A business credit card can be a great way to take control of you business and ensure your business stays financially secure while still moving forward and growing. The trick is knowing how to use a business card to help make your business a success rather than a failure.
Consolidating Debt
Once of the great aspects of business credit cards is that you can keep all of your business expenditures on just one card. This makes it easier to keep track of what you have spent on your business when it comes to paying taxes. In addition, receiving a monthly bill helps you see just how much money you are spending on your business each month. This ability to monitor expenditures makes it simpler for you to make modifications as necessary. In addition, most business credit cards provide end of the year summaries that make it much easier for you to analyze your annual expenses.
Many business credit cards also provide special introductory offers with low APRs. Some even waive balance transfer fees, making it possible for you to transfer all of you business expenses from other credit cards on to one card. The lower APR can save you money a great deal of money in the long run, particularly if you are unable to pay the bill in full at the end of each billing cycle.
Investing in the Future
A business credit card provides you with a revolving line of credit that makes it easier for you to expand your business whenever necessary. Many business owners, particularly those that are just starting out, need to have money available to them quickly. After all, the only way to grow a business is to invest in it. A business credit card allows you to bypass long loan application processes, thereby making it possible for you to make investments quickly and keep the momentum rolling in the growth of your business.
Look Professional
With business credit cards, you can often get your company logo in addition to its name on the card. There is no doubt this makes your business look more professional. A business credit card is a sign that you are an established, serious business. In addition, just using a business credit card is a great way of marketing your business. As cashiers see your business logo and name, word slowly spreads about your business. It's one of the easiest marketing strategies you can utilize!
Perks of Business Credit Cards
Many business credit cards provide extra perks that are nice to have as a business owner. Take the time to compare business credit cards to discover what each has to offer and whether or not the benefits are helpful for you and your business. For example, some provide special travel benefits to business cardholders. But, if you do not need to travel frequently for your business, this benefit may not be too attractive. On the other hand, some business credit cards provide discounts at certain office supply stores. If you frequently purchase office supplies for you business, this benefit could potentially save you a great deal of money. Of course, be sure the business credit card you get provides discounts to a store you actually use. Otherwise, you are once again failing to take full advantage of your business credit card.
If you take the time to compare business credit cards, you are guaranteed to find one that offers benefits or rewards programs that will be beneficial to you and to your business. Make sure you weigh all of the benefits and stipulations, including APRs, annual fees, rewards programs, and other perks before deciding on which business credit card is best for you.
Sunday, June 30, 2013
Factors That Trigger Credit Card Rate Hikes
Are credit card companies trying to scam you? On the one hand, they provide a valuable service that gives you the added convenience of being able to purchase items and services you need and sometimes don't need and to pay them off in a manner that best suits you.
On the other hand, some credit card issuers are trying to scam you and they do everything in their power - legal or otherwise to do it. Legal or not, many of the practices they follow are clearly unethical and unless you are a contract lawyer you couldn't determine how they planned on scamming you anyway because they hide everything in the countless pages of fine print that comes with every cardholder agreement.
According to Harvard Law Professor Elizabeth Warren, the credit card companies are misleading consumers and making up their own rules. "These guys have figured out the best way to compete is to put a smiley face in your commercials, a low introductory rate, and hire a team of MBAs to lay traps in the fine print."
The problem is that the industry is operating without fear of penalty. There's no regulator or customer who can bring this industry to task.
Deadbeat or Revolver
In the credit card industry there are two types of customers - the deadbeat and the revolver. Don't take this the wrong way but hopefully you're a deadbeat because in the lingo of the industry a deadbeat is someone who uses their credit cards the way they are suppose to.
As in they pay-off their balances each month and therefore incur no interest charges. No profit in that scenario and thus, if you pay-off your balances each month (about one-third of Americans do) then you should be proud to be called a deadbeat because you are using your credit cards wisely.
