Finance Xpress

When I was the ripe ol’ age of 18, I flew for the very first time.  Before you date me as being much older than I am, that was only 14 years ago — and my very first flight was on JetBlue airlines.

At the time, JetBlue had just released the awesome new idea of having TVs installed in the back of every seat, so my already short flight of 3 hours flew by (pun intended).  For years, I flew JetBlue exclusively until baggage fees and flight costs just became too expensive. Looking at the value the new JetBlue Plus Card offers, though, I can honestly say I’ll be looking to fly JetBlue (and often) in the very near future.

New cardholders of the JetBlue Plus Card will receive a 30,000 point bonus after spending $1,000 in the first 90 days.  That equates to ~$300 in travel value, which is a pretty good opening bonus in today’s bonus points market.  The standard rewards program on the JetBlue Plus Card breaks down as follows:

• 6 points per dollar spent on JetBlue purchases
• 2 points per dollar spent at restaurants and at grocery stores
• 1 point per dollar spent on all other purchases

Related: The Best Travel Rewards Credit Cards

The fun doesn’t stop there.  There are a few additional, very important rewards perks to mention as well on the JetBlue Plus Card.

1. All cardmembers will save 50% on in-flight JetBlue purchases
2. 5,000 annual bonus points every card anniversary
3. Cardholders always have their first bag checked for FREE

The casual flyer will notice one big negative when considering to apply for the JetBlue plus card; a $99 annual fee that is NOT waived for the first year.  There is a 0% intro APR on balance transfers associated with the JetBlue Plus Card and the ongoing APR (purchase and balance transfer) is 12.49% – 25.49% variable.  There are no blackout dates when using TrueBlue points, points never expire, and points can always be redeemed for any seat on any JetBlue flight.

Learn More: Is Travel Hacking Too Good to Be True?

For those that fly JetBlue often, owning the JetBlue Plus Card is an absolute must.  Between the intro bonus, the 6x points on JetBlue flights, the 50% discount on in flight purchases, the 5,000 annual bonus points AND free baggage check, we’re talking about savings of $40 to $50 each and every flight.  Yes, the $99 annual fee is a bummer… but for those that fly even twice a year, the savings will certainly be greater than the annual fee.

• Learn more about the JetBlue Plus Card here.

Topics: Credit Cards • Smart Spending • Travel

The post A Review of the JetBlue Plus Card with 30,000 Bonus Points appeared first on The Dough Roller.

via Finance Xpress

Posted by: Richie Bernardo

For many of us, hard work remains the path to achieving the American Dream. We work so hard, in fact, that we put in more hours at our jobs than several other industrialized countries such as Germany, Japan and the U.K.

But some U.S. cities represent the strong work ethic that helped to build the world’s biggest economy better than others. In order to determine which cities outwork the rest of America, WalletHub’s analysts compared the 116 largest cities across six key metrics. Our data set ranges from “labor-force participation rate” to “average weekly work hours” to “share of workers with multiple jobs.” Read on for our findings, expert insight from a panel of researchers and a full description of our methodology.

1. Main Findings
2. Labor Force Participation Over Time
3. Ask the Experts
4. Methodology

Main Findings

  Embed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/10424/geochart-hardwork1.html" width="556" height="347" frameBorder="0" scrolling="no"></iframe> <div style="width:556px;font-size:12px;color:#888;">Source: <a href="http://ift.tt/2m7rg2B;        

Hardest-Working Cities in America

Overall Rank	City	Total Score	‘Direct Work Factors’ Rank	‘Indirect Work Factors’ Rank
1	Anchorage, AK	90.76	1	1
2	Plano, TX	81.49	2	42
3	Cheyenne, WY	81.17	3	86
4	Virginia Beach, VA	79.91	6	55
5	Irving, TX	79.71	4	53
6	Scottsdale, AZ	77.85	5	62
7	San Francisco, CA	77.82	8	25
8	Corpus Christi, TX	76.50	7	97
9	Washington, DC	75.56	9	34
10	Sioux Falls, SD	73.12	12	46
11	Denver, CO	72.87	15	28
12	Dallas, TX	72.79	13	42
13	Charlotte, NC	72.35	10	70
14	Gilbert, AZ	72.30	14	40
15	Jersey City, NJ	72.18	21	7
16	Fort Worth, TX	71.53	16	39
17	Austin, TX	70.91	18	76
18	Houston, TX	70.90	11	89
19	Chandler, AZ	70.77	17	57
20	Garland, TX	70.67	20	35
21	Oklahoma City, OK	70.47	19	85
22	Norfolk, VA	69.94	24	60
23	Aurora, CO	69.58	27	14
24	Arlington, TX	69.44	23	37
25	Tulsa, OK	68.51	22	95
26	Chesapeake, VA	68.43	30	44
27	Kansas City, MO	68.08	31	26
28	Seattle, WA	68.06	32	18
29	New York, NY	68.01	37	3
30	Billings, MT	67.68	29	66
31	Orlando, FL	67.21	26	100
32	Omaha, NE	67.17	44	6
33	Portland, ME	66.96	39	8
34	Nashville, TN	66.56	28	64
35	Fargo, ND	66.50	42	13
36	Charleston, WV	66.09	25	115
37	Raleigh, NC	65.91	34	68
38	Honolulu, HI	65.85	41	21
39	Colorado Springs, CO	65.49	43	47
40	Durham, NC	65.28	35	71
41	Des Moines, IA	64.97	48	19
42	Wichita, KS	64.67	47	30
43	Manchester, NH	64.07	45	75
44	San Antonio, TX	63.55	46	74
45	Chicago, IL	63.27	49	32
46	Jacksonville, FL	63.08	40	103
47	Atlanta, GA	62.62	38	83
48	Tampa, FL	62.58	50	45
49	Henderson, NV	62.22	33	112
50	San Diego, CA	62.01	58	20
51	Phoenix, AZ	61.87	51	52
52	Fremont, CA	61.79	59	24
53	Bakersfield, CA	61.49	52	84
54	Columbus, OH	61.47	56	61
55	El Paso, TX	60.85	53	82
56	St. Petersburg, FL	60.79	57	49
57	Little Rock, AR	60.53	36	116
58	Indianapolis, IN	59.61	55	79
59	Salt Lake City, UT	59.52	79	2
60	Lincoln, NE	59.48	66	16
61	San Jose, CA	59.38	63	27
62	St. Louis, MO	59.10	65	22
63	Baltimore, MD	58.77	64	36
64	Miami, FL	58.10	54	106
65	Minneapolis, MN	58.02	81	5
66	Wilmington, DE	57.96	69	31
67	New Orleans, LA	57.79	62	87
68	Irvine, CA	57.41	61	94
69	Louisville, KY	57.37	60	98
70	Mesa, AZ	56.83	71	50
71	Fort Wayne, IN	56.74	67	77
72	Boston, MA	56.53	83	15
73	Boise, ID	56.45	72	51
74	Glendale, AZ	56.20	77	41
75	Laredo, TX	56.07	70	88
76	Greensboro, NC	55.57	74	78
77	Winston-Salem, NC	55.40	75	81
78	Anaheim, CA	55.34	68	80
79	Lexington-Fayette, KY	55.07	73	92
80	Chula Vista, CA	54.65	90	12
81	Albuquerque, NM	54.62	80	56
82	Portland, OR	54.54	92	9
83	Reno, NV	53.67	78	105
84	Long Beach, CA	53.23	84	73
85	Oakland, CA	53.12	91	29
86	Las Vegas, NV	52.79	76	107
87	Los Angeles, CA	52.49	86	69
88	Newark, NJ	52.47	95	10
89	St. Paul, MN	52.08	97	4
90	Memphis, TN	52.04	87	96
91	Philadelphia, PA	51.98	93	17
92	North Las Vegas, NV	51.80	82	104
93	Lubbock, TX	51.74	85	110
94	Birmingham, AL	50.73	88	108
95	Jackson, MS	50.24	89	109
96	Sacramento, CA	49.41	94	72
97	Milwaukee, WI	47.88	104	11
98	Bridgeport, CT	47.81	103	23
99	Madison, WI	47.61	102	54
100	Pittsburgh, PA	47.59	98	59
101	Cincinnati, OH	46.69	101	65
102	Baton Rouge, LA	45.93	100	99
103	Santa Ana, CA	45.58	99	93
104	Hialeah, FL	45.50	96	113
105	Riverside, CA	45.17	107	33
106	Stockton, CA	44.58	105	63
107	Toledo, OH	44.07	106	67
108	Fresno, CA	41.25	108	90
109	Cleveland, OH	41.08	109	58
110	Tucson, AZ	39.08	110	102
111	Columbia, SC	34.80	111	114
112	Buffalo, NY	34.40	112	111
113	Providence, RI	33.04	113	91
114	San Bernardino, CA	32.90	114	38
115	Detroit, MI	28.76	115	101
116	Burlington, VT	17.89	116	48

