A: There are number of misconceptions floating around out there about rental car insurance credit card coverage. In fact, from my experience most don’t understand how it works exactly. I will go over the details but always check with your credit card company before renting to confirm… as we all know “terms and conditions are subject to change.”

How it works…
First of all it’s important to note that in order to qualify, you will have to decline the rental car company’s insurance and pay for the rental in full using your applicable credit card. This credit card car rental insurance is secondary; meaning that it only pays out what your primary auto insurance doesn’t cover. Usually that means they will pay the deductible on your personal car insurance. What if you don’t have regular car insurance? Then typically, but not always, the credit card coverage will kick in right away for the very first dollar in damage.

What’s covered…
Coverage varies by card (which we will discuss more in a moment) but typically it only applies to damage resulting from collision. That means if you get in an accident, it’s probably covered. But if someone keys your car, you might be stuck paying for it (if you don’t have primary insurance which covers it).

Vehicle exclusions…
If you’re renting a Taurus or a Camry, then you should be okay. But anything other than your run-of-the-mill passenger car and you may not be covered. For example, pickup trucks are never covered. Exotic and luxury cars, antique vehicles, full size vans, motorcycles, and some SUVs are not covered. So to play it safe, rent a basic car and always double check with your card issuer to make sure.

Let’s take a look at typical credit card car rental insurance coverage. Please note this information may be outdated and incorrect, so you will definitely need to check with your credit card car rental insurance policy before renting to know for sure:

American Express
Cards: all American Express credit cards and charge cards
Duration: up to 30 days
Amount of Coverage: varies by card, the charge cards (Gold, Platinum, Centurion) seem to offer the most
Excluded Countries: Jamaica, New Zealand, Australia, Israel, Ireland, Italy. If you have a small business American Express, coverage is only applicable for rentals in the United States.

Discover
Cards: all Discover credit cards except for student versions
Duration: up to 31 days
Amount of Coverage: up to $25,000
Excluded Countries: none, as long as rental car company in that country allowed you to pay for the rental in full using your Discover card

Visa
Cards: all Visa credit cards included
Duration: up to 15 days in your country, up to 31 days when renting outside of your home country
Amount of Coverage: up to the actual cash value of most rental eligible cars
Excluded Countries: Ireland, Northern Ireland, Israel, Jamaica

MasterCard
Cards: only included on MasterCard Gold, Platinum, World, World Elite credit cards
Duration: 15 days for Gold and Platinum, 31 days on World and World Elite
Amount of Coverage: whichever is less: $50,000 per accident, current market value, actual repair costs
Excluded Countries: none for MasterCard World and World Elite, for Gold and Platinum the exclusions are Ireland, Israel, Jamaica, and where it is not permitted by law.

The fine print…
As you can imagine, all of these credit card car rental insurance policies come with loads of fine print. Be on the lookout for fees which are not covered. For example, most will cover “reasonable towing” fees, however loss-of-use fees (while the car is being repaired or replaced) may not be covered if the rental company doesn’t provide your credit card company with proper documentation. “Administrative fees” with MasterCard are not covered. Discover cards don’t cover any of these fees whatsoever.

Other exclusions…
If you didn’t pay for the rental car in full with the credit card, you definitely won’t be covered. Driving while you are under the influence will most likely invalidate your credit card car rental insurance also. Vandalism is rarely ever covered and theft of vehicle isn’t always included. Be sure and check to see which driver(s) will be covered. There may be other exclusions depending on the issuer.

Does it really protect you?
As you can see, there are quite a few loopholes and fine print which create gaps in coverage. This is why it’s so important to check with your rental car credit card insurance policy (and not rely on this article) to determine the exact coverage you have.

My personal recommendation
If you don’t have comprehensive insurance on your own car, then I would definitely be skeptical of these secondary insurance coverage policies that credit cards offer. Unfortunately rental companies charge anywhere from $20 to $25 (plus tax!) for each day of insurance coverage if you buy it from them.

However if you have an American Express, you can buy optional primary insurance for just $24.95 per rental from AmEx directly. That basically means if you’re renting a car for longer than a day, it’s cheaper to get it through your AmEx card. The other added benefit is that it is for primary coverage (not secondary) so if you back up into a concrete post, you won’t have to worry about the vehicle repair claim negatively impacting your regular insurance history, since it won’t be reported to them (as long as the cost of the claim doesn’t exceed your AmEx rental coverage). Don’t have an AmEx card to do this? Then I recommend you check out the highly rewarding no annual fee AmEx Blue Sky card.

