Business Credit Card

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Labels: business credit card, exchange traded fund, exchange traded fund etf, exchange traded funds, exchange traded funds etf, exchange traded funds etfs, exchange traded funds list

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Labels: become debt free, business credit card, debt free

Are you pondering on whether you should apply for a credit card? Well, the answer quite simply is - 'Yes' - you should apply for a credit card (this is true for most people). The credit cards seem to have transformed our lives. In fact, one can term credit cards as a revolution. Today, you find ads in TV/newspapers/website/shops and almost anywhere and everywhere; all asking you to apply for a credit card. When you look around, you see that most people have credit cards. In fact, most people have multiple credit cards. Everyone seems to apply for a credit card. So, why should you apply for a credit card?

There are a lot of benefits associated with credit cards; however, the most important benefit is the convenience that they offer. For most people, this is the prime and the sole reason that instigates them to apply for a credit card. This wouldn't have been the case a few years ago, when not many merchants accepted credit cards. However, today, most merchants do accept credit cards.

So, instead of carrying a lot of cash on you (which is both inconvenient and unsafe), you can just carry a small piece of plastic with you. Moreover, you get interest free credit i.e. you don't have to pay the bills till the next monthly billing cycle. So, you can buy now and pay later (when your salary arrives) - a great reason to apply for a credit card.

To add to that, there are certain merchants that offer interest-free installment payment plan i.e. you can make a big purchase today and pay for it in installments on your credit card. So credit cards works as instant long term loan too (not just a monthly loan). Yet another reason to apply for a credit card is the discounts on shopping. This is made possible by the tie-ups between credit card companies and the merchants. So credit cards offer many benefits.

There are various ways in which you can apply for a credit card - you can apply for a credit card in person, you can apply for a credit card on the internet and you can apply for a credit card on phone too (by asking the representative to meet you). You will as such be approached by a lot of sales representatives, all asking you to apply for a credit card with their company.

To apply for a credit card, you will need to fill-in a credit card application form (which is easy to fill and the representatives of the credit card company will assist you in that). When you apply for a credit card, you basically enter into an agreement with the credit card supplier (the form that you fill when you apply for a credit card is actually an agreement). After you have submitted your application, the credit card company conducts certain checks to determine your credibility; and if everything is fine, you receive the credit card.

So, applying for a credit card is easy and to apply for a credit card or not to apply for a credit card is a matter of personal choice. However, for most people who don’t have any credit card, the recommendation is "Apply for a credit card".

Labels: apply, business credit card, credit card, how

As time progresses, more and more people are joining the revolution called ‘Credit card’. Yes, it's really a revolution. Now you don't need to worry about how much cash you have in your pocket when you go shopping, just carrying this small piece of plastic (credit card) is enough to assure you of a good shopping treat. You can use your credit card to order things from the comfort of your home (on the internet). So the number of credit card applications seems to be on the rise.

However, not every credit card application turns into a physical credit card. Some credit card applications get rejected too.

Let's check why a credit card supplier would reject a credit card application when he has spent so much time and energy (and money) on wooing new customers.

One obvious reason for rejection of credit card application is human error i.e. the error committed by you in filling up the credit card application. These can be small mistakes like a wrong telephone number or wrong name or the postal code might be wrong. It's normal to make mistakes, after all we are human being and no human being can be termed as perfect. Another strong reason for rejection of a credit card application could be missing mandatory information i.e. when you forgot to fill-in some mandatory information in the credit card application form.

Sometimes, the credit card application could be rejected because the credit card application form has been filled-in in a handwriting that is illegible to the people processing your credit card application. At other times, the sales representative (of the credit card supplier) could have made a mistake in either depositing the form correctly or in guiding you in the filling of the credit card application form (newly hired sales representatives can make such mistakes).

However, these human errors are just minor errors that can be corrected later on and hence the only impact would be in terms of the delay in receiving your credit card. The main and the most important cause for rejection of credit card applications is bad credit ratings i.e. a negative credit history. If you have been using other credit cards or if you have taken bank loans/mortgages in the past, you would have already build your credit rating.

If you have been making your bill/installment payments in time (and in the correct amount), you would have already acquired a good credit rating. However, if you have been irregular or if you have been defaulting on your payment dues, you would have developed a bad credit rating. This credit rating is calculated by credit bureaus who receive feeds from various credit suppliers. All credit card applications are checked for the credit rating of the requester and if it comes up as negative, the application is rejected out rightly.

So, these are the 2 most important reasons for rejection of credit card application and you must pay heed to them (especially the credit rating).

Labels: application, business credit card, credit card, rejection

"Online credit card usage" - convenience at its best

Commerce and technology, combined as a one package - this is what online credit cards are.
With the advent of internet, the knowledge and communication barriers were broken. Also, with internet, came the concept of e-shops or virtual shops that existed only on the internet. You could shop at these shops by making use of their online credit card payment-acceptance ability. Once the online credit card payments were verified and approved, the goods got delivered to your door. This is what we call convenience at its best.

With more and more e-shops getting setup everyday, online credit card usage is becoming even more popular. The possibility of receiving online credit card payments has given a totally new dimension to shopping. Now, you can not only shop from the comfort of your home, you can even get discounts on these products. This is really amazing. No need to bother about the weather, no need to worry about the traffic jams or any other thing. Just go to an e-shop, select a product, make use of their online credit card payment-acceptance facility to make the payment and be ready to receive the goods at your doorstep.

With online credit card processing facility, starting a business (an online business) has become just unbelievably easy.

However, there is nothing without pitfalls. One of the pitfalls of online credit card usage is the possibility of online credit card fraud. This online credit card fraud can happen in two ways. The first one is related to the company, on whose website you made online credit card payment for purchase of goods; this company itself could be fraudulent i.e. it could take the online credit card payment from you but not deliver the goods to you.

Moreover, they could use the details of your credit card (received through the filling up of online credit card payment form by you) for fraudulent purposes. The second type of fraud is committed by fraudsters who use various softwares/devices to capture the details of online credit card payments (as you enter them on the online credit card payment form of a website).

These softwares are popularly known as spyware and these fraudsters as online spies. The spyware works by capturing keystrokes or taking screenshots of whatever you do on your computer and then passes it on to the spy. However, there are anti-spyware softwares available which can be used to counter such spyware.

So, the advent of online credit card usage facility is a boon to us. However, you must exercise caution when making online credit card payments e.g. don't access your bank accounts or make online credit card payments from internet cafes (unless you are absolutely sure about the credentials of the internet cafe).

Labels: business credit card, credit card, online

A lot of people just look at low interest credit cards when they are looking to get a credit card for themselves. The credit card suppliers too advertise low interest credit cards more that any other kind of credit cards. However, should low interest credit cards be the only ones on your list when you are hunting for a credit card? Probably not. For some people, interest rate or the APR is probably the most important thing to look for when selecting a credit card. However, that doesn't hold good for everyone. Low interest credit cards are good and should surely be on your list, but APR is not the only thing to look for.

Let's start with understanding what an APR (annual percentage rate) is and where its importance lies. APR is simply the interest rate that is used to calculate interest on the balance in your credit account with the credit card supplier. There is no interest charge if you make the full payment of your credit card bill (by the due date). However, in case of a partial payment, you will need to pay an interest on whatever you owe the credit card supplier. The APR is backward calculated to get a monthly rate and the same is applied on your balance to calculate the interest for the applicable period.

That means, people who are not sure about being able to pay the full amount, every time, should surely look for low interest credit cards. A low interest credit card helps in reducing your total outgo by curtailing the interest you pay on your balance. So, low interest credit cards help in slowing down the rate at which your credit card debt builds up. Thus low interest credit cards are surely important for a particular group of people, as stated above.

Besides this group, there are others who don't really need low interest credit cards. These people are capable of (and intend to) pay off their credit card bill in full every month. Their purpose in using a credit card is convenience and other benefits associated with the credit cards. So, be it low interest credit cards or high interest ones; it really doesn't matter for them.

So the need for low interest credit cards is more felt by a particular group of people. However, even if you go for a low interest credit card, you need to pit the various low interest credit cards against each other (vis-a-vis the other benefits they offer) and then select the low interest credit card that is best suited to your needs.

