Before you begin comparing credit cards for your business, there are a few things you should keep in mind. Know before hand if you will be able to pay off your entire balance, beware of illusionary reward savings, and keep an eye out for account consolidation if you require it. I'll take a look at each of these in this article.

First, know this: the credit companies want you to keep a debt, because they can then charge you the interest, or APR, rate. They have every incentive to encourage you to use your card, and to do this they dangle the carrot of "rewards" in front of you. If you're aware of this, there sits a veritable bonanza of actual savings awaiting you. True, actual, savings. This is comparable to a loss leader in a retail store; the company expects to lose money on a product in the hope that you'll buy something more expensive, or in the case of a credit card keep a balance and have to pay the interest.

It's a tried and true marketing technique that has obviously shown its worth over the years as it's so widespread, but the discerning shopper can take advantage by not following the crowd. That said, some rewards can be tricky with their actual value.

For instance, on some credit card blogs there have been attempts at estimating the value of frequent flyer miles, as this is an ever-popular reward, especially on business credit cards. In general, the consensus seems to be that they are worth around 1 to 2 cents each. In other words, you will have to acquire about 25,000 or more to get one free domestic ticket, assuming a typical price.

However, some say that cash back rewards offer a much better deal. Especially in regards to services heavily used by your typical business. A good example is American Express's OPEN Network. As of this writing (credit cards are notoriously fluid, so check the current terms to be sure they are still accurate), the OPEN Network offers 3% off the purchase price of JetBlue and Delta tickets. Not only that, but they also offer discounts for commonly-used business services such as FedEx.

Calculate how much you'll be using the services they offer discounts on, and see what the savings amount to. In many cases, you may find that you'll save more on cash back rewards than you would with frequent flyer miles. So be sure to take that into account.

The third feature you should keep an eye out for is account consolidation. Some business credit cards offer the option of getting multiple cards on the same account; i.e. cards for employees. For ease of accounting, you can often keep these cards all on the same bill. Many business credit cards offer expense reporting as well. These are very business specific features that you yourself will have to explore, but they can offer a terrific amount of convenience.

So before you compare, make sure you know whether you will be able to pay off your balance in full or not. If not, you may want to consider going with a charge card. If you can pay off the balance, then be careful in selecting rewards systems, especially in regards to frequent flyer miles. And read the terms carefully for the possibility of account consolidation for accounting purposes. All of these options can add up to a quite convenient and useful credit card for your company.

One of the most important things for a child to learn in order to become a successful adult when he grows up is not taught in school. This is a very serious omission that parents need to be aware of and that they, as parents, must address if they want their children to lead happy lives as adults.

The concept that I am talking about is credit and how to manage it wisely.

I cannot understand why this crucial topic is not covered in schools today but I believe that it is imperative for parents to teach their children how to handle credit.

How many people grow onto young adulthood and immediately obtain and then misuse credit cards? I would venture to say that a large amount of today's young adults have buried themselves in debt that will take years to overcome.

Credit card companies make it very easy for college students to obtain credit cards. But if you stop and think about it, most college students do not have the wherewithal to pay for the credit card debt that they can so frivolously incur.

Many young adults today do not even know how to balance their checkbooks. I used to constantly prod my son to keep his checkbook balanced, making a joke out of it by calling it "Big Boy Checking". But it's not a joke when a young adult keeps throwing money away for overdraft fees caused by an unbalanced checkbook.

The same goes for credit. Young adults who spend money by paying for purchases with credit they cannot afford are making the same sort of mistake. Credit is something that is too easy to get and too easy to abuse.

Telling your children to avoid credit entirely is not the answer either. Credit needs to be established at an early age to have for emergencies for instance. But obtaining credit for future needs is different from credit abuse.

When a person files for bankruptcy a note will be placed on his credit report where it will remain for the next ten years. So does this mean that you are unable to obtain any credit until this period has expired? Not at all. In fact, you are likely to receive offers of new credit cards shortly after your discharge. But you would be well advised not to jump on the first offer you are sent since there will most likely be better terms available if you take your time.

To understand why this is so it is necessary to look at the way that people who have been discharged from bankruptcy are regarded by the credit industry. The first thing to realize is that the credit card industry is a very competitive market where card companies are fighting for new business. People with bad credit records including discharged bankrupts form a significant sector of the market, so products have been developed that are suitable for people in this group.

