About the card

Whether you have excellent credit, average credit or a little less than average credit the Miles by Discover® Card can be yours.  The Miles by Discover® Card is a reward card that allows cardholders to earn free air miles. 

The basics

• Purchase APRs between10.99% and 18.99% depending on your credit history
• 23.99% APR on Cash Advances
• No annual fee
• 25 day grace period on purchases
• Late fee:  $19 for balances of $250 or less, $39 for balances over $250
• Over the limit fee:  $15 for balances of $500 or less, $39 for balances over $500
• 3% fees on cash advances ($5 minimum and no maximum)

The perks

• 0% APR for 12 months on balance transfers made in the intro period
• Intro 0% APR on purchases for the first six months
• Earn unlimited miles
• Earn 1 miles for every $1 purchase
• Earn double miles on restaurant and travel purchases (6,000 mile limit)
• Earn double miles when you shop at over 60 retailers through ShopDiscover (features popular retailers such as Lane Bryant, JoS A. Bank, Hallmark, Apple, Lands’ End and Sears)
• Miles never expire (but account will automatically be closed if inactive for 18 months)
• Miles can be used for travel booked through any airline, travel agent or online travel site
• Not flying anytime soon, then redeem miles for gift cards or even cash
• Earn 1,000 bonus each month when you make a purchase during the year
• Complimentary insurance when you pay using your Miles by Discover® Card -  $25,000 coverage in car rental insurance and $500,000 in flight accident insurance

You will like this card if you are looking for a excellent reward card with excellent perks with a reasonable APR.

You won’t like this card if you … (nah… you’ll love this card!)

Credit card review

I really like the Miles by Discover® Card.  It allows you to earn unlimited miles and the miles never expire.  And the best part about these miles is that it is not limited to one airline.  Miles can be used on any airline and can even be used at sites like Expedia or Travelocity.

But if you don’t want miles, the Miles by Discover® Card allows you the flexibility to redeem your miles for other goodies, like gift cards or cash.  So your miles card can also act like as a cash rebate card. 

On top of that, the credit terms are pretty generous for a reward card.  With most reward cards, the terms are not as favorable when compared to non reward cards.  But this is not true with the Miles by Discover® Card.  There is no annual fee.  The interest rate is as low as 10.99% and the grace period is 25 days! 

And… this is a card for everyone.  Even if your credit score needs improvement, you may be approved for this card.  The APR may by as high as 18.99%, but the Miles by Discover® Card is a heck of a deal, especially when compared to clunkers like this.

I have nothing negative to say about the Miles by Discover® Card.  It is an first rate card and everybody should have one!

Overall rating

I give it 5 out of 5 stars.

Apply for your Miles by Discover® Card here.

About the card

The Gold Delta SkyMiles® Business Credit Card is a reward card issued by American Express.  This card is tailored for small businesses whose employees frequently travel.  The card comes with online account management tools and even allows data to be easily downloaded into QuickBooks.

The basics

• APRs: 14.99% for purchases, 19.99% for cash advances
• When initiated within 6 months of opening the account, 9.99% APR on balances transfers for the life of the loan
• Annual fee: $95 or $45 for some qualified cardholders
• 20 day grace period on purchases
• Late fee:  $19 for balances under $400, $38 for balances of $400 or more
• $35 over the limit fee
• 3% fees on cash advances ($5 minimum and no maximum)

The perks

• Earn 1 Delta mile for every dollar you spend, earn double miles on certain purchases like gas and office supplies
• Earn bonus miles with Miles Boosts when you spend more than $15,000 a year
• Save 5% on Delta flights when you use this card
• 20,000 bonus miles after your first purchase
• Request 2 additional cards with your application and get 5,000 bonus miles
• Get a $99 Companion Certification every year when you renew
• For the basic card, the annual fee is waived for the first year
• Includes travel accident insurance, baggage insurance and car rental insurance when you pay for fares and rentals using the card
• OPEN Savings program allows you to save 3-25% when you use your card at participating retailers (Save 5% on Yahoo small business services, 3-5% on jetBlue Airways, 10% on Logoworks by HP and much more)
• Plus get exclusive OPEN member only savings of up to 12% on business travel
• Comes with emergency services such are card replacement, identity theft assistance, cash checking and Global Assist.  Global Assist will help with medical, legal, financial, lost luggage, and more when you travel more than 100 miles from home

You will like this card if you are a small business owner who wants to earn free travel miles.