So, first you need to evaluate whether you need to go only for low interest credit cards and then select the low interest credit card that fulfills your needs. After all, you don't go hunting for a credit card everyday.

Labels: business credit card, credit cards, interest, low

'Yes' - is the answer that's comes out almost immediately. That is true at least for most businesses (especially small businesses). Before we delve deeper into how business credit cards are helpful, let's try and understand what a business credit card is.

Put simply, a business credit card is a credit card that is owned by a business and not an individual. To understand this better, you can simply draw an analogy between the business credit cards and business bank accounts, which are in the name of the business as well. Other than that, business credit cards work in pretty much the same fashion as the personal credit cards; with a few exceptions. These exceptions are in the form of flexibility in credit limit, low APRs and some other additional benefits that are available to business credit cards only.

Even from just that, business credit cards seem a good proposition. However, business credit cards would be attractive even without those benefits because the main benefit lies elsewhere. The big-big benefit from a business credit card is realized in terms of business expense accounting.

For most small businesses, business expense accounting is a big overhead. With business credit cards, this is handled very easily - you just have to ensure that you make all your business expenses on your business credit card and let the personal expenses be on the personal credit card i.e. segregation of business and personal expenses is all you need to do. So the bill for your business credit card will have all the business expenses on it and you wouldn't need to collate all the various bills or sort out the items from your personal credit card bill. The key here is to make sure that you use your business credit card for all your business expenses (or as much as you can).

Moreover, a lot of business credit card suppliers realize this need of small business and even organize the business credit card bills in a way that meets the accounting requirements of these businesses. So mostly, they will appropriately group the expenses on the business credit card bill so as to facilitate business expense accounting.

In fact, some of the business credit card suppliers go to an extent of providing the bills in a format that can be downloaded and exported to an accounting system i.e. you don't need to enter the data manually in your accounting system. In case the format is not suitable for your accounting system, you can hire a software professional to write a small quick program to convert it into a suitable format.

Thus just one reason - 'facilitation of business expense accounting', is enough to support the case of small business credit cards.

Labels: business, business credit card, card, credit, helpful

Is 'credit card debt counseling' really beneficial?

Not everyone believes that credit card debt counseling is beneficial and there are various reasons for that. Some people just read articles in the newspapers or find advice on the internet and take that as the final thing. So they don't feel the need for credit card debt counseling. Some others feel that credit card debt counseling companies are just trying to make quick money by telling you the obvious i.e. by telling you something that is being advertised everywhere.

However, the most important reason arises from the fact that not all credit card debt counseling companies are genuine and of those that are genuine, not all credit card debt counseling companies provide good advice. So, choosing a proper credit card debt counseling company becomes a critical factor in determining the success of credit card debt counseling. Always go for a reputable credit card debt counseling company, even if their fee is a bit higher.

Remember that a proper credit card debt counseling can help you in not just eliminating your credit card debt, but eliminating your credit card debt in a way that is so cost effective as to more than offset the fee credit card debt counseling company is charging you.

Moreover, proper credit card debt counseling can save you a lot of time and energy that you would have otherwise spend in studying all about credit card debt, gathering information about various credit card debt elimination measures and comparing these measures.

Further, these credit card debt counseling companies can present more than one solution to you from which you can choose whatever appeals the most to you. These credit card debt counseling agencies can also get your credit card debt settled much quicker than if you were trying to do it all by yourself (and without any credit card debt counseling). Also, credit card debt counseling could bring to light things which you would not have been able to see e.g. risks with the approach you were thinking to adopt or a futuristic view of things.

Moreover, a person who earns his/her bread by practicing credit card debt counseling as a profession, would know the tricks of the trade which no one else would even have an inkling to e.g. pitfalls of a particular debt consolidation offer, or advantages of another offer etc.

There is no doubt with regards to the benefits that credit card debt counseling can bring to you. However, you need to be careful and avoid the fraudsters and pick up someone who has a good reputation.

Labels: business credit card, counseling, credit card, debt

What is 'Credit card debt consolidation'?

'Credit card debt consolidation' is a phrase that you must have come across many times. There are hundreds of sites with advice on credit card debt consolidation. Every now and then your favorite newspaper will also contain an article or advise on credit card debt consolidation. TV channels host discussions on credit card debt consolidation. Moreover, there are numerous consultants and companies that provide professional advice on credit card debt consolidation. So what is this "Credit card debt consolidation" that everyone is talking about? Why is it such an important topic?

"Credit card debt consolidation" refers to consolidation of the debt on various credit cards into a single credit card (or a couple of credit cards). Generally, you move from a higher APR credit card to a lower APR one. You might ask 'why?' If you look into how the vicious circle of credit card debt works, you will immediately understand the logic behind that.

Credit card debt grows in 2 ways. One is due to addition of new debt on account of fresh spends on your credit card and the second is due to addition of interest charges to the existing credit card debt. The first one is due to your use of credit card but the second one is due to interest charges which are calculated on the basis of the interest rate or the APR applicable to your credit card. So a lower APR rate means that your credit card debt will grow at a slower pace and hence switching over to a card with lower APR makes perfect sense.

The process of credit card debt consolidation is also referred to as balance transfer process (you transfer the balance or debt from one credit card to another).The credit card debt consolidation (or balance transfer) offers are made even more attractive by the credit card suppliers by associating various benefits with them.

The simple logic behind offering these benefits is the fact that such a customer would be defecting from one of their competitors. The biggest benefit offered by these credit card suppliers is 0% interest on balance transfers (or credit card debt consolidation). This 0% APR is generally applicable for a short period of time i.e. 3-6 months, after which the standard APR is applicable.

Other credit card debt consolidation offers include things like interest free purchase for a short period, reward points, etc. These credit card debt consolidation offers make the exercise of credit card debt consolidation even more logical and meaningful.

Credit card debt consolidation seems to be a good way of tackling the problem of credit card debt and that is the reason why there is so much of discussion on the topic of Credit card debt consolidation.

Labels: business credit card, consolidation, credit card, debt

Though a lot of people are comfortable with going forward with credit card debt management all by themselves, not everyone is. There are people who don’t really want to tread into the territory of financial issues (credit card debt management included).

Such people generally prefer going to debt assistance companies for advice on credit card debt management or for getting the credit card debt management done through them. However, even before we talk further on this topic of credit card debt management, it's imperative to understand that any external person or agency can only do a proper credit card debt management for you if you strictly follow the advice/guidelines that they formulate as part of credit card debt management. These credit card debt management guidelines are generally related to controlling your spending (which basically means perseverance and contentment).

Going to a credit card debt management company or a credit card debt management advisor/professional is not meant only for people who are foreign to financial topics but is sometimes fruitful for other people too (who are going with credit card debt management all by themselves).

This arises from the fact that these credit card debt management professionals (as any professional) would have more knowledge in that field than anyone else that is not from that field/profession.

So, firstly, you wouldn't know all the tips and tricks that the credit card debt management professional would know (and in fact this is something that you cannot read and learn overnight).

And secondly, it will save you a lot of time; because the person who practices credit card debt management as a profession would know about all the latest offers etc that are available in the market e.g. balance transfer offers etc (and hence you don't need to go looking for all this stuff all by yourself).

All in all, a credit card debt management professional can help get you a better deal that might more than compensate for the fee charged by that professional. If you look around you will find that there are hordes of companies and professionals offering credit card debt management services.

However, the key here is that you choose someone whose credentials are already established (or who can prove his credentials to you). One good way of selecting a credit card debt management company/ professional is to check with a friend or someone from your family, if they have used any such service in recent times. After all, references are the best way of building trust.

Labels: business credit card, credit card, debt, management

Credit card debt consolidation is regarded as the first step towards getting rid of credit card debt. Credit card debt consolidation loan is one of the ways of consolidating credit card debt. Besides, credit card debt consolidation loan, you can also go for balance transfer to another credit card. In fact, due to the publicity by credit card suppliers, balance transfers seem to be more talked about than credit card debt consolidation loan. Some people kind of forget about credit card debt consolidation loan being available as a method of credit card debt consolidation. However, credit card debt consolidation loan too is important to consider when going for credit card debt consolidation.

