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The Wells Fargo Cash Wise Visa® card is no longer available. For other options, check out our list of the best Wells Fargo credit cards.

For every passionate credit card points guru out there, there’s someone else who just wants simple, no-hassle rewards they can easily redeem.

If that sounds like you, it’s hard to go wrong with a cash back card like the Wells Fargo Cash Wise Visa® card. With its solid 1.5% cash rewards rate on purchases and bonus rate of 1.8% cash rewards on qualified mobile wallet purchases in the first 12 months from account opening, you can rack up some pretty significant rewards — and since you can redeem rewards for cash, you can use them for anything your heart desires.

Built-in cellphone protection (up to $600, subject to a $25 deductible) if you pay your cellphone bill with the card and a bonus of $150 cash rewards if you spend $500 in purchases within the first 3 months of opening your account sweeten the pot for this one. But is a cash back card right for you? And if so, is this the best card for you? Read on for the full scoop.

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Wells Fargo Cash Wise Visa® card

Wells Fargo Cash Wise Visa® card

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1. The rundown: Everything we like about Wells Fargo Cash Wise Visa® card
2. Heads up: What you should consider before applying for Wells Fargo Cash Wise Visa® card
3. Do the math: How to get the most out of the Wells Fargo Cash Wise Visa® card
4. The competition: How Wells Fargo Cash Wise Visa® card stacks up against similar cards
5. Bottom line: Is the Wells Fargo Cash Wise Visa® card right for you?

The rundown: Everything we like about Wells Fargo Cash Wise Visa® card

There’s a lot to like about the Wells Fargo Cash Wise Visa® card.

Rewards

With a flat unlimited rate of 1.5% cash rewards on purchases, the Wells Fargo Cash Wise Visa® card can earn you solid rewards, with no need to remember to target specific categories or merchants to get the most out of your rewards. For someone who wants simple, no-hassle rewards, this is a great place to start.

Sweetening the deal, you can earn a higher rewards rate of 1.8% cash rewards on qualified mobile wallet purchases for the first 12 months from opening your account.

Bonus

The Wells Fargo Cash Wise Visa® card also comes with a cash rewards bonus of $150 when you spend $500 on purchases in the first 3 months of opening your account.

Protect your cellphone

Aside from the standard perks and rewards, you can get up to $600 protection against covered damage or theft of your phone if you pay your mobile phone bill with your Wells Fargo Cash Wise Visa® card. Note: This is subject to a $25 deductible, and there’s a maximum of $1,200 in claims every 12 months.

Low intro APR

The card offers a 0% intro APR on purchases and qualifying balance transfers for the first 15 months after account opening (balance transfers made within 120 days qualify for the intro rate). After the intro period, the APR jumps to a variable 14.49% - 24.99% on both purchases and balance transfers. Watch out for that balance transfer fee, though: 3% intro for 120 days from account opening, then up to 5%; minimum: $5.

No annual fee

No need to worry if you’ll earn enough rewards with this card to offset its annual fee, since it doesn’t have one.

Heads up: What you should consider before applying for Wells Fargo Cash Wise Visa® card

This is a solid cash back card to use domestically, but if you’re looking for a card to use internationally, you might want to look elsewhere. Travel credit cards can offer higher rewards rates and larger sign-up bonuses, so another card may get you more bang for your buck if you’re hoping to use the rewards for travel. Even more crucially, the Wells Fargo Cash Wise Visa® card has a 3% foreign transaction fee, meaning that using it for shopping abroad could get expensive quickly.

Also note that Wells Fargo Cash Wise Visa® card calls for a $20 minimum to redeem cash rewards via ATM and a $25 minimum for redemption by phone or online. So you should be comfortable waiting to redeem your rewards until they’ve crossed that threshold.

Do cash back cards or travel rewards cards offer better rewards?

Travel credit cards tend to earn higher rewards rates and have higher sign-up bonuses than cash back cards. But value depends on what you’ll use — if you’re unlikely to redeem travel rewards or are more interested in the flexibility of cash, you might get more value out of a cash back card.

