Flying to Paris is almost always expensive, but these deals slash those pricey fares in half: Flights to Paris are selling for as low as $484.
One of the world’s most romanticized cities has so much to see, from the Eiffel Tower to the Louvre, and multiple airlines are offering discounted fares from a range of major U.S. cities.
Related: The best hotels in Paris
The travel dates for these deals are from October 2023 through April 2024, which is past the city’s peak tourist season. However, these flights will likely fill up given the low price, so make sure you snag these deals quickly.
SYLVAIN SONNET/THE IMAGE BANK/GETTY IMAGES
Deal basics
Airlines: Aer Lingus, Air Canada, Air France, American Airlines, Austrian Airlines, Delta Air Lines, French Bee, Iberia, Icelandair, TAP Air Portugal and United Airlines. Routes: From Boston, Chicago, Miami, Newark, New York and San Francisco to Paris. How to book: Find your ideal dates through Google Flights, and then book directly with the airline of your choice. Travel dates: October 2023 through April 2024. Certain holidays like Thanksgiving, Christmas and New Year’s Eve are excluded from all routes. Book by: Within the next two days.
Thanks to Going for flagging these deals. At $49 a year, the site’s Premium membership offers discounts of up to 90% and includes a 14-day free trial. The Elite membership also scouts premium economy, business-class and first-class deals.
Sample flights
While these deals are mostly from major U.S. airline hubs, the prices are hard to beat since flights to France typically cost closer to $1,000.
Here are the flights you can take with these deals:
Aer Lingus: Boston Logan International Airport (BOS) to Paris-Charles de Gaulle Airport (CDG), starting at $484 (includes a layover in Dublin).
TAP: San Francisco International Airport (SFO ) to Paris-Orly Airport (ORY), starting at $502 (includes a layover in Lisbon, Portugal).
Air France and United: O’Hare International Airport (ORD) to CDG, starting at $545.
United: Newark Liberty International Airport (EWR) to CDG, starting at $565.
Air France, American and Delta: John F. Kennedy International Airport (JFK) to CDG, starting at $565.
Air Canada: LaGuardia Airport (LGA) to CDG, starting at $565.
American: Miami International Airport (MIA) to CDG, starting at $574.
We recommend using Google Flights to find your travel dates and then booking your flights directly on the airline’s website. Airlines are more reliable in the event your flight faces a cancellation, delay or booking change.
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If you’re flying from Chicago, Air France and United offer cheap round-trip fares for the week of Feb. 7, 2024.
GOOGLE FLIGHTS
If you opt for United, the airline offers a returning flight from Paris at 11:55 a.m.
GOOGLE FLIGHTS
Even though $545 is cheap for a round-trip flight to Paris, you’ll be flying in basic economy, which has no perks. United’s basic economy for international routes lets passengers bring one carry-on but charges for seat selection and does not allow for ticket changes or refunds.
GOOGLE FLIGHTS
Selecting an economy seat will cost anywhere from $27 to $37, whereas if you want to fly in a preferred seat to earn Premier qualifying points as part of United’s MileagePlus program, you’ll pay anywhere from $57 to $79.
UNITED AIRLINES
Maximize your purchase
Use a card that earns bonus points on airfare purchases, like:
For tips on making the most of your airfare purchases, read our guide to the best credit cards for booking flights.
The information for the Citi Prestige Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Bottom line
A good deal for a flight to Paris has been hard to come by lately. If Paris is on your bucket list, definitely book one of these flights. While these bargain fares only apply to basic economy, you’ll be saving a lot in airfare to see the City of Light.
It seems contradictory, but I love being frugal and I also love spending money. Over the last few years, however, my love of frugality has outweighed my love of spending — and it’s been good for my savings.
Yes, it’s OK to spend money sometimes. If you have it, and you’re comfortable with your present and future finances, by all means, spend away. But a lot of us, including myself, spend when we shouldn’t spend. It’s to be expected, I think, in our consumer culture. I can’t walk down my block without being sold something every minute or so, from billboards to petitioners to window sales.
Anyway, a couple of readers requested an article on how to avoid spending sprees. It’s something I’ve been thinking about lately anyway, so this was a great reason to give the subject more thought and put something together.
Identify the Root of Your Spending
We’ll start with the heavy stuff first because I think it helps put the practical tips into perspective. I recently read Lost and Found by Geenen Roth. Roth and her husband lost their savings in the Bernie Madoff scandal, but her book is mostly about her emotional issues with money. In one chapter, Roth describes an obsession with a pair of chic but expensive eyeglasses she desperately wanted to buy. The obsession is symbolic of her relationship with consumption. In an interview with Time, she explains:
“In the same way that we use food for emotional reasons, we use buying things to fill something that we can’t quite name.”
Roth adds that this can lead to “binge-shopping.” This hit home for me, because I used to spend emotionally, especially when I was younger. Learning to let go of my emotional attachments with spending helped me to avoid these binges.
For Roth, Stuff represented love. For me, Stuff represented acceptance. I recall one binge spree in college particularly well because I was making $10 an hour, and I skipped class to buy a bunch of clothes. This is so insensible, I remember thinking, and it was the first time I realized shopping was emotionally symbolic for me. I felt like, if I got a whole new wardrobe, I might be a different and better person. I’d be more self-assured, less neurotic. (It didn’t work.)
A friend recently told me about her own emotional spending. Like Roth, she equated it to love. “So I learned to love myself differently,” she said. Similarly, during one Christmas shopping spree that set me back quite a bit, I realized I also enjoy buying things for other people to let them know I care. I’ve learned to let them know in other ways.
Again, it’s OK to spend. I had a spendy weekend recently, and while it was a little out of control, I don’t think I was trying to fill a void. I was just having fun. It set my savings back a bit, but it wasn’t totally insensible — I didn’t skip any life duties to go shopping; I didn’t charge anything. And Holly recently discussed spending a lot during her vacation. I didn’t feel like she was trying to fill a void either — she was just enjoying her trip.
I think those instances are different from binge-shopping. To continue Holly’s booze metaphor, those instances are like having one too many beers when you’re out with an old friend. Binge-shopping is like drinking for the sole purpose of getting shit-faced to forget your problems.
Of course, for some people, it’s not that complicated — they just like to buy things. But if shopping has become an uncontrollable issue, it might be because it’s filling some emotional void. Identifying the root of your spending can help curb it.
‘Power Shop’
It seems unlikely now, but my dad used to have a spending problem. He got over it, so I thought I’d ask him how. “I power-shopped,” he said, meaning he’d walk around Best Buy, fill his basket up with Stuff and then put it all back. It seems kind of crazy, but it helped him let go of his desire to consume everything.
Reader Erica does the same thing. In her comment, she wrote:
“I find if I walk around with something in my hand in the store, after a while, I’m over it and I can put it back.”
I guess the idea is that, after “owning” something, you realize the product isn’t going to significantly change your life. It loses any appeal and meaning you might have attached to it. You realize it’s just a thing.
Erica did say this doesn’t always work, though, and my dad warned that it takes a lot of discipline. I imagine it can backfire if you’re good at arguing with yourself.
Focus on Your Goals
This is another thing that worked for my dad, and it also worked for me. Instead of focusing on the things I didn’t have, I focused on my financial goals. I checked my budget daily, read personal finance and frugal living blogs, monitored my goals and watched my net worth rise. The more focused I’ve become with my financial independence, the less obsessed I am with shopping. Yes, I still want things. But I don’t give in as much because giving in gets in the way of my goals.
