Reasons to Use a Business Credit Card

Are you a small business owner? If so, you might want to consider applying for a business credit card. Although the interest rates on credit cards can be quite high, if you use your card responsibly and if you pay it off at the end of each billing cycle, having a credit card can be a real asset to your business. Or, if you do need to carry a balance for a period of time, you can take advantage of great introductory offers that will actually provide you with a rate that is lower than a conventional bank loan.

Obtaining Start Up Money for Your Business

Applying for a new credit card in your business’ name can be a great way to help you get the start up money you need in order to get your business off the ground. Rather than go through the trouble of applying for a conventional loan, you can use your credit card to make the purchases you need to get your business started. With many credit cards offering 0% APRs for the first twelve months of membership, you may be able to get your business started and get the card paid off before the interest rates kick in. Of course, if you don’t get the card paid off, you may face a high interest rate. So, make a solid business plan before you start making purchases.

Enjoying the Convenience of a Credit Card

There is no doubt that using a credit card to make your business purchases is very convenient. Most merchants and service providers accept credit cards for payment, which is far easier than carrying around a checkbook or cash. In addition, when you keep your expenditures on your credit card, it is easy to keep track of what you spend each month. In fact, if you choose to get credit cards for your employees, a business credit card will even break down your statement for each employee. That way, you can see precisely what your employees are spending. In most cases, you can even individualize the credit limits for each employee so you can be certain no one’s spending gets out of control.

Getting Credit Card Rewards

There are many potential financial rewards associated with using a business credit card. First, if you use a rewards credit card, you will earn points or cash back for the purchases you make. If you pay off your balance at the end of each month and you have a rewards credit card, you can actually make money with your credit card rather than lose it. In addition, many business credit cards offer discounts with merchants that business owners typically use, such as with stores that sell office supplies. Finally, the fact that your business name and logo can be put on your credit card has the reward of personal satisfaction – and may actually help you find new customers when you pull out the card and the cashier sees your logo on the side.


About the Author:
Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for www.reliacredit.com . For more info and to order your credit report with FREE credit score please visit www.reliacredit.com

Should You Get a Credit Card?

If you don’t have a credit card, you may be wondering if getting one is the right move for you. After all, we have all heard the horror stories involved with credit card usage – it is certainly very easy to let spending get out of control and to find yourself buried in debt. At the same time, there are many benefits associated with using a credit card as well. Therefore, in order to determine if getting a credit card is a good move for you, you should explore the pros and cons of credit card ownership.

Benefit #1 of Credit Card Ownership: Convenience

One of the greatest benefits of having a credit card is the fact that they are so convenient to use. Credit cards are accepted almost everywhere and are much easier to keep track of than cash and checkbooks. When it comes to pumping gas, you don’t even have to go inside when you have a credit card!

Drawback #1 of Credit Card Ownership: Debt

If you aren’t careful about your spending, it is easy to get yourself buried in debt. Once you add finance charges to your debt, you can find yourself paying hundreds of dollars each month for the convenience of credit card usage. Research has proven that people spend more when they use credit cards – so be careful and monitor your spending if you decide to get a credit card.

Benefit #2 to Credit Card Ownership: Protection

Having a credit card provides you with extra protection that you don’t get when you make purchases with cash, checks, or even debit cards. In fact, you are legally obligated to pay only $50 if someone takes your credit card and makes purchases with it. In many cases, the credit card company will waive the $50 as well. In addition, several credit cards offer purchase protection, extended warranty coverage, and even insurance coverage when you rent vehicles or when you travel.

Drawback #2 to Credit Card Ownership: Taxes

When it comes to taking out a loan, using a credit card isn’t necessarily your best option when it comes to saving money. Even if you happen to get a pretty good interest rate on your credit card, you may be better off using a home equity loan if you are taking out a big loan. This way, you can deduct the interest fees on your taxes. The finance charges you pay through a credit card are not deductible.

Benefit #3 to Credit Card Ownership: Rewards

Most credit cards offer some sort of rewards program. If you pay your credit card bill off at the end of the billing cycle, you can completely avoid finance charges while earning rewards with your credit card. Depending upon how much you spend, you could potentially earn hundreds of dollars each year with rewards credit cards.

About the Author: Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for www.reliacredit.com . For more info and to order your credit report with FREE credit score please visit www.reliacredit.com

Thinking About Transferring a Balance? Know What You are Getting Into Before You Complete the Transaction

When you receive an application from a credit card company in the mail, it may include an invitation to transfer your credit card balances to the new credit card. Or, you may even receive periodic invitations from your current credit card to complete a transfer at a low interest rate. You may be tempted to complete one of these transfers, and it is possible that performing a balance transfer is a good decision, but you need to know exactly what you are getting yourself into before you go ahead with the transaction.