Do the math: How to get the most out of the Wells Fargo Cash Wise Visa® card

Part of the appeal of the Wells Fargo Cash Wise Visa® card is its simplicity: For the most part, use your card for purchases and you’ll get the solid 1.5% cash rewards. But there are a couple of things you can do to make sure you’re getting the most out of your earnings.

Pay your phone bill

One of the unique perks of the Wells Fargo Cash Wise Visa® card is cellphone protection for covered damage or theft if your phone is damaged or stolen. So try to pay your cellphone bill with your card so that you qualify should that day come.

Use mobile wallets whenever possible in the first 12 months

Using Apple Pay® and Google Pay™ in the first 12 months of opening your account can get your cash rewards bumped to 1.8% on qualified mobile wallet purchases. So keep your eyes peeled for mobile wallet readers at your favorite shops — the rewards can really start to add up.

Traveling abroad? Keep it in your wallet.

With its 3% foreign transaction fee, this card is an expensive choice while out of the country.

Bottom line: Is the Wells Fargo Cash Wise Visa® card right for you?

If you’re looking for a simple cash back card with a solid rewards rate, consider the Wells Fargo Cash Wise Visa® card. It’s a top contender among the no-fuss cash back card category. And it’s an especially good value if you’re able to make use of the cellphone protection plan and the first-year mobile wallet bonus cash rewards rate. Just watch out when taking this card abroad.

Filing taxes can be a tricky process, and if you’ve never done it before, it can be especially intimidating. But with a little preparation and some simple tools, you can get it done — maybe even more painlessly than you think.

This guide will walk you through everything you need to know, including setting yourself up for success with good organization throughout the year, understanding paperwork and common deductions, and, finally, filing your return (and hopefully getting that coveted tax refund). Take a deep breath, read on, and get ready for your simplest tax season imaginable.

The big picture

Why do you have to file tax returns?

If you have a steady job with an employer, you’re actually probably already paying taxes each time you get a paycheck. Your employer withholds a certain amount from every paycheck to pay income tax based on what you’re likely to owe. If you’re self-employed, you should have (hopefully) paid quarterly taxes throughout the year. However, many factors influence what you’ll potentially owe, so when tax time rolls around, it’s possible you’ve overpaid or underpaid.

Filing your tax return is what calculates the total taxes you owe the government; the amount of deductions, credits, or tax breaks you qualify for; and how much you’ve already paid. If it turns out you’ve paid more than you owe, you’ll get a tax refund to repay the overage. If you haven’t paid enough, you’ll have to pay the difference.

Who must file taxes?

Whether you need to file a tax return comes down to your tax filing status. Your tax filing status takes into account your income, age, marital status and whether you qualify as a head of household.

If you earned an income over the past year, it’s likely you’ll have to file a tax return, even if you don’t end up owing any taxes. But especially if you’re a first-time filer, it’s good to confirm whether you need to file.

You may not need to file a tax return if your income was below a certain threshold. For 2017, use the chart below to see if you need to file.

There are a few caveats, so if you have any questions, consult a tax professional or take a look at IRS Publication 17.

As a first-time filer, you may also want to check whether anyone (for instance, a parent) is claiming you as a dependent on their tax return. If a parent is claiming you as a dependent, you still may need to file taxes, but you will not be able to claim your own personal exemption.

When should you file your taxes?

Timing is important for taxes. You should start receiving important tax documents from your employer by January or early February of each year, and you can start filing your taxes soon after.

The deadline to file your tax return is usually April 15 or soon after, depending on weekends and holidays. If you’re unable to file by this date, you can apply for a six-month extension to file your tax return, but you will still have to pay your taxes by the April filing deadline.

How can you pay taxes before filing your return?

It can seem like an oxymoron that you get an extension to file your taxes but not to pay them. What’s up with this? How are you supposed to know how much you owe if you haven’t filled out your tax form yet?

“The short answer is that the government wants its money when its due, even if you are not sure the exact amount you owe,” says Geoffrey Kulik of Sterck Kulik O’Neill accounting group. “So you need to estimate what you will owe and pay that amount by the April tax deadline.”

If you’re able to, the easiest thing is likely to file your taxes on time.

