Credit Cards
Some credit card comparison websites
Credit
1. A contractual agreement in which a borrower receives something of value now, with the agreement to repay the lender at some date in the future. Also, the borrowing capacity of an individual or company.
2. An accounting entry system that either decreases assets or increases liabilities.
One of the best tips, the Golden Rule, when using these cards is to remember credit cards treat balance transfers, purchases and cash withdrawals at different rates. Its good practice to keep these spends separate, since for example a low purchase rate card may have a high interest on cash, and you’ll pay interest on the cash all the while you repay the cheaper loan (which can take months to pay off)
There are three types of card I use:
- Balance Transfer Card
- Day To Day Purchases
- Rare purchases
This is a card used to carry balance transfers. Once a balance transfer is done (usually from higher interest cards to a 0% offer) the card remains in the drawer. It is NOT used for purchases or getting money out of the wall, or paying bills. The prime qualities of this card are 0% on balance transfers, low balance transfer rates (anything below 2.5% is good). Spending ont his card means that balance is not paid off until the rest at lower interest, making it very expensive for those purchases as you are paying it off over a longer time, all the while it accrues interest.
This card is used to cover expenses in the month and paid off at the end of the month in full. As interest is charged monthly, if you have paid off this card by the time interest is calculated (end of next month) you do not pay any interest on the amount. You do this for two reasons: keeping the money in your bank account lets it accrue more interest if in the black, or less debt interest if in overdraft, and secondly some cards give bonuses for use such as money back or points that can be spent buying other items such as petrol. The key feature of these cards is the bonus scheme, which varies.
This is used for emergencies, such as unexpected bills or big payments. The key features of these cards are low purchase rates. Cards usually have three rates of interest – rates for balance transfers, purchases and cash. Cash interest is usually the most and should only be used in dire circumstances, or when abroad when only credit cards are accepted.
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Low Interest Business Credit Card is Equal to Long-Term Business Benefits Thursday, 12 November 2009, 1:29 am
So, you want a business credit card for your business but don’t know what to look for in a credit line. Well, the first thing you should look for in a business credit card is its offers. Then, you can go down to the remaining details such as the interests. Most people would definitely go for a low interest business credit card because of its reasonable offers. That would be the best choice especially if you’re just starting out on your business.
When you apply for a business credit card, the first thing you have to bear in mind is that you have to pay it later. Though there are rewards in using a credit card, it would still be best if you try to manage your business expenses properly because in the end you’ll be the one to endure the trouble of paying. But don’t fret because your business charges you have on using your small business credit card is separate from your personal expenses. And that’s exactly what you need if want to properly manage both your business and personal charges.
Going for a low interest business credit card is a good option. Because even if you use your card frequently on major business dealings, the charges that the credit card company will be granting you is smaller. And that would help your business grow and eventually achieve financial stability. So, if you’re planning on opening a credit line for your business, get the low interest business credit card for long-term benefits.
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Ailene G. Alcomendas is a freelancer from the Philippines. You can visit her personal site at http://ailenealcomendas.info for more info.
Source: http://www.articletrader.com
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