Pay Attention to the Fees

While the credit card may be offering a balance transfer rate that is much lower than the interest rate you are currently paying, there may be a number of fees associated with the transfer as well. Generally, these fees are determined by calculating a percentage of the amount you are transferring and, while there may be a cap on how much you can be charged for a balance transfer, you can still end up paying over $100 to transfer your credit card balances. When all is said and done, the money you save on interest may be less than the money you are paying toward fees. Therefore, before you complete a balance transfer, be certain to find out about the fees that you will have to pay for the transaction.

Consider the APR

When you receive that enticing offer from the credit card company, the interest rate will likely be quite low. As a result, it will seem like a great idea to transfer your balances. Don’t just look at the introductory rate, however, as the ultimate rate of the credit card may be much higher than what you are currently paying. For example, you may receive a card with an introductory rate of 0% on balance transfers, but it reverts back to the standard 19.99% interest rate after the introductory period is over. Some cards will keep the low interest rate in place until the balance is paid off, but this is not always the case. Therefore, either make certain you pay the card off within that introductory period or don’t bother to make the transfer. Otherwise, you will likely spend more in finance charges if the ultimate APR is higher than what you are currently paying.

Find a Great Deal and Make a Plan

Some people try to evade their credit cards by jumping from one card to the next. Bouncing from one card to the next in an effort to keep your finance charges down will not pay off in the long run. Sure, it will help keep your finance charges, but the only way to take care of the problem is to work out a plan that allows you to get the debt paid down. So, rather than trying to work out a plan for transferring your balances over and over again, work on creating a plan that will allow you to get the debt paid off completely.

About the Author: Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for http://www.reliacredit.com/ . For more info and to order your credit report with FREE credit score please visit http://www.reliacredit.com/

The Credit Card Fees You Didn’t Know About

Do you know that you are paying for the convenience of using a credit card, even if you don’t make your purchases in plastic? Or, do you realize that using a rewards credit card to make a purchase actually cuts into the profits of the merchant you are purchasing from? Most consumer do not know that using a credit card actually costs merchants each time that card is swiped. In fact, credit card use has been a very touch subjects for many merchants and several of them are banding together to try to bring about a change.

Understanding Interchange Fees

When a place of business decides to provide its customers with the option to pay with a credit card, that business has to set up an account with a credit card processing company. The transactions then filter through that company in order to ultimately land in the merchant’s bank account. Along the way, however, several fees are taken out of the transaction. Among these fees are interchange fees.

Interchange fees are set fees that banks charge for completing the credit card transaction. These fees are typically assessed as a percentage of the transaction amount, with the average fee being 2%. Therefore, if you purchase an item for $10 at a store, $0.20 of that transaction is paid to the bank in the form of an interchange fee.

Effects on Pricing

Although a $0.20 fee for a $10 purchase may not sound like a whole lot, these interchange fees really add up for merchants. This is particularly true with smaller “mom and pop” establishments that already have very small profit margins. If they purchase an item for $8 and sell it for $10, for example, the $0.20 interchange fee leaves them with only $1.80, but much of this goes toward paying employees and otherwise keeping the establishment running. Therefore, many smaller businesses are claiming that interchange fees – which continue to go up – are effectively running them out of business.

For smaller stores dealing with interchange fees, they are faced with a conundrum: they can choose to stop accepting credit cards, but they may cause them to lose a great deal of business, or they can simply accept the credit card fees. In an effort to try to break even, many of these merchants choose to raise their prices to compensate for the interchange fees. Of course, if they raise them too much, they will no longer be competitive and business can suffer.

Rewards credit cards pose an even greater problem for some businesses because the costs of providing cardholders with these rewards is often passed onto the merchant. American Express is notorious for having hire interchange rates because of its rewards program, which is precisely why some businesses choose not to accept American Express credit cards.


About the Author: Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for www.reliacredit.com . For more info and to order your credit report with FREE credit score please visit www.reliacredit.com

Selecting the Right Credit Card For You

If you are like most people, your mailbox is overflowing each week with credit card applications. It is no secret that credit card companies are actively seeking new credit cardholder and, as a result, many are offering some pretty good deals to those looking for a new credit card. Nonetheless, that doesn’t mean all of the credit card offers are best for you. Therefore, you need to take a few things under consideration in order to make certain the credit card you apply for is the right one for you.

Take a Look at Your Financial Situation

Your current financial situation is one factor you should consider when trying to decide on the right credit card. If you have a tendency to carry a balance from month to month, for example, you should look for a credit card with a low interest rate. This way, you will pay as little as possible in finance charges each month.