 

Labor Force Participation Over Time

Note: Each state is colored based on the labor-force participation rate of its largest city.   Embed on your website<a href="http://ift.tt/2mGgtsU; <img src="//d2e70e9yced57e.cloudfront.net/wallethub/images/posts/10812/animation-new2.gif" width="700" height="575" alt="animation new2" /> </a> <div style="width:700px;font-size:12px;color:#888;">Source: <a href="http://ift.tt/2m7rg2B;

   

Ask the Experts

The American work structure contrasts with that of other countries. For additional insight, we asked a panel of experts to weigh in with their thoughts on the following key questions:

1. Research shows that Americans work 25% more hours than their counterparts in Europe. Why do Americans work so much more?
2. Does working more hours always translate into higher productivity? Does this vary by industry or job type?
3. What is the ideal numbers of hours to work per week?
4. In evaluating the hardest working cities, what are the top five indicators?
5. What policies should governments and firms adopt to improve the quality of life of American workers?

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• Michael H. LeRoy Professor in the School of Labor & Employment Relations & College of Law at University of Illinois at Urbana-Champaign
• Loukas Karabarbounis Associate Professor of Economics and Public Policy Scholar at the University of Chicago Booth School of Business
• William R. Kerr MBA Class of 1975 Professor of Entrepreneurial Management at Harvard Business School
• Gerald Friedman Professor of Economics at University of Massachusetts at Amherst
• John Logan Professor and Director of Labor and Employment Studies at San Francisco State University
• Kerri L. Stone Professor of Law at Florida International University College of Law
• Seth H. Giertz Associate Professor of Economics at University of Texas at Dallas
• Pierre André Chiappori E. Rowan and Barbara Steinschneider Professor of Economics at Columbia University
• Mehmet Fuat Sener Professor of Economics at Union College