Wait
Because emotional shopping is usually impulsive, waiting helps you decide whether you really want something or you’re just spending to spend. “I’ve gotten to a point of waiting a week or a month or a year,” my dad told me. “And if I still want or think I need it, then so be it, I will get it. But, usually, it turns out that the impulsive thought has passed.”
Avoid Shopping With Spend-Happy Friends
I have a friend whom I used to love shopping with. Why? Because he always bought something. This made me feel better about my own spending. If I’m wavering, and I see my friend buying something, I don’t know why, but I’m more apt to give in.
Avoid Stores
Especially when I feel vulnerable, I just avoid certain stores. Lots of stores trigger my emotional spending and make me feel like I need to own half of their inventory. It makes sense; companies spend a lot of money and put a lot of effort into appealing to our vulnerabilities.
Take a Field rip Without Your Wallet
This seems contradictory to the previous tip, but it helped me learn to appreciate things without the need to own them. Visit your favorite store without any money. For me, this squelched instant gratification. Without money or credit cards, you have no way to consume, and you’re forced to just accept products for what they are. This helped me appreciate the aesthetic or usefulness of something without forcing myself into the equation. So instead of representing anything significant, the thing is only a thing. It might be beautiful, it might be cool, but that’s all it is.
Another interesting thing about visiting your favorite store without money is that you also become aware of all of the subtle tricks that convince shoppers to spend — the clever advertising, the strategic store layout, the proportionate mannequins — and hopefully, you’ll remember these subtle tricks during a future temptation.
Make a List of Things You Already Have
It sounds a little obsessive, but to curb my temptation, I used to keep a list on my phone of all of the Stuff I’ve spent money on in the past year. While shopping, I’d get that little voice in my head telling me: Hey!You reeeally don’t need this.
It’s easy to ignore that voice. Something tangible, like a list, is harder to ignore.
Also, if there’s something I want, a list helps me compare it to what I already have. I ask myself, “What is it about this new thing that I like?” Usually, I already own something that possesses those qualities.
Just Stop
It’s easier said than done, I know. But when I’m particularly fed up with my desire for Stuff, I just stop. I think about things in perspective. Overspending — what a problem to have! I think about my mom’s awful stories of growing up in poverty. I think about how spoiled overspending must sound to someone who’s really struggling. And I just don’t do it. Guilt probably isn’t the best tool; but instead of the guilt, if you focus on the abundance you already have, whether it’s family, friends, independence, whatever, it can help stop the urge to spend.
I’ve gotten better, but I still have setbacks. When I’m overwhelmed with work and nothing seems to be going my way, I’m especially susceptible to “retail therapy.” And, again, it’s not bad to want things. But when it gets in the way of your well-being, financial independence or life goals, it’s a nasty problem.
You may have a few different options if you are looking to open a credit card account with an additional person. Being a joint account holder and an authorized user are two different ways that two people can share the same account. However, there are a few important differences that you’ll want to be aware of.
When you add an authorized user to your account, the authorized user can benefit from the good credit and payment history on your account. This can be one strategy to help a trusted friend or family member improve their credit. With a joint credit card account, however, both people apply at the same time and both account holders are legally responsible for all purchases and debt on the account, regardless of which person actually makes the purchase.
Read on to learn more about this topic, including:
• What is a credit card authorized user?
• What is a joint account holder for a credit card?
• What are things to consider before adding an authorized user?
• What are things to consider before opening a joint credit card account?
• How to know whether a joint credit card vs. an authorized user is right for you?
Unlimited 2% cash back rewards*
Earn 3% cash back on up to $12,000 in purchases your first year when you set up direct deposit through SoFi.** After that, earn 2% unlimited cash back on everything.*
What Is a Credit Card Authorized User?
An authorized user on a credit card, sometimes called a supplementary credit card, is an additional user who is added to the account of the primary cardholder. The authorized user gets their own physical card and can make purchases. The authorized user may benefit from the good credit or a positive payment history on the account; it could help them establish or maintain their credit. However, they are not responsible for any of the purchases or debt.
How an Authorized User Impacts Your Credit
There are many factors that affect credit scores, but adding an authorized user to your account is not one of them. If you add an authorized user to your account, your credit will not be checked, and there should be no immediate impact on your credit. You will want to keep in mind, however, that you are responsible for any purchases made by authorized users. So if your authorized user spends more than you anticipate and you have trouble making the full monthly payment, it could impact your credit score.
Things to Consider When Adding an Authorized User to Your Account
Here’s a quick look at some things to consider when adding an authorized user to your account:
Risks
Rewards
You are legally responsible for all purchases made by an authorized user
May help establish or maintain the authorized user’s credit if used responsibly
May impact your credit if not used responsibly
Additional spending can generate additional credit card rewards
Primary cardholder can remove the authorized user from the account at any time
Recommended: How Many Credit Cards Should I Have?
What Is a Joint Credit Card Account Holder?
Unlike adding an authorized user to your account, you will typically obtain a joint credit card by applying for one with another person. With a joint credit card, the credit of both prospective cardholders is evaluated and used to determine eligibility. If approved, both cardholders are equally and separately liable for all of the debts and purchases on the account, regardless of who actually made the purchase.
How a Joint Account Impacts Your Credit
When you apply for a joint account, the credit of both people is reviewed, and then the applicants are possibly approved to receive a card. This will generally show up on each potential account holder’s credit report as a new inquiry, which may temporarily lower each person’s credit score by a few points. Additionally, both joint cardholders are responsible for all of the debt, regardless of who actually uses the credit card. So if one person spends more than expected or has trouble paying the bill on time, it may negatively impact both cardholders’ credit scores.
Things to Consider Before Opening a Joint Credit Card Account
Here’s a quick look at some things to keep in mind before opening a joint credit card account:
Risks
Rewards
Many major issuers do not allow joint accounts
Additional spending by two people can generate higher credit card rewards
Cannot remove one person from the joint account without closing the entire account
When used responsibly, it can help establish or maintain the credit of both cardholders
May get complicated if the relationship between the joint cardholders changes (e.g. divorce)
Joint Credit Card Account Holder vs Authorized User
Consider the differences between these two arrangements:
• A joint credit card account is one where two people jointly open and use the account, with both people equally responsible for all of the debt.
• An authorized user vs. a joint credit card has a key difference: The authorized user is not liable for any purchases they might make — instead the primary cardholder is responsible for all charges.
• Being an authorized user may be one way to help establish your credit if the primary cardholder already has good credit and continues to use the account responsibly.
Recommended: What Is the Minimum Age to Be an Authorized User on a Credit Card?
Choosing the Right Option
A joint credit card account typically only makes sense for two people that are in a committed relationship in which they are already sharing their finances. And you will also want to keep in mind that many major credit card issuers do not offer joint credit card accounts.
An authorized user, on the other hand, can make sense if you want to help bolster the credit of someone who is starting out. By adding them to your account, you may help them establish their credit.
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The Takeaway
An authorized user and a joint credit card account are different ways that two people can share a credit card account. With a joint credit card account, both people open the account together and are equally and separately liable for all charges on the account. With an authorized user on an account, only the primary cardholder is responsible for the charges. Those differences may help you decide which (if either) arrangement is right for you.
There are other considerations when applying for a credit card, such as whether you get rewards with each purchase. If you’re in the market for a new credit card, you might look at a rewards credit card like the SoFi Credit Card. You can earn cash back rewards on every eligible purchase, which you can then use for travel or to invest, save, or pay down eligible SoFi debt. You can even add authorized users to your SoFi credit card to earn additional rewards.
Swipe and tap the smarter way with SoFi.