“Most people paying taxes the first time have simple sources of income and will know the numbers for their return by the beginning of February. So these people won’t need an extension,” Kulik says. “But if you do have sources of income like partnerships where your income will be reported to you too late for you to file in April, you simply have to make an intelligent guess on your tax bill. We help many of our clients estimate their tax bills every year.”

Setting yourself up for success

Even though your tax return is due in mid-April, you can do a few simple things throughout the year to make the process much easier for you.

Keep good records

Tax time can already feel stressful — the last thing you want is to be frantically searching for employment documents and crumpled receipts. Or worse, forgetting something important and making an error on your return.

Thanks to modern technology, keeping your financial records safe and organized has never been easier. To make tax filing easy, save digital records to a folder stored on a cloud service like Dropbox or Google Drive. When you get paper documents you need to save, you can use your phone to snap a photo or scan them and save the newly digitized documents into the same folder. When tax time rolls around, you’ll have everything you need in one place.

File early

While you do have until mid-April to file your tax return, it’s a good idea to get started as soon as you receive your essential tax documents. This helps give you more time to resolve any issues that may come up over the course of preparing your return, or to seek help from a professional tax preparer if your situation seems to warrant it.

Even if your tax return is simple, it never hurts to file early. If an identity thief has access to your name and Social Security number, it’s possible for that person to file a fraudulent tax return and receive your tax refund. Victims of this type of theft often only find out about the fraud when they file their own tax return and discover someone else has already submitted one.

Filing your tax return early is no substitute for protecting your personal data, but it can help you reduce the risk of this particular type of fraud.

Understanding the paperwork

You can find all the federal tax forms you need on the IRS website, and links for all state tax forms here. Here are some forms that may be most relevant to first-time filers.

1040
This is the form that you’ll file as your annual income tax return. Multiple versions of the 1040 are available, and which one you should file will depend on factors such as whether you’ll itemize deductions, the type of income you have, how much you made last year, and your filing status. Many first-time filers who have very simple income sources and no dependents can file the 1040EZ, the easiest version of the 1040 to complete. You can learn more about which form might be right for you by visiting the IRS website.

Schedule A, Form 1040
If you decide to itemize your deductions instead of taking the standard deduction, you’ll need to file Schedule A along with your Form 1040. This form will help you add up your available deductions.

Schedule C, Form 1040
If you work for yourself or are the sole proprietor of a small business, you may need to fill out a Schedule C, which reports the profits and losses of your business.

W-2
For many people, the information on their W-2 is the foundation of filling out their tax return. Your W-2 tells you how much money you earned and how much money was withheld to pay for federal and state income tax, Social Security and Medicare.

By early February, you should receive a W-2 from each employer who’s paid you a salary the previous year. Note that you may have multiple W-2s, but you’ll still only file one tax return.

W-4
The W-4 form is actually a form you fill out when you start a job. You give this form to your employer to help the company figure out how much tax you’re likely to owe (and thus, how much to withhold from your paycheck).

It’s important to keep your W-4 updated when major factors in your life that affect your taxes change. The IRS recommends filing an amended W-4 with your employer within 10 days of a significant life event like getting married or divorced, or having a baby.

Related Read

How to avoid going into debt while waiting for your tax refund

1099-MISC or 1099-K
You should receive a 1099-MISC or 1099-K form for any independent contract work you’ve done that’s paid you more than $600. This form only lists your earnings, as no taxes were withheld at the time the money was paid out to you. This means you’ll have to pay any and all taxes due on these earnings at tax time, potentially including Social Security and Medicare taxes.

4868
If you’re unable to file your taxes by the deadline, use form 4868 to apply for an extension of time to file. While this extension gives you more time to file your taxes, it does not give you an extension to pay your taxes. However, if you need more time to pay your taxes, you may be able to request a payment plan from the IRS.

Form 1098-E
This form covers any interest you may have paid on student loans over the past year, which could potentially set you up for a deduction. You should receive these from your student loan provider.

Younger taxpayers should also be aware of some other possible deductions, experts say.

