Not sure where to start searching? Don’t worry, because we’ve already reviewed hundreds of card offers this year in order to find the very best travel rewards credit cards with the most generous sign-up bonuses.

Check out our top 5 credit cards for summer travel below and start planning your next free vacation today.

Top 5 Credit Card Sign-Up Bonuses for Summer Travel

1.) Chase Sapphire Preferred Card

• 40,000 bonus points (worth $500 in airfare) to new cardholders who spend $3,000 within 3 months
• 7% annual bonus on all points earned
• $95 annual fee is waived for the first year
• Most lucrative sign-up bonus available if you can meet the spending threshold

2.) Southwest Airlines Rapid Rewards® Plus Credit Card

• 25,000 bonus points (worth over $400 in “Wanna Get Away” fares) after making your first purchase
• You can redeem bonus rewards at a rate of 60 points per $1 in “Wanna Get Away” fares instead of the usual 100 points per dollar
• Annual fee is only $69

3.) British Airways Visa Signature Card

• 50,000 Avios points for new cardholders after their first purchase
• Additional 50,000 bonus points can be earned after spending $20,000 during year one
• The $95 annual fee isn’t waived for the first year

4.) Capital One® Venture(SM) Rewards Credit Card

• 10,000 bonus miles (worth $100 in free travel on any airline) after spending $1,000 during the first 3 months
• Sign-up bonuses have been much bigger in the past, but miles will rack up fast since you earn 2 for every dollar spent
• $59 annual fee is waived for the first year

5.) United MileagePlus® Explorer Card

• 25,000 mile bonus after making your first purchase
• 5,000 mile bonus after adding an authorized user to the card within 2 months
• Spend $25,000 during year one and rack up an additional 10,000 point bonus
• $95 annual fee is waived for the first year

It’s becoming increasingly difficult these days to find no annual fee credit cards that offer flexible yet competitive rewards programs. Chase, however, with its launch of the Sapphire Card a few years ago, is doing its best to fill the void.

And while this card probably isn’t for the hardcore frequent flier who only cares about one thing – racking up serious miles to redeem for free travel – the Chase Sapphire Card is definitely a great option for consumers with good credit who want to use their card for travel while retaining the ability to trade points in for cash, gift cards, or other merchandise.

Here are the top 5 things I like about the direction Chase has taken with the Sapphire:

1. There’s no annual fee yet the card boasts flexible rewards options—travel, gift cards, online shopping and cash back
2. New cardholders will earn 10,000 bonus points after spending $500 during the first 3 months (worth $100 in rewards)
3. You can earn double points on dining and also when booking your airfare or hotel through Chase Ultimate Rewards
4. There are no annual caps, points never expire, and there are no travel restrictions or blackout dates
5. You can redeem travel rewards with a mix of points and credit while getting free trip cancellation insurance to boot!

If you’re tired of paying a big fat annual fee for your rewards credit card and simply want to find a solid rewards card that offers flexibility and the chance to quickly rack up points, the Chase Sapphire Card might be the perfect fit for your needs.

Read more details on the current offer from Chase and consider apply securely online here: Chase Sapphire No Annual Fee Rewards Card

*Chase Sapphire Card Review updated on May 11th, 2012

Dear Creditnet: What’s the advantage of paying off credit card debt that’s still within the statute of limitations but already charged off and sold to a collection agency?

If it’s not going to help improve my credit scores right away, I’m beginning to think I might be better off just keeping the cash in my own pocket.

-Adam from VA

Answer: While it’s true that paying off a debt in collections might not do anything to immediately improve your credit scores, there are several other important things to consider before deciding how you will proceed.

Ignoring the debt and keeping the cash in your own bank account might sound like a better option right now, but will you feel the same way when the collection agency serves you with a lawsuit to collect what you owe? Probably not.

If you have the cash to settle your debts now, my recommendation is to do so and put it behind you once and for all. Ignoring your debts doesn’t make them go away, and dealing with a lawsuit at some point down the road will be a headache you definitely want to avoid if possible.

In addition, you might be able to convince the collection agency to stop reporting the negative account on your credit reports in return for paying your credit card debt in full. If you haven’t formally asked yet, it’s worth a try. And if the collection agency agrees to your request in return for payment, the removal of the negative account could have a very positive impact on your credit scores in the short run.

Finally, there are moral reasons to pay that should be considered as well. If you’re liable for the debt because you bought things or enjoyed services by financing them with your credit card, the right thing to do is repay what you owe. Think about how you would feel if you lent money to someone and knew they had the money to pay you back yet they never did.