So what do we mean by credit card debt consolidation loan?

Put simply, credit card debt consolidation loan is a low interest loan that you apply for with a bank or financial institution in order to clear off your high interest credit card debt. So credit card debt consolidation loan too is based on same principle as balance transfers i.e. moving from one or more high interest debts to a low interest one. The credit card debt consolidation loan has to be paid back in monthly installments and as per the terms and conditions agreed between you and the dispenser of credit card debt consolidation loan.

Credit card debt consolidation loan, in general terms, is an unsecured loan i.e. doesn't require you to pledge any security. However, if you have a really bad credit history and you want go for credit card debt settlement using credit card debt consolidation loan, the credit card debt consolidation loan will take the form of a secured credit card debt consolidation loan.

This type of credit card debt consolidation loan requires you to pledge a security e.g. the home owned by you or something else that has a value which is comparable to your credit card debt consolidation loan amount. So, worse the credit rating, the more difficult it is to get a credit card debt consolidation loan.

Though balance transfers and credit card debt consolidation loans have the same objective behind them, the credit card debt consolidation loans are sometimes considered better because you end up closing most of your credit card accounts which have been the main culprit in landing you in this difficult situation.

However, balance transfers have their own advantages which are not available with credit card debt consolidation loans. Choosing between credit card debt consolidation loan and balance transfer is really a matter of personal choice.

Labels: business credit card, consolidation, credit card, debt, loan

We know that it's good to consolidate credit card debt (at least that is what we keep hearing from everyone). In fact, the first step towards addressing the problem of credit card debt is to consolidate credit card debt. Now, what do you do to consolidate credit card debt? Should you just go with that attractive ad in the newspaper that says '... the lowest APR in the town is available here'?

The first thing, really, is to keep your eyes and ears open. There are always a number of offers available for you to choose from. The credit card suppliers keep coming with new and more attractive offers asking you to consolidate credit card debt with them. However, you must note that the APR quoted in bold, e.g. 0% APR, is applicable only for a short term (3-9 months). The long term (or the standard) APR is different. So, when you go looking for a credit card to consolidate credit card debt, you must be keenly looking for these 3 things (in terms of APR) - introductory APR, introductory APR period and the standard APR. Let's see how each one is important.

Introductory APR is probably the most attractive thing to look for when you are looking to consolidate credit card debt. If you consolidate credit card debt to a card that has a low introductory APR e.g. 0%, the first thing you get is a breather/relief in terms of the rate at which your credit card debt has been growing.

Based on how long that 0% APR period is (generally you will look to consolidate credit card debt with a credit card supplier who offers 0% initial APR), you will at least be able to temporarily break the growth rate of your credit card debt. More the introductory period, the better it is.

However, you should not ignore the standard APR when you consolidate credit card debt. This is the interest rate that will be applied to your balance after the expiry of the introductory low APR period that was given to lure you to consolidate credit card debt with that credit card supplier. If the standard APR is too high and you know that you will not be able to clear off the entire credit card debt during the low APR period, that credit card is probably not the best for you to consolidate credit card debt to.

However, if you think that you will be able to clear off the entire credit card debt during that period, you can make some compromises on the standard APR of the credit card to which you consolidate credit card debt.

The card that synchronizes with your current and future financial position (and needs), is the one you should consolidate credit card debt to.

Labels: business credit card, consolidate, debt

Are you wanting to apply for a new credit card but feeling hesitant to perform the credit card application online? If so, you need not be concerned. Advances in the technology of secure e-commerce have made online credit card applications literally safer than filling out a paper application and mailing it through the US Postal Service. Here s why.

SSL Technology

First, banking institutions that offer online credit card applications use the most up-to-date technology to ensure that their web sites are protected against intrusion and data theft. This technology is known as SSL, which stands for Secure Sockets Layer, a transmission protocol that encrypts any data sent between the bank and your computer, such as all the personal information you need to fill out when applying for a credit card.

Encryption

What exactly is encryption? It is a sophisticated mathematical process that disguises data by altering the bits of information in ways that are undecipherable to others. You have probably done encryption in your childhood days when you sent messages to friends in school using a secret language such as reversing the alphabet, so that A meant Z, and Z meant A. That early game was actually a form of encryption.

In the early days of the Internet, encryption used 40-bits, which meant that a character of data could be transformed into another character in any one of 2 to the 40th power ways, which is approximately 1 trillion ways. But as large as that number is, computer security experts realized that people, including criminals, who had access to very powerful computers could crack 40-bit encryption in a short period of time, ranging from a few days to a few seconds depending on the power of their computers.

Therefore, in the late 1990s, a much more powerful type of encryption was introduced using 128 bits. This means that each character of data can be altered in any of 2 to the 128th power ways, a code which represents an astronomical number of possible variations that would take on the order of 20,000 years to break using today s fastest computers. The use of 128-bit encryption has thus completely altered the safety of data.

Two Encryption Keys Required

Furthermore, today s encryption methods use what is called the two-key algorithm whereby the sending computer and the receiving computer use both a public key and a private key to encrypt and then decrypt any data exchanged between them. The process is complex to explain, but suffice it to say that the two-key approach makes it impossible for all intents and purposes for an outside party such as a criminal to capture and interpret any data transmitted between two computers over an Internet site using SSL technology because the criminals will not have both keys.

Online Credit Card Applications - No Safer Method

In short, SSL technology virtually guarantees that if you fill out a credit card application over the Internet using a bank s secure application page, all your personal information can never be stolen or broken into.

Compare this to a paper credit card application which you send via the US Post Office. Think about how many mailboxes are broken into each year and how many pieces of mail are somehow lost and you will now realize that applying for a credit card over the Internet is actually the most secure method you can find.

So if you want or need a new credit card in order to expand your credit capabilities or to get bonus points or travel rewards, the best thing to do is to go to one of the web sites that allows you to compare credit card offers, then click through to the secure web site for the bank you choose to fill out their online credit card application. You will also benefit from this because your application will be processed within minutes and you can often get an immediate approval rather than waiting weeks as you do when you mail in a paper application.

All in all, rest assured that computer security experts are working hard to protect consumers from crime and identity theft as Internet banking, e-commerce, and credit card payments are increasingly processed online.

By Ed Vegliante

Labels: applications, business credit card, credit card, online

If you ve done any searching on the Internet for information pertaining to Credit Repair, you ve no doubt found that there s a great deal available. Unfortunately, there s also a lot of misinformation as well.

Let s take a look at some of the most common misstatements you ll come across and examine them in detail.

MYTH #1

Credit repair doesn't work!

While it s true that credit repair is more art than science that s not to say it doesn t work. If you undertake to repair your bad credit score, there s never any guarantee you can restore it to perfect status. But sometimes you can, and in almost every case you can at least affect some improvement in your credit score, and often major improvement at that!

First of all, credit reports for the most part are filled with errors. While there seems to be no general agreement, it s estimated that anywhere from 1/3 (Attorney General of NY) to as many as 90% (Charles Givens Organization) of credit reports contain errors.

Removal of erroneous negative information alone will go a great way toward improving your credit score. But there s more to the story, which brings us to myth #2.

MYTH #2

Negative information that can be verified cannot be removed

This is one of those statements that are almost true, but taken literally is misleading. As is often the case, the inclusion (or exclusion) of one seemingly small word makes the difference in a truthful statement, and one that s not (or not necessarily) accurate.

Let s take an analogy. Suppose it s the middle of summer, and your grass has grown unusually high. Let s also suppose that you own a lawn mower, it s in good working condition, and has plenty of gasoline in the tank.

Now let s say that you re sitting on your couch and say to yourself My grass will get cut today because I CAN go outdoors anytime and cut it.

So will your grass get cut? Not necessarily! Just because you can go outdoors and cut your grass doesn t mean it s going to get done. You can repeat this statement to yourself all day long, but your grass isn t going to get cut until you actually go outside and DO it!

