Money Blue Book

Recession? What Recession? Presenting – The New Visa Black Credit Card

Currently, the economy is undergoing a major recession, with consumer spending tanking, and dire ramifications emerging for the future of our financial and banking systems. But if you examined the newly released promotional material and advertisement literature for the new Visa Black Card, you might have thought otherwise. With an eye popping annual fee and lavish credit card perks oozing to great  excess, this new credit card offer from the renown Barclays Bank definitely does not reflect the current mainstream economic sentiment.

The Original Black Card Craze

Years ago, the first card to emerge and promote itself through rumors and word of mouth marketing as the ultimate status symbol for high net worth spenders – was the American Express Centurion Black Card. With its extravagant spending perks and incredibly high credit limits, enough to buy a few palatial mansions and small estates with just a few card swipes, the Amex Black Centurion Card was considered to be the ultimate materialistic status symbol of its day, at least to those superficial few that actually cared about those types of things. Known as the first true “Black Card”, the Amex Centurion program’s strong reputation of exclusivity enabled it to attract the interest of a certain wealthy and high pedigree clientele – invite-only applicants, who were willing to spend more than $250,000 a year on their existing American Express credit cards and pay an annual fee of $2,500 to gain entrance into the exclusive program.

The New Visa Black Card – Another Card Designed For The Uber-Rich

Now, a new Black Card has emerged from the financial decadence of yesteryears, clad in black – this time from Barclays Bank Delaware – in the form of a more versatile and widely accepted Visa brand credit card. Now, for the low, low bottom basement price of just $495 a year (with absolutely no sarcasm intended of course), you can now get your grubby paws on and own your very own genuine Black Card courtesy of Visa. Fashioned from an admittedly attractive carbon graphite material (as opposed to the paltry plastic that adorns the credit cards of common peasant folk such as myself), and featuring a virtually unlimited credit limit with the ability to earn 1% cash back of all purchases, the new Black Visa Card appears to personify wealthy and power – or financial overkill – depending on how you look at it.

While seemingly totally out of place on a financial landscape littered with the dead and twitching bodies of former banking giants and credit lending organizations, the extravagant card features and exorbitant fees of the exclusive Visa Black Card from Barclays actually makes a lot of sense if you think about it. Rather than cater to the unpredictable credit card appetites and questionably untimely payment whims of ordinary consumers who may or may not be in the proper financial position at all times to pay back their credit card spending debts, why not peddle a product that targets the cream of the crop – the top percent of the American population with the vast financial means to afford their high spending lifestyle? Being not only able to rake in larger profit percentages from higher credit card merchant fees through the high rate spending habits of the financial elite, but also able to reduce the risk of dealing with ordinary Joe and Jane Plumbers struggling amidst a stagnant economy seems like the financial sure fire way to go in terms of profiting from credit card spending in an otherwise down economy.

Review Of The Visa Black Card’s Features and Offers

One of the Visa Black Card’s most aggressive promotional hitch is its unique exclusivity and selective membership. The card admittedly does state in its promotional tracts that the card is exclusive in nature and therefore not freely available to just anyone. While the Black Card’s exclusivity doesn’t stem from its availability to only just black people (as comedian Stephen Colbert comically lampoons in a Colbert Report TV skit), the card’s marketing material does state that the program will only be limited to the top 1% of U.S. residents – “to ensure the highest caliber of personal service is provided to every customer” as they put it. Whether this is indeed a fact or just an artificially generated gimmick to inspire awe and mythical reverence in the Black Card name remains to be seen.

For those with high credit scores who apply and are approved for the Visa Black Card, selected members get to enjoy the following supposedly exclusive privileges:

1. Limited Membership – Obviously a sought after feature for the high classy types who want to segregate themselves from the economic stimulus check-hungry masses.
2. 24-Hour Concierge Service – This privilege I do find very appealing – though I’m not sure what I’d use it for exactly.
3. Exclusive Rewards Program – Busy business travelers will definitely find the travel, airline, and hotel rewards very appealing, and the free upgrades worth the annual program cost of Black Card ownership.
4. Business Travel Insurance Protection – Road warriors may appreciate the worldwide travel insurance, baggage protection, and card purchase guarantees available to cardholders.
5. Luxury Gifts – Even rich people must appreciate expensive freebies.
6. Patent Pending Carbon Card – The card does look and feel pretty cool. It’s the ultimate buying tool – as the Black Card’s website wisely points out to those who may skeptically think otherwise.
7. Annual Fee Of $495 – *Gasp* Unless there’s a decimal point missing in that numerical figure, this is probably a deal breaker for non high net worth applicants. However, the pricey annual fee will probably not faze the Black Card loyalists out there.

Perhaps like all super credit card offers for the rich and famous, the greatest appeal of the Visa Black Card, aside from its apparent exclusivity, is its unique access to a free members-only concierge service that operates at your beck and call, 24 hours a day, 7 days a week via telephone and email. With the Visa Black Card’s concierge service, members get to enjoy personalized and complimentary assistance towards the fulfillment of their entertainment, travel, business, shopping, and lifestyle needs. For the ultra-rich clientele who is perfectly capable of affording anything they wish, oftentimes, it’s the ability to acquire a product or service on demand as soon as it’s desired that’s worth its weight in gold. The ability of the Visa Black Card to tap into a service whose sole purpose is to help you open doors and acquire access to difficult-to-find products, or acquire ticketing admittance to otherwise unobtainable sporting events or exclusive restaurants may appeal greatly to upper echelon card carrying customers.