FAQ
Is a joint credit card holder the same as an authorized user?
No, having a joint credit card account is not the same as having an authorized user on your account. With a joint credit card, both account holders are equally and separately liable for all charges on the account, regardless of who actually makes the purchase. With an authorized user account, only the primary cardholder is responsible.
Is it better to be an authorized user or have your own credit card?
When you are an authorized user on a credit card, you can make purchases and may be able to establish your credit, but you’re not responsible for any of the charges. Being an authorized user can make sense especially if you are just starting out. However, it may make sense at some point to work towards having your own credit card account where you don’t have to rely on anyone else.
Can you have 2 names on a credit card?
Generally there won’t be two names on a credit card, even if it is a joint account. In both the case of a joint account and being an authorized user, each person will get their own credit card with their name on it. Depending on the card issuer, the credit card account number may be the same or may be different.
Photo credit: iStock/Igor Alecsander The SoFi Credit Card is issued by The Bank of Missouri (TBOM) (“Issuer”) pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated. SoFi cardholders earn 2% unlimited cash back rewards when redeemed to save, invest, or pay down eligible SoFi debt. Cardholders earn 1% cash back rewards when redeemed for a statement credit.1 1See Rewards Details at SoFi.com/card/rewards. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website . SOCC1222080
Editor’s note: This is a recurring post, regularly updated with new information.
American Express, Capital One, Chase and Citi are four of the major players in the travel credit card space. As such, these issuers offer their own travel portals, where users can earn and redeem their points and miles for flights, hotels, car rentals and more.
These issuers also incentivize their cardholders to use the bank’s own portal, done by offering bonus points on bookings.
For instance, with the Capital One Venture X Rewards Credit Card, you’ll earn 10 miles per dollar on hotel and car rentals and 5 miles per dollar on flights — but only when booked through the Capital One Travel portal. Purchases made outside the portal earn 2 miles per dollar.
Likewise, with the Chase Sapphire Preferred Card, you’ll earn 5 points per dollar on all travel booked through the Ultimate Rewards portal. Otherwise, you earn 2 points per dollar on those travel purchases.
Given the lucrative earning potential that booking through these portals presents, it begs the question: Is it worth your time to use them rather than booking directly?
In this guide, we put these four travel portals to the test when booking flights. We compared price, ease of use, redemption value and other metrics.
Methodology
For this analysis, we limited our research to flights and didn’t include hotels, rental cars or other travel. That’s because we generally recommend that you avoid booking hotels through a third party since you likely won’t receive elite-status benefits (if you have any) or earn elite-qualifying stay credits.
If you’re not concerned with earning hotel elite status or are booking an independent hotel, then booking your stay through a travel portal could be advantageous for you.
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It’s also worth noting that you can get elite-like perks at hotels, even without elite status, by booking with these programs: Amex’s Fine Hotels + Resorts, Amex’s The Hotel Collection, Capital One’s Premier Collection, Chase’s Luxury Hotel & Resort Collection, Citi’s Hotel Collection and Citi’s Luxury Hotel Collection.
With flights, you may be able to “double-dip” your earnings: You can usually earn bonus points on bookings through your card issuer’s portal and earn airline and elite-qualifying miles just as you would by booking directly through the airline. That said, here are the features we examined in each portal:
Results: Do you get comprehensive results when searching through the portal?
Price: How do the prices compare to booking directly with an airline versus through a portal?
Ease of use: Is navigating the portal easy for a user? What unique features or benefits do users get from using this portal?
Redemption value: Is it worth redeeming your points and miles for travel through a portal?
With these four factors in mind, here’s how the individual issuers’ travel portals stack up.
American Express Travel portal
AMERICANEXPRESS.COM
Any American Express card that earns Membership Rewards points grants access to the Amex Travel portal. Depending on your specific card, you may earn bonus points for booking through the portal.
The Platinum Card® from American Express, for instance, earns 5 points per dollar on flights booked directly with airlines or through Amex Travel (on up to $500,000 of these purchases annually, then 1 point per dollar) and 5 points per dollar on prepaid hotel bookings made through Amex Travel. The American Express® Gold Card, meanwhile, earns 3 points per dollar on flights booked directly with airlines or through Amex Travel.
You can search for flights, hotels, flight and hotel packages, rental cars and cruises on the Amex portal.
Related: Everything you need to know about Amex Travel
Capital One travel portal
CAPITALONE.COM
The Capital One travel portal offers a fresh interface powered by the travel tech app Hopper and is accessible with most credit cards earning Capital One miles or cash back.
Bonus earnings are available, depending on which card you have. Using the Capital One Venture X Rewards Credit Card to book flights in the portal provides 5 miles per dollar; flights booked elsewhere earn 2 miles per dollar.
Currently, you can only book flights, hotels and rental cars through the portal. The portal also houses the Premier Collection for luxury hotels. However, this is only accessible if you have the Venture X or its counterpart, the Capital One Venture X Business card.
The information for the Venture X Business card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Related: How to use the Capital One travel portal — now with more cards and new rewards
Chase Ultimate Rewards travel portal
CHASE.COM
Chase’s Ultimate Rewards travel portal was powered by Expedia for many years, but the issuer migrated to cxLoyalty in 2021.
You can access the portal with your Ultimate Rewards-earning credit card, including popular options like the Chase Sapphire Reserve, the Chase Sapphire Preferred or the Chase Freedom Unlimited. Cardholders can book flights, hotels, cars, activities and cruises on the Chase travel portal.
Related: Why are some flights more expensive through the Chase travel portal?
Citi travel portal
CITI.COM
The overhauled Citi travel portal launched in March 2023 after months of delays. It’s powered by Rocket Travel by Agoda, part of the Booking.com family.
You can access the portal with any credit card earning ThankYou points, and several cards earn bonus points on bookings in the portal. Unfortunately, flights aren’t included in these bonus offerings.
With Citi’s new portal, you can book flights, hotels, rental cars and attractions of numerous types. The portal also offers two hotel programs: Hotel Collection and Luxury Collection.
Related: Ultimate guide to the Citi travel portal
Booking flights
I looked at a variety of round-trip routes with the same dates (roughly six months from now) and gathered the following prices:
Itinerary
Booked directly
Amex Travel
Capital One Travel
Chase travel
Citi Travel
New York (JFK) to Los Angeles (LAX) in economy with Delta Air Lines.
$533.
$541.
$540.
$523.
$540.
Tampa (TPA) to Bozeman (BZN) in economy with American Airlines.
$786.
$786.
$786.
$786.
$786.
Baltimore (BWI) to Las Vegas (LAS) in economy with Delta Air Lines.
$720.
$720.
$720.
$720.
$720.
Miami (MIA) to Boston (BOS) in economy with JetBlue.
$418.
$418.
$338.
$418.
$412.
Chicago (ORD) to Milan (MXP) in economy with United Airlines.
$902.
$902.
$902.
$772.
$732.
Nashville (BNA) to Bogotá, Colombia (BOG) in economy with American Airlines.
$535.
$535.
$535.
$535.
$415.
Toronto (YYZ) to Seoul (ICN) in economy with Air Canada.
$1,079.
$1,952.
$1,880.
$ 2,581.
$1,952.
New York (JFK) to Los Angeles (LAX) in Delta One.
$2,798.
$2,600.
$2,798.
$2,798.
Not available.
Newark (EWR) to London (LHR) in business with British Airways.
$3,272.
$3,272.
$3,300.
$3,300.
$3,300.
San Francisco (SFO) to Singapore (SIN) in business with Singapore Airlines.
