Credit Cards Blog

What it is: Credit cards can provide easy money for young, growing companies. But they also come with serious dangers.

How it works: There are personal credit cards, and there are cards tailored toward small businesses. Each come with benefits and rewards. There are more government protections for personal credit card holders, while business cards can have higher limits and rewards such as discounted office supplies that are tailored toward business owners.
No matter what, you will wreck your personal finances if the bills aren't paid, so don't be tricked into thinking you need to use a business card with the business.

Upside: Besides providing needed cash flow to young businesses, credit cards can also improve credit scores for owners and businesses alike -- as long as payments are made on time. There are also special rewards and perks such as airline miles, discounted gas or even cash.
The funds are also easier to come by, which can help in a pinch.
Embracing business credit cards for daily expenses inside the business can also aid in record keeping by helping business owners to separate personal and business finances, track employee spending, reduce time balancing checkbooks, and produce business financial reports.

Downside: Credit card interest rates are much higher than traditional loans, which can make them a pricey form of debt that will drag the business down during tough times.
It is little wonder that the Ewing Marion Kauffman Foundation has found that for every $1,000 in credit-card debt that a small business takes on, its chances of long-term survival fall by more than 2 percent.

For a young company, it is crucial to tap personal funds, family, friends and other investors in order to avoid racking up too much credit card debt. Such high-interest debt will swallow up a young company's revenues.

Getting late on a payments and you can damage your credit score, hurting your ability to take out loans as the business grows. A late payment on a small business credit card also gets you reported to a business credit bureau.

Extra tips:

• Review sites such as CreditCards.com,CardRatings.com and Bankrate.com provide online tools to compare interest rates, rewards programs and annual fees.
  
• You could get burned on a small business credit card if you don't scrutinize the fine print and ask a lot of questions. Such cards are not covered by the 2009 Credit Card Accountability, Responsibility and Disclosure Act. The law protects consumers from such practices as arbitrary interest-rate increases.
  
• If you think you won't be able to pay off purchases in a single billing period, it might be better to charge them on the personal plastic, rather than a business card.
  
• Don't just hone in on annual fees. Check out baggage insurance, concierge service, employee-expense tracking, and even access to airline clubs.
  
• Search out the business cards with the best rewards in order to make something back on the business' purchases.
  
• Take advantage of introductory zero-percent rates on both purchases and balance transfers.
  
• Use different types of cards for different types of transactions. For example, a business-rewards credit card might be best for everyday expenses, while a zero-interest personal card might be the best for funding.


Ref: http://www.entrepreneur.com/article/228193#ixzz2g3XUAbfq

According to the Federal Reserve's most recent survey of consumer finances, roughly 46 percent of American families carry a credit card balance, and nearly one in four owe more than $3,000 on their plastic.

Because of this, some folks believe credit cards are evil. But credit cards are no more evil than a chain saw. Sure, my chain saw can be dangerous, but only if I use it like an idiot. Used wisely, credit cards can be valuable tools, especially for small-business owners who can earn reward points and manage their cash flow while paying the monthly bills.
Jim Wang, for instance, loves his credit cards. The entrepreneur from Columbia, Md., writes about personal finance at Bargaineering.com. He controls his credit cards instead of letting them control him.
"I carry three cards," he says. "They're all cash-back or rewards cards. One card's for business; one offers rewards at restaurants, movie theaters and bookstores; and one offers cash back on everything else."

• Read the fine print. You should read every contract you agree to, and a credit card is no different. Reading the paperwork alerts you to the card's hidden benefits--and its hidden pitfalls.

• Review your statement every month. Watch for fraudulent transactions, but also keep an eye out for changing due dates, fees and interest rates. And don't be afraid to speak up. If something seems strange (or you want a rate reduction), call customer service.

• Don't buy anything with your credit card unless you already have cash in the bank to pay for it. Don't let your having a credit card influence your shopping decisions. A credit card isn't a license to spend--it's just a different way to pay. 

