cash back

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The AAA credit card portfolio requires a little history lesson.

After Bread Financial formally partnered with AAA in 2022, the companies launched two co-branded credit cards: the AAA Travel Advantage Visa Signature Credit Card and the AAA Daily Advantage Visa Signature Credit Card. Both are issued by Bread Financial, formerly Comenity Bank, and offer solid rewards rates, although earnings are capped.

A third co-branded card, the AAA Cashback credit card, is issued by U.S. Bank.

The Travel Advantage and Daily Advantage credit cards have similar features, but they differ from their Cashback cousin when it comes to eligibility requirements, rewards and sign-up bonus.

Here’s what you need to know about the three AAA credit cards to help you decide the best fit for your lifestyle.

1. There are 3 AAA credit cards

Before applying for one of the AAA credit cards, make sure you’re filling out an application for the card you really want. The three AAA credit cards have different rewards structures:

  • AAA Daily Advantage credit card.

  • AAA Travel Advantage credit card.

  • AAA Cashback credit card.

AAA Daily Advantage credit card

AAA Daily Advantage is billed as a card for everyday spending. And for many cardholders, the rewards categories do represent common spending categories. The Daily Advantage card earns:

  • 5% cash back at grocery stores.

  • 3% cash back on gas and EV charging, wholesale clubs, streaming services, pharmacy and AAA purchases.

  • 1% cash back on all other purchases.

There’s a $500 annual cash-back cap on rewards earned at grocery stores, wholesale clubs and gas stations combined. After hitting the cap, purchases in those categories earn 1% back for the rest of the year. A $500 rewards limit may seem high, but some families will easily exceed it. If you spend $10,000 annually at grocery stores alone, you’d hit the $500 cash-back cap.

AAA Travel Advantage credit card

As the name suggests, AAA Travel Advantage is a travel-centric card, and its rewards categories bear that out. The Travel Advantage card earns:

  • 5% cash back on gas and EV charging.

  • 3% cash back on travel, restaurants, grocery stores and AAA purchases.

  • 1% cash back on all other purchases.

Rewards earned on gas and EV charging are capped at $350 per calendar year. The rewards rate drops to 1% once you’ve hit the limit. Given the 5% rate, cardholders would need to spend $7,000 a year (or about $583.30 per month) on gas and EV charging to reach the $350 rewards cap.

AAA Cashback credit card

The rewards rates are less impressive on the AAA Cashback card compared to the other two cards; however, there’s no cap on rewards. This card earns:

  • 3% cash back at grocery stores, gas stations and dining.

  • 2% cash back on AAA memberships, travel and insurance.

  • 1% on everything else.

🤓Nerdy Tip

Bread Financial doesn’t allow consumers to have both the Daily Advantage and Travel Advantage cards.

2. You may need AAA membership to get one of the cards

AAA membership is required to get the AAA Cashback credit card. Pricing depends on where you live, but in general, a membership can cost from $38-$164 a year for one person.

However, you don’t have to be a member of AAA to apply for the Daily Advantage or the Travel Advantage credit cards.

3. Reward redemption options vary slightly by card

If you have the AAA Cashback Visa, rewards may be redeemed for the following:

  • AAA gift cards.

  • Merchandise.

  • Statement credit ($25 minimum to redeem).

  • Direct deposit ($25 minimum to redeem).

  • Gift cards. 

The redemption options for the Daily Advantage and Travel Advantage cards include everything listed above plus Apple products and AAA merchandise, services and travel. Cardholders must have at least $5 to redeem if they opt for cash back or a statement credit.

For all three AAA cards, rewards expire after five years.

4. Sign-up bonuses vary by card, too

Currently, the Travel Advantage and Daily Advantage credit cards have the same sign-up bonus: a $100 statement credit for new cardholders who spend $1,000 on their AAA Visa Signature card in the first 90 days of account opening.

As of this writing, the welcome offer for the AAA Cashback card is potentially more valuable, depending on your spending. Instead of the standard 2% rate, new AAA Cashback cardholders will earn 4% on AAA memberships, travel and insurance for the first six months, up to $6,000. Were you to hit the $6,000 spending cap, you’d get $240 cash back.

5. Fees are minimal 

For the Daily Advantage and Travel Advantage cards, the combination of a $0 annual fee and a fixed 5% rewards category is especially notable. Other credit cards that feature a 5% rate often come with an annual fee or require you to actively track and opt in to bonus categories that rotate every quarter.

Source: nerdwallet.com

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The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.

To build credit with a secured credit card:

1. Keep your balance low.
2. Use it only for small regular purchases.
3. Monitor your spending.
4. Pay off the entire balance each month.

Whether you’re a teenager trying to start building credit or looking to rebuild your credit after some bad luck, it can be difficult to get creditors to give you opportunities. You know you need to build credit, but you can’t do it if no one will issue you credit. Fortunately, you can use a tool like a secured credit card.

Wondering how to build credit with a secured credit card? Read on to learn everything you need to know to start turning your credit around.

Table of contents:

  • Research your options
  • Put down your deposit
  • Spend wisely on your secured credit card
  • Never miss a bill payment
  • Track your progress on your credit report
  • Use your improved credit to graduate to an unsecured credit card

What is a secured credit card?

A secured credit card is just like a regular credit card, but it requires a deposit that covers the spending limit. Since the deposit will cover what you owe if you don’t pay your credit card bill, it reduces the credit card issuer’s risk when extending you credit.

It’s just like when your landlord requires you to pay a security deposit to cover any damages to the apartment. Even if you leave without paying for the repairs, the landlord can cover them using your security deposit.

Use the tips below to help you use your secured credit card responsibly and build your credit.

1. Research your options

Don’t sign up for just any secured credit card. Take the time to find the best secured credit card for your situation and carefully consider the pros and cons of secured credit cards before applying.

