Most credit card companies offer business credit cards to business owners and corporate executives. Business cards generally come with special reward programs and high credit limits. Business card holders get a free account summary and expense reports. Credit card companies work in a highly competitive environment. Each company may have different schemes to suit business executives.
However, it is important to follow certain guidelines when selecting a business credit card. It is advisable to compare various credit cards on the basis of rates and benefits offered. There are a number of sites on the Internet that provide information about different business credit cards. Selection of appropriate credit card schemes can be based on such information available.
Many credit card companies set purchase limits or credit limits for business credit cards. If a card has less credit limit, business owners may have to own several cards making it difficult to manage their expenses. However, a higher credit limit may encourage business owners to spend more than necessary and may lead to debts. It is advisable for Business executives to select a card that offers credit limit best suited to their particular business deals.
Most business credit cards offer relatively low APR (Annual Percent Rates), while some may even offer 0% APR for an initial period as an introductory offer. It is recommended to select business credit cards that satisfy business requirements at a lower APR for long terms.
There are several benefits attached to business credit cards. It is possible for Business owners to avoid carrying large cash amounts while traveling. Besides, reward points may be offered for purchases made on credit cards. The reward points can be redeemed to buy various products. Rewards such as free hotel accommodations and discounts on airfare for frequent flyers may also be included.
Generally, credit card companies do not charge any annual fees to cardholders. The expense reports provided by credit card companies facilitate cardholders to keep a track of their business expenses. Various credit card companies offer different forms of incentives to business owners.
Credit history can be a deciding factor for the credit limits offered to a business owner. It is advisable to settle the outstanding dues regularly to maintain a good credit score.
Posted in
Business Credit at June 25th, 2010.
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When you look around your neighborhoods, it’s hard to find any good news. Friends and neighbors may have lost their jobs or be on short-time. There are foreclosed properties on every street. Shops and businesses have been closing down with increasing frequency. These are the signs of a real recession where unemployment and poverty stalk the land. The cause of all this pain is not hard to find. We have all been living beyond our means. When the banks and credit card companies offered us more money to borrow, we just took it. Why bother to save when the value of our homes only goes up? Let’s plan for our retirement by borrowing cheap money and buying stocks and other more risky investments. No-one ever loses if they follow the advice of the credit rating agencies. Well, we know better now. What goes up can also come down. What is given a triple A rating can be junk tomorrow.
In the midst of all this chaos, the credit card operators have been cutting back on the borrowing limits. This has forced pain on us for two reasons. Firstly, finding the money to pay down our debts more quickly means redesigning the family budget. Sacrifices have to be made. Secondly, the way the credit score is calculated depends in part on the extent to which we use the credit cards we have. If the limits are reduced, we look like bad risks because the amount borrowed is closer to the limit. We have less money available to borrow and cut down on card usage so we can repay faster. Put the two together and the score falls. This is a direct criticism of the methods used to calculate the scores. It produces a fundamentally unfair result during a recession.
This would not be a problem if the credit score was only used by banks and credit card operators. But it’s also used by companies to help decide whether to employ you, by landlords deciding whether to rent to you and by insurance companies deciding whether you are a responsible person. National figures show more than half all insurance companies use credit scores as a key factor in deciding your premium rate. This is extraordinary. There is only one possible effect of being in debt when it comes to the way in which you drive. If you cannot afford to repair your vehicle, you drive defensively to reduce the risk of an accident.
Some states like California and Massachusetts have banned the use of credit score for this purpose, but they are a minority. They cite discrimination as a reason for the ban. The majority of the population without access to banking services and credit cards fall into minority racial groups. When they do not have a credit score, they are forced to pay a higher premium simply because of who they are, not how they drive. So, when you are looking for affordable cover, get the maximum possible number of car insurance quotes to find the best policies. If you live in a state which refuses the regulation of the car insurance market, contact your local government representatives and tell them how much pain you are suffering because of this unfair use of credit scores.
Posted in
Articles at May 23rd, 2010.
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In the current financial climate, many of us are looking for ways in which to reduce our debts and save money. If you’re looking for a new UK credit card and you have balances left to pay on other credit cards or store cards, you may want to consider applying for a credit card that allows balance transfers.
What is a Balance Transfer?
Making a credit card balance transfer means that you transfer your debts with other credit cards and store cards to your new credit card. You simply provide the details of your other credit cards and store cards to your new credit card provider, and the balances will be transferred to your new card.
The Benefits of Balance Transfers
The main benefit of a balance transfer is that it can save you money and therefore allow you to clear your debts in less time. In order to make the most of a balance transfer facility, you will need to look for a card that offers 0% balance transfers. This means that for a specified time, you won’t be paying interest on your transferred balance.
This doesn’t mean that your monthly payments will be cheaper, as you will have to pay at least the minimum monthly repayment set by your card provider. However, it does mean that your money will be going towards paying off your debt, rather than paying interest, so this will mean that you can pay your balance off quicker.
A second benefit of a credit card balance transfer is that, as you can transfer the balances from a number of credit cards and store cards to your new credit card, it can make it easier to keep track of your finances.