$8,351.
$7,285.
$8,521.
$9,386.
$8,521.
Price
All of the travel portals generally fared well when it came to searching economy flights versus booking directly. However, there were a few major caveats worth noting.
Southwest Airlines is not bookable on any of the portals, and tickets for low-cost airlines like Spirit Airlines and Frontier are typically more expensive on the Chase and Capital One travel portals than booking directly. Amex Travel didn’t display any Spirit Airways or Frontier Airlines flights.
When it came to international flights, all of the bank portals struggled at times to match prices or give comparable results versus booking directly. For a deeper dive on some of these routes and flight prices, we did a broader comparison across 20 flights in this guide.
As a general word of advice, domestic flights should yield the same results and price, but it gets tricky when searching for international fares. Your best bet would be to compare the prices and only use a portal when the prices are identical.
Ease of use
The Amex portal is my favorite for a comprehensible search experience, fast load times for results and the simplicity of parsing through the various options.
AMERICANEXPRESS.COM
On the other hand, the Capital One portal offers one of the most visually appealing interfaces, with color-coded dates to indicate the lowest prices in a calendar view — plus price drop protection. However, the Capital One portal did not provide as many options as its competitors on some searches. It also yielded higher prices for international routes, but I’m hopeful that the issuer will continue to make improvements in the future.
CAPITALONE.COM
Based on millions of data points from Hopper, Capital One is supposed to let you know if this is the best time to book via its price watch prediction feature.
CAPITALONE.COM
To standardize the offerings across various airlines, Capital One also provides detailed insights into what flyers can expect from their chosen fare class. With the rise of “basic economy” fares, it’s not always clear what amenities are included in your ticket and what you’ll have to pay for as extras.
Capital One does an excellent job of explaining in-depth features such as seat pitch, aircraft type, and food and beverage options on board.
CAPITALONE.COM
Speaking of basic economy, it’s worth noting Amex Travel rarely (if ever) displays these fares. If you’re looking for basic economy, you should use another portal.
Citi’s new portal does a good job of offering a broad range of results in economy and offering upgrades on the payment page. And being able to book flights plus other travel elements in one transaction is great. However, searching directly for business-class fares is tricky on this portal.
Finally, the Chase portal has seen vast improvements since fully migrating toward its cxLoyalty interface. Previously, when Chase was powered by Expedia, users complained about slow load times and much higher prices than those offered directly by the airlines. Some of those issues seem to have been resolved.
CHASE.COM
While the Ultimate Rewards portal could use some work in cleaning up the interface, the overall user experience is much better than before. That said, it’s also the portal with the highest frequency of price divergence from booking directly — sometimes higher and sometimes lower.
Redemption value
This is not a criterion we used for evaluating these bank travel portals for this particular article. The value of your points or miles can depend on which particular rewards card you carry. Still, it is worth remembering if you intend to use your credit card’s travel portal to earn or redeem points and miles.
Your credit card points or miles are typically worth 1 cent each for flights in your respective travel portal. That’s the case with Amex cards that earn Membership Rewards points and Capital One credit cards. Even with the Capital One’s premium card (the Venture X), your points are only worth 1 cent each when redeemed for travel through the Capital One portal. The same applies to credit cards earning Citi ThankYou points.
On the other hand, Chase’s credit cardholders are incentivized to use the Ultimate Rewards portal via a higher redemption value. With the Chase Sapphire Reserve, your points are worth 1.5 cents each toward travel bookings, while the Chase Sapphire Preferred and Ink Business Preferred Credit Card fetch 1.25 cents per point in value.
CHASE.COM
While not as consistent of a program, American Express offers “Insider Fares,” allowing cardholders to redeem their points for a better value than 1 cent apiece on select domestic and international itineraries. However, these can be quite specific.
AMERICANEXPRESS.COM
Select Amex business credit cardholders can also leverage the Pay with Points benefit to get a 25% to 50% points rebate when booking select airfare through Amex Travel — yet another incentive to book through the portal.
Due to all these card-specific circumstances, we didn’t make redemption values a main criterion for judging these portals for booking flights. Rather, we focused on each portal’s user interface and the availability of competitive fares — as those two factors will probably be the determinants as to whether travelers end up using them.
Related: Why I love the Amex Business Platinum’s Pay With Points perk
Bottom line
Credit card issuers have improved their travel portals over the years, but they’re still far from perfect. While there isn’t a clear winner for the best travel portal, each has unique features and incentives for its cardholders.
If you decide to book a flight through your issuer’s travel portal, be sure to compare that price against booking directly with the airline to get the best deal possible. And don’t forget that you may want to book directly anyway to avoid any headaches down the road. If you need to change or cancel your airfare, booking with a third party can complicate matters when plans change.
By Evlin DuBose · Wednesday, 24 May 2023
· 8 min read
Fact Checked
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Look, we’ve all had a moment wondering something bonkers, bizarre, random – you name it. And nothing can be more confusing than the wide world of property and home loans.
So let’s look at some of the silliest and awkwardly-phrased mortgage questions asked on Google, seriously answered by an expert writer.
How home loan works
Want buy house. Not enough money. What do? Ask bank nicely. Bank let you borrow money. If it think you good for it. Then you buy house. Or unit. Pay bank back. It take long time. You give bank extra money, too. This called interest. That how home loan works.
Other stuff too. Less important.
Is home loan same as mortgage
Sort of? Mostly? Yes. Ish. A home loan is the financial product banks and lenders offer. Your mortgage is a home loan that you are currently paying off.
However, finance writers will often use terms like “home loan borrowers” and “mortgage borrowers” interchangeably, since when you’re making repayments, a home loan and mortgage are functionally similar.
So yes, a home loan is basically the same as a mortgage. (Unless you’re pedantic and write about them for a living).
Is home loan interest tax deductible in Australia
Yes! If you’re a property investor in Australia, you can claim the interest from your home loan on your taxes. In fact, landlords get a whole bunch of tax perks. Lucky them!
(Just make sure you talk to a tax expert before filing).
How is home loan interest calculated
Good question! Home loan interest is calculated and compounded daily. Your monthly mortgage repayment therefore incorporates interest from the last 30 – 31 days.
This is actually why making more frequent home loan repayments can sometimes save you interest in the long run. By shortening the number of days included in your repayment (fourteen instead of thirty) while keeping your principal in consistent chunks, you can pay off your mortgage faster with less interest over time.
However, this hack will depend on how your lender calculates a fortnightly vs. monthly payment size. If your fortnightly repayments pay less than half of the principal amount you would in a monthly repayment, it actually slows down how fast you pay off your mortgage. (Math involved, but that’s how the sausage sizzles).
Does home loan include GST
GST, or the “Goods and Services Tax”, is a government charge applied to most transactions in Australia. From lattes to Uber, most things you buy will have GST built into the final price. Financial services and bank products, however, do not include GST – therefore, neither will your home loan.
But: this doesn’t mean buying a home is tax-free. When you first purchase a property, you may have to pay stamp duty or an annual land tax. Later when you sell your home, you may also have to pay capital gains tax.
Always seek help from a tax professional and financial advisor.
Home loan spouse has bad credit
Ruh-roh. Spouse buy too many things on Amazon. Maybe get screwed with BNPL. Whoops. Work on credit score together. (But don’t control their money – that financial abuse).
Also. Could apply for home loan as just you? Think about joint tenancy vs. tenancy in common. Talk to financial planner.
Remember: team work make dream work.