Michael H. LeRoy Professor in the School of Labor & Employment Relations & College of Law at University of Illinois at Urbana-Champaign Research shows that Americans work 20% more hours than their counterparts in Europe. Why do Americans work so much more? Americans work more hours because the core features of the employment relationship are eroding. Studies by the U.S. Bureau of Labor Statistics show that 10.5 million Americans fall in the “working poor” category, meaning they earn too little to be above the poverty line. So much goes into this, but leading factors are employer cutbacks in hours due to the Affordable Care Act, the longstanding and widespread decline of labor unions that once bargained premium wages and overtime, wage thefts by employers, and the shifting of jobs from employment to independent contracting — jobs such as home health care nurses, cable installers, security guards, rideshare drivers and many more. Does working more hours always translate into higher productivity? Not at all. From 2007-2015, worker productivity has grown an average of 1.2 percent per year. It’s the lowest growth rate since 1979-1990. There are many reasons; but one central explanation is that the economy has lost 5.5 million middle-skill jobs in the past decade. These are typically manufacturing jobs that take some degree of mechanical aptitude and training. When people lose these jobs, they have trouble getting new work; and when they find a job, it’s more dumbed-down, such as clerking at a store, driving a car for Uber, or the like. What is the ideal numbers of hours to work per week? Worker productivity falls after 50 hours a week. When a worker exceeds 55 hours a week, he or she produces about the same as someone who works 70 hours a week, according to a recent Stanford study. In other words, when fatigue is reached, nothing is accomplished — only time accumulates, not productivity. What policies should governments and firms adopt to improve the quality of life of American workers? Both political parties have good ideas for this. Republicans are right when they advocate lower employer tax burdens so that more quality jobs — and more continuous hours — are offered to workers. Democrats are right when they say that minimum wages are too low, resulting in millions of workers who supplement their meager earnings with food stamps. Raise the minimum wage in a series of annual increments. This will tend to cut down on the need for people to have multiple jobs; and will bring more employment into the sweet spot for 40-50 hours of work at higher levels of productivity. Loukas Karabarbounis Associate Professor of Economics and Public Policy Scholar at the University of Chicago Booth School of Business Research shows that Americans work 20% more hours than their counterparts in Europe. Why do Americans work so much more? Three proximate causes: (i) taxes on labor income are lower in the U.S.; (ii) value of non-market time is higher in Europe where family ties are stronger; (iii) regulation of hours worked is more stringent in Europe. Does working more hours always translate into higher productivity? No. How have worker hours or productivity changed during the recession and recovery? Hours per worker declined during the recession and now have recovered to the pre-recession levels. Total hours declined significantly during the recession and have not recovered yet to the pre-recession levels. Measured labor productivity declined for a short period of time during the recession and since then has increased at a relatively slow rate. What is the ideal numbers of hours to work per week? For some people clearly zero, for others much more. What policies should governments and firms adopt to improve the quality of life of American workers? The government should lower labor income taxes. Depending on the nature of work, firms can offer to employees the choice to telecommute more and base a larger fraction of compensation on performance. William R. Kerr MBA Class of 1975 Professor of Entrepreneurial Management at Harvard Business School Research shows that Americans work 20% more hours than their counterparts in Europe. Why do Americans work so much more? The difference in hours worked between America and Europe is due to many factors. First, the returns from greater effort are higher in the United States. In most professions, top earners in the United States make substantially more than European counterparts, which increases incentives to work hard to move up the rank. The United States’ marginal tax rates on this income are also lower in Europe, which reinforces the differential. Legal limitations towards work and collective bargaining over wages are also much stronger in Europe. Beyond these, culture in America directs attention to work. America can be hyper-competitive in settings like Manhattan or Silicon Valley, which can be quite addictive. European nations have also adopted stronger norms towards taking certain months off from work (e.g., July in Finland, August in France). This does not happen in the United States, where often workers instead are just given a couple weeks of vacation. All of this adds up to large differences in hours of effort, and the economic and business systems on both continents have been molded to be broadly consistent with the choices made. Does working more hours always translate into higher productivity? No. First, productivity can be defined as output per hour worked. In this case, it is easy to see why more hours could in fact lower realized productivity. If instead defining productivity as output per worker or person, you more likely enter a situation where additional effort does not detract from the total output generated, but it might also not add that much either. In this case, workers would be better off spending time on other pursuits and resting, given their low productivity on the job. Are some workers or workers in some industries more prone to working long hours without producing much more output? Some jobs are much more intense than others, either on mental or physical dimensions. These are the jobs where diminishing productivity sets in fast, and workers can’t keep the pace for super long hours. In mental-intensive occupations, workers begin to make mistakes as they fatigue. By contrast, more routine work, even if requires specialized knowledge, won’t face as severe a trade-off because the worker is applying standard rhythms. What is the ideal numbers of hours to work per week? This falls into the domain of individual choice. One person may value money and work-generated prestige highly and be willing to spend 100 hours per week in pursuit. Another may value family time and personal interests, and work is mainly to pay the needed bills. At one job, my new boss inquired if I “worked to live or lived to work”. The world is not so black and white, but each individual needs to answer that question for themselves. What policies should governments and firms adopt to improve the quality of life of American workers? I won’t even attempt to do justice to such a big question! Instead, I report one big entry on my list—better pre-K childcare access for working adults with children. Many parents of young kids struggle to make the ends meet, taking on multiple hard jobs. This already pulls them away from their children, but the situation can be further negatively compounded if children are subject to inadequate care. A huge chunk of research now shows how pivotal these early years are for long-term success, academically and in the labor market. We should invest in these children as they are our future; for today’s parents, this will also provide a huge boost for quality of work life and peace of mind. Gerald Friedman Professor of Economics at University of Massachusetts at Amherst Research shows that Americans work 20% more hours than their counterparts in Europe. Why do Americans work so much more? This is a development since the 1970s. We work more to make up for declining wages, because there is more competition for jobs so people try to appear harder working, because lax regulation has undermined the Fair Labor Standards Act and overtime regulations, and because the US has fewer mandated holidays. Does working more hours always translate into higher productivity? Absolutely not. I think that in many cases, productivity falls because workers are stressed, come to work sick, and are preoccupied with the home responsibilities that they are neglecting while working late. How have worker hours or productivity changed during the recession and recovery? Productivity and work hours both tend to be pro-cyclical, falling early in the recession and rising in the recovery. These effects were somewhat weaker in this recovery because businesses laid off so many workers right away. Are some workers or workers in some industries more prone to working long hours without producing much more output? Creative workers tend to overwork because their extra work does little for their productivity. In that sense, I think that many professional workers (lawyers and academics) overwork -- that is, work more without increasing output. What policies should governments and firms adopt to improve the quality of life of American workers? More mandated vacations and real overtime pay! And stronger unions, faster economic growth, and full employment to give workers more bargaining power. John Logan Professor and Director of Labor and Employment Studies at San Francisco State University Research shows that Americans work 20% more hours than their counterparts in Europe. Why do Americans work so much more? Americans work more hours because average hours in Europe have fallen in recent decades, while in the US they have not (it's important to note that half a century ago, workers in several European countries had longer hours than US workers). Hours have declined in Europe largely because labor movements and social democratic parties have championed the cause of shorter hours. Does working more hours always translate into higher productivity? No -- in fact, sometimes the opposite is true. It’s not the number of hours you put in that matter most, it's what you put in to your hours -- i.e., what's most important is productivity per hour. Americans are among the most productive workers in the world, but that's not surprising given their high number of hours. They also do pretty well when measuring productivity per hour, but they are not at the top on this scale. How have worker hours or productivity changed during the recession and recovery? Several European countries tried to avoid mass layoffs by reducing workers' hours, especially in the initial years of the recession, whereas US companies were more likely to respond by laying off staff. That’s partly because it's more difficult to hire and fire in some European countries (and much easier to do so in the U.S., where most employees are "at will" employees) but also because of cultural/ideological differences. Are some workers or workers in some industries more prone to working long hours without producing much more output? Yes, but beyond a certain limit, more hours are counterproductive for almost all workers. What is the ideal numbers of hours to work per week? That’s partly a question of policy preference. Northern European workers and (most) politicians would likely argue that the ideal number is much lower than the figure that is commonly accepted in the US. A major policy difference, of course, is the lack of any statutory right to paid vacation time in the US. What policies should governments and firms adopt to improve the quality of life of American workers? Paid vacation time, paid parental leave and paid sick leave -- most countries in the world have some provision for all of these, not just other advanced democracies. The US is really an outlier in this respect. Kerri L. Stone Professor of Law at Florida International University College of Law Research shows that Americans work 20% more hours than their counterparts in Europe. Why do Americans work so much more? The idea of the "American work ethic" is a double-edged sword. On one hand, this notion is steeped in the American tradition of hard work, few if any vacations, a minimum of a forty hour work week, and at least an eight hour work day -- consistent, hard work. It would be virtually unthinkable for all but the smallest businesses to close up shop and have everyone take off for many days or weeks at a time. On the other hand, we lose a lot of the flexibility that Europeans afford themselves on a regular basis. It is not unusual, however to find European employers, businesses, and other entities that do not follow suit. A quick perusal of travel websites, for example, turns up much amusement and bewilderment over the often-repeated, and only somewhat facetious refrain, "Italy is closed for the month of August." The European mentality appears to be one that values taking time to recharge. This may stem from the philosophical differences between the U.S. and Europe when it comes to employment. It is not unusual in Europe to find legal systems in which one's job is considered one's property, and one cannot be stripped of one's job without good cause. Labor movements in Europe often have excellent traction, and strikes and other employment-based protests are fairly common. Contrast that with our system, in which employment is predominantly at-will, and one serves at the pleasure of his or her employer. Labor unions have declined in membership and power in recent decades, as well. Does working more hours always translate into higher productivity? Not necessarily. Several studies have found that just the opposite is true. Often, an infusion of rest or another distraction into the workplace is exactly what a worker needs to stay recharged and focused. Fatigue, resentment, and just plain boredom can stifle energy, innovation, and productivity. Companies that have taken the lead in combating these forces with an emphasis on quality of life that may result in more breaks, pleasant spaces in which to recharge at work, opportunities for exercise, massage, or some other healthful activity, or flexible hours, paid maternity leave, etc., often claim to have seen an uptick in things like loyalty, productivity, and innovation in the workplace. What policies should governments and firms adopt to improve the quality of life of American workers? As we've seen, improving workers' quality of life often corresponds with improving employers' workplace environments, output, and morale, so efforts and policies centered around quality of life are increasingly important. Although the FMLA guarantees employees who work for qualifying employers twelve weeks of family or medical leave once certain conditions have been met, this is a floor and not a ceiling. Longer and/or paid leave is an offering that helps employers attract and retain talented employees. Laws like the affordable Care Act and local laws dictate that certain accommodations be made for mothers who wish to express milk in the workplace, but these opportunities, again, can always be expanded upon by local employers. Childcare assistance and provisions are always something that helps an employee to be more present at work, both physically and mentally, because they don't need to worry about affording or otherwise accessing off-site care, and they don't need to make alternate arrangement when that care falls through. Finally, although the law does not require employers to have civility or anti-bullying policies in the workplace, employers who voluntarily undertake to implement them appear to be amplifying morale, loyalty, and productivity, among other things like public relations. Seth H. Giertz Associate Professor of Economics at University of Texas at Dallas Research shows that Americans work 20% more hours than their counterparts in Europe. Why do Americans work so much more? There are several reasons why Americans work more hours than Europeans.

