What's the next best thing to getting everything for free? It's a credit card that offers cash rewards and cash back bonus with every card use. At the same time, it allows you to choose how to claim your cash rewards. For every Discover credit card application, you are guaranteed to reap the benefits from one of the first credit cards to offer cash back bonus with every purchase you make.

Your Discover Credit Card Application: How to Qualify
The only main requirement for being approved for a Discover credit card is a good credit background.

Your Discover Credit Card Application: What to Expect
With a Discovery credit card, you are immediately entitled to a 1% cash back bonus on all purchases you make using the card. On top of this, Discover offers 5% cash back when you buy from any of the popular categories from over seventy participating partner brands. Its rewards listings change four times a year, so you could you're your pick from a wide selection of gifts. Furthermore, you could also reap 5% cash back when you use your card to pay for gas, airline tickets, movie tickets, dinner at your favorite restaurant, or an outfit from Sears, for example.

Discover credit cards offer you more options on how to redeem your cash back bonus reward. It is up to you whether you want to credit this bonus to your account, have it deposited to your account, accept it as a check, or receive it in cash.

Your Discover Credit Card Application: Which Card is Right for You
One important thing to be aware of when applying for a Discover credit card is your spending habits.

Getting a credit card is very easy. Because of this, very few people take the time to think about the type of credit card they're applying for. Consequently, most end up with a plastic that is entirely incompatible with the life that they lead, or the spending that they do.

In choosing which type of Discover credit card to apply for, ask yourself the following questions.

1. Do I spend impulsively on items, especially if these are what I consider must-haves?
2. Do I save a certain set percentage of any unexpected windfall? Or, do I spend everything in one go?
3. How do I plan to use my Discover credit card? Will it mostly be for shopping? Cash advances? Emergency spending?

Your answers to the questions above can help you evaluate which card best suits your spending and your finances.

Your Discover Credit Card Application: The Whole Enchilada

Aside from the 1% on all purchases and 5% cash back bonus on popular categories that vary four times a year, Discover credit cards offer you these added benefits:

- online account-related services
- travel accident insured up to $500,000
- zero liability to card owner for unauthorized card use
- anti-fraud protection
- great discounts at participating partner brands

In addition, Discover credit card offers an excellent customer service. Efficient, professional, and dedicated customer service representatives are on standby to be of assistance to you. You can be assured that your concerns will be attended to by knowledgeable personnel who can help you resolve any issues you may have regarding your Discover credit card account.

Process your Discover credit card application today and open the door to a world of good buys, great rewards, and wonderful discoveries.

There's one image of your childhood you can't erase from your mind. At the end of every weekday, your dad follows the same coming-home-from-the-office routine. He walks through the door, drops his briefcase heavily to the floor, and trudges to the living room, grunting at anyone who has the audacity to greet him. This ritual always baffled you, but over time, you realized that you must never work for someone who could turn a kind, loving person like your dad into the Grinch.

So, because life as a humble salaried employee doesn't appeal to you, you hatch the brilliant idea of owning your own business. Starting up your own company, however, required more work than you had imagined. The hours are long, the stress is unbelievable. Still, you persevere, and after some time, you turn a profit. You remember the image of your father at the end of the workday, and in a spurt of generosity, you reward your staff with new business credit cards.

Small Cards for Small Businesses
Small business starter credit cards are becoming chic due to the recent number of home and small businesses skyrocketing. Depending on how your company functions, you can avail of several new low-interest business credit cards for your workers, from companies such as Advanta, Chase, and Open.

Business Benefits
Each of the cards offers benefits that meet the needs of various types of employees. For example, several of the new business credit cards, such as the Advanta Platinum Business Custom Card, the Gold Delta SkyMiles Business Credit Card, and the Blue Cash for Business Credit Card boast of a 0% Introductory APR, with introductory periods ranging from 6 months to an incredible 15 months! Also, the regular APR of the new business credit cards is quite low, ranging from about 8% to 20%. Some of the cards collect no Annual Fees from their cardholders, offering a nice holiday bonus to people on your payroll. Some charge an Annual Fee while others charge an annual fee only after the first year. Credit cards that fall into the latter category include the Business Gold Rewards Card and the Business Green Rewards Card from American Express's OPEN program.

