rewards

Apache is functioning normally

Apache is functioning normally

Netflix has come a long way from its 1998 start of mailing rental DVDs to consumers. There’s no doubt that today it reigns as one of the most popular streaming services out there, gaining the No. 1 spot in U.S. News & World Report’s list of best on-demand streaming services for its expansive library and award-winning original content.

In fact, according to a recent Netflix earnings report, more than 238 million people have monthly subscriptions as of 2023. But is Netflix the right streaming service for you? Explore how much Netflix costs and how the cost per month could fit into your overall budget.

Netflix costs $6.99 to $19.99 per month, depending on your subscription plan. It offers three plans: Standard With Ads, Standard and Premium. A former popular choice was the Basic plan at $9.99, but Netflix recently eliminated this option for new or rejoining members. If you’re currently on the Basic plan, you can keep your account as-is until you decide to change plans or cancel.

Users can cancel anytime. They can watch for the rest of the current billing period, and service ends when the next billing cycle starts. Customers who pay with credit or debit card also have the option to pause service for a month at a time rather than canceling, for up to three months.

Netflix subscription cost

Netflix only offers monthly subscriptions; there’s no option to pay yearly for a discount.

Standard with ads: $6.99 per month

With the Standard with ads plan, subscribers can access the majority of Netflix’s library in full high-definition and watch ad-supported film and television on two supported devices at a time. Supported devices include your smartphone or tablet, smart TV, laptop, or a streaming device such as Roku or Google Chromecast.

Downloading content onto a device to watch offline is not available with this plan.

Standard: $15.49 per month

The Standard plan is similar to the Standard with ads plan in that users can watch Netflix on two devices at a time, but have the added benefit of downloading content onto two devices and watching unlimited ad-free movies and shows. The Standard plan also includes full HD.

In previous Netflix offerings, users could share passwords with friends and family not living in the same household. But in late May, Netflix cracked down on password sharing, telling U.S. customers that their Netflix account “is for you and the people you live with — your household.” Customers now must pay $7.99 per month to share their account with people outside their household. Under the standard plan, users can add only one “extra member” outside their household.

Premium: $19.99 per month

Premium subscribers have unlimited ad-free viewing and can use up to four devices simultaneously, with the capability to download content onto six devices. Enhanced viewing features, like Ultra HD and Netflix spatial audio, set Premium subscriptions apart from the other options. Premium users also have the opportunity to add to the account two extra members not within the same household for shared access, at $7.99 each per month.

Regardless of which tier seems the most suitable today, price increases are on the horizon. The price of major ad-free streaming services has escalated by 25% in the past 12 months, according to The Wall Street Journal. While Netflix has been one of the few that has not increased prices since 2022, it is reported to be planning a pricing change once the Hollywood actors’ strike is over.

How do streaming services fit into your budget?

When deciding whether to add a new streaming subscription or adjust your current ones, it’s a good idea to reevaluate your budget. The 50/30/20 framework can be helpful; it means you allocate up to 50% of your income for needs, 30% for wants, and 20% for savings and debt repayment.

Streaming services fall into the category of wants, or the 30% available from your take-home pay. There’re a few ways to approach fitting streaming services like Netflix into your budget.

First, consider all the expenditures in your wants category — are there ways to save elsewhere, like reducing online shopping or cutting back on restaurant visits? Freeing up funds from other wants can make room in a budget for costlier streaming options.

Likewise, reviewing the number of monthly subscriptions you have and reassessing whether you still use and want them all can help keep a budget on track. Ask yourself: How much do I use each service? If I have to choose one, would I rather have subscription A or B?

If you’re a credit card user, check your rewards categories and see if you earn cash back or bonus points for subscription services. While it may not be worth opening a new card for these perks alone, it can be a nice complement to an existing budgeting strategy.

Source: nerdwallet.com

Apache is functioning normally

Apache is functioning normally

The difference between the two travel cards mostly comes down to basic math: As a mid-tier travel card, the Sapphire Preferred has a$95 annual fee, but the Venture X is considered a premium travel card — and has the hefty price tag to match. The Venture X certainly delivers when it comes to luxury perks, but the card won’t be the right choice if you won’t make use of any of those benefits, or aren’t willing to pay for them.

Here’s how to decide between the Chase Sapphire Preferred® Card and Capital One Venture X Rewards Credit Card.

At a glance

How the cards compare

Capital One Venture X Rewards Credit Card

Chase Sapphire Preferred® Card

on Chase’s website

Annual fee

Welcome bonus

Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel.

Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 toward travel when you redeem through Chase Ultimate Rewards®.

Rewards

  • 10X miles on hotels and rental cars booked through Capital One Travel.

  • 5X miles on flights booked through Capital One Travel.

  • 2X miles on all other purchases.

  • Earn 5X points on travel purchased through Chase Ultimate Rewards®, excluding hotel purchases that qualify for the $50 annual Ultimate Rewards® hotel credit.

  • Earn 3X points on dining, including eligible delivery services, takeout and dining out.

  • Earn 3X points on online grocery purchases (excluding Target, Walmart and wholesale clubs).

  • Earn 3X points on select streaming services.

  • Earn 2X on travel purchases not booked through Chase Ultimate Rewards® .

  • Earn 1X per dollar spent on all other purchases.

Extra benefits

  • $300 annual credit for bookings through Capital One Travel.

  • $100 credit for Global Entry or TSA PreCheck.

  • Get 10,000 bonus miles (equal to $100 toward travel) every year, starting on your first anniversary.

  • Every year, earn bonus points equal to 10% of your total purchases made the previous year. 

  • Up to $50 in statement credits each account anniversary year for hotel stays purchased through Chase Ultimate Rewards.

Still not sure?

Why Chase Sapphire Preferred® Card is better for most people

Lower annual fee

Annual fees for credit cards aren’t inherently bad, and in most cases the more you pay, the more you get. Still, forking over a large fee for a travel card can be a tough pill to swallow. The annual fee for the Chase Sapphire Preferred® Card is several hundred dollars less than the Venture X’s. And when you consider how much value you get for the Chase Sapphire Preferred® Card and its $95 annual fee, many people will find it hard to justify paying hundreds more for another travel credit card.

Better transfer partners

Transfering points to a partner airline or hotel is one of the best ways to squeeze more value out of them. While Chase has fewer transfer partners than Capital One, most travelers will find Chase’s to be more attractive. For example, only Chase partners with United and Hyatt, and Hyatt boasts perhaps the best transfer value at 2.3 cents per point, according to NerdWallet’s analysis.

Capital One also boasts an array of airline and hotel transfer partners, but they are largely foreign brands. Savvy travelers can find outsize value from Capital One’s partners, but many travelers will find Chase’s options more accessible.

Broader rewards structure

The rewards structure on the Chase Sapphire Preferred® Card makes the card more suited for everyday spending than the Venture X. The latter has the potential to earn up to an eye-popping 10x on travel, but you’ll have to book that travel through the Capital One portal. The card earns a respectable 2x on everything.

With the Chase Sapphire Preferred® Card you’ll earn 3x points on dining, including delivery services and takeout; streaming services; and online grocery purchases. If your spending habits sync with the Sapphire Preferred’s rewards structure, you’ll be able to effortlessly rack up points to pay for your next vacation.

🤓Nerdy Tip

By adding another no-fee card or two to your wallet, you can create a Chase Trifecta and supercharge your Ultimate Rewards® earnings. The Chase Freedom Flex℠ earns 5x up to $1,500 per quarter in rotating bonus categories when you activate (1x on everything else), plus 3x at drugstores.

Points worth 25% more

As major card issuers, both Chase and Capital One have their own travel portals through which cardholders can book flights, hotels and car rentals. However, Chase’s Ultimate Rewards® travel portal offers slightly better value. Points are worth 1.25 cents each when used to book through Chase while one Capital One mile is worth 1 cent.

Who might prefer the Capital One Venture X Rewards Credit Card

You want lounge access

True to its classification as a premium travel card, the Venture X grants its cardholders and two guests unlimited access to more than 1,000 airport lounges including Priority Pass lounges and Capital One lounges.

If you want lounge access but prefer Chase’s lineup of credit cards, your only option is the $550-annual-fee Chase Sapphire Reserve®.

You like Capital One’s travel portal

Booking travel through Capital One’s portal is the best way to offset most of the Venture X’s annual fee. Cardholders will receive a $300 annual credit toward travel expenses, which can be used in a single transaction or across multiple purchases. If you don’t mind booking through the portal, the $300 credit plus the 10,000 anniversary points you’ll get each year you renew (worth $100) will cover the entire annual fee of the card.

The Chase Sapphire Preferred® Card offers an annual credit, too, but it’s $50 and only good for hotel bookings through the Ultimate Rewards® portal.