So, Does It Make Sense To Apply For The New Visa Black Credit Card?

Obviously for those of you who couldn’t give a hoot, the Visa Black Card’s not meant for your financial tastes. But for the lot of you who do exhibit some interest, read on. While the Visa Black Card does indeed provide a measure of exclusivity and offer a myriad of attractive credit card benefits such as a 1% cash back reward rate on all card purchases and a frequently sought after introductory 0% APR balance transfer rate, many skeptics (myself included) may have a legitimate argument when we point out that the card doesn’t really offer anything that is genuinely exclusive or unavailable in other credit card programs. Many of the same high end perks of the Visa Black Card can be find in other high end card programs like the American Express Platinum, which offers virtually the same travel reward benefits and 24 hour concierge services, for the same comparable annual fee. One can even argue that the original “Black Card” – the American Express Black Centurion Card, stills promotes a greater sense of wealth and exclusive entitlement with its invitation-only application process. Unlike the Amex Centurion Card, the Visa Black Card can be directly applied for, while the Black Amex is by exclusive invitation only based on a pre-demonstration of the ability to record credit card charges at a very high rate for a certain period of time. It’s clear the Black Visa Card is going right after the Amex Black Centurion crowd, but I’m not certain the program sufficiently distinguishes itself other than by name only. Is simply slapping the Black Card label onto the credit card offer sufficient to give it mystique and appeal among the high end trendy crowd? I’m not sure.

For big time spenders and those who place value into such indicators of wealth and status, the Visa Black Card’s annual fee is easily paid for by the cash back offers, free gift rewards, and convenience of the 24 hour concierge services. But as an admittedly fairly frugal saver and spender, I’m not sure what type of status or self esteem boost I would gain from carrying around the carbon fiber credit card in my wallet. But then, I haven’t become a millionaire and reached wealthy status yet.

Note: The New Credit Card Rules Do Not Go Into Effect Until July 1, 2010

These days, it seems like whenever there’s a good thing going or some attractive opportunity for pecuniary gain or profit, the masses ultimately swarm the offer like locusts until they’ve completely ruined it for everyone else. This is how I feel about credit cards and the credit card industry. Credit card rewards and interest free balance transfers were once the easiest ways to make some free money on the side, but now that the Feds have enacted the new credit card law, all of that’s about to change.

As a big proponent of credit card use and an eager partaker of reward credit cards, balance transfer deals, and credit card arbitrage, I’ve been taking advantage of all that they’ve had to offer for some time now. Over many years, I’ve applied for and been approved for more than 25 credit cards. I’ve owned, carried, and used most of the major credit cards from Capital One, Bank of America, Citibank, Advanta, Discover Card, to American Express. Throughout college and into adult hood, I’ve used my squadron of credit cards to earn more than $10,000 worth of cash back rewards, redeemed point rewards for countless free gift cards, and accrued more than $15,000 of interest profit from balance transfer arbitrage. At its peak, I was carrying more than $100,000 in total credit card balances at one time, taking advantage of 0% APR credit card funds deposited into a high yield savings account to earn free interest money.

However, despite my aggressive credit card usage history, I’ve never paid a single cent in credit card interest, forked over a single late fee, or suffered a major long term FICO credit score hit. Currently, my FICO credit score stands at a very healthy 802, thanks to my solid credit history and lack of any late payments. In fact, I don’t even know what any of my credit card interest rates are as I’ve never had to deal with them before. I have always paid my monthly card balances in full and on time. As a naturally frugal saver, I’ve always lived within my means and eschewed unnecessary material goods . Since I started using credit cards at the age of 18 and made paying off my regular credit card balances a priority in my life, I’ve never had to pay anything to the credit card companies, and instead have managed to profit immensely from them.

Because of all this, I had mixed feelings when the federal government finally issued the new credit card rules and announced its plan to crack down on allegations of unfair and deceptive credit card practices by the credit card industry. While the new rules have the potential to benefit American consumers and essentially protect them from their own spending stupidity and consumerism negligence, the new changes are likely to rain on my parade and spell the end to the credit card party I’ve been enjoying for the past few years. However, despite my personal misgivings and the potential loss of a key cog of my personal finance arsenal, I think the new credit card rules and regulations were probably long overdue. Like the mortgage industry, the credit card sector has been in serious need of a good shakeup for some time. Lax federal oversight and governmental complacency has allowed the industry to get a bit too lax on basic fairness standards, permitting abusive and egregious predatory credit card practices to go unchecked.

Despite the Current Recession, The New Credit Card Law Don’t Go Into Effect Until Summer Of 2010

As evidenced by the huge credit bubble that finally popped recently, America has had a love affair with debt and leverage for the last two decades. This abundance of credit in all forms caused many to become drunk with highly leveraged spending power, leading many down the path of out of control shopping, and encouraging the tapping of home equity to pay off credit card balances. The credit card industry’s practice of packaging and selling credit card debt to investors and hedge funds encouraged the growth of exorbitant risk penalties, over the credit limit fees, and all sorts of balance transfer and cash advance charges. Driven by the natural pursuit of profits, the credit card issuers eagerly raked in the ever increasing interest charges and late payment fees. Eventually the subprime mortgage crisis destroyed the housing market and in turn caused a chain reaction devastation that led many credit card consumers to no longer be able to handle their credit card payments, leading to a rise in defaults and ballooning non payment scenarios.

