Pre-Approved Credit Cards – Advantage Or Evil?

Every one who has a mailbox is used to receiving tons of letters from banks that promise preapproval for fancy credit cards. People are sick of them, they throw them away and send them back to the banks, but few of them know how dangerous these letters may be. Learn how they can damage your credit and assets, decide if preapprovals are good or bad for your life.

In the century of plastic money and 'buy-before-you-earn' principle of living banks and card companies fight to the bitter end to get hold of another bite of consumers' loyalty. But at the same time they won't lend their money as simply as it may seem. Generally, the bank accepts a list of potential credit card applicants. After a bit of sorting, the bank sends pre-approval letters to those who are likely to apply.
In practice, if you make a credit card application for the pre-approved offer, the bank makes another inquiry on your credit which can sometimes result unfavorably. But this is not the only reason why one should feel dubious about pre-approvals. Let's consider the matter to get the priorities right.
1. There are numerous preapproved credit card applications to be found in your mailbox daily.
You can look through many credit card offers by different banks, it enables you to watch the trends in the credit card market and makes it easier to find a card for your needs. On the other hand, you can get confused in the masses of paper, overlook the important correspondence or apply for too many credit cards, being unable to resist the temptation.

2. You receive pre-approvals in the form of common letters, they are delivered right into you mailbox.
It is easy to read the preapprovals and compare the terms they offer, but it is also risky to receive them, as some people can get access to your mailbox and apply for a credit card using your identity (in most letters you only have to put your signature, other blanks being filled out already). In this case the card can be delivered to the address one indicates and you will receive only statements.
Besides, you can be careless enough to throw these letters away, without tearing them to pieces, thus they can be found by criminals and used as described above.

3. All the letters say you were pre-approved for credit cards, so you don't have to worry about denials or credit check.
In cases, when the letter says you were pre-approved and contains a card, you were really approved by the bank and you can use the card (though the terms implied can be not very advantageous). In other cases, when you have to fill out an application, there is no guarantee that you will be issued the card. To tell you more, there is a possibility of your credit score being damaged. Before sending a pre-approval to you, the bank get a list of people to whom they can send letters. This is a soft inquiry, and you credit score is not influenced. As you fill out an application (for which you are not yet approved, actually), you credit score is checked for a second time, and this is a hard check, as it is made on your request this time. If you happen to be disapproved, your credit score will get lower.
The above one is the most serious danger a pre-approved letter can cause.
There are several rules a wise consumer should stick to. Do not be sure you are universally approved, if you receive pre-approved credit card applications. They are sent to those with no credit history even. Know your credit history, before application. Do not apply for a card by an unknown bank; do not apply for too many cards. Destroy all the letters thoroughly instead of simply throwing them away. Opt out from getting pre-approvals, if you do not need them.
And, finally, go and search for a good credit card on your own, it will bring better results that looking through tons of colorful paper.

Credit Card Holders Benefit Through Congress' Pressure

Owning a credit card is fast becoming a better deal for consumers as the credit card industry (banks and other credit card issuers) starts changing their practices and implementing what can only be construed as more lenient practices, under the pressure exerted by Congress. This article offers the whole story.

In economic figures released by the Commerce Department at the end of May 2007, the U.S. first-quarter gross domestic product (GDP) grew by 0.6 percent. This was the weakest quarterly expansion since the fourth quarter of 2002 and was well under the 0.8 percent growth rate projected by Wall Street economists.

Housing continued to be a drag on the economy and was though likely to remain so in the coming months. However, there were positive signs as well, which could signal a healthier rate of growth towards the end of the year. One of these good signs was personal consumption spending — which powers two-thirds of the economy — increased by about 4.4 percent versus the 3.8 percent figure in April.

In a related report, the Labor Department reported on June 6 that U.S. worker productivity had also increased at a much slower rate than originally estimated. This report raised fears about possible inflationary pressures as labor costs go up.

Most of the performance figures had already been anticipated.

What came as a surprise was that borrowing by U.S. households had expanded by less than half ($2.6 billion) of forecast ($6 billion) as credit card use actually fell for the first time in 13 months. This increase in consumer credit was the smallest monthly increment in seven months, since October.

It seems consumers are pulling back from taking on more debt. Revolving credit, which includes credit cards, declined $403 million in April, the first monthly decline in the 13 months since March 2006. Consumers may be cautious about contracting more debt while housing remains in a slump and economic growth has been so weak. The decline in revolving credit has been interpreted as a sign that consumers are paying off more of their credit card debt.

In the middle of these mixed signals from the various sectors of the economy, legislators have expressed their dismay over practices being followed in the credit card industry. The House Financial Services subcommittee hearings last Thursday, June 7, called for stronger action by the Federal Reserve to control what lawmakers called the deceptive and predatory practices of credit card companies. Lawmakers subjected executives of major credit card issuing banks to intense questioning during the hearing.

Saying that the average American household carries $13,000 in credit card debt and overall credit card debt runs in the hundreds of billions of dollars, the panel chairwoman Rep. Carolyn Maloney, D-N.Y., was reported to have expressed fears “that we will see a perfect storm in consumer credit as these pressures converge on Americans, and that the ripple effect will be felt throughout our whole economy.” Maloney cited the success of credit cards in providing for the credit needs of the American consumer but also emphasized that with great success came “great responsibility.”

Lawmakers think the Fed needs to do more to protect credit card users, and propose to give other bank regulators the authority to curb industry abuses, including policies that confuse consumers and push them into more debt. The Fed is requiring credit card companies to extend to 45 days the notification period to consumers before they implement any changes in the terms of an account. The present practice is that when banks want to make any changes, for instance, to increase interest rates or to impose a higher penalty rate for missed or late payments, they will give only 15 days notice.

The Fed’s proposed full disclosure requirements would, among other things, allow consumers a longer time to look for another credit card. But legislators feel this is not enough and want regulators to impose an outright ban on abusive practices. They do not want to create new laws, but prefer to see regulators act on the problems.

Legislators are targeting other practices like charging interest on portions of debt that is paid on time during a grace period, and raising interest rates because a customer is late on payments to other creditors (not the credit card issuer) — which is termed “universal default” in the industry. Legislation is being proposed that would make some of these practices illegal.

These are serious concerns being raised by our lawmakers. Other regulators appear to agree with the lawmakers. The Federal Deposit Insurance Corporation chairman is not fully convinced that problems regarding credit card industry practices will be resolved by full disclosure alone. Other federal regulators who were also called to testify expressed support for legislation that would give their offices the authority to curtail practices that are deemed to be deceptive or unfair.

Because of the close scrutiny by Congress, several major banks have started to temper or remove some of their most criticized practices. Banks may need to do more to allay consumer fears, suspicion, and eventually, resentment.

How banks will respond remains to be seen.

Already one of the major credit card issuers, Chase, has begun to articulate its response. The bank has issued a June 12 statement saying that in their view the complex credit card system that exists today will be able to sustain its success if the two principal parties in the relationship — the credit card issuers (banks) and the credit card holders (individual consumers) — acknowledge that theirs is a shared responsibility. The credit card holder must use the card in a responsible manner; the bank must strive to meet the credit card holder’s needs.

Overall, the bank says the credit card has broadened access to credit to all consumers. It insists that average interest rates have gone down from close to 20 percent to only 12 percent approximately, and in many cases issuers no longer charge annual fees.

The bank has defined what responsibility should mean for the credit card holder: pay on time; keep within your credit limit; and maintain your creditworthiness. By following this simple equation, the credit card holder gets an interest-free loan for a certain period when they pay off whole balances every month, fraud and loss protection, and other benefits, plus instant and constant availability of credit.

The bank also delineates what it sees as its responsibility: make sure customers understand the terms of their credit card account; show them how to manage their credit cards; give them tools that help them pay promptly time and stay within their credit limits; spot those in trouble and point to avenues for financial solutions; and evaluate more carefully the credit applicant’s capability to manage debt prior to credit card issuance.

The bank has implemented a set of initiatives to promote greater customer understanding of the terms of their credit card account and to provide tools for managing accounts. This program is channeled mainly through the company’s special website, which it says details everything in clear and simple terms. Some of these initiatives involve:

Putting detailed instructions and calculations that clarify the implications of paying only the minimum amounts instead of paying more on the balance, if not paying it off entirely; Outlining procedures that allow customers in the military to keep their credit card accounts current when deployed overseas; Allowing all customers to choose their preferred due date for payments; Providing instructional materials for students and first-time credit card users to guide them in making prompt payments and keeping within credit limits; Installing a system of communications where customers can sign up for timely alerts sent via phone, e-mail and text messages to remind them of payment due dates; Providing for a system of automatic credit card payments; and, Creating an outreach program to reach those who may be having financial difficulties and to determine what assistance and financial programs can best help them.