You want trusted traveler program credit

Skipping the line in a crowded airport can be a huge perk, and Capital One Venture X Rewards Credit Card cardholders get a $100 credit for Global Entry or TSA PreCheck. The Chase Sapphire Preferred® Card offers no such reimbursement. Note, though, that you must pay for the Global Entry or TSA PreCheck fee with the Venture X card, and the $100 credit renews every four years, not annually.

Which card should you get?

The Chase Sapphire Preferred® Card, with its reasonable annual fee, top-tier travel partners and access to Chase’s travel portal, is the perfect entree into the world of travel credit cards. Plus, the $95 annual fee can be partly recouped by redeeming the hotel travel credit. Only if you’re after luxury perks and are comfortable paying a triple-digit annual fee should you commit to the Capital One Venture X Rewards Credit Card.

Source: nerdwallet.com

Apache is functioning normally

Apache is functioning normally

Imagine a life where your monthly paycheck isn’t eaten up by debt payments, where your financial choices aren’t driven by outstanding balances on credit accounts, and unexpected expenses don’t plunge you deeper into debt.

This is the essence of a debt-free life. Living debt free means you owe no money to any person or institution. It’s a state of financial freedom that many dream of, yet few achieve.

But like any significant life choice, it’s not without its pros and cons. The aim of this article is to dive deeper into the advantages and drawbacks of leading a debt-free life. Whether you’re buried under credit card debt or still paying off student loans, understanding the impacts of a debt-free lifestyle can help you set goals and envision a future of financial freedom.

Even if you’re simply looking to improve your personal finance habits, this knowledge can empower you to make informed decisions about your financial future. Let’s unravel the truth behind the debt-free life, its challenges, and rewards.

What does it mean to live a debt-free life?

Living a debt-free life can mean different things to different people, but in the broadest sense, it means having no outstanding debts to your name. This means zero credit card debt, no car loans, and no mortgage.

It’s a financial state where your income is entirely yours, unburdened by any obligations to lenders. But it’s crucial to note that not all debt is bad. Some forms of debt, like low interest debt such as a mortgage, can actually work to improve your financial situation over time.

The Path to Debt-Free Living

So, how do you achieve this seemingly elusive state of debt free living? The first step involves knowing exactly how much debt you have. It’s not enough to know your minimum payments or even your monthly payment, you need a full understanding of your entire debt landscape.

This process involves pulling together data from all your credit accounts, from credit cards to personal loans, and noting the interest rates and balances. If your debt consists of high-interest debt like credit cards, consider strategies like debt consolidation to lower the interest charges and make repayment manageable. You can also consider using the debt snowball or debt avalanche method to pay down your debt over time.

Once you know how much debt you have, the next step is creating a monthly budget. Your budget should include your income, living expenses, debt payments, and any discretionary spending. Budgeting is a vital tool in the journey to financial freedom, allowing you to see where your money is going and where you can start saving money.

As you pay down debt, you’ll also want to focus on building an emergency fund. This is money set aside to cover unexpected expenses when they arise, like car repairs or medical bills. Having an emergency fund helps ensure that these unexpected expenses don’t push you further into debt.

Pros of Living a Debt-Free Life

Living a debt-free life has several notable benefits.

Financial Stability

Being debt-free can contribute to a greater sense of financial stability. Without debt payments to worry about, you can put more money towards savings or investments. You won’t be worried about covering minimum payments or juggling high interest debt.

Financial Flexibility

A debt-free lifestyle also provides financial flexibility. When you don’t owe money to creditors, you have more freedom to make financial decisions based on your needs and wants, not on your obligations.

Improved Credit Score

Less debt usually leads to a better credit score, especially if you have a history of timely payments. Credit bureaus take note of how much of your available credit you’re using, and lower utilization generally leads to a higher score.

Sense of Accomplishment and Personal Growth

The journey to become debt-free isn’t easy, but it can be incredibly rewarding. The discipline and determination required to pay off your debts can lead to personal growth and a significant sense of accomplishment.

Cons of Living a Debt-Free Life

While the benefits of living debt-free are substantial, there are also some downsides to consider.

Lost Opportunities for Leveraging Debt

While it’s true that being in debt can be stressful, not all debt is bad. Certain types of low interest debt can work in your favor. For example, taking out a mortgage to buy a home or borrowing money to start a business can be considered good debt, as these investments often increase in value over time.

Potential for Reduced Credit Score

While it may seem counterintuitive, having no debt can actually hurt your credit score in some cases. Credit scoring models like to see some level of debt management, so a history of well-managed debt can be beneficial. If you have no debt – and have never had debt – you’ll have no credit history. This can make it harder to rent an apartment or even get good car insurance rates.