Wallowing in their own mismanagement mess and inability to control their spending habits, consumers ultimately turned to the federal government for bailout assistance. After bombarding the Fed with over 65,000 public comments (the highest number ever received by the federal government on any one issue offered up for comments), the Fed finally responded and issued an announcement of its approval of new credit card rules to combat what regulators labeled as unfair or deceptive credit card industry practices.

In its combined action and announcement, the Office of Thrift Supervision, the National Credit Union Administration, and the Federal Reserve Board approved the new credit card rules, sending a financial tsunami through the the banking and credit card industry. From here on, it is clear that these new rules will fundamentally rewrite the way future credit cards are packaged, marketed, and priced for consumers and small businesses. Despite the significant moves, some lingering critics remain displeased at the effective date of the new rules – July 1, 2010 – and argue that consumers need the new rules now to protect them from overbearing credit practices already in place in light of the current ongoing economic recession and not wait until mid-2010 when the recession may already be over. Of course, the industry has indicated that it needs the lengthy amount of time to adapt to these newly enacted regulations.

How Will The New Credit Card Rules and Regulations Affect You and Make Your Debt Reduction Life Easier?

1) No More Interest Rate Hikes On Existing Balances – Previously, as was the routine practice by the credit card issuers in recent years, credit card interest rates could be increased and jacked up on a whim with only a short notice to the customer in one of those fine print letters that nobody ever actually reads. With the new credit card regulations, interest rate hikes will not be permitted on existing balances and rate increases will only be allowed under limited circumstances such as on future purchases, new cash advances, when a promotional or introductory rate ends, or in response to an actual late payment in violation of pre-existing card agreements. This is one of the biggest changes and one that I wholeheartedly agree with. However, as one who has always paid off his card balances on time and has never paid late fees or credit card interest charges, my advice to all is to always pay off balances on time and in full to avoid having to even worry about credit card interest rates to begin with.

2) Interest Rates Cannot Be Raised Until A Payment Is Over 30 Days Late – Under the new credit card rules, interest rates for existing balances can only be increased if there is an outstanding payment that is over 30 days late. This change eliminates the old practice of allowing credit card companies to increase or double your current APR interest simply if you run up a large balance on your cards (to force you to pay those balances off quicker than you’d like). In addition under the new rules, card lenders must give cardholders at least 45 days of advance notice in the event of interest rate changes, including rate hikes due to 30 day late payments or non payment penalties. Previously, card issuers frequently gave notice of 15 days or less.

3) No More Universal Default – Credit card companies will not longer be permitted to raise current interest rates on cardholders simply because of their payment history or track record with other unrelated creditors such as landlords, utility companies, or even with different credit card issuers. Previously, universal default essentially allowed card issuers to raise rates arbitrarily by alleging cardholders had universally defaulted on all existing loans simply with a single violation against one unrelated debt account. While many card issuers like JP Morgan Chase have already discontinued this practice, this new rule compels the rest to follow.

4) No More Double Cycle Billing – While the immensely illogical practice of two cycle or double cycle billing is predominantly already a thing of the past with most card issuers having already abandoned this ridiculous practice, the new rules will officially end the loophole. Double cycle billing is the practice of calculating interest on daily card balances from more than just the previous 30 days. This billing practice hurts consumers who pay off their balances in full in one month but not in the next, because it irrationally averages multiple month balances to generate interest fees for credit card companies. Thus cardholders end up getting hit with finance charges and interest fees from the previous billing cycle even though they have paid the bill in full.

5) Card Payments Applied To Higher Interest Rate Balances First – One of the most significant new changes (and perhaps the most important), will help compel the practice of fair allocation of payments – a great future benefit to consumers, particularly those that engage in 0% balance transfer offers, cash advances, or ATM withdrawals that carry different interest rates. Any new payment above the credit card bill minimum must automatically now apply to the part of the balance with the highest interest first. For those who have multiple balances on the same account at different interest rates, this new rule will prohibit card lenders from applying payments towards lower interest balances first before applying them to the higher interest ones. This will stop the seemingly unfair industry wide practice of applying monthly payments to the cheaper credit card balances first, while letting more expensive balances accrue interest charges at higher rates.

6) Longer Payment Grace Periods Of At Least 21 Days – Credit card issuers will be required to offer consumers  a reasonable amount of time to make payments on monthly credit card bills – at least 21 days after bills are mailed or delivered. This will help protect consumers from shrinking payment periods and give them a reasonable amount of time to make payments before late charges and interest fees are applied. Personally, I don’t even know how long my credit card grace periods are as all my cards are set up with automatic bill payment that automatic pulls money from my linked checking account to ensure I never have a late payment. I highly encourage the use of automated debit payments. It makes life easier and much more hassle free.

7) No More Unreasonable Fees For Exceeding Credit Limit Because Of Hold On Account – This addresses a basic fairness problem some cardholders have been experiencing, particularly those who travel a lot. Oftentimes when consumers make reservations for rental cars or hotel rooms, merchants will place a hold for a certain credit limit amount on credit cards as a security deposit beyond the purchase amount. While the security deposit hold is in effect, the card’s credit limit is temporarily reduced, making it more likely for the cardholder to accidentally exceed his or her credit limit in the meantime with additional charges and thereby incurring an over the limit charge or fee. The new rules do away with excessive fees in such a scenario.