Custom Cards
While these cards have different perks, your employees have different responsibilities, and the new business credit cards can cater to them. American Express's JetBlue Business Credit Card is perfect for salesmen who spend more time out of the office than in it, or inspectors who must assess out-of-town operations. Use this card to get an exclusive 5% discount on JetBlue flights. Also, the card provides protection for your trips, which include Baggage Insurance, Damage Insurance, and Car Rental Loss.

For your employees who make purchases for your company, the American Express SimplyCash Business Card is the perfect plastic. This new business credit card offers cash back on office supplies, wireless services, and gas. For nearly all other purchases, they can earn 1% cash back.

Lastly, to reward your employees for all the time and effort they put in day in and out, consider the Advanta Platinum Business Card. This card can be personalized by including your company name at the card's top. Create a sense of unity and cooperation by providing this card for your employees. This new business credit card also features a maximum credit line of $50,000, and $0 Fraud Liability.

There are tons of published reports of successful people and CEOs of companies who had bad credit problems by the time they graduated from college, and some with bad credit problems even before they graduated from high school. At those times in your life, having the ability to purchase things with "free money" is almost irresistible, but it sets up a habit that is tough to break and starts to put your credit rating on a downward spiral that increases in speed until you reach rock bottom.

Your credit score is calculated by the credit bureaus. There are three major credit bureaus – Equifax, TransUnion and Experian. But since they do not share information between them, and because different creditors and lenders report to different agencies, your credit score is almost certainly different, depending on the credit report you get from which agency.

A "perfect" credit score in today's world is 850, but you typically only get that if you are a multi-millionaire, have a significant number of accounts, and have not been past due with a bill since birth. A "good" credit score is around 700 and the average credit score is around 650. A score of 650 or more would indicate stability, being employed, keeping your financial head above water, with perhaps a few problems in years past but nothing really major. A score under 600 would be considered having bad credit.

But unless you have a credit score that is in the "excellent" to "perfect" range, and ESPECIALLY if you have bad credit, there are steps you must take to get your credit score raised. I am not talking about underhanded or illegal or shady tactics, but I am talking about things that most consumers don't know or don't take action on.

For example, did you know that a bad credit score can cause you to have to pay more for your car insurance premiums, even if you have never filed a claim? Did you know that if you are applying for a new job, your credit score with many companies carries even more weight than your qualifications for the job? Did you know that your mortgage interest rate could be as much as a full percent lower with good credit, which causes your mortgage payment to be hundreds of dollars higher just because of the bad credit you had when you got the mortgage?

Obtaining and keeping your credit score as high as possible is not just a one-time thing that you do and then forget about it. It is something that takes constant care and feeding, and regularly checking over. Does that sound like too much trouble? Only if you don't mind paying more for car insurance and loans and mortgages than you need to, or if you don't care about getting that higher-paying new job.

Settle your debts if you have past due accounts. Almost all creditors will work with you to come up with a payment plan that you can live with. They realize that if your account needs to go to their collections department, chances are that they may not even get the full amount owed, so for the most part they are willing to work something out. But it is YOUR responsibility to contact them and indicate a willingness to work something out. You would be surprised at how receptive they are to that.

Get a secured Visa or MasterCard account. This is one where your credit limit is exactly how much you have on deposit with the issuer. Use the card and make timely payments, which will be positively reflected on your credit report.

Get a copy of your credit report from each of the three major credit bureaus and go over it with a fine tooth comb. Chances are better than excellent that there are errors on the report. It is your right and DUTY to file a dispute with the credit bureau to get the inaccurate information removed, and if that was negative information (which it almost always is when erroneous data is reported), that will raise your credit score.

Also watch in your credit reports for accounts that you do not know about. The crime of identity theft is one of the fastest growing crimes of this century, and virtually anyone can be a victim of it. If you see accounts on your credit report that you have no idea what they are or where they came from, dispute it, because that could be an indication that you are a target of identity theft. Feel free to visit our web site to get more information about Prevent Identity Theft.

You can turn a bad credit score into a good credit score, but it does not happen overnight. But with work and diligence, it can be done and you will reap the rewards.

No matter where you go and what you do, you will need a means to pay for it. More often than not, you will be using some form of credit card. Credit cards are accepted by almost every vendor across the world.

Each has different rates, requirements, restrictions, rules, and yes, perks too.