Do home loans look at TransUnion or Equifax
TransUnion and Equifax are credit score reporting bodies, along with Experian and Illion. Whenever you apply for a home loan, lenders will run a credit check to assess your risk as a borrower. If your credit score isn’t good, they may reject your application.
Equifax, Experian, and Illion are the main credit bureaus in Australia, so your lender may check with one, two, or all of them when assessing your borrowing power.
Before applying for a home loan, send for a free credit report from one or more of these agencies so that you can see your score for yourself. Not happy with your results? Give your application a boost by improving your credit score.
Can mortgage be paid with credit card
NO! Technically, yes – but don’t do this! BAD IDEA. A credit card may buy things in the short term (and have more money on it than your debit card), but you’ll still have to pay it back with interest – and the interest rates on credit cards are much, much steeper than those on home loans.
By using a credit card to make mortgage repayments, you’re doubling down on the interest you’re paying overall. This could also potentially hurt your credit score and ability to refinance, because if you miss either a mortgage payment or a credit card payment, it goes down on your credit report.
If you’re really struggling with your mortgage repayments, talk to your lender. You may be able to negotiate a lower interest rate and work out a repayment plan that works best for your situation.
Recent law changes also mean that it’s far, far better for your credit score to declare financial hardship than skip payments altogether. You actually get rewarded for asking for help. Huzzah!
Just whatever you do: don’t put your home loan on credit.
Can I pay an auction deposit with a credit card
NOOOO! If you’re paying a housing deposit at auction, do not put it on your credit card. Not only will vendors not accept this as a valid form of payment, but putting a deposit on your credit card defeats the whole purpose of a deposit.
A deposit is a down payment: your home loan will cover the remaining cost of the property. Your deposit is therefore the only part of your home loan you don’t pay interest on (besides money in your offset account). By using your credit card, you create interest on the only interest-free part of your loan – and at a much steeper rate than mortgage interest.
Bad idea. BAD. No. Don’t put your home loan on credit.
Is mortgage a liability or an asset
A financial liability is something that drains your finances, such as debt, while an asset is something that improves or holds your wealth. A mortgage is therefore a liability, because it is a kind of debt.
However, the property you own, i.e. your equity, is an asset, since it can provide a source of wealth and security. Your equity can be unlocked to do many things for you, like refinance your mortgage or finance another property.
Does mortgage cover stamp duty
Stamp duty is a government charge for transferring property from one owner to another. For those who have to pay it, stamp duty can cost tens of thousands of dollars.
Your mortgage, however, won’t cover stamp duty, so when budgeting to buy a home, you’ll need to factor it in as an extra cost, on top of any conveyancing, agent, settlement, and valuation fees.
Does mortgage mean death grip
Fun fact: sort of! The word “mortgage” comes from the Old French mort + gage, meaning “death” and “pledge”. In mediaeval times, land that was mortgaged was fully pledged to the lender until the borrower fully paid it off or was dead.
So, same as today – basically.
Whose property am I on
Depends, but the safest answer is, “Whoever owns it.” Not sure who owns it? Follow this handy flowchart.
Have interest rates gone up
Yes – due to high inflation, the Reserve Bank of Australia has tightened its monetary policy and made 3.75% worth of increases to the official cash rate since May 2022, which in turn drives up the interest rates on home loans, term deposits, and savings accounts.
Do interest rates rise in a recession
No, interest rates do not rise during a recession. In fact, the opposite is true. Whenever the economy enters a recession, the central bank will cut interest rates to encourage people to spend money.
As a result, home loan interest rates will fall, making financing a property cheaper, while savings accounts and term deposits won’t be as attractive, so people will be less inclined to park their money.
Interest rates rise whenever there is high inflation, and high inflation is not the same thing as a recession. High inflation (usually) means demand is out of control and consumers are driving up prices, thus raising the cost of living.
To discourage spending, the central bank will raise interest rates, therefore making savings accounts a better place to stash cash while mortgage repayments become more expensive.
Who owns the Reserve Bank of Australia
Australia.
Can you bank with the Reserve Bank of Australia
No. The Reserve Bank of Australia, also known as the RBA, is a central bank in charge of monitoring the Australian economy and setting Australia’s monetary policy. Unless you are the Australian government, the RBA cannot manage your finances.
If you are in the market for a new bank, however, you can compare bank accounts using our hub page.
Will housing prices drop
While the housing market may experience temporary dips and falls, studies show that long-term, property prices will always rise. This is primarily due to inflation, but increased competition doesn’t help, either.
Hurray…
How buy first home
Try government help. Move away from big city. Maybe buy unit instead? Cry. But no give up.
In all seriousness, first home buying can be a daunting task, but there are still plenty of ways to break into the housing market – even with the odds stacked against you.
You’ll need to navigate the hurdle of rising interest rates, outrageous prices, and the cost of living, but with careful planning and research, these can all be managed.
For more information on how to get started, head over to our first home buyer hub.
LVR what? LMI who? Learn home loan terms with our handy glossary.
Compare low-interest rate offers in the table below.
Compare low interest rate home loans – last updated 27 May 2023
Search promoted home loans below or do a full Mozo database search . Advertiser disclosure
Featured Product
Unloan Variable
Owner Occupier, Refinance Only, LVR <80%
interest rate
comparison rate
Initial monthly repayment
4.99% p.a.variable
4.90% p.a.
For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.
Compare
Compare
Details Close
Unloan Variable
For refinancers only. Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply in as little as 10 minutes.
interest rate
4.99% p.a.variable
comparison rate
4.90% p.a.
interest rate
4.99% p.a.variable
comparison rate
4.90% p.a.
Upfront fees
$0
Ongoing fees
$0.00
Discharge Fee
$0.00
Extra repayments
yes – free
Redraw facility
yes – free
Offset account
no
Maximum loan to value ratio
80.00%
minimum borrowing amount
$10,000
maximum borrowing amount
$3,000,000
type of mortgage
Variable
Repayment types
Principal & Interest
Availability
Owner Occupier
Repayment options
Weekly, Fortnightly, Monthly
Special Offers
–
Express Home Loan
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
5.47% p.a.variable
5.62% p.a.
Get fast approval online in as little as one hour with the Bendigo Bank Express Home Loan. Available for new home loans only. Optional offset account to save even more. Flexible repayment options. 10% deposit required.
Compare
Compare
Details Close
Express Home Loan
Get fast approval online in as little as one hour with the Bendigo Bank Express Home Loan. Available for new home loans only. Optional offset account to save even more. Flexible repayment options. 10% deposit required.
interest rate
5.47% p.a.variable
comparison rate
5.62% p.a.
interest rate
5.47% p.a.variable
comparison rate
5.62% p.a.
Upfront fees
$384
Ongoing fees
$10.00 monthly
Discharge Fee
$350.00
Extra repayments
yes – free
Redraw facility
yes – free
Offset account
yes
Maximum loan to value ratio
90.00%
minimum borrowing amount
$5,000
maximum borrowing amount
$3,000,000
type of mortgage
Variable
Repayment types
Principal & Interest
Availability
Owner Occupier
Repayment options
Weekly, Fortnightly, Monthly
Special Offers
–
Own Home Loan
Owner Occupier, Principal & Interest, LVR <60%
interest rate
comparison rate
Initial monthly repayment
5.54% p.a.variable
5.79% p.a.
Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
Compare
Compare
Details Close
Own Home Loan
Competitive variable rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
interest rate
5.54% p.a.variable
comparison rate
5.79% p.a.
interest rate
5.54% p.a.variable
comparison rate
5.79% p.a.