While you may have no direct relationship with the collection agency, the situation is really the same if they legally own your debt. So pay what you owe, learn from your past mistakes, and move forward by making a commitment to yourself that you will never again carry balances on credit cards.

Photo by Alan Cleaver

0% interest credit card promotions with no balance transfer fees haven’t come along too often during the past few years.  In fact, I think the last one we saw hit the market was for the Discover More card over a year ago.

And while we don’t know how much longer this latest deal from Chase will last, the good news is that the Chase Slate Card is still offering 0% interest on balance transfers for up to 15 months with no balance transfer fee.  This offer was launched towards the end of 2011 and has been quite popular among consumers since all the other balance transfer credit cards on the market right now are either charging 3% or 5% balance transfer fees.

For those of you that are interested in finally paying off your high-interest credit card debt, this can lead to huge savings.  Transferring a $10,000 balance would cost $300 or more with most cards on the market, but you won’t have to pay a single penny to transfer your high-interest debt to the Chase Slate Card.  That is, as long as you complete the transfer during the first 30 days.

Here’s a quick look at the details of this card offer:

Chase Slate Card: No Balance Transfer Fee

• No Annual Fee
• No Balance Transfer Fee (Limited Time offer)
• Must transfer your balances within the first 30 days.  After that, the fee increases to the usual 3%
• 0% interest for up to 15 months on both purchases and balance transfers
• Chase’s “Blueprint” helps you easily keep track of your balance transfer and set up a plan to get it paid off faster

The reason I mention Chase’s Blueprint is because it’s a free service that can actually come in quite handy when playing the balance transfer game.  The whole idea here is to get your high-interest credit card debt paid off once and for all while saving money on interest, so you need to develop a plan to pay off the balance within the 0% interest promotional period.  Then, you obviously need to stick to that plan!

Blueprint will help you do just that.  Not only can you set up your own payment plan with Blueprint, but you’ll also be able to track your progress online and in every statement.  It’s easy to use and can be quite effective.

The bad news is the Slate for Chase doesn’t offer a rewards program, but racking up mucho miles isn’t the point of this card offer at all.  This is a no-frills, no-annual-fee credit card that can be used as an effective tool to get rid of high-interest debt at no additional cost.  

If that’s what you’re looking for, consider applying for the Slate from Chase- No Balance Transfer Fee Card today.

*Updated on May 7th, 2012

Dear Creditnet: I’ve heard that it’s considered fraud if you get a credit card, use it, and then can’t make any payments.

If I unexpectedly lose my job and can’t make my credit card payments, could I get sued?

Answer: Yes, you could eventually get sued for the debt if you fail to pay, but it wouldn’t be for fraud. Failing to make your credit card payments as agreed isn’t considered “fraud” if you had the intention to make payments when you signed the application; however, it is a breach of the contract you signed with your credit issuer.

The point I want to make here is that you shouldn’t ever put yourself in this situation when using credit cards. Credit cards aren’t meant to be used as a way to pay for things now that you can’t afford to pay off until a later time. That’s a dangerous way to use your card, and it will most likely get you into trouble at some point.

If you feel as though you’re ready to use credit cards as a personal financial tool, then you need to make sure you’re also ready to follow rule #1 of responsible credit card use— only buy what you already have the cash to pay for. In fact, you should really think of your credit card like cash. If you don’t have the cash to buy something, don’t whip out your plastic instead! It’s as simple as that.

If you can follow this one rule, you’ll never have to worry about what could happen if you lost your job and all of sudden couldn’t make any payments on your card. Balances would always be paid in full at the end of each month, and even if you did unexpectedly lose your job, you could still make payment in full and then scale back the use of your credit card until your spending falls in line with your new budget.

Credit card issuers proved to us in 2011 that they are once again prepared to compete for the best customers by offering some amazing sign-up bonuses. Based on what we’ve seen so far this year, I think we can expect to see more of the same throughout 2012, but taking advantage of sign-up bonuses and earning rewards for the money you spend aren’t the only ways you can profit from credit cards.

Here are 5 ways credit cards can actually help keep more cash in your bank account this year:

1.) Take advantage of discounts or additional cash back offers through your credit issuer’s online shopping portal. You could save 10% or more just by shopping through your card issuer’s marketplace. ShopDiscover and Citi’s Bonus Cash Center are two favorites among consumers.

