Pay Your Recurring Bills Every Month Using Your Credit Cards

Entrepreneurs hail from hundreds of disparate cities, industries and backgrounds, but one thing they have in common is an appreciation for plastic. Paying by credit cards is convenient, it allows business owners to maximize their cash flow, and it offers the accumulation of rewards or points that can add up to thousands in free services each year. For regularly recurring bills, however, nothing beats the convenience of automatic bill payment with credit cards, the kind typically offered online through consumer and business checking accounts.

Now, paying recurring bills automatically by credit cards, which offers the best of both worlds, is catching on big with small businesses. Over the past two years, New York City-based American Express has seen its charge volume for automatic bill pay for small-business customers grow by 30% per year, says an official American Express. The company sees it as a way to replace check-writing, with added benefits. It helps [business owners] consolidate spending on the credit cards and lets them better track and manage cash flow.

American Express and its rivals in credit cards market, MasterCard and Visa, have all developed sophisticated online reporting tools to enable users to keep track of expenses and slice and dice them for budget purposes. Looking at a monthly or quarterly statement, business owners can see how much they're spending on utilities or subscriptions, or on overnight deliveries, say officials of global product development at MasterCard International in Purchase, New York. That can potentially help with negotiation with vendors when it comes to rate reduction.

Experts say, convenience and the consolidation of expenses were the key reasons to sign up for automated bill payment through credit cards with half a dozen recurring vendors. For example, a small company that employs only four full-time people but boasts several high-profile clients, and they only has part-time financial help from controller and bookkeeper. So, for companies like this, anything that can save time is worthwhile. This minimizes the paperwork. Time is money, and writing checks costs money. Then again, credit can cost money, too, if balances are allowed to slide. One finance charge or late penalty can erase a month's benefits of credit cards use, so it's only worth doing if the balance is paid in full each month. In an effort to minimize debt, many entrepreneurs are turning to debit or check credit cards instead, which offer a lot of the same benefits.

There's an overall concern about accumulated debt among small-business owners, says a senior officer of Visa USA in San Francisco. She notes that business credit spending is up, but Visa has seen both business credit and debit growing by double digits over the past few years. Business owners can sign up for automatic bill pay with Visa and earn points or rewards through the Visa check card, just as they would with credit cards. And through its online reporting tool, Visa Information Source Select, launched this past summer, entrepreneurs can view all their credit and signaturebased debit transaction information in one place.

One of the best ways to build a positive credit standing is to pay your bills on time. Building a history of prompt account payments shows lenders that you are a responsible borrower and gives them the reassurance to lend or extend a line of credit to you. In the same regard, late payments on your credit accounts can lower your credit score. But even if you have a poor credit history, or no credit history, the fastest way to get lenders and creditors singing praises of your credit standing is to make those payments on time -- every time with the help of automatically paid bills using your credit cards.

With no checks to write, no stamps to buy, now, you can have your bills paid automatically with your credit cards. You can charge your taxes either by telephone or Internet through a credit card processing service provider. This service will allow taxpayers to charge their taxes at no expense to the Township. A convenience fee will be charged to the taxpayer and will be clearly disclosed to the cardholder before completing the credit card transaction. You select Automatic Bill Payment for paying cell company's bill, your credit card will be charged on the payment due date of your bill. For those who want to pay everything automatically using their credit cards, the wait will be a little bit longer. The list of merchants set up to handle automatic bill payment is certainly growing, but it's only a fraction of the vendors out there that business owners have to pay each month.

New Credit Card Identity - Beware of This Dangerous Game

Those who file for bankruptcy or with bad credit generally get duped into a credit repair scheme called file segregation, which is a credit fraud scheme. The Federal Trade Commission (FTC) provides information about file segregation to you.

What Exactly Is It

This scheme offers to get rid of negative credit information by giving you a new credit identity. This is illegal and you could be charged a fine or end up in prison. 

Credit repair companies advertise to replace your poor credit report with a new credit identity that could help you apply for credit, which you would not have got with your earlier credit report. On signing up for the paid service, you would be required to apply for an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). EINs are Social Security numbers for businesses to report financial information to the IRS and Social Security Administration. 

On receiving your EIN, the credit repair service asks you to use instead of your Social Security number when applying for credit card. You will have to change your mailing address and credit references too. Credit repair service often make a variety of false claims to lure you get a new credit identity.

These false claims and great benefits of a new credit identity, should be enough to you to tell that it is a fraud. 

File Segregation Program

You can't get credit for 10 years after bankruptcy as creditors have specific criteria for granting credit. If your application is rejected for bankruptcy, another may grant you credit even if you filed for it. With a new better payment history, your chances of getting credit will probably increase with time. The file segregation program is affiliated with the federal government but the latter is not involved with companies offering such programs. 

This program is legal and making fake entries when applying for loan or credit is a crime. It is a federal crime to misrepresent your Social Security number and to obtain an EIN from the IRS under false identities. You could be charged with mail or wire fraud if you use the mail or the telephone to apply for credit with incorrect information. File segregation can also constitute civil fraud under many state laws. 

It is illegal for credit repair companies to make false claims or charge a fee before offering their services and have to inform consumers about their legal rights in a written contract that defines their services, duration of process, total cost, and guarantees offered. These contracts must specify that consumers can cancel within three days free of cost. 

You have the right to sue in federal court and recover your actual losses or get company to reimburse the amount you paid whichever is more. You may seek "punitive" damages sums of money to punish the company. 

You can contact the FTC at their toll free no: 1-877-FTC-HELP (1-877-382-4357). Although they cannot resolve each consumer's credit problems they can take action against a company for a number of violations.

Psychology Behind The Use Of Credit Cards

Credit cards are frequently being used to meet those of our demands which can't be realized by our monthly budget. The psychology behind the use of credit cards is the frenzy to get hold of the desired products and services. Even discreet people use their credit cards indiscriminately. The result: we end up with unnecessary debt.

Credit cards are a veritable fire that burns if not used properly, substantiated by the average credit card debt in the US of $6000. This is more than 10% of the average gross income of the country. This leads people to thousands of dollars in interest payments, boosting up the bottom lines of banks needlessly. Unfortunately, most people fail to realize high cost of carrying a credit cards debt.

Urge To Splurge 

Basically, in this materially-driven world, it is the urge to splurge that drives regular people crazy with their credit cards, buying things you don't need. Many credit card holders justify their urge to splurge with the blunt reply: "I deserve this."/span> 

Usually, people flash credit cards to lead a certain lifestyle. When the cards run out, so does the lifestyle. If you lead a life on borrowed money, it's going to gobble you up. 

Financial illiteracy is the reason behind unscrupulous credit card use. Many people don't know how much they earn monthly and don't have budget to meet their needs. They simply don't understand the increasing interest charges they have to cough up against each purchase with credit cards. Maximum they can see only $40 a month or $25.What they don't do is to look at their overall indebtedness. The don't see that a hefty 18% annual interest rate doubles in four years. 

Time To Get Out Of Debt 

Credit cards are useful in certain circumstance, such as vacations, and keep you out of some unforeseen expenses. However, it is high time to get out of the debt trap of credit cards. Limit the number of credit cards by deciding how many cards you actually need. 

If you own credit cards, you should keep those credit cards with high APRs to a minimum balance, as these cards will charge you hefty interest rates. To get out of the debt trap, decide how much of your debt you can pay off immediately. If you're in severe debt trap, you won't be able to get out swiftly unless the substantial repayments are done on a regular basis. Suppose you think that you'd be comfortable repaying $500 every month, try to repay $600 or even $700. 

Keep in mind that having money or lack of it has never been a parameter to judge or evaluate your true personality. Your value as a person has nothing to do with your money. Once you get out of such narrow meaning and start believing that money is no longer related to your sense of self-worth, you will successfully pass the psychological barriers of using credit cards, which kept you from astutely managing money and making a lot more.

