Well this question is getting trickier and trickier. Why? Because the credit companies are getting smarter. You have multiple issues that you have to consider now not the least of which being the closing rate of so many banking institutions. On top of this you have the changes that are occurring. Frankly I am not sure how anyone is expected to survive if you are using your credit cards as anything other than a way to receive reward points. If you have money on your card that you can not pay off at any time then you are beholden to the credit companies and let me explain why this is so dangerous.

As many know Chase has now acquired Washington Mutual. Now I have a Washington Mutual credit card that I have had for 3+years. Today I received a notice that this card is now going to be a case card and they sent me new terms and conditions for this "new" card, even though I did not request it nor ask for it. They were kind enough to highlight the changes for me. Here are some of them:

1. My fixed rate is now an adjustable rate determined each month.

2. All fees and finance charges have been changed.

3. But here is the best one in my opinion. But remember they ALL have this in the fine print, if you read nothing else please read this carefully: "WE can change this agreement at any time, regardless of whether you have access to our account, by adding, deleting or modifying any provision. Our right to add, delete or modify provisions includes financial terms, such as the APRs and fees, and other terms such a the nature, extent, and enforcement of the rights and obligations you or may have relating to this agreement. Modifications, additions, or deletions are called "Changes" or a "Change" We will notify you of any Change if required by applicable law.

These Changes may be effective with notice only, at the time stated in or notice, in accordance with applicable law. Unless we state otherwise, and Chance will apply to the unpaid balances on your account and to new transactions.

The notice will describe any rights you may have with respect to any Change, and the consequences if you do or do not exercise those rights. For example, the notice may state that you may notify us in writing by a specified date if you do not want to accept certain Changes we are making. If you notify us in writing that you do not accept the changes, you account maybe close (if it is not already closed) and you will be obligated to pay our outstanding balance under the applicable terms of the agreement. If you do not notify us in writing by the date stated on the notice, or if you notify us but then use your account after the date stated on the notice, you will be deememd to accept all Changes in the notice and to accept and confirm all terms of your agreement and all Changes in prior notices we have sent you regardless of whether you have access to your account."

No lets look at that in layman's terms. Here it is in 1 sentence: They can do what they want and change what they want, if you disagree they cut you off.

Now you may say this doesn't affect you, your car is with Chase or Amex from the beginning. So you are OK right? Not necessarily. Remember that change clause is in everything and I stated at the beginning that CC companies are getting sneakier.

We have all read about the "breaches in security of the processing companies." This means that the CC companies have to send us out new cards. With these new cards often come new terms than what you originally agreed to, and different rewards. These new cards will be like most new cards, as soon as you use it you agree to the new terms.

So why not just stop using them or cancel the card? Here comes the real fun part, if you want to call it that, personally it makes me sick. Our credit scores are determined by the debt/income ratios. If you apply for too many cards this affects your score negatively. A very large portion of your score is determined by the longevity of your accounts as well. If you cancel them you hurt yourself tremendously as well. So as long as the new terms are somewhat acceptable we are pretty much stuck.

So Back to the question, how to apply for a credit card and not get ripped off? The simple answer is to only apply for a card that you know you can get, and get rewards that you can use. Make sure that you don't spend more on the card than you can pay off. Use the card as a debit card, not a line of credit. They can ALWAYS come back and change their terms. So if you owe lets say $1,000, and they change the terms, these new terms are applied to the $1,000.

Personally we never use cash anymore, but I also don't depend on the credit card. I use it to get the rewards, nothing more nothing less. This is your best avenue, and don't apply for too many in any given time. Pick what benefits you the most as a reward points/money back/travel rewards/etc, but don't spend more than you have so if they do change the terms you can get yourself out from under them.