The following are six easy steps to find the right credit card for you:

1.) Understand your credit - You must have a thorough understanding of how credit works before applying for credit cards in the first place. First, understand that the issuance of credit is a loan that must be paid back. Second, understand that you should pay your credit card bill on time monthly to avoid adverse information being placed on your credit file. Third, review your credit regularly; every 60 to 90 days is adequate. Fourth, if something is out of the ordinary, report it immediately.

2.) Know Thyself - Before you begin your investigation into currently available credit card offers, first evaluate your credit card needs, especially your spending habits and bill-paying habits. Why do you want another card? What do you plan to use it for primarily? Big purchases, regular use, or emergencies? Do you pay your monthly balances in full or do you pay them off slowly over time? Are you looking to consolidate debt or take advantage of an enticing rewards program? Once you know why you want a credit card and how you plan to use it, you're better able to evaluate which credit cards world best suit your needs.

3.)Prioritize Features - What qualities of your ideal credit card are most important to you? Low interest rate? Special 0% promotion on balance transfers? High limit? Airline miles? Cash back at the gas pump? Longer grace period? By the same token, ask yourself if there are any features that really don't matter to you that much at all.

4.)Compare, Contrast, and Narrow Your Choices - Now it's time to look closely at credit card offers currently available. Check with banks. Check online credit card directories and review sites. Check your mailbox for the latest offers. Check everywhere you can think of and rule out all those that don't meet your criteria. Now let's take a look at what you've got left.

5.)Look Deeper - Take this, hopefully, fine-tuned list of offers that meet your basic criteria and read the Terms and Conditions to all of them. Read all the fine print, no matter how tedious it seems. They may all look alike, but they're most definitely not. Find out what makes each of these cards different. Maybe one has an annual fee. Maybe one has a fee for balance transfers and another doesn't. Maybe one offers lower APRs on cash advances or better protection against identity theft or a heftier penalty for late payments. Each institution can devise their own rules and restrictions because as long as you agree to it by signing on the dotted line, it's valid and enforceable. What Terms and Conditions are you most willing to sign? Or, to put it another way, which one are you least unwilling to sign?

6.)Confirm - Confirms everything you've just found out about the card that you've decided to apply for. Applying for too many cards can damage your credit. Better to find one or two that seem right for you and apply only for those. Check with the bank or financial institution directly to confirm the terms of the offer and see if there are any additional stipulations not listed in the offer. Check third-party sources for reviews and customer feedback on your chosen credit card(s). Check with the Federal Reserve for the most updated version of any card's Terms and Conditions.

One of the most important ways to achieve and maintain excellent FICO credit scores is to carefully manage your revolving credit.

When I say, "revolving credit," I'm referring to any credit account you have where the monthly payment can vary. Credit cards are the most common form of revolving credit.

Of course, "revolving credit" refers to almost everything in your wallet or purse that's plastic that you can use to buy something. This includes American Express, Discover, MasterCard, or Visa credit cards. This also includes retail store cards such as Macy's or Target, and gasoline cards.

The exceptions are check cards and debit cards. These little dudes may be plastic and have a MasterCard or Visa logo, but they aren't really credit cards. They're more like plastic checks than anything else. Debit cards have nothing to do with your credit scores.

Why your credit reports can show that your credit cards are maxed out when they're not

In my case, my credit scores were lower than they should have been because I was using my personal credit cards for my business. An easy fix...I just applied for a corporate card and began using only that card for anything business related. (You should do the same if you have a small business.)

A few small business leases were also reporting as revolving accounts on my personal credit reports. Those were simple to resolve by just paying the small amounts off.

Then, I did a quick analysis of my credit reports.

The only way to really discover if revolving credit is lowering your scores is to do a quick analysis of your revolving credit accounts. (I'll show you how at the end of this newsletter.) That's how I found the big culprit that was destroying my credit scores...

Beware of home equity lines of credit

When I analyzed my credit reports I got a big surprise...I discovered several of my home equity lines of credit (HELOCs) were being misinterpreted as credit card accounts.

This was fooling the FICO scoring model into thinking that I had an enormous amount of credit card debt. But of course, I didn't.

What I learned was that HELOC accounts can look exactly like a credit card account on your credit reports.