8) Limitations On Bad Credit Credit Card Fees - This new credit card rule change has the potential to reign in fees for subprime credit cards big time. Subprime credit cards that target people with bad credit will no longer be allowed to charge hefty upfront fees with the new limitations. What was happening was that these subprime credit cards (high interest cards for people with low credit scores with $500 credit limits) were charging applicants with upfront fees that totaled half the credit limit and demanding fee payment in less than a year. The new regulation will severely reign in these fees, but essentially eliminating the future of credit card offers for people with bad credit altogether.

9) Disclosure Of Foreign Currency Transaction Fees – While most people are not aware, international credit card users have had to pay extra fees for credit card transactions charged overseas in foreign currency denominations. While these extra foreign currency fee charges remain perfectly legitimate, the new rules require issuers to clearly list the fees and do a better job of publicizing then to the consumer so that it doesn’t come to them as a surprise.  The disclosure of all fees charged for purchasing goods or services in a foreign currency or for using the credit card outside of the United States will need to be made on a table on credit card applications and marketing solicitations, and not just in tiny fine print when the account is initially opened.

10) Better Overall Disclosure of Credit Card Terms and Conditions -  The new federal rules will require all credit card terms to be disclosed and marketed more clearly to consumers. Card issuers will need to clearly disclose and provide notice regarding important terms and conditions like payment due dates and times, as well as how interest rates and fees will be applied to those making only minimum payments each month. Some credit card issuers have been sneakily shifting around payment due dates and mandating arbitrary payment times, such as setting cut off times at 1:00 pm or on a weekend or holiday. These rules will prohibit such unreasonable and arbitrary practices. As mentioned above, any change to existing credit card terms will need to be expressly disclosed to the consumer at last 45 days before they take effect.

Goodbye Credit Card Rewards, Introductory Teaser Rates, and 0% Balance Transfer Credit Card Offers

The new credit card regulations issued by the federal government will have a significant negative impact on the credit card industry and the future of credit card use in the United States and elsewhere as issuers re-evaluate their existing business and risk pricing models. Because the new rules will severely restrict the ability of card issuers to modify pre-existing interest rates and card terms in response to changes they perceive as credit risk factors (known as interest rate pre-pricing), it is likely all new credit card interest rates will increase as a result, along with a severe reduction in credit availability. All existing rates in place prior to the effective date of July 1, 2010 will likely go up tremendously as well (even for those with excellent credit history scores). Because the new rules do not mandate a ceiling on how much credit card issuers can actually charge for interest fees or late payments, consumers are likely going to be slapped with even higher rates from hereon. With the credit card industry, it comes down to profitability and redistribution of costs. Because of the new rule changes, credit card issuers are likely going to lose a significant amount of money (more than $10 billion a year) in lost interest payments and fees. Instead of eating up the loss and taking their lumps, they are likely going to pass them onto consumers through stiffer interest rates and less favorable credit card reward terms.

The new regulations will have several unintended but perfectly foreseeable consequences as well, including a severe reduction or complete elimination of popular low interest deals, 0% APR balance transfers, and 0% purchase credit card offers, even for those with very high credit scores. The new rules greatly favor those who are irresponsible with credit card usage and those who were never meant to carry credit cards to begin with, and will punish the prime borrowers by eliminating the vast majority of all cash back credit card offers and interest free promotions. Only time will tell whether all such offers will be eliminated en masse, or whether the industry will be able to find a way to stay profitable and continue to offer purchase and usage incentives for consumers.

Despite the fairness benefits of the new credit card rules, here are some of the ways the changes will negatively affect credit worthy consumers:

• It will be much more difficult to qualify for credit cards as credit availability in compliance with the new rules will dry up.
• Substantially higher credit card interest rates overall, even for those with excellent credit scores – primarily to compensate the card issuers for their loss of income under the new rules.
• No more 12 month zero percent balance transfer offers with no balance transfer fees – likely to be replaced with high balance tranfer fees or low interest credit card offers instead.
• There will be a signficiant scaleback of credit card rewards, cash back incentives, and frequent flyer airline mile programs for responsible credit card use. Goodbye juicy credit card promotions.
• Severe reduction or total elimination of bad credit cards, forcing those with poor credit to seek higher credit and riskier options such as payday loans or pay day cash advance.

As always with life, it seems financially responsible individuals such as myself always seem to get the shaft. It’s always the bad home mortgage borrowers, bad credit card users, or the irresponsible spenders who ultimately get bailed out by the government – taking all the credit card goodies enjoyed by the responsible credit card consumers with them.

Updated List Of The Best Capital One Credit Cards Below

What’s In Your Wallet? – So goes the motto and promotional tag line from those zany Capital One credit card ads we’re always seeing on TV. When it comes to Capital One, the credit card company’s message is clear -  it wants you to evaluate your choice of credit cards and make sure you are taking steps to maximize all cash back credit card rewards and low interest opportunities available to you.