Individual credit card holders like you have made your opinions heard, to both the legislators and the credit card issuers. By heeding your opinions, and altering the criticized practices, holding a credit card is becoming even better than before.

Business Credit Cards for Businesses With Good Credit

You will find that the various business credit cards offers can become confusing, especially while you are in the process of doing some comparison shopping for the business credit card that best suits your needs. Platinum, gold, rewards and cash back are some of the nomenclature used to describe a business credit card type. These different names for business credit cards also imply significant differences in the features offered to the business credit card holder. You will notice that among these types, platinum business credit cards stand head and shoulders above the rest.

Platinum business credit cards work best for those business credit card holders who prefer to carry a balance on their account and who have the ability to effectively manage business expenses. Platinum business credit cards are usually only granted to persons with excellent credit histories.

Platinum cards make many exceptional perks available to their cardholders, perks that are not available with regular business credit cards. One of the reasons is that businesses that qualify for platinum business credit cards have high, if not sterling, credit scores.

Some of the advantages that you get from having a platinum business credit card may include: a waived annual fee, higher credit limits, lower interest rates, and more benefits, rewards and savings (fraud protection service, frequent flier miles and cash back programs). The travel-related benefits you get from a platinum business credit card also include travel accident insurance, car rental insurance, lost luggage insurance, and a number of travel and emergency services while you are traveling in another country.

Platinum business credit card users receive generous business-related special discounts from participating merchant accounts, including hotel rooms, office equipment and car rentals. All things being equal, the extent of benefits you get from each participating merchant will vary, as described in their disclosures regarding limitations and restrictions.

The credit card company does not have much control over these terms and conditions that the merchants impose on business credit card holders. They make every effort to negotiate the best possible terms on behalf of its business credit card customers though. This is why it is also important for you to give feedback to the business credit card issuer regarding particular service areas where you, as a business credit card user, would like to see improvements.

Business credit card companies often provide a low-cost program to platinum business credit card customers, knowing that platinum business credit card holders are more willing to charge business expenses as long as they can carry a balance without paying too much in finance charges. Remember, business credit card companies make their profits from those business credit card users that carry balances on their accounts.

They also offer a 12-month introductory period at zero percent APR and zero annual fees. After the introductory period expires, the subsequent APR is usually reasonable. However, the platinum business credit card holder should realize that the APR on transactions is indexed to the highest prime rate within a specific time frame. The business credit card issuer retains the option to choose which rate within that period of time. For this reason, you can be sure that the APRs may approach, but never quite reach, the lowest possible rate within the period.

If you are not a platinum business credit card holder yet, but have been diligently paying your bills every month, credit card companies will most likely offer you a platinum business credit card. This is to encourage you to keep your business with them and to reward you for being a responsible borrower.

Avoiding the Pitfalls of Business Credit Cards

For startup entrepreneurs having an excruciatingly difficult time raising capital for their project, borrowing against business credit cards becomes a very real temptation; and sometimes, it is the only option immediately available. The caveat is that if you do not manage your business credit cards wisely, you may end up failing in the venture that you have long wanted to establish. Without proper management, the debts that one incurs from business credit cards will simply pile up.

Business credit cards undoubtedly are very convenient to use. The moment you get approved for business credit cards, you get a guaranteed credit line that you can use virtually anywhere, anytime you need it. In spite of not having the cash, you can purchase what you need for the business with your business credit card. The convenience that business credit cards provide can also be the pitfall; and to the unwary user, business credit cards can be dangerous.

Knowing that business credit cards can be dangerous does not mean to say that you should not resort to using business credit cards to prop up your business. The key thing in minimizing the danger is to use the business credit card wisely, or to use it within bounds.

You might be too excited about a new business and get carried away about making more money and having a better life. But wait! Have you ever considered your fallback options should things not work out as you expect them to be? Remember that filing for bankruptcy is no longer an attractive option; the bankruptcy laws have been amended recently, and it is more difficult now for debtors to escape creditors in this way.

There is a way to avoid the debt trap. You should keep track of purchases you charge to your business credit card — which you can easily do by logging onto your account at the business credit card issuer’s website. You should then work out your payment plan in advance by estimating your cash flow per month, and using this figure to calculate how much you can afford to pay against your business credit card debt. Pay off the entire business credit card balance as often as you can afford to. If that proves difficult to do, try to pay more than the minimum required payment for each month. This is the only way you can stay ahead of finance charges and the very painful bite of late payment fees and default APRs. Unless you have already arranged to remove the personal guarantee you signed in favor of your business, anything that happens to the business credit card account will have repercussions on your personal credit report.

It is necessary – and quite educational, really – that you do comparison shopping on trends in business credit card rates. You must educate yourself about how you can effectively use the float period on purchases, the fees for cash advances and late payments, over credit limit charges, balance transfer fees, and penalties for late payments. Then, there are also the annual fees: some business credit cards charge annual fees while others do not. There is a lot of information about business credit cards on the huge variety of websites devoted to the subject. Manage your business credit cards well, and they will help you finance your business.

The Rewards You Get from Owning Business Credit Cards

Business credit card holders are also eligible for incentives and rewards similar to those that are available to personal credit card holders. You may find these incentives and rewards offered by business credit cards helpful in a variety of different ways.

Discounts on Business Travel Planning a business trip can be quite time consuming. As part of the service that some business credit card companies offer, they help arrange for your itineraries, bookings, emergency assistance abroad, and free travel accident insurance. The business credit card travel incentives may also include public transport in those countries where you’re traveling on business.

You are also likely to make phone calls from abroad to your business office. Many business credit card issuers have made special arrangements with telephone service providers if these bills are paid with a business credit card. A business owner who requires regular updates through telephone or email will be able to save with this feature. Business credit cards often secure preferential exchange rates to the business traveler. In addition, business travel becomes more pleasurable since your business credit cards can entitle you to seat upgrades on the flights you take and the use of business lounges at the airports while you are waiting for a connection.

Business credit card holders sometimes qualify for frequent miles or discounts on certain flights and at certain hotels. These arrangements make traveling both more convenient and cheaper for holders of business credit cards.

Discounts on Goods and Services When your business makes use of a business credit card, you will enjoy discounts on your purchases of goods and services. The discounts could add up to substantial saving for your business and enable you to use the money for other purposes. You may want to see which discounts you qualify for at individual suppliers when you use your business credit card. Purchase of certain products may result in rebates, thereby returning some of the money spent to the coffers of the business.

Incentives for the Drivers Many business credit cards entitle you to discounts or rebates on gas purchases. As part of their travel incentives, business credit cards also offer discounts on car hire, which yields substantial savings if your employees are required to frequently undertake traveling. Business credit card issuers also arrange for worldwide emergency and travel assistance. If your employees are traveling in a foreign country and an emergency occurs, they know they can count on the assistance of knowledgeable people who have the appropriate contacts for emergency services.

Rewards Programs Issuers of business credit cards have formulated programs that are akin to what they offer to personal credit card holders. As a holder of business credit cards, you will also earn air miles, or other forms of rewards points. Some business credit cards are more generous, giving you four points per dollar spent as opposed to the traditional reward of one point per dollar. If you have company employees making use of your business credit cards, their usage will rapidly increase your rewards point earnings.

With all of these rewards that holders of business credit cards offer, securing business credit cards becomes the best choice for many businesses.

The Convenience of Applying for Business Credit Cards Online

The internet is not only a good place for making comparisons between the various business credit card offers, but it is also a great channel to make your applications. This should make things somewhat easier and a great deal more convenient for you. You simply hop from one website to the next to investigate the different business credit card packages. When you finally find the business credit card which best suits your business, you can apply for that business credit card instantly.

If the prospect of using the Internet to shop and apply for business credit cards does not really appeal to you, there are other methods you can use to evaluate and apply for a card. You could look at the many business credit card offers that arrive in your snail-mailbox, write letters to the issuers requesting brochures or even pay them a visit in person, if that is your preference. But it is only on the Internet where you can immediately find all the information you need, compare all the features offered to your heart’s content and see what the various consumers and experts have to say about the different business credit card packages…all in one place.

Using search engines is really not a hard thing to do! By simply typing the words “business credit card offers” in a search engine’s field, you will receive a whole bunch of business credit card offers that would never have otherwise come to you by snail mail. Should you for example want to narrow down your search to find those business credit cards that cater for people with bad credit, you simply add the word “bad” to the search. In a matter of seconds, you will have the right options displayed on your screen.

Some of the sites are purposely designed with the capability to allow in-depth comparisons between the various business credit cards. These thoughtful sites can tell you everything and anything you need to know about the different business credit cards on the market. They allow you to drill down in order to gather detail information under various business credit card categories, such as rebates and rewards business credit cards, business credit cards for people with a bad credit history, cash back business credit cards, zero APR business credit cards and a whole lot more.