You won’t like this card if you are unable to pay the entire balance of the card at the end of each month.  At 14.99%, interest charges can add up really fast.

Credit card review

The Gold Delta SkyMiles® Business Credit Card from American Express allows you to rack up free Delta SkyMiles every time you make a purchase.  And if you make a lot of purchases (more than $25,000 a year), American Express will throw in an extra 10,000 miles in addition to the miles you’ve already earned.  Also, every year, you’ll get a $99 companion certificate.  That can make it easier to swallow the $95 annual fee.

Although the card comes with a lot of extras, I have some qualms about the fees.  The interest rate is 14.99%.  There are many other cards that offer a lower interest rate.  So if you plan on carrying a balance from month to month, you might want to consider a card with a lower rate.  Also the 20 day grace period is short.  Although, reducing the grace period is a new trend in the credit card industry, there are still many cards that offer 25 or even 30 days.

Finally, the 9.99% APR on balance transfers is supposed to be a promotional rate.  However 9.99% coupled with a 3% transaction fee (with no cap) does not sound like much of a promotion to me.  I would not recommend taking advantage of this balance transfer offer.

If used strictly to earn miles and if you can pay the entire balance each month, then this reward card can definitely be rewarding.

Overall rating

I give it 3.5 out of 5 stars.

Apply for the Gold Delta SkyMiles® Business Credit Card from American Express here.

About the card

The Gold Card from American Express OPEN (SM) is a charge card for small businesses.  Because this is a charge card, the entire account balance must be paid in full each month.  Most charge cards function more as a short term interest free loan rather than a credit card.  But the Gold Card from American Express OPEN can also substitute as a credit card.  When large purchases are made, the cardholder is given the option to pay over time.

The Gold Card from American Express OPEN (SM) is also a reward card.  Therefore each time you swipe the card you’ll earn points which can be redeemed for goodies.

The basics

• This is a business charge card, which means the entire balance is due upon receipt of the bill
• Annual fee: $125 for the basic card and $45 for additional gold cards, no annual fee for additional green cards (The additional cards are usually distributed to trusted employees.)
• Late fee:  the greater of $35 or 2.99% of outstanding balance
• No finance charges

The perks

• Enroll in the Membership Rewards program and get up to 40,000 bonus points in the first year
• Earn 1 Membership Reward point for every dollar you spend
• Redeem points for airline tickets, hotel stays, vacation packages and more, plus you’ll never have to worry about black out dates
• No limit on the points you can earn
• Points never expire
• Annual fees waived for the first year
• No preset spending limit
• Comes with an extended payment plan option
• OPEN Savings program allows you to save 3-25% when you use your card at participating retailers (Save 5% at FedEx Kinko’s, 20% as BizFilings, 10% at Symantec and much more)
• Comes with emergency roadside assistance… flat repair, towing, lock out services, battery recharge, etc. all for free

You will like this card if you are a small business owner who likes short term interest free loans to manage your business finance expenditures. 

You won’t like this card if you are unable to pay the entire balance of the card at the end of each month.

Credit card review

I think this card is a must have for small business owners.  The Gold Card gives businesses the freedom and flexibility to manage finances, interest free, in the short term.  Basically, a business will have access to an unlimited amount of credit, and when paid by the due date, there is no interest.  The cost of having this credit available whenever it is needed is minimal… only $125 per year. 

This card also comes with an optional extended payment plan.  So in the event that a large purchase cannot be paid in the short term, the card holder can elect to pay over time.  This can be vital when cash is flowing slowly.

Business owners will also have access to online expense reports.  This is a great management tool for tracking and evaluating spending.

But the best thing, every time the card is used, points are accumulated.  The points can be redeemed for various rewards such as gift cards and plane tickets.  A business owner can use these points for himself, or he can use it to give bonuses to worthy employees.