“Moving expenses should also be on the radar when someone lands a first job or changes jobs,” says Nate Smith, director at CBIZ MHM’s National Tax Office. “Certain moving expenses are deductible when a new principal place of work is at least 50 miles farther from the former residence than was the former place of work. For a first job, the move need only be at least 50 miles from the former residence. In either case, the taxpayer must remain a full-time employee for at least 39 weeks during the 12-month period following the move.”

And it’s never too early to look ahead to retirement.

“Tax-deductible contributions to [traditional] IRAs can be as high as $5,500 for younger taxpayers,” Smith says. “Assuming the IRA will serve as the primary source of income in retirement, the deduction can be a very good deal, because of the tax rate arbitrage in play.”

You can find a full list of tax credits and deductions on the IRS website.

One thing to note: especially as a first-time filer, it’s likely that the standard deduction may be worth more than any deductions you might qualify for — especially if you’re single with no dependents, earn an average income and don’t own any property.

Related Read

Important tax deadlines you need to know

Preparing and filing your tax return

Once you’ve got the forms you need and all your documentation in order, preparing and filing your tax return can actually be pretty straightforward.

To make things easier, use an online tool. It’s a simple experience that will walk you through preparing and filing your federal and state tax returns by asking you questions about your life over the past year. Just have your paperwork at the ready and answer the questions, and filling out your tax return can be easier than you imagined.

If your taxes are particularly complicated, though, you might want to investigate another solution. It may make sense to find a professional tax preparer who can help you out.

“Whenever you have multiple deductions (home office, charitable, job related) or have many sources of income, there is definitely a need for a tax preparer,” says Carlos Dias Jr., a financial adviser with specialized tax knowledge at MVP Wealth Management Group and Excel Tax & Wealth Group. Costs can vary, so be sure to ask for rates before you choose a tax preparer. “Each tax preparer works differently, but if your tax return doesn’t have multiple schedules and isn’t as involved, it can range from $75 to $185 or more,” Dias says.

Since you’ll be trusting any tax preparer with your personal information, make sure to do your homework before selecting the tax professional you want to work with.

And don’t forget that tax preparers come with different specialties and skill sets.

“The best ways of finding a good professional tax preparer is to ask your friends whose financial situation is similar to yours,” says Kulik of Sterck Kulik O’Neill. “For example, if you’re young and your first job is working for a start-up, you’d want recommendations from coworkers who are also dealing with stock options and other types of incentive compensation. A tax professional who is familiar with options or gig economy issues is going to be more in tune with your needs than a professional whose clients are mostly older people who are living off their investments in retirement.”

What’s next?

Congratulations! You should be feeling pretty confident about your tax know-how by now. By keeping your documents safe and organized in one place; keeping good records of income, deductible expenses, and other major life events; and filing your tax return in a timely manner, you might be surprised by how straightforward filing taxes can be.

If you’re a business owner, establishing business credit can help protect your personal credit, secure competitive loans, get better insurance rates and more. Though business credit scores are similar to personal credit scores, there are some key differences. This guide will lead you through it all.

Healthy business credit is one of the most essential ingredients to building a successful business.

Building business credit can help protect your personal credit, limit personal liability, increase credit capacity, help you secure more-favorable terms on loans, help you qualify for lower insurance premiums, and impress anyone evaluating your business — whether they’re investors, partners, vendors or clients.

Our guide will teach you everything you need to know about establishing and building a good business credit score so that you can take your company to the next level.

What’s a business credit score?

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If you’re familiar with personal credit scores, then you’ll recognize business credit scores as a similar concept.

As a quick refresh, your personal credit score is a three-digit number that helps lenders decide whether to offer you credit, and on what terms.

The way they see it, the higher your credit scores are, the higher your likelihood to pay off debt on time. This comes into play when applying for credit cards or loans, and is determined using information from your personal credit reports.

A business credit score performs the same function for your business as a personal score does for your own finances. Lenders and creditors look to minimize risk when giving out loans, so they look for information on whether a business is likely to repay the loan.

Business credit reporting agencies collect information on your business’s financial history and can use it to put together an assessment of your risk level for lenders — this serves as your business credit score.

