These cards are designed for small business owners. You can benefit from these cards whether you’re a sole proprietor, an LLC, or a corporation with 20 employees. If you do have employees, you get free additional cards with the Ink Bold card.

You’ll like the sign-up bonus for the Ink Bold card. When you spend $5,000 within the first three months, you get 50,000 bonus points, which is worth $625 in travel rewards if you use the Ultimate Rewards booking tool.

Rewards

Your rewards are earned as points. Point value varies depending on your redemption choices. For travel, one point can be worth up to 1.25 cents instead of the standard, which is one point equals one cent.

Okay, let’s take a look at the rewards:

• You get 5 points per $1 spent on the first $50,000 spent annually at office supply stores and on cellular phone, Internet, landline, and cable TV services (equipment purchases are excluded). After you reach the cap, you get 1 percent cash back.

• You get 2 points per $1 spent on the first $50,000 spent annually at gas stations and on hotel accommodations (if you book directly with the hotel). After you reach the cap, you get 1 percent cash back.

• You get 2 points per $1 spent when you book your travel through Chase’s Ultimate Rewards. You also get 20 percent off travel when you use the Ultimate Rewards booking tool. For example: A $625 flight only costs you 50,00 points.

• You get 1 percent on all other purchases.

• There’s no limit to the amount of points you can earn and they do not expire.

You can redeem points for travel, merchandise, cash back, and gift cards. You can learn more about earning and redeeming points on Chase’s Ultimate Rewards right here.

You also get membership in Lounge Club, which includes over 350 airport lounges in over 100 countries. Your membership gives you two free visits annually. After two free visits, you’ll be charged $27 per visit.

Rates and fees
The interest rate is pretty decent, especially considering the generous rewards. You will need excellent credit to qualify for this card.

APR for purchases: Not applicable because this is a charge card.

Balance transfers: Not applicable.

APR for cash advances: Not applicable.

Penalty rate: A 29.99 percent variable APR. If your payment is over 60 days late, you might get stuck with this penalty rate. So if you don’t have the cash flow to pay your bill off every month, don’t get this charge card.

Annual fee: None for the first year. After that, it’s $95.

Foreign transaction fees: None. Awesome!

The bottom line

The Ink Bold Business Card gets a thumbs-up from me. This is a good choice if your business requires a lot of spending on office supplies and cellular and cable-related stuff. The Ink Bold is also a good choice if you travel overseas a lot because there are no foreign transaction fees.

Now, this card gives you a flexible spending limit. Here’s how Chase explains it in the fine print: Each charge you make is evaluated based “on the spending and payment patterns on the account, your other relationships with us, information from credit reports obtained from credit bureaus including your experience with other creditors, and our understanding of your resources.”

Does that clear it up? Probably not! Basically, if Chase sees you paying a lot for certain items, but then paying the bill on time, they’ll be okay with that type of pattern. This is not an unlimited credit limit, so you could encounter a situation where your card gets denied if it’s out of Chase’s comfort zone.

I always mention the Credit CARD Act of 2009 when I review business cards. Business credit cards aren’t protected by the CARD Act. The Ink Bold is a business charge card, so keep in mind that you don’t have the same protections as consumer cards. Protect yourself from unpleasant surprises by reading all the communication you get from Chase. This includes snail mail, which banks still love.

If you’re interested in the Ink Bold Business Credit Card, you can Apply Here.

Note: Credit card agreements change frequently. So my review is based on the information that was in effect today. Be sure you read all the disclosure statements carefully.

The post Ink Bold Business Card Review appeared first on Beverly Harzog.

The Ink Cash card is a pretty good cash back credit card. You can read my review right here. I haven’t reviewed the Ink Bold (a charge card) or the Ink Classic yet, but I’ll update this post with links to those reviews when I have them done.

This review is for the Ink Plus Business Card, which is more of a travel rewards card. Small business credit cards can be used by sole proprietors as well as companies who have employees. If you do have employees, you get free additional cards with the Ink Plus card.

The sign-up bonus for the Ink Plus card is an excellent one. When you spend $5,000 within the first three months, you get 50,000 bonus points, which is worth $625 in travel rewards if you use the Ultimate Rewards booking tool.

Rewards

Your rewards are earned as points. Okay, let’s see what we’ve got:

• You get 5 points per $1 spent on the first $50,000 spent annually at office supply stores and on cellular phone, Internet, landline, and cable TV services (equipment purchases are excluded). After you reach the cap, you get 1 percent cash back.

• You get 2 points per $1 spent on the first $50,000 spent annually at gas stations and on hotel accommodations (if you book directly with the hotel). After you reach the cap, you get 1 percent cash back.