Another bonus? Credit cards make money management easier. "I like that all my spending records are in one place," Wang says.
If you choose to use credit, be smart. This isn't free money. Live by three basic rules, and you can safely use credit without getting burned.
"The idea is to spend within your means," Wang says. "Don't charge more than you're able to pay back in a month. If you carry a balance, you negate most of the benefits."
Not all credit cards are created equally, of course. Some carry high fees and onerous interest rates. In 2009, Congress passed the Credit Card Act, designed to protect consumers from some of the worst credit-card company tricks, but it can still be tough to sort the wheat from the chaff. To find a credit card that best suits your needs, consult Consumer Reports or visit card comparison websites such as IndexCreditCards.com or CardRatings.com.
Small-business owners should be careful, though.
"Business credit cards aren't regulated by the Credit Card Act," notes Curtis Arnold, founder of CardRatings.com. "In fact, some companies are issuing ‘professional' cards to get around consumer regulations."
Arnold, author of How You Can Profit from Credit Cards, says that banks are targeting entrepreneurs aggressively with these cards.
"Some small-business owners have switched from business cards to consumer cards to get protection," he says. "To get the same protection, consider applying for a personal card in your business's name. As long as you're not actually mixing your business and personal accounts, you're fine."
Credit cards aren't evil, but they can be dangerous. Just as you handle a chain saw with care, you need to be equally cautious with credit to avoid hurting yourself (and your business). Used wisely, credit cards can actually give you a financial edge.

Ref: http://www.entrepreneur.com/article/218128#ixzz2fXd0Srmj

If you have to accumulate charges on plastic to launch or build your business, you ought to be using one of the best credit cards out there so that you get money back and earn rewards.
The credit-card comparison website CardHub.com today is releasing its analysis of more than 1,000 business and personal credit cards for small-business owners. The analysis ranks them by four categories:

• Earning rewards
• Longer-term funding
• Decreasing the cost of existing debt
• Building a credit history

Surprisingly, in this analysis consumer credit cards are sometimes the best option for small-business owners, CardHub.com says. The Credit Card Accountability Responsibility and Disclosure Act, known as the CARD Act, which was passed in 2009 and went into effect in 2010, instituted measures of transparency and accountability in the credit-card industry. However, the protections were not extended to business credit cards.

Here is a look at the recommended credit-card options from Washington, D.C.-based CardHub.com, by personal finance priority.

REWARDS CREDIT CARDS

1. Ink Plus Business Card from Chase:
If you spend $5,000 in the first three months of signing up for the Ink Plus Business Card, you will receive 50,000 bonus points. Also, for every dollar you spend on office supplies and telecommunications services, you can earn another five points, up to $50,000 per year. For every dollar you spend on gas and hotel accommodations, you can earn two points, up to $50,000 per year. The annual fee on this card is $95 after the first year. Of course, as with all credit cards, it's a good idea to pay off the balance on a monthly basis to avoid being charged interest. Because the CARD Act protections do not extend to business credit-cards, your interest rates can be changed at any time on credit cards specifically designated for businesses. 

2. Club Carlson Business Rewards Credit Card from Visa:
This card is especially good for entrepreneurs who spend a lot of time living out of a suitcase and like Radisson hotels. The card offers 50,000 bonus points after your first purchase and 35,000 additional points if you spend more than $2,500 in the first three months of signing up. Those 85,000 points can be exchanged for as many as 18 free nights in Club Carlson hotels. If you book more than two consecutive nights at a hotel with the Club Carlson, the last night is free. While Club Carlson may not be a familiar brand for you, it is the parent company of chains including the Radisson, Park Plaza and Country Inn. There is a $75 annual fee.

3. Capital One Spark Cash for Businesses:
This credit-card gives you two percent cash back on any purchase, and while that is slightly less than you can get back for specific categories of purchases on other cards, that this card offers some cash back on all purchases makes it especially convenient, the report says. Also, if you spend $1000 in the first three months, you will get $100 as a bonus. If you authorize an employee to use your card, you get another $50 bonus. The annual fee is $59 after the first year.