On the other hand, the majority of Americans are called "revolvers". A revolver is someone who carries over a balance and is considered to be "the sweet spot" of the banking industry. This "sweet spot" continues to expand as the average credit card debt among American households has grown to about $8,000 -- which is more than double what it was just ten years ago. This debt has helped generate record profits for the credit card industry in 2004, an estimated $30 billion before taxes.
The 0% Interest Offer
The game today is the "0% interest for 6 months" offer. Once again, this can be a legitimate and great deal if you know how to play the game ("deadbeat") but if you don't ("revolver") it will end up costing you more money in the long run because after the initial 6 months the rate will usually jump up to a much higher rate than the normal purchase rate.
Rate Hike Triggers
The industry provides many reasons to justify rate hikes and in all fairness, some are actually valid. However, many are not and are just flat-out deceptive. One Banking Association spokesman said that, "Because the credit card business is unsecured lending, the risks associated with the business must be offset."
Industry critics say that an ever growing share of the industry's revenues come from deceptive tactics. One example is how the "default" terms are spelled out in the fine print of the cardholder agreements. The terms and conditions can be changed at any time, for any reason with only a 15 day notice.
Here are just some of things that can trigger late fees, penalties or rate hikes.
Late Payments
If you don't pay your bill on time, the company seems quite justified in taking away your good rate. After all, you've broken the rules of your contract. The problem lies in the fact that penalty fees and rates are sometimes triggered by a single lapse or a payment that arrives just a few days, even a few hours late or a charge that exceeds the credit line by a few dollars or a loan from another creditor which renders the cardholder "overextended" as defined by the three all-powerful credit bureaus - Experian, Equifax and TransUnion.
In addition, the industry is raising interest rates, adding new fees and generating payment due dates on holidays and Sundays with their only motive being of tripping you up and hoping it will result in you making a payment late. The industry has become a very anti-consumer marketplace.
Spending on Other Cards
If you think that one card issuer doesn't know with whom and how much you spend on other cards then think again. As a result, if you exceed your credit limit or make a late payment on another card it can trigger what's called a "universal default clause" and result in higher rates on other cards - cards that you may have had for years and never had a late payment.
Defaulting on Non Credit Card Bills
Defaulting on any bill (utilities, cell phone, mortgage, etc) can trigger higher interest rates on your credit cards. Every bill you have is tracked by the 3 primary credit bureaus and with the emergence of technology your information is readily available to any card issuer. So if you default or pay late on anything, they'll spot it and it could result in higher rates on some or all of your credit cards.
Some experts say the profitability of credit cards began twenty-five years ago when the banking industry successfully eliminated a critical restriction: the limit on the interest rate a lender can charge a borrower. Deregulation, coupled with a revolution in technology that enables the almost real-time tracking of personal financial information and the emergence of nationwide banking, has facilitated the widening availability of credit cards across the economic spectrum. But for some, the cost of credit is often far greater than it appears.
If your rate is suddenly increased, the first thing you should do is cancel the card and move the balance somewhere else. If you can't do that for whatever reason, then contact your local consumer protection agency and if all else fails you may need to contact a lawyer.
This article may be reproduced only in its entirety.
On the other hand, some credit card issuers are trying to scam you and they do everything in their power - legal or otherwise to do it. Legal or not, many of the practices they follow are clearly unethical and unless you are a contract lawyer you couldn't determine how they planned on scamming you anyway because they hide everything in the countless pages of fine print that comes with every cardholder agreement.
According to Harvard Law Professor Elizabeth Warren, the credit card companies are misleading consumers and making up their own rules. "These guys have figured out the best way to compete is to put a smiley face in your commercials, a low introductory rate, and hire a team of MBAs to lay traps in the fine print."
The problem is that the industry is operating without fear of penalty. There's no regulator or customer who can bring this industry to task.