• You get 2 points per $1 spent when you book your travel through Chase’s Ultimate Rewards. You also get 20 percent off travel when you use the Ultimate Rewards booking tool. For example: A $625 flight only costs you 50,00 points.

• You get 1 percent on all other purchases.

• There’s no limit to the amount of points you can earn and they do not expire.

You can redeem points for travel, merchandise, cash back, and gift cards. You can learn more about earning and redeeming points on Chase’s Ultimate Rewards right here.

You also get membership in Lounge Club, which includes over 350 airport lounges in over 100 countries. Your membership gives you two free visits annually. After two free visits, you’ll be charged $27 per visit. This is a great perk to have if you often feel like you live in airports.

Rates and fees

The interest rate is pretty decent, especially considering the generous rewards. You will need excellent credit to qualify for this card.

APR for purchases: You get a variable rate of 13.24 percent.

Balance transfers: You get a variable rate of 13.24 percent. The transfer fee is 3 percent.

APR for cash advances: You get a variable 19.24 percent APR. Plus, there’s a 5 percent transaction fee. Remember that interest on a cash advance begins immediately.

Penalty rate: A 29.99 percent variable APR. This may be applied if you fail to make any minimum payment by the due date. You could also get stuck with this rate if you make a payment that is returned unpaid. You can get the penalty rate if you do either of the things I just mentioned or “…exceed your credit limit on another account or loan you have with us or any of our related banks.”

So, don’t make a late payment on any account you have with Chase. Ever.

Grace period: Your due date will be at least 20 days after the close of each billing cycle.

Annual fee: None for the first year. After that, it’s $95.

Foreign transaction fees: None. Awesome!

The bottom line

The Ink Plus Business Card gets a thumbs-up from me. If your business requires a lot of spending on office supplies and cellular and cable-related stuff, you can earn a ton of points with this card. This is also a good business card for the small business owner who travels frequently. There are no foreign transaction fees and this will save you a lot of money if you travel overseas a lot.

You’ll notice that on business card reviews I mention the Credit CARD Act of 2009. Business credit cards aren’t protected by the CARD Act. So keep in mind that you don’t have the same protections as consumer cards. For example, you could get sudden interest rate increases. So to protect yourself from unpleasant surprises, stay on top of any communication you get from Chase.

Aside from the negatives, though, I do think that business credit cards are useful because they offer excellent management tools. And if you’re meticulous about using this card for business expenses only,  you’ll keep your business expenses separate from your personal expenses. From a legal standpoint, this is essential.

If you’re interested in the Ink Plus Business Credit Card, you can Apply Here.

Note: Credit card agreements change frequently. So my review is based on the information that was in effect today. Be sure you read all the disclosure statements carefully.

The post Ink Plus Business Card Review appeared first on Beverly Harzog.

Now that I’ve been doing card reviews for a while, I’m starting to go back and update them with any changes I find. Credit cards are a moving target, but I do the best I can to keep you up to date. Over the weekend, I took aim at the Chase Freedom Visa card. I’m glad I did because there were some changes.

In my previous review, the APR range for the Chase Freedom card was 12.99 percent to 22.99 percent. Now, the range is from 13.99 percent to 22.99 percent. I know it’s only one percent, but in the world of credit cards that means something. It could mean that Chase wants to approve more folks for the card.

The Chase Freedom card has been targeted at folks with excellent credit scores, which means a FICO score of at least 750. By increasing the starting point for the interest rate, Chase can approve folks who have a score below 750. The increased APR helps cover the risk of taking on some consumers that Chase might not have considered six months ago.

The other change also involves an APR. The APR for a cash advance went up from 19.24 percent to 23.99 percent. If you read my reviews, you know my mantra: Don’t get a cash advance unless your life is hanging in the balance. Okay, that’s a bit dramatic, but I’m making a point. The interest on a cash advance starts ticking right away. There’s no grace period, so it’s an expensive way to borrow money.

Anyway, I think these changes suggest that perhaps people with good credit scores will be considered for the card. Remember that issuers look at more than just the credit score, though, so not everyone with a 720 score will get approved for this card.

It’s a shame the APR now starts at 13.99 percent, but if you don’t carry a balance, it won’t matter. And you never, ever want to carry a balance with a rewards card anyway.

If you’re thinking about applying for this card and you’d like to see a complete overview, here’s a link that will take you to my updated review: Chase Freedom Credit Card Review.

The post Update on the Chase Freedom Credit Card appeared first on Beverly Harzog.