Balance Transfers – Things to Look For
Here are some hints and tips on what to look out for when choosing a credit card in order to transfer your balances from other cards:
· Make sure that you choose a card which offers a long 0% balance transfer period. Different providers offer different 0% interest periods on balance transfers, so compare them before applying for your new credit card.
· Check to see what fees you will be charged for transferring any balances to your new card. Most providers will charge a percentage of the transaction amount, so compare charges before choosing a credit card.
· Check to see what the annual percentage rate (APR) is on any card that you’re considering. When you have reached the end of your 0% interest period, you will need to pay the card’s standard APR on this balance, so make sure that it is competitive.
· Make sure that you can afford to pay at least the minimum monthly repayment each month, as if you pay your bill late, your credit card provider may cancel your 0% interest balance transfer arrangement. Check the terms and conditions applicable to any credit card before applying, as breaching them may also result in cancellation of the 0% interest deal.
· Make sure that you know the order in which your card provider will apply payments to your account. Most card providers will use the payments that you make to pay off your transferred balance first, so if you make any new purchases on your card, they could prove to be expensive. If you do intend to use your new card to buy things, look for one that offers a 0% interest on purchases period.
Posted in
Credit Cards at March 31st, 2010.
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As you get older, the mortgage is paid off and the kids have grown up and left the nest, there’s a temptation to switch off. You feel you have done all the heavy lifting. The pension will be coming soon when you retire… What’s wrong with this picture? Well, the majority of people were trading in property and, when the bubble burst, they are looking at negative housing equity and the threat of foreclosure. Even those who stayed in their own homes over the years, often borrowed heavily against them. With the recession, all those investments in the retirement fund have lost their shine. Unemployment is a more real threat to middle and upper class families. Children seem to be staying in the family home for longer. And all this at a time when life expectancy is increasing. Ten years ago, people might have dropped their term life insurance policies and found themselves with more disposable income. Now the decision is more difficult.
With the credit crunch, the pressure is on to keep paying the mortgage, reduce the outstanding household debts and put food on the table. Those of you with permanent or cash-value life insurance policies have a slightly easier path to follow. Premiums will be fixed but, if you stop paying, the policies may remain valid. The decisions are to:
- keep paying, which builds up the investment value and protects the family by maintaining the death benefit;
- stop paying and leave the cash value untouched;
- withdraw or borrow some of the cash value; or
- cancel the policy which usually involves a big tax bill.
If a term life insurance policy is falling due for renewal, here’s how the choice looks: if you renew, the premiums will be higher because, suddenly, you’re older; but, if you let the policy expire, your family could be hit hard if you die unexpectedly. Many of you may have bought term life cover when you were younger. Perhaps you thought you would convert to permanent policies or simply drop the cover when your children had grown up. Now that retirement funds are shrinking, it’s time to take another look at term insurance.
Allowing for inflation, the premiums have actually been falling over the last ten years as life expectancy has been improving. Go back fifty years and only a small percentage of people lived beyond seventy. Now, many people live into their eighties and beyond. This has prompted competition among life insurance companies to attract business from older people. As long as you are physically fit, you are likely to find the rates little changed from the ten, fifteen or twenty year term policy that is due to expire. Naturally, there will be a health exam to ensure you will live a reasonable number of years before a claim arises, but the option to continue a term policy or to convert to a permanent policy are better than you might imagine. This is a good time to start talking to the life insurance companies to see what your options are.
Posted in
Articles at March 3rd, 2010.
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Are you having problems on your student loan debts? After graduation, there would be a high chance that paying your student college loan would be one of your major problems. Many students find it hard to pay their student tutoring loans due to the instability of getting a job after graduation. You can expect your student loan to be of large amount since tertiary education nowadays is very costly.
From tuition fees, board and lodging fees to other expenses for your school needs, expect your student loan debts to increase at a very unmanageable rate. Most people sacrifice themselves into incurring debts in order to finish their studies continuously. Their efforts are taken into consideration by several student college loan providers who provide financial assistance to students facing problems on their studying loan debts.
One of the best solutions that the student loan companies provide is the consolidation of the student loan debt. This procedure is not a new concept when it comes to dealing with loan payments. Consolidating your debts to a single lump sum in exchange for a considerable interest rate can effectively eliminate the hassle and pressure from your previously incurred debt. In the case of studying loans, consolidation means that you are going to pay all of the loans you have used with the help of the studying loan providers. This can help you avoid the interest build up on your previous loan and at the same time extend the payment period of the borrowed amount.
The major benefit of these consolidation procedures is that you can be able to acquire affordable interest rates with the high availability of companies willing to support students. Consolidation is often sponsored by major companies that greatly benefit on the flow of work force coming from the prestigious universities and schools. Many of these firms give importance to the perseverance of the students. Therefore, it is not that hard to acquire a reasonable student college loan consolidation plan nowadays.
Most of the consolidation programs are often supported by both the government and private organizations. You can expect the federal loans to be much more affordable than private loan. However, you can also expect stricter requirements if you are going to avail financial assistance from the government. Consolidating your student studying loan debt would be a great move for you to reduce your financial worries and at the same time manage your money for other essential expenses.
Posted in
Education Loans at February 5th, 2010.
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