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Forbes
03-07-2025
- Business
- Forbes
This Travel Card Is Outsmarting the Competition—Here's Why I Keep It In My Wallet
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. When it comes to selecting the best travel rewards credit card , it's easy to get overwhelmed by the options available. Two of the top contenders in recent years, however, have been the Capital One Venture X Rewards Credit Card and the Chase Sapphire Reserve® card, which charge annual fees about as large as their lofty reputations. After all, you get what you pay for. With recent changes to the Chase Sapphire Reserve , including a significant overhaul to its benefits structure and a steep hike of its annual fee to $795 (as of June 23, 2025), the Venture X card has eked out a glorious win over the CSR as the superior travel card in my eyes. Here's why. As the cardholder of over a dozen credit cards and counting, knowing that the Venture X sits in my wallet front and center gives me a sense of security and satisfaction. And that's because I sleep well at night knowing that even before counting the rewards that I've racked up, the card more than pays for itself. While an annual fee of $395 (rates & fees) is difficult to swallow every year, the feeling becomes an afterthought thanks to the beneficial combination of its $300 annual travel credit for bookings through Capital One Travel and the 10,000 bonus miles each account anniversary (worth $100), which has me coming out ahead before factoring in any other perks. Here are some of the other perks of the Venture X: Welcome bonus: 75,000 bonus miles after spending $4,000 on purchases within the first three months of account opening $300 annual travel credit (must be used through the Capital One Travel portal) Access to Capital One lounges and Priority Pass™ lounges after enrollment $120 Global Entry or TSA PreCheck application fee credit Hertz President's Circle status Rental car protection Trip delay insurance Trip cancellation and interruption insurance Lost luggage reimbursement Travel accident insurance Up to four authorized users at no additional cost No foreign transaction fees In my first year of holding the Venture X, I was able to maximize my earnings between the welcome bonus and strong earning structure on flights and hotels. In fact, I was able to earn more than $2,000 worth of Capital One miles . The card's access to lounges proved to be extremely valuable, offering a space where I could rest and grab a free meal before a flight. The additional range of insurance saved me hundreds on primary insurance for car rentals and helped reimburse me when an airline lost one of my bags on a trip. All in all, the Venture X offers up-front value with little extra effort required. For that reason, it's a staple in my wallet, and even with changes to other premium travel credit cards, it's still my go-to. In June, Chase unveiled sweeping changes to its premium travel card, the Sapphire Reserve. More than just a bump of the annual fee to $795, making it one of the most expensive credit cards available on the market, the card's revamp ushered in a slew of changes that aren't necessarily for the better. The card offers the following: Welcome bonus: 100,000 bonus points, plus a $500 Chase Travel℠ promo credit after spending $5,000 on purchases in the first three months from account opening Access to Chase Sapphire lounges and Priority Pass™ lounges $120 Global Entry, Nexus or TSA PreCheck application fee credit Rental car insurance Trip cancellation and interruption insurance Trip delay insurance Lost luggage reimbursement Roadside assistance $0 foreign transaction fee Previously, the Chase Travel portal provided the bank a formidable edge in point redemptions, as Ultimate Rewards® points redeemed by Sapphire Reserve cardholders were worth a flat rate of 1.5 cents apiece. Unfortunately, Chase's move away from flat-rate redemptions for Sapphire Reserve cardholders has taken that advantage away. In its stead, Chase is offering a new redemption system called Points Boost , where Sapphire Reserve cardholders can redeem points at a value of up to 2 cents apiece on select flights and hotel stays. However, getting maximum value is tricky, and on bookings not eligible for Points Boost, the redemption value drops to 1 cent per point. Find the best travel credit card for your travel needs. On top of the new changes, the Reserve includes other benefits that can make the card worthwhile, depending on the person and their day-to-day spending. Are you interested in a Peloton membership? Do you eat out a lot? Do you regularly buy concert tickets through StubHub? These are all conditions as to whether or not the card would be worth the cost for you and whether, most importantly, they're valuable to you in a travel card. Additional Sapphire Reserve perks: Up to $300 in credit at restaurants in the Sapphire Reserve Exclusives Table program in the form of two biannual $150 credits Up to $300 statement credit for StubHub, in the form of two biannual $150 credits Up to $250 toward Apple TV+ and Apple Music subscriptions Up to $120 in credit towards a Peloton membership $120 in Lyft credits ($10 a month) $300 annually in monthly DoorDash promos and a complimentary DashPass membership worth $120 annually Complimentary IHG One Rewards Platinum Elite Status through December 31, 2027 Up to $500 in credit for The Edit℠, Chase's luxury hotel portal, in the form of two biannual $250 credits Fee of $195 per year for each