Start the process by checking your credit. While secured credit card issuers are more likely to extend you credit no matter your credit score, not all do. Make sure you know what your credit score is before applying.

Armed with your credit score, take some time to research different secured cards. While most secured credit cards don’t offer the same features as unsecured credit cards, you’ll find a few that do.

Consider which of the following features are most important to you:

  • Flexible deposits
  • Low annual fees
  • Automatic account reviews to determine if you’re ready for an unsecured credit card
  • No credit check (note that this may come with a higher annual fee)
  • Reward or cash back options

Finally, consider any potential costs associated with unsecured credit cards. Discover if the deposit is refundable and if there are any application or annual fees.

Once you’ve decided on a card, fill out the application and send in the application fee (if there is one).

2. Put down your deposit

After you’ve been approved, the credit card issuer will tell you your credit limit and ask you to pay your deposit. Make sure you do so quickly—if you don’t get your deposit in on time, they may close your account before you have a chance to use it.

Remember, the amount you’ll have to deposit will depend on your credit card issuer. Some secured credit card issuers require your deposit to cover the entire credit limit, while others may only require you to put down half of it. Some companies also allow you to raise your credit limit by increasing your deposit, while others aren’t as flexible.

3. Spend wisely on your secured credit card

After making your deposit, you can use your secured credit card like you would any other credit card to build credit. You can use your secured card to make purchases anywhere that takes a credit card, and when you hand your card to the sales clerk to make your purchase, they won’t be able to tell it’s a secured card.

But if you want to improve your credit, you must use your secured card wisely. Keep the following tips in mind:

  • Make regular small purchases with your secured card. Consider using your card for one type of purchase, such as gas or monthly subscriptions. This will keep your balance low while also keeping your spending in check.
  • Keep the balance as low as possible. Experts typically recommend keeping it below 30 percent, but since you’re actively working to improve your credit, try only using 10 percent of your available credit. This means that if your card has a limit of $1,000, you should keep your balance below $100. Small regular purchases will help you accomplish this.

4. Never miss a bill payment

The deposit on your secured credit card does not cover your purchases, so you still need to pay your monthly bill. While you are only required to pay the minimum balance, make it a habit to pay the entire balance off each month.

This will keep your credit utilization low and help you avoid paying interest on an unpaid balance. Avoiding interest charges is especially important on secured credit cards since they often carry higher interest rates than unsecured credit cards.

5. Track your progress on your credit report

As you use your secured credit card, monitor your credit score closely. While increasing your credit may be a slow process, seeing small gains can be motivating. Plus, it will help you ensure your credit report is accurate.

Some credit card companies are starting to offer credit monitoring services and include your credit score on your bill. If your credit card issuer doesn’t offer this, you can see your credit report at AnnualCreditReport.com.

6. Use your improved credit to graduate to an unsecured credit card

As your credit improves, you can upgrade to an unsecured credit card. Some companies also refer to this as “unsecuring” or” graduating” to an unsecured credit card.

Some secured credit card issuers will automatically upgrade you to an unsecured credit card, at which point they’ll usually apply your security deposit as a statement credit offsetting your purchases. You can also apply for an unsecured credit card, at which point you’ll close the secured credit card and the issuer will refund your deposit. The best time to upgrade to an unsecured credit card is when you feel confident in your credit card habits. You want to ensure you can use the credit card responsibly to keep building your credit.

What are the benefits of a secured credit card?

Secured credit cards offer several advantages:

  • Most of them report to the three major credit bureaus (Experian®, TransUnion® and Equifax®) so you can build your credit.
  • Since the security deposit covers their risk, secured credit card issuers are more likely to issue credit to people with no or poor credit.
  • You can gain credit card experience and develop healthy credit card habits.
  • Over time, you can work toward an unsecured credit card, which may offer better features.

How long does it take to build credit with a secured credit card?

How long it takes to build credit with a secured credit card depends on several factors, including your credit history and your behavior with the secured credit card. Someone who makes a lot of large purchases on their secured card might see their score improve slower than someone who only makes small purchases, even if both people pay their bills off in full each month.

Typically, it takes six months to a year to see your credit health improve, making a secured credit card one of the best ways to build credit relatively fast. Remember: a secured credit card doesn’t automatically improve your credit—you have to use the card responsibly.

FAQ

Learn more about using secured credit cards to improve your credit below.

How much will a secured credit card raise my score?

Using a secured credit card responsibly may help your credit slightly in the short term, especially when you combine it with other credit improvement strategies. Larger gains will come as you continue to work on your credit over the course of a year or two.

Your credit situation and how responsibly you use the secured credit card will determine how much it improves your credit. Increasing your credit takes time and patience—no credit improvement strategy offers an overnight fix.

Can you increase a secured credit card limit?

Secured credit cards often have low balances, but you may be able to get a credit limit increase. Contact your credit card issuer and ask if you can increase your deposit in exchange for a larger limit. You can also ask if you are eligible to graduate to an unsecured credit card, which typically comes with a larger credit limit.

Work on your credit with Lexington Law Firm

Remember: a secured credit card is a powerful tool to improve your credit, but only if you use it responsibly—spend wisely, pay your bill on time every time and keep your balance low. Take this time to develop a healthy relationship with credit card usage, be patient and trust the process.

If you’re looking to learn more about how to  build your credit, the team at Lexington Law Firm can help. Get a free credit snapshot today to get started.

Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.

Source: lexingtonlaw.com

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Inside: Unlock the secrets of debt types and management. Explore everything from mortgages to student loans, and devise savvy debt strategies for financial health.

Understanding debt is essential as it is a common financial obligation that, must be managed wisely, if mismanaged, can lead to financial strain.

Most importantly, comprehending the fundamentals of debt is crucial for financial literacy. Debt spans various forms of credit, from mortgages to personal loans to credit cards.