Overall rating

I give it 5 out of 5 stars.

Apply for the Gold Card from American Express OPEN (SM) here.

I personally like cash rebate cards. I use my cash rebate credit card for everything! And I mean everything. A while back when I’d paid off all of my credit card debts, I vowed that I would never use a credit card again. And for a long time I didn’t… I was a debit card swiping mama. But I kept getting all these offers in the mail for cash reward cards. At first I was hesitant to apply, but the temptation to get 1, 3 or even 5 percent back on my purchase was too strong. I caved in and got a card.

However I do not regret it. I am using it very responsibly. Instead of swiping my debit card, I swipe my cash reward credit card. But at the end of every week, I transfer the money from my checking account to my credit card. Although, I can probably get away with transferring the funds only once a month, I prefer to do it more often. That way I won’t be tempted to spend the money that is in my checking account. And I can be sure to get the most out of a cash reward card because I never carry a balance.

Below I present one of the more popular cash rebate credit cards:

About the card

The Blue Cash Credit Card is issued by American Express.

The basics

• Variable purchase APR of 8.99%, 11.99% or 14.99%, depending on your credit rating, Cash Advance APR of 19.99%
• 3% balance transfer fee ($5 minimum, $99 maximum)
• 20 day grace period
• no annual fee
• $35 over the limit fee
• $19 late fee if the card balance is less than $400, $38 if card balance if $400 or more

The perks

• 0% APR on purchases for the first 12 months
• If initiated within the first 30 days of opening the card, 3.99% APR on balance transfers for the life of the transfer
• Earn up to 5% cash back on everyday purchases at grocery stores, drug stores and gas stations (Cash Rebates are credited to your account annually.)
• If your spend up to $6,500 annually, you get 1% cash rebate on you every day purchases, .5% back on other purchases
• If your spend more than $6,500 annually, then you get 5% cash rebate on you everyday purchases, 1.5% back on other purchases
• Car rental insurance provided free by American Express when you use this card to rent a car
• Provides free travel accident insurance up to $250,000 in the event of accidental death or dismemberment

This card may be right for you if like earning cash back rewards and if you pay your balance in full every month.

This card may not be right for you if carry a card balance from month to month. There are few other cards that can offer you a lower interest rate.

Credit card review

As far as cash rebate cards go, this is one of the elite. Overall, it is an excellent card! Most reward cards compensate for the cash rebates by charging higher interest rates. Although 8.99% isn’t the lowest interest around, it is definitely well below the norm. And what is nice about this card is that it is not only for those with superior credit. Even with an average credit rating, you’ll likely get the card if you applied. However, you’ll be paying a higher interest rate.

It is a great card, but don’t get enticed into moving to the 5% rebate tier. In order to get the highest rebates, you’ll have to make more than $6,500 in purchases annually. If you are not a big credit card spender, don’t start now. If you spend more than you can pay off at the end of the month, then the benefit of having this card diminishes.

Overall rating

I give it 5 out of 5 stars.

Apply for the Blue Cash® from American Express card here.

Have you ever slept at a Westin Hotel?  If not, you don’t know what you are missing.  A couple of years ago, I went to a business conference in Chicago.  The conference was held at a downtown Westin hotel right off of Lake Michigan. I was fortunate enough to get a hotel room in the same hotel.

What I saw of Chicago was nice.  I ate at Mike Ditka’s restaurant.  I window shopped at Burberry, Ralph Laruen, and Cartier. I took a stroll through the Water Tower Place.  But I did not get a chance to see much because I was too busy lying in the bosom of heaven.  The Westin hotel has the absolute best beds, ever! 

The bedding is white, soft and fluffy.  The mattress firmly supported, but smoothly contoured my body.  It felt like I was on a cloud. It was like nothing I ever experienced.

And apparently a lot of other people share the same sentiment.  That is why you can buy the mattress for $1,500 and the bedding for only $3,000 more.

Or if you don’t have $4,500 to spend on bedding, you can use the Starwood Preferred Guest Business Card to accumulate points for a free stay at the Westin or other participating Starwood Hotels.