2.) Waive expensive car rental insurance when you charge rental car expenses on a credit card that provides coverage free of charge. And if you use a card like the Blue Cash Everyday Credit Card from American Express, you’ll earn cash back on all your purchases, including gas.

3.) Say no to pricey extended warranties sold by retailers and shop with credit cards that offer extended warranties and purchase protection for free. American Express is a favorite when it comes to providing quick and friendly service on all extended warranty and purchase protection claims.

4.) Use credit cards with no foreign exchange fees when traveling overseas and save 3%. The Capital One Venture(SM) Rewards Credit Card is an excellent travel rewards credit card that not only wavies foreign transaction fees but also offers 2 points per dollar spent on all purchases.

5.) Get rid of high-interest debt with 0% interest credit cards that have no balance transfer fees. Check out the Slate from Chase which is currently the only card on the market offering no interest for 15 months in addition to no balance transfer fee.

Everyone knows that tremendous value can be found in sign-up bonuses and credit card points, but savvy card users know there’s much more to winning the credit card rewards game.

Keep these 5 tips in mind as you use your credit cards throughout 2012, and you could save hundreds or even thousands more than the average credit card user.

Photo by Andres Rueda

Spring is a time of renewal and rejuvenation. For many, there’s just something about the spring season that makes us want to declutter life and move forward with a fresh start.

This might include scrubbing the entire house from floor to ceiling or finally getting around to cleaning out piles of junk from the old attic. But what about all the financial clutter that makes its way into our lives? Shouldn’t it get some attention too?

After all, April also boasts the title of Financial Literacy Month, which presents us with the perfect opportunity to reflect on our personal financial situations and identify ways to start organizing all the clutter that has built up over the past year.

As you begin this process, there’s a good chance your credit will be on top of the cleaning list. So if you’ve been neglecting your credit like those old dusty boxes of magazines piled high in the attic, harness the spring spirit today and follow our five easy steps to spring-cleaning your credit:

1.) Take a Credit Inventory

How can you declutter what you don’t know you have? First, make a list of your credit cards, lines of credit, and other installment loans.

Next, find out what your credit limits are for all your cards and determine your overall credit utilization ratio. You may be surprised at how much credit you’ve accumulated over the years, but don’t be too anxious to close unused accounts. Available credit is a precious thing, and closing credit card accounts can even hurt your credit scores.

2.) Organize Your Credit Files

Although organizing is a simple task for some, you should recognize that this step might require some quality time. Plan ahead by setting aside a rainy Saturday morning to create organized folders for all of your important bills, tax documents, and other sensitive paperwork.

But don’t be a packrat! Part of getting organized is knowing what you do and don’t need, so be sure to have a shredder handy to take care of all the paperwork that isn’t worth keeping around. If you’re stashing more than you’re shredding, something’s wrong!

3.) Detox Your Credit Reports

You should think of your credit reports as a key indicator of your personal financial reputation. If there are any negative marks, whether correct or incorrect, ignoring them won’t make them go away.

So take the time now to pull all three of your credit reports and give them a good scrubbing. If you find errors or inaccuracies, submit your disputes to the credit bureaus for further investigation.

4.) Power Wash Your Debts

Now that you’ve organized what you have and you know what you owe, it’s time to develop an aggressive strategy for becoming debt free. If you don’t know what your debt is costing you on an annual basis, figure out the number.

This is an important part of financial literacy because consumers often choose to ignore the total cost of a purchase including interest and fees. When you see how much your debt really costs you in unnecessary interest charges, you’ll likely have all the motivation you need to face reality and cut down on your debt fast.

5.) Simplify

DaVinci once said, “Simplicity is the ultimate sophistication.” Likewise, financial sophistication doesn’t have to be all about complexity.

In fact, you should take all possible measures to simplify your personal finances by making savings and payments automatic, requesting online statements, and consolidating accounts whenever possible. If there’s anything that will keep your credit situation decluttered in the years to come, it’s simplicity.

Photo by SoekFoto

Here are some interesting credit facts to contemplate while you take your Friday-morning coffee break. Prepare yourself, because I know you’re excited!

According to TransUnion’s most recent Credit Risk Index (CRI), the amount of credit risk taken on by consumers is rising for the first time since its peak in 2009, and the driving factor is mortgage delinquency. Apparently the numbers of homeowners who were at least 60-days late on their mortgage began to rise again during the 4th quarter of 2011.

Check out the chart below which shows how the CRI has moved since 2005.