Debt is a powerful force in the consumer’s financial life; it has the power to either create opportunities or trigger economic stress.

You must realize the multifaceted role that debt plays is a prerequisite for achieving and maintaining financial stability. As such, a comprehensive understanding of the various types of debts is not merely beneficial—it is indispensable.

Right now, consumer debt has reached $17.1 Trillion in 2023. 1

With this knowledge, you can navigate the financial tides with confidence, distinguish between advantageous and precarious borrowing, and ultimately wield debt as a tool for prosperity.

This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.

The Mainstream Maze Examples of Debt Types

Understanding the various types of debt is crucial for anyone looking to maintain or improve their financial health.

Debt, often viewed in a negative light, can actually be leveraged as a powerful tool if managed correctly. Each category of debt — from secured to unsecured, installment to revolving — functions differently and influences your financial profile in its own unique way.

Recognizing these differences enables individuals to make informed borrowing decisions, repay their debts more effectively, and develop strategies tailored to their personal financial goals.

With this background in mind, let’s understand the different types of debt:

Navigating Through Secured and Unsecured Loans

  1. Secured loans require collateral, reducing risk for the lender, like a mortgage or auto loan.
  2. Unsecured loans rely on creditworthiness and come with tighter requirements.

Understanding Revolving vs. Installment Debt

  • Revolving debts, like credit cards, offer flexible borrowing limits.
  • Installment debts involve fixed payments over a period.

Fixed-Rate vs. Variable-Rate

Choosing between fixed-rate and variable-rate debt shapes your financial commitment and interest rate.

  • Fixed rates provide predictability in repayments.
  • Whereas variable rates fluctuate with market trends, potentially lowering costs or introducing variability.

Short-Term Debt vs. Long-Term Debt

  • Short-term debt, to be settled within a year, requires immediate attention.
  • Long-term debt, with extended maturities, often permits strategic repayment over time.

Defining Callable Debt vs. Noncallable Debt

  • Callable debt allows issuers an early exit option, granting them the ability to retire debt before maturity.
  • Noncallable debt, in contrast, guarantees the term’s completion, offering predictability for both investor and issuer.

Delving into Secured Debt Details

Secured debt plays a pivotal role as it hinges on collateral to assure lenders of repayment.

This type of debt brings with it the potential for lower interest rates and higher approval chances, but also the risk of losing valuable assets should a borrower default.

Collateral Commitment: Risks and Rewards

Rewards of Secured Debt Risks of Secured Debt
Lower interest rates due to reduced lender risk. Risk of losing the collateral property, such as a house or car, on failure to make payments.
Access to larger loan amounts because of collateral provision. Limited use of borrowed funds typically for a specific purpose (e.g., a home or vehicle).
With continued payments, a credit score increase is likely. Possibility of incurring additional fees or penalties if the loan goes into default and the property is seized.
Increased likelihood of loan approval because the loan is secured by an asset. Potential negative impact on credit score and financial stability if unable to repay the loan.

Notable Nuances of Mortgages, Auto Loans, and More

Mortgage interest rates generally fluctuate between 3% and 5%, influenced by economic conditions, with the option of fixed rates or adjustable rates that can change annually within set limits. Typically, a fixed interest rate is the best option for homeowners. Most common mortgage lengths are 15 or 30 year terms.

In contrast, auto loan interest rates tend to be high with shorter terms of 5 or 7 years. Many times, these loans are often subsidized by automakers’ promotional offers to attract buyers with good credit, thereby varying considerably based on the loan’s duration and the borrower’s creditworthiness. Another option is to secure a car loan at a local credit union.

With mortgages tied to real estate and auto loans to vehicles, both present unique terms and implications for borrowers navigating the nuances of substantial purchases.

National Debt Relief

While this isn’t our first choice to pay off debt, for some of readers, it is the only option to get ahead on their debt.

Either way, it is helpful to confront your situation, and then find out your debt relief options – with no obligation.

Free Debt Relief Quote

Unmasking Unsecured Debt

Unsecured debt is a form of financing that does not require borrowers to pledge assets as collateral.

This type of debt is granted based on an individual’s creditworthiness and typically carries a higher interest rate due to the increased risk to lenders. The typical interest rates start at about 15% and go upwards from there.

Credit Cards and Personal Loans: No Collateral Needed

Credit cards and personal loans exemplify unsecured debt, with no collateral needed to secure them. Their accessibility hinges on the borrower’s credit history, representing a choice for financing without asset risk.

Many college students start with their first credit card and have no idea how it works.

The Pros and Perils of Unsecured Borrowing

Unsecured borrowing can offer financial flexibility without collateral, a clear advantage.

However, the perils include higher interest rates and the potential for a strained credit history if repayments falter, necessitating cautious consideration. This is how many people quickly rack up large amounts of debt without realizing the consequences of their actions.

Thus, why young adults need basic financial literacy.

Rolling with Revolving Debt

Revolving debt is a type of credit that lets you borrow money up to a certain limit, repay it, and then borrow again as needed, often seen with credit cards or home equity lines of credit (HELOC).

Unlike fixed installment loans, this type of credit emphasizes the borrower’s ability to manage and repay borrowed funds over time, which can have a significant influence on their credit score.

Mastering the Mechanics of Credit Lines

Credit lines empower consumers with fluid financial options, replenishing funds as balances are paid. Understanding their mechanics is critical in leveraging such revolving credit without succumbing to debt traps through accumulated interest.

Evaluating the Ubiquity and Utility of Credit Cards

Credit cards are ubiquitous in modern-day finance, serving as a versatile tool for electronic payments. They offer convenience and the potential for rewards but can lead to costly interest charges for those who fail to manage them judiciously.

Personally, I received a $942 cash back from my credit card. But, I pay off my balance monthly.