1. One, often cited, is taxes. European's, in general, have much higher tax rates on labor than in America. This encourages Europeans to shift towards leisure or non-market activities.
2. Europeans generally have stronger labor regulations and labor unions. This may restrict hours of work and may make it more difficult for some to find work.
3. Divorce rates have increased more in the US than in Europe. More female-headed households have likely contributed to increased work by women in the US (relative to Europe).
4. Other possible contributors include other cultural differences and differences in social policy (including programs for low-income and disability programs).

Does working more hours always translate into higher productivity? No. In many cases, working more hours translates into lower productivity per worker (or per hour worked). It is disproportionately lower-skilled or lower-productivity workers that are more likely to scale back their work hours or to exit the labor market altogether. Likewise, high-productivity workers who scale back their hours are likely to reallocate the time that they do spend working towards their highest productivity tasks. Thus, sometimes countries where workers work less also have higher productivity. What is the ideal numbers of hours to work per week? The ideal number of hours to work per week is what a person would choose to work, given his or her market wage rate, and absent market distortions that would alter this wage rate. That is, work choices should be dictated by individual preferences and the willingness of firms to pay individuals for their services. What policies should governments and firms adopt to improve the quality of life of American workers? Government policies, such as high taxes or burdensome regulations, can be very harmful to the economy. Taxes are needed to fund government and many regulations serve important purposes. However, the quality of life for American workers could be improved by reforming our tax and regulatory system, which is unwieldy, and, in many respects, counterproductive. Pierre André Chiappori E. Rowan and Barbara Steinschneider Professor of Economics at Columbia University Research shows that Americans work 20% more hours than their counterparts in Europe. Why do Americans work so much more? Various explanations have been proposed. According to some, it's mostly due to the respective tax-benefit systems (and the regulations governing the labor market). For others, it’s mostly a matter of preferences. My opinion: probably both, but it’s certainly true that in the trade-off between leisure and consumption, Europeans put more weight on leisure than US people. It is important to note, however, that there are huge differences between European countries. Does working more hours always translate into higher productivity? Absolutely not. Productivity per hour is higher in France, for instance, although this is due to multiple phenomena (to name just one: unskilled/low productivity workers are much more likely to be unemployed in Europe, particularly Southern Europe, than in the US). That said, production per worker is higher in the US, although it’s devilishly difficult to measure precisely (it depends on the type of production or service, the level of capital, etc.). Mehmet Fuat Sener Professor of Economics at Union College Research shows that Americans work 20% more hours than their counterparts in Europe. Why do Americans work so much more? Some research points to higher marginal tax rates and lower divorce rates in Europe as the main culprits. It seems to me that individual preferences and their interactions with the institutions can also play a role. Economic theory suggests that as incomes rise, demand for leisure is likely to increase since leisure is a normal good. In both Europe and the US, income per capita levels have roughly doubled in the past 40 years. In Europe, where unions are strong and labor market institutions are more centralized, the demand for leisure can be more pronounced in the salary and benefit negotiations. In the US, where the markets are more decentralized, workers’ demands can be relatively muted. This is because US employers may find it more convenient to attract/retain workers by signaling higher salaries as opposed to lower work hours. Does working more hours always translate into higher productivity? From a theoretical viewpoint, one can argue that the effects of more hours on productivity depend on ability levels. For an individual with a high level of innate ability, more hours clearly imply more productivity. To see this, consider a well-established economics professor in a top research university. This professor can write textbooks, maintain a blog, give highly-paid speeches etc. Clearly, such activities add tremendous value to the income of the professor and definitely require longer hours. Especially, individuals who are a part of the superstar economy would see longer work hours translate into higher productivity. For individuals with lower ability levels, on the other hand, it is hard to envision such increasing returns from extra work hours. These individuals are more likely to engage in manual tasks and have limited opportunities to accumulate human capital and reap additional rewards. From an empirical point of view, it is hard to distinguish the effects of work hours on productivity from the effects of ability on productivity. People with higher ability levels are motivated to work longer hours since there are increasing returns to their overtime work. Thus, higher ability leads to longer hours, and, by construction, higher ability implies higher productivity. As a result, one might observe a strong positive correlation between work hours and productivity. However, this does not necessarily imply a causal relationship. The issue can be resolved by controlling the ability levels across individuals. Nonetheless, ability levels are imperfectly measured, making it a challenge to tease out the effects of longer hours on productivity. Are some workers or workers in some industries more prone to working long hours without producing much more output? I think that it would be better to answer this question by thinking about jobs and not in terms of industries. In general, individuals who are working at jobs that provide limited opportunities for human capital accumulation are less likely to register a productivity gain by working longer hours. Consider a barista who starts working at Starbucks. The returns to his hours are pretty high during the first week at work due to gains from specialization. Learning the tricks of making cappuccinos should probably take no more than a week. Once the returns from specialization are exhausted, longer hours imply more cappuccinos but not more cappuccinos per hour. What is the ideal numbers of hours to work per week? In my view, the number of work hours should be no more than 30 per week. It is true that the average hours of work has gone down steadily in the 20th century but recently there has been a levelling off in that trend. So what can we do? I cannot foresee a reduction in work hours being easily negotiated, given the existing rigid political and bureaucratic structure. However, I can envision a reduction in the number of work days as a more reasonable starting point. The number of off-days and their distribution over the week seem to be determined by historical events and religious traditions rather than by coordinated discussions at the national or global level. It may be time to tackle this issue. Two off-days during the weekend (Saturday and Sunday) and an off-day in midweek (Wednesday) could be the optimal schedule for many of us. The weekend can be used to engage in focused leisurely activities and a midweek break gives an opportunity to recharge the batteries. Two-day weekends have been with us for more than a century now. There is no reason as to why we cannot increase the number of off-days to three. This may require a global coordination, but striking a deal to reduce work days could be less of a challenge than agreeing on reducing CO2 emissions. What policies should governments and firms adopt to improve the quality of life of American workers? Higher minimum wages and reduced work days by the government, and more transparency in terms of salaries and treatment of workers by the firms.