Upfront fees
$250
Ongoing fees
$250.00 yearly
Discharge Fee
$300.00
Extra repayments
yes – free
Redraw facility
yes – free
Offset account
yes
Maximum loan to value ratio
60.00%
minimum borrowing amount
–
maximum borrowing amount
–
type of mortgage
Variable
Repayment types
Principal & Interest
Availability
Owner Occupier
Repayment options
Weekly, Fortnightly, Monthly
Special Offers
–
Offset Home Loan
Package, Owner Occupier, LVR<60%, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
5.54% p.a.variable
5.79% p.a.
Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
Compare
Compare
Details Close
Offset Home Loan
Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.
interest rate
5.54% p.a.variable
comparison rate
5.79% p.a.
interest rate
5.54% p.a.variable
comparison rate
5.79% p.a.
Upfront fees
$350
Ongoing fees
$248.00 yearly
Discharge Fee
$400.00
Extra repayments
yes – free
Redraw facility
yes – free
Offset account
yes
Maximum loan to value ratio
60.00%
minimum borrowing amount
$150,000
maximum borrowing amount
$10,000,000
type of mortgage
Variable
Repayment types
Principal & Interest
Availability
Owner Occupier
Repayment options
Monthly
Special Offers
–
Solar Home Loan
Owner Occupier, Principal & Interest, LVR <90%
interest rate
comparison rate
Initial monthly repayment
5.39% p.a.variable for 60 months and then 6.23% p.a.variable
5.98% p.a.
Enjoy a lower interest rate for the first 5 years if you have solar panels or plan to get them. Get up to a 30 year loan term. Unlimited additional repayments. Option offset sub-account. No ongoing fees to pay. Free unlimited redraws.
Compare
Compare
Details Close
Solar Home Loan
Enjoy a lower interest rate for the first 5 years if you have solar panels or plan to get them. Get up to a 30 year loan term. Unlimited additional repayments. Option offset sub-account. No ongoing fees to pay. Free unlimited redraws.
interest rate
5.39% p.a.variable for 60 months and then 6.23% p.a.variable
comparison rate
5.98% p.a.
interest rate
5.39% p.a.variable for 60 months and then 6.23% p.a.variable
comparison rate
5.98% p.a.
Upfront fees
$530
Ongoing fees
$0.00
Discharge Fee
$300.00
Extra repayments
yes – free
Redraw facility
yes – free
Offset account
yes
Maximum loan to value ratio
90.00%
minimum borrowing amount
$50,000
maximum borrowing amount
$1,500,000
type of mortgage
Variable
Repayment types
Principal & Interest
Availability
Owner Occupier
Repayment options
Weekly, Fortnightly, Monthly
Special Offers
–
*
WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
**
Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
^See information about the Mozo Experts Choice Home Loan Awards
Mozo provides general product information. We don’t consider your personal objectives, financial situation or needs and we aren’t recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don’t cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.
Travelers who take advantage of American Airlines and JetBlue Airways’ partnership through the Northeast Alliance may face big changes in the coming weeks.
A federal judge has ordered the airlines to disband their agreement within 30 days.
Barring further legal maneuvering, the order could mean the end of the Northeast Alliance, which enables codesharing on certain flights, as well as the ability for members of both airlines’ loyalty programs to receive reciprocal perks on the carriers.
The decision came after a lawsuit filed by the U.S. Department of Justice. It argued the partnership between American and JetBlue stymies competition, ultimately hurting consumers. The airlines and the government faced off in a monthlong trial last fall.
So far, in the wake of the judge’s ruling, neither airline has shared specifics about how the decision might directly affect customers.
Those with existing reservations booked via the partnership or those planning travel in the near future don’t need to worry just yet. The airlines can still appeal the decision, but if JetBlue and American are ultimately forced to undo their partnership, options may be limited for many flyers.
What is the Northeast Alliance?
Launched in 2021, the Northeast Alliance between American Airlines and JetBlue features two main elements at its core: a codeshare agreement and reciprocal benefits.
Codeshare agreement
First, American and JetBlue codeshare on certain flights in and out of four key Northeast airports:
Boston Logan International Airport.
New York-John F. Kennedy International Airport.
New York-LaGuardia Airport.
Newark Liberty International Airport.
The idea is, you can book a ticket on American and end up with one or all of the flights on your trip aboard a JetBlue aircraft or vice versa … all on one seamless itinerary.
As recently as December 2022, the airlines announced 10 new destinations as part of the partnership. The agreement provides customers with “more choice and service.”
The airlines have even altered where they operate at certain Northeast airports, accordingly, since launching the partnership a few years ago.
Last summer, for instance, JetBlue finished relocating all of its LaGuardia Airport gates to Terminal B, where American operates its hub, making it easy for customers to make connections.
Loyalty benefits
The second big part of the Northeast Alliance is the reciprocal benefits offered to American and JetBlue’s loyalty members, which transfer between the airlines.
The agreement allows TrueBlue members to earn points and Mosaic elite status tiles while flying on American flights. And AAdvantage members can earn miles while flying on JetBlue flights (though not on JetBlue’s transatlantic flights).
Through the alliance, AAdvantage elite status members and Mosaic elite status members can also enjoy some of their loyalty perks while flying aboard the opposite carrier, from free bags to complimentary economy plus seats and priority boarding.
As part of the judge’s order, all of this would presumably have to end 30 days after the May 19 ruling — which would fall in mid-June.
What happens to the Northeast Alliance now?
Despite the order to end the Northeast Alliance, neither airline seems to be in a hurry to make swift changes.
A quick check of American’s website for a hypothetical Fourth of July trip from Raleigh-Durham International Airport in North Carolina to Boston reveals an itinerary entirely operated by JetBlue via the Northeast Alliance.
Likewise, here’s a potential mid-July itinerary from Boston to Charlotte booked via JetBlue.com that features flights operated by JetBlue and American aircraft.
Perhaps more pressing, it’s also not entirely clear what would happen to existing reservations when it comes to the reciprocal perks (for instance, elite status members hoping to enjoy their free baggage benefit) or reservations booked as part of the codeshare agreement.
That may be by design, says Florian Ederer, an associate professor at Yale University’s School of Management. His research focuses on antitrust cases, and he has closely followed this case.
“It’s not entirely clear that this is going to happen immediately,” Ederer says. “[The case] may have some ways to go.”
Ederer predicts the airlines will appeal.
In email statements to NerdWallet, both airlines criticized the judge’s decision and hinted at further legal proceedings.
“We believe the decision is wrong and are considering next steps. The Court’s legal analysis is plainly incorrect and unprecedented for a joint venture like the Northeast Alliance,” American Airlines said.
“We are disappointed in the decision,” JetBlue said. “We are studying the judgment in full and evaluating our next steps as part of the legal process.”
In accordance with federal civil case procedures, the plaintiff (in this case, the government) and defendants (in this case, the airlines) are entitled to appeal.
Good or bad for consumers?
At its essence, this case focused on what’s ultimately good for customers. Both airlines argued in court and after the judge’s decision that their partnership has been a “win” for flyers.
“JetBlue has been able to significantly grow in constrained Northeast airports, bringing the airline’s low fares and great service to more routes than would have been possible otherwise,” JetBlue said.
“There was no evidence in the record of any consumer harm from the partnership,” American said.
But in his opinion, Judge Leo T. Sorokin argued otherwise.
“Until 2020, American and JetBlue were fierce and frequent head-to-head competitors. … The NEA changes all of that,” he wrote, raising concerns about fares and features offered as part of the partnership.
For his part, Ederer believes breaking up the Northeast Alliance may ultimately be positive for customers, calling the existing alliance a “merger in everything but name.”