You should not apply for the first business credit card you see online. Only apply after you have checked and compared every business credit card on the market. Once you have identified the appropriate business credit card package for your business, you can complete the online business credit card application. This is secure, quick and easy.

Once you have successfully submitted your online business credit card application, an employee from the business credit card issuer will contact you to discuss both your credit card application and the terms and conditions. As a standard, most issuers will need your signature on the paperwork. If this is the case, you will normally be able to print the credit agreement. If the site does not offer downloadable forms, simply request the issuer to send you these forms to either your email or postal address.

Protect Your Business Credit Cards from Unauthorized Charges

One of the many reasons for obtaining a business credit card is that you want the guaranteed line of credit on standby to help you maintain the cash flow of your business. Bearing that in mind, it would be prudent of you to take measures that will protect your business credit cards from unscrupulous people; otherwise, that line of credit could get abused. You should ensure that your business credit card or the corresponding business credit card number does not fall into the possession of those who will use it, without caring one iota for the financial consequences to your business.

It is not that difficult to ensure that your business credit card is shielded from unauthorized charges. Some simple ways that you can go about protecting your business credit card – and by association your business – are listed below:

· Avoid using your business credit cards on any unsecured websites at all costs. Online purchases undoubtedly are convenient and save time, but your business credit card number and other information can be stolen if you insist on purchasing an item from an unsecured website. When making online purchases with your business credit cards, patronize only those websites with explicit guarantees about their security, those that are operated by reputable businesses, and those whose security claims are verifiable. Look for the little padlock on your computer monitor when you wish to make an online transaction with your business credit card and make sure that the site is https!

· Make it a habit to check your monthly business credit card statement. If you do not have accounting personnel to keep track of your business credit card spending, you should meticulously evaluate your business credit card bills every month before paying them. If you notice any discrepancies, you should immediately report the error to the business credit card company. By doing this, you alert the business credit card issuer who can then trace the transaction and help determine if an error occurred in entering the transaction or if unauthorized charges have been posted to your business credit card.

· When withdrawing money from ATMs, protect your business credit cards and PIN numbers. If your business is in urgent need of cash and you use your business credit card for cash advances, be aware of the people immediately around you. Keep an eye for people who may take mental note of your business credit card number and PIN by looking at which ATM machine buttons you press. Find a way to block anyone’s line of vision when you enter the necessary numbers for the transaction.

It is true that most business credit card companies and banks offer unauthorized charges protection, but remember that the way you use your business credit card is your primary responsibility. Your business and your personal credit ratings are important, so guard you business credit card as if it were a wallet full of cash. You may want to contact your business credit card issuer and ask about how you can protect your card and the methods of resolving issues regarding unauthorized charges on your business credit cards.

Personal Liability on Business Credit Cards

If the business does not meet these criteria, the business credit card issuers will use the credit history of the principal making the business credit card application as their basis for evaluating credit risk.

Do note that most business credit card issuers will not approve your application for a business credit card unless you agree to the personal liability provision. This essentially makes a business credit card the same as a personal credit card from a personal liability point of view. Hence, whenever your business fails to repay the business credit cards, the issuer may invoke the personal liability agreement in order to collect payment from the business credit card principal.

Because of this personal liability provision on your business credit card application, your personal credit reports will also contain a record of your business credit card history. You will therefore damage your personal credit score if you make late payments on your business credit cards. If your business accumulates a big debt, it will inflate your personal debt burden and cause you to appear overextended.

The personal liability agreement, however, is not always cast in concrete. If you can show that you diligently make your regular payments, you should be able to convince the issuer of business credit cards to remove the provision after a few years. It would really be up to the issuers whether they decide to grant you your request or not. Nonetheless, you could always try to negotiate with them. Whatever the case may be, endeavor to have the business establish its own credit history. This will eventually allow you to separate your small business credit card from your personal credit records.

You must be aware that since business credit cards are not intended to be used by consumers, the consumer protections applicable to personal credit card are not necessarily present in business credit cards. When making use of personal credit cards, the law grants you the right to dispute billing errors on your account within the specified period of time. Within this period, the card issuer cannot mark the disputed amount delinquent or cancel the card. This particular right of the consumer is not applicable to the holders of business credit cards.

When you receive ordered merchandise in poor condition, you cannot dispute the charges and in case the vendor refuses to cooperate, request the business credit card company to intervene on your behalf – as they do in the case of personal credit cards. With business credit cards, you are largely on your own.

So, should you carry a small business credit card rather than a personal credit card? The answer is: Yes. Once your business has established its track record, you can separate personal and business finances. That will work well – both for you and your business.

Factors to Consider When Choosing Business Credit Cards

Most credit card companies have designed one or more credit card packages that enable small businesses to keep their personal and business accounts apart. These cards, known as business credit cards, are appealing to many small business owners. However, regardless of what these business credit cards may offer, there could be some pitfalls that you need to be on the lookout for. Carefully shopping for the right business credit card is a must, if you want to avoid being exposed to the negative aspects.

Due to mounting competition in the small business credit card market, there is an interminable barrage of high-powered advertisements, extolling the virtues of the various business credit card issuers’ rewards programs, cash back features, airline miles programs and other benefits, to the point where they are all starting to sound very much the same. The implication for you is that you will need to do your own research in deciding on what is actually and practically the business credit card best suited to your small firm.

As always, the very best starting point is knowing how you will be using the business credit card. Do you plan to pay off all the business credit card charges monthly, or do you expect to maintain an ongoing balance on your account? The answers to these questions shall determine whether you should get a business credit card that has a rewards program or a business credit card that offers a low interest rate. For instance, if you plan to carry a balance forward from month to month, do not choose a business credit card with a rewards program. It will not work for you because any savings you earn via the business credit card rewards program will be offset by the interest charges that are imposed.

You should decide on what types of business credit card rewards will be most beneficial to your business. The rewards programs offered vary from frequent flyer miles to gift certificates to merchandise. Some business credit cards allow you to switch from one rewards feature to another when you redeem the accumulated points. Always make sure that you read the fine print. You may be tempted to choose a business credit card that offers low introductory rates, only to find out at a later stage that the business credit card company raised the rates. Check the applicable APR that will apply after the introductory period expires and compare the future rates with those of other business credit cards. One business credit card, for instance, may guarantee a 7.99% fixed APR after the introductory period expires, while another may impose a 14.99% variable APR.

Another factor that is worth considering is the degree of control and the extent of customer services the business credit card offers. There are business credit card companies that allow you online access to your business credit card account. Among other things, this will enable you to manage your account and download the transaction records for accounting purposes and for your tax reports. Online access allows you to modify or set spending limits on the business credit cards issued to your employees.

If you or your existing business has a good credit standing, you may want to call the business credit card company to negotiate a special arrangement for your business.

Comparing Business Credit Cards

When talking about business credit cards, you probably often hear that it is better to shop around and compare the different business credit card products. Perhaps you have been wondering what comparing business credit cards really entail. The task of comparing business credit cards involves an examination of all the factors and features and not only the offered rate of interest or the nature of rewards.

The reason that there are so many types of business credit cards on the market – even from within the stable of the same business credit card issuer – is that each of these addresses a different set of needs. Your particular business needs will therefore dictate the type of business credit card you should be applying for.

There are a number of established business credit card brands, each with a distinctive package of benefits that may be markedly similar in some ways, yet discernibly different in terms of their features.

Those who do a lot of traveling may be attracted to American express business credit cards. Bear in mind that you must have good credit ratings when applying for this business credit card brand as their standards for business credit card approvals favor only those with good to excellent credit. In exchange, you gain access to a fine range of travel benefits from a company that has catered for the needs of travelers for decades.

The more generally available business credit cards are Visa and MasterCard, because of the fact that these are issued by a plethora of member banks. These banks are seriously competing for your business, so you are likely to benefit from variations in rates and several rewards programs. The other business credit card brands — Discover and Diners — may not have as many banks issuing them, but they do have attractive features for business credit card holders.

In studying the particular needs of your business situation, you probably will want to look at zero APR business credit cards for balance transfers if you owe some money on your existing cards. Almost all the business credit cards offer the zero APR for balances transferred from other business credit cards within a specified introductory period. This can range from 6 months to 13 months. Those who want to save on interest would probably be inclined to those business credit cards that offer longer introductory periods. You should take note of the prevailing APR once the introductory period expires. Some business credit card issuers may impose higher APR than others.

Those who need to lower the effective cost of their purchases, especially for everyday items like gasoline, office supplies, courier expenses and the like, will probably prefer those business credit cards with favorable rewards and cash back rates. There are many business credit cards that offer 3 percent cash back on these purchases, but a few others will give as much as 5 percent. This could add up to substantial savings. Remember to compare your estimated savings from these cash back business credit cards against the annual fees charged by the business credit card issuer: some cash back business credit cards may have higher annual fees than others.