BUSINESS FUNDING :

1. Citi Diamond Preferred:
Approximately one-third of small-business owners use credit-cards for financing, according to the most recent National Small Business Association access to capital report. If you are looking to finance a larger purchase on a credit card, having an extended period of time where you don’t accrue interest is key. This credit card from Citi offers zero percent interest rate for 18 months, the longest in the industry, according to CardHub.com. The Citi Diamond is a consumer credit-card. Not only are consumer-credit cards protected under the CARD Act, but also they tend to have longer periods with zero interest, says CardHub CEO Odysseas Papadimitriou.

2. Bank of America Cash Rewards for Business MasterCard:
Bank of America is the only large, primary card issuer to have voluntarily applied the CARD Act protections to its small-business offerings. This credit-card offers no interest payments on new purchases for nine months. Also, you can get three percent cash back at gas stations and office supply stores, two percent at restaurants and one percent for all other purchases.

LOWER THE COST OF DEBT:

1. No Balance Transfer Fee Slate Card from Chase:
 About half of small-business owners carry credit-card debt from month to month, CardHub.com says. If you are one of them, the Slate Card from Chase is your best option because there are no fees for transferring your balance, says Papadimitriou, who is “amazed” this option is available anywhere because it is not a profitable offering for card issuers. Also, once you transfer your debt to the Slate Card, there are no finance charges for 15 months. There is no annual fee.

BUILD CREDIT :

1. Capital One Spark Classic for Business:
Building a good credit history takes time. The only way a specific credit card will help is by having no annual fee, says Papadimitriou, allowing you to use all your cash to pay off debt. Also, the Capital One Spark credit-card gives one percent cash back.

2. Harley-Davidson Secured Credit Card:
If you don’t have credit, or have bad credit, the Harley-Davidson Secured Card is a way to build credit. You have to make a security deposit to open the credit card and you can spend only as much as you have deposited. You can add more cash to your deposit to increase your credit limit. A bonus to this card is that it waives the annual fee for the first year.

Corrections & Amplifications: An earlier version of this article incorrectly referred to Ink Plus Card as charge card. It is a credit card.

Ref: http://www.entrepreneur.com/article/226941#ixzz2fVdYtboh

A personal finance expert will always advise against running up a credit-card balance. But as a small-business owner trying to launch or grow your company, that may not always be a reality.
If you do have to turn to plastic, be reminded that some cards are better than others.

Credit-card comparison site CardRatings.com today released its list of the 10 best credit cards for 2013 thus far. The cards were chosen based on the quality of their customer service and their value for people with good to excellent credit.

Credit-card issuers are having to work extra hard these days to win over consumers, many of whom are working to pay down debt, says CardRatings.com Editor-in-Chief Curtis Arnold. "This puts consumers in the driver's seat and I would encourage folks, particularly those with good credit, to be very discriminating when shopping for a new card," he says in a statement.
Here are 10 best credit cards of 2013:

1. Discover It
2. Barclaycard Ring
3. Capital One Venture Rewards Credit Card
4. PenFed Platinum Rewards Visa Signature Card
5. Southwest Airlines Rapid Rewards Premier Credit Card
6. Citi Simplicity MasterCard
7. Chase Sapphire Preferred
8. American Express Blue Cash Preferred 
9. American Express Platinum Card
10. Citi Forward Card for College Students

Ref : http://www.entrepreneur.com/article/227893#ixzz2fRViwysh

The following are top 6 best credit card offers designed for students. Compare offers and apply online with a student credit card application.
New Federal laws impose restrictions on issuing credit cards to individuals under 21 unless the applicant has the independent ability to repay debt, or has an adult co-signer who agrees to accept joint liability for the account.

Discover it® for Students

• Pack a Discover it® card when you go back to school.
• Fair...No annual fee. No overlimit fee. No foreign transaction fee & no pay-by-phone fee. No late fee on your first late payment. And we won't increase your APR for paying
• Generous...5% cash back in categories that change throughout the year up to $1,500 in purchases with free and easy sign-up. And 1% cash back on all other purchases.*
• Plus a Cashback Concierge^SM who guides a free, personalized online tour to help you get the most rewards for how you use your card.
• Flexible...Choose your own due date and pay up to midnight ET online or by phone.
• Human...talk to a real person any time with 100% U.S.-based service.
• Safe...Because you'll never pay for unauthorized purchases with our $0 Fraud Liability Guarantee.
• 0% intro APR* on purchases for 6 months, then the variable standard purchase APR of 12.99% - 21.99%. *Click apply for Terms & Conditions.