“I do think that disbanding this agreement will actually reinject a healthy dose of competition, lower prices and higher quality for consumers in the Northeast,” he says.
(Top photo courtesy of JetBlue)
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 2023, including those best for:
A fraud alert is a temporary alarm system set up on your credit account that will inform you if there are any changes in your account. A credit freeze is a freeze placed on your credit file that blocks lenders from viewing your report without authorization.
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.
Fraud alerts and credit freezes are two methods for protecting yourself from identity theft. But they’re not the same thing, and if you understand the pros and cons of each, you can decide which is best suited to your needs. A fraud alert requires creditors to verify your identity before allowing new credit accounts to be opened, whereas a credit freeze stops new credit accounts from being opened in your name.
So, what’s the right choice for you in the fraud alert vs. credit freeze debate? Keep reading for a complete breakdown of both options.
What is a fraud alert?
A fraud alert is when you put an added layer of security on your credit report that forces all lenders and financial institutions to verify your identify before approving a new credit account being opened. Typically, the creditor will call you whenever a new account request is initiated to confirm you’re the one asking for the account.
People typically use a fraud alert if they’ve been a victim of identity fraud or if they suspect their information has been compromised. While a fraud alert adds some protection to your account, it’s not a guarantee, and there are still ways scam artists can get around the identity check.
There are three main types of fraud alerts:
Standard fraud alert: A standard fraud alert typically lasts one year but can be renewed as many times as needed. Individuals don’t need to be victims of identity theft to activate this kind of fraud alert on their accounts.
Extended fraud alert: An extended fraud alert lasts for seven years. This option is only available to those who’ve been victims of identity theft. To qualify, you have to file a report with the police or the FTC’s IdentityTheft.gov website. In addition to verifying your identity with each new account request, the extended fraud alert will remove you from marketing lists for credit and insurance offers for the next five years. However, if you want to remain on this list, you can choose to do so.
Active-duty fraud alert: The active-duty fraud alert is only for military service members. When individuals go on active duty assignments, they can apply for this type of fraud alert to protect their accounts while they’re abroad. The alert typically lasts one year but can be renewed as long as the individual is deployed. In addition, they’ll be removed from marketing lists for two years unless they request otherwise.
Fraud alerts are self-imposed and free to add to your account.
How do you place a fraud alert?
You can place a fraud alert on your account by reaching out to one of the three major credit bureaus—Experian®, Equifax®, or TransUnion®. After you notify one bureau, it’s their responsibility to inform the others. You can set up a fraud alert online or contact any of the bureaus by phone with this request. You’ll need to submit your proof of identity to successfully set up the fraud alert.
How do you remove a fraud alert?
Fraud alerts are automatically lifted from your account after the applicable deadline (one year for standard and active-duty alerts and seven years for extended alerts). However, if you want to remove the fraud alert earlier, you can. You’ll need to contact each credit bureau separately and request that the fraud alert be lifted. As was the case with setting up the alert, you’ll need to provide proof of your identity to remove the alert from your account.
What is a credit freeze?
A credit freeze offers even more protection than a fraud alert. Essentially, a credit freeze stops anyone from accessing your credit report. This effectively prevents anyone from being able to open a new account under your name, as creditors need to review your report before approving a new application. You’ll be able to open new accounts only when you “thaw” or “unfreeze” your account.
How do you freeze your credit?
To freeze your credit, you’ll have to contact each of the three major credit bureaus separately. Note that fees are usually associated with a credit freeze, with the exact amount varying by state. On average, expect to pay around $10 per bureau for a credit freeze. You can apply for a credit freeze online or via phone for all three bureaus.
When you’re setting up a credit freeze, you’ll be asked to set up a PIN or password, which can later be used to unfreeze your account.
How do you unfreeze your credit?
Your report will stay frozen until you choose to “thaw” it. This means that you need to unfreeze your credit before applying for more credit, and this is usually the driving factor that motivates people to thaw their accounts. Often, people want to get a new credit card, loan, or mortgage or apply for a rental lease or some other credit account and need to give the lender access to their credit report.
To unfreeze your account, you’ll need to contact each of the credit bureaus and provide your PIN. There may be a small fee associated with unfreezing your account with each agency. Once you put in a request to unfreeze your account, the change can take from as little as a few minutes to up to three days. As a result, it’s essential to give yourself plenty of time for the account to thaw before the lender goes to access your report.
If you lose your PIN, unfreezing your account will still be possible, but it’ll take longer to approve.
Do fraud alerts or credit freezes affect your credit?
No, fraud alerts and credit freezes don’t affect your credit. In fact, they can protect your credit from identity fraud attempts. Identity fraud is a serious situation that can significantly drag your credit score down and take months to years to clear up on your credit report.
Which option is right for you?
Ultimately, each individual needs to decide which option is right for them based on their situation. Some of the popular situations to consider that might call for either a fraud alert or a credit freeze are:
You’re in the process of or about to begin getting a mortgage, auto loan, lease, or another account: In this case, you don’t want to go through with a credit freeze, as access to your credit report will be necessary to approve your new application. Instead, a fraud alert should be sufficient to protect you.
You’ve been a recent victim of identity theft or know your information has been compromised: If you’re seriously concerned about identity theft, you should likely opt for a credit freeze, as it’s more protective.
If you know you don’t need new credit for a while: Older people often are settled with all their credit needs—a mortgage, car loan, credit cards, etc. Therefore, they can comfortably assume they won’t be applying for new credit anytime soon and might feel more protected with a credit freeze.
Note that you can have both hypothetically, although it might be somewhat redundant. Generally, most experts recommend choosing one or the other.
Even with a credit freeze or a fraud alert on your account, it’s still crucial for you to check for fraudulent charges on your cards and look for red flags on your credit reports. You never know when something could slip through, and if it does, it’s crucial to act quickly. The longer something remains on your credit report, the longer it will impact your credit and be harder to rectify.
If you don’t have the time or desire to check your credit reports, you can take advantage of the services provided by Lexington Law Firm. Our credit consultants will help you review your credit reports and file disputes if needed. Removing even one error from your credit report could result in a credit score increase. Get started today.
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.
Reviewed By
Paola Bergauer
Associate Attorney
Paola Bergauer was born in San Jose, California then moved with her family to Hawaii and later Arizona.
In 2012 she earned a Bachelor’s degree in both Psychology and Political Science. In 2014 she graduated from Arizona Summit Law School earning her Juris Doctor. During law school, she had the opportunity to participate in externships where she was able to assist in the representation of clients who were pleading asylum in front of Immigration Court. Paola was also a senior staff editor in her law school’s Law Review. Prior to joining Lexington Law, Paola has worked in Immigration, Criminal Defense, and Personal Injury. Paola is licensed to practice in Arizona and is an Associate Attorney in the Phoenix office.
Referral links for the Chase Ink Cash & Chase Ink Unlimited are now showing the 90,000 points offer. Feel free to share your referral link once in the comments below. Do not add any additional words other than the referral link and don’t thread comments. Remember to try and use a referral from a reader that contributes positively to the community (click the i icon next to their name to see their comment history).
Save more, spend smarter, and make your money go further
After a brutal winter, many of us are ready to embrace spring with open arms! The arrival of spring also signals seasonal cleaning duties such as cleaning windows, putting away the winter wardrobe and breaking out the flip flops.
But don’t forget to include your personal finances in your spring cleaning “to do” list! Spring is the perfect time to tackle financial clutter–from refreshing budgets to going paperless to cleaning up your credit score.