When I was trained by Fair Isaac Corporation, I got a different story. I was told there are two situations when a HELOC won't be mistaken as a revolving credit card:

1. When the original amount of the line of credit is more than $50,000
2. If the account has a narrative attached to it (e.g., equity line of credit or real estate)

Even though Fair Isaac claims the above is true, I didn't find that to be the case with my HELOCs.

It's bad enough that my HELOCs were being mistaken as credit cards...but to make matters worse...all of my HELOCs were maxed out!When a HELOC is mistaken as a credit card, and it's maxed out, then it looks like you have a high-limit credit card and you're using all of its available credit—which lowers your credit scores. Ouch!

My HELOCs were lowering my FICO scores, and it was making it more expensive for me to get personal and business credit. This HELOC issue was a tough nut to crack. We were able to pay off a few of the smaller HELOCs. But we couldn't afford to pay them all off. So we decided to refinance them into home equity installment loans (HEILs).

What's better—a HELOC or a HEIL?

There are a couple of important differences between a HELOC and a HEIL. Once you understand the differences you can strategize on what's best for your credit and financial situation.

Here are the differences:

- A HELOC is a revolving account. This means you can have variable monthly payments determined by the balance you owe each month. A HELOC also allows you to take some or all of the available credit out as you need it...just like a credit card.

- A HEIL is an installment account (just like a car loan or mortgage). This means you'll have the same payment every month until it's paid in full. A HEIL lets you take out only a fixed amount in one lump sum.

- A HELOC could be mistaken as a credit card account by the FICO scoring model because they report as revolving accounts. However, a HEIL cannot be mistaken as a credit card account because a HEIL appears on your credit reports as an installment account.

Because of the effect HELOCs may have on our credit scores, my wife and I are now committed to always using HEILs to tap equity in our properties even though the interest rates are usually higher.

How to protect yourself against holes in the credit system

Here's a strategy you can use to insure yourself against the flaws we've been talking about in the credit system. If you want to tap into your home's equity, apply for the highest HELOC amount you can qualify for. Just don't use more than 10% of the limit. The most essential part of this strategy is your discipline after you're approved. If you can keep yourself from going out and buying things with your new line of credit, you can really protect your credit scores.

This way, even if your HELOC is misinterpreted as a credit card, your credit scores can't be hurt...in fact, it could even help them. So, a HELOC can be a good thing if your balance is extremely low or nonexistent.

My Wake-up Call

Had I not performed a quick revolving analysis of my credit reports—I never would have known my credit scores were suffering because of a simple credit misinterpretation.

Think about all of the things that can lower your FICO scores...late payments...too much credit card debt...too many inquiries, etc.

These are legitimate and understandable reasons why your scores would go down. But to lose points for a silly loophole in how HELOCs are reported is just...irritating.

It goes to prove what I've been teaching for more than 10 years now...having good credit takes more than paying your bills on time. Way more.

One pitfall of credit cards is the cash advance. Most credit cards will issue you a Personal Identification Number (PIN) so that you can withdraw cash at any ATM, just like a debit or bank card. Although the convenience is great, so is the cost. Cash advances from credit cards rarely, if ever, have a repayment grace period. In other words, interest accrues on your cash advance the minute you pull a greenback out of an ATM machine. This is in contrast to a purchase, where you might be afforded a period in which interest does not accrue.

Additionally, credit card companies charge more for cash advances than they do for purchases. If you read the fine print on your credit card fee schedule, you might find that the APR for cash advances is different than that of purchases or balance transfers. Not only do you pay interest from the minute you withdraw cash, you are paying more interest than normal. You might save more money if you purchased an item and sold it yourself.

Some credit cards will also charge you a cash advance fee on top of the higher interest rate. Add to this the ATM fees that banks will charge, and you have perhaps the most expensive way to put cash in your pocket. It’s always good to have the option to withdraw cash from your credit card, but only use it in an extreme emergency situation.

Another pitfall of credit cards is fraud. The new buzzword these days is “identity theft.” With the proliferation of shopping over the internet, it has become increasingly easy to use a stolen credit card to make purchases, not to mention telephone and catalog purchases. Further, pre-approved credit card offers can be swiped from mailboxes. Sometimes these offers will come pre-printed with personal information, including your name, address, phone number, and even your date of birth and social security number. This makes it extremely easy for another person to open an account in your name, or even represent themselves as you with your existing accounts.