About the card

The Starwood Preferred Guest Business Credit Card is issued by American Express.

The basics

• 14.99% APR for purchases, 19.99% APR for cash advances
• 3 % cash advance fee ($5 minimum, no maximum)
• 20 day grace period
• $45 annual fee
• $35 over the limit fee
• $19 late fee if card balance is less than $400, $38 if card balance if $400 or more

The perks

• 2.9% APR on purchases and balance transfers for the first six months
• Annual fee waived for the first year
• Earn points for free stays are Starwood Hotels, 1 Starpoint for every dollar spent on regular purchases, 2 Starpoints for every dollar spent at Starwood Hotels
• No black out dates
• Get 10,000 points with first purchase (that’s enough for a 3 night stay)
• Get extra savings with the OPEN Savings program, such as 5% off prepaid American Express cards, 5% off your Ruby Tuesday total bill, and 25% off ExpensAble software

This card may be right for you if you like spending time at Starwood hotels…Westin, Sheraton and W.

This card may not be right for you if you prefer a lower interest rate instead of points.

Credit card review

Overall, this is a decent card.  But, as with any reward card, there are trade offs.  To qualify for the card, you need good to excellent credit.  However, there are other cards in the good to excellent credit category that have lower interest rates.

The grace period on purchases is short.  Interest will begin to accrue before you get the bill.  Also, the cash advance fee has no set maximum.  Although, this is an emerging trend, there are still many cards that cap the cash advance fee at $50 or $75 dollars.

However, these things should not matter if you pay the balance in full every month and forgo cash advances.

The tier late fee approach is beneficial to customers who carry a negligible balance.  And the best part of the card… of course… you get to spend the night in heaven… for free.

Overall rating

I give it 4 out of 5 stars.

Apply for the Starwood Preferred Guest® Business Credit Card from American Express here.

Lately, the evils of the credit card industry have taken a back seat to the mortgage industry. But just because we don’t hear much anymore about the trickery of the credit card companies does not mean that is has gone away. Credit card companies generate tens of billions of dollars every year from fees. They collect these fees from consumers who use the cards. But fees are also collected from businesses that accept the cards. And eventually, the fees that are collected from businesses are passed down to the consumer in the form of higher prices.

Not only do the companies make money from fees, but they also make billions in interest. And I have got a story of my own about how I got taken with credit card interest payments.

About 6 years ago, I used a MBNA line of credit/credit card blend kind of thing to purchase a computer. The computer cost about $1,500 and my goal was to pay it off in a year. So every 10^th of the month, like clock work, I wrote out the check for $135, more or less, and mailed it to MBNA.

While I was in the process of paying off that debt, I was also paying on another credit card debt. And about four months after purchasing the computer, I had finished paying off the first debt. I had reached a milestone towards eliminating my debt, I was happy. The only credit bill I had left was for the computer.

Within 3 weeks of my paying off the first card, I got a notice from MBNA that my interest rate would increase in 30 days. I could not understand why they would increase my interest. I had never been late on a payment and I paid way more than the minimum.

By the way, my rate increased from about 12% to about 25%! I kid you not. It more than doubled over night… for no apparent reason. I figured it had to be a mistake.

So I called MBNA the next day to ask them what the heck was this all about. I had done everything right, so I was confused. And I was taken aback by what they used as justification to increase my rate. The rep told me that my rate increased because I had paid off that other credit card. I was even more baffled. I asked her what is wrong with paying off my debts. She said nothing really, but from our perspective, you now have more available credit to incur more debt.

Their logic… having more available credit put me at a higher risk to incur more debts. If I incur more debt, I may not be able to pay them back.

Seriously, I thought she was joking. That was the most ridiculous thing I had ever heard. They perceived me a larger risk because I had paid off my bills?!? But I guess those are the kinds of tactics credit cards companies use.

I was so upset with MBNA. I could not afford to pay the bill in full. And I absolutely refused to pay them 25% interest. So I transferred the remaining balance to Discover. And of course, I incurred a balance transfer fee to do so.

But anyway, these kinds of stories are the exact thing that a “credit card bill of rights” can combat. I first heard of this concept in 2000 by then presidential candidate, Ralph Nader.