Reducing the Debt on Your Credit Cards

Many Americans have the problem of spending more money on their credit cards, than they bring in each month. What this causes is an increase in debt because, when you can't pay all of the original balances on your credit card bills, they begin adding up in interest very quickly. Before you know it, you are thousands of dollars into credit card debt and are having a terrible time trying to find your way out of it; but, there is a way to stop this before it happens. The best route out of this situation is to find ways to decrease the amount of money that you spend on your credit cards, so that you do not end up in this kind of debt situation again.

Firstly, you need to find out how much extra income is going out, as opposed to how much is coming in. This means taking all of your bills, including money for food, gas, and other things that you buy on the side, and deducting that from your monthly income. If the number you get is negative, something needs to be done to get your situation under control before you get any further into credit card debt. You should start by determining what extra expenses are in your life that you really don't need. This includes premium cable channels, or even cable itself, unneeded cell phone plans (this can be especially important if every single member of your family has their own plan), and other non-necessities that you spend a significant amount of money on each month.

Once you have discovered where your downfalls lie, it is time to start correcting them so that you can spend less money on your credit cards each month. First, go through and determine which of these non-necessities are used least. For example, if your household has every cable channel available, but no one in your family is ever home, it may be a good idea to downgrade to a basic cable plan. This way you still have options when you are home, while not wasting all that money on something that no one is ever home to watch anyway. This also goes for cutting out any additional cell phone bills that are not needed. If your children have cell phone plans, it is best to get them the minimum amount of plans they have or, better yet, a pre-paid phone, so that they can only spend so many minutes and then, if they want more, they have to buy them. You may even want to consider getting them one of those "kiddie" phones if they are under the age of 14 or 15.

If you are in a situation where money is really tight and there are no real "extras" -- like those that we have already mentioned -- that you are putting on your credit cards, it may be time to find ways to cut down on unnecessary living expenses. This can include cutting coupons for groceries, not hitting the fast food restaurant as often, and doing little things like turning off the TV or light when you leave a room. Even though they seem like little tiny things, they do at up -- so much so that they can put up to $100 or more in your pocket every month, just for cutting out these things that you once deemed "necessities".

The more you are able to successfully cut out of your everyday activities, the more money you can spend on decreasing old credit card debt; instead of creating new credit card debt month after month, which then gets piled onto this old debt. Once you start to see your credit card debt significantly decrease, it will give you the motivation you need to carry on.

Risks and Benefits with Credit Cards

Having a credit card is a boon as it has many advantages. It eliminates the risk of carrying cash and it also does away with the need to go to the vendor as on-line shopping with the help of the credit card provides a hassle free shopping experience within the confines of one's home. The credit card, thus, minimizes personal contact during purchases and does away with the need to go out of the house for shopping.

By making regular purchases through the credit card and paying off in time, one can improve one's creditworthiness and increase the credit limit. As the payment is guaranteed, the vendors prefer to make sales against credit cards. A credit card is a plastic card issued by the credit card company, and it allows you to make purchases without paying any money to an extent, which is predetermined. As soon as you pay back the amount you have spent or a part of it, the credit limit is automatically replenished.

A due date is normally stipulated for paying back at least a part of the amount spent by you and it is necessary to pay back by that date. In case of failure to do so, the company levies a finance charge or interest on the unpaid amount.

What are the risks in having and using a credit card?

Temptation to overspend and live beyond one's means is basic to human nature and it can be indulged very easily with the help of the credit card. Not being able to pay back in time can prove damaging for one's creditworthiness and make it difficult to obtain loans in the future. The risk of identity theft is always there as others may be able to get your credit card details and use them to make purchases on your behalf. It is an uphill task to prove that you had not made the purchase and even if the credit card company does not hold you responsible for such a purchase, you will not be able to use your credit until the investigations are over.

Who is eligible to apply for a credit card?

You must ensure that you have enough regular income to be able to apply for a credit card. You also have to decide the credit limit that you wish to establish. However, this should not be more than your disposable income. The type of credit card required by you will also have to be decided by you. You must also find out whether you will be able to withstand temptations and not buy to an extent, which you will not be able to pay back in time and thus lose your credibility. If you think that you cannot do so, it will be better not to go in for a credit card. You should be honest with yourself regarding your ability to ward off temptation and live within your means, before going in for a credit card. 

It is very difficult for an adult in today's society to maintain the lifestyle they want without credit. However, it is just as easy to find yourself drowning in debt if you don't have the discipline required to handle credit responsible. Be honest with yourself when contemplating getting a credit card, and you will make the right decision.

Safeguard Yourself from Credit Card Thefts

A lot has been said and very less is done about identity theft. The phenomenon is taking the whole world into grips day by day. Credit card fraud has become so very common nowadays, and the mention of it doesn't take any one of us to the surprise. Although not many people have experienced the similar strife, but it is not beyond the imagination what the circumstances can be, or can become, at the time of a credit card fraud.

And it doesn't take long for you to come into its grips. Here for instance:

You get a mail from a travel and tour agency. You fill out the form along with your credit card number to file your membership. And what happens after that gives you an ultimate shock for the rest of your life! Your credit card has been hacked, and you get charged for the vacation for which you never went. 

Before you make a call to your credit card issuer about the identity theft, the game is all over. 

What Happens- In Reality! 

When your card is swiped, the person or the thief can store all your personal information in the small hand held device known as a skimmer.Just an extra swipe and you are robbed out of your credit account. 

If you fall prey to identity theft, the first thing is to call your credit card issuer and inform them of the theft. The privilege is all yours, as all the credit card companies pay for all kinds of identity thefts, and the credit card loses. But this doesn't mean that you are spared of the theft. The creditors will pose you with heavy interest at the time of the payment of your bill, which can give you another shock of your life. 

In another kind of an identity theft, you can be robbed of your social security number, and the thief can open a new account in your name. It is possible that the thief can also use your name mentioned in the card, to conduct all the scams and forgeries. You can save these credit card frauds only by keeping your eyes and ears open. There are many steps by which you can take some precautions against these credit card frauds. 

Steps:

It is beneficial not to carry all your credit cards, your social security card, your birth certificate and all your other personal documents along with you. Always use your credit cards, to handle your cash transactions. The other documents like credit card, debit card, and ATM cards should be maintained properly, and should be updated from time to time. It is very essential to keep these documents in safer places. If you possess a credit account that is unused from many days, it is safer to close that account.You should keep track of all your credit card transactions, and make sure to pay it back as soon as possible. 

Most important, you should never respond to the e-mails and should never fill out any form, which asks for your credit card number or any such details. If you receive any charges in your credit card bill that remains unexplained, call the credit card issuer, immediately. 

In the End- 

Be smart enough to understand and learn about the credit card frauds and the identity thefts.

Save Money With Chase Credit Card

Chase credit cards are incorporated with all the facilities of discounts and rewards. Chase credit cards have created a sensation in the world of credit cards with their unique schemes and interest rate policies. Chase credit cards offer 0% interest rates on all its purchases up to a time period of six months. With chase credit cards repayment of loans becomes affordable, as the credit cards are rendered with 0% interest rate up to the time period of six months.

However, the interest rate of the Chase credit cards rises from 0% to 8.99%, after six months of time. The rate is much lower as compared to the interest rate of other credit cards. Chase credit cards are free of its annual fees as well, and that makes them stand out of the herd of other credit cards. No annual charge implies free credit card membership. Above all, by availing Chase credit cards you can get the credit limit up to $100,000. 

Unlike other credit cards, you can enjoy lot of discounts, savings, and promotion when you go in for chase credit cards. Another advantage of Chase credit cards is it rewards you with good credit report. As the interest rates of these credit cards are lower, therefore you can pay the monthly debts easily, and this practice will enhance your credit report. 

Services of Chase credit cards are often personal, whereby they offer you easy money transfers. Among other personalized services, chase credit cards provide you with prepaid credit card schemes. Credit cards are designed to meet your credit and financial needs as well. If you are kind of consumer who can save money in an efficient manner, then Chase credit cards are most appropriate choice for you. 

Chase credit cards are only granted to those who enjoy a good credit report. When you go in for Chase credit cards, they grant you rewards and discounts for your good credit habits. And if you possess a good credit history then credit card authorities also levy you with lower interest rates. The interest rates are lowered at the time when you make the purchases with your credit cards, and you can save lots of money at the end of the day. 