Methodology

In order to determine where the hardest-working Americans live, WalletHub’s analysts compared 116 of the most populated cities across two key dimensions, namely “Direct Work Factors” and “Indirect Work Factors.”

We evaluated those dimensions using six key metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the “hardest-working.” Data for metrics marked with an asterisk (*) were available only at the state level.

We then calculated the overall score for each city based on its weighted average across all metrics and used the resulting scores to construct our final ranking.

For our sample, we ensured that at least one city from each of the 50 states was represented. Each city refers to city proper and excludes the surrounding metro area.

Direct Work Factors – Total Points: 80

• Average Workweek Hours: Triple Weight (60 Points)
• Labor-Force Participation Rate: Full Weight (20 Points)Note: This metric was calculated as follows: Civilian Population Aged 16 to 64 in Labor Force / Total Civilian Population Aged 16 to 64.

Indirect Work Factors – Total Points: 20

• Average Commute Time: Half Weight (5 Points)
• Share of Workers with Multiple Jobs*: Half Weight (5 Points)Note: This metric was calculated as a percentage of total employment.
• Annual Volunteer Hours per Resident: Half Weight (5 Points)
• Average Leisure Time Spent per Day*: Half Weight (5 Points)

 

Sources: Data used to create this ranking were collected from the U.S. Census Bureau, Bureau of Labor Statistics and Corporation for National and Community Service.

from Wallet HubWallet Hub


via Finance Xpress

Posted by: John S Kiernan

Rating: 5 / 5

The Verdict: If you’re a fan of Target, you’ve hit the bullseye with the REDcard. This store credit card requires only “fair” credit for approval, does not charge an annual fee and offers savings of 5% on most purchases you make from the store. It also scores you free shipping from Target.com and an extra 30 days to return any Target purchase. The Target REDcard can therefore serve as a conduit not only to lower monthly bills but also to a far more accommodating credit-building environment than you’d enjoy with most non-store-affiliated plastic.

After all, store cards don’t need to charge annual fees or require refundable security deposits to offset the risk associated with lending to unproven consumers because the retailers they represent benefit directly from the purchases that you make. This actually presents an opportunity for those who don’t particularly care for Target from a shopping perspective, considering that you can build credit for free with a no-annual-fee credit card without even using it to make purchases. In other words, if you’re having a tough time finding a “normal” credit card that will approve you, why not give the Target Card a shot? It will certainly do the trick.

Below, we’ll tell you a bit more about where the Target REDcard hits the mark and where it ultimately falls short, particularly as it relates to financing.

The Highlights

• 5% Off Most Target Purchases: Pretty much every purchase you make at Target and Target.com will be automatically discounted 5% if you pay with your REDcard. That’s an amazing benefit, considering everything you can buy at Target — from groceries to electronics. What’s more, this 5% discount can be combined with store coupons, including those from the Target-owned digital-coupon service, Cartwheel, and the 5% discount available via Target Subscriptions, a service that delivers everyday essentials according to a schedule of your choosing. But there are exceptions to this rule (see “The Lowlights” section below).
• 30-Day Extension For Returns: The REDcard is your ticket to a wider return window, extending the standard timeframe during which you may exchange a given item by 30 days. With that being said, it’s important to note that this perk isn’t set in stone. Target reserves the right to discontinue this feature at any time, and the terms and conditions note that “purchases with a fixed return date” and “non-refundable items” are excluded. 

• Free Shipping From Target.com: Any Target.com purchase paid for with your Target REDcard, regardless of the amount, is eligible for free standard shipping to any U.S. state as well as the District of Columbia, Puerto Rico and certain military installations. You’ll obviously have to pay for expedited options, but as long as you’re not in a hurry, this account feature will definitely come in handy. 

• Requires Only Fair/Limited Credit For Approval: As previously mentioned, you don’t need much credit experience to qualify for the Target REDcard. That’s great in the sense that it can serve as a cost-effective credit-building vehicle for people who might otherwise be stuck overpaying for less attractive terms. If you’re curious about where your credit stands, you can get your credit score for free on WalletHub.

The Lowlights

• Above-Average Regular APR: The Target REDcard sports a 23.40% APR, which isn’t the highest on the market but certainly isn’t low, either. In fact, it’s still below the 24.30% average interest rate for store credit cards and just a bit above the 22% average for “fair-credit” credit cards. With that in mind, it’s best to always pay your bill in full when using this card. 

• No 0% Introductory Rates: The Target REDcard won’t give you a break if you need extra time to pay off your purchases. It doesn’t offer any sort of reduced introductory interest rates on new purchases, and it doesn’t even allow balance transfers. Instead, the card’s above-average APR will apply from the jump if you don’t pay your bill in full.

  With that being said, you won’t be missing much if you have limited credit, as none of the other cards for which you would be likely to qualify offer 0% rates, either. But if you have above-average credit and wish to finance a big-ticket Target purchase, this offer obviously leaves a lot to be desired. 

• 5% Savings Exclude Prescriptions & Gift Cards: The fact that you won’t earn rewards when purchasing Target gift cards and Target prepaid cards makes sense. Otherwise, the REDcard rewards program would be all too easy to scam. But the presence of prescriptions and clinic services on the list of exclusions is a bit of a head-scratcher. And if they represent a significant portion of your Target spending, this particular shortcoming could ultimately be a deal-breaker.

Other Things To Consider

• Chip-and-PIN Security: The credit-card industry as a whole is currently engaged in a transformation from the magnetic-stripe security standard to protections based on embedded computer chips. But most credit cards have adopted a system known as chip-and-signature that is widely considered to be a half measure. It provides little benefit to consumers relative to magnetic-stripe credit cards, considering that all credit-card users benefit from $0 liability guarantees. And it won’t work at automated payment terminals abroad, such as you might find in a European train station or parking garage.

  Only chip-and-PIN cards, like the Target REDcard, provide such a benefit. Target was an early adopter of chip-and-PIN plastic following its infamous 2013 data breach. And though cardholders won’t benefit from chip-and-PIN’s global interoperability, its superior security should help keep your personal information safer.