Deadbeat or Revolver
In the credit card industry there are two types of customers - the deadbeat and the revolver. Don't take this the wrong way but hopefully you're a deadbeat because in the lingo of the industry a deadbeat is someone who uses their credit cards the way they are suppose to.
As in they pay-off their balances each month and therefore incur no interest charges. No profit in that scenario and thus, if you pay-off your balances each month (about one-third of Americans do) then you should be proud to be called a deadbeat because you are using your credit cards wisely.
On the other hand, the majority of Americans are called "revolvers". A revolver is someone who carries over a balance and is considered to be "the sweet spot" of the banking industry. This "sweet spot" continues to expand as the average credit card debt among American households has grown to about $8,000 -- which is more than double what it was just ten years ago. This debt has helped generate record profits for the credit card industry in 2004, an estimated $30 billion before taxes.
The 0% Interest Offer
The game today is the "0% interest for 6 months" offer. Once again, this can be a legitimate and great deal if you know how to play the game ("deadbeat") but if you don't ("revolver") it will end up costing you more money in the long run because after the initial 6 months the rate will usually jump up to a much higher rate than the normal purchase rate.
Rate Hike Triggers
The industry provides many reasons to justify rate hikes and in all fairness, some are actually valid. However, many are not and are just flat-out deceptive. One Banking Association spokesman said that, "Because the credit card business is unsecured lending, the risks associated with the business must be offset."
Industry critics say that an ever growing share of the industry's revenues come from deceptive tactics. One example is how the "default" terms are spelled out in the fine print of the cardholder agreements. The terms and conditions can be changed at any time, for any reason with only a 15 day notice.
Here are just some of things that can trigger late fees, penalties or rate hikes.
Late Payments
If you don't pay your bill on time, the company seems quite justified in taking away your good rate. After all, you've broken the rules of your contract. The problem lies in the fact that penalty fees and rates are sometimes triggered by a single lapse or a payment that arrives just a few days, even a few hours late or a charge that exceeds the credit line by a few dollars or a loan from another creditor which renders the cardholder "overextended" as defined by the three all-powerful credit bureaus - Experian, Equifax and TransUnion.
In addition, the industry is raising interest rates, adding new fees and generating payment due dates on holidays and Sundays with their only motive being of tripping you up and hoping it will result in you making a payment late. The industry has become a very anti-consumer marketplace.
Spending on Other Cards
If you think that one card issuer doesn't know with whom and how much you spend on other cards then think again. As a result, if you exceed your credit limit or make a late payment on another card it can trigger what's called a "universal default clause" and result in higher rates on other cards - cards that you may have had for years and never had a late payment.
Defaulting on Non Credit Card Bills
Defaulting on any bill (utilities, cell phone, mortgage, etc) can trigger higher interest rates on your credit cards. Every bill you have is tracked by the 3 primary credit bureaus and with the emergence of technology your information is readily available to any card issuer. So if you default or pay late on anything, they'll spot it and it could result in higher rates on some or all of your credit cards.
Some experts say the profitability of credit cards began twenty-five years ago when the banking industry successfully eliminated a critical restriction: the limit on the interest rate a lender can charge a borrower. Deregulation, coupled with a revolution in technology that enables the almost real-time tracking of personal financial information and the emergence of nationwide banking, has facilitated the widening availability of credit cards across the economic spectrum. But for some, the cost of credit is often far greater than it appears.
If your rate is suddenly increased, the first thing you should do is cancel the card and move the balance somewhere else. If you can't do that for whatever reason, then contact your local consumer protection agency and if all else fails you may need to contact a lawyer.
This article may be reproduced only in its entirety.
Getting A Run For Your Money: How Do You Consolidate Credit Card Debt
Spending is such a hard habit to break, especially when people use their credit cards. Once they get addicted, they continuously endure the agony of spending in spite of imminent problems that tag behind.
And when things eventually get out of hand, most people will soon realize that they are already stuck with a mountain load of credit card debts. And mornings after mornings, they will wake up each day with worries in their head about how they can repay all of those instant splurges.