Although a bankruptcy remains on your credit report for ten years, its effect on your ability to obtain credit starts to diminish straightaway. In some ways a discharged bankrupt can be a better credit risk than he was before the bankruptcy because he will have less liability for outstanding debts. This assumes that you adopt responsible credit habits such as paying your bills on time, using only a small portion of your available credit and not applying for too much credit at once.

While you will be able to obtain a new credit card after discharge from bankruptcy, it will be more expensive with a higher interest rate and extra fees. Expect to pay a setup fee as well as annual charge. A secured credit card is your most likely option where you pay a deposit which equals your credit limit. In the event of default the company will use your deposit to repay the loan. But provided you use the card in a responsible way and make the payments on time, you should be offered a transfer to an unsecured card after twelve months or so.

As you see, obtaining a new credit card after bankruptcy will not be difficult, and will be an essential step on the way to rebuilding your credit score. But if easy credit on too many cards was the cause of your bankruptcy, pause to reflect before you go down that route again.

Most of us have limited resources to work with, and need to make our money stretch as far as possible. When it comes to our credit cards, finding the best interest rates possible will have a very positive impact on our financial picture. Here are some tips on how to lower credit card interest rates and minimize their impact on your monthly budget.

Before you can have any meaningful discussions of how to lower the rates you pay for credit card interest, you must first have a firm grip on what you are currently paying. Pull out the agreements on each of your credit cards and create a spreadsheet that will tell you at a glance what rate of interest you are paying on each of your current cards. Don't be surprised if you find that you are paying a higher rate of interest on those department store credit accounts. Also, you are likely to find some variance in the interest rate you are paying for your major credit cards as well. Also, document any cards you have that will allow you to transfer balances from other credit card accounts.

Next, contact the credit card providers that have the higher interest rates. Let them know you are reviewing your current interest rate on your account and want to see if they can match the lower rate you have with another account. Often, if your credit rating is sound and your payment history is consistent, you can obtain a lower credit card interest rate. If one is extended, then make sure you will get something in writing to document the new rate, as well as confirming that it is a permanent change and not just a promotional offer that will expire in a few months.

Should you find that the cards with higher rates of interest do not want to work with your for some reason, then contact those who have extended you a lower rate of interest and confirm they will allow you to transfer balances from other accounts. If so, transfer the balances and then close your higher interest account. In the long run, you will save enough money on interest to allow you to pay off your cards more quickly.

As a rule, financial institutions do not automatically lower credit card interests rates, simply because you are a good customer. Often, it will require a proactive call by you to get the ball rolling. Once you have done so, you may be surprised how many institutions are willing to extend a lower rate of interest just to keep your business.

0 Credit Card Interest Rate

What to Watch for with a 0 Credit Card Interest Rate

On the surface, the idea of zero interest on your credit card sounds like a dream come true. However, before you jump at the chance to sign up for a 0 credit card interest rate, there are several things you should look for. Here are some tips to help you make the right decision when it comes to any credit card offer that advertises as carrying no interest on your balances.

The first point to consider is the duration of this zero interest rate. While there are plans out there that will not charge you any interest as long as you make at least the minimum monthly payment on time, it is important to read the fine print before you sign anything. By doing so, you may find that the no interest rate offer only allows you to have no interest applied to outstanding balances for the first six months you have the account. After that, it may automatically be adjusted to an interest rate that is higher than what you already have in place with another credit card provider. This type of promotional approach is not uncommon at all. So don't breeze past the terms of service and assume it is the same old thing. It may not be at all.

Another thing to watch for with zero interest rate offers on credit cards is the ones that can change for the slightest infraction. As an example, you are a day late with your payment. Due to this, your account loses its 0 credit card interest rate status and you now have a credit card with a hefty interest rate that will be applied from now on. Once again, this is the sort of thing that you will find included in the terms of service, so read them before you sign up for anything.

There are a few plans out there that will allow you to have a no interest account as long as your balance is kept below a certain level. But once you cross that line one time, an interest rate kicks in and will be applied from now on. Reducing your balance will not restore the zero rate of interest. You will be stuck with what will probably not be a competitive interest rate for as long as you have that credit card account.

When evaluating any offer for a 0 credit card interest rate, make sure you understand fully what your obligations are, when it comes to keep that rate. Should you decide that the terms are something you can live with, then by all means take advantage of the offer. Just be sure you know exactly what you are committing to before you ever open the account.