additional user added to the card If you spend over $75,000 on the card in a year, you can unlock the following perks: Southwest Airline benefits: Receive $500 Southwest credit and Southwest A-List status when booked through Chase IHG One Rewards Diamond Elite Status $250 in credit for Chase's shopping platform, The Shops In my eyes, these new changes take the card from what was previously a strong travel option to a shell of its former glory. Despite the expensive $795 price tag, the travel benefits offered by the more affordable Venture X beat Chase's offerings, whose additional perks create a complicated web of research and bookkeeping for you to keep track of. With the Chase Sapphire Reserve, users with high spending thresholds may earn more perks, but the Venture X card has a much lower threshold, making it accessible for all travelers—from those who take one vacation a year to seasoned digital nomads. I like that you don't need to worry about hitting high spending targets in specific categories to earn premium rewards with the Venture X. Conversely, for a luxury card, the Chase Sapphire Reserve is asking too much of people who don't want to dedicate hours to memorizing card benefits. To me, the Venture X rewards a more straightforward approach, which makes it an ideal card for people who want premium perks without the need to chase bonus categories. It offers a competitive welcome bonus, lower annual fee, lucrative perks, travel protections and a solid customer service team. What more can you ask for? For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply. Upon enrollment, accessible through the Capital One website or mobile app, eligible cardholders will remain at that status level through the duration of the offer. Please note, enrolling through the normal Hertz Gold Plus Rewards enrollment process (e.g. at will not automatically detect a cardholder as being eligible for the program and cardholders will not be automatically upgraded to the applicable status tier. Additional terms apply.
Yahoo
17-06-2025
- Business
- Yahoo
What is a personal line of credit and how does it work?
A personal line of credit is a revolving account that works like a credit card. Personal lines of credit are unsecured with variable rates that are typically much lower than credit card interest rates. You can take out a line of credit for business purchases or for personal use. If you're trying to avoid the high rates that come with credit cards, but retain the flexibility of revolving credit, a personal line of credit is worth considering. A personal line of credit can help you cover unexpected expenses, fund major projects or fill temporary cash flow gaps. However, unlike a credit card, the account's funds can only be used and reused for a set time called a draw period. When it ends, you're no longer allowed to make withdrawals and will need to reapply to keep the personal line of credit open. A personal line of credit, or PLOC, is an unsecured revolving account with a variable interest rate. The monthly payment is based on the amount you use, and you can use and reuse it as needed and pay back with interest, much like a credit card. PLOCs generally have lower interest rates than credit cards, so they're typically cheaper for big cash advances. They're also a helpful tool for managing daily cash flow if you have irregular income from self-employment or a seasonal business. If you have ongoing expenses, like medical bills or wedding planning, a PLOC's revolving nature can give you flexibility to spread the payments. You'll find a lot of similarities between credit cards and personal lines of credit. The line is approved based on a review of your credit score and income. Once you're approved, you can tap the money on a mobile app or by withdrawing funds at a local branch. The monthly payment and interest charges are only accrued on the amount you use. For example, if you get a $10,000 personal line of credit but only need to use $1,000, your payment is only based on the balance you carry. One difference from credit cards is the draw period, which only gives you two to five years to keep borrowing and repaying up to the limit. At the end of that period, you'd have to re-apply or pay the balance in full. While they're less common than personal loans, some financial institutions, including banks and credit unions, offer PLOCs. You'll need a good credit score and a solid credit history to qualify for a personal line of credit. 'You want to have the best credit you can have,' Dave Sullivan, credit expert with People Driven Credit Union, said. 'If you have any revolving lines of credit, it's best to pay those down as low as you can prior to applying, and make sure that info has been reported to the credit bureaus.' Check with multiple lenders to see who will give you the best terms. You will want to consider interest rates, repayment terms and the length of the draw period. The application process for a PLOC is much the same as applying for any loan, and it can often be completed online. Once you've decided on a lender and the credit limit you're seeking, you'll need to provide documentation to verify your identity and income. Personal lines of credit give you access to credit as you need it. You may receive a credit card or be able to access funds by transferring them to your bank account online. Banks and credit unions may allow you to transfer funds from your line of credit directly into your checking or savings account. You can use as much or as little of the account's