When you go in for chase credit cards, the creditor provides you with lot of discounts and rewards. Chase credit cards also provide you with travel reward schemes that prove beneficial to you when you travel, as Chase credit cards provide consumers with travel rewards. The interest rates of travel rewards scheme are 0%, which do not change up to one year. After the time period of one year the interest rate increases, but that rate is definitely low, as compared to other credit cards.

Save Your Green Bills By Using Credit Cards

Now, you can save your green bills by using plastic money or credit cards. You can always avail credit card help to spend your money by the credit cards in an easier manner. In fact, you can save a lot of your money by using your credit cards judiciously. The right kind of credit card can bring about a lot of change in your spending patterns. Let us take the example of Josh Smith. Josh has a Citi Advantage card. He gains free air miles every time he uses his credit card. By the end of the year, he accumulates enough points to arrange for a free air travel vacation for his family and himself. There are many such examples and many credit cards that offer different schemes to their customers. You can pick and choose the credit cards that suit your needs the most.

If you travel a lot in your car, you can choose the gas cards and even a Driver's edge card. If you are looking for buying yourself a new car, you can acquire a GM Visa card. The percentage points that you earn toward your card can be used toward buying a brand new General Motors car. In case you have lower points, you can use them toward availing a discount on your car. There are many such suggestions that you can use and gain benefits from your credit cards. Credit card help counselors or providers also suggest such means to you about availing the maximum you can from your credit cards and paying them off on time.

There are many ways of saving on your credit cards. You can avail many rebates or discount on your everyday buying. You can save a lot on hotel and car reservations as well. The credit card help agencies teach you the different ways of deciding about the kind of credit cards you want to buy and even the ways to save your money on them. 

Another thing that you learn by availing credit card help is that you can choose the credit card that has a low interest rate so that you do not get into trouble as far as repayment is concerned. There are many credit card companies that offer you many discounts along with low interest rates. 

You can avail credit card help to save your precious money over the course of a year with a low interest rate credit card. The advantages that you would get in return will be lower payments and you will be able to pay off your debt on credit cards or balances sooner. This is a good sign because more of your money would go toward paying the balance rather than the interest! 

You can save money by following these credit card help steps: you can go through different saving promotions on credit cards that are offered all through the year and decide what suits you the most. A credit card can prove very beneficial for you for many reasons. You should use the credit cards to gain the most you can out of them. Many credit cards also have the cash-back facility on your purchases.

Credit card help is required when you know that it will be difficult for you to handle your credit cards and the other bills. Credit card help gives you the second opportunity to use your credit cards with confidence and using them in an impressive manner, without fault. You can save up a lot on your cash, or disposable income. 

Credit card help can improve your credit history and credit score within a few months.

This can be a win-win situation for you, as learn the nuances of using your credit cards in good manner and avoid getting into credit card debt again.

Saving Money With Interest Free Credit Cards

Credit cards offer plenty of deals to make a wide variety of choices available to you. Some of the deals you can choose from include cash back credit cards, interest free credit cards, 0% balance transfer cards and adverse credit cards.

Among the more popular choices in credit cards is the interest free card. It enables you to use your card without paying any interest for an average of six months. Certain credit card issuers may offer interest free periods for their cards that could be shorter or longer. Due to this interest free term of the card, your payment can be spread over that period and if you are able to clear your balance in the duration of the period, you don't even have to pay a penny in interest. As credit card APRs can be very crippling, you can save a lot by availing of interest free credit cards. 

There are many who prefer to go for interest free credit cards while planning for a major expenditure like an entertainment center, as they want to spread the cost minus extra charges. Store cards may help in spreading the cost of expensive purchases but the interest rates charged can be extremely high. Similarly in taking out a personal loan from the bank to make a major purchase you will end up being charged interest throughout the term of the loan and an extra fee if you want to pay it off earlier.

In case you are thinking of making a big purchase, it would be worth your while to find out about the interest free credit card deals available. You can then spread the payment for the purchase without having to pay any interest. The longer the interest free period on the credit card, the more time you get the repay the balance without extra charges of any kind. If you are unable to clear your balance within the interest free period, the interest charged will only apply to the remaining balance.

Another notable fact to keep in mind is that on expiry of the interest free period on the credit card, the interest rates can differ. Find out about the interest rate being charged by each lender to give you a good idea of what the charges can be, in case you fail to clear your credit card within the interest free period.

If this method doesn't appeal to you, you can go for an interest free credit card. This is not a card which lets you spend to your heart's content without ever paying interest, but a card offering a substantial duration before the interest being charged.

With interest free credit cards, the interest free credit can often extend to 56 days on purchases. This implies that you get 56 days to clear your balance in total and if you are able to do so, no interest will be applicable at all.

Last, an interest free credit card gives you a cost effective and convenient option to spread the cost of your expenses. Therefore if a holiday, retail therapy or a luxury treat is on your mind, this card will prove a big help.

Secured Credit card vs. Unsecured Credit Card

Credit cards are one of the most important financial tools that have swayed the market. If you possess a good credit report or are facing a bad phase in maintaining your credit report; the credit card companies enthrall you with unending options to apply for a credit card. But there are different types of credit cards that are designed by looking at the needs of different consumers. The consumers of credit cards involve people with bad credit as well as good credit.

Basically, a credit card is divided into two major types - a secured credit card and an unsecured credit card and both share different features and functions. So, before you apply for these credit cards you have to learn about them thoroughly. 

When you apply for a secured credit card, you are supposed to deposit a certain amount in the bank or with your creditors, and at the time of purchase of goods and services, the amount that you have deposited becomes your maximum credit limit. 

When you decide on your credit limit your lender provides you with a choice, where, either you can deposit the entire money before hand, or you can pay it through monthly installments. But when you pay the credit limit in installments, the lender will ask you to pay some percentage of the balance along with the interest rate before granting you the credit card. 

Secured credit cards can be beneficial for you in many respects, and the biggest advantage is that they help in managing any debts that you may have. As a secured credit card assigns you a fixed limit, therefore, you will have to abide by that credit limit. So, you will not spend exuberantly. Another factor is that when you deposit your credit money it will help you prevent default and improve your credit-score as well. 

Unlike the secured credit card, unsecured credit card does not require the deposit or a down payment of the deposit. Unsecured credit cards have a higher limit and often involve low interest rates. If you are the kinds who are good at managing their credit debt, and make the payments on time, then you should apply for an unsecured credit card. 

Your credit rating is the deciding factor on which you can apply for any kind of credit card. When you apply for secured or unsecured credit card, your lender will examine your credit history first, and will grant you the credit card on those grounds. But it is advisable that you should be aware of all the terms and conditions, and then apply for your credit card. 

Always keep the grace period in mind and make regular payments accordingly. Late payment means penalty, and higher interest rates, so try to make the payments on time. Another thing to remember is to keep a constant check on your accounts and stay attentive to deadlines as well. 

Both secured and unsecured credit cards are beneficial for you if you invest in them after analyzing your financial condition. Gain proper information and then plan which credit card to invest in.

Smart Ways To Use Credit Cards?

Credit card companies keep offering low interest rates as a promotional strategy to keep their customers intact. At times, they even offer interest as low as 0.0%. If you get such an offer, just call your current credit card company, if it is charging higher interest rate. Tell them that you have got a better deal and you won't be surprised to see them lowering their rates too to keep you as a customer.

There are some smart customers who keep juggling credit cards to pay low interest rates. Just be careful to note when the promotional period ends because the rates go sky-high and you need to be prepared. Also keep eyeing credit cards that offer perks. It could be cash back for every purchase, restaurants discounts, frequent-flier miles, Internet access, and more

These smart tips will help you use your credit card wisely. 

Ways To Use Your Credit Card In An Effective Manner

There are different ways to use your card. First consolidate the outstanding balances on your credit cards into one loan or onto one credit card that has a lower interest rate than the ones you are currently paying. It is a simple process to do a balance transfer onto other credit cards that have low interest rates. 