Capital One is one of the major credit card issuers in the United States, having distinguished itself over the years with its wide reaching mass marketing efforts, particularly during the 1990’s when the company experienced tremendous growth and a phenomenal surge in market share. Through its aggressive marketing and promotional efforts, Capital One has situated itself as a major player in the credit card market with its huge and broad lineup of credit card products. Since its initial start into consumer lending, Capital One has joined the ranks of Citibank Citi Cards, Bank of America, JP Morgan Chase, Discover Card, and American Express as the dominant credit card lenders in the U.S. and Canada. Today, the company is actually one of the largest, if not the largest independent issuer of Mastercard and Visa credit cards. The company has since transformed itself into a giant bank holding company with a diverse brevy of financial services and products that include credit cards, auto loans, home mortgage loans, small business loans, and various interest-bearing high yield savings accounts and certificate of deposits.

Capital One’s Quest To Mass Market and Diversify Its Financial Services Beyond Just Credit Cards Offers Customers More Choices

Capital One made its name in the national credit card business by utilizing a mass mailer approach to appeal to a wide spectrum of credit card consumers, from subprime bad credit credit card applicants to high FICO score candidates. Since its decision to re-brand itself into a diversified national banking institution, the company has been steadily buying up regional banks and growing its base of consumer deposits. Most recently, Capital One bought Chevy Chase Bank, a major local regional bank with a huge network of banking branches in my neck of the woods of Maryland, Washington D.C., and Virginia. While Capital One’s continued quest to invest in regional banks across the United States has allowed it to stave off some of the devastating negative effects of the subprime mortgage crisis that has eliminated several other major banks like Washington Mutual and IndyMac, the overall economic downturn has not left the company completely unscathed. Due to the deteriorating economic climate, recessionary pressures, and unemployment effects, card consumers as a whole have been getting slower at paying off their credit card bills, contributing to the rise in credit defaults and delinquent loans.

While Capital One has significantly less direct exposure to toxic subprime mortgages than most of its peers, it has significant exposure to the problematic consumer and small business credit card market. However, due to its steady conversion and transition into a major bank holding company through local acquisitions, the company is likely to weather this current economic storm well and remain a financial leader in the credit market by taking key steps to stay competitive. In response to the economic malaise, Capital One has since pulled out its major subprime credit card offerings in favor of credit card reward and 0% balance transfer purchase programs that encourage more responsible credit card usage.

Apply For Capital One’s Pre-Established List Of Credit Card Rewards and Low Interest Deals, Or Build Your Own Offer With The Capital One Card Lab

One of the distinguishing factors of Capital One is its staunch focus and emphasis on program customization and providing a large array of choices for consumers and business owners. This strategy and approach is completely different from that promoted by Discover credit card or Advanta credit card, which rely on a small portfolio of highly targeted products. Instead, Capital One offers every credit card reward, 0% balance transfer offer, and airline miles credit card feature possible, all packaged into varying forms for those with differing credit worthiness scores. Currently, you can find a Capital One card offer for just about any interest rate or reward formula, at any credit rating or credit score level. In fact, the company even offers you the ability to build your own personalized Capital One credit card to suit your needs and purposes using the Capital One Card Lab, the centerpiece of its recent television and print advertising efforts.

With the Capital One Card Lab, you have the ability to create a customized credit card package by choosing your own APR interest rate, credit card rebate, airline travel rewards, cashback percentages, introductory deals such as 0% balance transfer or 0% purchases, or annual fee (if any). Of course, it’s a give and take as you can’t have everything Capital One gives you in one card and all of your choices will be balanced out in some way. For example, if you want to earn the highest cash back rewards, you may have to give in to a slightly higher interest rate or a shorter introductory balance transfer period. However, if you want low interest or 0% balance transfer and purchase offers, you may have to settle with fewer rewards. The choice is up to you when you decide to customize using the Capital One Card Lab instead of going with pre-existing Cap One offers.

The Best Credit Card Offers Are Reserved For Those With Excellent Credit Scores, But Average Credit Seekers Have Options Too

When it comes to its array of credit card products, Capital One card offers are issued based on the applicant’s credit score and credit report history. The credit levels of – excellent, good, average, or limited – will determine your card’s terms and conditions. Obviously those with higher FICO credit scores will get the best 0% APR teaser rates and enjoy the highest purchase rewards compared to their bad credit credit card counterparts. To determine your Capital One credit level, here is a quick guide to the qualification requirements and specifics. The dollar figures in parenthesis “(  )” are approximate credit limit ranges offered depending on your credit level type.

• Excellent Credit ($500-$20,000) – Must have had a loan or credit card for at least 5 years with credit limit above $5,000, and have not been more than 60 days late on any credit card, medical bill, or loan in the last year. Must never have declared bankruptcy.
• Good Credit – ($500-$15,000) – Have had a credit card for 3 years or more with credit limits above $5,000, and have not been more than 60 days late on any credit card, medical bill, or loan in the last year.
• Average Credit - ($300-$3,000) – Have had a loan or credit card before, with credit limits less than $5,000. May have been late on more than one credit card, bill, or payment in the last 6 months.
• Limited Credit -  ($300-$3,000) – Have never had a credit card or have limited usage of it. Have a limited credit history, for example due to status as a student, new to country, age, or having been an authorized user on someone else’s credit card. Needs to have a valid credit score from one of the major credit reporting companies.

List Of The Best Capital One Credit Cards:

The following are reviews of the best Capital One credit card offers. Instead of applying for existing offers, you are free to mix and match your own preferred card program with the Capital One Card Lab. If you are not inclined to build your own credit card from scratch, feel free to select from the following recommended offers depending on your credit level.