Note: This site has an advertising relationship with American Express.

Actually, it’s not a scam. It’s a completely free way program where you have the opportunity to get some amazing bargains. Here are some Daily Wish tips to maximize your luck…

What is the American Express Daily Wish
The Daily Wish happens every Tuesday, Wednesday, and Thursday. In a nutshell, the Daily Wish allows cardmembers to buy things at incredible prices. But what’s the catch? Well, there is only so many of each item available at the special price. They’re on a first come, first serve basis. For example, tomorrow they are offering $200 Best Buy gift cards for only a $100! However, there are only 25 available. Once they’re gone, that’s it.

What’s available through the Daily Wish?
Pretty much anything you can think of. For example, in addition to the gift card, the next few sessions include digital cameras, laptops, NordicTracks, TVs, and bikes. However it’s not just retail merchandise they offer. Throughout the years, especially during the holidays, American Express has been known to offer some pretty incredible bargains. For example, last Christmas they were offering brand new BMWs at half price! They also feature vacation packages and other unique opportunities.

How to win American Express Daily Wish list?
Well, they don’t tell you the exact times the items go on sale. They only tell you the days. So if you have a job where you can fool around on the computer all day, then check the American Express Daily Wish page frequently You never know… that’s three days per week you can try to win.

However during certain periods, American Express will actually tell you when the Daily Wish list items will be made available. For example, during Christmas they will have a full schedule of which items are offered at which times for each day. Some items were even offered several times throughout the day, i.e. 9 am, 11 am, 3 pm, and 6 pm PST. So when they tell you the time, make sure you’re on a lightening fast internet connection and keep refreshing the page in the minutes and seconds leading up to the designated time.

How to participate?
It is completely free to participate in the American Express Daily Wish program. Of course you will have to pay for the designated items at the discounted price if you want it, but other than that, there are no costs involved. However, you do need to be an American Express cardmember to participate. Don’t have one yet? Then check out their no annual fee American Express Blue Cash that gives you 5% cash back!

The alleged events actually occurred back in January, but they’re just coming to light now, thanks to a recently unsealed search warrant affidavit.

New York City resident Florin Necula and his accomplices are accused of running a card skimming operation involving local ATMs. Allegedly, they rigged the ATMs with credit card readers; when a customer inserted their card, the numbers would be recorded. Necula was apprehended by Secret Service and awaiting integration at their district office. In view was evidence which Necula reportedly had on him at the time of arrest; a USB jump drive. According to court documents, he “grabbed” the jump drive and swallowed it!

After four days, the “evidence” had still not passed through his digestive tract, so doctors at a local hospital “removed the flash drive because they were concerned that Necula would be injured” if they didn’t. It’s unclear whether or not the contents of the drive are still intact since the drive was extracted from the suspect.

But I don’t know what’s dumber… the suspect swallowing the drive or that his defense attorney reportedly said “they didn’t have a right to take it from him” and might file a claim to suppress the evidence.

A: Thanks for your email Mike. With today’s economy, unfortunately bankruptcy has been almost inevitable for quite a few people in America. Whether it’s due to a job loss or catastrophic medical bills, it’s a very real scenario that most of us are susceptible to. So please don’t beat yourself up over it, because the odds are you were not at fault. So instead of dwelling on the past, try and focus on making a better future.

Are Credit Cards After Bankruptcy Possible?
So is there such thing as a best credit card after bankruptcy? Well even during a prosperous economy, lenders are extremely hesitant to do business with someone that has had a recent bankruptcy. In fact, some lenders like American Express are rumored to blacklist applicants altogether if their current credit report still shows a bankruptcy on it (however the bankruptcy is no longer being reported, it may be possible to apply). Anyway long story short is that it’s an uphill battle during good times, and an even greater battle during bad times. But credit cards after bankruptcy are possible if you play your cards right, literally

Secured vs. Unsecured
A secured credit card involves putting up collateral (typically cash) and you can then borrow against that amount. For example, you would deposit $500 with the issuer and that would allow you to charge up to $500 on the card. Down the road when you are ready to close the account you will get back your full deposit, assuming you don’t have a balance.