Those who are still trying to establish (or in some cases, re-establish) credit for their business should look for business credit cards that cater to those with bad credit. These offer special terms that enable you to rebuild your credit. Remember to try establishing your credit reports with business credit bureaus, like Dun & Bradstreet.

Compare and Find the Best Deal on Business Credit Cards

The internet search engines are making it increasingly easier to obtain relevant information about financial products such as business credit cards. By opting to compare the different options you have at your disposal online, you are saved from the trouble of physically having to request or even worse, having to fetch the different brochures and leaflets from business credit card issuers.

The internet search engines are making it increasingly easier to obtain relevant information about financial products such as business credit cards. By opting to compare the different options you have at your disposal online, you are saved from the trouble of physically having to request or even worse, having to fetch the different brochures and leaflets from business credit card issuers.

You will come across a number of available websites, each containing a broad selection – some for specifically for small business credit cards and some for corporate business credit cards. A couple of web sites are purely informational, offering reviews about the many brands of business credit cards, and providing the pros and cons of each. There are also sites that allow you to compare up to four business credit cards side by side, making it possible for shoppers to juxtapose the corresponding business credit card features.

Among the features of business credit cards, you should consider comparing the business credit cards’ annual percentage rate (APR). Although it may not be your intention to carry a balance on the business credit card bill from one month to the next, good sense will in all likelihood dictate that you may have to if your business gets into an unexpected cash flow squeeze. It is essential that you look for low or zero percent APR business credit card offers, in case circumstances only allow you to pay partial amounts as opposed to the full balance due on your business credit cards.

Another thing you may want to take into account is the fees related to obtaining a business credit card. At the time you do your comparative shopping, you should make sure that the business credit card companies do not cancel out the rewards and bonuses they offer with their products after you have filed your business credit card application.

In case you still do not find the right business credit cards to match your business needs, you may consider approaching the banks that issue business credit cards. You can call your own local bank, where you keep the deposit accounts and maintain the line of credit for your business, first. Then compare their business credit card offers with the business credit card products of the big national banks. Most banks would be happy to keep you as one of their valued business clients and may offer special rates on business credit cards.

Comparing different types of business credit cards may be tedious and time consuming, but it is time worth spent. You should be able to locate a business credit card that does not only provide substantial savings but also maximum benefits for your business. Business credit cards can help you gain an edge over your competitors: Your business should be more able to take on larger deals, and subsequently expand due to the guaranteed credit line and other financing features of your business credit cards.

Credit Card Debt Negotiators Can Ruin Your Credit Score

Credit card debt negotiators claim that they can help you pay less than you owe. Read the truth about credit debt negotiation scams. Protect your credit history.
There are different reasons why people get into debt. Just all of a sudden you realize that you just can not make your payments. Bills and credit card statements drive you crazy and it seems that you will never get out of this trap yourself. This is when debt negotiators step in.
If you get online you will find a dozen of credit negotiation companies. They promise to help you with your unsecured debts through negotiating with banks.
Some of them claim to be nonprofit organizations that simply work to help those in need. They tell you that they will be able to reduce your debt by 10-50%. All you need to do is to open a credit card debt negotiation account (for a small fee, of course). Then they might suggest you make only partial payments or stop making your payments to the bank and give money to them instead. Because the process of debt negotiation is not a very easy one you will be asked to wait for about six months. They promise that all the negative information will be removed from your credit report afterwards. And, of course, credit negotiation will not have a negative affect on your credit history.
The truth is that those debt negotiation 'experts' are one big scam. First of all, even if the company presents itself as a non profit organization it does not mean that there actions are legitimate. If you follow their advice and stop making payments you will get even higher interest rates and late fees. Your creditors might not like the idea of the debtor making only partial payments. Thus your debt might double or even triple.
The fees for those 'services' will also drain your purse. They usually include a fee for opening an account, a monthly service fee and a final fee. The amount of money you will pay as the final fee usually depends on the percentage of the sum you are to 'save'. Of course, some of their clients understand the trick before they get to the 'final' stage but the scammers still make a decent income.
As for the promise to remove all negative information from your credit history you should remember that there is no legal way to do it! The bank has to report everything to all the three credit bureaus. All the information stays on your credit report for seven years and bankruptcy remains for seven. The only way to remove any information from your credit report is to prove that it is incorrect.
Most of the time credit negotiation firms present there service as an alternative to bankruptcy. However, bankruptcy is a legal way to manage your financial situation. Debt negotiation will have no effect - if you are lucky. If you are not – you will be even more in debt than you have been before. Do not confuse credit negotiation services with credit counseling and debt consolidation planning. The latter simply give you advice and help you to plan your budget.
Credit card deals can be a great financial tool if used wisely. But if you can not make your payments do not fall into the credit debt negotiator's trap. Do not pay for getting your credit history ruined.

Chase Goes After Small Businesses with Business Credit Cards

Like the other players entering this market, their business credit cards too are designed to help small business owners free their personal credit cards from the burden of business related expenses whilst offering them a fresh source of purchasing power.

There are a number of business credit cards in their repertoire. Since many small business owners find rewards and discounts to be attractive features in business credit cards, Chase issues several different versions of these. The more interesting offers include cash back features ranging from 3 to 5 percent on the purchases that small business owners typically make on a day to day basis. Chase business credit cards with premier cash rebate, give 3 percent cash back on purchases of gasoline and office supplies, and those purchases made at restaurants, hardware stores, and home improvement centers; all other purchases give one percent cash back.

The cash rewards business credit cards offer 5 percent cash back on purchases from all merchants. Such a substantial cash back feature will doubtlessly induce greater spend on this business credit card.

They have an interesting flexible rewards platinum business credit card, allowing a choice between four kinds of rewards. The business earns 1 point for every dollar spent on this business credit card and the points accumulated are redeemable in the form of cash back, travel, merchandise or gift certificates, from 2,500 points upwards.

Chase also issued business credit cards in partnership with other companies, including Amazon, Bell South and others. Professionals get some special treatment with their own business credit card product, aptly named the Chase Professional card.

In what could well become quite popular, Chase released a purpose designed business credit card for contractors. These business credit cards are issued under the Visa signature business credit card series, which means that there are no pre-set spending limits enforced.

The contractor business credit cards allows for some elbow room on cash flow by giving 60 days of same-as-cash credit for certain qualified construction purchases. Within the 60 days and at a 0 percent APR, the business will not be required to make payments against qualified construction purchases charged to the business credit card. Bear in mind though, that the purchase must exceed the $1,000 mark.

It is important to note, that those in default on their business credit card payments for due balances, will lose the special privilege. Those balances above the revolving credit amount will be subject to finance charges, which will be included in the minimum payments due.

Contractor business credit card holders get 2 percent cash back on all material and supply purchases and 1 percent on all other purchases. The eligible business credit card purchases will include those made at retail stores or with other contractors recognized by Chase. Business credit card purchases made at warehouse clubs, discount stores, and superstores will not be eligible for the 1 point for every $1 purchase feature.

Understanding the Ins and Outs of nYour Credit Score

As recent as a few years back, the term "Credit Score" was not very commonly used in our society. While there were who understood the term and its purpose, the mass majority, although realizing that there was a system out there that their credit, they did not have a term to stick to it.

Today, however, due to a number of factors such as increase Identity Theft and mass media marketing campaigns there are very few who are not aware of the term Credit Score. The goal of this article is to add understanding on the personal to the recognition of that term.

A Credit Score is a number between 300 and 850 based on a statistical analysis of an individual's credit activity. It is used to represent the credit worthiness of an individual. How likely that the individual will pay his or her debts. A credit score is based on their credit report information which is typically sourced from credit bureaus and credit reference agencies, typically from the three major credit bureaus.

Lending institutions, such as banks, finance companies, mortgage lenders, and credit card companies, use an individual's Credit Score to evaluate the potential risk posed by lending money to that individual. Lenders use Credit Scores to determine who qualifies for a loan, at what interest rate the loan is issued, and what credit limits are determined.

The use of credit scoring prior to granting credit is a trusted system throughout the industry. Credit scoring is not limited to banks, however. Organizations, such as mobile phone companies and government departments employ the same techniques.

While there are many others, such as NextGen, VantageScore and the CE Score, The most widely known score in the United States is FICO, which is most widely used in the mortgage industry. FICO is an acronym for Fair Isaac Corporation, the company that provides the most well-known and most widely used credit scoring system in the United States.

The FICO score is calculated by applying statistical methods, developed by Fair Isaac, to information in one's credit file and is primarily used in the consumer banking and credit industry. FICO scores show how likely it is that a borrower will default. No public information is available to determine what the scores mean in terms of statistics. A separate score, BNI, is used to indicate likelihood of bankruptcy.

As stated, banks and other lending institutions use Credit Scores as factors in their lending decisions. Whether credit is denied or approved, what interest is charged, what income level and asset verification is required is all based on an individual's credit score.