maximum amount at once as you wish. Just make sure you keep track of when the draw period ends — you won't be able to access funds once it expires. Your payment will vary based on the amount of credit you've used. It's important to pay attention to how the monthly payment changes each month to avoid accidently underpaying the amount due. You may not see charges or payments on the account depending on when you access the funds and when your payment is due. The structure of repayment can vary by lender. Common structures include: Draw and repayment periods: This is the most common type of repayment used for a PLOC, as described above. Typically, monthly payments are required during the repayment period. Balloon payments: This type of repayment requires that the full balance is due at the end of the draw period. Demand line of credit: While not very common, some lenders may set up a PLOC as a demand line of credit. This means the lender has the right to ask for full repayment at any time. If you plan to close your account out after the draw period ends, find out if there are any fees for doing so. Personal lines of credit are temporary. You'll have a finite period during which you may withdraw funds, called a draw period. If you still have an unpaid balance when the draw period ends, you'll enter the repayment period. When setting up your personal line of credit, ensure you understand your lender's repayment terms and make a plan that best suits your finances. If you're not sure that a PLOC is for you, you have several other options to choose from. Some are revolving, but will be secured by your home (like a home equity line of credit). Others are installment loans like personal and home equity loans, with a fixed payment for a set time period. Personal loans and personal lines of credit are completely different. A personal loan is a type of installment loan. You receive all the funds at once and make payments on the full amount you borrow. It comes with a fixed rate, payment and is repaid typically over one to seven years. It's a good option if you need all the money at once for debt consolidation, emergencies or even to buy an old car that auto lenders won't finance. A personal line of credit may give you a lower monthly payment if you don't want or need to use all of the funds immediately. However, because the rate is variable, the payment is more unstable. Making the minimum payment due could keep you in debt longer than if you had a set payment with a personal loan. The decision between a personal line of credit and a credit card comes down to rate, qualifying requirements and flexibility. There are credit cards for all types of credit types, whereas PLOCs are usually reserved for higher credit score borrowers. That typically means rates are higher on credit cards versus personal lines of credit. You also won't have a draw period with a credit card. The account will retain its revolving credit feature for as long as it's open. However, that makes it easier to carry a balance longer than you would with a PLOC since you have a limited draw period. A home equity loan is a fixed-rate installment loan with terms ranging between 15 and 30 years and rates that are typically much lower than PLOCs. Interest is tax-deductible if you use the funds for home improvement. However, because a home equity loan is secured by your home, you risk losing your home if you default. HELOCs and personal lines of credit give you the same flexibility of using and repaying the balance as you wish. A HELOC also features a draw period, however, it's often much longer, extending out to 10 years at many lenders. It has the same tax benefits as a home equity loan if you use the funds to renovate your home. It also has the same risk of losing your home to foreclosure if you can't repay it since it's secured. If a personal loan is the right choice for your borrowing needs, consider Bankrate's top picks for the best rates. Learn more Access to funds as needed Overdraft protection on some accounts Lower rates than credit cards Payment is only based on credit used Variable rates may lead to a higher payment Limited draw period compared to credit cards, which have no draw period Higher rates than HELOCs Typically need high credit scores to qualify Like a credit card, a personal line of credit can be used on a revolving basis as needed. Borrowing money this way has many advantages, including providing quick access to cash and offering more competitive rates than credit cards. But you'll need a solid credit history to qualify and there's a risk of overborrowing if you don't have a history of using credit responsibly. Be sure to shop around and find the best interest rate and terms for your financial needs. What happens if I never use my line of credit? You only pay interest on the funds you pull from a personal line of credit. Still, you could be on the hook for administrative fees, even if you decide not to use the line while it is open. Does a personal line of credit affect my credit score? Applying for a personal line of credit requires a hard credit pull that will dip your score by a few points, but the impact is typically short-lived. As you borrow against the credit line, your score may fall since your credit utilization ratio will rise. However, if you repay the debt as agreed and keep the outstanding balance at or below 30 percent of the credit limit, your credit score can rise over time. Is it easier to get a loan or a line of credit? You can get a personal loan with less-than-perfect credit, but it may be a bit more challenging to qualify for a line of credit if your score is on the lower end. In fact, most lenders require good or excellent credit to qualify for a PLOC. A limited credit history can also be a deal-breaker. 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Travel + Leisure