Make sure you dispose of any pre-approved credit card offers securely if you choose not to take advantage of them. If you have no intention of obtaining a credit card from these offers, you can write to the address contained in the offer to remove your name from any further solicitation.

When a credit card bill arrives, some people never actually read the bill. They only read the minimum payment due, and maybe the balance. By doing so, you could be missing out on any potential fraudulent charges, or even honest overcharges. Scrutinize your bill to ensure that all charges are legitimate. You should also scrutinize the amount charged, as you might have been overcharged for something you bought. This can happen if the amount of your charge is manually entered into the credit card machine, instead of the machine obtaining the information from the cash register.

You should pay special attention to your APR and the finances charges. Credit card companies can increase your interest rate with no prior notice or warning, and they are within their rights to do so. The fine print of their cardholder agreement outlines the instances in which they can increase your rate. These events can include a late payment (even if it’s only 1 day late), going over your credit limit, and even the lowering of your credit score.

If you find that your APR is higher than when you applied, find out why. If it relates to your credit score, you might be able to get your rate back down to the original level if you raise your score. Get a copy of your credit report, find out your score, and take the necessary steps to boost it. You’ll save hundreds of dollars in interest charges in the long-run.

Perhaps you’re on the brink of entering this predicament. Perhaps you’re already months behind on some of your payments. There are a few steps you can take to dig out. First, write out all of your debts, including payments, balances owed, and interest rates. Include your mortgage or rent and every utility bill – cell phones, gym memberships, cable TV, car insurance, everything. Take inventory of everything you pay out.

With everything listed, prioritize which liabilities are the most important. Obviously, mortgage would earn the top spot on your list. Next would likely be your utility bills. Water, electric, and gas are absolute necessities.

After utilities, any car loan you might have would be pretty important, although you can look to reduce this expense. For example, you can sell your car and purchase a less expensive one. Hopefully, the new car will also be fuel efficient and less costly to insure.

Once you’ve budgeted for life’s top priorities, it’s time to start cutting the fat. See if there is anything you can cancel without penalty. Gym memberships, cable television subscriptions, magazine subscriptions, and even cell phones are not categorized as bare essentials. You can get television over the air for free. You can work out at home. You can go to the library or browse the bookstores to read magazines. You can get a pre-paid cell phone plan that doesn’t require a monthly commitment. Remember, once your financial affairs are straightened out, you can always re-subscribe.

This brings us to your credit cards. It is always important to pay all of your debt on time. However, if you are truly overextended, this may not be possible. If you know that you need to miss a payment on at least one or two cards, you should be proactive with your creditors.

Call each of your creditors and honestly explain your financial situation. Let them know that you will likely miss your next payment. Don’t make weak excuses. If you have a true hardship, you might find that your creditors might be willing to work with you. After all, it is in their best interest to do so.

If you’re already behind, many creditors will arrange a payment plan to help you to catch up. Let them know that you are sincere in your sentiment to bring your account current. Tell them how much you might be able to afford every month. Inform your creditors that you fully intend to catch up. Before you do, however, make sure you know exactly how much you can afford and stick to that number.

Unfortunately, it becomes a game of hardball. Either they have to accept a lower payment, or they accept no payment at all. If they agree to a lower payment, make sure you get the terms of the payment plan in writing. Some companies might charge you interest or penalties “in arrears.” This means that they’ll tack on the missed interest payment at the end of your loan, although this mostly applies to installment loans like car loans and mortgages.

If your situation is particularly dire, some creditors might allow you to skip a monthly payment or two, although this is rare. If they do offer it for you, be sure to get it in writing. You do not want to rely on the word of a customer service rep who might be working in a call center overseas.

Whether looking to request a payment plan, reduced payment, or a skipped payment, be persistent. If you don’t get the answer you’re looking for, call again. Most credit card companies are so large that you will never speak with the same person twice. Just because they all work for the same company doesn’t mean they all know what’s going on with your account. Call center workers have varying degrees of experience and responsibility. You just might get a different answer.

While you’re looking to negotiate with your creditors, keep an eye on your credit scores. You want to be able to minimize the damage to your credit. In fact, if you have a little time before you have to miss a payment, get a copy of your credit report to see what your credit picture looks like. If your score is a little low, look into ways to increase your score in the quickest amount of time. Then, you might be able to secure a debt relief loan to consolidate your debts.