Discover it® for Students with $20 Cashback Bonus

• Get back-to-you cash on back-to-school expenses with Discover it®.
• Generous...5% cash back in categories that change throughout the year up to $1,500 in purchases with free and easy sign-up. And 1% cash back on all other purchases.*
• Plus a Cashback Concierge^SM who guides a free, personalized online tour to help you get the most rewards for how you use your card.
• Fair...No annual fee. No overlimit fee. No foreign transaction fee & no pay-by-phone fee. No late fee on your first late payment. And we won't increase your APR for paying late.*
• Flexible...Choose your own due date and pay up to midnight ET online or by phone.
• Human...talk to a real person any time with 100% U.S.-based service.
• Safe...Because you'll never pay for unauthorized purchases with our $0 Fraud Liability Guarantee.
• Experience our cash rewards with $20 Cashback Bonus® when you make your first purchase within 3 months of approval.* Standard variable purchase APR*- 12.99% - 21.99%.
• *Click apply for Terms & Conditions.

Citi Forward® Card for College Students

• 5 ThankYou® Points for every $1 you spend at restaurants and on books, movies and music. 1 point per $1 on all other purchases.
• Up to 2% APR reduction when using credit wisely
• 100 ThankYou Points each billing period that you pay on time and stay under your credit line.
• 1000 bonus ThankYou Points when you sign-up for paperless statements.

JourneySM Student Rewards from Capital One®

• Designed to help students build good credit with responsible use
• Access to your monthly credit score, plus an interactive tracking tool to help monitor your credit
• Customizable text and e-mail alerts to help keep you on track
• Get 1% cash back on all purchases, plus a 25% bonus each month you pay your bill on time
• No annual fee
• $0 Fraud Liability if your card is lost or stolen

American Express Serve®

• Get American Express Serve and you could get $50 when you use Direct Deposit. Must enroll in Direct Deposit by 9/30/13.*
• No credit check. No minimum balance. No activation fee.
• Manage your money with the prepaid card, online account, and mobile app.
• Shop online or off and get access to membership benefits like Purchase Protection.*
• Enroll in Direct Deposit to get your paycheck in your American Express Serve Account on payday.
• No need to use a check. Email money to anyone no matter where they have a bank account.
• The safety and security of American Express.
• The 24/7 customer service you expect from American Express.
• *Terms, conditions and exclusions apply.

Citi® Dividend® Card for College Students

• Earn 5% cash back on eligible purchases within the Hilton Worldwide portfolio of brands, car rental agencies, movie theaters and theme parks from 7/1/13 to 9/30/13, upon enrollment
• Earn a full 1% cash back on all other purchases
• Earn bonus cash back each quarter for new must-have categories - like department stores, travel and more, upon enrollment.
• Manage your account online, on your tablet or on your Smartphone
• No Annual Fee

Ref : http://www.creditcards.com/college-students.php#ixzz2fJYlKOcJ

The following are top 7 best business credit cards offers, a small business credit card or corporate credit card can help you keep your company's expenses on track and obtain the buying power you need to operate your business. Some business credit cards also reward you for all your business purchases in the form of cash back or airline miles.
Compare the business credit card offers below and apply for the card that's right for you.