Risk of Overly Conservative Financial Practices

Living a debt free life can sometimes result in overly conservative financial practices. Avoiding all debt means you might miss out on investment or business opportunities that require upfront capital.

Debt-Free Living vs. Debt Leveraging

Both debt-free living and leveraging debt as a financial tool have their merits. It’s all about understanding your financial goals and your tolerance for risk. If the thought of any debt causes stress, then the path to a debt-free lifestyle is likely right for you. B

ut if you’re comfortable with some level of risk, and understand the potential for greater returns, then responsibly leveraging debt could be a viable strategy.

5 Tips to Achieve and Maintain a Debt-Free Life

If you decide a debt-free lifestyle aligns with your financial goals, your next step is to develop a detailed strategy to get there. Here’s a closer look at some of the key elements of a plan to achieve and maintain a life free from debt:

1. Create a Realistic Budget

One of the cornerstones of any successful financial plan is a realistic budget. This outlines not only your living expenses, but also your debt payments, savings, and discretionary spending. A budget gives you a clear snapshot of exactly where your money goes each month, enabling you to make informed decisions about your spending.

The first step in creating a budget is understanding your monthly expenses. This includes everything from rent or mortgage payments, utility bills, groceries, and transportation costs to smaller expenses like subscriptions, leisure activities, and dining out.

The second part of your budget will be dedicated to any debt payments you have. This could be credit card debt, personal loans, or car payment. Your goal should be to manage these payments while striving to save money and pay down your debt more quickly.

2. Build an Emergency Fund

Life is full of surprises, and not all of them are pleasant. That’s why an emergency fund is a critical component of any personal finance strategy. An emergency fund is money you’ve set aside to cover any unexpected expenses that might arise, such as car repairs, medical bills, or job loss.

By having this safety net in place, you avoid the need to borrow money in an emergency. How much you need to save will depend on your individual circumstances, but a good rule of thumb is to aim for three to six months’ worth of living expenses.

3. Increase Your Income

Sometimes, cutting expenses isn’t enough to move the needle towards your goal of living a debt-free life. You may need to increase your income to make significant progress.

There are numerous ways to bring in extra money. You could seek a higher-paying job, take on freelance work or start a side hustle, or invest in opportunities that yield a return. The key is to use this additional income wisely, funneling it towards your debt payments or savings.

4. Keep Your Credit Utilization Low

Your credit utilization rate, the ratio of your outstanding credit card balances to your credit limits, can significantly impact your credit score. A lower credit utilization rate (generally below 30%) can lead to a higher credit score.

This is beneficial because a higher credit score can make it easier to secure low-interest loans in the future, should you need to borrow. Maintaining low balances on your credit cards, or paying them off in full each month, can help keep your credit utilization rate low.

5. Be Mindful About Taking On New Debt

Finally, as you work towards your debt-free goals, it’s important to be mindful about taking on new debt. While not all debt is bad, taking on debt should not be done lightly. Before borrowing, take the time to thoroughly consider the potential implications.

Ask yourself if the debt is necessary, and whether it aligns with your financial goals. For example, a mortgage to purchase a home or a loan to start a business could be considered “good” debt, as these are likely to increase your net worth over time. However, high interest debt from credit cards or personal loans for unnecessary purchases can hinder your financial progress.

Remember, achieving and maintaining a debt-free life is a journey, not a destination. It requires discipline, planning, and a commitment to your financial goals. But with these strategies in hand, you’ll be well-equipped to navigate your way to financial freedom.

Conclusion

Living a debt-free life can bring numerous benefits, including financial stability, increased flexibility, and a significant sense of accomplishment. But it’s important to remember that not all debt is detrimental, and in some cases, you can leverage debt to reach your financial goals more quickly.

Ultimately, the decision to live debt free or to leverage debt should align with your individual financial situation and long-term goals. By keeping these considerations in mind, you can embrace debt free living in a way that suits your lifestyle and helps you achieve your financial goals.

Remember, personal finance isn’t about following a one-size-fits-all approach. It’s about understanding your financial needs, your tolerance for risk, and your aspirations. Only then can you chart a path that leads to your version of financial freedom, whether that means zero debt, well-managed debt, or somewhere in between.

Source: crediful.com

Apache is functioning normally

Apache is functioning normally

Advertiser Disclosure: Credit.com has partnered with CardRatings for our coverage of credit card products. Credit.com and CardRatings may receive a commission from card issuers.

Editorial Disclosure:Opinions, reviews, analyses & recommendations are the author’s alone, and have not been reviewed, endorsed or approved by any of these entities.