Nader wanted to put an end to these kinds of practices. He also wanted to protect consumers by banning deceptive marketing and making rates, fees and billing practices transparent.

Nader’s bills of rights never came to fruition, but in 2006 a senate bill was introduced which offered similar rights. That bill did not make it very far. But last week another so called “credit card bill of rights” passed out of the House Financial Services Committee.

This bill would force credit card companies to give a 45 days notice when they intend to increase interest rate and would prevent retroactive rate increases. It would also require the companies to send out invoices 25 days in advance of the payment due date.

Although it is highly likely that this bill will die in Congress, I like that some of our legislators are concerned about the way big businesses continue to fleece the average American. Hopefully if we scream loud enough about the issue, we can create enough ruckus to get this bills of rights put into law.

Who are they?

Columbus Bank and Trust was established on January 1^st 1888. Headquartered out of Columbus, GA, the bank reports over six billion and has 22 offices, most of which are clustered in or around the city of Columbus. In the 1980’s, it acquired 3 other Georgia based banks, First United Bank, Bank of Manchester and Buena Vista Loan and Savings Bank.

Stephen Melton, University of Georgia law school graduate, is the banks President and CEO. He has held this post since 1998. His predecessor, Sam Wellborn moved on to head a new division at the bank’s holding company, Synovus Financial Corporation.

Just like with other banking and financial institutions, Columbus Bank and Trust has seen its share of financial tumultuousness lately. Shares of the bank are paired with the 30 or so other holdings of Synovus and is traded as one under SNV. For the past year, with prices hovering about the $10 mark, SNV shares have been trading at a 10 year low.

In the news

Earlier this year Columbus Bank and Trust got in to a little trouble with the feds. The bank settled a FDIC initiated lawsuit regarding deception marketing of its bad credit credit cards. According to the suit, the bank did not properly disclose fees. The feds basically alleged that the bank bled its consumers dry by charging outrageous fees.

The cards were issued in the subprime market, where consumers have bad credit or no credit. In this market, consumers are so anxious to obtain or rebuild credit that they sometimes get themselves into raw deals. The feds and many consumer advocacy groups feel that Columbus Bank and Trust, and other institutions that cater to this subprime market, took advantage of their clients.

The Columbus Bank and Trust’s bad credit credit cards were marketed by a third party, CompuCredit. As a part of the settlement, the bank agreed to pay $2.4 million and to maintain $7.5 million in a restitution account for credit card account holders. Restitutions may be made available to account holders depending on the outcome of the FDIC’s suit against CompuCredit.

Many consumers complained about all of the fees that resulted in a dramatic reduction in their initial available balance. Many times, more than half of the $300 credit limit was tapped before the consumer ever got the card. So Columbus Bank and Trust also agreed to clearly disclose all account fees and initial available balance to card holders.

The card

Ok… I read here that the Columbus Bank and Trust issued Aspen credit card has been discontinued. But here I see that the Aspen Credit Card does exist, but that it is issued by First Bank & Trust. I could not find any links between the two banks, so this one has got me kind of confused.

So I figured I’d go the people, hopefully Aspen card holders, to get some clarification. And I found that some claim there is a Columbus Bank and Trust issued Aspen Card while others claim there is a First Bank and Trust issued Aspen Card. So I don’t know what to think.

My take

Well… since I can’t find a reliable source of information about the Aspen Credit Card… I’ll give my general opinion about these so called “bad credit credit cards”

The cards are used to help rebuild poor credit. However, there are usually a lot of fees associated with having one. In most instances the fees are excessive when compared to the perceived benefit. If you need to rebuild your credit, there are other credit cards options you can choose… which you can read about here.

Alright, so you have bad credit? Now what are you going to do about it? The options are simple… you can repair it or you can not repair it. Easy enough, right?

Having poor credit can get in the way of many things… buying a house, renting an apartment or even getting a cell phone or cable television. Also, having bad credit can be expensive. Even if a lender is willing to extend you credit, they’ll likely apply an interest rate that is 2 or 3 times the norm. Since poor credit can affect a person’s life is so many ways, most people choose to fix it.