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Installment Debt Explored

Installment debt is a financial mechanism that allows individuals to borrow a lump-sum amount of money and repay it over a fixed period through regular payments, known as installments.

These debts, which can be secured or unsecured, usually involve fixed interest rates and include common financial products like mortgages, auto loans, student loans, and personal loans.

How Student Loans and Mortgages Shape Long-term Debt

Student loans and mortgages are pivotal in shaping long-term debt landscapes. They represent significant financial commitments with enduring impacts, facilitating education and homeownership while posing substantial repayment responsibilities.

You need to be wise in how much you decide to take out for either student loans or a mortgage. It is always best to take out less than offered by your lender.

Paying Off Different Types of Debt

Around here at Money Bliss, I stress the importance of paying off debt fast!

  • To effectively pay off different types of debt, starting with high-interest rate debts, such as credit cards, is essential because it reduces the amount of money paid on interest over time, allowing for more significant savings. This is the core idea behind the “avalanche” approach.
  • Alternatively, paying off smaller balances first using the “snowball” method can provide psychological wins and motivate continued debt repayment efforts.
  • For structured debts like student loans and mortgages with lower interest rates, adhering to the standard repayment plan while focusing extra payments on higher-interest debt can be a balanced strategy.
  • Additionally, employing methods like debt consolidation or transfers to lower APR vehicles can further aid in reducing the cost of borrowing and accelerate debt payoff.

Learn more about debt snowball vs debt avalanche.

Striking a Balance: Managing Varied Debts Wisely

Crafting an effective debt management strategy is a fundamental step toward financial health.

Implementing tailored repayment plans, such as debt consolidation or debt management programs, can alleviate the stress of multiple liabilities.

You don’t want to be at a point where you must get out of debt ASAP. Employing debt payoff methods such as the Snowball and Avalanche techniques can accelerate the journey toward being debt-free.

Credit counseling is often necessary to dig into the root of spending problems because it provides professional guidance on budgeting and debt management. Thus, helping individuals restructure their financial practices and develop a targeted plan to overcome excessive spending habits.

Frequently Asked Questions (FAQs)

Debt represents money owed across various agreements, while a loan is a specific form of debt where money is borrowed under agreed repayment terms and interest rates.

The most common debts include mortgage debt, credit card debt, auto loans, and student loans, reflecting the widespread financial needs for housing, education, transportation, and consumer spending.

Opting to pay off higher-interest revolving debt first generally saves money and boosts credit scores more effectively than tackling installment loans, due to the compounding effect of revolving debt interest.

This is a personal decision and one you must decide on yourself.

Which Consumer Debts Make Sense to You?

In conclusion, the takeaways are not all debt is created equal, and each type can affect your financial future differently. By recognizing whether a debt is secured or unsecured, or if it revolves or is due in installments, you can better strategize how to handle your obligations.

This knowledge is not only beneficial for making decisions about new loans or credit lines but also for creating a robust plan to tackle existing debt.

Comprehending this area of financial literacy, you position yourself to make wiser decisions that align with your financial aspirations. Ultimately, striving for a future where debt works for you, not against you.

By gaining a deeper understanding of the characteristics and consequences of each debt type, you can not only avoid common pitfalls but also harness debt as an instrument to build wealth and secure a robust financial future.

Then, you can stick with these debt free living habits.

Source

  1. Experian. “Experian Study: U.S. Consumer Debt Reaches $16.84 Trillion in Q2 2023.” https://www.experian.com/blogs/ask-experian/research/consumer-debt-study/. Accessed May 7, 2024.

Know someone else that needs this, too? Then, please share!!

Did the post resonate with you?

More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!

Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.

Source: moneybliss.org

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Did you know that there are many ways to get free Target gift cards? You can get free Target gift cards and make extra money for this favorite store. Target is a very popular store in the United States, and their gift cards make a great present for any occasion. Whether you’re getting one as…

Did you know that there are many ways to get free Target gift cards?

You can get free Target gift cards and make extra money for this favorite store.

Target is a very popular store in the United States, and their gift cards make a great present for any occasion. Whether you’re getting one as a gift or want to use them for your shopping, you might want to know how to get Target gift cards without spending any extra money.

You can earn these free gift cards through many different ways too.

Before you think it’s not doable, let me tell you – I’ve personally earned over 110 free gift cards over the years. It feels so nice to use a free gift card to get something I want. So, it’s definitely possible with some effort!

Best Ways To Get Free Target Gift Cards

Below, you will see the different ways you can earn free Target gift cards.

Here are my quick picks to get started with:

Here’s what you’ll see on Swagbucks when redeeming your points for free Target gift cards.

1. Swagbucks

Swagbucks is one of the top sites to start with if you want to earn free gift cards to your favorite places, such as Target.

Swagbucks is a website where you can earn points (they call them “SB”) by doing tasks like browsing the internet, watching videos, using their shopping deals, and answering surveys. Simply sign up, complete your account profile, and start earning points to get a free Target eGiftCard code.

I’ve been using Swagbucks for years, and in that time, I’ve personally earned over 110 free gift cards. It’s easy to earn points, and the website is very easy to use as well.

You can get anywhere from a free $5 Target gift card to $100 at a time on Swagbucks.

Please click here to sign up for and use Swagbucks (and receive a $10 bonus).

2. Fetch Rewards

Fetch Rewards is a cell phone app (that I personally use at least once a week!) where you earn points by scanning receipts from grocery stores. You can then use these points to redeem Target gift cards.

I personally use Fetch Rewards every time I go grocery shopping as it’s one of the easiest apps to use to earn points. I just shop like I normally do, and once I get home, I use the Fetch Rewards app on my phone and take a picture of my grocery receipt.

Fetch Rewards then scans the receipt and adds points to my account within just seconds. And, it doesn’t matter what I buy at the grocery store – I can earn points.