Take an example; you have $100 in outstanding credit card debt and the average annual percentage rate (APR) on that card or cards is 18 %. If the outstanding balance remains at $100 then over the course of a year you would pay approximately $18 in interest charges alone. If you consolidated your credit card debt into a single loan with a lower interest rate or if you did a balance transfer onto a credit cards with a low interest rate you would save a significant amount of money. 

If the new loan or credit card had a 9% APR then you would save roughly $10 in interest charges over the course of that same year. $10 for a debt of $100, if you think about a debt of $10,000. This trick will save you $1,000 over the course of that same year. Second trick: If you are asked to pay annual card charge, tell your card company that you are quitting the card itself. There are many credit cards that don't charge a fee.

Most credit cards will remove the fee if you simply ask. But the credit cards offering you airline mileage may not budge even after your veiled threat. 

Conclusion

At times some introductory offers can save you money. Many times, credit card companies offer a low "introductory" rate that will give you a low interest rate on a credit card for only a short period of time, usually 6 months. Bur there is other side to that lucrative offer. The low introductory interest rates sometimes seems really good, but might actually cost you in the end with higher fixed interest. 

If you plan to pay off your balance before the introductory interest rate expires, credit cards with low interest rate can save you money. But if you want a credit card for longer period, a fixed low interest rate credit card might be the right choice for you.

Taking Care Of Credit Cards

Don't let some dishonest clerk get away with making an extra imprint from your credit or charge credit card to use for personal gain. A mailing may ask you to call a long distance number for a tree trip or bargain-priced travel package. You have to join a travel club first and give your account number for billing. Now the catch is that charges you never made get added to your bill and you never get the promised trip due to not taking care of your credit card usage.

While credit cards make life easier for making purchases, it's crucial to keep track of your expenses. Every purchase on your credit card is equivalent to taking a loan. Impulse and incidental purchases can add up to a lot which needs to be paid when the bill comes. Hundreds of millions of dollars are lost in credit and charge card fraud for cardholders and issuers every year, so keep track of the credit card. 

Another good reason for keeping a tab on your credit card use is inaccuracies on your statement. Any discrepancy should immediately be reported to the credit card company. Use records when buying online or through a catalog, through printouts of each transaction, confirmation codes, copies of the catalogs used, warranty, return and refund policies. In case bogus charges show up on your bill or your credit card is lost or stolen, inform the credit card issuer right away. It can take some time to get everything sorted out but usually doesn't cost anything. Visa, Master Card or American Express cover the losses and not you as a customers. 

Keeping yourself informed and updated will help you maintain constant vigilance on your credit history. This helps you identify potential fraud or errors that may hamper your chances of getting the credit you deserve. Track new entries on your credit report and be quick in reporting fraud or errors. You would prefer not to request a new report each time you want to apply for credit. 

It's not credit cards and credit that create financial difficulties but the abuse and misuse of credit and credit cards. Discipline makes the difference in customers enjoying the convenience of credit cards without getting into the debt trap so typical of credit card usage. 

Dos With Your Credit Cards

A couple of helpful tips can help you make the most of credit cards. Put your signature on your credit cards as soon as they arrive. Keep records of account numbers, expiry dates and phone numbers and address of each company securely. Don't lose sight of your credit card during a transaction and take it back immediately. Save receipts to check with billing statements. Open bills promptly and reconcile accounts every month as with checking accounts. Any doubtful charges must be reported immediately and in writing to the card issuer. If your credit card company charges a fee for not carrying a balance, cancel the card. 

Don'ts With Your Credit Cards 

Beware of common mistakes to remain safe in every aspect. Never lend your credit card to anybody and be careful who you hand your credit card to. Never sign blank charge slips and never put your credit card account number on the outside of any envelope or on a postcard. Be cautious when disclosing account numbers over the phone. Don't let out credit card info in a phone call. Carry only the credit cards you require. Keep records of your account number, expiration dates and phone number and address of the credit card companies safely. Stolen or lost ATM and credit cards must be reported immediately and follow up with a letter. Legitimate companies never call and ask for credit card numbers over the phone. 

Ultimately we all pay for credit card fraud, which is one reason for the astronomical interest rates. However if you check your credit statements, a credit thief will not personally hurt you. Credit cards are second only to your family and time in importance as assets. So take good care of your smart cards.

Teach Your Children How To Handle Credit Cards

Taking credit card help without planning and knowledge can be a two-edged sword. If you are planning to apply for credit card help, you need to know what it's all about before you set out on your voyage. It's important because there are a lot of instances where people have become victims of credit card debts after they got credit cards. Have you ever thought why this is so?

Credit cards generally carry very high interest rates. If you have a number of credit cards and you use them frequently but never pay your bills, you might be in trouble. The worst thing with credit cards is that they always lure a person for impulsive buying. "Use our credit cards, and get 25% discount on the popular apparel brands" is now a common offer from all the companies. But do you know about the real catch? If not, ask someone before you apply for credit card help. 

If your kids apply for credit card help at one of the countless campus table promotions, they would not only take home a free T-shirt or coffee mug, but a credit line they may not be able to afford, and may not know how to manage. So, it's up to you to provide them the real mantra of how to use a credit card. Tell them frankly about the negative points of using a credit card. Of course, it's may be a real hard thing for your kids to swallow, but sometimes harsh realities can do a favor than getting buried into a huge debt. 

But you can't neglect the benefits of getting credit card help straightaway. If you or your kids use a credit card wisely, it would allow you people to build a credit history. Once college is over, entering the real world without a credit profile can make life extremely difficult. The potential downside, of course, is that if used irresponsibly, a student may accumulate large amounts of credit card debt. In addition, failure to make payments in a timely manner would damage the student's fledgling credit profile.

Evaluate the pros and cons of credit card help and choose the credit card according to your child's needs and his or her ability to manage personal finances. However, be aware that credit cards are very easy for college students to obtain, even without parental approval. Credit card issuers see college campuses as lucrative environments to find new customers, thousands of students who constantly need to spend money on books, supplies, and food, yet who are always short of cash. 

Talk with your child about the responsible use of credit, and if you decide that credit card help is appropriate, encourage him or her to start slowly--get one credit card with a low credit limit. One or two low-limit credit cards would be more than enough to establish a credit history. Do not forget to teach your child about the benefits and pitfalls of taking credit card help. Explain how to accurately compare credit card offers, how to read the fine print, and how to act responsibly when it comes to debt management. 

If credit card help is on your mind, decide whether you or your child would be responsible for making the monthly payments, and make sure he or she understands it. If you would cover some credit card expenditures and the child would cover others, make sure he or she is aware of who would pay for what. In addition, explain to your child which expenditures are acceptable for the credit card and which are not. For example, you would allow your child to use the credit card for tuition and books but not for ordering pizza and coke, make sure this is clear.

In fine, if the child is seeking credit card help, parents need to tell him or her that credit card rates are generally much higher than student loan rates. So, if your child is not planning to pay off the balance right away, taking out a student loan is probably a better idea.

The Backlash of Having Too Many or Using Too Much on Your Credit Cards

When one thinks of problems with their credit, the things that usually come to mind are collections and charge-offs. While these things are bad, they are not the only thing that can 'hurt' your credit. It is actually possible to hurt your credit score and your chances of getting new credit cards simply by having too much credit or from using too much of your available credit -- and is even a large reason for many credit card denials.

What's more is that your credit score can be so low from having too many new credit cards or using too much on your cards that it can be comparable to, or even 100+ points lower than, someone who has had a recent bankruptcy. That's right, someone who had had a recent bankruptcy may be approved for new credit cards, while you are denied. Furthermore, it may take just as long for you to redeem your credit score, as those who have had a recent bankruptcy. Let's take a look at some ways that having too much credit or using too much of your available credit can hurt your credit score or get you denied by lenders.

Since part of your credit score is based on how much of your available credit is currently being used, you can lower your credit score by simply buying stuff. This is referred to as utilization. Even if you are making payments on your credit cards, and not allowing them to go late or delinquent, your score will still stay low until you get them paid off. Even using just 30% of your credit limit can decrease your score. 

