• secured credit cards: the credit card debt you get is dependent on a collateral you put down with credit card company, it’s usually an amount of cash, and usually the amount of collateral you put down is the amount of credit limit you get.
• unsecured credit cards: the credit card debt you get does not require you put down a certain amount of collateral.   This type of credit cards is the general type of credit cards we commonly use.

This post shows major secured credit cards for you to choose

	Card Name	Features	More
	Applied Bank® Secured Visa® Credit Card	Prepaid Debit Card issued by Applied Bank; no credit line is attached. Operates on Visa Inc. network.	Regular APR: 9.99% fixed;CREDIT Bureau Reporting;Minimum $200 deposit required.
	Applied Bank® Secured Visa® Gold Card	Prepaid Debit Card issued by Applied Bank; no credit line is attached. Operates on Visa Inc. network.	Regular APR: 9.99% fixed;CREDIT Bureau Reporting;Minimum $200 deposit required.

American Express Premier Rewards Gold Card

• Earn 15,000 Membership Rewards® bonus points when you spend $1,000 in your first 3 months of Card membership
• Earn Membership Rewards points up to three times as fast: You can earn 3X points on airfare, 2X points on gas and groceries, and 1X points on everything else
• Earn 15,000 Membership Rewards bonus points when you spend $30,000 per calendar year.
• Annual fee: first year free, then $175 per year
• Requires excellent credit

American Express Preferred Rewards Gold Card

• Earn 10,000 Membership Rewards® bonus points when you spend $500 in 3 months – redeemable for a $100 gift card!
• The Membership Rewards® program – Earn 1 Membership Rewards® point for virtually every dollar you spend and redeem for your choice of travel, shopping, and entertainment
• Express Approval. Get a decision in less than 60 seconds.
• Annual fee: $125 per year
• Requires excellent credit

Membership Rewards Bonus Points can be redeemed to frequent flyer miles at 1 point:1 mile ratio and to gift cards at several stores like Home Depot, Crate & Barrel, or Macy’s at 100 point : $1 ratio.

With these card features, Premier Rewards Gold Card is a better card.  There are two ways to take advantage of its benefits depend on what you want to get out of it.  If you want to avoid annual fee, then you can spend $1000 in first 3 months, get 15000 MR bonus points up-front, then cancel the card.  If you are a big spender (spend more than $30,000 per year), then you can keep the card, since the annual bonus for spending $30,000 could almost offset annual fee.

I highlighted the relative benefits in green, and drawbacks in red.

Chase Freedom vs. Discover More

Chase Freedom Credit Card

• $50 Cash Back after your first purchase
• 3% bonus cash back offers in categories like gas, home improvement and department stores
• Full 1% Cash Back on every purchase – no spending tiers or caps on how much you can earn
• Up to an additional 20% cash back at select merchants when you shop online through Chase
• 0% Intro APR for up to 12 months for purchase only

In addition to $50 sign-up bonus and 3% cash back rewards, Chase Freedom Card customers can wait and accumulate the cash rewards until it reaches $200 and then redeem with $250.  This has been one of the favorite benefits of Chase Freedom.  Despite that Chase has reported stopped this benefit earlier this year, existing Freedom card members report that they are still getting this benefit as of recently.

Discover® More Card

• 5% Cashback Bonus® in categories like travel, home improvement stores, department stores, gas, restaurants, pet stores and many more with caps on how much reward you can earn
• Up to 1% unlimited Cashback Bonus® on all other purchases
• 5% to 20% Cashback Bonus® through our exclusive online shopping site.
• 0% Intro APR for 6 months on purchase AND balance transfers

5% Cash Back Bonus in Q4 2009
Each quarter, Discover 5% Cash Back Bonus rolls out 4-5 purchase categories and a spending limit, all your purchase falls into those categories and under that spending limit will get 5% cash rewards (see previous quarter spending categories).  Q4 2009 spending limit is $400, and spending categories are:

• Grocery Stores
• Restaurants
• Movie Theaters
• Movie Rentals

That means your first $400 spend in grocery, restaurants and movies from Oct. 1st to Dec. 31st 2009 using Discover More Card will get $20 cash back from Discover.

Term and Condition Fine Prints

For better comparison of these two cards, below are the extracted fine prints in both cards’ application forms.  I am selecting paragraphs that interest most card customers, related to rewards, payment allocations, insurance.

Chase Freedom

Receive $50 Cash Back after first purchase
You will receive $50 in bonus rebates with this bonus offer, which can be redeemed for a $50 check. You will qualify for and receive your bonus after your first purchase/first use of the card. First purchase/first use includes purchases, balance transfers, or any checks that are used to access your account, and excludes cash advances. After qualifying, please allow 6 to 8 weeks for bonus rebates to post to your account. This one-time bonus offer is valid only for first-time cardmembers with new accounts. Existing cardmembers/accounts are not eligible for this bonus offer.