This used to drive her crazy. Every year on Mother’s Day I think about this exchange with her because it happened frequently. This year, though, I’ve been thinking about how much she taught me about money management. Probably because I taped an interview at CNN yesterday and the topic was how moms can teach kids about money and credit cards.

My mom didn’t have any credit cards. She just didn’t believe in buying something unless you had the cash for it. She didn’t think there was anything wrong with others using credit cards, as long as they stayed out of debt. While my mom would probably rather I focus on helping people save money, I do think my mom would be pleased that I take a consumer advocacy approach to credit cards. I do my best to help folks use their cards to their advantage and stay out of trouble.

Even though my mom didn’t use credit cards, I learned a lot about money and credit from her. Unfortunately, I was in my 30s before I realized how great she was with money. I grew up in the South, and we didn’t talk about money when I was growing up. Well, back then we didn’t. I still live in the South, but I talk about money with my kids all the time. I’m sure they wish I’d shut up already.

I’ve talked about my credit card debt before and I often wonder if I’d have stayed out of trouble if someone had talked with me about money while I growing up. There are a lot of reasons why people get into debt, so it’s hard to stay. But it might have helped. At the end of the day, my parents did the best they could given the era and the culture they lived in.

You know how I finally found out that my mom was great with money? My parents got divorced when I was 17 and my mom was suddenly single. She got a job and set up a budget. She stayed out of debt and saved her money. She then began investing her money.

Fast forward about 15 years and she’s telling me how much money she’s saved and how she did it. I don’t think she’d want me to divulge how much she saved, but it was enough to pay for most of her long-term care when she was older and had health problems.

Hearing how my mom managed to stay out of debt certainly helped me get a grip on my own issues. My mom passed away during the summer of 2010.  I still miss her and I’ll never forget what I learned from her.

By the way, about five years ago, I started making my bed every morning. I hate to admit this, but my mom was right. I do feel better all day! My mom had developed a form of Alzheimer’s by then, so I’m not sure she understood when I told her the good news. But I know I saw a slight smile!

What did you learn from your mom about money? I’d love to hear any stories you’d like to share.

The post What I Learned From My Mom About Credit appeared first on Beverly Harzog.

This version of the Discover it credit card also has a decent cash back rewards program. (If you don’t need to make a balance transfer, check out my review of the ‘regular’ Discover it credit card.) Now, I don’t recommend using this Discover it balance transfer card for purchases until you get all of your debt paid off. But the rewards do make it a nice card to have in your credit card arsenal once you’re debt-free.

Rewards

With the Discover it Card, you earn 1 percent cash back on all purchases. In addition, you can earn 5 percent Cashback Bonus on up to $1,500 in popular rotating categories that change every quarter. Once you exceed the $1,500 cap, you earn 1 percent. You have to sign up to be eligible for the bonus category rewards.

You can redeem your points for cash back, merchandise, gift cards, charitable donations, and more. I really like the option of receiving your cash back as a direct deposit to your bank account. You can also get a statement credit, if you prefer.

And in case you’re wondering, you do not earn rewards on the amount of your balance transfer.

Rates and fees

The main feature for this version of the Discover it card is the long intro period for balance transfers. Note the timeline for this offer in the “Balance transfers” section below. Pay attention to the dates so you don’t miss out!

APR: You get a zero percent intro APR for 6 months. After that, you get a variable rate of 10.99 percent to 22.99 percent, based on your creditworthiness.

Balance transfers: You get a zero percent intro APR for 18 months. I love it! After that, you get a variable rate of 10.99 percent to 22.99 percent, based on your creditworthiness. The transfer fee is 3 percent.

NOTE: This offer applies to balance transfers that post to your account by August 10, 2013. The fine print points out that after your account is opened, it takes at least 14 days to process the transfer.

APR for cash advances: You get a variable 24.99 percent and there’s a 5 percent transaction fee. Remember that interest on a cash advance starts ticking right away. What do you say to a cash advance? No freakin’ way!

Annual fee: None.

Foreign transaction fees: None.

The bottom line

Overall, I give the Discover it – 18 Month Balance Transfer credit card a thumbs up. This card offers a good way to pay off–or at least pay down–your debt. To pay off your debt, determine how much you need to pay each month to get your balance to zero in 18 months.

Example: You transfer $5,000, which means you pay a $150 transfer fee. Your monthly payment will be 5150/18 = $286.17.

Sure, it’s tough to stick with a schedule, but you can do it. Throw all the money you can find at the debt. And resist using this card for purchases until your balance is zero.

If you’re interested in this balance transfer card, you can Apply Here.

