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.

Detailed Information About Business Gold Delta Skymiles from American Express

The American Express has come up with the Business Gold Delta Skymiles from American Express aimed at the small business sector. The card promises the much needed financial help in the form of a credit line of up to $50000. The card is very apt for the business owners who can take advantage of savings on flying miles as the card enables the customers to accumulate considerable airline miles for the Delta and Song airlines.

The Basic Features Of The Card

The annual fee applicable is $85, which is waived off for the first year. An applicant, having a charge card account with the American Express, however, will enjoy a special benefit and will be charged a mere $30 towards fee for the Business Gold Delta Skymiles Card.

The card has a regular APR of 17.99 percent, which is above the average. You should have no problems if you clear your payments regularly. Defaulters, i.e., people who carry balances, will find the card not very beneficial and they will accrue huge credit card debts.

The Card Benefits

The Business Gold Delta Skymiles from American Express awards the users with points. If you spend one dollar on general purchases, then you can earn one point. According to the double points program, you can take back 2 points for every dollar spent at super markets gas stations, drug stores and United States postal services. You can also earn double points if you use the card to make purchases with Delta and Song airlines or for wireless phone bills.

The good news is that the miles earned have no expiration period but you should keep your account active for a three-year time period.

You will receive 15000 start-up miles for making the first purchase with the card. You will be awarded with additional 5000 bonus miles for making purchases worth $15000 and $25000 annually. You will also be eligible for 1000 bonus miles for each additional card application submitted with the basic card application (for up to five additional cards).

Equipped with this card you can save money for the discounts at the FedEx, AT&T, Hertz and many more.

The Extra Benefits

The Business Gold Delta Skymiles from American Express offers a myriad of other benefits and perquisites. You can receive purchase protection related services, travel accident insurance and discounts from those merchants and retailers who are a member of the American Express network. You can also benefit from the various account related services, purchase protection, emergency check in service and other similar services.

The BLUE CASH for Business from American Express - A Card For The Business Owners

Founded in 1850, the American Express is a financial organization that is highly respected. Now, it has around 78200 employees. American Express cards are renowned for their remarkable benefits and excellent customer service. They promise the customers immediate purchasing power.

One such card, the BLUE CASH for Business from American Express is a cash back version of the BLUE Card, which was introduced in 1999. The BLUE CASH card is basically a business credit card, which is specifically made for the small business owners interested in a cash back rewards program and having an average credit.

What Does The Card Offer?

The BLUE CASH Card from American Express is equipped with a 0% introductory Annual Purchase Rate (APR) available for the first six months on your purchases and 7.99% rate on the balance transfers, also applicable for the first 6 months only. After the end of the introductory period, the purchase APR remains within a reasonable range. The card has no annual fee.

The card creates enough scope for the cardholders to earn rebates through a reward program. The rebates are offered for the expenses you make within the "OPEN Savings" network, which include general purchases, Hertz, Staples, AT&T, FedEx and others. Here, the cardholders can earn up to 5% cash back on purchases.

As a cardholder, you can earn up to 2.5% cash back on purchases even outside the network of the "OPEN Savings". The high-rebate percentage scheme will be valid until the annual spending on your card reaches the $15000 limit. After you reach the limit, the purchases made within the OPEN Savings network will fetch you 2% cash back and the other purchases will get you 1% cash back.

Package Of Benefits

The other benefits offered by the BLUE CASH for Business from American Express includes unlimited extra fee-free cards, business advice from experts, travel and emergency insurance, extended warranties on certain purchases, travel accident insurance, car rental insurance, emergency card replacement, various Internet account related services, purchase protection and more.

The OPEN Savings Network

The BLUE CASH for Business from American Express provides you access to the OPEN Savings Network, which is a small business network. This offers you the resources and associations to help you in the smooth functioning of your business. Other than the unlimited fee-free additional cards and savings, the network permits you to manage your account online with the Small Business Dashboard. You can also track charges with the Expense Management Reports.

You can avail expert opinion and advice for help on business matters; you may as well discuss business issues with other business owners online.

Business Green Rewards from American Express For Quick Rewards

Business Green Rewards Card introduced by American Express favors business owners with good credit. Those of you, who can pay in full each month, be ready to redeem the extensive rewards program without any limits.

The Business Green Rewards from American Express offers you a great rewards program. The most important thing you need to understand is that Business Green Rewards card is a charge card, that implies all charges made on this card must be paid in full as the monthly bill arrives.

For late payments, you will be subjected to a fee equivalent to the greater of $30 or 2.99% of your overdue balance. Nevertheless, this may be a perfect option for those of you who want to get rid of accumulating credit card debt.