Credit is the manner in which the public is made aware of how an individual/family pays their debt obligations. Sounds, simple on the surface. In fact, mortgages are made based on the history of how someone pays their credit obligations. There is a fallacy in this system, but unfortunately we all must live by it. As an example, lets say that someone owes $50,000 on a credit card. Now here is another family that owes $200 on a credit card. Common sense would say that if both accounts were late, than both accounts would have their credit scores reduced. That in itself is true. But let’s look into the scenario.

· Doctor Jones has a credit card with a $50,000 dollar limit. He misses one payment and his credit score drops perhaps 80 points.
· Joe Johnson owes $200 on a secured credit card and he misses one payment of $10.00.

The reality is this. It does not make any difference as to how much you owe, but when you are late. A $200 credit card that is late has the same penalty as a $50,000 credit card that is late. Is that fair? Yes, it is. Each consumer has their own personal reasons for their credit limits BUT, the penalty for being late is the same regardless of HOW MUCH THE DEBT IS.

The problem with our system, and we cannot change it without a drastic adjustment in Congress is the mere fact that creditors utilize a combination of un-ethical and illegal practices to collect debt. Do not get me wrong. There are some collectors that adhere to the law. But, there are also many collection agencies that “skirt” the law. In 2005, the highest incidence of complaints to the Federal Trade Commission was the violation of creditors/collection agencies in collecting debt.

Understanding the system, your consumer rights, how to negotiate and addressing the morality of debt is a task to say the least.

The system does NOT work. PERIOD. We hear many advocates of the collection industry maintain that for every dollar collected that simply means less dollars that the general public has to pay to subsidize bad debt. That simply does not wash. When a company loses money, the loss of income should not be subsidized in any fashion.

Now, lets dwell on the usury rates of credit cards. It was during the Carter administration that a poor New York ethnic group was almost put out of business. Remember the old adage, “If you don’t pay, you will get your knee-caps busted”. Well, if you do not remember, the prime rate in the late seventies and early eighties went up over 20%. Yes, the feds had the prime rate higher than ”local juice”. Wow, what a disaster. Now here we are, many years later and the credit card companies are charging average Americans a whopping 24% rate of interest for the simple act of using money (credit) After all, the credit card companies do NOT put up any money. They simply guarantee.

I remember the old street rule of “72”. It meant that IF you had $1,000 and you had it in the bank and the bank was paying a 4% interest on your savings account you were really secured. That was and is an absurdity. The rule of “72” says that if you divide “72” by 4% the answer is (18). That means it takes (18) years for your $1,000 to double. So, here we have credit card companies extracting 24% from average people. Now put the pencil to that. Divide 72 by 24 and the answer is (3). Yep, it only takes (3) years for the credit card companies to double their money, that , they never put up a dime in the first place. They collateralized the paper.

That, is one of the biggest reasons that average people end up with credit problems. Because, they simply cannot afford the interest. I can tell many horror stories about, families that received a credit card in the mail. BIG DEAL. The card said “you have a credit limit of $300 but in fine print they also said you have an activation fee of $97 plus an annual fee of $55 plus, plus, plus. These poor folks thinking that they had a new credit card with a $300 limit broke the speed limit to Wal-Mart. Guess what? On the very first purchase they exceeded the limit and they were charged a $29 over limit fee. But, when they got the first bill it said “pay only $10” This became the trip to disaster.

When they got their statement they were outraged.. They could not believe that they were over the limit when they only spent $150. So, begins the trip to disaster. The credit card company has them locked in. Not only are they over the limit but many, many dollars in penalties. I get sick, when I think of the system. Can we help these folks? Yes, by CREDIT EDUCATION.

If you are like most people, then chances are you have a credit card bill or two. For some, credit cards work well and they build their credit with them, but for others, life events may make it hard for them to keep up the bills including those essential credit cards.

There are legal credit repair options for those who can't seem to stay on top of their game. You have most likely have heard the scenarios or have seen commercials about the people who have bad credit. Bad credit comes from not paying bills on time or at all.

There are legal credit repair options to help you fix your credit and get back on your feet.

Most often, the reason you fell behind on bills was no fault of your own, which makes it harder to cope with as you had no control over the situation. Many people do not realize that they have the control to fix their credit.

There are many options to choose from such as credit counseling, debt consolidation and even credit repair kits. You can check with local agencies to see who offers free credit counseling or even look in the phone book or local newspaper for lawyers who offer programs to help you wipe away and repair your bad credit score for you.