But what about the usual culprit—credit cards? Recent data has shown an increase in credit card use among Americans as well, especially during the holidays. And credit issuers have also jumped back into the marketing game, albeit with a bit more caution, as we’ve even seen increased marketing of credit cards for bad credit to those with subprime FICO scores. Shouldn’t these credit card trends all lead to higher credit card delinquencies and higher credit risk too?

You would think so. However, consumers have continued to do a better job at paying their credit card bills on time and reducing their overall credit card debt since the end of the recession. Meanwhile, as homes values continue to sink around the country and more equity vanishes, making the mortgage payment has become less important for a lot of Americans.

This really blows my mind. In the past, if you were forced to choose between which payments you would make due to financial hardship, the mortgage always came first, then the car loan, and then the credit cards.

Why would anyone want to risk losing their home to make payments on an unsecured debt? Well, apparently a lot of Americans are beginning to think they would rather keep their rewards credit cards in their wallet than an underwater roof over their heads.

What would you do if push came to shove and you couldn’t pay both bills? Would you pay the mortgage or your credit cards?

Photo by Taber Andrew

It’s true that too many credit inquiries can have a negative effect on FICO scores, but my experience has been that most people focus WAY too much on this small factor in the FICO credit-scoring model. In fact, I receive emails quite often from both readers and personal friends who are concerned about something as simple as applying for a new airline miles credit card because they’re planning on financing a new home or a car in the next 12 months.

Their reasoning is they don’t want to risk taking any sort of unnecessary hit to their credit scores before applying for a major loan, and I completely understand that. I wouldn’t apply for new credit within a month or two of closing on a home loan either.

However, the advice I’ve given has always been based on my belief that credit inquiries shouldn’t really be a major concern for the average consumer. Not only do inquiries account for a small percentage of your FICO scores (10 percent), but the amount of points you could lose due to a credit inquiry is small when compared to all the other major factors considered by the FICO credit-scoring model.

While it certainly makes sense to avoid applying for a new credit card the month before you need to get approved for a mortgage, getting a new card six or 12 months in advance shouldn’t be a concern. Even if it does have a negative effect on your credit scores, the effect should be minimal and your scores should also be able to recover as you continue building positive payment history.

FICO Shares New Facts About Inquiries and Credit Scores

I was excited to see that FICO recently decided to share some more facts with us regarding credit inquiries and their effect on FICO scores. Here are a few statistics, straight from the horse’s mouth, that stood out to me as I read FICO’s April 19th blog post:

• “57 percent of consumers score the maximum number of points for inquiries; that is, inquiries are not a factor for at least 57 percent of consumers.”
• “Only 4 percent of consumers lose more than 20 points because of inquiries.”

What should these numbers tell you?

First, credit inquiries aren’t even a factor for the majority of consumers. And second, if your scores are affected by the number of credit inquiries you’ve had, there’s a very small chance it’s causing a drop of more than 20 points. According to FICO, “if an inquiry does impact a score, it’s typically by a small amount— less than five points, on average.”

There you have it. For most of you, the number of credit inquiries you have isn’t hurting your FICO scores at all. For the rest of you, not including a very small percentage of consumers on the far end of the spectrum, you might be looking at less than a 5-point drop on average for a credit inquiry.

Dear Creditnet: I wanted my son to have a credit card in his name when he went off to college. However, the only way we could get him a card was to apply for one in my name and add him as an authorized user.

He used the credit card responsibly for the last four years and upon graduation was able to open a new credit card in his own name. We’d like to close the old one now, even though it doesn’t have an annual fee, but we’re concerned about how this might affect both of our credit scores.

Should we just close it since we don’t plan on using the card again?

-Danielle from CA

Answer: I generally recommend leaving old credit cards open, especially if they don’t have annual fees. Closing credit card accounts will never have a positive impact on your FICO scores, and as you suspected, it may even hurt them.

What you should do is call your credit issuer and remove your son from the card as an authorized user. This will prevent any future credit mishaps, by you or your son, from impacting the other person’s credit reports and credit scores. And while the account will fall off your son’s credit reports at some point in time, I doubt it will have much of a negative impact on his overall credit scores.

You can then keep the no annual fee credit card open solely in your name, use it every so often to keep the account active, and set up auto payments to make sure any balance is always paid in full. This will allow the card to continue having a positive impact on your credit scores with minimal effort on your part.

Then again, if you simply don’t want to deal with it any longer and would rather just get rid of the card, that may not be a bad choice either. If you both have good credit scores and other credit cards with plenty of available credit, the negative effect on your credit scores should be minimal once the account is closed.

Photo by Squeaky Marmot