The higher your score, the likelier you appear to lenders to be able to repay your debts. And that means it might be easier for you to get approved for loans and qualify for lower insurance premiums.

Related Read

Business credit scores explained

The difference between your personal credit scores and your business credit scores

There are a few key differences between personal and business credit scores you should know. 

• Whereas your personal credit is scored on a 300-to-850 scale, business credit scores are often scored on a 1-to-100 scale.
• Since businesses don’t have Social Security numbers, they’re instead tracked by their name, address and employer identification number, also known as an EIN.
• Unlike personal credit scores, business credit scores are publicly available. Anyone can go to one of the reporting agencies and look up your business’s score — though they may have to pay to do so.
• Several business credit reporting agencies track business credit scores. Three of the major ones are Dun & Bradstreet, Equifax Business and Experian Business. You may have to apply to these bureaus in order to actually be tracked. For instance, Dun & Bradstreet uses what it calls a D-U-N-S^® Number to track each physical location of the businesses — you have to apply for one in order to show up in its system. Having a nine-digit D-U-N-S^® Number allows other companies or the government to make an informed decision on whether to lend to or work with you.

Is a business credit score necessary?

Whether you’re starting up or already running a business, you might have so much on your plate that establishing business credit may be low on your list of priorities — and we can’t blame you. We know you’re swamped.

“For many entrepreneurs, business credit isn’t even on their radar until something happens, such as getting denied for insurance or small-business loans,” says Gerri Detweiler, education director at Nav, a company that helps business owners track and manage their business credit.

“They aren’t checking their business credit reports, so they don’t know if they are accurate, and they aren’t monitoring them for negative events or identity theft,” she explains.

But establishing business credit early on comes with a number of advantages.

• Good credit scores can enable you to take out business loans at lower rates, or qualify for lower insurance premiums.
• Establishing business credit can also enable you to take out business loans without signing a personal guarantee to be liable for any debts your business is unable to repay.
• Good business credit also makes your business look good. Creditors are not the only ones who might be interested in your business credit scores. Investors, insurance companies and potential business partners may also request to see your reports.

How to establish and build business credit

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Building good business credit is similar to building personal credit. But, as we’ve mentioned, there are a few key differences.

“[A] common mistake is assuming that as long as you pay your bills on time, your business credit is fine,” Detweiler says. “That may be true, but not always. Many lenders and vendors don’t report to commercial [reporting] agencies, which means you may not have a business credit [score], even after years in business.”

This could lead to a history of on-time payments that goes unreflected.

Here are some important steps you can take to ensure you’re actually building business credit.

5 steps to building business credit

1. Make sure your business is legally registered

Incorporate or form an LLC, and get a federal employer identification number. Some business credit reporting agencies will use this to track your business instead of the Social Security number they use to track personal credit.

2. Get a business credit card and a business bank account

Keep your business card strictly for business and your personal credit card for personal expenses to make your taxes easier down the line. Otherwise, follow all the good credit card habits you would use to build good personal credit — such as keeping your credit utilization low and making consistent, on-time payments.

3. Work with vendors that report payments to the business credit bureaus

If you’re not sure whether one of your vendors reports payments to the credit bureaus, feel free to ask. It’s OK to prioritize working with vendors who report payments.

4. Pay on time — or, better yet, early

Late payments are one of the worst things you could do for your business credit scores, but paying early is even better than on time. The Dun & Bradstreet PAYDEX^® score, a commonly used score, will only award you its highest score if you pay vendors early.

5. Check on your scores regularly

Dun & Bradstreet, Equifax Business and Experian Business are the major agencies tracking business credit scores, but checking their reports will cost you. It’s worth keeping track of your business credit scores though, especially if you’re thinking about applying for a business loan in the near future.

Related Read

Compare business cards for business owners and entrepreneurs on Credit Karma

Does personal credit still matter for business?

Certain business credit scores will take both business and personal credit reports into account.

“Your personal and business credit reports are kept in separate databases. They do not impact each other,” Detweiler says. “However, there are a few business credit cards and financing options that may report to both commercial and personal credit. And there are some credit scores, such as the FICO^® SBSS℠, that include data from both personal and business credit.”