Likewise, because a negative item on your credit report can be verified doesn t mean it will be. According to the Fair Credit Reporting Act, a credit bureau must investigate and verify within a reasonable period of time any item in your credit report that you dispute. If the information is found to be inaccurate or can no longer be verified, the consumer reporting agency shall promptly delete such information.

Now in this context can be verified clearly means verified by the credit bureau s investigation of the item, and the reasonable period of time has been established (by subsequent rulings) to be 30 days. So if the credit bureau doesn t complete its investigation of the disputed information within 30 days, or if for some reason the creditor fails to respond and verify the information, by law the disputed data must be deleted from your credit file.

MYTH #3

Credit repair agencies are all scams

It s true that there ARE a good many unscrupulous credit repair agencies. But there are also some corrupt police officers, lawyers, and politicians. Yet we don t label all members of these professions as corrupt.

If you re looking for help to repair your bad credit you do need to be careful and do your homework when selecting an agency. There are many honest credit repair companies that are not scams. But beware of any who make promises as to results!

As stated above, it s not always possible to restore your bad credit history to perfect status, and no one should be making any promises to that effect. Beware of any company that does! And while an agency will in all likelihood be able to improve your credit score, if any agency makes this promise, be sure it s accompanied by a money back guarantee. Otherwise, look elsewhere. And don t forget to ask for references and follow up on them.

MYTH #4

You have to hire a credit repair agency or lawyer to fix your credit

Going back to the analogy above, you can always hire someone else to cut your grass (or to do just about anything else) for your. And if fixing your own credit seems an intimidating task, you might prefer to hire a credit repair company to do it.

But it s not really necessary that you do. First of all, credit repair agencies aren t cheap. You can expect to pay anywhere from $2,500 to $5,000 or more. Plus, you ll be paying a high fee for something you can just as well do for yourself, which brings us to myth #5.

MYTH #5

It s too difficult or complicated to fix your own credit

A credit repair company isn t going to do anything for you that you can t do for yourself! Credit repair isn t rocket science. It involves writing letters to credit bureaus and to creditors. If you re able to write a letter, put a stamp on it and mail it, you re able to repair your own credit.

Given the proper knowledge, you can fix your own credit

This statement IS true! You re entirely able to repair your own credit, given the proper knowledge. And given the proper knowledge, you can fix your own car, repair your own plumbing, or for that matter perform brain surgery.

While fixing your own credit is relatively simple and straightforward, you do have to know how to go about it. Essentially it involves getting a copy of your credit report and writing letters to the 3 major credit bureaus disputing negative information in your file.

But there s a right way and a wrong way to do it. In fact even some of the high priced credit repair agencies get it wrong, which brings us to myth #6.

MYTH #6

You improve your credit score by getting all the negative items on your credit report removed

It s possible to get all the negative items on your credit report removed and actually see you credit score go DOWN as a result! The reason? Your credit score depends on a number of factors, one of which is the length of your credit history. In some cases, you re better off to NOT remove some negative items on your report, especially if they involve a few late payments in the distant past, but show timely payments during recent years.

While the nuts and bolts of credit repair is beyond the scope of this report, there are a number of sources of good information online. If you have bad credit, there are 3 major points you should keep in mind:

1. If you have a bad credit history, it can (and probably will) cost you many tens of thousands of dollars in higher loan interest over the years, as you ll be charged much higher rates than you would be with good credit. If your credit is really bad, you may not be able to get a loan at all!

2. The situation isn t hopeless! In almost every case you CAN improve your credit score. You can easily do it yourself or find a reputable agency to do it for you. But in any case, GET IT DONE!

3. If you choose to repair your own credit (recommended) there are good books and eBooks available that can walk through the process. Get hold of one and get started NOW!

By: Jim Eastman

Labels: business credit card, credit, myths, repair

If you haven't had the credit limit cut on your credit card recently, count yourself lucky. Risk-averse card issuers are getting slash happy. And while many cardholders gripe that such cuts slice razor-close to their balance amounts, for an unfortunate few the cuts go far deeper: below what they currently owe.

Under different circumstances, David Chaplin-Loebell wouldn't have minded that American Express cut his unlimited credit line to just $5,000. Except that when AmEx reduced his line in October, he had an outstanding balance of $10,000. "I found out by having a business purchase declined," he says. Repeated calls to AmEx failed to yield an answer about why the cut was made. Chaplin-Loebell, who lives in Philadelphia, is now paying the balance under his regular card terms, and presumes the line will free up for new purchases once he's below the limit. "For now, they've essentially frozen the account," he says, leaving him to juggle business expenses on his personal cards. American Express did not respond to requests for comment.

Nasty as it may be, the practice of cutting credit lines below the balance is legal -- at least, for now, says Chi Chi Wu, a staff attorney for the National Consumer Law Center, a consumer advocacy group. Federal Reserve rules requiring lenders to give cardholders 45 days notice before reducing a credit line to the point that it would trigger penalties won't go into effect until July 2010. "[Until] then, there are no federal protections," says Wu.

Congress is also hoping to rein in unscrupulous credit-card practices. In February, Sen. Chris Dodd (D., Conn.), chairman of the U.S. Senate Committee on Banking, Housing and Urban Affairs, reintroduced the Credit CARD Act, which among other things, offers cardholder protections like the ability to pay under the existing terms if an account is closed and requiring issuers to lower penalty rates within six months once a cardholder gets back on track with payments. Earlier this month, the House Committee on Financial Services chairman Barney Frank, announced a series of four hearings that will include discussions about credit card reform.

SmartMoney.com contacted both committees to see if they were aware of issuers' practice of cutting credit lines below balances, and if they planned to address it in upcoming hearings. Neither responded to requests for comment.

The motivation among issuers to make such deep cuts that they plunge below a cardholder's balance amount isn't very clear. Usually, issuers cut credit lines to reduce outstanding liabilities -- they sometimes may even chase the balance on riskier accounts with further limit cuts as cardholders pay down debts, explains Bill Carcache, an analyst with investment bank Fox-Pitt Kelton. But cutting below the balance doesn't reduce an issuer's liability: The cardholder still owes the outstanding debt.

One possibility is that this is yet another attempt by card issuers to get consumers to close their accounts (while bringing in a little fee income in the short term), says Dennis Moroney, research director and senior analyst for consulting firm Tower Group. "I can't rationalize in my mind what other motivation there would be," he says.

Paul Pensabene of Saratoga Springs, N.Y., received a statement from HSBC on Dec. 8 that said he had a $359.99 balance and remaining available credit of $8,640. But when he went online to pay the bill several days later, his online account showed that same balance put him over his newly-reduced credit line of $300. And that didn't include the $35 over-limit fee. Pensabene grappled with customer service until they agreed to remove the fee, and then paid the balance in full. "All I could think was, 'Good lord, what if this is happening to someone that couldn't pay their balance off in one shot?" he says. "They'd end up in default with these fees piling up."

HSBC declined to comment on individual cardholder accounts. Spokeswoman Cindy Savio says the issuer has tightened its credit standards based on the economy. "As we have previously stated, in an effort to reduce credit risk and refine strategies for our card business, we have tightened credit standards, reduced or canceled higher risk credit lines, and closed a number of inactive accounts," she says.

While the fees, frozen accounts and default interest rates resulting from credit-line cuts can sting your finances, they can do some serious long-term damage to your credit score. Your credit utilization ratio -- the total amount of debt you owe in relation to the amount of credit available to you -- accounts for roughly 30% of your score. A credit line cut has the potential to decrease your score by 50 points or more if you don't have much other available credit, says Craig Watts, spokesman for FICO, the company that calculates and issues the credit score that most lenders use.

Even cuts that are close to the balance have the potential to devastate if they're not caught quickly. Luckily for Carol Gressett of Decatur, Miss., she noticed the reduction in her Discover-branded Sam's Club card limit just days after it happened. The limit was cut to within $100 of her $3,000 balance. The official letter notifying her of the reduction arrived three weeks later. "We could easily have gone over if I hadn't been paying attention," she says.

(A Discover spokesperson says GE Money issues the cards, and so is responsible for managing credit lines. GE Money did not respond to requests for comment.)