To put this into perspective, that would mean just $90 on a $300 credit limit, $300 on a $1,000 credit limit, $1,500 on a $5,000 credit limit and so on. Furthermore, the more you use on your credit cards, the lower your score will go. For example, using 30% of your limit will lower your score more than using just 10% of your limit, using 50% of your limit will lower your score more than using just 30% of your limit, and using 75% of your limit will lower your score more than using just 50% of your limit. 

To try and even out their utilization, some consumers will apply for many credit cards and use a little bit on each. So instead of having 1 credit card with a $25,000 limit and using $12,500, which would result in a 50% utilization on that card and overall, they will get more cards and spread the debt around. 

This looks like lower utilization on each credit card, even though the overall utilization is the same. Once they reach 30% or 50% overall utilization, they will apply for more credit to lower that figure. Some creditors are privy to this trick and will deny applicants who they suspect are doing this -- even if those people are using little of their current credit and have no credit blemishes. 

So, if you are considering purchasing a $3,000 plasma TV on your $5,000 credit card, you should consider how long it will take you to repay the debt and if you plan to apply for any other credit cards or loans within that time.

The Basics of Catalog Credit Cards

Catalog credit cards are just like regular credit cards in that they are used to purchase goods now and pay for them later. For the majority of catalog credit cards, interest is only charged if the balance is not paid in full by the due date. In most cases, catalog credit cards come with no annual fee but you'll want to check the terms and conditions for complete details.

Depending on the department store or catalog company you obtain a credit card from, you'll have a specified credit limit and agree to pay a minimum amount each month on your charges. While catalog credit cards and department store credit cards can help your credit, make sure you don't go overboard. With most catalog credit cards having lower credit limits than traditional charge cards, you risk tying up your credit for a small number of spending limits. 

Aside from convenience, catalog credit cards also often offer rewards for using it to pay for your purchases at their store. For example, Gap, Old Navy and Banana Republic offer great spending rewards and most department stores also offer an immediate discount when you first apply for their credit card.

Carrying a small balance on the department store cards or secured card isn't a bad idea because it shows that you can handle an outstanding balance. This isn't to say that you should enroll for every catalog or department store credit card available to you. Avoid credit cards with high interest rates or a lack of rewards because you're only walking around with a high priced brand name at this point. 

Some pros of champion department store and catalog credit cards:

- Opportunities to establish credit. 

- Requirements to qualify are often less stringent than traditional cards. 

- Lower credit limits might make it difficult to get in over your head on spending. 

- Special financing offers usually apply with department store and catalog cards because you often get discounts, reward points, special services, and more. 

- Aside from introductory discounts, many department stores offer special sales and savings events solely for cardholders. Catalog and department store charge cards caveats:

- Interest rates are often much higher than major credit cards. If the perks don't outweigh the finance charges then you'll want to make certain that you pay off the balance every month. 

- Don't treat the credit card as a way to get merchandise for cheap. By the time clothes go out of style, you'll still be paying! Use them for convenience, not as an excuse to shop. 

- Opening lines of credit can negatively affect your credit rating. Too many open credit cards can send a red flag to potential credit grantors.

Ideally, be selective when choosing department store or catalog credit cards, and limit yourself to applying for two or three cards for every 6-12 months. We've lined up some great offers for catalog credit cards and invite you to check out the many benefits associated with each!

The Credit Card Only Works When It Listens to Your Voice

To protect credit cards from credit card fraud a voice-recognition system has been set up in credit cards which authenticates a verbal password of a credit card holder. This feature prevents thieves from stealing credit card details to make online purchases.

Beep Card in Santa Monica, California, has come up with a prototype consisting of a credit card with a built in microphone, a loudspeaker, a battery and a voice-recognition chip. 

Although the credit card is standard-sized, it almost three times thicker than a regular one. Nevertheless they are trying to bring down the thickness to normal by putting in smaller chips. 

Squawk signal 

The voice card was conceptualized and designed by Beepcard technology specifically to prohibit fraud of online transactions. Their first voice card has no microphone, instead it has a built-in loudspeaker that gives "squawk," an acoustic ID signal via a computer's microphone to an online server. 

The signal is then verified and after it matches the credit card details, the server establishes that the user is not just entering a credit card number but in fact possesses the actual card. The ID code changes each time the credit card is used in a preordained sequence that only the server knows. In this way credit card imposters are unable to get credit card information by recording the beeps by playing back the audible ID when they key in the details later. But only the new technology can prevent this. 

The new voice card also uses the ID squawk for identification after the user's spoken password is verified. This is effective because it is not easy produce the same voice as owner's. 

The New Diminutive battery 

Voice-recognition systems are also used for voice dialing in cell phones. Beepcard is trying to develop voice-recognition and audio circuitry that can work on a diminutive battery embedded in a credit card. 

To maximize battery life, the system starts functioning only when the credit card is in use. On pressing a button on the card's surface, a prerecorded voice prompts you to "Say your password". The voice-recognition software authenticates the password, by squawking then the server identifies this ID and allows the transaction to proceed. 

Efforts are being carried out to enable the voice card to make up to 10 transactions per day for two years before its battery dies. The problem however, lies in the robustness and flexibility of the credit card so Beepcard has placed the battery in the corner of the credit card to avoid bending and extend battery life. 

Credit card giant Visa of Foster City, California already offers voice recognition to provide security in some telephone transactions, but without the voice authentication feature. The concept can only be incorporated if transactions are user friendly and not use too much of time in their procedures. 

Beepcard's technology is a physical authentication system that doesn't require any special reader hardware and can be used on a random computer at an Internet caf? or telephone. If the card is affordable then Beepcard is a good choice.

The Perils Of Credit Cards In A Slump

Businessmen or entrepreneurs can give many reasons for taking up more credit cards. With the dynamism in the economy, taking high-interest debt or loans has become very dangerous. Let us take the example of Will. He began with his third year in business and decided to hire some employees. He also wanted to take up some more space to move out of his garage from where he worked and produced re-cycled paper. Will's plans could not turn into a reality when he had no money with him. He was asked to pay all the expenses in cash. Then he decided to use credit cards to meet the expenses.

Just like Will, there are a number of self-employed people who use credit cards to meet most of their business expenses. Whenever they see their profits increasing and are unable to gather financial sources for some more expansion, they rely on credit cards.

Debt on credit cards is seen as an easy way out for most people who are unable to find other sources for taking up a loan. The corporate and consumer variety of debt on credit cards is the reason for the recession in the economy. Defaults in the corporate bonds have reached an all time high and are expected to increase with time.

There are many other reasons for the economic recession. The Federal Reserve Board had made some interest-rate cuts in the month of January. The reason behind this is considered the bad loans on the balance sheets of various financial institutions, especially banks. The debt on credit cards has also reached an all time high of $500 billion-plus. How much of small-business debt can be fitted in the present scenario?

The two main sources of finance that the small businesses get are either from the credit cards or home-equity loans. Most small business owners prefer credit cards rather than going to the local lender for traditional loans. There are some serious causes of concern where the small-business debt is increasing because of which the economy is going in the slump due to the debt.

Here are a few examples of the ways in which the credit cards perils are causing a slump in the economy:

a) Most of the time, it is the self-employed who are advised on getting their credit cards consolidated to remove their credit card debt. There are several consultants who have been giving such advice to them from a very long time. It is now that the frequency of people who are going in for credit card consolidation has increased.

b) According to a study by the Federal Reserve, the number of self-employed who had applied for credit cards has almost doubled in 2004 from 1989.

c) Number of businesses that use credit cards for day to day expenses has also increased considerably.

There are quite a few reasons behind the increasing usage of credit cards among the small business enterprises. Foremost is the consolidation of banking industry that resulted in elimination of local lenders. After that, the small-business owners lack the resources that is required as collateral for guaranteeing a bank loan. Last, most businessmen don't have necessary education and are ill equipped to lay out the sort of business plan that lenders require. 