Snapshot: You can earn 1.5% cash back on all purchases with this card. Since there’s no annual fee, if you keep up with your statement payments to avoid interest, that’s easy money in the bank.

Ready to learn how to apply?

Basic Features

  • Ongoing APR: reg_apr,reg_apr_type depending on creditworthiness
  • Annual fee: annual_fees
  • Credit needed: Scores in the credit_score_needed range

Additional Details

  • 1.5% cash back on every purchase
  • Up to 6 months of complimentary Uber One membership through 11/14/2024*
  • Maximize travel benefits with unlimited 5% cash back on hotels and rental cars when booked through Capital One Travel
  • Rewards never expire as long as the account remains open
  • You can now choose to redeem your rewards with Amazon purchases
  • No foreign transaction fees

Full Review of Capital One Quicksilver Cash Rewards for Good Credit

  • What You’ll Like About It
  • Drawbacks
  • Is it Worth It?
  • FAQ

    • Full Review of Capital One Quicksilver Cash Rewards for Good Credit

    This card is perfect if you’re looking for a no-hassle option. Basically, if you’re looking to earn cash back on purchases, but don’t want to gamify your purchasing to maximize certain cash back categories. The answer is simple: 1.5% cash back on everything.

    As far as cash back credit cards go, this card is a solid option. 1.5% cash back isn’t as high as other cards, but it’s decent. The flat rate across all purchases removes some of the complexity from using it. The pleasant exception to this is a hefty 5% cash back on certain travel purchases booked through Capital One Travel. A annual_fees annual fee is a nice bonus.

    One thing to consider is that you’re going to need credit_score_needed credit to qualify for this card, which typically means a credit score of 700+.

    See Rates and Fees

    What You’ll Like About It

    No Annual Fee

    Rewards cards often do come with fees, so it’s nice to know this one doesn’t. That means all the cash back you earn on purchases is pure profit as long as you pay your credit card statement off every month.

    1.5% on All Purchases

    You don’t have to figure out confusing category rotations or remember whether this card offers rewards at the pump or in the grocery store. It’s easy to earn cash back because you get 1.5% back every time you swipe.

    Ready to start earning cash back on your purchases?

    Flexible Cash Back Redemption Options

    There are many ways to redeem your rewards. (It also seems to be something that Capital One is constantly expanding, which makes it a great option for cash back cards in general). You can get your cash back (literally) or apply it as a statement credit. You can also apply it directly to a recent purchase, which is a handy personal accounting option that makes it easier to use your cash back as a reward or to cover fun splurges.

    See Rates and Fees

    The Drawbacks

    Relatively High APR

    At reg_apr,reg_apr_type, the APR on this card may be a bit high for some people. 30% is competitive for rewards cards, but if you are looking for a lower APR there are other options. (Depending on your credit and what you qualify for).

    No Intro APR or Balance Transfer Offer

    This card doesn’t currently offer any type of introductory APR for balance transfers or purchases, which means you can’t rack up cash back with a large purchase and then break up your payments interest-free over a year or so.

    Learn more about applying for the Capital One Quicksilver Cash Rewards Card!

    See Rates and Fees

    Is It Worth It?

    If you plan to use this card only on purchases you have the cash to cover and pay off the balance every billing cycle, it can be a good card to earn cash back with.  

    Frequently Asked Questions

    What Are the Credit Limits for the Capital One Quicksilver Cash Rewards Card?

    Capital One doesn’t list a minimum or maximum limit for their card. Your credit limit is determined by your credit history and ability to pay, so it depends on your income and other factors. Individuals with better credit, higher incomes or less existing debt may be more likely to get approved at the higher limits. A good credit history of paying balances over time may also lead to higher credit limit authorization.

    How Soon Can I Increase My Credit Limit After Being Approved for a Capital One Quicksilver Cash Rewards Card?

    You’ll need time to demonstrate responsible management of your account or improve your credit score and income situation. It’s typically a good idea to wait at least 6 months before asking for a credit increase. Credit card companies are typically unlikely to approve one before that point. 

    How Good is a Capital One Quicksilver Cash Rewards Card for Building Credit?

    This isn’t typically a card that you’d use to build credit if you have bad, poor or fair credit. That’s because you need good credit to get approved for it in the first place. However, responsible management of the card can help you continue to build your credit in the future. 

    See Rates and Fees

    Advertiser Disclosure: Credit.com has partnered with CardRatings for our coverage of credit card products. Credit.com and CardRatings may receive a commission from card issuers.

    Source: credit.com