1% Cash Back
Cash Back Rewards described in this offer is a form of rebates subject to the Rewards Program Rules and Regulations; see Earning Rewards section. Restrictions and limitations apply. You will earn a 1% rebate for each $1 of net purchases. You will earn an additional 1% rebate for each $1 of eligible airfare net purchases made online through the program booking tool. You do not earn rebates on balance transfers, cash advances, cash-like charges such as travelers checks, foreign currency, and money orders, any checks that are used to access your account, overdraft advances, interest, unauthorized or fraudulent charges, or fees of any kind, including fees for products that protect or insure the balances of your account. There is no maximum number of rebates that you can accumulate in the program. A service fee of up to $20 per ticket may be charged for the use of our toll-free number to book or change airline itineraries. Redemptions made online do not have a service fee. See Rewards Program Rules and Regulations which will be mailed after your account is established.

Earn even more cash back:
3% Cash Back in rotating categories
You will be eligible for quarterly bonus rewards offers as long as (i) your account is not in default under, and/or you have not violated, the terms of your Cardmember Agreement and Rewards Program Rules and Regulations, and (ii) your statements are sent to a US address.

Discover More Card

PAYMENT ALLOCATION: We apply payments to balances with low introductory/promotional APRs (such as promotional balance transfer and purchase APRs) prior to balances with standard APRs. Therefore, your savings will be reduced by making additional transactions or having balances with standard APRs. In addition, the length of time the introductory/promotional APRs will apply to your account may be reduced by the amount of your payments. Effective February 1, 2010, to the extent your payments exceed the minimum payment due each billing period, we will generally apply them to balances with high APRs prior to balances with low APRs. Otherwise, we will apply payments and credits at our discretion, including in a manner most favorable or convenient for us.

Offer valid for new cardmembers only.

REWARDS: Earn unlimited cash rewards on all purchases. Earn 5% Cashback Bonus on category purchases throughout the year by signing up for each program. When you sign up, you will receive all the details, including the limit on the amount you can earn. In addition, earn 1% unlimited Cashback Bonus on all other purchases after your total annual purchases exceed $3,000; other purchases that are part of your first $3,000 earn .25%. Warehouse purchases (those made at select warehouse clubs, discount stores and their affiliates) earn .25%. We do not include warehouse purchases or 5% Cashback Bonus program purchases (up to the dollar limit specified in each applicable program) in calculating your total annual purchases to determine your tier level. Rewards are redeemable starting at $20. Rewards have no expiration date; however, if your account is closed for any reason or inactive for 18 consecutive months or if you fail to make the Minimum Payment Due by the Payment Due Date for two consecutive billing periods, your Cashback Bonus will be forfeited. Full terms and conditions will be sent with your card.

INSURANCE: Excess Collision Damage Waiver Insurance and Scheduled Air Travel Accident Insurance are underwritten by Federal Insurance Company, a member insurer of the Chubb Group of Insurance Companies of Warren, NJ. Certain restrictions and limitations apply. Refer to the Descriptions of Coverage for more complete information.

The purchases that qualifies for 5% rewards are:

• Gas Stations
• Hotels
• Theme Parks
• Zoos
• Book Stores

The up limit of the cash back rewards is $15, which means you get 5% cash back rewards only in the first $300 purchase in the above categories, the rest of purchases may be subject to a lower cash back ratio, most likely 1%.

Here is the card that can earn the 5% cash back on gas:

	Card Name	Benefits	Requirements
	Discover® More Card	0% BT APR for 6 mths; 0% purch APR for 6 mths; 1% – 5% cash rewards	requires Excellent Credit; regular APR: 11.99%-18.99%; annual fee: none

The purchases that qualifies for 5% rewards are (buying new clothes is also improving your home, that’s a new concept):

• Home improvement Stores
• Department Stores
• Clothing Stores

The up limit of the cash back rewards is $20, which means you get 5% cash back rewards only in the first $400 purchase in the above categories, the rest of purchases may be subject to a lower cash back ratio, most likely 1%.

Here is the card that can earn the 5% cash back on Home Improvement:

	Card Name	Benefits	Requirements
	Discover® More Card	0% BT APR for 12 mths; 0% purch APR for 6 mths; 1% – 5% cash rewards	requires Excellent Credit; regular APR: 10.99%; annual fee: none

At such time, it’s even more important for consumers to find good credit cards that offer low/no fee balance transfer, here is the December list:

	Card Name	BT APR, credit needed and credit limit	Transaction Fee
	IberiaBank Visa® Platinum Rewards Card	0% for 6 mths, requires Good Credit	None
	IberiaBank Visa® Gold Cash Back Rewards Card	0% for 6 mths, requires Good Credit	None