As the economy slows down the usage of credit cards by the small business enterprises to meet their operation costs is going to fly high. If addicted to the use of credit cards, you better chalk out a business plan that will give you a clear picture of your company's expenses, watch interest rates on the credit cards; try to keep yourself away from using plastic for items you'd be unwilling to buy if it were a personal expense, such as new furniture. Recently, lots of self-employed people are coming in with high credit cards debt. So, if the economy dips into recession, lots of small-business owners may decide that credit card financing isn't as good an idea as they once thought of.

Tips For Managing Your Credit Cards

Are you one of the thousands pulling your hair out trying to figure out how you're going to pay your credit card bill? Using your credit cards wisely and sensibly will help you avoid financial problems and establish a strong credit rating, so here's some information to help you get your credit card problems under control.

Credit cards have become an indispensable part of modern life. Consumers rely on credit cards to help achieve lifestyle goals by letting them take advantage of special bargains, spread payments out over several months, and provide cash in emergencies. Credit cards have become so widespread that they are often accepted as a piece of primary identification.

Millions of people use credit cards to avoid carrying large amounts of cash, for emergencies, to track spending, etc. However, charging more than your income allows can be worrisome and potentially devastating to your finances and your credit rating. The pitfalls of credit card use are the accumulation of large amounts of debt and the inability to make more than the minimum monthly payment.

It's important to look out for your own interests. Some credit card companies have lowered minimum monthly payments to less than 2% of the balance. It could take 30 years or more to pay off your credit cards if you pay only the minimum payment. Debit cards should not be confused with credit cards. There is no credit extended with a debit card. The money is deducted directly from your savings or checking account. The bottom line is don't spend more than you can afford to pay on a monthly basis.

Limit yourself to one or two credit cards. Keep one for business expenses, if necessary, and one for personal use. There will be an inquiry into your credit report for each application you submit. Your credit report contains a record of every company or institution that has evaluated your credit. It reflects negatively on your credit score if you have an inquiry that does not lead to the issuance of a credit card. Obtaining too many credit cards can affect your ability to finance other purchases as well, such as homes or automobiles. Too much available credit can cause suspicion in the eyes of a lender as to your ability to repay your potential debt.

For those of us who know how to use credit cards properly, credit cards can actually be quite fun and lucrative. If you used wisely, credit cards can be useful financial tools. When not used wisely, they can become a financial nightmare. Here are a few tips to help you stay on top of your credit cards:

o Minimize department store credit cards. Their interest rates can be extraordinarily high in comparison to other major credit cards.

o Don't charge large-ticket items. Look for other ways to finance your purchases. Many vendors offer layaway or installment payment programs. Search for a low-interest loan.

o Pay your bill in full each month. Take advantage of time without having to pay for it. If you can't pay down your balances, try to make more than the minimum required payment. The quicker you can pay off your purchases, the less you'll have to fork over in credit card interest.

o Look around for cards with low-interest rates. Annual service fees are also negotiable. It is possible to get a good deal on credit cards; you just need to do a little research.

o Use a bank debit card. If you love the sound of "charge it," but don't want the hassle of a monthly credit card bill, try a bank debit card. It works just like a credit card, but the charge is debited directly from your checking account : a good way to help control your spending.

o Avoid those credit cards, which are offering a high credit limit. There is great potential to overspend. Instead, pay down your balance before using your card to make additional purchases. Send in your payment well ahead of the due date. Issuers may charge late fees, and late payments could result in a considerably higher interest rate than the advertised rate.

So, the bottom line is by using your credit cards prudently you can reduce adverse effects of credit cards and maximize the benefits by spending wisely, using self-discipline, and paying off your balance as quickly as possible to avoid unnecessary fees!!!

Understand And Be Smart To Escape Credit Card Frauds

Before you know and before you make a call to your credit card issuer about your lost or theft credit card, you will find to your amazement that the card has already been used.

Scene 1: Just by an extra swipe of your credit card into a small hand-held device known as a skimmer someone somewhere takes information right off your credit card itself, giving the thief all the information needed to make a counterfeit card. The consequences could reach to an alarming proportion. 

Scene 2: In the temptation of getting a free travel package, you respond to a mail asking you to join a travel club first and you're asked for your account number so that your membership can be billed. You have responded as asked but to your utter surprise something is added to your bill and you never get the tempting trip. 

These above scenes are conjectures but often all these and similar ones usually happen to a few people. However, most among us don't experience credit card fraud. 

Beware! It could happen to you. You could be among victims of the growing crime of identity theft, when someone uses your name and Social Security number to open new accounts or take over your existing accounts. 

If any of such things happen when your card is either lost or spurious charged, do make a call to the credit card issuer promptly. Usually, it doesn't cost you anything. Issuers such as Visa, MasterCard or American Express will bear the brunt for you. Credit card companies ultimately pay for credit card fraud, which is why they charge hefty interest rates. 

Credit card fraud is increasingly being reported. But be alert to avoid being victim to such peril. Only your watchful mind can save you from increasing credit card frauds. 

Some helpful tips to stop credit card fraud: 

Don't carry too many credit cards, your Social Security card, your birth certificate or other personal documents. 

Keep your credit cards just as you keep cash. 

Keep track of all your ATM, credit card, debit card and other receipts. 

Cancel all your unused credit card accounts 

Keep an eye on your credit card every time you use it, and make sure you get it back as quickly as possible. 

Try not to let your credit card out of your sight. 

Never respond to emails asking for credit card info via email 

Never respond to emails that ask you to go to a website to verify personal and credit card information. These are called "phishing" scams. 

Never provide your credit card information on a website that is not a secure site. 

Inform credit card issuer promptly if you find any charges that you don't have a receipt for or don't recognize. 

Order credit reports once a year to check any surprise. 

Crime doesn't pay. However, it is sensible to act smart to stop all these credit card frauds, as innocent consumers like you who ultimately suffer.

Understanding Credit Cards Theft Master

There are many credit cards that are available in the market and are used by people in their daily lives. Millions of people in this world use credit cards and quite a lot of them have experienced credit card theft. The figures that are discussed in credit card scam studies show that billions of dollars that have been lost in fraud.

It is time for you to reach for your credit cards and see if they are really safe. It is good to think on the same lines like a credit card thief. There are two types of credit card thieves: the usual credit card thieves and the "master" credit card thieves. To be on the safer side, it is good to think like a credit card thief and see how you can be safe.

There are credit cards and there are credit card thieves. The usual, or small time credit card thieves are now facing competition from the master credit card thieves. This is unfortunate, but with increasing credit card menace, people have actually looked into the matter seriously. The usual credit card thieves are like your departmental store dealers and your waiter that duplicates your credit card imprint.

On the other hand, more damage is done to your credit cards than what is done by the usual credit card thieves by the master credit card thieves. How do you feel when you hear the news of master thieves stealing thousands of credit card numbers and other important information attached to them? There have been cases where you have heard stories about people claiming to have stolen millions of credit card numbers from some online bookstore and gave them to the visitors of his site. There are millions of such stories that you must have got accustomed to, but something has to done to control such things.

Despite the different security measures taken by most credit card organizations, the credit cards are not yet guarded from the thieves. Most online retailers have also tried out different measures in vain. The hackers, or online crackers have paced faster than the security measures that are being adopted by passing time. The cunningness of the online hackers has kept pace with the measures that have been developed by most online security agencies.

Online credit data sources are prone to hacking. These hackers are all kinds of people, right from the teenage first-timers to opportunistic criminals, or the ones who are backed by terrorist organizations. Credit cards contain the information about your social security number that is the key to other important information. Social security theft can ruin a person's life in many ways.

Credit cards are a source to many other relevant pieces of information about an individual, organization, or a bank. If you want to become a credit card theft master, you need to know that the Internet Service Providers, or ISPs duly monitor most of the sites and chatting sessions that are used by the hackers. Internet Relay Chat, or IRC sessions and e-mails are the common places that are used by the hackers.

You need to be aware of all that is happening around you, especially if those things are related to your credit cards. Those things include all your online and off-line dealings. The most important thing for you to remember is that you should not let your system remember your password for you so that you do not need to type in when you log into the sites of your credit cards. The password that you put in should be a set of random characters and should not be too long or short. These are some of the steps that you can employ to avoid credit card theft. Being aware is being safe. So you should make sure that you, your business, and your family are not affected with credit card theft that can ruin your financial life to threads.