There's one way to get out of credit card debts-consolidation. Here's a list of ways how to do it:
1. Make a balance transfer.
One way of consolidating a credit card debt is through a balance transfer. In this way, the person who has a huge outstanding balance on his or her credit cards will get another credit card with a lower interest rate. Once approved, they should immediately get a cash advance and use it to pay off their standing balance on the other credit card. In that way, they consolidate all of their payables into one credit card. Plus, they get to have only one rate to worry.
2. Home equity loans can do the job.
This is a very workable strategy provided that it will be used properly.
Getting a home equity loan is probably one of the easiest things to do. Best of all, home equity loans can offer tax deductions for the interest rate of the loan.
However, there is a drawback. The debtor's house will serve as the collateral. But nevertheless, it still one good way of consolidating credit card debts. The debtor should only keep in mind that the money from the loan should only be used in paying credit card debts. If used on other things, it will only worsen the problem.
3. Make use of retirement funds.
There are instances wherein debtors can make use of their retirement funds in order to consolidate credit card debts. But this should only be made if there are no other options available. This is because this type of consolidating credit card debts can be very tricky.
Loans on retirement funds are not actually tax deductibles. However, the problem sets in when the fails to pay back the loan within five years or when he or she will resign from work.
Indeed, there are no nippy fixes when consolidating credit card debts. The bottom line is that, it is better if the person will stay out of debt so as not to worry on consolidation matters.
And when things eventually get out of hand, most people will soon realize that they are already stuck with a mountain load of credit card debts. And mornings after mornings, they will wake up each day with worries in their head about how they can repay all of those instant splurges.
There's one way to get out of credit card debts-consolidation. Here's a list of ways how to do it:
1. Make a balance transfer.
One way of consolidating a credit card debt is through a balance transfer. In this way, the person who has a huge outstanding balance on his or her credit cards will get another credit card with a lower interest rate. Once approved, they should immediately get a cash advance and use it to pay off their standing balance on the other credit card. In that way, they consolidate all of their payables into one credit card. Plus, they get to have only one rate to worry.
2. Home equity loans can do the job.
This is a very workable strategy provided that it will be used properly.
Getting a home equity loan is probably one of the easiest things to do. Best of all, home equity loans can offer tax deductions for the interest rate of the loan.
However, there is a drawback. The debtor's house will serve as the collateral. But nevertheless, it still one good way of consolidating credit card debts. The debtor should only keep in mind that the money from the loan should only be used in paying credit card debts. If used on other things, it will only worsen the problem.
3. Make use of retirement funds.
There are instances wherein debtors can make use of their retirement funds in order to consolidate credit card debts. But this should only be made if there are no other options available. This is because this type of consolidating credit card debts can be very tricky.
Loans on retirement funds are not actually tax deductibles. However, the problem sets in when the fails to pay back the loan within five years or when he or she will resign from work.
Indeed, there are no nippy fixes when consolidating credit card debts. The bottom line is that, it is better if the person will stay out of debt so as not to worry on consolidation matters.
Saturday, June 29, 2013
Airline Credit Card - Tips for Getting the Most Miles
Travel is one of the most popular ways to spend your down time. With travel agencies online and easier methods of booking flights and hotel rooms, travel is the choice for weekends and vacations of all sorts. And airline credit cards make travel available to all, whether you have a travel budget or not. Here are some tips to getting the most out of your airline credit card.
What Is an Airline Credit Card?
When you apply for a credit card online or at your banking institution, you have the option in many cases of applying for an airline card. These cards work just like rewards cards do in that they offer you something back for every dollar you spend. Most airline cards offer you one mile in the sky for each dollar you spend.
This means that if you spend five hundred dollars on your credit card each month, you could earn five hundred airline miles with that particular airline. This could come in handy when traveling with your family or on business. Some airline credit cards offer different ratios of rewards so be sure that you read the fine print to find out how much you have to spend to get the miles you need.
