Tag Archives: Credit card

Can business credit cards help with cash flow?

If you are an entrepreneur, you will most probably experience a fluctuation of funds. People often start having cash flow problems when they are waiting for money that is due or that was already transferred but has not arrived yet.

In some cases, debtors pay late and can throw your financial planning totally off track. It may be that you had a cash layout for a new job or product and can no longer follow through. There are multiple scenarios where you might require some urgent help with your cash flow, so you will definitely need emergency backup funds.

While waiting for the cash to come in, your overheads must be paid, your staff must be paid and you must also pay yourself. Like everyone else, you have a household to support financially.

In times like these, you need a short-term loan option that is available immediately. This is exactly where the credit card may come in very handy and help you get through the tough times.

Benefits of a Credit Card

If you have a business credit card, it can be a big help. Maybe you are already using it for small expenses, such as stationery or for stocking the staff kitchen. To prevent you from dipping into your cash fund, you can start to use your credit card for travel expenses, i.e. when directors have to fly to other destinations for meetings.

Although a credit card carries an annual fee, it comes with 0% interest on purchases for the first three months, which is good news for your cash flow.

Remember that a 21% APR applies for credit not paid, so it makes sense to stick to payments to avoid the interest if you can.

One of the many benefits of a credit card is that you can carry over your balance to the next month. If you pay your balance in full and on time every month, you get 56 days of interest free credit from the day of purchase, providing even more help with your cash flow.

A credit card not only aids your cash flow, but can also help you save on purchases. Many credit card companies have retail partners that bring you discounts on a variety of daily essentials such as office stationery.

Insurance benefits such as purchase protection, travel accident cover and cardholder misuse are available should you want to make use of them.

You can limit the amount that any one person in your business can spend, thereby controlling your spending.

If you want to apply for a credit card, you need to have a good credit score and you have to be up to date with any current payments that you have. Your expected annual gross income will determine whether you qualify for a card or not.

Bankruptcy and any present or past judgments will not count in your favor. If you have been refused credit in the past this will also not help.

If you pay the outstanding amount at the end of the month in full, there will be no interest charged. You can also choose to pay only the minimum amount.

Cash flow is vital, so click here to find the best rates on loans and credit cards that could help to tide you over if times are tight.

How Merchants Can Reduce Credit Card Fraud?

In this series we are going to cover one of the biggest problems all over the world. Credit card fraud.

Many people do not know what credit card fraud is, credit card fraud would be defined as some one who uses someone else’s credit card information. It is also an act which is punishable. However credit card fraud seems to be very difficult to do, I must tell you that it is not the case.

Well you might have heard about “mail non-receipt fraud” this happens when an old credit card is lost and you request for the new one and you are supposed to receive via mail which you never receive. One big reason why the bank sends you an inactive credit card and then you have to make a phone call to activate your credit card or else it would not work. Unfortunately they are few banks who does not follow this and send the credit cards that are activated.

Then you might have heard about “charge back fraud” here the legal card holder uses his card to do shopping or purchases any kind of services. Then the statement comes and the card holder calls up bank stating that he never used that service or may be he did not give any kind of authorization on his credit card transaction.

Now there is another kind of credit card fraud called “skimming” where the merchant or an employee makes a copy of the credit card details before processing the payment. This copy is then sold to professionals in black market who makes duplicate illegal copies of these cards. However skimming has now become less problem for the people after the introduction of CVV and CVS codes.
When the ATM machines were first introduced, skimming at ATMs was practiced largely in numbers which was problematic. The skimmer what they did was they placed a skimmer device somewhere in the ATM machine set up illegally that reads the magnetic stripe attached to the card. This illegal technology is used by the help of many devices which monitors the keypad of the ATM by attaching a fake fascia over the original keypad. However this is not at practice as earlier.

The most common type of fraud is the online credit card fraud today, with all the transaction that people do every day. Now how the online credit card fraud is done? When you use the credit card for shopping on line the hackers monitor the person’s entry into the merchant’s system and then steal the credit card information and it is done in such a manner that one doesn’t even come to know. Another way to get a person’s credit card information on line is to send an official looking email telling the person that they have to update the credit card info. The mails are sent in bogus link to go to where the info is collected and uses them for the scammer’s purpose.

Smart Finances

Useful and practical financial tools are essential for both everyday life, and your future. By far one of the most popular tools are credit cards . By making your payments responsibly, and on time, your finances can enjoy a wide range of benefits. For example, you can use your credit for both every day purchases, or you can transfer your balance and enjoy an interest free introductory period. Not to mention the various reward schemes, intuitive repayment hierarchy, and other features that can have a positive impact on your overall finances.