Use Business Credit Cards To Grow Your Business

Business credit cards are a convenience for those who have money. However, they are not an antidote for those who don't. Business credit cards are beneficial as well as blight to every businessman. All major credit cards issuers will be more than happy to supply you with business credit cards. The credit cards come in all shapes, sizes, and flavors - meaning interest rates, features, benefits, reward programs, and the like. Business credit cards will help your business grow; there is no doubt about it. The difficulty is in finding the one that suits both you and your company, provides the maximum amount of benefit to your company, and will help grow your business the most.

The first reason of having business credit cards is they help your company to establish the credit it will need to grow in the future. By using business credit cards to make small purchases for equipment and other office and business supplies, you will discover that it is much easier to keep track of purchases when you receive your monthly credit card statement

Another benefit of having business credit cards is you will free your staff from having to carry cash, travelers' checks and using their personal credit cards for business purposes. Business credit cards can also help you reduce your paperwork and time spent on reconciling accounts. Moreover, unlike some business checks, you won't be charged any transaction fees.

But as with all things financial, you have to be careful. You should not rely on it to actually run your business. You should only use your business credit cards to make small purchases and for backup or emergency purposes. Just as with personal credit cards, if you use these business credit cards in a reckless or careless manner, your business, along with its prospects for success, is likely to suffer. And just like you should do with your personal credit cards, you should make it a point to pay your credit balances when due.

Any business can apply for business credit cards, though if you have just started, it may be difficult to find credit cards. Your business has a credit history, just as you have a personal credit history. Credit cards companies look at your business credit history the same way, and with little credit history, it can sometimes be difficult to locate credit cards companies willing to approve your application.

If you are willing to pay slightly higher interest rates, it is more likely that some credit cards companies will be ready to take a chance on your business. If you search online for business credit cards, you will find a list of companies that are offering business credit cards. After searching through each, you can determine which company best suits the needs of your business, and then you can apply for a credit card or credit cards from that company.

Also this is extremely important for all small business owners to be careful to separate business expenses from personal and leisure expense, and having business credit cards will certainly help do that. As your accountant has no doubt told you, perhaps many times, you have to keep separate accounts so that there is no confusion between your private expenditures and those of our business, otherwise the IRS is likely to get very testy, and we all know what that can entail.

When shopping for business credit cards, you must be always sure to keep an eye out for anything that is going to save your company money. This includes low interest rates, even though most business credit cards come with a rate that consumers would drool over. Make sure, when searching for a business credit card, that you find one with the best rewards program for you. There are thousands of different types of rewards programs, and you can find one that will benefit your small business with free products or discounts on the products you purchase most. Also look for credit cards that don't have any fees associated with them, and credit cards that have cash back bonuses and /or purchase discounts associated with them.

So, why waste time, opt for business credit cards now.

Using Your Credit Card To Finance Your Business

Is it Possible to finance a new venture with credit cards? If so, what is the best way to do it?

First, the use of personal credit cards can be a very risky means of financing business operations. Master card and Visa card weren't designed for this purpose. However, with some creative planning and both eyes open to the costs involved, personal credit cards can temporarily fill the gap between raising start-up capital and successfully ramping up the company to positive cash flow. Second, the use of credit cards should be replaced as soon as possible by more traditional bank financing and/or leasing arrangements, once the firm has reached the break-even point and monthly sales receipts can cover normal COGS (cost of goods sold) and overhead expenses.

Credit Cards For Small Businesses: Strategies

There are two basic categories where credit cards could be used for the emerging small business as part of a larger financial plan. The first category is for asset acquisition, when the firm needs to secure telephones, a fax machine, a copier, PCs, printers, mobile phones, scanners, and any other unique equipment and devices to execute the business operations. Virtually every item here can be had for little or no money down and relatively small (and manageable) monthly payments spread out over time (normally 24 to 60 months). Large office-supply stores and outlets typically offer special payment terms for their own credit cards and personal credit cards. 

The key rationale in this strategy is that the business owner is weighing the current utilization of the equipment and the present value of tangible productivity gains against anticipated future sales. Projected revenues are coming in perhaps three fiscal quarters, so even at a 15% annual credit rate (1.25% monthly), six to nine months of carrying a balance will only cost the entrepreneur between 7.5 and 10% in addition to the sticker price for these assets acquired. Paying back just the fully amortized minimum due over 24 to 60 months would add anywhere from 40 to 75% to the final cost, but the plan is to pay these balances off with the first few rounds of revenue. 

The second category for credit card use is working capital, or cash-flow management. For example, when COGS are charged to a credit card, the sponsoring bank may extend a 30-day grace period until the principal balance is due. The firm may be able to synchronize the account receivable from the buyer to match that 30-day time period, so the business can pay the balance at or close to that due date. 

Another strategy is to carry an outstanding COGS charge balance for a completed invoice for the 30 to 90 days until the buyer pays. Making the minimum payment due during that time means the total cost to carry that receivable will only be 3.75 to 5% until the principal can be paid in full. And the firm may also be able to build that percentage carrying cost into the company's pricing and gross profit margin. 

How Can You Use Your Credit Cards

The firm makes the payment on COGS with credit card No. 1, then pays the balance in full 30 days later with credit card No. 2 and avoids any interest charges. The firm then pays that carried-forward balance in full 30 days later with credit card No. 3 and has gained 60 days total time for the buyer to pay the invoice. The ultimate goal is to have access to cash to acquire needed assets now and to pay bills on time, but remember to view the credit cards as a temporary measure to get the firm out to the point of consistent revenue. Once the company's sales stabilize into regular monthly receipts, the entrepreneur should secure traditional loans for assets and a line of credit for working capital through a commercial

Virtual Citibank Credit Cards: A Whole New Way to Buy Things on the Web

Are you looking for an option where you can shop online without using your credit cards? If yes, you are lucky! Citibank, the world's largest issuer of credit cards has unveiled yet another option for consumers where they can shop on the Internet.

Citibank now offers credit cards that are virtual cards. The cards called eCards are only usable through online transactions. To put it another way, Citibank's eCards can be used only with the assistance of the Internet. You would not receive a slim physical plastic card that you swipe in stores. Instead, you would get a card number, plus an expiration date. By entering the card number at any online retailing agency you can shop whatever you want.

The Citibank eCard comes with the MasterCard logo. So, you can use it at any online retailing agency that accepts regular MasterCard credit cards. Not only in America, even worldwide the merchants accept MasterCard credit cards. Therefore, if you go for Citibank's eCard, you would be accepted by millions of online merchants because these cards support MasterCard.

According to Antony Jenkins, director of online initiatives for Citibank's credit cards business, "It's a totally new kind of payment tool, designed for the virtual world. Citibank is hoping the new service will enhance its relationship with customers, increase loyalty to the bank and stimulate online banking," Jenkins said. "The credit card division currently has 40 million U.S. customers, and the bank is now signing up 8,000 people a day for its online account services," he said.

Citibank's eCards are user-friendly for consumers. Just by remembering the card number, one can buy those electronic goods, decorative items or whatever he/she wants. One big advantage with these credit cards is that you need not worry about losing them. The only minor threat may come from identity thefts. But thanks to the wonders of modern technology, it is now nearly impossible for anyone to steal your credit cards information online. Almost all online merchants employ secure websites and encrypted data transferring to ensure that someone does not steal your credit card information.

Your Citibank eCard prevent you against fraud through its security measures. Some of the major security measures of the company are as follows:

--Your e-card number is totally different from your Basic Credit Card.

--To protect usage of your e-card by unauthorized people, there is an expiry date on your e-card. Only you would know this specific date.

--Fraud Early Warning System is a unique system that continuously monitors transactions on your Citibank e-card to prevent fraudulent usage. When any suspicious transaction occurs on your account, which is not in line with your usage pattern, would receive a call from the company to check and confirm that the transaction is genuine.