Restrictions
Many airline credit cards come with restrictions on how you can use your miles. For example, you may need to acquire a certain number of miles before you can redeem them for an actual plane ticket. Other airline cards make you use your miles only on certain days or during certain times of the year. It is vital that you check out the contract for your credit card to be sure what these restrictions are. Another airline card might actually offer you more miles for shopping with specific merchants that the financial institution partners with for this purpose. Check the rewards program details for information on promotions of this kind.
Tricks to Getting the Most Miles
Many airline cards will give you bonus miles for using the card at specific merchants, so the easiest way to earn more miles quicker is to do your shopping with these select merchants. Another way to earn more miles is by using your airline card for your everyday shopping, such as grocery shopping, pharmacy needs, or even online bill paying. Be sure that the financial institution that issued your card rewards miles for the ways you want to use your card.
Check Out the Airline
Overall, airline credit cards are a wonderful way to earn a free vacation for you or for your family. However, in these unstable times, be sure that you check out the financial stability of the company you want to earn miles with. Remember that if you earn miles with a company that goes bankrupt, you may be able to transfer your miles and you may not. If you are able to transfer them, it could take months for the transfer to go through. So check out your airline as well as your airline card.
What Is an Airline Credit Card?
When you apply for a credit card online or at your banking institution, you have the option in many cases of applying for an airline card. These cards work just like rewards cards do in that they offer you something back for every dollar you spend. Most airline cards offer you one mile in the sky for each dollar you spend.
This means that if you spend five hundred dollars on your credit card each month, you could earn five hundred airline miles with that particular airline. This could come in handy when traveling with your family or on business. Some airline credit cards offer different ratios of rewards so be sure that you read the fine print to find out how much you have to spend to get the miles you need.
Restrictions
Many airline credit cards come with restrictions on how you can use your miles. For example, you may need to acquire a certain number of miles before you can redeem them for an actual plane ticket. Other airline cards make you use your miles only on certain days or during certain times of the year. It is vital that you check out the contract for your credit card to be sure what these restrictions are. Another airline card might actually offer you more miles for shopping with specific merchants that the financial institution partners with for this purpose. Check the rewards program details for information on promotions of this kind.
Tricks to Getting the Most Miles
Many airline cards will give you bonus miles for using the card at specific merchants, so the easiest way to earn more miles quicker is to do your shopping with these select merchants. Another way to earn more miles is by using your airline card for your everyday shopping, such as grocery shopping, pharmacy needs, or even online bill paying. Be sure that the financial institution that issued your card rewards miles for the ways you want to use your card.
Check Out the Airline
Overall, airline credit cards are a wonderful way to earn a free vacation for you or for your family. However, in these unstable times, be sure that you check out the financial stability of the company you want to earn miles with. Remember that if you earn miles with a company that goes bankrupt, you may be able to transfer your miles and you may not. If you are able to transfer them, it could take months for the transfer to go through. So check out your airline as well as your airline card.
Balance Transfer Credit Card - Debt Consolidation
Balance transfer credit cards can provide an excellent option for debt consolidation. Many Americans are currently in debt and struggling for a way out. Some choose to use a home equity loan to help get themselves out of debt, but not everyone has a home with built up equity to use for this purpose. In addition, putting your home up as collateral for debt consolidation can be a bit nerve-wracking and many banks enforce annual maintenance fees and monetary penalties if you try to close the equity line before a specified period of time.
Rising Interest Rates
Anyone that has been a credit card holder for some time or who pays attention to the financial marketplace knows that credit card rates on many cards have been on the rise. Often, credit card companies are more than happy to increase interest rates when the prime rate is raised, but they are not so quick to bring the rates down when the prime rate decreases. By consolidating your debt with a balance transfer credit card, you can remove your debt from your high interest cards and place it on your card with a lower interest rate. The best balance transfer credit cards offer low introductory rates or low fixed rates on balance transfers, making them a great option for debt consolidation.