17-06-2025
- Business
- Travel + Leisure
One of the Best Credit Cards for Travel Rewards Is Getting a Refresh—With More Perks and a Higher Annual Fee
After nearly a decade, one of the best travel rewards credit cards is getting a refresh. The Chase Sapphire Reserve will relaunch on June 23, with a bolder program that's rich with benefits—and a higher annual fee to go along with it. 'It's been almost 10 years since Sapphire first launched, and we really think we tapped into something special in the premium card space when it did,' said Chris Reagan, president of branded cards at Chase, during a media event in New York on June 9. 'But we know that the industry has changed a lot since then.' That, as well as extensive customer research from the brand, has led Chase to rethink the premium card, which will now come at an annual fee of $795, up from $550—a 44.5 percent increase for the consumer. 'We're bringing elevated benefits and greater value in the areas that our current members are most passionate about,' said Sam Palmer, general manager of Chase Sapphire. The new version of the Chase Sapphire Reserve will deliver 'over $2,700 in card member value,' Palmer said. This includes a $300 credit for travel expenses and $500 to spend on hotels that are part of Chase's hotels collection, The Edit. Other perks include a free Apple TV+ subscription, a $300 DoorDash credit, and a $300 credit for tickets purchased through StubHub. One quintessential bonus, a $120 credit for things like Global Entry and TSA Precheck, remains a core feature of the card. Meanwhile, Chase has added other experiential perks. One example, said Palmer, is 'exclusive access to prime-time reservations at some of our favorite restaurants across the country.' The chosen restaurants—grouped together in the so-called Reserve Exclusive Tables program—are selected by The Infatuation, in partnership with OpenTable. This collection of 300+ restaurants, which card holders will get a $300 credit to dine at, includes in-demand spots such as Canlis, in Seattle, and Estela, in New York. Another perk is automatic enrollment in IHG One Rewards at the platinum elite level; this would otherwise require spending 40 nights at IHG properties. In addition to statement credits and perks, the Chase Sapphire Reserve is a powerful points-earning card that allows for flexible redemptions. Put another way, Chase points can be cashed in at multiple hotels and airlines rather than with one particular brand. With the relaunch, the company has tweaked the earning structure for the card. Here's an overview of how the new card will work, according to Chase: 8x points on purchases made through Chase Travel 4x on flights and hotels booked directly 3x on dining 5x on 'eligible' Lyft rides, including Standard, Extra Comfort, XL, Black, or Black SUV rides 1x on other, everyday spending Chase has also introduced what it calls Points Boost, a 'new points redemption accelerator program' that replaces a long-standing benefit that helped define the Sapphire Reserve. Instead of earning 1.5x on all bookings, now users will see dynamic discounts on reservations. To illustrate how it works, Palmer gave an example: Let's say you were booking an Emirates flight from New York to Milan, in business class, for this summer. If such a flight were offered at 350,000 Ultimate Rewards points, a card holder might find it instead offered at approximately half off, or 177,000 points, as part of the Points Boost program. In other words, Chase has switched from giving an earnings bonus on purchases with a straightforward 1.5x earning structure, to discounting on redemptions. Plus, Chase has made it harder to tell if and when such Points Boost opportunities will arise. Lounge access will remain another key feature of the new card. It grants 'access to the Chase Sapphire Lounge by The Club network of airport lounges and entry to over 1,300 lounges with Priority Pass Select, and more than 20 select Air Canada Maple Leaf Lounges and Air Canada Cafés when traveling on a Star Alliance airline,' according to the company. That includes some of the world's most impressive lounges, such as the fab, two-story lounge at New York's LaGuardia Airport.. 'You can visit any of our lounges or the Priority Pass lounges and bring up to two guests each time at no cost,' Palmer pointed out. Card holders can also tap into the expertise of Chase's growing network of Reserve Travel Designers, who can assist with trip planning as well as support along the way. There's one other element to the refresh that will appeal to small-business owners and sole proprietors: The first-ever Sapphire business card will also launch on June 23. The new Sapphire Reserve for Business will have many of the same features and perks as the flagship card, with a few add-ons aimed for corporate users, such as credits for ZipRecruiter fees and Google Workspace charges, according to Jenny Shum, general manager, Chase small business card. Both of the new Chase cards will be available for purchase next week, on June 23. While executives hinted that rich sign-up bonuses would be a part of the card relaunch, specifics on just how many points new cardholders may be able to score have not yet been announced.

