum balance requirements. The banks exempt from the cap also adjusted prices as a competitive response to those price changes, according to a 2017 study by the Federal Reserve. Credit unions were impacted in a similar manner, forced to reduce services to members as revenue declined, according to a 2023 report commissioned by the Credit Union National Association (now known as America’s Credit Unions) and the American Association of Credit Union Leagues. The number of credit unions has also shrunk since this legislation was implemented. Nearly a third or fewer credit unions exist today compared with the number that existed in 2011, according to that same report.
Still, some supporters of the Credit Card Competition Act claim that the Durbin amendment had no impact on the cost and accessibility of banking products.
“What happened with debit card fees didn’t cause free checking to increase, didn’t cause it to decrease,” Kantor says. “Free checking is determined based on the financial institutions wanting to compete for customer deposits, and that’s driven by a whole bunch of other things going on in the economy, like the interest rate environment and other stuff. It’s just a misdirection from some of the large financial institutions that would rather not have to compete for business.”
The future of the bill
The Credit Card Competition Act continues to be a topic of debate across different industries that could be potentially impacted by it if it becomes law. It’s unclear whether the Credit Card Competition Act will come to fruition, or what its exact outcome could ultimately be for consumers.
Sponsors made previous attempts to attach the Credit Card Competition Act as an amendment to the National Defense Authorization Act, but it didn’t make it into the final bill. Currently, they continue aggressively rallying support to bring it to the floor for a vote.
What you can do
Groups on both sides of the Credit Card Competition Act encourage consumers to contact their representatives in Congress:
The Electronic Payments Coalition opposes the legislation, predicting that it will decimate credit card rewards programs without leading to a meaningful decline in retail prices for consumers. It provides guidance for contacting lawmakers at the website Hands Off My Rewards.
The Merchants Payments Coalition supports the legislation, saying it will make fees paid by retailers more transparent and competitive, could lead to lower prices, and doesn’t have to affect credit card rewards programs. It explains its stance at the Merchants Payments Coalitionwebsite.
A previous version of this article misstated the Merchant Payments Coalition’s position on the Durbin amendment and Credit Card Competition Act. The article has been corrected.
News that Capital One has struck a deal to buy Discover shook up the normally quiet Presidents Day banking holiday on Monday, teeing up the possibility of making Capital One the nation’s largest credit card issuer.
The Wall Street Journal reported the potential merger on Monday, followed by other outlets like Bloomberg and the New York Times. Capital One then released a statement confirming the planned acquisition.
Capital One Financial Corp., based in McLean, Virginia, is the nation’s ninth-largest bank by total assets, with 259 physical branch locations, 55 “Capital One Cafes” across the country and a major online banking operation. Discover Financial, based in Riverwoods, Illinois, is a mostly online bank with a single physical branch in Delaware. The all-stock deal is valued at $35.3 billion.
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Is Discover on board?
Michael Rhodes, CEO and president of Discover, touted the deal in Capital One’s press release: “The transaction with Capital One brings together two strong brands with enhanced ability to accelerate growth and maximizes value for our shareholders, enabling them to participate in the tremendous upside of the combined company.”
What happens next?
Bank mergers must be approved by bank regulators and by shareholders of each company. If the deal goes through, Capital One estimates that it will close in late 2024 or early 2025.
What would it mean for customers?
During the approval process, little is expected to change as the companies continue to operate independently. Even if the deal is approved, though, current customers may see little effect.
“I think it’s not going to be a big change for credit card customers,” says David Robertson, editor and owner of the Nilson Report, a payment card industry trade journal. Discover cards, he says, are primarily cash-back cards, while Capital One offers a variety of rewards cards. A merger, Robinson says, “might allow for better rewards programs for both companies.”
While the Wall Street Journal reported that Capital One plans to keep the Discover name on at least some cards, details have not been confirmed by either company. Likewise, there is no detail yet on how banking customers will be affected.
Why merge?
Item no. 1: Discover’s payment network.
Transactions on Capital One cards are processed over the Visa and Mastercard payment networks. Discover, however, operates its own network, making it both a card issuer and a payment processor, similar to American Express. Robertson says acquiring a payment network and building direct relationships with more merchants is likely a driving factor in Capital One’s acquisition, which puts a 26.9% premium on Discover’s Feb. 16 closing stock price.
”From Capital One’s founding days, we set out to build a payments and banking company powered by modern technology,” Richard Fairbank, founder and CEO of Capital One, said in the news release. “Our acquisition of Discover is a singular opportunity to bring together two very successful companies with complementary capabilities and franchises, and to build a payments network that can compete with the largest payments networks and payments companies.”
In addition, Robertson notes, there is not a great deal of overlap between the two banks’ customer bases. “One would assume that everyone that has a Discover Card also has a Visa or MasterCard,” he says. “Capital One may get access to that spending.”
Capital One is the fourth largest credit card issuer in the United States by loan volume; Discover is ranked sixth, according to Nilson Report data. Combined, they would nudge ahead of Chase to become the largest card issuer.
Sheer economy of scale is another factor. “Should [the merger] occur, Capital One would be the largest credit card issuer” as measured by outstanding debt, says Robertson.
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Capital One’s $35.3 billion all-stock deal to purchase Discover could make it the largest credit card issuer in the country, in addition to expanding both its digital banking presence and Discover’s global payment network.
The deal arrives as consumers are struggling to keep up with inflated prices — and they’re carrying more credit card debt than before the pandemic. A report by the Federal Reserve Bank of New York, released on Feb. 6, found that Americans held a collective $1.129 trillion in credit card debt at the end of 2023. By comparison, by the end of 2019, Americans held $930 billion in credit card debt.