The FICO score actually uses slightly different scoring methods to rate a consumer's suitability for three different types of credit; mortgages, auto loans, and consumer credit. Each reflecting the different credit risks of these various types of lending. It is not unusual for these scores to differ by as much 50 points or more for the same borrower.

There are three major credit reporting agencies in the United States. Although often times inaccurately referred to as "credit bureaus", these agencies; Equifax, Experian and TransUnion, also calculate their own credit scores. These additional scores differ depending on what they are meant to predict, what statistical methods used to determine a score, and what information is used and how it is weighted.

These additional Credit Scoring Systems are numerous and are agency specific. For example, Beacon, Beacon 5.0, Beacon 96, and Pinnacle scores are available only from Equifax. Empirica, Empirica Auto 95, Precision Score, and Precision 03 are available only from TransUnion. And, Fair Isaac Risk Score at Experian.

These various Credit Scores are developed for the different agencies by Fair Isaac, each differs and are periodically updated to reflect current consumer repayment behavior habits. The NextGen Score is a scoring model designed for consumers.

In an effort to make credit scoring more consistent across the board, in 2006 the big three credit reporting agencies introduced Vantage Score. Vantage Score uses a different number range from the FICO score. It ranges from 501 to 990 and also assigns letter grades from A to F to specific ranges of scores.

A consumer's Vantage Score may differ from agency to agency, but the difference would be entirely due to differences in the information reported to the various agencies, not due to differences in scoring systems. Since FICO is still widely used by lenders, the agencies continue to offer FICO scores (or their closest equivalent) as well.

Most credit scores use a multiple-scorecard design. Each version may use individual scorecards, and an individual potential borrower is typically compared with other previous borrowers. In other words, a borrower with one 30-day late payment will be scored against a population with some similar delinquency. A borrower with two 30-day late payments will be scored against a population with like credit faults. The individual is then graded according to which variables indicate a risk within that group.

Nearly all large banks also build and use their own systems for credit scoring purposes, and are often times in conjunction with outside scoring formulas.

The systems used to generate credit scores are subject to federal regulations. The Federal Reserve Board's Regulation B, which implements the Equal Credit Opportunity Act, expressly prohibits a credit scoring system from considering any "prohibited basis" such as race, color, religion, national origin, sex, or marital status. It also stipulates that credit scoring systems must be "empirically derived" and "statistically sound".

In addition, if an adverse action, a denial of a credit application, is taken as a result of the credit score then the specific reasons for the denial must be provided to the individual denied. The statement "credit score not high enough" is insufficient. The reasons for denial must be specific; "too many delinquencies 60 days or greater" and such.

Credit scores are designed to measure the risk of default by taking into account various factors in a person's financial history. Although the exact formulas for calculating credit scores are closely guarded secrets, the Fair Isaac Corporation has disclosed the following components and the approximate weighted contribution of each:

• 35% punctuality of payment in the past (30 Days Past Due)


• 30% the amount of debt, expressed as the ratio of current revolving debt to total available revolving credit


• 15% length of credit history


• 10% types of credit used


• 10% recent search for credit and/or amount of credit obtained recently

These percentages offer a limited guidance in understanding a credit score. For example, the 10% of the score allocated to "types of credit used" is undefined, leaving consumers unaware what type of credit mix to pursue. "Length of credit history" is also a murky concept; it consists of multiple factors two being the oldest account open and the average length of time an account has been open.

Interestingly, although only 35% is attributed to punctuality, if a consumer is substantially late on numerous accounts, his score will fall far more than 35%. Bankruptcies, foreclosures, and judgments affect scores substantially, but are not included in the very vague pie chart provided by Fair Isaac.

A FICO score generally has a max of 850 and a minimum of 300. It exhibits a left-skewed distribution with a median around 723. The performance of the scores is monitored and the scores are periodically aligned so that a lender normally does not need to be concerned about which score card was employed.

Because the three major credit agencies have their own, independent databases, each of us actually has three credit scores for any given scoring system. As these databases are independent of each other, they may contain entirely different data. Many lenders will check an applicant's score from each bureau and use the median score to determine the applicant's credit worthiness.

As a result of the FACT Act (Fair and Accurate Credit Transactions Act), each legal U.S. resident is entitled to one free copy of his or her credit report from each credit reporting agency once every twelve months. To guard against inaccurate information or fraud more often than yearly, one can request a report from a different credit reporting agencies available on the net. This information is available from a number of websites across the net that offer an free credit report and use of their services for 30 days. After which, there is a monthly fee involved. The fee is nominal compared to the necessity of protecting your credit in today's highly technological society where identity theft is becoming more prevalent.

In a time where identity theft and credit fraud in on the rise, the fee these firms charge seems like a small amount to pay to protect your credit and your good name. Having a good Credit Score is becoming more and more prevalent in our society. Here are a few examples of how:

In September 2004, TXU (a Texas utility company) announced it would begin setting individualized electricity prices based on credit score. However, due to negative press and pressure from the Texas Public Utility Commission, the plan was not implemented.

Credit scores are often used in determining prices for auto and homeowner insurance. Recently, some of the agencies that generate credit scores have also been generating more specialized insurance scores, which insurance companies then use to rate the quality of potential customers. These scores are unavailable to consumers.

Many employers reserve the right to do a credit check of job applicants, in the same manner they reserve the right to drug test potential employees. the fact is that your Credit Score is important. Rebuild-Credit.us is a sight committed to providing consumers with quality information concerning credit, how to get it, and how to maintain a quality credit score. It is recommended you take the time to visit them and read through the numerous articles and reports there.

Putting Out with Business Credit Cards

Business credit cards have become popular as a source of financing for small businesses. The banks that issue business credit cards and many industry observers have identified small business credit cards as a potential area for significant growth. The personal credit card market is saturated, and the corporate business credit card market, is relatively small.

The small business credit card market presents financial institutions with a really good business opportunity. Those banks that do offer small business credit cards noted that business owners are spending more and more every month and that they carry higher annual balances than the average personal credit card holder. This holds the promise of higher fees and interest revenue.

Generally, the business credit card carries credit limits that are double the amount of the average personal credit card. But where the personal credit card is almost pushed to the maximum on its credit limit, the business credit card’s outstanding balance is normally only about 75% of the credit limit. In spite of this, the risks on small business remain high. This is the reason why most business credit card issuers are very careful when processing and approving start-up businesses’ applications for business credit cards.

In one bank that issues business credit cards, about four fifths of their business credit card holders have been in business for at least three years. Although this particular bank places a strong focus on developing their small business customer base, they have come to realize that there are higher risks associated with extending credit to small businesses. If you think about it, when in a bind, it would only be natural for people to default on payments towards their business credit cards before they default on personal credit cards. No one would want to impact their personal credit rating, although they might be willing to suffer some negative points on their business credit.

For this reason, most business credit card issuers will require that the business and the owner of the business accept joint liability for debt repayment on the business’ credit cards. Although there may be some initial grumbling about the personal liability involved, most business owners end up agreeing to this term, because the resultant access to cash and the ability to separate personal and business finances, are of great value to them. Business owners also understand that securing a business credit card early on in the life of the business, helps it to build its credit track record; and that the sooner a track record is established, the sooner the business will be able to carry the business credit card’s liabilities on its own.

Small business credit cards are convenient for travel and entertainment expenses. That is to be expected. But besides these, small business owners use their business credit cards to stock supplies, to supplement their inventory of products, and to cover other daily expenses.

For a time, the interest rates on small business credit cards were much higher than personal cards, as banks relied on traditional risk calculation methods and the absence of competitive pressure. That is not the case anymore. Business credit cards offering zero percent interest rates and reward rich incentives are advertised widely. According to issuers, the uptake is high. After all, business owners mind their costs, and low interest rates and affordable fees will always be key selling points.

Budgeting Expenses and Income Through Business Credit Cards

There comes a time in the life of any small-business owner when he or she poses the question: Can I apply credit in a smarter way without getting my business into too much debt? The basic answer to that is: Yes, by protecting your credit.

The first three years of a business’ life are the most crucial. During this time, the business owner will need to carefully budget business expenses and realistically project income. This forces the owner to give the important numbers a good, hard think. It is important to develop a picture of the monthly cash flow, particularly in the first year. This ensures that you know where your money is going and that you are keeping tabs on every aspect of the business.

The Small Business Administration says that many businesses fail because of undercapitalization – that is, not recognizing how much you really need to start the business and / or not having the means to access the capital. This is where business credit cards can help. Business credit cards are a common funding option for small businesses. So good, in fact, that there is a general observation that small business owners often overuse their business credit cards during their first years of business. And, if they do not yet have small business credit cards, they normally end up overloading their personal credit cards.