By Kelli B. Grant

Labels: business credit, business credit card, card, cards, credit, limit

Deciding to apply for a credit card is not a decision you should take lightly. Many stores try to get you to impulsively apply at the register, and you should never agree. Credit cards can affect your financial situation for years so you should certainly think before you act. If you want to apply for a credit card, there are a few steps you should take beforehand.

Evaluation

Before you apply for a credit card, you should do an evaluation of your finances. Get a free credit report and make sure everything is accurate. You will want to know what your credit score is so you will know which cards to look at when you apply for a credit card. If there is anything unusual or incorrect on your credit report, deal with it immediately. Many people never look at their credit report, and therefore have no idea what may or may not be on it. It is important to clear up anything incorrect on your credit report before you apply for a credit card.

Research

After getting everything strait with your credit report, you should begin researching. Research cards that fit your credit score. Make a list of important characteristics you want in a credit card. Look for the best deals in several areas. Before you apply for a credit card, you should make sure you understand everything about the card and the company's policies. Look at the interest rates, rewards programs, and other characteristics.

Be wary of great introductory offers. When you apply for a credit card, many companies will offer you fantastic introductory deals. It is great to take advantage of these deals, however you should be sure that the terms won't change unexpectedly after the introductory offer time period is over. For example, you will need to know what the interest rate will be after the offer before you apply for a credit card.

Conclusion

Once you find several credit cards with terms that you understand and like, categorize them by your choice. Apply to one at a time. If you only need one card and apply to three, you run the chance of getting approved for all three. This will not only reflect on your credit report, but also give you the inconvenience of canceling two of them. So, be patient and wait for a response.

When you apply for a credit card, you are vowing that you will be responsible financially. Deciding to apply for a credit card means that you know you will be able to pay the balance off in a timely manner. If you are not sure of your ability to pay, you should never apply for a credit card. Be responsible, examine, and research before applying!

By Morgan Hamilton

Labels: apply, business credit card, card, credit, how, tips

If you're like a lot of folks, you may have recently received a "Dear Valued Customer" letter in the mail from your credit card company. No, you aren't being fired, but it might feel like it.

If you have an affiliate card issued through one of the big banks, it starts like this: "This challenging business climate has led Citibank, the issuer of XYZ Gold MasterCard....to notify us [that] they are making changes to the terms of many Citibank credit card offerings ... including the XYZ MasterCard product."

Uh-oh. Here it comes.

The enclosed material, one of those multi-page, fine-print deals, starts off with "the Changes." It tells you that the APR, minimum-finance charges, transaction fees for foreign purchases, and "other fees" have changed, and that "supplemental pricing information" appears in "your new card agreement [which] follows this notice."

Changed from what to what? Unless you have the last version of this document handy, you probably won't know. Like too many things in personal finance, you don't know what you don't know.

You'll find a lot of these changes these days. First, because of the banking crisis, cash-strapped banks are scrounging for cash wherever they can. Second, new federal legislation that takes effect in 2010 bans universal default, double-cycle billing, and a host of other evils. That's the good news. The bad: This is driving banks to get ahead of the potential $12 billion in lost revenue.

So here's what to do:

Call an agent: Pick up the phone immediately and find a live agent willing to explain the changes.

Get a comparison: Have the agent clarify what changed, not just what your card's terms are today or after the change. If your effective APR went from "prime plus 14.08%" to "prime plus 17.99%," have them explain that and also what the resulting rate actually is. For any changed fees, ask them what the new and old fees are. Have them do an example if necessary to illustrate total cost.

Be persistent: When they're done, ask if there's anything else you should know. I found out that the "penalty period" for the higher default APR if you miss a payment had increased from six months to 12 months. Hard to find in the fine print, and it didn't come with the first explanation.

Pay your balances in full and on time: The adverse changes only applied to balances carried and/or a late payment; if you pay in full and on time you won't be affected. You might consider setting up auto-pay to avoid late payments.

Ask for the good news. These changes all sound like a takeaway; less benefit, more cost. However, the issuer may also offer attractive balance transfers, five months for 1.99% with a 3% transfer fee or 3.99% for 10 months. Some issuers may offer other benefits anticipating negative customer reactions from changes in terms.

Protecting what you have and tracking changes in terms are important in managing your credit and your finances in general. And incidentally, the banks and card issuers that do these changes well -- raising cash without angering customers -- stand to come out ahead.

Jennifer Openshaw, author of " The Millionaire Zone," is co-founder and president of WeSeed, whose mission is to enable people to discover the stock market in their everyday lives through their passions, their jobs and the brands they know and love. She's been seen on Oprah, Dr. Phil, The Today Show, CNN, CNBC, and Nightline. You can find her on Twitter @jopenshaw or on Facebook.

Source by MarketWatch http://finance.yahoo.com/banking-budgeting/article/106702/The-15-Minute-Tip-Fine-Print-Pitfalls

Labels: business credit card

When the problems are numerous, friends are few. These words are very apt when it comes to the situation of bad credit. Fulfilling your cash needs when having a bad credit history, it may be difficult to get the support you want. Getting external help will still suit you as the money is available without any hassle through bad credit loans.

The borrowers who have a credit score which is lower than 580 in the FICO report may be suffering from this problem due to various factors. It can be arrears, defaults, missed repayments or CCJs that have caused this problem. But the borrowers still deserve a chance to avail these loans for their needs.

Through these loans, the borrowers can choose whichever option that they like out of the secured and the unsecured form, according to suitability. The loan form also depends upon the ability of the borrower to pledge collateral with the lender for the money. If a bigger amount is required by the borrowers, they can take up the secured form by pledging an asset with the lenders. Amounts can be borrowed within the range of £5000-£75000 for a term of 5-25 years. The home, car or any asset of the borrower can be pledged as collateral.

Borrowers who need smaller amount can also take up money and that too without pledging any assets. This is possible through unsecured form of these loans. Money that is obtainable by the borrowers lies in the range of £1000-£25000 and has to be repaid in a term of 6 months to 10 years. Tenants and non-homeowners can also take up these loans for their needs easily.

Adverse credit history of borrowers may entail a higher rate of interest. But with the help of online research and comparison, the borrowers can take up low rate deals with the help of comparison of the loan quotes easily.

Bad credit loans are a great opportunity for the borrowers to avail money at the most needful times. It is a great respite for borrowers stuck in bad credit.

By Simon Tauffel

Labels: bad credit, business credit card, loans

Some credit cardholders had a rough ride in 2008. As banks grappled with rising charge-offs and default rates, many reined in risk by restricting access to credit and adjusting existing accounts.

In fact, about 60 percent of domestic banks say they tightened lending standards on credit cards during the previous three months, according to the October senior loan officer survey from the Federal Reserve.

Unfortunately, the credit forecast is mixed. For 2009, experts predict mostly cloudy skies with a chance of silver lining.

Keith Leggett, senior economist with the American Bankers Association, says that "2009 is not going to a pretty year." With the unemployment rate expected to rise, he believes issuers will remain risk-averse.

"I think what you're going to see (are) tighter standards being applied to get new credit," Leggett says. "You will see lenders continuing to scale back their exposure to existing lines of credit."

Expectations

Here's a look at what experts say is coming and what you should do about it.

1. Minimum credit scores will rise

"Underwriting is a moving target," says Curtis Arnold, founder of CardRatings.com. A year ago, Arnold said consumers needed FICO scores of 700 or better to get the best credit card rates and limits; now he says 730 is the minimum. "That target is going to continue to change and tick up going into the first half of next year."

At the lower end of the spectrum, "folks that may have qualified this year or last year for a subprime card with a 575 or 600, this time next year may not qualify for a card at all."

According to the Federal Reserve's senior loan officer survey, about 50 percent of domestic banks indicated they had raised the minimum credit score needed for credit cards, and nearly 60 percent approved fewer applications for people who didn't satisfy the credit scoring requirement.

Your best money move: Take steps to improve your credit score. Check your free credit reports at www.annualcreditreport.com and dispute errors that may be weighing down your score. Apply for credit only as needed.

2. Reform measures coming

The Federal Reserve, the Office of Thrift Supervision and the National Credit Union Administration issued credit card reforms in late December that take effect in July 2010. The regulations crack down on universal default, double-cycle billing and hiking rates on existing balances.