“Experian also has a credit score that can take both into account. So it’s important for business owners to understand, monitor and build both,” she says.

Related Read

How to build business credit with poor personal credit

How to see your business credit score

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Since business credit scores vary by bureau, it makes sense to check in on your credit scores with all three bureaus from time to time. Here’s how.

Dun & Bradstreet

Dun & Bradstreet uses a PAYDEX^® score, which measures a business’s payment history on a 1-to-100 scale. A score of 1–49 indicates a high risk of late payment, 50–79 indicates moderate risk, and 80–100 represents low risk.

To view your credit file, you’ll need the CreditBuilder™ Plus product. Signing up for CreditBuilder™ Plus comes with a D-U-N-S^® Number, which is how Dun & Bradstreet will track your credit history.

Along with your full credit file and score, you’ll also be able to add positive payment experiences to your file and dispute inaccurate information that appears on your report.

Once you’ve reviewed your credit file, you could potentially downgrade to its free CreditSignal^® product, which allows you to monitor changes to your D&B scores and ratings, and lets you know when your business credit file has been purchased (possibly by a potential lender or business partner). Note that this product doesn’t actually give you access to your credit file.

Equifax

To order an Equifax business credit report, head to its website and search for your business.

This report — the same that could be ordered by your creditors, partners or competitors — shows your Equifax Business Credit Risk Score™ and your Equifax Business Failure Score™, which measure your likelihood of repaying loans on time and the likelihood of your business failing, respectively.

Experian

To get your Experian business credit score, go to its website, where you can purchase a CreditScore℠ Report, which will include your Experian business credit score.

For additional information like payment history and inquiry details, you can get a ProfilePlus℠ Report. It also offers a subscription service that allows ongoing access to the information.

Similar to the other scores, the Experian business credit score is on a 1–100 scale designed to predict derogatory payment behavior. The algorithm is based on credit history, utilization, balances, trends, public records and demographic information.

A score of 1–10 means you are considered a high risk to lenders, a score of 11–25 means you’re medium to high, a score of 26–50 means you’re medium, a score of 51–75 means you’re low to medium, and a score of 76–100 means you’re a low risk to lenders.

How to dispute errors on your business credit reports

As with your personal credit scores, it’s important to check your business credit scores regularly, as the credit bureaus can make mistakes or have incorrect information on your reports.

“Your business could get mixed up with that of another, which could mean negative information from another business is mixed with yours,” Detweiler says. “Or information such as UCC filings could be affecting your business credit and you don’t know it.”

Contacting the credit bureaus directly is the best way to resolve this type of discrepancy. If you’re able to prove that their information is incorrect, they will adjust the reports accordingly.

We know your company is enormously important to you. So you should know your business credit scores are one of the most important data points that potential creditors, investors and partners will look at to evaluate your business.

As such, it pays to stay on top of it. Register your business legally and apply for a federal employer identification number and a D-U-N-S® Number. Get a business credit card and bank account, and make all your business purchases with them. Work with vendors who report to the business credit reporting agencies, and pay them early.

Once you have these good habits in place, check back on your scores regularly to make sure your credit reports are up to date and accurate.

Are you looking for the best Discover credit card for travel? The Discover it® Miles card could be a good option.

If you compare all the travel credit cards on the market, you may find that many come with tempting perks and bonuses, but they can also saddle you with a steep annual fee. If you’re not sure you’ll spend enough on travel to make a pricey card worth it, or if you don’t want to worry about math, this travel card from Discover may be what you’re looking for.

You’ll earn 1.5 miles per $1 spent, and at the end of the first year, Discover will match all the miles you’ve earned.

With all of these perks and no annual fee, Discover it® Miles could be a great card to add to your wallet.

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1. The rundown: Everything we like about Discover it® Miles
2. Heads up: What you should consider before applying for Discover it® Miles
3. Do the math: How to get the most out of Discover it® Miles
4. The competition: How Discover it® Miles stacks up against similar cards
5. Bottom line: Is Discover it® Miles right for you?

