All You Need To Know About Business Credit Cards
The use of a business credit card is not only a convenience but also an excellent way to keep an eye on your expenditure. You are also likely to be popular with your accountant too as his workload will be lightened considerably by less cash transactions when he is preparing your tax paperwork.
However, whatever the reason or reasons you choose to have a business credit card, there are still things you need to know about the terms and conditions attached to such a card. For example the annual fee for a business credit card is higher than that of a personal credit card.
Annual fees can easily reach $150 per year, plus extras. If you only need a credit card to make simple purchases, pick a card with an introductory “interest free” time period.
This actually means that you will pay no interest whatsoever for a given period and this can be anything up to twelve months or so. This is super news for new businesses when all manner of setting up expenses are incurred ? it could almost be looked upon as an interest free loan!
It is very important to pay your credit card account by the due date, which is clearly listed on your statement to avoid often high late payment penalties. There are also some credit cards like American Express which require payment in full every month, so it is important that you understand the payment terms of any credit cards you are considering before you actually apply for one. You may also be penalized by an increase in the annual interest rate you are charged.
The Annual Percentage Rate (APR) is the amount of interest you are charged on the balance outstanding on your credit card. Choose a fixed rate as opposed to a variable one so that the company is not given the option to up your rate of interest for a late payment. This way you can at least keep an eye on your budget. There is nothing to stop you shopping around for a new interest free or low rate introductory offer card if you find yourself paying higher interest rates than you can afford. You are often allowed to transfer balances as an incentive to take out a new card and this can save you quite a large amount of money over a period of time.
Business credit cards can also be used to obtain emergency cash for your business. However, the interest charges for cash advances tend to be higher than for purchases and you will be charged this high rate for as long as the equivalent amount of your advance remains on your statement. This can end up being quite expensive so it is a good idea to minimize your use of the cash advance option to genuine emergencies.Your business credit card can contribute to the smooth running of your business, so when things go wrong they need to be dealt with quickly. It is a good idea to have the contact numbers of your credit card provider on hand so that you can solve problems without delay. You may also be able to find answers to any questions on your provider’s website. Look for a ‘Frequently Asked Questions (FAQ)’ page and scan the questions to see if your concern is listed. You may also be able to directly contact the company with your concerns via their website. However, as long as your credit card company has a reasonably quick telephone response time, it may be easier to simply contact them by phone. It is a good idea to test out a company’s customer service before actually applying for a card with them.
Be sensible when considering applying for a business credit card. For example if you are running a small DBA business, you may well not need a credit card. As the credit will be built under your social security number, you have to be sure than you can manage the debt in an effective manner.
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Prepaid Credit Cards For Your Kids Kids these days are becoming more independent at a younger age. For parents this means they have to be increasingly aware of exactly what their children are up to. This includes who they are spending their time with and what they are spending their money on. Money is usually a common topic of discussion between teenagers and their parents. The teen wants the freedom to go to the mall on their own to pick out what they like and the parent wants to be certain the youngster isnt being frivolous with their money. A great way to accommodate everyone and teach some fiscal responsibility is with prepaid credit cards for children. When most of us think of credit cards we think of adults in a stable job who can maintain their payments. The type of card that is suitable for a teen is very different. Credit cards for kids are actually pre-paid and that means that the child can only spend as much as is put on the card by the parent. If the child has a monthly allowance, the parent can then add the amount of the allowance to the card once a month and the child then uses it until the balance is at zero. Most of the prepaid credit cards for children are either a Visa or a MasterCard and can actually be used virtually everywhere a traditional credit card is used, including online for music downloads and to buy things. One of the benefits of this type of financial arrangement for a child is that it introduces them to the idea of balancing their budget. Since they can only use the amount that is designated to the card, theyll quickly discover that overspending isnt a good thing. Children with prepaid debit cards tend to be more frugal with their money than those carrying cash in their pocket. Although this type of card isnt going to help to build the childs credit history it is a good introduction to the world of credit. Prepaid credit cards for children arent subject to credit rating so your child wont damage their future credit standing or your own credit standing in any way. Instead it teaches them the value of every dollar which is a lesson everyone needs in life.
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