You can sign up for Fetch Rewards by clicking here.

4. Free Target gift card with purchase

Did you know you can earn free Target gift cards while shopping for your everyday items?

Target has deals where you can get more for your money. When you purchase certain products, Target gives you a free gift card as a bonus.

For example, sometimes they have a deal where if you buy two boxes of diapers, you can get a free $20 Target gift card. I have also seen a similar deal for if you buy face wash, household goods, pet food, and more.

These will typically be listed either online on Target’s website or in person right on the shelf. Then, after you check out, you’ll get the free gift card.

This is a very easy way to get free Target gift cards for stocking up on things that you most likely already buy and need anyway.

4. InboxDollars

InboxDollars is a rewards site that gives points for answering online surveys, watching quick clips, playing games, and more.

You can use your points to get free Target gift cards.

You can join InboxDollars and get a free $5 sign-up bonus.

5. American Consumer Opinion

American Consumer Opinion is a market research company that pays people to share their opinions by answering surveys.

It’s free to join, and surveys typically pay around $1 to $5 each. Once you reach a certain amount, you can then redeem your earnings for free Target gift cards (and many other rewards like PayPal cash).

Please click here to sign up for American Consumer Opinion.

6. Survey Junkie

Survey Junkie is a popular platform where you can earn free Target gift cards by sharing your opinions through surveys. When you complete surveys, you earn points that can be redeemed for gift cards, including Target gift cards.

By answering three surveys daily on Survey Junkie, you can earn about $40 per month in free Target gift cards.

Please click here to sign up for Survey Junkie.

7. Branded Surveys

Branded Surveys is a survey platform where you earn points by answering questions, and you can redeem these points for free Target gift cards.

The surveys typically take 5 to 15 minutes to complete and pay between $0.50 and $5.00 each.

You can sign up for Branded Surveys here.

8. PrizeRebel

PrizeRebel is a website where you earn rewards points by completing tasks such as surveys and watching videos. Once you collect enough points, you can exchange them for free Target gift cards.

I personally just redeemed around $150 in points last week, so I know that this is a legit way to get free Target gift cards!

You can join PrizeRebel here.

9. PayPal Honey

Another great way to get free Target gift cards is to download PayPal Honey. You can install the Honey browser extension, which automatically finds and applies coupon codes and promo codes when you shop online.

Here’s how it works:

  1. Shop online as you normally would.
  2. At checkout, Honey will find and apply the best coupon codes for you.

You can redeem your points from Honey for cash, Target gift cards, or PayPal shopping credits.

You can add Honey by clicking here.

10. Upside

If you ever buy gas for your car (which is pretty much everyone!), then Upside is the app for you. Upside is a cash back rewards app specifically for gas purchases.

When you use the app to find and purchase gas at participating gas stations, you can earn cash back that can be redeemed for gift cards, such as for free Target gift cards.

Not every gas station is included in the app, but you can earn rewards by selecting from the stations listed within the app. You do need to select the gas station before you pump the gas into your car – this is important to remember!

You can sign up for Upside here.

11. Ibotta

Ibotta is an app that gives you cash back for shopping, especially at grocery stores. After you shop, just upload your receipts to earn cash back that you can use for free Target gift cards. I use Ibotta often and think it’s really helpful!

Here’s a quick summary of how you use Ibotta:

  1. Download the Ibotta app.
  2. Check available offers before you shop (such as a specific brand of crackers or fruit).
  3. Scan your receipt once you’re done shopping to get points.

You can join Ibotta here.

12. Rakuten

Rakuten has an easy way to earn cash back on purchases from over 3,500 stores. When you buy something, a percentage of your purchase comes back to you as cash. Your earnings can be sent to you by check or PayPal.

While Rakuten doesn’t pay you in free Target gift cards directly, you can use the cash you earn from Rakuten for other purposes, like going shopping at Target.

You can join Rakuten by clicking here.

13. Find Target gift card giveaways

If you want to get free Target gift cards, entering sweepstakes and giveaways can be a fun way to try.

To earn free Target gift cards through giveaways:

  1. Follow brands on social media – Many companies host giveaways on platforms like Instagram. Follow your favorite brands and keep an eye out for their posts or stories announcing gift card giveaways.
  2. Search hashtags – Use hashtags like #freetarget, #giveaway, #giveawayalert, #contest, and #freebie on Twitter, Facebook, and Instagram to find Target gift card giveaways.
  3. Use sweepstakes websites – Subscribe to online sweepstakes websites that list current giveaways.

Entering these giveaways can be a simple way to possibly get free gift cards, even though winning isn’t guaranteed.

14. Prime Opinion

Prime Opinion is a survey website where you can earn money by sharing your opinions from home.

It’s simple: You share your thoughts and they pay you for it. Prime Opinion is a legitimate survey platform that has many surveys to complete (there are over 40 different surveys currently listed in my personal dashboard).

You can redeem your points for Target gift codes or cash payouts, starting at just $1.

Click here to join Prime Opinion and get up to a $5 free bonus.

Here’s a screenshot of Target’s weekly ad, and it shows how you can get a free Target gift card (this is an old ad, so this offer is not valid).

15. Check out Target’s weekly circular

If you want to get free Target gift cards, I highly recommend reading Target’s weekly circular! It’s your go-to for the latest deals and promotions – whether that be seasonal promotions, weekly promotions, holidays (such as Mother’s Day, President’s Day, Father’s Day, Labor Day, Thanksgiving, etc.), and more.

Target’s weekly circular is also great around Black Friday and Cyber Monday, as they will list many Target coupons and free gift card deals here.

This is a flyer that Target updates every week, filled with sales on items from clothes to electronics. But that’s not all! Target also announces when you can earn free gift cards after buying certain products.