Small business owners understandably heavily rely on business credit cards to help them over those rough periods when the bank balances are low. Unfortunately, in using the business credit cards, some of the small business owners defer paying off the balance for too long and often suffer the penalties of charges in late fees and interest as a result.

The first thing to remember when it comes to using business credit cards is that you should reserve the use of business credit cards for short-term spending only. Business credit cards will allow your business to start building a credit history. If you pay off a large portion of your business credit card balance each month, or even the whole balance when you can afford it, this favorable credit behavior will enable you to build a solid credit reputation under the business name, which will make cheaper commercial loans accessible sooner. That kind of payment behavior also helps you avoid the dangers of falling behind on your business credit card bill.

Remember you already have a budget worked out. Use the monthly statements for your business credit cards to note down your expenses and to track your cash flow status. The business credit card companies already classify your charges, so it should be much easier to do. You can even download your business credit card transaction history from the websites of the business credit card companies. This should speed up your expense reconciliations and give you the time to focus on making your business grow.

Learn to use the discounts offered by business credit cards for business expenditures. Using business credit cards for certain purchases can entitle you to as much as 5 percent discounts. This feature in business credit cards can actually help you save and will go far towards balancing your budget.

Using Business Credit Cards to Finance Small Business

When the economy struggles and default rates increase, lending standards can get mighty tough, especially for unsecured micro-loans. Banks may continue to court small business during these times, but borrowing will be an uphill climb. There may be one source of financing, however, that will remain plentiful and accessible even in tough times: the business credit card.

Not too long ago, under these circumstances, small business entrepreneurs did bank on business credit cards for their financing needs, according the Small Business Administration’s annual micro-loan study, which tracks trends in loans of less than $100,000. Even during times when traditional commercial lending essentially remain flat, small business loans can grow by as much as 10 percent. This may be an indication of the success of banks’ small business campaigns, offering as a come-on a plethora of small business credit card packages or perhaps even the better methods employed by credit scoring agencies.

Today, a business owner with good standing in personal credit cards will have no problem gaining approval for business credit cards. Even in those cases where the applicant’s credit history is less than sterling, business credit cards are still easier to obtain than ordinary commercial loans. When commercial loans are simply not available – and those occasions do arise – the remaining fallback may be business credit cards. The business credit card is essentially a guaranteed line of credit, and when banks withdraw their unsecured loan offerings, the small business owner may have no recourse other than securing business credit cards.

Is financing with business credit cards prudent?

It can be the ideal solution during crunch time. Business credit cards give you a 21- to 30-day float on your money. You get a guaranteed loan – albeit at high interest rates. The float you get from a business credit card does come in very handy when payments from clients become overdue, or when your business requires unexpected supplies.

This does not mean that business owners don’t get into trouble with financing via business credit cards. More than a few of them have. You should not forget that while the average business owner does not generally carry large balances on the business credit cards from one month to the next, the temptation to do so is very real and it is there all the time. Most entrepreneurs are very responsible people and are prudent in handling their finances - but when their backs are up against a wall, most of them will do whatever they legally can in order to save their businesses. Racking up the balance on their business credit cards can become one such alluring option.

Barring extreme circumstances, intelligent and discriminate use of business credit cards may actually help save the business money. If you consider the savings programs carried in many business credit cards, it is possible for business credit card users to earn discounts on a lot of services – couriers, car rentals, office supplies, printing, and many others. When you work for yourself, you’re always looking to save the pennies. Business credit cards can help you do just that.

The Game of Business Credit Cards

Sometimes, when financing for your new business venture seems a little hard to find, you might want to consider the business credit cards offered by the different issuers. Business credit cards are rapidly gaining popularity among small business owners, who have seen these very useful as alternative financing sources.

Small business owners and would-be entrepreneurs are not as well connected to sources of high finance with which to bankroll their projects. Business credit cards can be their door to that opportunity or, at the very least, a much appreciated lifesaver for existing businesses from time to time. It is not unrealistic for the small business owner to anticipate that a cash flow crisis could occur at anytime. Perhaps for this reason, business credit cards are seeing wider use as a source of financing, with some of the business credit card holders learning the game of how to make things really work to their advantage.

For instance, small business owners who keep their business credit cards on file with their regular vendors can help eliminate COD charges, receive expedited delivery services, and get the chance to stretch their cash flow by a few extra yards. Your business can conserve cash for a little while longer by charging supplies to the business credit cards at the beginning of the billing cycle – which gives you a float of about 21 days.

It cannot be said too often: business credit cards can really help you manage the business better. That you can use the business credit cards for travel and client entertainment is well documented. Less well known is, that at the end of a quarter, the period expense account summaries from your business credit card companies are a big help in reconciling your transactions and preparing your quarterly tax filings. More than that, if you take the time to review the summaries, you will have the ability to uncover some potential trouble spots. You may find out where the business is incurring too much expense, and which employee is causing the financial leak.

You will also observe that due to the competition among issuers, many business credit card issuers offer you zero percent interest rate for balances transferred from another business credit card company to theirs. This presents you with a really great opportunity - if you go about it in a smart way: You can capitalize on these zero-interest offers by continually moving your balances from one business credit card to another business credit card without ever having to pay market rates. This is a perfectly legitimate strategy, and there are more than enough business credit card issuers out there asking business credit card holders to do exactly that.

You can play it as a kind of game. You would never run out of new business credit cards to jump into when the introductory period on one business credit card is about to expire. If you do take this tack, be alert about keeping on top of your statements and your expiry dates.

It will also work in your favor if you transfer your business credit cards when you observe interest rates starting to rise. As an alternative, you could speak with your existing business credit card issuer to see if they are willing to bring their rates back down. Note, though, that repeated applications for business credit cards may impact your credit report, so keep eye on acceptable periods for credit inquiries.

Accept Business Credit Cards - Empower Your Business and Your Clients

Businesses today are increasingly making use of business credit cards to transact, both as vendors and as buyers. This trend in spite, there are still a number of vendors who do not accept business credit cards from their business clientele. The truth of the matter is that if such a vendor wishes to achieve higher trading volumes and increase its client base, accepting business credit cards changes from being an optional, to a must.

Accounts receivable is not only a nasty trap, but also creates a vicious cycle. Vendors that do not accept business credit cards, often agree to extending credit to their clients in order to retain their custom. Although this may be a necessary business practice, it does place unnecessary strain on the business’ finances: Unnecessary, because by accepting business credit cards, you can retain your clients and mitigate your cash flow risk at the same time.

The benefits of accepting business credit cards are numerous and include:

Boost Your Sales: When your clients are in a position to purchase what they want immediately, most of them will. When they make that immediate purchase, your sales are boosted. A simple browse - either in your store or on your web site - may turn into a profitable visit if you enable your clients to make payments with their business credit cards.

Bolster Your Cash Flow: Many merchants who do not have sufficient cash flow with which to support growth, may be victims of high accounts receivables. One of the quickest ways to free your business from this trap is to start accepting business credit cards. Stop billing your clients and start billing their banks instead! When you accept business credit cards, the revenue from the sale will reach your bottom line much sooner than accounts receivables would.

Put Smiles on Your Clients’ Faces: Clients obtained their business credit cards for a variety of good business reasons and will want to use these. Don’t allow your clients to find alternative suppliers purely because your business is not able to process business credit card transactions. When business clients are searching for a supplier, and they want to pay by means of their business credit cards, they will search until they find a supplier who does. Accepting business credit cards places you in the running for their business – and that is a good place to be!

Put Smiles on Your Financial staff’s Faces: Your accounting department will be very happy when you decide to accept business credit cards as payment for purchases. They will be freed from the hassles of paperwork and the headaches of collecting all your accounts receivables on time. If one compares the collection of outstanding accounts from many of different clients to collecting from the relatively few merchant services that issue business credit cards, the latter is a walk in the park.

Accepting business credit cards may be necessary to enhance and grow the business relationship you enjoy with your clients. It affords your clients the opportunity to make use of their preferred method of payment and liberates you from the accounts receivable trap at the same time.

What Makes Small Business Credit Cards Different From Corporate Cards

Everyone in business is aware that business credit cards have become increasingly popular. Business credit cards have been receiving special attention from credit card issuers: They recognize the business potential created by the rising demand for business credit cards among small and home-based businesses, and are intent on tapping into it.

The major credit card companies designed business credit cards purposely to address the needs of these small and medium sized companies. Wherever you look - on the Internet, radio and broadcast media, newspapers and other print media - you will find the card issuers advertising these business credit cards, and that the adverts specifically target small to medium enterprises. The point: to inform their target market about the features and benefits of their specific business credit card offerings.

So, how did the business credit card companies design their small business credit cards? Although there are variations from one business credit card package to the next, the basic features generally cover cash discounts for purchases of business-related supplies, a wide array of opportunities for rewards, travel privileges, frequent flier miles, and very low annual percentage rates for balance transfers in their introductory periods. The small business credit card holder also receives periodic reports as rule, which summarizes purchases made on the business credit card account. These reports can normally be viewed online and can be downloaded into a QuickBooks file.