News.com.au
04-06-2025
- Business
- News.com.au
Expenses that affect your borrowing power for a home loan
Want to know how much you can borrow? While income and deposit size are crucial factors in any home loan application, there are also a range of 'liabilities' that lenders take into account when assessing how much they will lend to you. COSTS THAT DRAIN YOUR BUCKET Mortgage broker and founder of Two Red Shoes Rebecca Jarrett-Dalton says it's helpful to think of it like 'a big bucket of money.' Not only do banks deduct tax as well as regular living expenses, generally using the HEM index, they also consider a whole range of other additional expenses, or liabilities, depending on your lifestyle and financial situation. These include credit card limits, any kind of repayment, including car loans and personal loans, HECS debts, private health and life insurance costs, private school fees, and in some cases, Strata fees. 'Whatever is left is broken down into a monthly figure,' she says. 'Everything that is not an average living expense has an impact.' And the impact can be quite substantial. 'Every $10,000 of credit card limit is about a $50,000 reduction in your borrowing capacity,' she says, explaining that any type of repayment could shrivel your borrowing power. 'If we think about every kind of repayment, a credit card they take 3.8 per cent, so $10,000 is $380.' 'Every $380 worth of repayments, whether they be loan repayments, whether they be HECS repayments, whatever they are, is a $50,000 additional reduction. 'So if you think of an average car loan sitting close to $1000, that's three times – that's $150,000.' Novated leases are even more costly, she says. 'The banks can't separate out what is the finance component and what are the general running costs so they have a huge impact on your borrowing capacity,' she says. 'Essentially in your average living expenses they take out an average running cost of the vehicle as well as it coming out in the actual repayment.' If Strata costs aren't included in the HEM index used by the bank, they are generally assessed using the $380 worth of repayments method, meaning 'if your Strata is $1000 a month it's about a $120,000-$130,000 reduction.' WAYS TO HELP YOUR APPLICATION You may not be able to compromise on costs like health insurance, Strata or private school fees, but you can improve your borrowing capacity by paying down existing debts. Canstar's data insights director Sally Tindall says reducing credit card limits also goes a long way since banks 'have to assume the worst – that you've maxed out your card' when they assess your expenses. 'Credit cards have the capacity to burn a giant hole in your maximum borrowing capacity, even if you don't owe a single cent on the card,' she says. Tindall says aiming for a lower rate can also help since lenders add a three per cent buffer during the assessment process. 'For example, someone applying for a mortgage, on the average wage as a single borrower on a rate of 5.50 per cent instead of 6 per cent, could see their maximum borrowing capacity rise by around $24,000,' she says. But she says it's important to leave some financial breathing room when taking on a mortgage. 'Just because your bank says it's OK to borrow up to a certain amount, this doesn't automatically mean you should,' she says. 'A home loan can be for up to 30 years – that's a long time to be saddled with debt that you have trouble managing day-to-day.' APPLICATION TIPS The best way to improve your borrowing capacity is to increase your income and pay down your debts – just remember that a mortgage is a big commitment and borrowing to your maximum limit is never recommended. Canstar's data insights director Sally Tindall shares some ways to strengthen your home loan application. 1. Increase your income – even a $5000 pay rise on the average wage could improve a single person's borrowing capacity by more than $30,000 2. Shop for a lower rate – a single person applying with an average wage on a rate of 5.50 per cent instead of 6 per cent could see their maximum borrowing capacity rise by about $24,000 3. Save more – a larger deposit could mean you'll need to borrow less and potentially avoid LMI 4. Cut up credit cards – cancel excess credit cards and reduce excessive limits remembering that a $10,000 limit will reduce your borrowing power by about $50,000


Washington Post
30-05-2025
- Business
- Washington Post
5 tips for a fun summer without bag fees, freeloaders and timeshare traps
Picture this: Your tan lines have faded, the tchotchkes you purchased have already gathered dust, but one thing sticks around after vacation — a credit card balance that hurts like a bad sunburn. That's the reality when summer fun morphs into reckless spending on the road.