Capital One® SparkSM Cash Select for Business

• Get a 50% bonus on the cash back you earn every year
• Earn 1% cash back on every purchase, every day
• Save with 0% intro APR on all purchases until March 2014
• Enjoy no annual fee
• Get online Quarterly and Year-End Summaries
• Redeem cash rewards anytime, for any amount, even set up automatic redemption
• Earn unlimited cash rewards that don’t expire

Capital One® SparkSM Classic for Business

• Enjoy no annual fee
• Build business credit with responsible use with eligibility for an automatic credit line increase
• Earn 1% cash back on every purchase, every day
• Separate business expenses from personal expenses
• $0 Fraud Liability if your card is ever lost or stolen
• Enjoy business benefits including Year-End Summaries, employee cards at no additional cost, and experienced small business customer service

The Business Gold Rewards Card® from American Express OPEN

• Earn 50,000 Membership Rewards® points after you spend $5,000 in purchases on the Card in the first 3 months of Card membership†.
• Earn points even faster to get more rewards for your business.
• 3X points on airfare purchased from airlines. 2X points at US gas stations.
• Up to $100,000 in each category per year, then 1 point.
• Terms and limitations apply.
• Reduce travel costs, show appreciation for employees and clients, and offset everyday expenses by using points to get something back and grow your business.
• $0 introductory annual fee for the first year, then $175.
• †Apply online to qualify for this offer. See offer terms for details.

SimplyCash® Business Card from American Express

• With no annual membership fee, it's a smart choice for your business
• Automatic cash back - cash back is earned on eligible purchases and automatically credited to your statement
• 5% at U.S. office supply stores & on wireless telephone services purchased directly from U.S. service providers
• 3% at U.S. gas stations
• 1% on other purchases
• Up to $12,000 in purchases in each 5% and 3% category per rebate year, then 1%.
• Terms and limitations apply

Capital One® SparkSM Miles for Business

• Earn 2 miles per dollar on every purchase, every day
• Get 10,000 bonus miles - just spend $1,000 on purchases within the first 3 months
• Receive 5,000 bonus miles by signing up for one or more employee cards
• Enjoy exclusive, award-winning customer service
• $0 intro annual fee for the first year; $59 after that
• There's no limit to the amount of miles you can earn and miles don't expire
• Redeem miles for travel, cash back, gift cards, merchandise, and more
• Fly on any airline, anytime, with no blackout dates or seat restrictions

Capital One® SparkSM Cash for Business

• Earn 2% cash back on every purchase, every day
• Get a $100 cash bonus - just spend $1,000 on purchases within the first 3 months
• Receive a $50 cash bonus by signing up for one or more employee cards
• Enjoy award-winning small business customer service
• $0 intro annual fee for the first year; $59 after that
• Redeem cash rewards anytime, for any amount, even set up automatic redemption
• Earn unlimited cash rewards that don't expire

Capital One® SparkSM Miles Select for Business

• Get a 50% bonus on the miles you earn every year
• Earn 1 mile per dollar on every purchase, every day
• Save with 0% intro APR on all purchases until March 2014
• Enjoy no annual fee
• Get online Quarterly and Year-End Summaries
• There’s no limit to the amount of miles you can earn and miles don’t expire
• Fly on any airline, anytime, with no blackout dates or seat restrictions

That's all Top 7 Best Business Credit Cards

Ref: http://www.creditcards.com/top-credit-cards.php

Prepaid debit cards, unlike credit cards, do not provide a line of credit and do not influence your credit history. Simply getting a credit card will not help you build, re-build or re-establish your credit history. Making on-time minimum payments with all of your creditors and keeping account balances low relative to the credit limit are key to rebuilding your credit history.
Choose from secured and unsecured credit cards, and prepaid card offers below - some of them are fee-based.

Capital One® Secured MasterCard

• Build credit with responsible use with no processing or application fees
• Regular reporting to the 3 major credit bureaus
• Monitor credit with access to a credit score and other tools
• Your security deposit can get you a line up to $3,000
• You may qualify for a credit line increase based on your payment history and creditworthiness
• Use it like any MasterCard credit card, accepted at millions of locations worldwide

Call Capital One at : 888-825-2191

Pink ACE Elite™ Visa® Prepaid Card

• Official Sponsor of the National Breast Cancer Foundation (NBCF).
• Since 2006, purchases from the ACE Elite Card have contributed to over $2 million towards NBCF's early detection screening program for those in need.
• Get paid up to 2 days faster with free direct deposit of paychecks and government benefits*
• Free Anytime Alerts™ - Get your balance and transactions via text or email*
• Secure: Card funds are backed by Visa® Zero Liability*