Compared To The Competition

 

	Target Credit Card	Walmart® Credit Card	Best Buy Visa Platinum Credit Card	Amazon.com Credit Card	Capital One QuicksilverOne Cash Rewards MasterCard
Annual Fee	$0	$0	$0	$0	$39
Initial Bonus	N/A	15% discount on purchases made the day you open the account	10% back in rewards on your first purchase 5% back in rewards or special financing for 12 months	$50 Amazon.com Gift Card	N/A
Ongoing Rewards	5% discount on purchases made at Target	3% discount on Walmart.com purchases 2% discount on Murphy USA & Walmart gas stations 1% discount on all other purchases	5% back in rewards on Best Buy purchases 3% back in rewards on purchases made at membership clubs, golf courses, and sporting goods stores 2% back in rewards on purchases made at restaurants, bars, and grocery stores 1% back in rewards on all other purchases	3 points per dollar spent at Amazon.com 2 points per dollar spent at gas stations, restaurants, drugstores and office supply stores 1 point per dollar spent on all other purchases	1.5% cash back on all purchases
2-Year Rewards	N/A	$782	$141	$737	$856
Intro Financing	Not offered	Not offered	0% on Purchases for 6 to 24 months (5% fee)	Not offered	Not offered
Regular APR	23.40%	17.15% to 23.15%	25.74%	14.74% to 22.74%	24.99%
Editors’ Rating	5 Stars	2.5 Stars	4 Stars	4.5 Stars	4.7 Stars
Winner	Target Credit Card		Capital One QuicksilverOne

from Wallet HubWallet Hub


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Posted by: John S Kiernan

Rating: 4.5 / 5

The Verdict: What do you get when you tack the word “One” onto the name of Capital One’s flagship travel rewards card? One of the best offers for light-spending travelers with above-average credit, it seems. The Capital One VentureOne Rewards Credit Card is a slightly toned-down version of the long-popular Venture Card that opens up the savings party to a whole new segment of applicants wallowing in wanderlust.

In place of Venture’s $400 initial bonus for spending at least $3,000 during the first three months, VentureOne offers $200 for spending $1,000 over that same timeframe ­— making it more attainable, if less valuable. Rather that the miles equivalent of 2% cash back on all purchases, VentureOne gives you 1.25%. And it also throws in a couple of features that its sibling lacks: 0% financing on new purchases for 12 months (12.49% - 22.49% variable thereafter) and no annual fee.

All in all, VentureOne is a solid option for those who don’t charge enough to plastic to warrant paying an annual fee yet desire the flexibility to use credit-card rewards to subsidize any travel purchase they might make. To learn more about why this particular venture figures to be such a big earner, continue reading below.

The Highlights

• $200 Initial Bonus: If you charge $1,000 to your VentureOne Card during the first three months that you have it, you will receive 20,000 bonus miles that you can redeem for $200 in travel-related expenses that you incur using your card.

  In other words, you won’t use your miles to book your travel accommodations but rather to pay for applicable charges when your credit-card bill comes due. Your bonus miles will post to your account within two billing cycles of meeting the spending threshold.

• 1.25 Miles Per $1 Spent On All Purchases: Many rewards credit cards offer earning rates that differ depending on how your purchases are categorized or how much you spend, but Capital One plays no such games with VentureOne cardholders. It gives you a stable yield of 1.25 miles per $1 spent on all purchases, which effectively translates to 1.25% cash back. That’s above-average for the credit-card market as a whole.

• Liberal Definition Of “Travel-Related Expenses”: Some might assume Capital One’s definition of “travel-related expenses” to be rather limited. If you’re among them, you’ll be pleasantly surprised to learn that the following types of purchases all qualify:

Hotel reservations Airfare Train tickets Taxi/bus/limo fare

Cruise reservations Travel-agent fees Timeshare payments

• 0% New-Purchase Financing: VentureOne gives you 0% on new purchases for 12 months (12.49% - 22.49% variable thereafter). That can go a long way in saving you some money if you have a big-ticket expense coming up. Just make sure to use a credit-card calculator to plan your payments.

• No Annual Fee: Perhaps the biggest differentiator between the two Venture cards is how they treat membership fees. VentureOne doesn’t have any, whereas Venture waives its $59 annual fee only for the first year. That means you’d have to spend at least $7,867 in a normal year for the extra three-quarters of a point per $1 spent that Venture provides to pay off.

The Lowlights

• Potential For A Very High APR: VentureOne advertises a broad range of possibilities for its regular APR, perhaps indicating that a wide range of consumers can garner approval. Depending on your overall creditworthiness, balances that you carry from month to month beyond the initial 0% term will accrue interest at a rate that could be 12.49%, 17.49% or 22.49%. The low end of the range, likely reserved for people with pristine credit, is below the market average for “excellent-credit” credit cards, while the middle rate is below the average for good credit and the high end is above the average for fair credit, according to WalletHub Landscape Reports. 

• No 0% Financing For Balance Transfers: Contributing to the shaky ground on which VentureOne sits as a financing vehicle is the fact that its 0% promotion does not extend to balance transfers. Considering the rate at which we’re adding debt to our tab, this figures to be a major downside for many interested applicants.

Other Things To Consider

• Less Value With Non-Travel Redemption: You don’t have to redeem your miles for travel-related expenses, but you would be wise to do so. Capital One miles go furthest when redeemed for travel or gift cards, while opting for cash back or merchandise would mean sacrificing up to half of your value, according to WalletHub research.

• No Foreign-Transaction Fee: Like all of Capital One’s credit cards, VentureOne does not inflate the cost of the purchases you make while traveling abroad or shopping with an internationally based merchant by charging foreign-transaction fees. That’s certainly a good thing considering the card’s travel orientation, and it will enable you to save up to 6.41% on currency conversion, thanks to Visa’s favorable exchange rates. 

• No Balance-Transfer Fee: Although a balance transfer is somewhat less appealing without a 0% introductory interest rate in the mix, VentureOne’s lack of a transfer fee could help you save some money if you have an expensive balance and get approved for a relatively low regular APR. Using a balance-transfer calculator will help you determine whether such a transaction will be worthwhile.

Compared To The Competition

 

	Capital One VentureOne	Capital One Venture	Citi Double Cash	Capital One Quicksilver Cash Rewards	Chase Slate
Annual Fee	$0	$59 ($0 the first year)	$0	$0	$0
Initial Bonus	20,000 miles for spending $1,000 in the first three months	40,000 miles for spending $3,000 in the first three months	N/A	$100 cash after spending $500 on purchases in the first three months	N/A
Ongoing Rewards	1.25 miles per dollar on all purchases	2 miles per $1 spent on all purchases	1% cash back when you buy, plus 1% cash back when you pay	1.5% cash back on all purchases	N/A
2-Year Rewards	$913	$1,540	$1,141	$956	N/A
Intro Financing	0% on Purchases for 12 months	Not offered	0% on Balance transfers for 18 months (3% fee)	0% on Purchases and Balance transfers for 9 months (3% fee)	0% on Purchases and Balance transfers for 15 months (0% fee)
Regular APR	12.49% to 22.49%	13.49% to 23.49%	13.49% to 23.49%	13.49% to 23.49%	15.49% to 24.24%
Editors’ Rating	4.5 Stars	5 Stars	5 Stars	4.4 Stars	5 Stars
Winner	Capital One Venture			Chase Slate

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Posted by: John S Kiernan

Rating: 3 / 5

The Verdict: The Credit One Platinum Visa Card is one of the most popular credit cards for people with bad credit, thanks largely to its position as one of the few unsecured cards that will even approve applicants who are working their way back from damaged standing. In addition to a $300 minimum credit line, Credit One’s Platinum Visa offers rewards and regular credit-limit increases, or at least the potential for both. You’ll earn 1% cash back on gas and groceries as long as your account is not delinquent, and though you will be regularly considered for a higher credit limit, you are by no means guaranteed of actually receiving one. It all depends on how responsibly you use the card and how generous Credit One Bank is feeling.