Many people, when considering a credit card, are looking for a balance transfer. By doing this, you can make the most of an interest free period, where your monthly payments will go entirely towards repaying your credit. This is a rare opportunity, one which can turn your finances around for the better. Make the most of this period by choosing a card that offers a longer introductory offer, and make more than the minimum payment required each month. In doing this, you can make a significant dent in your credit balance, and benefit from the financial rewards that you can receive.

But there is more to interest free credit cards than just the introductory period. The latest cards offer more than just an attractive balance transfer offer. You should have the highest standards when choosing your credit card, which means comparing features and benefits. For example, discount and reward schemes should provide you with options that are worthwhile, meaning benefits you can actually use, whether it’s on everyday purchases, a holiday, or another interest of yours such as a gym membership. Credit card companies now offer a unique repayment option which is particularly useful, providing you with a long term financial solution to credit repayment. Rather than just simple monthly payments going to your overall balance, your credit will be divided and prioritised based on interest rate. Those with the highest interest, which are the debts that are costing you more in the long run, will be paid off in whole first. This is a smart solution to credit repayment, and provides you with an opportunity to organize your credit, and repay it responsibly and promptly.

Use these financial tools to organise your finances and maximize the rewards you can receive when spending. Credit is one of the most convenient and useful financial tools you can use though care must be taken to ensure you spend responsibly.

Compare credit cards

Whenever you are shopping for a new credit card, it is important to shop for the lowest interest rate available with different credit card companies. Different lenders have different interest rates to offer. You need to shop with each one and find who is offering you the lowest quote. You can shop wisely to get the best deal in the market. Due to the recent changes in the laws in credit cards, lots of companies are finding different ways to catch on for the lost profits from the past.

One has to be very careful before you go and sign up for a credit card, because one of their ways is to charge high interest rates in way they can. This is one very big reason why we need to compare credit cards before you go and sign the agreement and be safe to enjoy the deals provided.

The credit card comparison is very important because many a times it is difficult to understand the companies introductory rates and agreement, so we need to carefully look into the agreement not on the introductory rates. Some card issuers are very tricky and offer you really cool introductory rates that of course may last for short periods of time. some people why does not compare the interest rates may end up signing up for the wrong deal, enjoying introductory rates only to find out that in a month or two that their interest rate is really high.

It is very important to know when the introductory rates would end. Compare credit card rates with others and the agreement that they offer. It is not a very pleasant thing to be surprised with high bills at the end of the month.

Always be diligent with your research. Check thoroughly on information regarding the credit card. You can also access a reputable website where it shows reviews and feedback regarding the agreement. To compare credit cards it is very important to look into benefits and features that you can get in signing up.

These days it might be difficult to get an approval of a credit card application due to recession issues and very high unemployment rates. The interest rate that you may be offered would also be in line with your credit rating. If you have good credit history which gives you a high credit rating, you may be offered with great deals a much lower APR.

Getting your credit report does not require a long process. Everybody in the United States is entitled to get their credit report for free, once in every year. This is very helpful information that will get you to sign up to the best deal. You can never get the best deal though if you do not research well and learn to compare credit card rates.

Balance Transfer Credit Cards

There are many people who search for some promotional balance transfer credit cards so that they can shift the balance with a high interest rate to a credit card with low interest rate. You can shop for many versatile credit cards that offer zero to low interest rates. Browse through the internet and you will find a good starting point for credit card arbitrage and 0% balance transfer seekers. You may also be lucky to find a credit card with no interest rate and save money on balance transfer.

Check with different credit card companies, especially visa credit card on the internet and know their offers and packages from time to time. You will be lucky enough to find a new balance transfer credit cards.

As a matter of fact, the zero percent balance transfer is good only if it is used within the promotional period. The offer on the balance transfer credit card is for a specific period of time. Your prime intention should be to repay the balance within the offer period. If you are not able to micro manage the transferred balance after the application process is complete and before the promo expiration period, you will be in too much of a financial disaster. Once you have understood the concept of a balance transfer and use it properly, you will be able to save a lot of money in interests alone after transferring the funds from high interest credit card to balance transfer credit cards.