An unsecured credit card is what we typically think of as a normal credit card – something that allows you to make charges without any collateral/deposit. As you can imagine, almost any unsecured credit card application you fill out after a bankruptcy will almost certainly be declined. So that means the best credit card after bankruptcy will most likely be some sort of secured credit card… simply because that’s about the only thing you will be able to get approved for at first, regardless of whether you had a chapter 7, chapter 11, or chapter 13 bankruptcy.

Tips For When You Apply For a Secured Credit Card
There are a lot of shady companies out there that try and take advantage of people when they’re applying for credit cards after bankruptcy. So here are a couple tips to follow to make sure you don’t get ripped off:

Reasonable Fees & Rates: Because they know you have few options, some issuers will try and price gouge you with outrageously high fees that will cost you hundreds per year. Play close attention to the application fees, annual fees, and interest rates. Ideally, you want them as low as possible. Most charge monthly and/or annual fees and unfortunately you will need to be prepared to pay $100 to $150 over the course of your first year.

Credit Bureau Reporting: Did you know that all banks/lenders have to actually pay to report a customer’s credit history to the bureaus? Because of this, some unscrupulous secured credit cards will try and save a few bucks by not even reporting their customers to the bureaus… essentially making their cards useless! So please be sure when you apply for secured credit card that it actually will be reporting your account.

CreditCardForum.com Best Credit Card After Bankruptcy:
Currently we recommend the Platinum Zero from one of our sponsors, Applied Bank:

A: Thanks for your email Paul. Over the past fifteen or so years, we have seen a surge in the popularity (and variety) of cash back credit cards. This is no surprise – after all, we might as well get a little something back on the money we spend, right But can you really get as high as 3% cash back?

3% cash back on regular purchases?
There is no card on the market that gives a 3% rebate on all purchases. If credit cards did they, they would actually be losing money. You see the credit card transaction fee paid by the merchant hovers around 2% to 2.5% of the total amount. That amount is then split with the payment network (either Visa, MasterCard, Discover, American Express) and the bank the issues the card (Bank of America, Citi, Chase, etc).

So the bank that issues the card may only be getting around half of that transaction fee (around 1%). Since they are the ones that are responsible for creating rewards programs and paying them out, you can see why it would be impossible for them to pay out 3% cash back if they are only making around 1% on your purchase.

However, since Discover and American Express operate as both the bank that issues the card as well as the payment network, they have the ability to be more generous in their rewards (we’ll talk more about this in a moment).

3% cash back on certain categories?
Now you mentioned that you recall seeing cards with a 3% rebate in the past. What you must be referring to are those credit cards that give a higher reward for certain categories of spending. At the early part of last decade (around ‘00 to ‘05) there was more than one 3% cash back credit card available; they would give 3% (sometimes even 5%) on categories like gas, groceries, and drugstores.

Chase and Citi each had cards that did this. Although they were losing money on the 3%, they counted on the fact that those categories would only be a portion of your total spending – so they could make the money back on your regular purchases, as well as any interest you may be paying.

Those 3% cash back credit cards were great but unfortunately, since they were issued by Chase and Citi, it ended up not being profitable for them. Since they also had to pay Visa/MasterCard to process the transactions, what was left simply wasn’t enough to warrant paying out such high cash back. So those cards were either discontinued completely, or their reward structures were changed to give only average rebates instead.

How to get a 5% cash back credit card? (sponsored)
As mentioned, the secret it to get a Discover/AmEx card. Since they are both the issuer and payment processor, they make more money on each transaction – so they can afford to pay out high rewards. Between these two companies, by far the best one is the Discover More – there’s no annual fee and they give 5% cash back on over a dozen categories! Check out my Discover More review to learn more.

If you’re a regular reader of Credit Card Forum, then you already know we have talked about this extensively over the past few months, but here’s a quick summary of the highlights:

Interest Rates
From this day forward it will be much more difficult for credit card companies to raise interest rates on existing balances. This includes promotional interest rates.

Payments
Now your payments will be applied towards the balances with higher APRs first. Grace periods must be at least 21 days. Due dates can no longer fall on days the mail is not delivered

College Credit Cards
The days of free pizzas and T-shirts for college students that fill out a credit card application are over. If they’re under the age of 21, they either need to have a co-signer or a verifiable job to pay the bill themselves.