Unfortunately, for all that the Credit One Platinum Visa gives you, it also takes an awful lot in return. It charges an annual fee that can be anywhere from $0 to $75 the first year (up to $99 thereafter), depending on creditworthiness, thus reducing your initial credit line to as little as $225. It also has an APR of 15.90% to 24.40%, based on your credit standing.

With all of that being said, your decision of whether to apply for this card should ultimately rest on your need, or lack thereof, of an emergency loan. If obtaining one is a necessity – to cover the cost of car repairs or medical treatment, for example – Credit One’s Platinum Visa will be one of your top options. But if you don’t need extra spending power, perhaps because credit-building is your top priority, then you’d be better off placing a refundable deposit on a no-annual-fee secured card.

The Highlights

• 1% Cash Back On Gas & Groceries: You will earn 1% cash back on every $1 that you spend on gas and groceries using the Credit One Platinum Visa, which will be dispersed to you in the form of a monthly statement credit. Although this is the market-average earning rate for a cash-back credit card, that’s actually great as far as a credit card for bad credit is concerned, as most such cards don’t offer rewards at all.

  The only factor that stands to limit how much you earn is your spending limit. Assuming you’re approved for a $300 credit line and you pay your bill in full on a monthly basis, you’d only be able to earn a maximum of $36 in cash back over the course of a year.

• Automatic Credit Line-Increase Reviews: Credit One Bank promises to regularly consider you for a higher credit limit if you get approved for the Platinum Visa as well as to automatically apply the higher limit if you’re deemed worthy of it. That is an obvious incentive when spending power is in high demand, as tends to be the case with unsecured credit cards for bad credit. However, it’s neither something unique to this Credit One Visa nor a guarantee.

  Most credit-card companies make it a practice to consider customers for higher credit limits; they just don’t always advertise it. What’s more, Credit One does not disclose either the frequency with which cardholders will be evaluated for an increase or the criteria used to make the final determination. This shouldn’t stop you from using your card as responsibly as possible (i.e. always paying your bill on time and maintaining reasonable credit utilization) in hopes of earning an addition to your credit line, but you shouldn’t count on it, either.

The Lowlights

• Annual Fee Of Up To $99: Not only does this card’s pricey annual fee promise to consume a healthy portion of your starting credit line, but you’ll also be kept in the dark about how much it will end up costing you until well after you’ve submitted an application. It could be anywhere from $0 to $99, depending on the state of your credit history as well as what credit limit you’re assigned. That’s a wide range, representing 0% to 33% of a $300 spending limit.

• High Interest Rate: It figures that you will carry a balance with this card at some point, considering that its unsecured credit line is among its main draws. Unfortunately, financing with this type of plastic also stands to be quite expensive. Balances will accrue interest at a rate as “low” as 15.90% or as high as 24.40%, based on your credit standing. For context, the average APR among new credit card offers is 18.16%, according to WalletHub’s latest Credit Card Landscape Report, while the average secured credit card charges 18.65%. Oh, and the Credit One Card’s terms and conditions note that although its rate is variable, it cannot exceed 29.90%. It’s not clear whether that should be reassuring or not. 

• Egregious Express Payment Fee: When you’re catering to a bad-credit crowd and thus charging high annual fees and interest rates to offset risk, it’s nonsensical to make it both more difficult and more costly for your customers to pay their bills. And that is exactly what the Credit One Platinum Visa does with its $9.95 “express payment” fee. This only increases the odds that cardholders will be unable to pay their bills at all, thus bringing delinquency and default into the equation. So, needless to say, you should skip the express payment option. The CARD Act requires credit card issuers to process payments either the same day they are received or the next, depending on the time. That means you shouldn’t get penalized for making a standard payment. 

• Fee For Requesting A Credit-Limit Increase: While good things may come to those who wait for a credit-limit increase, those who take matters into their own hands and proactively ask for more spending power actually stand to be punished for their brazen approach. More specifically, you may be charged a fee of up to $49 each time you request a higher limit, depending on your credit history and how long you’ve been a cardholder. That certainly isn’t something you come across every day, and thank goodness for that. 

Other Things To Consider

• $300 Minimum Credit Line: Credit One doesn’t disclose what the highest possible spending limit is for its Platinum Visa, but you’re assured of getting an initial credit line of at least $300 (and as much as $500) should you get approved. That should give you a sense of whether this card is capable of covering the emergency expenses that perhaps serve as your impetus for contemplating an application. 

• Free Monthly Credit Score: Credit-score access is extremely beneficial to people with damaged credit, providing a barometer with which to measure improvement. It should not, however, be the reason that you apply for this Credit One card. Many other credit-card companies offer free credit scores, after all, and the one you’ll get from Credit One updates only once per month. In contrast, WalletHub offers free credit scores that are updated on a daily basis. So you could always just use that and make your credit-card choice based on account terms only.

Compared To The Competition

 

	Credit One Platinum Visa	First Premier Bank Gold MasterCard	Capital One® Secured MasterCard®	Harley-Davidson Secured Visa	Milestone MasterCard
Annual Fee	$0 - $99 1st yr, $0 - $75 after	$75 - $125 1st yr, $120 - $173.8 after	$0	$0	$35 - $99
Minimum Deposit	N/A	$300	$49, $99 or $200	$300	N/A
Initial Bonus	N/A	N/A	N/A	N/A	N/A
Ongoing Rewards	1% Cash Back on Gas, Groceries, Mobile Phone Service, Internet Service, and Cable & Satellite TV Service	N/A	N/A	1 point per dollar spent on all purchases	N/A
2-Year Rewards	$72	N/A	N/A	$570	N/A
Intro Financing	Not offered	Not offered	Not offered	Not offered	Not offered
Regular APR	15.9% to 24.4%	36%	24.99%	23.49%	23.90%
Editors’ Rating	3 Stars	N/A	5 Stars	N/A	3 Stars
Winner	Harley-Davidson Secured Visa		Capital One® Secured MasterCard®

from Wallet HubWallet Hub


via Finance Xpress

Posted by: John S Kiernan

Rating: 4.7 / 5

The Verdict: The Old Navy Credit Card is a superb offer for people who do a lot of their shopping at Old Navy and its corporate siblings: Gap, Banana Republic and Athleta. Not only does the card score you a 15% discount on your first purchase at OldNavy.com after account approval, but it also awards you the points equivalent of 5% cash back at those stores. Plus, it doesn’t charge an annual fee.