Like small business credit cards, large corporations have equivalent corporate business credit cards. These are markedly different because corporate business credit cards (or simply corporate credit cards), are specifically designed for the corporation itself and not for the individuals inside the corporation. Once a corporation decides to apply for a corporate credit card, the officers enter into negotiations with the credit card issuers to hammer out the specific features of the card and how the business credit card will integrate with the company’s finances and financial systems.

The corporate business credit cards are usually distributed to employees to use for those expenses they would normally incur on behalf of the company. Like small business credit cards, corporate credit cards also track the expenses incurred by each cardholder and individual reports are submitted to management. Because of the different, and often more complex, expenses incurred by large corporations, the system of reporting generally requires a specialized software application to resolve these financial complexities.

The single most significant difference between small business credit cards and corporate credit cards is the mode of payment. Generally, for small business credit cards, the credit card is the responsibility of the primary individual applicant who is also responsible for paying the balances or installments due. In the case of the corporate credit card, the credit card is issued in the name of the corporation. Primary responsibility for payment thus resides with the officers of the corporation.

The process of issuing a corporate business credit card is much more complicated than that of a small business credit card. For the small business owner who wishes to apply for a business credit card, it is quite simple actually; there are even websites where you can compare the different business credit cards and submit online applications once a choice is made. This is a luxury that a large corporate in need of a business credit card account, simply does not have.

Advanta Business Credit Card

In the competitive business credit card market, some financial institutions have opted to become niche players. This decision to specialize is primarily driven by the need to gain market share.

One of these niche players is the Advanta Bank Corporation. Advanta is touted to be among the largest issuers of business credit cards for the small business market. That is quite possibly an accurate observation since Advanta is known to have focused exclusively on the small business market, and its business credit cards simply reflects this focus on the requirements of small businesses.

You are clearly reminded of this when you visit the Advanta web site to look at their business credit card offerings: there is only one featured card, the Advanta MasterCard Platinum Business credit card. This is a cash back rewards business credit card which offers you 5% discounts on certain items and a 1% general discount, on others.

There is an ongoing drive from their side to partner with more companies that sell products and services which form a part of the normal operating expenses of small businesses, to increase the appeal of their credit card offering.

The Advanta business credit card packages are competitive from a pricing point of view. The zero-percent introductory annual percentage rate on balance transfers runs for fifteen (15) months, which is longer than most other business credit cards. Just as important to the small business owner, the APR on balance transfers after the introductory period is also one of the lowest, at 7.99% fixed interest. The market average is a full percentage point higher. Most other business credit cards have both higher APRs and variable interest rates.

To add luster to their small business offering, Advanta business credit cards distribute the cash back bonuses earlier than many other business credit cards. There is an automatic cash back payout feature which means you start receiving your cash back checks for every $50 you have accumulated immediately. This could help support cash flow to a small measure.

There is, if you prefer, an opportunity to convert to travel rewards instead. Where many other business credit cards will allow free travel only upon reaching 15,000 or even 25,000 rewards points, Advanta business credit cards allows free travel upon reaching 10,000 rewards points.

In keeping with its niche strategy to cater to the needs of the small business credit card market, Advanta – like many other large banks - make a comprehensive library of small business resources available to their business credit card holders where they can access small business guides and small business tools.

Small business guides typically offer business credit card holders assistance in the preparation of business plans and marketing plans, and provide information on specific financial products. There are normally tips on how to win lucrative government contracts as well as tips on how to protect your personal assets. The latter is something most small business owners consider important.

Small business tools generally provide business credit card holders with easy-to-use templates of various official government forms (for tax purposes or for government contracts), samples of business documents such as business letters, contracts, forms, generalized statements of policies, as well as financial spreadsheets to help them manage their finances.

Wooing Small Business With Business Credit Cards

A few months ago (April 18, 2007), Discover Financial Services launched a new business credit card that offers frequent flier miles to small business owners. Among the credit card brands, Discover was one of the last to start offering business credit cards to the small business sector. Reportedly, this is only the latest in a virtual avalanche of business credit cards designed for small business.

One cannot but wonder at the sudden interest.

Perhaps a glance at recent research material will offer some clues. Data shows that in 2006, the small business sector spent $4.9 trillion; but only one-twentieth (5%) of that money was paid through business credit cards in any form (credit or debit card). The credit card companies now want in on that huge market, and believe they can induce small business owners to not only make use of their business credit cards but also to spend more on their cards.

To achieve this, the credit card companies will have to convince the small business owners to use business credit cards in less traditional ways. Traditionally, business credit cards have largely been used to cover travel and entertainment expenses. What card companies want is for businesses to use their business credit cards for everyday spend.

This is the reason behind the new cash back rewards business credit cards. These cards offer 5% discounts on purchases of office supplies, gasoline, courier services and other essential business needs. MasterCard even went as far as launching a business credit card targeted at a specific industry: contractors and construction companies. MasterCard was also the first card company to provide zero-liability protection to small business credit card holders.

Discover’s recently launched business credit cards offer small business the chance to purchase checkbooks. This enables small business owners to pay for purchases from vendors that don’t accept business credit cards. These checkbooks tap into the spending limit on their Discover business credit cards. Visa offers a directly competing program.

American Express sponsors various networking events for small business credit card holders. It also features one of the most extensive business resource databases to help users of its business credit cards to address and resolve their everyday business management problems and concerns.

How big is the potential market for business credit cards, you may ask? If you take the $4.9 trillion small business spending in 2006 and double the current business credit card spend from 5% ($245 billion) to 10%, you have $490 billion. If you charge 15% interest on that, you have a $74 billion potential contribution to profits. In fact, market research companies forecast double-digit growth in small business credit cards between now and 2010, and total charges are projected to reach $740.2 billion by that year. That is a lot of profit.

It has been an uphill climb to get small business owners to subscribe to an expanded use of business credit cards. It takes time, but eventually business owners will respond. One issue that business credit card issuers will have to address is the marked preference of small businesses to pay their full balance for the month as and when it falls due. Card companies do not earn from such transactions. That should be food enough for thought.

The Nest Credit Card American Express Helps The Newlyweds Build Their Nest

Amex has a credit card for literally everyone and The Nest Credit Card American Express is aimed at lovebirds with the ‘JUST MARRIED’ tag. The Nest Credit Card American Express caters specially to the needs of the newly wed couples, when they start their life together. If you are "JUST MARRIED", then this is the card for you. The card is for helping the newly weds to earn rewards and combine their finances when making future plans.

On becoming a Nest Credit Card cardholder, you will be getting an exclusive welcome kit that comes with a planning binder to help you in smoothly managing and arranging your home expenses and joint finances. On the first use of your card, you will get 5000 membership reward points, which is redeemable for a $50 gift card.

Card Advantages

The Nest Credit Card American Express provides various discounts along with home-related savings and gifts offers. As a Nest Credit Card cardholder, you can also avail of offers, like discounts from participating partners and special travel offers provided by the American Express Vacations.

The cardholders are naturally enrolled in the Membership Rewards Options program, which is charge free and provides the option of getting points for purchases made.

The newly wed couples obtain the Nest Planning Kit, which is a custom-created binder to help the couple better plan and organize their conjugal life, including home maintenance, home décor, budget, insurance and more.

Card Features

The Annual Percentage Rate or the APR is reasonably low for purchases and the balance transfers, especially for a reward card. This American Express Card has no annual fee and helps you to pay your balance in full every month. You can also carry a balance from one month to the next month. If you want to benefit from the special offers and reward program, then the Nest Credit Card American Express is the credit card for you, only that you will need to have excellent credit rating.

Other Benefits

If you make this card your primary card, then you can spend over $15000 each year and obtain an extra 10000 bonus points. You can use your card instead of cash and pay one bill for all the monthly expenses every month.

With the Nest Credit Card American Express, you gain one point for spending a dollar. The points do not expire when you use your card once within a three-year period. You can cash in on your points for traveling, shopping and for your other needs.

The card also offers purchase protection plans, up to $100000 travel accident insurance coverage, extended warranty on purchases, legal referral services, return protection, roadside assistance, travel and emergency assistance, different Internet account related services, auto rental insurance and many other services, which help you plan your life.

CitiBusiness Card With Thank You Network

Citibank has been offering great services to its 200 million customers all over the world. It has been able to understand their needs and caters with great proficiency to its wide client base - right from the frequent travelers to business personnel and students.

The CitiBusiness Card with Thank You Network is formulated to provide rewards to the small business owners for make use of this card. The card can prove to be an enjoyable experience for the cardholder.