To find the weekly circular, check online on Target’s website or look in your mailbox if you receive paper ads. Target makes it easy to spot offers for free gift cards – they’re usually highlighted to stand out.

16. Join Target Circle and look for free Target gift card offers

Joining Target Circle, Target’s free loyalty program, is an easy way to get free Target gift card offers.

Here’s how this works:

  • Sign up – Start by signing up for Target Circle either online or in a Target store. It’s free and you just need your phone number.
  • Earn cash back – As a Circle member, you earn 1% cash back on eligible purchases. If you have a RedCard, you get 5% back instead!
  • Exclusive deals – Watch out for exclusive member-only sales. Sometimes, these include offers for free gift cards with certain purchases.

This is easy to use too – when ringing out at Target, just enter your phone number in the keypad.

17. Get a free Target gift card through the Target electronics trade-in program

Do you have old gadgets collecting dust at home? Your unused electronics can be turned into a free Target gift card through Target’s trade-in program. You can swap phones, tablets, game consoles, and more for a Target eGiftCard.

Here’s how it works:

  1. Find your device – Visit Target’s trade-in website and select your device from the list of eligible options.
  2. Get a quote – Answer a few questions about your gadget’s condition to receive an instant estimate from Target.
  3. Ship for free – If you accept the offer, ship your device to Target using the provided prepaid shipping label. Target covers the shipping costs, so it’s free for you!
  4. Get your free Target gift card – Once Target receives and evaluates your device, they’ll send you a Target eGiftCard by email.

Frequently Asked Questions

Below are answers to common questions about how to get free Target gift cards.

How can I get a Target gift card for free?

You can earn a free Target gift card through different promotions, such as buying specific items at Target, joining the Target Circle loyalty program, or taking advantage of special deals that include a gift card as a bonus.

Are there any expiration dates on Target gift cards I get for free?

No, Target gift cards do not expire, even the ones you get for free. This means you can use them anytime – you don’t have to rush! But, I do always recommend keeping up-to-date on this as it can change at any time.

How do I check the balance of my Target gift card?

Checking your Target gift card balance is easy. Just go to Target’s website, find the gift card balance page, and enter the card number and access code. The balance will show up, and you’ll know exactly how much you can spend.

Can I win a Target gift card from legit contests online?

Yes, you can win Target gift cards from legitimate online contests. Just make sure you’re entering contests from reputable websites and companies to avoid scams.

Is it true that you can earn Target gift cards by taking surveys?

Yes, you can earn Target gift cards by taking surveys on websites like Swagbucks and Branded Surveys. These sites give gift cards, including ones for Target, as rewards for completing surveys. Keep in mind that you typically need to accumulate a certain amount of credits before you can cash out for a gift card.

How do I redeem a Target eGiftCard code in person?

To use a Target eGiftCard in stores, just show the barcode on your phone. I have done this in the past and it is very easy.

How To Get Free Target Gift Cards

I hope you enjoyed this article on how to get free Target gift cards.

There are many, many ways to earn free gift cards to Target as you learned above. From answering online surveys, taking pictures of your grocery shopping receipts, and using cash back sites, there are probably many ways that you can save some money at Target or SuperTarget by using Target gift cards.

I’ve earned many free gift cards over the years, and I absolutely love it. Just last week, I redeemed over $150 in gift cards to some of my favorite retailers.

Do you like to earn free Target gift cards?

Recommended reading:

Source: makingsenseofcents.com

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Using a credit card to make purchases is straightforward, but understanding the ins and outs of how exactly they work can be more complicated.

On the back end, credit card issuers can take certain liberties that impact your cards’ features. If you dig into the fine print, you’ll find that card issuers generally mention they can make certain account decisions at their discretion. There are also unwritten liberties issuers can take, potentially in your favor. For instance, an issuer may be cooperative when you request lower interest rates, a higher credit limit or a switch to a different card entirely.

The more you understand your credit cards, the better you can navigate them.

Here are a few facts about credit cards that are good to know.

1. Some credit card terms can change with little if any warning

You may become accustomed to certain perks, rewards, fees or even interest rates over time, but those features can change — some more quickly than others. You’ll often find language supporting this in a card’s terms and conditions.

For significant changes — like increases to interest rates, fees and the minimum amount due — the card issuer generally must give notice 45 days in advance, according to the Consumer Financial Protection Bureau’s website. But benefits or rewards aren’t considered “significant,” so changes to those can come at any time. (Many issuers will still send an email or written notification as a courtesy to cardholders.)

Variable interest rates change at a quicker pace than other features, as has been the case since the Federal Reserve began hiking interest rates to battle inflation.

“Folks didn’t realize that the rise in the federal interest rate applies to their credit card also,” says Martin Lynch, director of education at Cambridge Credit Counseling, a nonprofit credit counseling agency. “Variable rate cards incorporate those hikes usually within a month or two, so you did see some people experiencing some sticker shock when the minimum payments went up.”

2. Issuers can close an account or cut your credit limit at any time

Even if you’re managing a credit card responsibly, an issuer can still legally close your account if it wants to, according to the CFPB website.

The issuer must provide an “adverse action notice” when it makes these kinds of unfavorable decisions, the website notes. But they can still catch you off guard.

3. Your creditor may be willing to bend on interest rates

For longtime customers with solid track records, an issuer might be willing to negotiate a lower interest rate. Alternately, a hardship plan (if available) can temporarily lower interest rates if the hardship is because of qualifying circumstances beyond your control.

If you’re having trouble juggling debt, credit card issuers may also be willing to work with you through a nonprofit credit counseling agency’s debt management plan, which can consolidate those debts into one fixed monthly payment if you qualify.

“Our average interest rate right now is about 8%, among all creditors,” Lynch says. “Some are higher, some are lower.”

For comparison, the average rate for credit cards that assessed interest in the last quarter of 2023 was 22.75%, according to Fed data.