What to Look For
When looking for a balance transfer card for debt consolidation, you generally want to find the card with the lowest long-term rate. More than likely, you will be consolidating a debt that you will be unable to pay in a short period of time. If this is the case, your low interest introductory period may be over long before you are done paying off the debt.
You also need to be cautious about fees when looking to consolidate debt with a balance transfer credit card. Many credit cards charge a fee for transferring balances from another card onto theirs. The best balance transfer credit cards will not charge an additional fee. In addition, some balance transfer credit cards require transferred balances to be requested at the time of application for the card in order to be eligible for the special introductory offer. While this may be fine for some people, you might want to have the flexibility to transfer balances. In this case, you will want to select a card that allows you to transfer balances any time throughout the introductory period.
For the very best balance transfer credit cards, you will want to find one that maintains the low APR throughout the life of the balance you have transferred. In other words, a balance you transfer on a card may have a 0.00% APR for the first six months, but then rocket to 19.99% when the period is over. On the best balance transfer credit cards, however, the low introductory offer remains in place until you pay off the entire amount you have transferred.
Self-Discipline
Obviously, a balance transfer credit card cannot do all of the work for you. While you can consolidate all of your bills onto just one card, you will need to be disciplined enough to pay the balance off. If your introductory period expires after so many months, you should create a budgetary plan that will have the balance paid off by the time the period is over. You might need to cut out some of the extras, such as the cup of fancy coffee you grab every morning, to help create a little extra cash flow. It will be well worth it when you find yourself out of debt. In addition, the money you are saving in finance charges should be paid toward your credit card debt
Rising Interest Rates
Anyone that has been a credit card holder for some time or who pays attention to the financial marketplace knows that credit card rates on many cards have been on the rise. Often, credit card companies are more than happy to increase interest rates when the prime rate is raised, but they are not so quick to bring the rates down when the prime rate decreases. By consolidating your debt with a balance transfer credit card, you can remove your debt from your high interest cards and place it on your card with a lower interest rate. The best balance transfer credit cards offer low introductory rates or low fixed rates on balance transfers, making them a great option for debt consolidation.
What to Look For
When looking for a balance transfer card for debt consolidation, you generally want to find the card with the lowest long-term rate. More than likely, you will be consolidating a debt that you will be unable to pay in a short period of time. If this is the case, your low interest introductory period may be over long before you are done paying off the debt.
You also need to be cautious about fees when looking to consolidate debt with a balance transfer credit card. Many credit cards charge a fee for transferring balances from another card onto theirs. The best balance transfer credit cards will not charge an additional fee. In addition, some balance transfer credit cards require transferred balances to be requested at the time of application for the card in order to be eligible for the special introductory offer. While this may be fine for some people, you might want to have the flexibility to transfer balances. In this case, you will want to select a card that allows you to transfer balances any time throughout the introductory period.
For the very best balance transfer credit cards, you will want to find one that maintains the low APR throughout the life of the balance you have transferred. In other words, a balance you transfer on a card may have a 0.00% APR for the first six months, but then rocket to 19.99% when the period is over. On the best balance transfer credit cards, however, the low introductory offer remains in place until you pay off the entire amount you have transferred.
Self-Discipline
Obviously, a balance transfer credit card cannot do all of the work for you. While you can consolidate all of your bills onto just one card, you will need to be disciplined enough to pay the balance off. If your introductory period expires after so many months, you should create a budgetary plan that will have the balance paid off by the time the period is over. You might need to cut out some of the extras, such as the cup of fancy coffee you grab every morning, to help create a little extra cash flow. It will be well worth it when you find yourself out of debt. In addition, the money you are saving in finance charges should be paid toward your credit card debt
Thursday, June 6, 2013
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