The rundown: Everything we like about Discover it® Miles

The Discover it® Miles card is a refreshing change from travel credit cards that have high annual fees and complicated rewards. Instead, Discover it® Miles is a simple-to-use travel rewards card with no annual fee. Here’s what we like about it.

1.5 miles on every $1 you spend

Unlike some cards, which offer different earnings rates on different categories (sometimes even rotating quarterly), the Discover it® Miles card earns you a flat rate of 1.5 miles per $1 on every purchase, regardless of category. If you hate thinking about managing your category spending to make the most of your rewards, you’ll love this simplicity.

It will match the miles you earn for your first year

Discover will match all the miles you earn in your first year with the Discover it® Miles card. For instance, if you earn 30,000 miles on your card in the first year, you’ll receive another 30,000 at the end of your first year even if you’ve redeemed a portion of what you earned.

Many credit card sign-up bonuses are based on an amount spent within the first few months of opening the account, so this could provide additional flexibility if your spending is more spaced out over the year.

Flexible redemption options

Even though it has miles in the name, you can redeem your earnings for cash back as an electronic deposit to your bank account or as a statement credit, at a rate of 1 cent per mile.

No minimum redemption requirements

Even if you only have one mile in your account, you can redeem it, unlike some credit cards that require you to have a certain number of points or miles before you can redeem them.

No foreign transaction fees

As with most travel cards, there’s no foreign transaction fee. If you travel overseas or make purchases in a foreign currency, this can add up to significant savings. But note that Discover isn’t as widely accepted abroad as other credit card networks, such as Visa or Mastercard.

Heads up: What you should consider before applying for Discover it® Miles

The Discover it® Miles is a fairly simple card to understand. But there might be better cards out there for you. Here are a few things to note.

You may need a backup card

Some merchants don’t accept Discover, so if you’re looking for one credit card to use in all situations, this might not be the best bet for you.

You could be earning more rewards

Earning 1.5 miles per $1 with no annual fee is nothing to sneeze at, but some travel cards do earn higher rewards rates or come with more generous perks. If you travel regularly and spend thousands of dollars on travel each year (particularly if you’re loyal to certain airlines or hotels), you may get more out of another travel rewards card.

Do the math: How to get the most out of Discover it® Miles

If you’re new to travel cards and not sure if you’ll actually redeem the miles regularly, Discover it® Miles could be a good way to test the waters. Its flexible redemption option means you can treat it like a travel card or a cash back card, redeeming each mile for 1 cent deposited straight into your bank account or toward statement credit.

One way to get the most out of this card is to maximize the mile-to-mile match offered at the end of the first year. But remember not to spend more than you can afford to repay each month.

From our partner

Discover it® Miles

Discover it® Miles

3.6 out of 5

19 reviews

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The competition: How Discover it® Miles stacks up against similar cards

• Capital One Venture Rewards Credit Card: Two miles for every $1 spent on purchases, with an annual fee of $95.
• Bank of America® Travel Rewards credit card: 1.5 points for every $1 spent with an annual fee of $0.

Bottom line: Is Discover it® Miles right for you?

The Discover it® Miles card is more flexible than some of its competitors. With a flat rate of 1.5 miles per $1 spent on all purchases, you’ll never have to think about spending by category to make the most of your rewards.

So if you’re looking for a simple, flexible travel rewards card, Discover it® Miles could be a great fit for you.

On the other hand, if you find yourself spending thousands of dollars on travel each year, you might be able to squeeze more rewards and perks out of another travel card.

If you’ve ever seen your credit scores drop a few points after applying for a credit card, you know the impact a hard inquiry can have on your credit.

Hard inquiries generally occur when a lender or credit card issuer checks your credit when making a lending decision, and you typically have to authorize them.

But what about simply checking if you prequalify for a credit card? Can a prequalification hurt your credit scores?

The simple answer is “no,” but the full picture gets a bit more complicated.

Prequalification is typically considered a soft inquiry, and it won’t hurt your credit all on its own. In fact, it can be a helpful tool for lowering your risk of being rejected for a new credit card.