Choose the Right Rewards Card

If you do pay your credit card in full each month, you should apply for a rewards credit card. With a rewards credit card, you will be able to earn points or other benefits every time you make a purchase with your card. These credit cards tend to have a higher interest rate when compared to non-reward credit cards, but that won’t be an issue if you continue to pay the credit card in full each month.

Of course, you also need to consider the type of rewards credit card you should apply for. By considering your lifestyle and examining your spending habits, you can choose the credit card that will provide you with the most rewards possible. If you tend to spend a lot of money at restaurants, for example, you should choose a rewards credit card that provides you with a greater return on these purchases and rewards you with gift certificates to your favorite restaurants.

Help Build Your Credit

If you have poor credit, you might want to consider applying for a pre-paid credit card. With a pre-paid credit card, you send money to the card ahead of time and the amount of money you send to the card becomes your available spending limit. These cards often have fees associated with them, however, so be certain to shop around in order to find the one with the lowest fees. In addition, make certain the card reports cardholder activity to at least one of the three major credit reporting bureaus. Otherwise, using the card won’t help you rebuild your credit. If the card activity is reported, on the other hand, responsible use of the card can help you rebuild your credit rather quickly.

Although many credit card offers may contain attractive introductory offers, you should take time to consider your options before you actually complete an application. In this way, you can find the credit card that is best suited to your lifestyle and that will help you keep your finances properly under control.

About the Author: Shannon Kietzman is a well known author and trusted resource. Shannon regularly writes for www.reliacredit.com . For more info and to order your credit report with FREE credit score please visit www.reliacredit.com

Tips for Getting the Most from Your Rewards Credit Card

Are you thinking about getting a reward credit card? If so, you are not alone. A growing number of people are deciding to take advantage of the perks that rewards cards provide. When used properly, rewards credit cards can put some extra money in your pocket. Unfortunately, many people don’t know how to take full advantage of their rewards credit cards and are actually losing more money in the process. By following these few simple tips, however, you can manage to get the credit card companies to pay you for using their card.

Tip #1: Pay the Balance in Full Each Month

This first tip is probably the most difficult one for many people to follow. A number of people have grown to depend upon their credit cards and are accustomed to carrying a balance from month to month. If your current financial situation has you in a crunch and you have to carry a balance, don’t carry one on your reward credit card.

Reward credit cards generally have a higher interest rate than credit cards without any frills. Although you may be getting a 1% cash back rebate with the purchases you make with your credit card, you may be paying 5-10% more in interest. As a result, you will actually be losing more than you gain when you use your reward credit card. If you can’t pay off all of your expenditures each month, you should only charge what you can afford to pay on your rewards credit card and place the remaining charges on a credit card with a lower interest rate.

Tip #2: Know How to Make the Most Money with Your Card

If you have more than one reward credit card, make certain you know how you can earn the most money with each one. For example, some reward credit cards pay a higher percentage of return on gasoline purchases while others pay more when you purchase groceries or travel-related items. Know the specialty area of your credit card so you use the one that will pay you the most when you make your purchases.

Tip #3: Take Advantage of Special Program Offers

Some reward credit cards specialize in offering “no hassles,” but most of these types of cards do require paying special attention to specific guidelines. For example, you might have to sign up in order to participate in some cash back programs. With some cards, you might have to sign up every three months in order to be eligible for a higher percentage rebate. If you don’t sign up, you may still receive a smaller cash back award but you won’t get as much from your credit card as you could be getting.

Tip #4: Spend Your Points Wisely

Depending upon the reward credit card, you may have the option to spend your points in a variety of different ways. For example, you might be able to get cash back with your credit card points or you might be able to trade in your points for gift certificates or other types of rewards. When you trade in the points for something other than cash, you often get a greater value for your points. For example, 1000 points may be enough to help you earn $10 but those same points may be traded in for a $20 gift certificate to a restaurant. If you enjoy eating at one of the available restaurants, trading in your points for a gift certificate will help you stretch your points further.

Tip #5: Pay Your Monthly Bills with Your Credit Card

Look over your monthly bills and see if you have the option to pay them with your credit card. By paying your regular monthly bills, such as your utilities, cable or satellite and telephone, you can make some extra cash with your reward credit card. Since you already have planned a budget that will allow you to pay these bills, you should have no problem paying off the balance at the end of each month. Paying off your utilities with your reward credit card is almost like getting free cash!

For more info and to order your credit report with FREE credit score please visit http://www.reliacredit.com/

Choosing a Credit Card

Shopping around for a credit card can save you money on interest and fees. You’ll want to find one with features that match your needs.

This information can help you

• Understand the features of credit cards
• Compare credit card features and costs
• Know your rights when using your credit card
• File a complaint if you have a problem with your credit card

For more info and to order your credit report with FREE credit score please visit www.reliacredit.com