--Your data on the card is printed and not embossed so it cannot be used on manual Point of Sale machines.

--Unlike the regular credit cards your e-card would not be activated on when you receive it. You need to call on 111-222-222 to activate it.

--The Credit Limit assigned for the e-card is low to ensure that your risk is limited.

To further stimulate use of its services, Citibank also introduced CitiPlaza, an online shopping mall, which links to Internet retailers offering discounts to Citibank customers. The merchants include Barnes & Noble, Dell (DELL) Computers, the Disney Store, Eddie Bauer and Sharper Image. Antony Jenkins even adds "We believe use of the Internet is ubiquitous and will increase dramatically over time". So, obviously Citibank is trying to expand its eCard business all over the country. In the coming days the company would give more offers to the customers while shopping. For the regular credit cards issuers that may be a bad news!

Therefore, we can expect for better services pouring in our way from other credit cards issuers also. Unless, they are unable to come up with something like Citibank's eCard, then Citibank would definitely take over the finance market by storm.

Want Airline Credit Cards?

Airline credit cards are those credit cards that are sponsored by the airlines. Airline credit cards are used in the same manner as you use any other credit card. In other words, both are used in the same way at many locations around the world. If you are a frequent flyer, then airline credit cards are the best option for you. But if you don't fly at all, it would be wiser to go for a traditional credit card.

Airline affiliated credit cards are offered primarily by the three major credit card associations: MasterCard and Visa in association with the bank of your choice, and American Express. You can ask for airline credit cards for any airlines from the huge array of American Airlines, Delta Airlines, Continental Airlines, US Airways, Northwest Airways, Soughtwest Airways, Alaska Airlines, America West Airways, British Airways, and many more.

With an airline credit card you would get added bonus of collecting frequent flyer miles when making purchases. On the other hand, with a traditional credit card you would only make purchases, but there are no incentives for spending. That would probably make the traditional credit card holder want to look into airline credit cards since they look at the situation as spending but not getting anything out of it.

But remember, as with the usual credit cards, the incentives with different airline credit cards also differ. It's because different airlines and their credit cards have their own rules and restrictions. For example, with your Delta airlines credit cards you might get special incentives, but it doesn't mean that you would get the same with Midwest.

Although the airline credit card holder collects frequent flyer miles, the price for obtaining these credit cards and being in the program may be more than what a traditional cardholder would have to deal with. For example, airline credit cards often charge 5% or more points as compared to the non-affiliated credit cards.

The deep dark secret with airline credit cards is that they award consumers 1.4% of their purchases back in the form of air miles but overcharge on the interest rate about 5.9%. To make the deal even worse, these programs charge you a hefty annual fee to play the air miles game. Essentially, these programs give you with one hand but take back five-fold with the other. That's why you should pay off your complete balance each month. By paying off your complete balance each month, you would be able to cut down on those high interest rates.

If possible, try to maintain a budget. Do not go for a spending spree to get special incentives. Try to fly on the same airline. If you do so, these credit cards would be right up your alley.

If you are considering airline credit cards make sure you get out your calculator and compare with other stripped-down cards. You also might want to get out a magnifying glass for the fine print. Some programs limit how many miles you can earn in a month or a year. Finding a free seat could also be a challenge since the airlines generally allocate only a few free seats unless you are willing to pony up more miles. And finally, remember that these programs could bite the dust any time and with very little notice.

Compare the rate of different airline credit cards. Shop around as much as you can before settling down with one. Search online to get the best deal. In fact, online search is the best way to track out the reliable issuing company. Through the help of the Internet, you could also take some guidance and suggestions as to how you should apply for an airline credit card, how to use them etc. Nowadays, there are several online consultants that are ready to help you out. While the guidance of some consultants come free for some others you need to pay a membership fee.

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People with bad credit often experience problems getting their credit card applications approved. Banks are wary of extending more credit to individuals who pose risks to their business. Alternative lenders oversee a bad credit credit card industry that is popular. 

Typically, lenders look at two main areas, the credit score and the credit history. An unattractive credit history can certainly hinder you from getting good terms for your credit card. 

Some factors can prove to be problematic in your credit card application. The most serious of these include: 

• When you declare bankruptcy, it can stay on your record for up to ten years. Credit card companies consider this because bankruptcy is one of the most serious financial problems that a person goes through. • If you are a chronic late payer, it will leave the credit card company with a negative impression of you. One or two late payments won't do much damage, but habitually late payments will. You may need to apply for bad credit credit card if you are chronically late. • Multiple credit application is an issue for some lenders, regardless of whether or not your application was impressive. Too many lines of credit are a red flag to many lenders. • A bad credit credit card may be your only alternative. Be aware that you pay higher rates because of this. 

It is much better to get a traditional credit card. This is because you will not only be able to take advantage of lower interest rates. You can also enjoy longer repayment terms. 

You should do your best to get the best credit rating possible because it can affect your life for the long term. A great way to start is to obtain a bad credit account and make regular payments. Your credit improves as you pay. 

If a person doesn't have anything in his history yet, as in the case for student credit card, he might also have to apply for student credit card from non-traditional lenders. This is not necessarily a bad thing because he will be able to have a line of credit when the need arises but the student also needs to be aware that it can be the source of his problems if he doesn't use it correctly.

Credit Card Debt: How Are Americans To Deal With $1 Trillion Of Credit Card Debt?

Credit Card Debt: How Are Americans To Deal With $1 Trillion Of Credit Card Debt? was written by Daniel Major

Credit card debt is responsible for $1 trillion worth of American debt today as revealed by the Federal Reserve recently, so please do not think that you are the only person drowning in credit card debt out there, there is a small ocean of you unfortunately and this ocean just seems to be getting bigger all the time.

But what do we do about it? Burying your head in the sand is not really a viable choice but it is a course of non-action that millions choose to follow, just because you cannot see the problem it doesn't mean it doesn't exist! These people are being foolish and are just waiting for their own little financial time bomb to explode, the wise ones out there are hitting this problem head on.

We all know that we should pay off our debts, it is only ethical that we pay back that which we have borrowed, as constantly gesticulated by financial professionals who are constantly advocating to people to do just that, but they all concentrate their rhetoric in particular on high-interest credit card debts. Some credit card interest rates are phenomenally high and it probably seems like borrowers would be paying them off for an eternity; and in all fairness, that is exactly what these credit card companies want you to be doing; they don't want you to pay the full amount owing on your card and would be quite happy for you to pay off a ridiculously low interest only payment each and every month, therefore, never reducing your debt and probably increasing it, but giving the credit card company a perpetual income. Needless to say that clearing this credit card debt is one of the first things tackled when looking to reduce or clear debt.

Facing up to and dealing with debt is never easy but if you always remind yourself that taking action to relieve yourself of debt now will provide you with more financial freedom in the future. Firstly, study your income and expenses and analyze where you could cut back on spending and take steps to do so, if you are in a position where cutbacks are not an option then you have to take action to increase your income by taking a second job. Sure, you may have to make sacrifices in order to clear this debt but it will be worth it to be in control once again.

Now, having read that last paragraph, you probably thought how the heck am I going to get a second job? Yes, you are quite right, jobs are being axed right across America at the moment, and the rest of the world for that matter, as the global recession hits hard, and unemployment is increasing rapidly, but never give up before you even try, if everyone listened to the doom and gloom we hear constantly on the media none of us would ever leave the protection of our homes ever again, would we? So, make an effort, you may be surprised by the outcome.

When it comes to paying off debt there is a specific order you should look to do things in:

1. Secured or unsecured debt:

Your first priority is to always ensure that you maintain and keep up to date your secured debt repayments, such as your mortgage. Secured debt will always be your priority as it is generally levied against your home.

2. High Interest borrowing:

Once you have ensured that the money for your secured debt is in place each month you should look to reduce or remove the high interest loans that you have by increasing repayments or negotiating reducing your card interest rates with the card supplier.

3. All other borrowing:

And finally look at all other debt to see what can be cut back or removed quickly.

Getting to zero debt, as soon as possible, should be your goal and it is achievable with some dedicated application.