There are many legal credit repair options out there for you to choose from and most will be willing to work within your means helping you credit a budget getting your behind bills paid and your credit back in shape, all without draining your wallet or bank account.

The internet is also a good way to research which option is best for you. You can check out the free credit repair kits, which is basically what the legal companies do for you the only difference is that you contact your creditors yourself rather than having someone do it for you. They come very detailed and even have samples of the letters you should use to send to the creditors.

Changing your life for the better doesn’t have to be a hard task. You just have to know where to look for the legal credit repair options to get help. If you have fallen into the bad credit pool and are drowning in bills, then it is time to take control of your future and clean up your credit.

Do some research and a little bit of homework and see which option is best for you. Whether you choose the debt consolidation or go with credit counseling, the decision is yours. Either way you go, it will be a good first step to taking control of your future.

This was so popular and a lot of folks missed it. So we are going over this article again. (it really can help many of you). This is an actual copy of the Federal Trade Commission in action. Perhaps many of you have been faced with this same problem. You have an old account that is due to be automatically removed by virtue of the Statute of Limitations. Yes, the seven-year clock is getting ready to expire.

But lo and behold, up jumps this company that has just purchased this old account and are circumventing the law. How? Simple, they just put a new date on your credit report relating to their purchase of the account. This now gives them another seven years to either force you, harass you or do whatever they can to force you to pay. Lets just say that you were put into a credit prison for (7) years. You accepted your fate. But about the six year and six month time you really are aware of when your sentence ends. BUT, here in the middle of the night, without your even knowing who or how, someone adds more years to your sentence. Are you mad? You bet. What can you do? Up until you read this article you might not have even been aware such things can happen. YES, they most certainly do.

It is illegal as hell! Here is proof of this company being caught by the Federal Trade Commission. Remember the law works for you. If you have this situation, you can always download and reprint this letter to send to them. Don’t be afraid. This is public information. Anyone can subscribe to the Federal Trade Commission website and get these rulings. So go ahead and use the power given you under the Fair Credit Reporting Act. This letter appeared in August 2000. The following letter is reprinted from the FTC website.

California Debt Collection Agency Settles FTC Charges Of Fair Credit Reporting Act Violations The Federal Trade Commission today announced a proposed settlement with a California-based debt collection agency, Performance Capital Management, Inc. (PCM), under which the company would be fined $2 million and enjoined from what the FTC called "serious violations" of Section 623 of the Fair Credit Reporting Act (FCRA). According to the terms of the proposed settlement, payment of the fine would be waived due to the company's poor financial condition.

The FCRA regulates the collection and dissemination of sensitive information about consumers by credit bureaus and other types of consumer reporting agencies. Section 623 was added by Congress in the 1996 amendments to increase the accuracy of consumer reports by imposing specific duties upon any entity that furnishes information to a consumer reporting agency. The settlement announced today is the Commission's first enforcement action under Section 623.

PCM is a California corporation with headquarters in Irvine, California. It specializes in buying and collecting consumer debt that has been charged-off by the original creditor as un-collectable. PCM is currently in bankruptcy, and the Commission has waived the $2 million civil penalty based upon the financial condition of the company. In its complaint against PCM, the Commission alleges that PCM violated a number of requirements imposed by Section 623. First, the complaint alleges that PCM provided credit bureaus with inaccurate "delinquency dates" for its accounts. Section 623 defines the delinquency date for an account as the month and year that an account first became delinquent.

This date is important because it is used by credit bureaus to measure the seven-year period that negative credit information maybe reported under the FCRA. According to the Commission, PCM systematically reports accounts with delinquency dates that were more recent than the actual date of delinquency, resulting in negative information remaining on consumers' credit reports long beyond the seven-year period mandated by the FCRA.

The Commission's complaint also alleges that PCM violated Section 623 by ignoring or failing to investigate consumer disputes referred by credit bureaus, and by failing to notify credit bureaus when consumers disputed collection accounts with PCM.

The proposed settlement would require PCM to provide correct delinquency dates when reporting collection accounts to credit bureaus. The agreement also mandates the proper investigation of disputes. Where PCM learns during an investigation that account records no longer exist for a disputed debt, the company must delete the information from credit bureau files within five days. Finally, the agreement would require PCM to report as "disputed" all accounts where consumers have disputed the information with PCM.

The Commission vote to file the complaint and the proposed settlement was 5-0. The proposed settlement will be presented to the U.S. Bankruptcy Court for the Central District of California, which is overseeing PCM' s bankruptcy. If approved, the agreement will be filed in the U.S. District Court for the Central District of California.