4. You might not qualify for a sign-up bonus

Many credit cards offer an upfront pile of cash back, points or miles as an incentive for new cardholders who can meet a specific spending requirement. But if you’ve recently applied for a credit card with the same issuer — even if it’s been more than a year — you might not qualify for the advertised bonus.

As you’re applying for a credit card, it’s important to read the terms carefully to understand whether you’re eligible for such a welcome offer.

5. You can lose a 0% APR

If you have good or excellent credit (credit scores of 690 or higher), you might qualify for a credit card with a 0% introductory APR on purchases, balance transfers or both. But that promotional window may not be guaranteed.

If you pay late, for instance, the issuer could cancel the 0% APR offer and start charging the card’s ongoing variable interest rate instead. Depending on the card, a much higher penalty APR can also apply after missing a payment.

To avoid missing payments, set a reminder or establish an automatic payment schedule.

6. You might be able to upgrade or downgrade your credit card

If a credit card is no longer as valuable to you as it once was, contact the issuer to see whether it’s possible to upgrade or downgrade your credit card to a different option. This is also known as a “product change,” and it may allow you to retain your account number and account history while switching to a card that better suits your needs now.

You might consider downgrading to a different option to avoid an annual fee, for example. An upgrade might get you higher rewards or better perks.

7. The value of your rewards may vary

It’s not really an issue for cash-back credit cards, but if you have a co-branded store card or travel card, be aware that the points or miles that you’re earning may be less valuable for some redemptions than for others.

For example, your miles may be worth a penny or more each when redeemed for travel, but a good bit less than that when you redeem for options like cash back, statement credit or gift cards.

Knowing the true value of your rewards can help you maximize them. You can often get an idea of that value either by logging into your card account and exploring redemption options or by revisiting the card’s terms and conditions.

Source: nerdwallet.com

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When getting your first credit card, consider factors such as the card’s annual fees, interest rates, rewards or benefits, and credit limit. Choose a card that aligns with your financial goals and spending habits, and make sure to understand the terms and conditions, including the consequences of late payments or carrying a balance. Additionally, aim to use the card responsibly to build positive credit history while avoiding overspending and accumulating debt.

With so many credit cards on the market, getting your first card can be overwhelming. What type of card do you need? How often should you use the card? Is it possible to have a credit card without racking up large amounts of debt you can’t repay?

Keep reading for answers to these frequently asked questions about getting and using a credit card for the first time.

What Is a Credit Card?

A credit card is a type of revolving account that allows you to spend up to a preset limit. Every month, the issuer calculates your minimum payment due based on your recent activity.

One of the main differences between a credit card and a loan is that loans have a fixed number of payments. With a credit card, you can keep making purchases until you reach your preset spending limit, and each time you make a payment, it frees up some of your available credit. This allows you to keep using the line of credit over to purchase goods and services over and over.

Types of Credit Cards

Before you apply for your first credit card, make sure you understand the differences between secured and unsecured credit. If you want to open a secured credit card, you’ll have to make a deposit. The issuer uses that deposit to set your credit limit. For example, if you deposit $500, you should start out with a limit of $500.

One of the biggest advantages of opening a secured credit card is that you can’t overspend. If you don’t pay back the money you borrowed, the issuer can close your account and keep the deposit.

An unsecured credit card doesn’t require a deposit, so the issuer sets your spending limit based on your income and credit history. If you don’t repay what you borrowed, the company can send your account to collections or do a charge-off, both of which would have a negative impact on your credit health.

Pros and Cons of Getting a Credit Card

Like any financial product, credit cards have several pros and cons. Review them carefully before you decide to apply for your first credit card.

Advantages of Credit Cards

The main advantage of having a credit card is that it gives you extra purchasing power. For example, if you don’t have quite enough money saved for your auto insurance premium, you can use a credit card to make your payment.

Having a credit card also helps build a strong credit profile, provided you use the card wisely. Your credit score is based on several factors, such as your payment history and the number of credit accounts you have open. When you open a credit card, you have an opportunity to demonstrate responsible financial behavior, which could improve your credit.

Credit cards also have these benefits:

  • Fraud protection. Credit cards have several features designed to guard against fraud. Additionally, it’s easier to deal with fraudulent transactions on a credit card than on a debit card. If you use a debit card, the fraudulent transaction ties up some of your money until you can convince the bank to issue a provisional credit. When you use credit cards, you’re using the bank’s money, so none of your money is ever at risk.
  • Rewards. Many companies offer credit cards that give you points, miles, cash back, and other perks. Rewards credit cards let you earn valuable benefits based on your everyday spending habits. For example, if you enjoy dining out, you may want to look for a credit card that offers extra cash back on restaurant purchases.
  • Wide acceptance. Thousands of merchants accept credit cards, so you don’t have to worry about carrying cash or coming up with another form of payment. Carrying a credit card may even help you avoid having a hold put on your funds when you rent a car or book a hotel room.

Disadvantages of Credit Cards

One of the biggest disadvantages of using a credit card is that it’s easy to overspend, especially if you have a high limit. To reap the benefits of using a credit card without the stress of worrying about your minimum payment, charge only what you can afford to pay in full each month.

Many credit cards also have high interest rates. If you don’t pay your balance in full every month, you’ll have to pay interest on all purchases, cash advances, and balance transfers. Interest charges add up quickly, making it difficult to pay off your balance.

Although credit cards can be very beneficial, you need to use them responsibly. Late payments, missed payments, and other credit mishaps can hurt your credit for many years to come.

How to Choose Your First Credit Card

Before you apply for your first credit card, take time to check your credit score and report. If you know your credit, it will be easier to find a credit card company willing to issue a card to someone with your credit profile. If you have poor credit, you may need to open a secured card or accept a credit card with a low limit before you can qualify for better cards.