The offers in the balance transfer are uniquely versatile and they serve numerous functions including balance transfer arbitrage and high interest debt reduction. People having a decent credit score but because of being overwhelmed by high interest rate credit card balance can consider shifting their debt on to a 0% APR balance transfer credit cards. This way, they will be able to save a lot of money in interests and at the same time, they will be gradually working towards paying off their debts through balance transfer credit card. Once you know how to use the balance transfer technique, you will be able to weather through a lot of unexpected financial emergencies. You can make the best use of this method only if you are able to pay off the full balance transfer amount at the end of the offer period.

  • More info about credit card:

http://www.whitehouse.gov/blog/A-New-Era-for-Credit-Cards

http://www.federalreserve.gov/consumerinfo/wyntk_creditcardrules.htm

Tips on how to apply for a credit card

Everyone should be very careful enough before deciding to apply for a credit card. Many stores try to make you impulsive to go for the credit card. You should never agree to such impulsive moves. If you do not use your credit cards properly, you can fall in huge debt trap and it can spoil your financial situation for years. So you should certainly think before you act. If you want to apply for a credit card, follow these important steps.

Evaluation of your finance is very important before you apply for a credit card. Get a free credit report and make sure that everything reported on your credit copy is accurate. Most of the credit card companies will offer you their credit cards based on your credit scores. So, you should exactly know what your current financial situation is before you apply for a credit card. If you find any item reported incorrectly on your credit copy, deal with it immediately. There are many people who don’t monitor their credit report regularly and as a result are victimized by identity theft. It is very important that you clear up any incorrect negative item on your credit report before applying for a credit card.

After you have evaluated your credit report thoroughly, it’s the time to research for the credit card company that fits your credit scores. Make a list of important characteristics you want in your credit card. Shop with different credit card companies for their best deals before finalizing one. Before applying for the credit card, it is very important that you understand the terms and the policies of the credit card company. Look at the interest rates, rewards programs, and other characteristics.

Be wary of any introductory offers. When you apply for a credit card, many companies will offer you fantastic introductory deals. Before you accept such introductory offers, make sure that the terms won’t change unexpectedly after the introductory offer time period is over. For example, you need to be very clear of the interest rates after the introductory period is over before you apply for the credit card.

Once you have figured out the terms and conditions of different credit card companies, categorize them by your choice. Apply to one at a time. If you need only one card and apply to three, chances are that you will get approved for all the three credit cards. They will not only show on your credit report, but also give you the inconvenience of canceling the other two. So be patient and wait for a response.

When you apply for a credit card, you vow that you will be responsible financially. When you apply for a credit card, the credit card company thinks that you will be able to pay the balance off in a timely manner. If you are not sure of your ability to pay back, you should not apply for the credit card in the first place. Be responsible and do your research thoroughly before applying for the credit card.

Dos and don’ts of using credit cards

Credit cards often the best ways of borrowing money when they are used properly. These cards offer a lot of flexibility and come with a lot of benefits for the cardholders. You can make the best use of your credit cards and avoid any nasty surprises in the following ways:

The best of the credit card deals comes when you know the purpose of using the credit card. Many people use their credit cards in improper ways because they don’t have control on their spending or repayment habits. Keeping a credit card is useful, but you can make the best use of the credit card when you know your current circumstances. If you know exactly how to use your credit card, you can reduce the interest rates on your cards and maximize its benefits.

Every credit card company is offering their credit card deals to the customers of all categories to stay in the competition. It is important that you choose the right credit card deal and take advantages of the options available.

  • Benefits of using your credit card:

1) If you are paying your balances in full within the due dates shown in your statement, you are actually using the balance on credit for free.

2) Credit card is a safe and convenient way of paying for goods and services, particularly if you are purchasing over the internet, phone or by mail order.

3) If you have purchased any faulty goods on your credit card, you can claim for a refund from the credit provider.

4) Companies offering the best credit card deals will offer protection against fraud. If you have been victimized by some kind of fraudulent activity on your credit card, you will not be charged by your credit card company. It is important that you report the fraudulent activity to your credit provider as soon as possible and get the card blocked.

5) You get to earn a lot of incentives from the best credit card deals in the forms of loyalty points and cash backs, or payments to support a charity.

6) Credit cards are virtually accepted in every country around the world.

When you are shopping for the best credit card deals, make sure that you have read the terms and conditions properly otherwise you will be caught out by hidden charges and fees.

  • Here are some of the risks of holding credit cards:

1) While using a credit card, careful management and willpower is very important. If you don’t have a perfect control on your spending habits, you will end up in huge debts.

2) Watch out for penalty fees. Try to pay the balances in full within the due dates otherwise you will be charged high interest rates and the financial fees.