First PREMIER® Bank MasterCard® Credit Card

• Checking Account Required
• Apply today and if approved, simply pay a Processing Fee and you could begin enjoying a $300 credit limit (subject to available credit)
• Reports to the major Consumer Reporting Agencies.
• Easy Application process!
• Pay no interest on purchases by paying your balance in full each month
• If approved, once your account is opened you will have access to millions of merchants worldwide (subject to available credit)
• Trying to rebuild your credit history? It may be possible if you make on time payments to all your creditors and keep your account balances low relative to the credit limit.

Prepaid Visa® Classic RushCard

• Enroll in Direct Deposit and get your pay up to two days early. *Certain restrictions apply. See card site for details.
• Choose from multiple fee plan options, and switch for free.
• Transfer money to another RushCard member for just $0.99.
• No overdraft fees.
• Your money is covered by Visa Zero Liability protection. *Certain restrictions apply. See card site for details.
• Access to over 23,000 fee-free MoneyPass ATMs from coast-to-coast. Get cash or check your balance—free of charge.

First PREMIER® Bank Edith Sanford Breast Cancer Foundation Card

• Have a checking account? Apply today!
• If approved, pay a Processing Fee, and make your first two minimum payments on time, and $25 will be donated to the Edith Sanford Breast Cancer Foundation.
• The donation is made at no additional expense to you.
• Monthly reporting to the major Consumer Reporting Agencies.
• Access your credit account by phone 24/7 all year round.
• Issued by FDIC-insured First PREMIER® Bank.

Prepaid Visa® Baby Phat RushCard

• Real time activity alerts via text, email, and mobile app. *Standard text messaging rates from your wireless provider apply.
• Easy Online Bill Pay - pay bills, rent, or write personal checks.
• Free 24/7 customer service.
• Your Funds are FDIC-insured through The Bancorp Bank; Member FDIC.
• Access to over 23,000 fee-free MoneyPass ATMs from coast-to-coast. Get cash or check your balance—free of charge.

First PREMIER® Bank Credit Card

• Checking account required.
• If approved, pay a Processing Fee and you can access the $300 credit limit (subject to available credit).
• Monthly reporting to the major Consumer Reporting Agencies.
• Issued by FDIC-insured First PREMIER® Bank.
• Trying to rebuild your credit history? You may if you make on time payments to all your creditors and keep your account balances low relative to the credit limit.

First PREMIER® Bank Classic Credit Card

• Checking Account Required
• Apply today and if approved, simply pay a Processing Fee and you could begin enjoying a $300 credit limit (subject to available credit).
• Optional Payment Protection Available
• A credit card offer for those lacking perfect credit.
• Rebuilding your credit history may be possible: make on time payments to all your creditors and keep your account balances low relative to the credit limit.

Credit One Bank® Gas Rewards Credit Card

• 1% back on all gas purchases
• No limit to the gas rewards you can earn
• Rewards post to your account automatically each month
• Get pre-qualified without affecting your credit score
• Make your first six payments on time and get a credit line increase
• Keep an eye on your credit information with free online monthly credit score tracking
• Choose your card design from our premium gallery
• Email or text alerts to remind you when your payment is due

First Progress Platinum Prestige MasterCard® Secured Credit Card

• First Progress Secured Card—The smart alternative to prepaid cards and expensive high fee/APR credit cards.
• Our card reports monthly to all three major bureaus and approval is based upon a fully-refundable security deposit.
• We can approve you at any credit score, no minimum required.
• No processing or application fees required.
• Full-featured Platinum MasterCard, accepted for car rentals, hotels, and millions of other locations worldwide.
• Refundable security deposit required at time of application, only apply when you have a min of $300 to deposit immediately from a checking account or debit card.
• Program not available in NY, WI, and IA.

Ref :  http://www.creditcards.com/bad-credit.php#ixzz2egXQVq9I