The Card And Its Benefits

Each time you pay with this card, you will earn bonus points that can be redeemed for travel, retail and other gift certificates. Your first purchase will help you gain 10000 bonus points so that you can begin your business in a great way.

You will also gain access to a credit line that will help you purchase all the items you require for business. For spending one dollar on business purchases with your CitiBusiness Card with Thank You Network, you will acquire three points. You can earn a maximum of 100000 reward points per year (that become invalid after three years), enabling you to save for some great rewards.

Some Other Advantages

Besides earning points, you also stand to being benefited by other privileges like a personal assistant service for making travel plans and dinner reservations, online banking, a reasonable annual percentage rate (APR) and no annual fee. The interest rates for both purchases as well as balance transfers are competitive. There is a 0% introductory rate on balance transfers for the duration of twelve months.

The card also permits you to go through the business articles that are posted online when you view your account. This can be a fabulous learning experience. The CitiBusiness Card with Thank You Network can be a rewarding experience in more ways than one. The card enables you to pay all your bills, manages your expenses and even rewards you for your efforts by giving a small part of your expenses back.

You can also avail of a number of platinum level credit card benefits, like car rental insurance, advanced fraud-protection and $1 million travel accident insurance for self and family. The card also provides travel benefits, such as emergency card and cash replacement, lost luggage coverage and zero liability for the unauthorized purchases.

Additional Perks

Similar to most of the other credit cards, the CitiBusiness Card with Thank You Network provides you access to many Internet account related services, lost and stolen card reporting, purchase protection and personal business assistant.

The card also provides the cardholder with benefits, such as quarterly and end of the year financial statements, automatic bill payments, medical as well as legal referral services, a number of travel and emergency assistant services and many more facilities.

The Citi MTv Platinum Select Visa Card For College Students Is Good News For College Students

The Citibank Students Cards cater to the needs of students and is more than a debit card for the students. One among them is the Citi MTv Platinum Select Visa Card for College Students, which facilitates particularly those college students who pay off their credit card balance on time and manage to keep the balance low.

The Citibank Students Cards cater to the needs of students and is more than a debit card for the students. One among them is the Citi MTv Platinum Select Visa Card for College Students, which facilitates particularly those college students who pay off their credit card balance on time and manage to keep the balance low.

Benefits Of The Card

The Citi MTv Platinum Select Visa Card for College Students promises to be a rewarding experience for the students with high GPA’s. Higher GPA’s will give you higher points. The Thank You points that you earn can be utilized for MTv merchandise, airline tickets, gift cards and CDs.

The credit card enables you to achieve a solid education and gain smart spending. The card has a reasonable annual percentage rate (APR) convenient for building a good credit. You can also avail the opportunity to use your points towards MTv special events and for other fun purposes.

Absence of any annual fee makes it easier for the student to save money. The card enables students view/check their accounts and pay the bills online. The card also has provisions for theft protection as well as travel insurance. In case, you live away from your home, the Citi MTv Platinum Select Visa Card for College Students gives you the option of visiting your family and avail a discount on the airline tickets.

Other Benefits

The card comes handy if you require quick cash or desire to save a balance on another high interest-rate credit card. Moreover, you can avail of a 0% annual percentage rate (APR) on the balance transfers and a 0% interest rate on the cash advances for the initial six months.

Each and every purchase you make with the card enables you to obtain points. You can conveniently earn 5 points for spending 1 dollar at your favorite haunts, like video rental stores, bookstores, restaurants, record stores and movie theatres. For purchases elsewhere, you can earn one point for spending one dollar with the card.

The Thank You Redemption Network of the Citi MTv Platinum Select Visa Card for College Students further makes it possible for you to earn 2000 Thank You points twice a year for possessing a good GPA. You can, however, earn a maximum of 75000 points each year. The rewards expire in the duration of 5 years.

You can save 10% at the MTV store in New York City and mtvshop.mtv.com. If you are able to make timely full payments each month, you will be receiving 20 free of interest days in each billing cycle.

Bonus Points

The card brings for you other advantages like many Internet account related services, emergency card and cash replacement, lost and stolen card reporting, auto rental insurance and legal as well as medical referral services.

It also gives the cardholder the facilities like free access to credit education tips and tools, lost luggage assistance, fraud and security protection services, discounts on auto rentals, up to $1000000 travel accident insurance and more privileges.

Everything About Citi MTv Platinum Select Visa Card For College Students

The different types of Citicards issued by the Citibank perfectly complement the needs and demands of the college students. One among them is the Citi MTv Platinum Select Visa Card that is very beneficial for the college students who are very much interested in pursuing a great academic career.

The Basic Features Of The Card

Only those college students can avail the use of the Citi MTv Platinum Select Visa Card for College Students who have a pretty clean credit record – have paid the credit card balance in time or have kept the balance amount very low. The card also rewards those students for high GPAs. The card has all the attributes that can usher you towards a bright future. Since the card has very low annual percentage rate, therefore you can work towards a good credit rating.

The Key Features

The card has a 0% introductory annual percentage rate applicable for the first nine months. But once the introductory APR period expires, the rate changes to 17.99 percent. The cardholders do not have to pay any annual fee on balance transfers.

With this card, you will have enough scope to save money; transfer the balance on another high interest rate credit card to this card within the first six months, and the 0 percent interest rate on cash balance and/or on balance transfers will help you save some precious dollars.

The Card Advantages

The most significant and unique advantages of this card are as follows:

· The card enables you to earn 5 points for each dollar you spend in the restaurant, record stores, bookstores, movie theatres or anywhere else. In this way you can earn up to 2000 thank you points twice each year and with these points you can buy gift cards, merchandise and many thing else.

· You can check your account online or even reimburse the bills. There is the possibility of checking the number of points that you have accumulated.

· You can both earn and trade points for the special events of the MTV channel or other entertainment activities.

· Annually you can earn unto 75000 points and the reward expiration period is 5 years.

· The card also enables you to save up to 10 percent at the mtvshop.mtv.com. You can make the purchases interest free and earn points as part of the reward program.

· If you make purchases from the online store or the MTV Net York city store, then you can enjoy discount on purchases.

· The cardholders can also benefit from auto rental services, travel accident insurance and many more.

· The other benefits of the card include Internet services like the emergency cash replacement, emergency card replacement, fraud and security protection services, auto rental insurance, $1000000 in travel insurance and other similar benefits.

Citi Driver's Edge Card for College Students

Citibank is an esteemed company known to offer numerous financial services including various kinds of credit cards with reasonable charges and attractive reward programs. The Citi Driver’s Edge Card for College Students, specifically dedicated to college students, walks more or less in the same direction.


Citibank is an esteemed company known to offer numerous financial services including various kinds of credit cards with reasonable charges and attractive reward programs. The Citi Driver’s Edge Card for College Students, specifically dedicated to college students, walks more or less in the same direction.

This Citi card lends you the opportunity through which you can build your own credit history. It can be an ideal card for you, if you wish to earn rebates on the purchase of a new, leased or used car (any model, whether a domestic-car or a foreign-made car), each time you use the card to make a purchase.

Basic Feature

Coming to the essential features of the Citi Driver's Edge Card, you will find some the following:

§ The card offers a 0% introductory APR for first 6 months on balance transfers, purchases, and cash advances . Also the card is annual fee-free

Rewards Program

With the Citi Driver’s Edge Card for College Students in your pocket, you have exciting rewards waiting for you. Take a look at the ways through which you can earn them:

§ You can earn upto $1000 in rebates toward a vehicle during any twelve consecutive months

§ The card offers you 3% rebates at drugstores, gas stations or grocery stores. You will be able to exchange these points while buying a car.

§ A rebate of 1% is allowed on all other purchases.

§ Rebates are also allowed for the number of miles you drive and the rebates you get are available at a rate of $0.01 per mile driven.

§ There is an upper limit of $5000 per vehicle to the rebates that you are allowed to redeem.

§ Keep in mind if you do not use your rebates, they expire in five years.

This rewards program with Citi Driver's Edge Card for College Students provides you the much need assistance after graduation when you think of buying a car.

Special Benefits

Apart from the excellent rebates’ reward program, the Citi Driver’s Edge Card for college students, also allows you good savings by means of 25% discount and free shipping at Peterson’s (a leading bookstore and educational/career advisory body).

Other Advantages From The Card

If you have Citi Driver's Edge Card for College Students, you can make your purchases with full confidence as this card offers you the following:

§ Online Guarantee – Your account number is kept in full confidence. If there are some unauthorized online transactions through your card, you will never be held responsible for that.

§ Fraud Early Warning Block – On observing any unusual activity on your card, activities will be temporarily stopped until it is confirmed that you have authorized the charges.

§ The Lost Wallet Service – Your Citibank credit card will be replaced within 24 hours of being lost or stolen and you will also be assisted with emergency cash and helped to recover lost or stolen documents including airline tickets.