Note: Credit card agreements change frequently. So my review is based on the information that was in effect today. Be sure you read all the disclosure statements carefully.

The post Discover it – 18 Month Balance Transfer Review appeared first on Beverly Harzog.

The Discover it Card has widened the APR range. It used to be 10.99 percent to 19.99 percent, but now it’s 10.99 percent to 22.99 percent. As I mentioned in a recent post, Credit Might Be Loosening Up a Little, this means that Discover is willing to take chances on people. So they might be willing to approve you for a card even if you don’t have a 750 FICO score.

Hey, no promises here! Just letting you know they’re getting a little more relaxed at Discover. You can read my updated review right here.

The Discover it for Students Card has shortened the zero percent intro APR. It used to be nine months. Now, you get a zero percent intro rate for six months. Since you shouldn’t carry a balance anyway, this shouldn’t be devastating news. You can read my updated review right here.

Reminder: 5 percent Cashback Bonus for Spring 2013. Sign-up for the Spring 2013 category, home improvement stores began on April 1, 2013. The bonus lasts through June 30, 2013. When you use your Discover it Card, you’ll get 5 percent Cashback Bonus on up to $1,500 in purchases at home improvement stores. You don’t get retroactive credit with this card, so if you haven’t signed up, do so right now so you can still take advantage of it. You can enroll right here.

If you’d like more details about the category, check out my post Discover it Card 5% Cashback Bonus Category, Spring 2013. This post also includes tips about using Google Wallet with the Discover it Card.

The post The Latest on the Discover it Card appeared first on Beverly Harzog.

I love it when y’all leave comments because it helps me learn more about the card. Sure, I read the fine print and point out the “gotchas.” But honestly, hearing what it’s like to use The Matrix in the trenches is priceless information. So thanks to everyone who has contributed to those posts. You can read the comments by clicking on the links above.

I’ve noticed a few questions that pop up over and over, so I thought I’d pick the most common ones and just try to clear things up. And by the way, I also reviewed the Cerulean Card, which is basically identical to The Matrix. So if you have the Cerulean, these facts apply to that card, too.

#1: The Matrix card is not issued by Discover

Hands down, this is the most common question I get. I can understand the confusion, too. The Discover logo is on the website and, for crying out loud, it’s on your card. The issuer is Continental Finance, though. Discover is only the payment network that’s used.

So when you use your Matrix (or Cerulean) card to make a purchase, the transaction is handled by the Discover payment network. This is why some of you are surprised that you aren’t getting Discover-quality customer service. You’re getting customer service from Continental Finance, and from what I can tell, they aren’t nearly as concerned about their image as Discover is.

#2: The Matrix is a hybrid credit card

This means that after you apply, you’ll be told if you qualify for the secured or the unsecured version of the card. It’s also possible to be offered a partially secured card. With a partially secured card, you still have to make a deposit, but you get a limit that’s higher than the deposit. For example, you might be asked to make a $200 deposit, but you get a $300 credit limit.

#3: The Matrix card doesn’t always work for gas purchases

I’ve gotten a lot of mixed comments about this one. Many people have reported that they can’t use the card to pay for gas. Some folks have said you can use the card for gas, but you have to pay inside, not at the pump. One reader who uses the Cerulean card, though, said that when she activated the card, she was told you can’t use the card for gas.

If any of you are using the Matrix card or the Cerulean card, will you tell me what your experience has been when you try to purchase gas?

In the meantime, I recommend having a backup (even a debit card or cash) with you until you know for sure if you can use The Matrix to pay for gas. Before you even try to swipe your card at the pump, go inside and ask if your card can be used to purchase gas.

The post 3 Things You Must Know About The Matrix Card appeared first on Beverly Harzog.

Your interest rate for your credit card is stated as the annual percentage rate, a.k.a. the APR. For instance, you might have a variable APR of 14.99 percent. The APR is the rate that includes fees and additional costs that you pay with your credit card. So it’s designed to tell you the actual cost of borrowing money on your credit card.

Now, when it comes to credit cards, interest rates can be fixed or variable. A fixed rate means it doesn’t go up and down with the prime rate. Fixed rates are around now and then, but you rarely see them as an ongoing rate for a credit card. You might get a fixed introductory APR, but it has an ending date.

On the other hand, a variable APR moves with the prime rate. Your credit card issuer sets a margin that’s tied to the prime rate. For instance, your credit card issuer might set it as prime + 11.74 percent. So in this case, you’d get a variable 14.99 percent APR because the current prime rate is 3.25 percent.

What the heck is the prime rate?