But rebuilding credit is difficult and can take a long time. The reason it can take long is because negative items can remain on a credit report for nearly 7 to 10 years. And it can be difficult because your credit score is based on a very complicated formula which takes more into account than whether you have been paying your bills on time for the past 12 months.

So what can you do to boost your credit score?

First, you have to demonstrate that you are credit worthy. You can start by paying all of your bills on time. You can also try to pay down old collection accounts. However, this may not help your credit score. Old debt is not as a big of a factor on your credit score than recent debt. But paying off old debt can suggest to a potential lender that you are serious about righting your financial wrongs.

Getting a new credit card is another thing you can do. If you open a new account and use it wisely, this shows that you can now handle credit more responsibly. But… and this is a BIG but… it is hard for people with bad credit to get approved for a new credit account.

You can start slowly by opting for a gas or department store card. These are easier to get than the major credit cards. However, these cards have very limited use.

Another option is to apply for a secured credit card. Generally, these cards have a Visa or MasterCard logo so you can use them anywhere. However, although these are called credit cards, they typically work like debit cards… (plus they have a bunch of fees). The limit on a secured card is based on the amount that you have in a deposit account. You can usually charge up to half of what is on deposit.

A final option is applying for a credit card that is specially intended for people with bad credit, such as the Tribute and First Savings cards.

The Horizon Gold card is another one of these so called bad credit credit cards. Approval is virtually guaranteed. They’ll report your history to the three major credit bureaus, TransUnion, Experian and Equifax. There is also a monthly maintenance fee that can range from $15 to $21 dollars. But the thing that is different about this card… there is no Visa or MasterCard and it can only be used to make purchases at the Horizon website.

And just as with other sub prime credit cards… cardholders have many complaints about the Horizon Gold card.

Rebuilding credit can be daunting. However, don’t be deceived into trying something that can make the situation worse. Learn what about what will and what will not improve your credit score. Then use that new found knowledge to rebuild your credit.

Who are they?

In 2001, the Wachovia Corporation was born through the merger of Wachovia and First Union banks. Today, the company operates over 3300 offices in 23 states. Wachovia offices can even be found in Nassau, London, Georgetown and the Grand Cayman. With 15 million customers and $450 billion in deposits, Wachovia ranks as the fourth largest holding company. Its unique name is a derivative of Wachau, which was the name given to a group of early North Carolina settlers.

Earlier this month, Robert Steele, a University of Chicago graduate and former U.S. Department of Treasury under secretary, was brought on to take over the role of CEO. The position was vacated by Ken Thompson, who retired in the beginning of June.

In the news

Wachovia has been experiencing some financial instability in recent quarters. One year ago, Wachovia (WB) shares were trading for $50 each. On July 15^th of this year, shares were barely selling for $10. However, as a sign of good faith, CEO Robert Steele invested over $16 million of his own money in Wachovia one million shares of stock. You can chalk this up to either insiders’ knowledge or optimism about good things to come. Despite Mr. Steele’s hopefulness, Wachovia stock is still on many do not buy lists.

On the same day Mr. Steele purchased the shares, Wachovia announced the elimination of at least 10,000 positions. In the same announcement, the company reported that it will be reducing dividend payments to 5 cents per share.

In other news:

Wachovia’s will soon be in search of a new CFO. Tom Wurtz, the current CFO, is expected to resign from the position soon.

The state of New York filed a suit against UBS amidst accusations of fraud and deceptive marketing practices. Wachovia may soon find itself in the same predicament. Missouri’s Secretary of State office searched Wachovia offices looking for evidence resulting from similar allegations.

And aside from its financial troubles, Wachovia can also be a dangerous place to work. In the past month there has been story, after story, after story, after story (and many more) of armed heists at branch locations.