To find out all the details, you can use the search function on the right side of this page to see our previous posts.

Rep. Carolyn Maloney first introduced her bill for reform three years ago. Here’s a recent interview where she discussed how shocking it is that they were able to pass the reform without loopholes…

• Credit Card Reform Not Applicable
  The fact that we finally got credit card reform in this country is a major win for consumers. Although most banks have already became compliant over the past few months, next Monday the reform will officially go into effect. While this is great news for your personal cards, it’s bad news for old and new small business credit cards. Why? Because they aren’t included in the reform. That means they can still pull the ol’ interest rate bate ‘n switch on a small business credit card.
  
  
• Small Businesses Are Categorized As Riskier
  Thanks to all the economic turmoil over the past couple years, new small businesses are being scrutinized more than ever when it comes to giving them credit. If you are a sole proprietor or recently formed an LLC or corporation, it’s considered to be an especially risky proposition. However there’s good reason for creditors being skittish. Take Advanta… they were the second largest issuer of small business credit cards in the United States. However in 2009, a staggering 1 out of every 5 accounts were in default, now the company is bankrupt. All of the other small business creditors suffered brutal losses on these accounts too.

• Lower Credit Limits Than Personal Credit Cards
  Due to the extreme risk associated with small businesses, even if you can get approved, the odds are that the credit limit will be dismal. This is especially the case for new small business credit card applicants, since new companies are considered to be an even higher risk.

• Interest Rates Are Much Higher Than Before
  In the past when times were good, some small business credit cards actually had interest rates that were lower than what was available on most personal cards. Advanta (as discussed above) was notorious for doing this, however now that they’re bankrupt, that train has left the station. I have several American Express cards – one of them a small business card I’ve had several years – and even with my perfect credit and zero debt, my interest rate more than doubled on it! So it doesn’t matter how good your credit is… we are all being affected.

• You Will Need To Personally Guarantee The Credit
  Unless you have an established corporation or business entity that has successfully been using credit for years, you will have to make a personal guarantee to get a new small business credit card.  That means it will be under your Social Security number – just like a personal card is. However unlike a personal card, since it’s still technically a “business” credit card so you will not be protected by the recent credit card reform.

Are there any alternatives to new small business credit cards?
For now your best bet is to probably use a personal card. If the purchases are for your new small business, you can still write them off. What I decided to do was open a personal card and use it exclusively for my business, that way I don’t have to sort the transactions.

For this purpose, right now I highly recommend the AmEx Blue Sky card. Sure, I do advertise AmEx cards on this site, but take a look for yourself at this card and you’ll see why it’s an honest recommendation. Myself and others have had great luck with getting high credit limits and the rewards can be beat with it. There’s no annual fee either. For a special promo signup offer, check out my personal review of the American Express Blue Sky.

A: Thanks for your question Lynn. Most credit cards (almost all) will allow the account holder to add on authorized users. For those that choose to add a user, they usually add only one. However there are some credit cards that let you add multiple users if you so choose. But whether it’s one or five, is this a smart move? Let’s take a closer look…

Why Add An Authorized User?
Perhaps you are a parent who wants your son or daughter to have a card. Maybe you run a small business and would like one of your employees to have their own credit card for convenience. But most often, it seems to be that the new card is issued to their spouse – whether that be a husband or wife, boyfriend or girlfriend.

The Pros

• Adding a user is a convenient way to give someone access to your line of credit for purchases
• The places the authorized user spent money will be listed on your monthly statement
• It can be a way to help build credit for the authorized user, if their Social Security number is provided. In September 2007, FICO took away this “piggyback” privilege, but they reverted back in July 2008 and decided to count authorized users once again.

The Cons

• If there’s one piece of advice you get from this post, it is that adding an authorized user to a credit card is almost always a bad idea when it comes to boyfriends/girlfriends. I can’t even begin to tell you how many horror stories I’ve heard. They thought because they were together for years it would be okay to do. Lo and behold, the relationship would go sour and the authorized user would rake up excessive amounts in charges. Unfortunately, the main cardholder would have no recourse since the other person was authorized to do that. So essentially, you are handing someone a blank check when you do this.
• Parents like the idea that they can see where their kids are spending money, but the truth of the matter is that kids are crafty these days. They will buy a pack of smokes or bottle of booze at the grocery store so it looks like a food purchase. I’ve even heard of them going to a grocery or drugstore to buy a gift card (they usually offer them for dozens of different places). So the idea that the parent knows what their kid is buying is really an illusion.
• Authorized users also have a tendency to spend more  than if they were responsible for the charges, since it’s OPM (other people’s money).