When you’re ready to apply, look for a card that fits your needs. If your goal is to build credit, search for a card with automatic credit line reviews or other features designed to help users improve their financial situations. If you travel frequently, consider getting a rewards credit card to help you earn cash back or bonus points.

Now you’re ready to apply for a card. When you fill out the application, you’ll need to provide your name, contact details, and information about your financial situation. If you aren’t approved, you’ll receive a letter explaining the reason for denial.

Tips for Using Your Credit Card Wisely

To avoid the drawbacks associated with credit cards, follow these tips:

  • Make on-time payments. Payment history has a big impact on your credit health. To build a strong credit profile, pay your bill on time each month.
  • Pay more than the minimum. If you only pay the minimum amount due, it may take several years to pay your balance in full. Avoid high interest charges by paying more than the minimum due each month.
  • Don’t go over your limit. Going over your limit increases your credit utilization ratio, which is a red flag to lenders. Many companies also charge over-limit fees that make exceeding your limit expensive, so try to avoid doing this.
  • Limit your applications: Every time you apply for a credit card, the issuer checks your credit report, resulting in a hard inquiry. Lenders see many hard inquiries in a short amount of time as a sign that you may be in financial trouble, so it’s best to limit the number of inquiries on your record.

You can visit Credit.com today to get started on your credit card journey by comparing different cards, checking your credit score and credit report card, and learning more about how to manage your finances responsibly.

Source: credit.com

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A charge card is like a credit card, but instead of allowing you to carry a balance from month to month, you’re required to pay off the full balance every month. It’s a way to make purchases without using cash upfront, but you have to be careful to only spend what you can afford to pay off each month.

Many people incorrectly use the terms “charge card” and “credit card” as if they mean the same thing. While these types of cards have some similarities, they’re not the same. Charge cards are similar to credit cards because you can use them to make everyday purchases. However, rather than only paying the minimum balance each month, cardholders are expected to pay the entire balance in full.

Before you consider applying for a charge card, it’s important to understand how it works and the advantages of having this type of card. Keep reading to learn more.

What Is a Charge Card and How Does It Work?

A charge card is a type of card you can use to make both online and in-store purchases. Unlike credit cards, charge cards require cardholders to pay the entire balance at the end of their billing period.

Many charge cards come with various perks and rewards, such as reward miles or cash back. In most cases, you must have good or even excellent credit to qualify for a charge card.

Charge Cards vs. Credit Cards

While many people think credit cards and charge cards are the same thing, there are some stark differences between them.

Minimum Payment

Credit card companies require cardholders to pay at least the minimum balance each billing cycle. This could be a preset fixed amount or based on a percentage of the overall amount due. This feature allows cardholders to make purchases now and pay for them over several months. Failure to make minimum payments each month could result in late payment fees and other penalties.

Alternatively, charge cards have no minimum balance requirements. Instead, cardholders must pay their entire balance at the end of the billing cycle. Failure to make these payments could result in extra fees, or the credit card company could suspend or close the account.

Some charge cards offer alternative payment options for cardholders. For example, American Express gives cardholders the option to use its Pay Over Time feature, which allows them to pay the balance of certain purchases over a set period of time.

Spending Limits

When you apply for a credit card, you get a set spending limit you can’t exceed without facing possible penalties. Charge cards, on the other hand, have no set spending limit. Instead, approval for purchases is based on your specific income, payment history, and credit report.

APR Rates

APR rates are based on your credit history and credit score. When you have a credit card, your specific APR rate is disclosed upon approval and displayed on your monthly statements. Interest, based on your APR, is charged on any outstanding balance at the end of the cycle.

Interest rates don’t apply to charge cards. Since you’re required to pay the balance in full each month, you’ll never have an outstanding balance to generate interest. However, if you fail to pay your balance, you could face late payment fees and other penalties.

Pros and Cons of Charge Cards

Before you apply for a charge card, it’s important to understand the advantages and disadvantages that come with this type of card.

Pros

There are several benefits of getting a charge card, such as:

  • Having no spending limit can allow you to make larger purchases without worrying about going over your limit.
  • Since you must pay your balance off each month, you won’t face high APRs.
  • Many charge cards come with substantial rewards, benefits, and perks.

Cons

While the benefits are great, you also need to consider the disadvantages of getting a charge card, including:

  • Charge cards often come with hefty annual fees. Be sure to read the fine print before applying for a charge card.
  • Typically, you must have good or excellent credit to qualify for a charge card.
  • You must be able to pay the entire charge card bill each month or face late fees and other penalties.

How Do Charge Cards Impact Your Credit Score?

Another thing you need to consider when getting a charge card is how it will impact your credit score. Lenders offering charge cards typically report all payments to the three major credit bureaus: TransUnion, Experian, and Equifax. Since your payment history accounts for up to 35% of your overall FICO credit score, making on-time payments each month can significantly impact your credit.

When it comes to your credit utilization, which accounts for up to 30% of your overall FICO credit score, having a charge card won’t make a difference. Since there’s no spending limit, most credit scoring models don’t consider charge cards when calculating credit utilization.

On the one hand, a charge card doesn’t give you available credit to use toward boosting your credit utilization ratio. On the other hand, you can make large purchases on your charge card without worrying about it having a negative impact on this ratio.

When to Get a Charge Card

You might have a limited choice of charge cards. However, options are available, such as the Platinum Card® from American Express and the American Express® Gold Card. Be sure to compare your choices and always read the fine print before applying for any type of credit.

You may need to have good or even excellent credit. If your credit score isn’t strong enough right now, you can take steps to improve your credit. Once your credit score reaches the “good” range, you can try applying for a charge card.

Find out your credit score with Credit.com’s Free Credit Score feature. If you want to take look at 28 of your scores and have more tools to manage your credit, the ExtraCredit® subscription is a great option for you.

Source: credit.com