President-elect Barack Obama also has made reforms part of his agenda, and there are bills pending in Congress.

Arnold fears that such added regulation may bring about the end of zero-percent balance transfer offers and teaser rates on credit cards if issuers react by making credit more expensive for everyone.

Promotional offers already aren't as generous as they were a year ago. "I'm predicting in 2009 that this trend will continue, and it could exacerbate to the point that we just never see any zero-percent offers anymore, for example," Arnold says.

We also may see some fees change and new ones implemented under the new regulations, says Ken Paterson, director of the Credit Advisory Service at Mercator Advisory Group, a research firm for the consumer payments industry in Maynard, Mass.

Your best money move: If promotional offers do go extinct, Arnold suggests trying balance transfer cards that offer a low rate for the life of the loan. Another option is getting a card from a smaller bank or credit union, which tend to offer more consumer-friendly terms. Use our comparison tool to find the best credit card.

3. A sustained squeeze on existing cardholders

"I think credit lines are going to continue to be cut," Arnold says. "I think that's a trend that's going to continue as issuers try to hedge their risk." He predicts that issuers also will keep raising rates, closing unused accounts and increasing underwriting standards.

As of Nov. 19, the average interest rate charged on all cards was 12 percent for fixed-rate cards and 11.27 percent for all cards. However, banks aren't hesitating to raise rates on people with imperfect credit. Major card issuers indicated to Bankrate in October that they are placing applications and existing accounts under heavier scrutiny for risk and closing inactive accounts deemed too risky.

About 60 percent of U.S. banks reported slashing lines for nonprime borrowers during the past three months, and 20 percent reduced limits for prime cardholders, according to the senior loan officer survey.

Having lower credit limits can make cardholders appear closer to being maxed out because the balance uses up more of the available credit. The result can be a lower credit score, which can invite changes to other accounts and make loans more expensive.

On a positive note, smaller credit lines may help curtail spending temptations.

Your best money move: Don't invite scrutiny. Pay on time, reduce debt and keep statement balances below 30 percent of the credit limit. Use emergency-only cards once every six months to keep them active, and pay them off. Read every mailing from your issuer and complain if you notice an adverse adjustment. If you plan to retaliate by closing an account, understand what canceling a card does to your credit score.

4. Rewards programs may be scaled back

While rewards programs are expected to stick around, issuers may scale back rebates to consumers if legislation passes that would reduce interchange fees collected on transactions. Interchange fees are paid by a merchant's bank to a customer's bank when someone uses a payment card. They help fund the rewards programs of card issuers.

"I do think there's going to be some tinkering around the promotional categories, maybe scaling back on some of the cash-back categories where, say, gasoline or some other purchase has been incented higher," Paterson says.

He says the worst-case scenario would be a situation where issuers start devaluing points, just like airline rewards programs have done with miles. Consumers would have to spend more to earn the same rewards. But it's too early to tell whether that will happen with non-airline rewards cards.

Your best money move: If you have points or miles you can cash in, do so sooner rather later. As a consumer, you have little recourse if the issuer decides to abolish the rewards program or change the terms.

5. Fewer direct mail solicitations

Consumers are expected to have received 1 billion fewer credit card solicitations this year than in 2007, according to projections from Mail Monitor, a credit card acquisition tracking service from Synovate, the market research arm of Aegis Group PLC.

Happily for consumers who find themselves annoyed or tempted by credit card offers, economist Leggett expects the downward trend to continue. "This is not the right time to be going out aggressively pursuing customers," he says.

As many as 70 percent of issuers are scaling back efforts to acquire cardholders, according to a July 2008 report from Javelin Strategy & Research in Pleasanton, Calif.

Consumers still might get offers from banks where they already have accounts.

Paterson speculates that banking relationships may take "a more important role in securing credit cards." Banks have more information on existing customers and may be more willing to extend credit to them.

Banks already are stepping up efforts to communicate with their customer base, albeit for other reasons. They sent 42 percent more direct-mail solicitations to their customers in the third quarter of 2008 versus the second quarter, according to a report from Chicago-based Mintel Comperemedia.

Your best money move: If you don't want to receive credit card offers, opt out of them at OptOutPrescreen.com. You can opt out for five years, or permanently if you mail in a form.

Other smart moves

• Build a savings cushion. Financial crises happen. Don't let a job loss or vehicular breakdown send you reaching for your credit cards. They're an expensive way to finance emergencies, and issuers may penalize you for piling on thousands of dollars in debt all of a sudden.
  Pad your safety cushion by saving three to six months' worth of living expenses in a liquid savings account. If that goal sounds unrealistic, try this suggestion: "Start by socking away 10 percent of each paycheck. You'll really never miss it, and yet at the end of a year you'll have a little more than one month's income in the bank," says Gail Cunningham, spokeswoman for the National Foundation for Credit Counseling, or NFCC, in Silver Spring, Md.
  
• Don't wait to get help. If you are falling behind on your payments, get help sooner rather than later.
  
  A temporary financial problem, such as a job loss, is a good reason to contact your issuer if you're struggling to make payments. Most have in-house help programs that can lower your interest rate or waive fees for a short period of time, usually three to six months.
  
  Cunningham says that if consumers are experiencing a long-term financial problem, such as a divorce or major medical expense, they might want to contact a credit counseling agency for help. Visit the NFCC's Web site to find a counselor.

Source by Leslie McFadden http://finance.yahoo.com/news/5-smart-creditcard-moves-in-brn-14081638.html

Labels: business credit card, counseling, credit card, smart

Credit cards are wonderful financial tools. They provide comfort and ease of use when purchasing goods. They provide a peace of mind and liability protection. But credit cards can also be a dangerous vicious tool when not used correctly.

Credit card debt is a big problem in the United States. There is something magical about the ability to go to a store find a product that you would like to purchase and then go to the cashier and be able to walk away from the store with that product by online swiping and plastic card and signing a small piece of paper. Using credit cards can be too easy which can be risky as consumers lose touch with money and with how much they really spend.

The problem with credit card being too easy is that in contradiction to cash which as a tangible feel a credit cards does not. An example would illustrate it. Lets say that you are at a store and would like to buy a product that costs four hundred dollars. If you were to pay in cash you would see in a very visible way the about of money you paid. You will have to count twenty dollar bills and would see how they pile up. This will in turn give you a better understanding and a better feel of how expensive that product is. There are many more bills to count and there are many more notes on the table when buying a four hundred product as opposed to a twenty dollar product.

With credit card this ability to visualize the cost of a product is lost. Regardless of the cost of the product the process is always the same and always takes the same time and requires the same tangible elements. The process is simple the credit card is swiped on a special payment terminal. The terminal then prints a slip on which you have to sign. Once the slip is signed the deal is closed and the charge is put on your card. The only difference between buying a four hundred dollar product and a twenty dollar product is the number printed on the slip which has no tangible visualization.

Using cash allows people to get a feeling of how fast they fun out of money. If you have five hundred dollars in your pocket and you buy a four hundred pocket it is very visual that you are left with not much. For most of us being able to estimate the sum of many small charges on our credit card is very hard. Ask most consumers when they get their credit card monthly statement if they can guess what would the total be and most of them would guess wrong usually assuming it is much less than what it really is.

The first step to solving this problem is awareness. Consumers that are aware of that problem can do many things. They can combine using credit cards when they are really needed and cash in all other times. They can also make sure to login to their credit card online account to see live updated list of charges on their card and the total thus constantly being aware of how many charges they are accumulating on the card.

By Mac Eaton

Labels: bad credit, business credit card, credit, debt, finance, home, loan, money, mortgage

Among the so many varieties of credit cards, one of the most underestimated is the value of a business credit card. Many people do not choose to apply for a business credit card because aside from having a definite target market-the business owners or business executives-it seems to be complicated to use. Although a business credit card has more requirements and has higher interests compared to other types of credit cards there is, contrary to the common conception, t can be very helpful if used properly.

What is a business credit card?

Basically, business credit card is for the business people’s consumption. Compared to the regular credit card, a business credit card has a high limit plus low interest rates. Depending on the manner of choosing, a business credit card may also bring a lot of automatic benefits.