No Hassle Cash Rewards and Point Rewards

1. Capital One® No Hassle Cash(SM) Rewards -  (Good Credit) – Automatically earn 2% cash back on purchases at gas stations and grocery stores, and 1% cash back on all other purchases. There is no limit to the cash back rewards you can earn, and your cash rewards never expire. You can also save money with a 0% APR purchase rate until August 2010. There is no annual fee.
2. Capital One® No Hassle Cash(SM) Rewards – (Average Credit) – Earn unlimited 1% cash back on all purchases with this card, along with a 25% annual bonus on the cash rewards you earn during the year. There is a 0% APR offer for all purchases until May 2010, with no annual fee.
3. Capital One® No Hassle Points(SM) Rewards – (Excellent Credit) – Earn unlimited 2% back (2 points per dollar) in point rewards for purchases at gas stations, grocery stores, and drug stores, plus 1% back for all other purchases. Enjoy a 0% introductory interest rate on purchases until August 2010. There is no annual fee
4. Capital One® No Hassle Points(SM) Rewards – (Average Credit) – Earn unlimited 5% back (5 points per dollar) for purchases made at gas stations, major grocery stores, and drug stores, and get 1% back for every dollar spent on other purchases. Your reward points never expire for the life of your account, and the reward credit card also features an ongoing 0% APR offer on purchases until May 2010. There is no annual fee.

No Hassle Airline Mileage and Travel Rewards

1. Capital One® No Hassle Miles(SM) Rewards 1.25 Miles Rewards (Excellent Credit) – Earn unlimited 1.25 miles for each dollar spent on purchases (25% more than regular airline miles credit cards). Your reward miles can be used to redeem for cash, gift cards, or book travel with any airline, hotel, cruise line, or rental car provider with no blackout dates or seating restrictions. Purchases also enjoy 0% APR interest until August 2010. There is no annual fee. Those with only good credit, as opposed to excellent, should apply for the good credit version of this No Hassle Miles reward card.
2. Capital One® No Hassle Miles(SM) Ultra-For Professionals – Earn unlimited 2 miles per dollar spent on all purchases, redeemable for cash, gift cards, or travel rewards with no redemption blackout dates or seating restrictions. This reward card is a very high mileage earner, perfect for personal heavy airline travelers or small business owners.
3. Capital One® Orbitz® Visa Signature – Those with excellent credit can earn 3% back in rewards points for money spent on eligible Orbitz bookings, and 1% back on all other purchases. There is no point limit on rewards that are redeemable  for travel, cash back, and gift cards. There is no annual fee. Those with only good credit, as opposed to excellent, should apply for the lower credit limit good credit Orbitz Platinum Card, and those with only average credit should consider the average credit Orbitz Platinum Card instead.

Low Interest Rate, Balance Transfer Offers, and 0% APR Purchases

1. Capital One® Platinum Prestige – Mastercard - Those with excellent credit ratings can save money with this Capital One credit card’s 0% APR offer on both balance transfers and purchases until August 2010. Thereafter, you get a low interest rate with no annual fee.
2. Capital One® Platinum – (Good Credit) – Those with at least a good credit history can save money via a 0% introductory offer on balance transfers and purchases until August 2010. There is no annual fee pursuant to this 0% credit card offer.

Card Offers For Those New To Credit, Or Those With Limited Or Average Credit History

1. Capital One® Standard Platinum – (Average Credit) – Those with only average credit can qualify. Annual fee is $19.
2. Capital One® Platinum Max(SM) – Those with only average credit can qualify for a competitive fixed interest rate that won’t change for at least 3 years. The annual fee is a low $19.
3. Capital One® Classic Platinum MasterCard – With either the Classic Visa or Classic Mastercard version of this particular low interest Capital One offer, those with average credit can also enjoy 0% APR on all purchases until May 2010. The annual fee is $19.

Updated List Of The Best Discover Credit Cards Below

In the United States and Canada, most people are familiar with major credit card networks like Visa, MasterCard, and American Express. However, fewer people have had experience or exposure to another quiet, but big player in the credit card industry – Discover Card. Introduced in the 1980’s as the preeminent card of choice for the Sears department stores (the dominant retailer at the time), the Discover Card has had its share of ups and downs in terms of card acceptance and popularity, and has been facing a tough battle for its piece of the pie recently. Currently, Discover has the lowest market share of any major credit card issuer in the United States, and overall card acceptance at smaller stores and remote markets remain spotty. Most of the major merchant stores and retailers take Discover for payments, but smaller retailers and more obscure websites are less likely to accept it. However, despite the highs and lows over the years, the Discover Card has managed to evolve its program with attractive offers to grow with the times and remain continuously relevant.

The Discover Card was the first credit card I ever applied for and my first exposure to the use of revolving debt. I applied for the Discover Card back in high school during the height of its popularity, because at the time it was my parent’s primary credit card for everyday purchases. Since then, I’ve applied for other cards, but my old Discover Card remains a nostalgic favorite that I still use for niche purposes like gas credit card purchases or interest free transactions like 0% balance transfers. One thing I’ve noticed about Discover is the credit card program’s resiliency over the years in the face of stiff competition from giants like Visa and MasterCard. Despite the current credit crisis in the financial markets that has wrecked havoc and caused major pullbacks in card offers among major credit card issuers like Bank of America and Citibank, Discover has not retreated from its existing array of promotions.