Conclusion
Just make sure you think long and hard before adding anauthorized user to a credit card. If you want your kid that’s 18 years or older to have the benefits of a credit card, but without the temptation to overspend, then you may want to consider the new AmEx Zync Card. It’s a charge card, so the balance cannot be carried from month to month. It’s also geared towards college students and people trying to establish their credit. Check out our American Express Zync Card review to find out more.

A: First of all, thanks for your message and compliments about the site Molly. Whether someone is a college student, a retiree, or at any stage in-between… an American Express credit card is always considered to be the cream of the crop. In fact, this isn’t the first message I’ve received asking about American Express for students.

Unfortunately, the company has very strict lending practices, so not everyone qualifies. This is especially true if you’re younger and have limited or no credit history. An American Express student credit card is hard, but not impossible to get. I’ll share with you the secrets of how I pulled it off when I was only eighteen and the best way to go about it in today’s tightened lending environment.

Why an American Express?
While it’s true American Express is a very prestigious card to carry, there are actual real reasons why they’re the best. First of all, saying they have outstanding benefits would be an understatement. There’s so many perks that come with their cards, many of their cardholders don’t even know about all of them!

For example, did you know that with AmEx charge cards, your purchases are protected for 90 days against theft or accidental damage? That’s right- if you buy something and it gets damaged a month later, or stolen, you’re covered for up to $1,000 per incident for free? There are many more benefits like free extended warranties and more… so many useful benefits you won’t get with any other credit card.

How I got an American Express credit card at the age of eighteen?
As soon as I turned eighteen I applied for a crappy credit card from my bank – it was some entry level Visa card with a $400 limit. The only reason I opened it up was because I knew I had to start somewhere. I would use it for a few months to establish a credit record and then apply for something better as soon as I got the chance. So I would put a couple purchases on it each month (always paying off the balance in full) and did that for about seven months. Then it was time to start applying for something better…

At the time, there wasn’t an American Express student credit card specifically, but their Blue card had just came out. It was an entry level credit card. I though it was still a bit too early to get approved for that, but I decided to apply and give it a shot… much to my surprise not only was I approved, but I was also given a $2,000 credit limit! That’s not too shabby for an eighteen year old that wasn’t even a college student yet.

After the credit crisis, is this still possible to do?
The Blue Card still exists, but my experience would never happen today. Back then the economy was flying high and practically a pulse was all that was needed to get credit. Today, getting an American Express student credit card is no longer easy to accomplish. However, I do have good news…

I applied right around the time the Blue card came onto the market. Although I have no proof of this, I suspect they were probably being more lenient on credit requirements since it was a new card (companies always try extra hard to make their new products a hit). So although that was years ago, coincidently there’s a similar scenario unfolding right now…

They just launched the Zync charge card a few weeks ago. Although it’s not specifically an American Express student card, it is a card that is geared towards younger individuals – their target demographic is for people in their 20’s. I also called up customer service to see if there is an income requirement (like other AmEx cards have) and there isn’t any official requirement on this one. Their age requirement is only eighteen. If there’s any AmEx you can get approved for, I would say this is definitely the best American Express for students such as yourself. Find out the details in my American Express Zync card review.

What happened?
Although I don’t live in Michigan, I was born and raised there, so I try to stay on top of their news somewhat regularly. I was checking today, and low and behold I see a bulletin from the Associated Press about a man that allegedly told police he was robbed after he attempted to pay for his crack with a credit card. If that’s not bizarre enough, the story gets weirder…

According to the Flint Police, the suspect reported his 2003 Chevy Malibu was stolen last Thursday. That’s understandable why he would report that, right? Well, not quite… considering that the car was previously reported stolen in Lapeer, MI which is about fifty miles away. So allegedly, he reported this car as being stolen from him, when he had stolen it from someone else in the first place! The suspect also reportedly told police that he was simply trying to buy coke with his credit card when this gunpoint robbery occurred.

Geez Louise… now that story is a perfect example of how drugs will mess you up big time!