The prime rate is an index that’s used by banks and other financial institutions to set rates on credit cards, car loans and more. As I mentioned above, the current prime rate is 3.25 percent. It hasn’t changed in a while because the Federal Reserve is trying to keep inflation low so that the economy continues to recover.

Here’s an example of how it works, though, if the prime rate did happen to change and you had a variable 14.99 percent APR. If the prime rate goes up to 3.5 percent, you’ll see your credit card’s APR go up to 15.24 percent (14.99 + .25). If the prime goes down to 3.0 percent, your APR goes down to 14.74 percent (14.99 – .25).

Extra Credit: Federal Funds Target Rate

For those who love this stuff–and I know you’re out there!–the prime rate is tied to the Federal Funds Target Rate. The Fed Funds Rate is set by a committee that operates within the Federal Reserve system. If the Fed Funds Rate doesn’t change, then the prime rate stays the same.

Here’s the basic formula: U.S. Prime Rate = The Fed Funds Rate + 3

If you want to really dig deeper into this stuff, check out the educational resources page of the Federal Reserve Bank of San Francisco.

The post What Is an Annual Percentage Rate? appeared first on Beverly Harzog.

This PenFed card, issued by the Pentagon Federal Credit Union, certainly is worth bragging about. In fact, the PenFed Promise could be your BFF if you have a financial emergency and need to charge an expense. I often recommend having a low-interest card in your credit card arsenal, just in case you have an emergency.

You need excellent credit to qualify for this card. There are no rewards–and if there were, the APR would be higher–so let’s get right to the costs and fees.

Rates and fees

Well, nothing but blue skies here. Start reading and enjoy the lack of fees with this PenFed card.

APR for purchases: You get an introductory rate of 7.49 percent for 36 months. Not bad, huh? After that, your APR will vary with the Prime Rate. Currently, the new variable rate would be 9.99 percent.

Balance transfers: You get a rate of 4.99 percent on balance transfers made from April 1, 2013 through June, 2013 for the life of the balance. Yes, that’s for the life of the balance. There’s no transfer fee, which is awesome.

APR for cash advances: You get a variable 9.99 percent APR. There’s no transaction fee. Yes, this is a low rate, but remember that interest on a cash advance begins immediately.

Penalty rate: There is no penalty rate.

Annual fee: None.

Foreign transaction fees: None.

Other fees: There are no late fees, no over-the-credit-limit fees, and no returned payment fees.

Didn’t I tell you this section was blue skies?

The bottom line

Overall, the Penfed Promise Visa Card gets an enthusiastic thumbs-up from me. Did you have any doubt?  It really is one of the best low-interest, low-cost credit cards I’ve seen.

Other low-interest credit cards I like are the Simmons First Visa Platinum and the IBERIABANK Visa Classic. Both are mentioned in this post: Low-Interest Credit Cards Are Perfect for Emergencies. I didn’t include the PenFed Promise Visa Card in that post and I certainly should have. I need to pop over there and add it.

The post PenFed Promise Visa Card Review appeared first on Beverly Harzog.

The report showed that Discover had changed the high end of the APR range on the “it” card. Now, by the way, all of Discover’s credit cards have the exact same APR range. That’s a bit odd, but okay, Discover.

Here’s the deal: The Discover it Card, Discover Miles, Discover Escape, and Discover Open Road now have APR ranges from 10.99 percent to 22.99 percent. The previous APR range for the Discover it Card was 10.99 percent to 19.99 percent, so the range got wider by 3 percent. All these cards now have a 12 percentage point APR range.

When issuers do this–and I’ve seen this tactic before–it means that they’re starting to loosen up credit requirements for their cards. So for example, if you have a 710 FICO credit score, in the recent past, you probably wouldn’t qualify for a credit card that required excellent credit (750-plus). But with an extended range, an issuer can take a chance on someone who is borderline.

Well, I say “take a chance,” but the wide range helps them reduce risk. Let’s say the consumer with a 710 FICO score gets approved for a credit card with 22.99 percent variable APR. If the cardholder doesn’t act responsibly and gets into debt, the issuer can charge interest on the balance at the whopping rate of 22.99 percent.

Some consumer advocates have complained that this increase in the range is an invitation for folks to get into a mess of trouble. Yeah, that’s always possible. But I’ll look at the other side of this. It’s a golden opportunity for those of you who are inching back up into credit respectability.

This is a chance to get a card from a major issuer that has, other than the rate, good terms and perks. If you don’t carry a balance, you can use a credit card with a high APR to boost your score while you enjoy profiting from using a rewards credit card. But let me repeat: You can’t carry a balance or you’ll end up really sorry that you did.

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