But prequalification is not a guarantee of approval, and if you want that new credit card, you’ll ultimately have to apply for it — and face the hard inquiry that goes along with it.

Before you apply for a prequalified card, it’s important to understand what “prequalification” means in the first place.

If you’ve shopped around for credit cards online, you’ve likely seen tools that allow you to check whether you’re prequalified before applying. Maybe you’ve even received an offer in the mail informing you that you’re prequalified for a certain card.

So, how do the credit card companies determine that you’re prequalified? In other words, how do they predict that you’ll be approved?

Well, it turns out they’re not actually mind readers.

Credit bureaus may have provided credit card companies with lists of consumers who have credit scores within a certain range.

The companies may then reach out to these consumers with offers for specific cards they’re likely to qualify for, based on this initial information. Since they didn’t get this information through a hard inquiry, your credit scores won’t be affected.

Now that we’ve got the basics out of the way, let’s dive a little deeper into what prequalification entails and what to look out for in terms of your credit scores.

• Can a prequalification hurt your credit scores?
• If I’m prequalified, am I guaranteed to get the card?
• Does checking my credit scores on Credit Karma count as a hard inquiry?

Can a prequalification hurt your credit scores?

A prequalification typically won’t affect your credit score because a hard inquiry usually isn’t involved, while a preapproval may affect your credit score since hard inquiries are more common. But not all lenders will use these definitions so be sure to find out what’s involved before starting the process. That said, having a prequalification or preapproval for a card won’t guarantee you’ll be approved. 

If you want to prequalify for a credit card, you can typically do that on the card issuer’s website — but not all lenders offer prequalification. 

If you try to prequalify for a card but get denied, there are some things you can do. First, you should try and find out why your prequalification was denied so you can try to get a better idea of what to focus on improving before applying again. If you need to get access to a credit card before you can work on your finances, you could apply for cards that may have better approval odds, like a secured card.

What’s a hard credit inquiry?

There are two types of credit inquiries: hard inquiries and soft inquiries.

Hard inquiries are typically triggered when you apply for a loan or credit card and the lender checks your credit when making a decision on your application.

While a new card or loan may follow a hard inquiry, a hard inquiry can also lower your credit scores by a few points. A hard inquiry may remain on your credit reports for up to two years, but the damage may be removed even before then.

Soft inquiries, on the other hand, typically happen when an employer or company checks your credit as part of a background check, or when you check your own credit. A soft inquiry may occur with or without your permission, but it won’t affect your credit scores.

As part of the prequalification process, a lender could perform a soft inquiry, which may give it enough information to predict whether you’re likely to be approved.

If I’m prequalified, am I guaranteed to get the card?

Prequalification is definitely not a guarantee that you’ll be approved. Rather, think of it as an invitation to apply.

The good news? Based on the information the credit card company has on you, you’re more likely to be approved for those offers you prequalify for. The catch? If you decide you want the card, you’ll still have to apply.

The credit card company will then perform a hard inquiry and decide whether to approve you for the card, and at what terms. It may be frustrating, but it’s important to know that it’s still possible to be rejected even though you prequalified.

On a brighter note, it’s also possible to be approved for a credit card even if you weren’t prequalified. This may be the case if you’ve worked to improve your credit over time or if you’re relatively new to credit and your name has never been on a marketing list.

To help minimize your chances of being rejected for a card, you can check your VantageScore 3.0 credit scores from two major credit bureaus and your likelihood of being approved for certain cards on Credit Karma.

Does checking my credit scores on Credit Karma count as a hard inquiry?

No, checking your own credit scores on Credit Karma doesn’t qualify as a hard inquiry, and you can do so as often as you’d like without it affecting your scores.

Bottom line

Checking to see if you’re prequalified for a credit card can be a great way to help minimize the risk of getting rejected. But actually applying for any credit card can trigger a hard inquiry that can impact your credit scores.

Just remember: Even if you’ve received a prequalified offer in the mail, or you’re shown to be prequalified by an online tool, it’s not a guarantee you’ll be approved.

Another course is to keep tabs on your current credit scores and compare them to the average approved range of credit scores for a product before applying.