Discover Card’s Benefits Include High Cash Back Credit Card Rewards and Attractive Balance Transfer Offers

Because of its relatively small share of the credit card market, Discover Card has needed to distinguish itself to consumers by offering more competitive reward credit card deals and more appealing 0% balance transfer promotions than most. The company has a history of frequently sending out mailers to prospective customers with tantalizing 0% APR and low interest balance transfer for life offers. Among the many benefits of carrying a Discover card, not the least of which is that the card has no annual fee, the card offers a relatively attractive selection of card offers to pick from. Discover Card currently has four line ups in its credit card offerings – the Discover More, the Discover Motiva, the Discover Open Road, and the Discover Miles card – and all four card types offer its own different reward and interest free benefits packaged into consumer, business, and student card variations. For example, the Open Road Discover card type appeals to drivers with its high cash back credit card reward rebate for gas purchases, and the Miles card appeals to business airline travelers or consumers who want to rack up frequent flyer miles quickly for free airline tickets. Other than the Discover credit cards issued directly by Discover, the company also issues Discover branded cards under the trademark of other major retail names like discount giant Walmart and wholesale warehouse Sam’s Club.

All Discover cards also qualify for high reward earning opportunities under the Shop Discover Card program. By shopping through the ShopDiscover website portal to visit its broad lineup of online stores such as Barnes & Noble, Sports Authority, Circuit City, and Hotwire, cardholders can earn extra rewards up to an additional 5-20% cash back on all purchases.

Exclusive Discover Business Credit Card Benefits Such As Free and Easy To Use Purchase Checks That Actually Earn Rewards

For its top business credit card line up, Discover also offers a very unique and intriguing benefit – the ability to write and issue fee-free Discover Card Purchase Checks. Sometimes, small business owners or entrepreneurs run into merchants or suppliers that do not accept credit cards. Discover PurchaseChecks work just like your regular credit card. When you encounter a store or retail merchant that does not accept credit cards or specifically, the Discover Business Card, simply write a check out to the merchant for the amount of your purchase. The check will appear with all your regular Discover Card transactions as a regular purchase, helping you with expense accounting and bookkeeping. Purchase Checks may be used to make any business related purchase when credit cards would otherwise not be accepted. Best of all, there is no fee or charge to use Purchase Checks and transactions are recorded as credit card purchases. All checks written get the standard interest rate offered to ordinary credit card purchases rather than the high interest rate demanded of cash advances. Quite remarkably, amounts written on Purchase Checks also earn credit card rewards, something almost unheard of among other credit card reward programs.

Of course, this raises a very interesting proposition and a rather sneaky idea for consumers and part time small business owners like myself. As we all know, consumers and non-business owners can apply for business credit cards by submitting their Social Security Number as their business ID on business credit card applications. As such, ordinary consumers can apply and qualify for business credit cards like the Discover Business Card to take advantage of benefits like  Purchase Checks. One interesting idea for credit card reward seekers would be to utilize rebate-earning Purchase Checks to pay the rent, which for many people is frequently in excess of $1,000 a month easy. For the rule abiding folks, the official stated policy of Discover Card is that PurchaseChecks may not be used to pay rent, but I guess it begs the question – how would Discover Card otherwise be able to realistically tell the difference between Purchase Check payments that you write to your landlord, and checks given to genuine business merchants? Just something to ponder about.

Current Acceptance Of Discover Card In the U.S. And Around The World

I don’t think anyone really thinks the Discover Card program is completely lacking in the way of credit card purchase rewards or 0% balance transfer offers. The knock against Discover Card has always been their seemingly weak acceptance and usage rate in the US and other foreign locations where Americans predominantly visit. Despite reportedly having over 50 million cardmembers in the Discover Network, unlike its more well known competitors like Visa or MasterCard, the Discover Card is neither widely issued nor widely accepted outside of the United States and Canada. Even in the US, while it’s accepted at most major locations like gas stations, supermarkets, mall outlets, department retailers, and online stores, it’s not always compatible with all retail merchants that accept credit card payments.

Undeterred, Discover continues to expand its adoption nationally and internationally, signing semi-exclusive agreements with certain major retailers, and partnering with big time credit and debit card networks in the US and overseas. Discover currently has a special card agreement with major retailers Walmart and Sam’s Club to issue store branded Discover cards. Per arrangement, wholesalers like Sam’s Club currently only accepts MasterCard and Discover, but not Visa or American Express. Despite the lack of international acceptance overseas, Discover has been making major inroads into countries like China, having recently signed a partnership agreement with card payment network China Union Pay (the largest credit card network in China) to accept Discover Card payments anywhere that displays the Union Pay logo. This means that you can pull out your trusty Discover credit card to pay anywhere that accepts China Union Pay.  Like Capital One credit cards, neither Discover nor Cap One charge extra interest fees for foreign credit card transactions, making them the best international credit cards to own. While places like China still remain primarily a cash based economy, card usage is growing rapidly and as China Union Pay remains at the forefront, Discover stands to enjoy unique growth potential in future market share.