Here are 5 tips that make it easy to do a financial clean sweep this spring:
1. Refresh your budget
Kick off your financial spring cleaning by refreshing your budget. Revisit the financial goals you set January 1. How are you doing so far? If you’re over budget, look at where you can make changes and cut back on spending. Remember to adjust your budget to satisfy current needs as well as long-term savings goals.
2. Reduce financial clutter – go paperless
You know that amazing feeling when you get rid of clothes you haven’t worn in years? Getting rid of that filing cabinet filled with old bills and credit card statements can feel just as freeing. A good way to cut down on clutter is to opt for electronic bill payments using a free bill-paying app like Mint Bills – which allows you to pay all your bills and schedule bill payments via an easy to use web and mobile platform.
3. Check your credit score
If you haven’t checked your credit score, now might be a great time. This number is a critical part of a consumer’s financial portfolio. Understand your score and the factors impacting it so you can learn how to improve it. If your credit score is low, commit to making your payments on time and focus on chipping away at large balances on your credit cards.
4. Pay off holiday debt once and for all
Cleaning up this debt quickly can put you in a much better financial position for the rest of the year. Start by clearing up your credit lines and pay off the purchases you made over the holiday season. If you have to, put yourself on a stricter debt payoff plan specifically focused on paying off the debt you accumulated over the holidays.
5. Sell unwanted items
Instead of throwing away your belongings to reduce clutter, consider selling your stuff to help boost your savings goals or earn extra money. Getting rid of old furniture? Try Craigslist. Cleaning out your closet? Try selling your clothing and accessories on Threadflip, a site that helps list, price, and ship the items for you.
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If you don’t pay your credit card bill, you could face more severe consequences than you might think. Though it will depend on your credit card issuer, you can generally expect to be charged a late fee as well as a penalty interest rate which is higher than the regular purchase APR.
Life happens, and, from time to time, payments are missed, especially if you’re dealing with emergencies such as losing a job or a family crisis. In the event you have skipped a credit card payment, it’s crucial you understand what can happen. That way, you can take steps to reduce the odds of it having a major impact on your financial health.
Here, you’ll learn more about this topic, including:
• What happens if you don’t pay your credit card bills?
• What if you miss one credit card payment?
• What happens if you only can make minimum payments?
• How can you pay off credit cards?
What Happens If You Don’t Pay Your Credit Card?
Consequences for missed credit card payments could include being changed late fees and possibly losing your grace period. It may also negatively affect your credit score since issuers report your payment activity to the credit bureaus — in most cases after 30 days.
There may be other consequences depending on how late your payment is and whether it’s your first time missing a payment.
Accruing Interest
When you don’t pay your credit card, interest will accrue and will continue to do so as long as you have a balance on your card. In essence, you are paying more for your initial purchase thanks to that interest.
The longer you go without paying your credit card, the more you risk your rate going up. Your credit card issuer may start imposing a penalty annual percentage rate (APR), which tends to be higher than your regular purchase APR. If this happens, you’ll end up paying more in interest charges. The penalty APR may apply to all subsequent transactions until a certain period of time, such as for six billing cycles.
Collections
Depending on your credit card issuer, your missed payments may go into collections if it goes unpaid for a period of time. You’ll still continue to receive notices about missed payments until this point.
More specifically, if you don’t pay your credit card after 120 to 180 days, the issuer may charge off your account. This means that your credit card issuer wrote off your account as a loss, and the debt is transferred over to a collection agency or a debt buyer who will try to collect the debt.
Once this happens, you now owe the third-party debt buyer or collections agency. Your credit card issuer will also report your account status to the major credit bureaus — Experian, TransUnion, and Equifax. This negative information could stay on your credit report for up to seven years.
It’s hard to tell what third-party debt collectors will do to try and collect your debt. Yes, they may send letters, call, and otherwise attempt to obtain the money due.
Some collections agencies may even try to file a lawsuit after the statute of limitations expires. In rare cases, a court may award a judgment against you. This means the collections agency may have the right to garnish your wages or even place a lien against your house.
If your credit card bill ends up going to collections, take the time to understand what your rights are and seek help resolving the situation. Low- or no-cost debt counseling is available through organizations like the National Foundation for Credit Counseling (NFCC).
Bankruptcy
You may find that you have to declare bankruptcy if you still aren’t able to pay your high credit card debt and other financial obligations. This kind of major decision shouldn’t be taken lightly. You will most likely need to see legal counsel to determine whether you’re eligible.
If you do file bankruptcy, an automatic stay can come into effect, which protects you from collection agencies trying to get what you owe them. If successfully declare bankruptcy, then your credit card debt will most likely be discharged, though there may be exceptions. Seek legal counsel to see what your rights and financial obligations are once you’ve filed for bankruptcy.
Making Minimum Payments
A minimum payment is typically found in your credit card statement and outlines the smallest payment you need to make by the due date. Making the minimum payment ensures you are making on-time payments even if you don’t pay off your credit card balance. Any balance you do carry over to the next billing cycle will be charged interest. You can also avoid late fees and any other related charges by making a minimum payment vs. not paying at all.
What Happens if You Miss a Payment
If you can’t pay your credit card for whatever reason, it’s best to contact your issuer right away to minimize the impact. Let them know why you can’t make your payment, such as if you experienced a job loss or simply forgot. For the latter, pay at least the minimum amount owed as soon as you can (ideally before the penalty or higher APR kicks in).
If this is your first time missing a payment but otherwise paid on time, you can try talking to the credit card company to see if they can waive the late fee.
Some credit card issuers may offer financial hardship programs to those who qualify, such as waiving interest rates, extending the due date, or putting a pause on payments (though interest may still accrue) until you’re back on your feet.
15/3 Rule for Paying Off Credit Cards
The 15/3 payment method can help you keep on top of payments and lower your credit utilization — the percentage of the credit limit you’re using on revolving credit accounts — which can impact your score.
Instead of making one payment when you receive our monthly statement, you pay twice — one 15 days before the payment due date, and the other three days beforehand. This plan is useful if you want to help build your credit history and pay on time.
The Takeaway
Missing your credit card payment may not be a massive deal if it just happens once or twice, but it can turn into one if you continue to ignore your bill. While it’s not exactly fun to have to pay a late fee, you may be able to negotiate with the credit card issuer to waive it if you are otherwise a responsible user. Even if not, it’s better than being bumped up to the penalty APR or, worse still, having your account go to collections.
Are you looking for your first or a new credit card? Consider the SoFi Credit Card. With perks like cash back rewards on all purchases, no foreign transaction fees, and Mastercard ID Theft Protection, it may be just the right choice for your personal and financial goals.
The SoFi Credit Card: The smarter way to spend.
FAQ
How long can a credit card go unpaid?
The statute of limitations, or how long a creditor can try to collect the debt owed, varies from state to state, which can be decades or more.
What happens if you never pay your credit card bill?
If you never pay your credit card bill, the unpaid portion will eventually go into collections. You could also be sued for the debt. If the judge sides with the creditor, they can collect the debt by garnishing your wages or putting a lien on your property.
Is it true that after 7 years your credit is clear?
After seven years, most negative remarks on your credit report, such as accounts going to collections, are generally removed.
Photo credit: iStock/MStudioImages The SoFi Credit Card is issued by The Bank of Missouri (TBOM) (“Issuer”) pursuant to license by Mastercard® International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated. 1See Rewards Details at SoFi.com/card/rewards. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website . This article is not intended to be legal advice. Please consult an attorney for advice. Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners. SOCC0523007