Since it is targeted towards businessmen or those people who are heading towards building a business, a business credit card can definitely benefit these small businesses. A business credit card helps the budding business by extending payments while improving the cash flow. Aside from bearing the image of a dependable credit card, business credit card boasts of having detailed reports and giving quality customer service as its major trademarks.

Aside from having limits and low interest rates, a business credit card provides many alternatives and numerous credit options for small businesses. A business credit card also caters to large corporations that are crafted to aid those people who are starting with their own business to grow while closely monitoring the baseline of credit.

Simplifying business credit cards

It really pays to go to the bank when one applies for a credit card to get the chance to answer all immediate inquiries. But since business credit card is for business people who are always on the go, many business credit card issuers offers online applications for business credit cards. When one applies for a business credit card, there is no need to visit the bank. There is also no need to wait in the queue just to talk to a bank representative.

When you apply business credit card online, all you have to do is to select the business credit card option that would perfectly suit your small business or corporate credit requirements right from the comforts of your home or office. Aside from offering safe, secured, and simple processes that are designed help you take care of your starting business, most business credit cards online offer accessible features for the convenience of the business credit card holder like the online payment and reporting. Customized company logos and access to instant cash are also available on line. Other business credit card online offers detailed reporting features for easy monitoring and access.

Most business credit card applications offer free fee for the first year and no pre-set spending limit or finance charges. Other business credit card offers viable membership rewards program that enables the member to earn points towards travel, merchandise and other rewards for his or her business. Some of these business credit cards offer small businesses a line of credit up to $100,000 at a competitive APR as low as prime + 1.99% for both cash and check purchases; 100% of the line is available as cash and no collateral is required.

The business credit card holder or customer might receive fee-free checks as well as a card to access the account. Everyday savings or exclusive savings, express approvals, no annual fee, up to 5 percent rebates on all qualified purchases, and 0% introductory annual percentage rate (APR) on purchases during first half of the year of card membership are some of the great offers of most business credit cards.

By Michael Harms

Labels: business credit card, business credit cards, worth

They sound sensible, but acting on them can cost you
We've all heard some of them, and we've probably believed more than a few, but living by a credit card myth can cost you a lot of money in fees and hurt your credit rating.

Here are seven of the most pervasive credit card myths to watch out for:

Myth No. 1: Writing 'See ID' on the signature line on the back of your cards will stop a credit card thief cold and absolve you of any liability if a thief uses it.

The Logic: The "Ask for ID" or "See ID" prompt reminds salespeople to confirm that the name on the credit card matches that of the person holding it. And why write your signature in that little white space when it could be copied and used on checks, legal forms or other documents? There are even reports of law enforcement personnel recommending this precaution.

The Reality: An unsigned credit card is invalid, technically, according to the agreements that card issuers have with retailers. Moreover, many clerks don't even check for signatures at all, meaning that they're unlikely to see "See ID" on the back of your card, even if it is there.

If you do give a clerk an unsigned card or one with "See ID" written instead, they're supposed to have you sign the back of the card and check the signature against your driver's license or passport. This may trip up the fraudster a bit -- after all, a thief is unlikely to be able to mimic your signature on command -- but that's only if the cashier bothers to take the time to compare that signature to the one on the driver's license.

So what about the liability issue? Does writing "See ID" absolve you if the card is taken and used? No, because "no matter what's on the back, you're only liable for up to $50 charged when a card is stolen, and some companies waive that for their cardholders," says Lauren Zeichner, an attorney with Consumer's Union. "Writing 'Ask for ID' might encourage a retailer to ask for your ID, but it has no legal bearing."

Myth No. 2: There's no credit limit on your American Express card, so you can buy anything you want.

The Logic: Years of powerful advertising from American Express have probably locked at least one of their messages in your mind: "No preset spending limit." So when the AmEx arrives in the mail, you can activate it and buy tickets to Maui -- or your own Gulfstream jet to take you there, right? After all, there's no limit on your account.

The Reality: AmEx has changed; it no longer issues only charge cards -- the type that allow you to rack up a lot of debt, as long as you pay off the entire debt every month. They issue credit cards, too, which allow you to carry a balance.

In addition, when you inspect the marketing info from American Express, the phrase "no preset spending limit" usually comes with an asterisk. In the fine print, you'll find wording to the effect that this "... does not mean unlimited spending. Your purchases are approved based on a variety of factors, including current spending patterns, your payment history, credit record and financial resources known to us."

"There is no preset spending limit. It's dynamic. It can change based on your financial situation and how you use the card," says Mona Hamouly, a spokeswoman for American Express. "We have customers who make extremely large purchases with their cards, but that may be part of their profile."

In other words, if you don't already make high-dollar purchases with your credit cards, expect AmEx to question why you're suddenly buying $6,500 designer shoes when you stated on your application that you earned just $30,000 a year. "The best thing to do when you're going to make a purchase that's out of the ordinary for you is call and let us know, so we can discuss the details," says Hamouly.

Myth No. 3: You need one of each of the big cards -- Visa, MasterCard, American Express and Discover -- in your wallet because you may be stuck someplace that accepts one and not the others.

The Logic: People do wonder if the place they're going will take the card(s) they have. The rivalry between American Express and Visa has perpetuated this for years, as evidenced by TV spots for Visa that showed flashy restaurants and exclusive hotspots " ... that don't take American Express."

Some places are picky: Go to a Sam's Club, and you can only use Discover and its own branded card, while only American Express is good at rival retailer Costco.

The Reality: "If you have two of the big four, you're not likely to have any problems," says Linda Sherry, national priorities director for Consumer Action in Washington, D.C., "and millions of people just get by with one. It's much simpler."

"Although their advertising can make you want all these great cards, it's probably not great financial sense to have them all," says Sherry. "Remember: All those cards with your name on it don't make you rich and powerful, and in the end, you could become poor because of them."

Myth No. 4: You can give your credit score a boost by paying more than you owe.

The Logic: Paying more than you owe does temporarily bump up the amount of available credit on your card. It's also true that using a smaller percentage of the credit available in your accounts -- known in the industry as keeping a "low utilization ratio" -- helps your credit score. Lastly, it's thought that early credit scoring models may have given people a boost when they paid a personal or car loan a month early, so some may think that the same thing would apply to their plastic.

The Reality: "Even though you may be below zero on an account, it's assumed that's a temporary situation," says Roslyn Whitehurst, a spokesperson with the credit bureau Experian. "Whether you've got a credit of $100 or $1,000, it still shows as a zero balance for scoring purposes."

Myth No. 5: Using your debit card wisely can help your credit score.

The Logic: Debit and credit cards look alike, both bearing Visa, MasterCard or other logos. They're treated virtually the same by retailers. Thus, both should have an impact on credit scoring.

The Reality: "Having a bank account with a debit card and maintaining it properly shows that you're a responsible consumer," says Sherry. "But it is not taken into account" in credit scores, she says.

Myth No. 6: Retailers can set a minimum amount you can charge on a credit card when you buy something from them.

The Logic: In a small store or restaurant, it's not uncommon to find a sign that says, "$5 minimum for credit card purchases." If this wasn't allowed by the credit card companies, surely they'd crack down on it.

The Reality: Retailers who set minimum charges are breaking their agreements with the card companies. Because retailers pay interchange fees -- which vary, but average about 2 percent of the sale -- plus possible transaction fees on each credit card purchase, it's easy to see why a store owner would want to discourage lots of small credit card sales. But when they do so, they risk losing their ability to accept cards. "You're allowed to charge any amount on your card, even a penny," says Zeichner. "The problem is that the retailer wants you to charge enough to make it worth his while."

If you need to use a card for a small transaction that's against store policy, you can object, although you may be invited to take your business elsewhere. The other thing to do is contact the credit card company. "We want to know about retailers who do this," says Matt Towson, a spokesman for Discover Financial Services. "It violates our contract with them."

Myth No. 7: If you go over your credit limit and pay it back before the due date, you'll be fine.