Reviews Of The Top Discover Credit Cards (Consumer, Business, and Student) With Rewards and Balance Transfers:

1) Miles Card by Discover Card – Earn double reward miles on up to $3,000 in travel and restaurant purchases every year, and 1 mile for every dollar you spend on all other purchases. This offer is Discover Card’s best travel rewards credit card for earning frequent flier airline miles and free airline tickets. While this card is mostly about airline miles, you are also given the option to exchange earned miles for cash, travel credits, or gift cards – it’s up to you. Mileage rewards can be used to book free airline travel anytime with no black out dates or restrictions. There is no earning limit or maximum cap on the miles that may be earned, and all rewards you accrue never expire. There is also no annual fee. Currently, pursuant to this online offer, you can earn up to12,000 Bonus Miles – 1,000 Bonus Miles each month you make a purchase for your first year*.

2) Discover More Card – (formerly the Discover Platinum Card) – Get 5% cash back bonus rewards with the Discover More credit card in categories that change and alternate throughout the year like gas, groceries, restaurants, travel, department stores, and home improvement stores. Plus, cardholders get an extra 5% to 20% cash back on purchases made at major retailers through Discover Card’s online shopping site, ShopDiscover. All other purchases automatically earn rewards, with unlimited 1% cash back on all transactions. The More Card features a 0% balance transfer offer for a year with a 4% fee.

Currently, the Discover More Card also comes in several different card designs, however their terms and conditions do not otherwise vary significantly:

• Discover More Card – This is the standard Discover More card variation that most people seek out and apply for.
• Discover More Clear Card – This variation features numerous modern art inspired card designs to select from.
• Discover More Sea Life Card - If you are a fan of Flipper, Little Nemo, or simply are a supporter of the ocean and the fish, dolphins, whales, and coral reefs that inhabit it, then this may be your card design of choice to express that support.
• Discover More Wildlife Card – This Discover More variation offers card designs that feature mostly land and air animals like wolves, eagles, horses, and seals.
• Discover More American Flag Card – This classic patriotic card design features the American flag on its face. Nothing screams American consumerism like a red, white, and blue credit card.
• Discover More Monogram Card – This custom credit card design features your own personal name initials displayed in large artistic lettering on the plastic card face.

3) Discover Motiva Card – Earn up to 1% unlimited cash back on all purchases with the Discover Motiva card. This particular card features an interesting twist on the usual credit card rewards program. Along with your normal cash back rebates up to 1%, each time you make 6 on time payments in a row, you’ll receive a Pay-On-Time bonus reward equal to a full month’s interest added to your cash back earnings. This is a very intriguing incentive to motivate you to pay off your card balance on time and earn extra bonus rewards in the process. As with almost all Discover card rewards, your cash back earnings can be doubled in value if redeemed through Discover’s network of online retail partners. There is no annual fee.

4) Discover Open Road Card – (formerly the Discover Gas Card) – Get 2% Cashback Bonus automatically at any gas station and any restaurant.
In addition to the gas rewards, cardholders earn unlimited 1% cash back on all other purchases. Plus they can earn 5% to 20% rebate rewards for spending money and making purchases at major store retailers through ShopDiscover. Rewards may be doubled when they are used to redeem for gift cards through a list of over 100 Discover retail store partners. There is no annual fee.

5) Discover Business Card – ($100 Sign Up Bonus) – With the Discover business reward card, you can receive up to 5% cash back rewards on office supplies, 2% on gas, and up to 1% on all other purchases. Cardholders can also earn up to 5 to 20% more in cash back rebates at top retailers through Discover’s exclusive online shopping website. Your purchase rewards can be doubled when you take them as gift cards or gift certificates from many of Discover’s online retail partners. There is also an introductory 0% APR offer on purchases for 12 months, and a low interest balance transfer promotion for 6 months. However, the best card feature is the ability to write fee-free Purchase Checks to pay merchants who don’t accept credit cards. As with most business card programs, cardholders also enjoy free employee cards with customizable card limits and monthly reporting metrics on their spending. There is also no annual fee.

6) Discover Business Miles Card – With the Discover business mileage reward card, you can receive double reward miles on travel and gas purchases up to $5,000, and 1 mile per dollar for everything else. Miles can be redeemed for airfare travel or reduced prices on airline tickets for most major U.S. based airlines, on any seat, with no blackout reservation dates. Miles can also be redeemed for cash or gift cards from a huge selection of brand name partner stores. Currently the card is offering an instant bonus reward offer of 12,000 bonus miles upon card application approval, along with an introductory 12 month, 0% APR offer for all purchases. Business owners, entrepreneurs, or regular consumers operating as sole proprietorships get access to Discover Card’s exclusive reward earning Purchase Checks that can be used to pay merchants that don’t otherwise accept credit cards. There is no annual fee.

7) Discover Student Card – With the Discover student credit card, cardholders get a 0% introductory APR on credit card purchases for 6 months, plus enjoy 5% Cashback Bonus®* in categories that change like travel, department stores, gas, groceries, restaurants, and more means extra money for you, and extra toppings for your pizza.

Card holders also earn up to 1% cash back on all other purchases. The Discover Student Card is much easier to qualify for compared to regular consumer cards as it doesn’t rely on stringent income or credit checks.

• Discover Student Clear Card – Same as the regular consumer version of the Clear Card, but with lower credit limits and less picky credit approval standards.
• Discover Student Card Monogram Collection – Like the consumer version, this student version of the More Card features your name initials on the card as its design.
• Discover Student Card Tropical Beach – This card features all of the benefits of the standard Discover More card, but with a tropical beach card design.