3) Making late payment regularly can affect your credit ratings severely.

4) A lot of your money will go wasted just towards the interests and fees if you are paying just the minimums.

5) If you have outstanding balances on a number of credit cards, consolidating all the credit card debts will be a good option. This way, you will be able to manage your finances properly.

Best possible ways of using your credit card

Good credit rating is a must. Always make sure that you are paying your credit card bills on time and in full. Never exceed your credit limit and while you are cautious about your credit ratings, don’t increase your total amount of debt by going for different credit cards. These are the excellent ways of boosting up your credit profile and any future lender will be impressed by looking into your file. Your credit scores will be calculated on the basis of your credit ratings and the three digit number will finally decide your interest caps. Whether you are a risk to any potential lender’s finance or not, your credit score will put your overall picture of your financial situation and you will get better deals on your mortgage and auto insurance. Keep your scores up.

Protect your big purchases. Under the Fair Credit Billing Act, you have the right to withhold any payment to a merchant if they have sold you a damaged or defective item on credit. Your best bet is to resolve the problem directly with the merchant immediately. If this is not working, then you can request your credit card company to investigate the problem. If you are able to prove the credit card company that the item sold to you is defective and the merchant does not co-operate, the charge will not be added to your bill. Purchases made by debit card are not covered under the Fair Credit Billing Act. Check with your credit card company if they offer any extended warranties and other protections on large purchases made on the card. You can get the best credit card offer from your credit grantor. Browse for credit card news on the internet and you will come to know about different companies with such additional offers.

Do safe online shopping. Online purchases are also regulated under the Fair Credit Billing Act. You can get the best deals on the internet by shopping with your credit card. Many credit card companies don’t compromise with security factors. They will offer you a one time use account number for making big online purchases without disclosing your actual credit card number on the internet. A company can easily stand out if they have best credit card offers for their customers in store. Keep yourself updated on the credit cards news.

Use your credit card for a lower interest rate loan. If you have a very good credit rating, you will easily get a zero percent or low interest rate loan. This interest rate on your card might be much better from other companies offering loans. You can make a big purchase on your card without taking any other secured or unsecured loan.

Credit card protection plans

Everyone works hard to earn their living. After the hard day’s work, we all sit down at the dinner table, looking forward to a nice and delicious meal with our loved ones and suddenly something inevitable happens.. The phone rings.

Who’s on the other side of the phone? It’s one of your credit card company and they want to discuss something urgent with you right away. You feel nervous, your heart beats faster and you run through the fear of an identity theft or unauthorized charges on your credit card. Your mood is spoilt and the dinner is gone wasted.

There are numerous credit protection plans for the average consumers. It comes in variety of ranges and with flexible terms. These are basically a form of insurance packaged and promoted with the terms that your credit scores and pocket will be safe if some kind of unexpected things happen.

Every credit protection plan is different. They are mostly offered on credit card accounts and small consumer loans that are not attached to any collateral. These plans give you the reassurance that if certain unexpected things happen in your life, the company will make your minimum monthly payments. Say for example, if you run through a job loss, or a divorce or have an accident which leaves you disabled, you will get some kind of benefits as a help in your time of need.

It sounds pretty good to hear but here’s the kicker. These companies will rarely do when its time to and what they have committed in the beginning. Instead, there are a number of loopholes on these credit protection plans on which you have been regularly making monthly payments. It can be more painful than paying a corporate income tax bill.

I have seen few companies who actually advertise their products in a legitimate way and work according to the terms mentioned in the contract. That’s why I happen to be more curious when I draw some kind of comparison.

You can be smart with your money if you are able to analyze potential expenditures and make best use of available resources.

The credit card protection plans often turn out to be expensive, most of them will cost you around $.79 – $.89 per month for every $100 of your balance. This is where the catch falls because most people think that if they pay off the credit card every month, it will show a zero balance. But the fact is that the charges are still adding up and that remains hidden.

Your credit card bill shows a balance the moment you use your card once a month and the credit protection plan fee is charged before any payments are credited to your account. That’s the way for the credit card companies to run their business by putting charges on the consumers. If you intend to buy a plasma TV that costs you $5,000 and you intend to pay it in full within the due date, you will still be charged for the credit protection plan fee. At $.89 per $100 of your balance, that would come out to $44.50. This is a calculation on just one transaction. You may be doing few more transaction during the month and you intend to pay it in full within the due date. The credit protection fee will add up on every transaction done and you are planning on paying this card off when you get your statement.