The card

The basics

• For new accounts, an introductory APR of 0% on balance transfers for twelve months
• Depending on the level of the credit card account (classic, platinum, etc.), APRs range from as little as 6.99% to 16.99%
• Annual fee - depending on the card the annual fee is either zero or $29
• 25 day grace periods
• Tier structured late fee of $15, $29 or $39 depending on the card balance
• $20 over the limit fee
• 1% currency exchange fee

The extras

• Membership in the Wachovia Possibilities Rewards program
• One late fee and over the limit fee will be automatically waived every 12 month period
• Can be link to your Wachovia checking account for free overdraft protection
• A one percent reduction in APR for Wachovia employees

My take

As far as credit cards go… I like Wachovia. The terms are reasonable and the perks are nice. There are three things that really stand out about the card. First… the tiered late fee structure. Most credit card companies sock you with a $39 fee even if your card balance is $1. Secondly, the over the limit fee is one of the lowest I’ve see. The norm is somewhere between $29 and $39.

And finally, automatic fee forgiveness every 12 months is an attractive deal. Most companies will waive the fee every so often if they see that this is not your typical m.o. However, you have to call and ask for the waiver. The rep has to put you on hold to discuss the situation with the manager. The manager has to lecture you about being late or over the limit. Then they may or may not ok it. In other words, it can sometimes be a hassle to get the fee waived. But Wachovia does it automatically.

My take: I would be hesistant about recommending that you buy $16 million worth of Wachovia stock, but their credit card is a good bet.

Who are they?

In 1962 Sam Walton opened his first Wal-Mart store. He operated the store under a simple premise, buy products in large quantities to take advantage of volume discounts. He was also skillful at mastering the just in time inventory strategy. Actually Wal-Mart’s inventory management strategy is iconic and is studied in Marketing and Inventory Control classes around the world.

The company’s stock has often been considered the premier buy. You may have heard many people say, if I had bought a hundred shares of Wal-Mart 20 years ago, I’d be rich. And it is true. Wal-Mart stock prices have outpaced that of its competitors. Wal-Mart has had great financial successes.

However, for all of their successes, Wal-Mart has been plagued with image problems since nearly its beginning. Its founder, Mr. Walton, is legendary for being cheap. This attribute is something that spilled into his staffing practices. More often than not, maximum employee compensation was the minimum the law required. He also had the tendency to hire as few people as possible to get the job done.

Several times, Wal-Mart has been accused of forcing employees to work off the clock to avoid paying overtime, scaling back on employee work hours to prevent them for qualifying for full time benefits such as health insurance, and gender bias when it came to promotions. The company has been sued and lost many times over because of these practices.

For these and other reasons, Wal-Mart has acquired its fair share of nemeses and has become the mark of many advocacies groups. In just about any city, when Wal-Mart applied for an operating permit … there was a long line of protesters waiting at the front door.

Wal-Mart… people either love them or hate them.

In the news

After more than 15 years, Wal-Mart has a new look. Late last month the company unveiled its new logo. The hope is that this new, more organic look will help peter out the company’s image problem.

In Park City, UT, Wal-Mart faces, yet again, strong aversion. At a public hearing, opponents fought fiercely to block the expansion of a Wal-Mart Supercenter. Their efforts were, at least, temporarily effective. The city commission delayed approval of a permit.

Wal-Mart concedes with a Chinese Union and agrees to increase the wages by 16% over the next two years.

The card

Looking for a Wal-Mart credit card? Well, you’ve got two options. There is a Wal-Mart credit card that can only be used in Wal-Mart stores. There is also a Wal-Mart Discover that can be used anywhere you see the Discover card logo. Here are some features of the Wal-Mart Discover card.

The basics

• No annual fee
• APR as low as 12.37%
• Issued by GE Bank
• 25 day grace period

The extras

• 1% cash back on all purchases
• Save 3 cents per gallon of gas at Wal-Mart gas stations
• Up to $100 cash advance with purchase
• No interest on purchase of $250 or more if paid within 12 months

My take

I am not one of those people who hate Wal-Mart, but I do shop there is little is possible. However, I think the card has really nice features. The two that I am most impressed with are the ability to save 3 cents per gallon on gas. Also, no interest for 12 months on purchase of $250 dollars or more is a very good offer.

My take: I have some personal reservations about the company as a whole. But as far as the Wal-Mart Discover card, it has nice extras. And when used responsibly, it can help save you money.