As a result, it would yield roughly $184 in rewards over the first two years of use, based solely on the average person’s annual clothing budget of $1,846. In fact, it would likely amount to much more considering that earning 5,000 points in a calendar year, which you can do by spending as little as $1,000, qualifies you for “Navyist” status and a 20% quarterly rewards bonus. You’re therefore looking at earning about $221 during your first two years as a cardholder.

The Old Navy Credit Card is not, however, a worthwhile financing tool. It doesn’t offer 0% introductory rates of any kind, and its 25.49% regular APR is significantly higher than the market average for credit cards that require “fair” credit for approval. That means you should always pay your bill in full when using this card.

On that note, it’s important to point out that approval for an Old Navy Credit Card won’t mean the same thing for everybody. That’s because both the Old Navy Visa and the Old Navy Store Card are on the table when you submit an application, with the former being reserved for people with good credit and the latter available to those with fair credit. The two offers are basically identical, save for the store card’s use being limited to Old Navy-family purchases and the Visa offering the points equivalent of 1% cash back on all other purchases. And those differences shouldn’t concern you too much, considering that most people apply for an Old Navy Credit Card specifically to save at Old Navy, and 1% is merely the market-average earning rate for a rewards card, making it quite easily replaceable.

Keep that in mind as you take a closer look at this excellent retail credit-card offer below.

The Highlights

• 15% First-Purchase Discount: A 15% discount will apply to the first purchase that you make at OldNavy.com following approval for an Old Navy Credit Card. This offer expires 90 days after you open your account and is not applicable to the purchase of gift cards or to shipping costs. Such qualifications are to be expected, of course, and if you plan things strategically, this particular card feature can provide one heck of a welcome bonus. After all, there is no cap on the amount that you can save. 

• Up To 5 Points Per $1 Spent: Although the Old Navy Card’s initial discount does not apply to a purchase made at Gap, Banana Republic or Athleta, its ongoing-rewards structure does. You will earn 5 points per $1 spent at each of those stores, which translates to 5% cash back when you consider that 500 points (the minimum redemption amount) are worth a $5 gift certificate. Purchases made elsewhere, assuming you’re approved for the Visa version, earn 1 point per $1 spent, the equivalent of 1% cash back and roughly the market average for a rewards card. 

• No Annual Fee: Odds are you aren’t going to make the Old Navy Credit Card your sole spending vehicle. It’s excellent when it comes to clothes shopping, but the Old Navy affiliation doesn’t do you much good at the gas pump, for instance. That’s why the card’s lack of an annual fee is so important. After all, you probably don’t want to pay for what amounts to a specialist in your credit-card portfolio, which you may or may not use on a regular basis.

The Lowlights

• Points Expire: If you don’t use this card to make a purchase for 24 months, any unredeemed points that you’ve earned will expire. What’s more, although there is no limit on the number of points that you can earn in a calendar year, you cannot redeem more than $250 worth of points in any single billing period. You should therefore make sure to redeem on a regular basis so as to avoid a stockpile of earnings that will take months to unload when you’re ready to close your account. 

• Very High Regular APR: The Old Navy Credit Card charges interest at a 25.49% annualized rate. That’s high, even for a credit card. Just consider that the average “good-credit” credit card has a 18.14% APR and the average store credit card has a 24.30% APR, according to WalletHub’s latest Credit Card Landscape Report.

  With that being said, Old Navy sells affordably priced clothing, not big-ticket electronics or home appliances, so you’ll hopefully be able to always pay your bill in full and escape this dark side of the Old Navy Card. 

• No 0% Introductory Interest Rates: Although most Old Navy shoppers probably don’t find themselves needing 0% financing capabilities too often, the Old Navy Card’s lack of such an offer is important to note for a couple of reasons. For starters, many other store-affiliated cards do provide special financing of some sort, which creates a point of differentiation between the Old Navy Card and other offers. What’s more, the Old Navy Card is a Visa, which means its use is not limited to the retailer. That in turn brings outside financing needs into the equation and underscores this card’s unsuitability for certain types of consumers. 

• 3% Foreign Transaction Fee: Rarely will an Old Navy shopping trip take you beyond U.S. borders, but life might. And if the Old Navy Credit Card is your only plastic, any purchase that is either made or processed abroad will be inflated by 3%. It could therefore affect you if you travel outside the country or make purchases through internationally based merchants. And if you’re thinking that you can simply convert hard currency for use abroad, keep in mind that credit cards provide far cheaper exchange rates.

Other Things To Consider

• Reach “Navyist” Status By Spending $1,000+ Per Year: If you amass at least 5,000 points in a calendar year, you will qualify for “Navyist” status. This scores you a 20% quarterly rewards bonus, free shipping for online orders within the Old Navy family and free basic alterations on items purchased at Banana Republic.

  Upgrades are processed 90 to 120 days after you reach the 5,000-point threshold. Your account must be in good standing for you to benefit, and you have to qualify anew each year. 

• Up To $10 In Account-Communication Bonuses: You’ll get 500 bonus points for enrolling to receive paperless monthly account statements. You’ll also get 500 points if you provide your email address for the purpose of receiving notifications. Considering that 500 points can be redeemed for a $5 gift certificate, you’re looking at an easy $10 in savings. 

• Presale Access & Exclusive Deals: These are both self-explanatory and simultaneously uninformative. Old Navy doesn’t offer much detail on these particular perks, but you have to figure even murky access to presales and deals is better than none.

Compared To The Competition

 

	Old Navy Credit Card	Gap Credit Card	Walmart® Credit Card	Kohl's Credit Card	TJX Credit Card	Capital One Quicksilver Cash Rewards
Annual Fee	$0	$0	$0	$0	$0	$0
Initial Bonus	15% discount on the first purchase	15% discount on the first purchase	10% discount on purchases made the day you open the account	30% discount on the first purchase An additional 15% discount when the card arrives in the mail	10% discount on the first purchase	$100 cash after spending $500 on purchases in the first three months
Ongoing Rewards	5 points per dollar spent at Old Navy, Gap, Banana Republic and Athleta 1 point per dollar spent on all other purchases	5 points per dollar spent at Gap, Banana Republic, Old Navy and Athleta 1 point per dollar spent on all other purchases	3% discount on Walmart.com purchases 2% discount on Murphy USA & Walmart gas stations 1% discount on all other purchases	N/A	5 points per dollar spent on purchases at T.J.Maxx, Marshalls, HomeGoods and Sierra Trading Post 1 point per dollar spent on all other purchases	1.5% cash back on all purchases
2-Year Rewards	$221	$221	$782	N/A	$184	$956
Intro Financing	Not offered	Not offered	Not offered	Not offered	Not offered	0% on Purchases and Balance transfers for 9 months (3% fee)
Regular APR	25.49%	25.49%	17.15% to 23.15%	24.49%	27.49%	13.49% to 23.49%
Editors’ Rating	4.7 Stars	3.5 Stars	2.5 Stars	4.8 Stars	4.5 Stars	4.4 Stars
Winner	Walmart® Credit Card			Capital One Quicksilver Cash Rewards

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