Regis Sauger has contributed the opening portion of this article and makes you aware of how the law can help you with information that is public knowledge. Regis Sauger takes no credit for the materials in the reprint, but has provided all readers with information that otherwise they might not learn about.

Check your annual credit report and receive a free instant credit report when you use the Annual Credit Report website. This reputable website has the recommendation from the government as the only place to get your information free and quickly. The online credit report allows you view online or print out the records. This helps when comparing all three credit-reporting agencies and the information they have about your credit history.

Before you consider buying a house or getting an insurance policy, you should check your credit report at least six months ahead of time to see if you need to clean up any areas of the report. The annual credit report allows you to check for mistakes, such as wrong name information, marital status, payment history and make sure items are removed from your history as required by law.

Because you receive the annual credit report free, you have no reason not to check your credit history yearly. The online credit report helps people protect themselves from identity theft and fraudulent credit applications. If you see something that appears suspicious, you can contact the credit agency reporting the inconsistency and inquire about the issue that you have a problem with as soon as you discover the item.

Your credit history allows lenders to see if you are a good candidate for a loan or credit card. They just your application by the amount of credit you currently have and the available amount of credit they may have to offer you at the time of the application process. By keeping your credit information, correct and up to date helps secure a better financial future. The annual credit report has made it easier for people to track their payment history and amount of credit applied for over the years.

The free instance credit report has helped thousands of people find inconsistencies in their credit history, which they in turn need to have corrected in order to secure their financial freedom and buying power. With your free credit report, you may order online and receive it in a matter of minutes or by requesting it by mail. Either way you choose Annual Credit Report supplies you with the necessary information supplied from the three top credit agencies.

Many people feel that because they never had a credit card or a loan, that they do not need to view their credit history. That viewpoint of your credit history is what allows people to use your identity to acquire credit in your name. You need to check for correct information even if you have no credit that you know about, maybe someone else does. Get your annual credit report free and see how others view your credit historys.

Credit card companies need to secure their credit loans they give you, of course, and if your company is anything less than a large and established C corporation your personal credit history will be used in the approval process. If this is the case, and you have bad credit, you have a few things you can still do to get a business card. You can get a secured business credit card, a high interest rate card, and you can also work to build up your business credit rating as long as you use the correct cards. This article will explore a few options for getting approved for a line of credit for your business.

First of all, if you are the owner of a well-established and large C corporation, there's a slight chance you could qualify for a business credit card without having the credit company look into your personal credit history. If, however, your company is new and small, or has a small beginning investment, the business owner will need to have his or her own personal credit score examined before approval for a business credit card and will ultimately be responsible for any debt if the company goes out of business. In addition, if you have a bad credit rating, you'll encounter problems getting approved. If this is the case, you'll need to explore a few options.

The most common way around this problem is to get what is known as a "secured business credit card." A secured card is backed up by a savings account. The amount of money you deposit into the savings account is generally equivalent to the credit limit the company will give you, although some require more and some require less. This way the credit company is insured that the debt will be re-payed. The problem with this of course is that you may need credit for business expenses that you do not have the cash for yet. In this case, you may need to look at high APR cards.

An APR, or annual percentage rate is, like with a personal credit card, the amount of interest you pay on the credit loan if you do not pay back your entire balance at the end of each month. Normal sound credit card hunting involves looking for a card with a very low APR, but if you have bad credit you may be stuck with a high APR for awhile. If you have bad credit, the company may still issue you a card but with a much higher than normal APR, and over time as you repair your credit and build a business credit rating, you will be able to get a lower percentage rate. Building your business credit rating requires one important criteria to be met.

And that is finding a credit card company that actually reports to the main credit bureaus; namely Equifax, Experian, and TransUnion. Your business credit company must report your credit to one of these agencies, otherwise you will never proceed to build a good credit rating for your business. The problem is, there are several cards that do not report to these agencies. For instance, the popular American Express does not. This is fine if you already have good credit and do not need to rebuild it, and AmEx has some of the better reward offers for a business.

So if you have bad credit, first figure out if it's likely for the credit company to investigate your personal credit score. If so, then you need to shop around for a secured business credit card that you can afford and that still allows you to afford what you need for your business. After you do that, make sure it's a card that reports to Equifax, TransUnion, or Experian so you can slowly rebuild your bad credit and eventually acquire a nice low APR business credit card, one that you can use for your company's business.