The Logic: Lots of people go over their credit limits. After all, credit card companies don't want to embarrass you and lose you as a customer, so they rarely decline your purchase. As long as you're a good customer and you keep the overage reasonable, they won't hit you with an over-the-limit fee.

The Reality: It's true that credit card companies don't want to decline your purchase when you go over your limit. And if you're buying something that puts you a few dollars or more over the top, there's a good chance they'll give you the green light. But remember, every time you pass that credit limit, even for a short period, you could give the issuer a reason to boost your interest rate to penalty rate levels -- sometimes more than 30 percent.

You've also triggered one of those nasty fees that can eat up your account. Taken over time, those fees can add up and hinder your ability to draw down your debt. "It just makes sense for the company," says Sherry. "They know you don't want to have the card declined, so they quietly penalize you the $30 or $40 over-limit fee."

To avoid it, try calling before your purchase to see if they can give you at least a little bump in your credit line.

By John Morell http://finance.yahoo.com/banking-budgeting/article/106525/Don't-Believe-These-7-Credit-Card-Myths

Labels: business credit card, credit card, logic, myths, reality

Almost all credit card holders are aspiring for a higher credit card limit. This is because a higher credit card limit will enable them to make otherwise unaffordable purchases. Credit card holders need to remember that to get a higher credit card limit; they must abide by the terms and conditions of the credit card company or bank.

Below are other ways to get a higher credit card limit.

* The most important thing to do to get a higher credit limit is to prove your creditworthiness. This is the number one thing banks and companies look for in giving a higher credit limit.

* Attract positive attention from the credit card company or bank by paying finance purchases once in a while. However, it is not advisable to make this method a habit and should only be done as a last resort to increase your chances of getting a higher credit limit.

* Proving credit card companies and banks that you are good borrower would definitely convince them to give you a higher credit limit. But be careful as such strategy could only serve the benefit of the companies and banks. A higher credit card limit means greater purchasing power but it also increases the potential of the credit card companies and banks to earn through you through increased interest charges and other fees.

* Always spend within your credit card limit because doing so means that you are capable of controlling your expenses.

* Use your credit card regularly. Don't keep your cards for emergency use only. If you sue your credit card sparingly banks and credit card companies will be unable to understand your spending and pay back behavior and would be reluctant to give you a higher credit card limit.

* Never make minimum payments. Instead, try to pay for the entire outstanding amount. This would give you better chances of getting a higher credit card limit.

* Avoid late payments as much as possible. Not only do you increase your interest, you also have to pay an additional fine for not clearing bills on time. This would dim your chances in getting a higher credit card limit.

* The best and simplest strategy to get higher credit card limit is to use your credit card wisely. Always keep in mind that credit card companies keep a record of your transactions and payment pattern so always pay your dues on time and never make late payments. Your performance in the records of banks and credit card companies will determine whether you'll get a higher credit card limit or not.

By pilkster http://stooze.co.uk/

Labels: business credit card, credit card, get, higher, how, limit, strategy, ways

Choosing the right business credit card is essential to your business. A business credit card is good for those who have their own small business or have a company that they run. There are many credit card companies out there with small business credit card offers and they each have their own pros and cons. Finding the right one for your wallet and your business is entirely possible but only if you take the time to learn a little about each one and their terms and conditions. This will help you to avoid any upsetting surprises later on down the road.

It is important to remember that while these business credit cards are extremely helpful to those that are starting up a business and those that have a successful one, these companies are not in it just to be useful. They are giving these cards to business people like you to make money. Many of these small business credit card companies are even adding special perks such as rewards like airline miles and even cash back incentives.

Small business owners can use these credit cards for start up capital as well as in times of need when business is slow. Once they get their business up and going then they can repay the debt that they owe when they can afford to. Being able to use a small business credit card in a time like this can be priceless.

There are many different small business credit cards out there, and it is essential that you be very careful in which one you choose. Also, you need to make sure that you can afford to get a business credit card or several business credit cards before you actually sign any papers. For instance, if you are using this small business credit card to start up your own business, you may want to consider how this debt may affect your future finances. If you think that your business will not make it, then you should try to come up with another way of getting the money. If on the other hand you think that it is sure to succeed and you will be able to repay the money then you should go ahead and do what you have to do to get it done even if it means getting into debt with a business credit card.

It is essential that you shop around and find the business credit card that is the best for you and your own situation. The following is a small list of some of the things to take a look at in the contract of any business credit card you are considering signing up for:

1) Interest rates, this is their annual APR
2) Is their interest rate only good for a short period of time? How much does it go up after that?
3) Annual fees, do they have any?
4) What kind of rewards are they offering?
5) The credit limit
6) The grace period
7) The ability to take out cash withdrawals
8) Are balance transfers allowed?

No matter what business credit card you choose, there may or may not be catches to it, which is why it is up to you to decide which one works the best for you and your business. The business credit cards that I have listed above are business credit cards that I have researched so that I could provide you with some samples of what a business credit card has to offer, keep in mind that they are never the same. Each small business credit card has its own way of going about things. They all have different APR's and monthly payment procedures, just make sure you know what yours are.

By Robert Alan http://www.creditcardassist.com/business/creditcards.html

Labels: business credit card, choosing, right one, small business

A business credit card can help you manage your company’s finances more efficiently. With a line of credit, you can handle cash flow issues, keep track of expenses, and qualify for deals and discounts.

Manage Cash Flow

Cash flow is always an issue with businesses. Bills are due while you are waiting for accounts to be paid. A business credit card can help you get through these short-term issues without having to take out a line of credit.

For small business, a credit card is often the first type of credit available to you. For sole proprietorship, your personal credit record will determine your credit limit. For other types of ownership, you will need to supply a business plan and financial statements.

Keep Track Of Expenses

Having a separate credit card for your business can help you keep better track of your expenses. Some credit card companies offer spending reports to help you identify spending habits. You can also look at your statement online.

Not only will a separate account help with accounting, it will also look better to the IRS. The government looks suspiciously when business and personal accounts are lumped together. Separate accounts are easier to track, especially important when you are declaring expenses on your tax return.

You can also request additional cards for employees. These company cards can have daily spending limits, to protect your company from fraud. With online statements, you can see watch activity on your account. You know what was spent, even if your employee forgot to turn in a receipt.

Qualify For Deals And Discounts

Business credit cards can also qualify you for special deals and discounts, just like with a personal account. You may choose a program that offers airline miles or reward points. To find the lowest interest rate though, stick with a plain account that has no fees.

To find the best deals, compare several programs. While your mailbox may be full of offers, searching online will probably yield better results. Be sure to read the find print for information on APR and other terms. By finding the right card, you will have a better handle on your cash flow issues.

By Carrie Reeder http://www.isnare.com/?aid=24627&ca=Finances

Labels: business credit card, business credit cards, managing cash flow, new

A credit repair business can definitely help you out in fixing your bad credit record, especially when you are in the need of a quick financial loan - either to be used to fund your business venture or for personal use like home improvements.

When it comes to putting your credit score back into shape, these experts utilize their knowledge in the legal department of credit business, accounting, and finance to get the job done. But in truth, the services offered by credit repair businesses aren't cheap and may dig deep into your budget. But despite the possible expense, many are still going for these professional to fix their credit scores rather than doing it for themselves.

But before you actually consider hiring one, you need to know that there are plenty of frauds and scammers around pretending to be the real deal - especially on the Internet. Here are some signs you need to watch out for:

Fraud Signs #1

Some credit repair business offers to fix your credit rating as fast as 30 to 60 days, and many are gullible enough to fall for it. In truth, there is no way to fix your credit score within that time frame; it may take months, or even years to get the job done.

It's true that they can check your credit reports for possible transaction errors, and report this to the responsible agency for correction - this can give your credit rating a much needed boost. But if there are no errors found on your report, then it will take quite some time to get it fixed.

Fraud Signs #2

Real experts in credit repair will give you advice during consultation for free, and will proceed with helping you fix your credit rating without any up-front charges. Fraud credit repair businesses, however, are more interested in getting your money than actually fixing the problem. These individuals will ask for up-front or advance payments for their service before they even process your request.

Read more What You Need To Know About Credit Repair Business

Labels: business credit, business credit card, credit card, credit repair business