Rewards Program

Whenever you make a purchase with your Business Green Rewards card, you earn a point for every dollar spent on the card. You get an automatic enrollment in the Membership Rewards program without any additional fee and redeem points for merchandise, travel and other rewards for your business and yourself as part of the program. The card gifts you 5,000 bonus points as soon as you make your first purchase with the card.

Business Green Rewards from American Express redemption program is quite broad, so you can redeem points in denominations as small as 400. You can use your points when you feel like and they will not expire.

Some Basic Features

Have a look at the basic features of Business Green Rewards Credit Card:

§ The Credit Card has a low 0% introductory APR on purchases and balance transfers.

§ As a primary cardholder, you will have to pay an annual fee of $95, which will be waived for the first year in case the card-application is submitted online.

Unique Features

The unique features of Business Green Rewards from American Express are as listed below:

§ OPEN Program – gives you access to the OPEN small business network. This OPEN network basically provides businesses with discounts on essential services such as car rentals, telephone, shipping, and printing. With OPEN Savings SM you get discounts at FedEx, Delta®, Courtyard by Marriott®, and more by using your Business Card.

(You will need no coupons or codes and your savings will come along with other discounts your business may already receive. You would have no pre-set spending limit on cards. It also offers you fee-free additional cards, offers online management tools and credit-savvy agents).

§ Additional Cards – there is no limit to the number of cardholders you can make. Provide the Business Green Rewards Card to your employees and reward them with the various benefits of Card membership. In return, you will be rewarded with a convenient way to manage their expenses.

§ Expense Management Reports – check your spending from Business Card by spending category, time-period, or individual cardmember, data will be available at no extra charges.

§ Network News – through this you can send your queries via e-mail and receive a monthly e-mail newsletter automatically, which informs you of business tools and resources, promotions and benefits, and timely business articles and advice.

Accessories

Some additional benefits you achieve from the Business Green Rewards from American Express include up to $100,000 in travel accident insurance, auto rental insurance and purchase protection. Apart from these you have various Internet account related facilities, Lost and damaged luggage insurance, emergency card replacement and other travel and emergency assistance services.

American Express Blue Or Green Credit Cards

Green or Blue? Which American Express card is right for you?

Also known as AMEX, American Express is easily one of the most recognized names in the world of credit cards. Even though many people have Visa or MasterCard credit cards, they are still interested in AMEX. With Visa, MasterCard, and AMEX being the most popular and preferred types of credit cards, they are all great although there are also differences between them as well.

Both Visa and MasterCard are methods of payment. Both will allow different businesses to accept credit card payments using their systems. Neither of the two issue credit cards on their own behalf, instead they rely on banks throughout the world to issue the credit cards for them, provide the credit, and then charge the interest. Your credit card bill goes to the bank, as Visa or MasterCard doesn’t see any of it.

AMEX, on the other hand, is very different. American Express has their own payment system, and they also issue their credit cards directly to consumers. Unlike Visa and MasterCard, AMEX runs the entire show. Therefore, when a credit card says American Express on it, you instantly know who has issued the card, what payment system it has, and everything else you would need to know.

Even though MasterCard and Visa are used more throughout the world, American Express is always expanding their networks. Visa and MasterCard are used in over twenty five million locations over the world, including third world countries, which makes them global credit card payments. AMEX on the other hand, doesn’t quite reach this degree. It is a great credit card, although it isn’t used around the world in areas where the other 2 dominant credit cards are.

You can get AMEX credit cards with rewards, although you’ll need to be careful where you look and what you select. Normally, with Visa and MasterCard, you’ll have to look at hundreds of banks before you can find the best choice. With AMEX, you can look at their website and find out what they offer and what type of APR you’ll have to pay. Most of the time, you can find a credit card with low interest and a great spending limit - providing you have good credit.

AMEX also has several advantages that it offers customers in North America and Europe. The credit card is accepted widely in both areas, offering you credit cards with great features and very attractive looks. AMEX offers you great rates, good rewards, and excellent customer service as well.

American Express also offers you Blue, which is a newly introduced credit card that offers you increased security, no annual fee, and 0% APR for the first year or so. Depending on your credit, you may be able to get an extended period with no interest. After that time has expired, you pay low fees, which make it a great credit card for anyone looking for a deal. Blue is the newest card from AMEX, and will rapidly become one of the best due to its amazing features.

In the world of credit cards, American Express is one of the best. They offer you a variety of different credit cards, designed to meet just about everyone’s needs. You find them online or through a local provider, although online is the preferred way to go. Simply fill out your application, and if you have good credit, you’ll be approved. Before you know it, you’ll have a credit card from AMEX and be ready to experience life in the fast lane.