The report also showed that borrowers are having trouble repaying their debt. Serious delinquencies among credit card borrowers rose 6.36% in the fourth quarter of 2023 compared with a 4.01% increase at the same time in 2022. Both Capital One and Discover show an increase in delinquency rates, but Discover’s fourth-quarter results reported a larger spike in consumer card delinquencies than Capital One’s.
After a Capital One call for investors on Tuesday morning, the markets responded: Discover’s stock rose while Capital One shares dipped slightly.
In the call, Capital One indicated it expects the deal to be complete by the end of 2024 or early 2025 — that is, if federal regulators allow it. The acquisition is expected to face close scrutiny in the coming year.
Here’s what you need to know about Capital One’s Discover acquisition.
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1. Capital One would be a formidable credit cards competitor
The deal opens the door for Capital One to become the nation’s largest credit card issuer by outstanding debt, outpacing JPMorgan Chase and Citigroup, according to the payment industry trade journal the Nilson Report. The company will remain based in McLean, Virginia, while maintaining a significant presence in Chicago, where Discover is based.
In the call with investors on Tuesday, Richard Fairbank, CEO and chairman of Capital One, touted the benefits of acquiring Discover’s global payment network, which will allow Capital One to more directly deal with merchants as opposed to a network intermediary. The more merchants Capital One can reach, the more money it stands to make over time.
While Capital One still holds contracts with Visa and Mastercard for many of its credit products, it will move at least some of its cards onto the Discover network over time, thus keeping a larger slice of the lucrative merchant fees its customers generate.
By owning a payment network, Capital One is poised to compete with its most direct competitor, American Express, and reduce its dependency on the two biggest players in global payments: Visa and Mastercard.
Fairbank says the company is also hoping to expand Discover’s network deeper into the global market.
2. Capital One hopes to expand its digital banking reach
Capital One is the ninth-largest bank in the U.S. with both physical branches and an online presence. Meanwhile, Discover’s banking presence is overwhelmingly online. But both are credit card-first, banking-second companies. The acquisition won’t change that, but it will enable Capital One to expand further into banking.
The deal would accelerate Capital One’s banking business by allowing the company to tap in to Discover’s network for banks. In the call with investors, Fairbank said Capital One plans to move its debit card business over to the Discover Signature debit network to help Discover compete with the other three networks.
Fairbank said that branding for Discover’s banking network would remain Discover. “Capital One as the network might not be as ideal a thing for other banks to choose as the Discover brand,” he said.
3. Discover would remain its own brand
Discover will remain its own brand in the combined company. In the investor call, Fairbank said Capital One will keep Discover’s branding and continue to market it. “Over time, customers would understand this is part of Capital One,” he said.
Fairbank indicated that it was unrealistic to convert the Discover brand into Capital One. “Think about all those stickers that are out there at every point of sale and all the real estate that’s now on every online checkout page and so on,” he said. “It would be a really big lift to convert that to the Capital One brand.”
Fairbank noted that while Discover is accepted nearly universally in the U.S., it has an image problem that Capital One hopes to change. He said, “Our research confirms that customers are very satisfied with acceptance, but the perception of acceptance among noncustomers lags the reality.”
Fairbank says Capital One plans to move some of its credit card volume to Discover’s network in order “to enhance its scale.” He also said the company “will lean hard into further building the brand and the perceived acceptance of the credit card network here in the United States.”
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4. The deal faces regulatory hurdles
Consumers won’t see any changes from the acquisition anytime soon. That’s because the deal won’t be complete until shareholders and regulators approve it.
The Justice Department, banking regulators and the Federal Deposit Insurance Corp. are likely to scrutinize the proposed deal. The Biden Administration has toughened its approach to mergers and acquisitions, including those still underway like the Kroger and Albertsons grocery chain merger and Alaska Airlines’ takeover of Hawaiian Airlines. And last month, a federal judge blocked JetBlue’s buyout of Spirit Airlines under antitrust laws.
The U.S. Office of the Comptroller of the Currency has also said it plans to institute a more complex, and ultimately slower, process for bank acquisitions. Capital One’s Discover proposal faces standard regulatory procedures, so it’s unclear whether these stricter requirements would apply to this acquisition.
Fairbank noted in the call with investors that both Capital One and Discover will be filing approval applications with the federal government in the next few months and said “we believe that we are well-positioned for approval.”
5. The bigger the company, the higher the interest rates
Credit card interest rates are now much higher than in recent years, mirroring the broader rate environment. The average APR among credit cards that incurred interest was 22.75% in the fourth quarter of 2023, according to data from the Federal Reserve.
When it comes to interest rate offers, bigger companies aren’t always better, at least not for consumers. An analysis of 2023 credit card interest rate data by the Consumer Financial Protection Bureau, released on Feb. 16, found that the largest credit card issuers offer high interest rates — a maximum APR over 30% among nearly half of those issuers.
The report found a broad disparity between the median APRs on credit cards offered by large and small financial institutions based on credit scores. The biggest difference is among customers with good credit scores (620 to 719 in this report): Large card issuers offer a median APR of 28.2% — a difference of 10.02 percentage points compared with the median APR offered by smaller card issuers.
Big companies are also more likely to include an annual fee, and those fees are 70% higher than at small banks and credit unions, according to the CFPB report.
Still, big companies do tend to offer more generous rewards and discounts, like cash back and travel points, with their credit cards compared with small institutions. But the best perks are offered to the wealthiest customers, who make the most money through frequent and larger spending at merchants.
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