How Business Owners Can Choose a Credit Card.

Small business owners now have a wide variety of credit cards to choose from, and it makes it difficult to choose the best one for your small business. As a small business owner, you will need to decide which features you think that the company will use most often, and if they are worth using and having, before applying to a card. Many of the credit card companies now offer many attractive tools that can and will help each small business owner in their everyday spending and tracking. Also remember that it is harder to keep getting credit cards after the first couple, so choose wisely when choosing business credit cards.


Should you pick a business card that offers rewards or miles?

If you have no problem paying off the credit card debit each time the statement comes in, then the point rewards or cash back is the way to go for you. With the cash back and rewards credit cards, they give you rewards for spending money on everyday business needs, which is money you are going to spend anyway, so why not be rewarded for it. Another option to consider when choosing a credit card is the travel reward and miles credit cards. Do you or someone in your company travel on a regular basis? Then a travel reward or miles reward card is the type of card you might want to use. Most of the popular airlines have now teamed up with the credit card companies to bring business owners a reward for traveling for business purposes.

Should I get help tracking and reporting your expenses?

Most credit cards that are geared for the small business and even for larger businesses now, have a feature that is attractive in more than one way. The credit card companies can now track the categories that money is being spent on every month, and they can also provide a quarterly or annual spending report. This comes in handy during tax time. If you plan to use the same credit card for all of your expenses, this may be a great option for you.

Do members of your staff need to have access to a credit card?

Most of the credit card companies that offer cards to small businesses have a feature that allows employees of the business to also carry a credit card. This feature helps the business owner and the employee. When the employee travels now, they have the business with them to back them up in case anything should come up. Employees now can keep track of their spending for business related purposes a lot more efficiently now. The credit card companies can also track the credit card expenses separately so there is no confusion over who spent what. Not to mention the reimbursement paper work and waiting will now be eliminated. The credit card companies also allow the owner to set the amount of funds that are available to each card.

Small business owners also need to watch out for credit cards and the rates they charge with balance transfers and also with the APRs. This can be a great asset to a small business owner. Zero percent interest on balance transfers seems to be the going rate right now, and makes it nice to have an interest free loan for a little while, but beware! If you miss one payment you will lose that nice 0% APR and will have to pay the full rate.

Credit cards have changed so much over the years. They are very helpful to the business owners and their employees. Most credit card companies have now done away with the yearly fees that used to be associated with owning a credit card. So, if you are a business owner that pays the balance every month, these are the types of cards you need to apply for.

Credit Card Options for Minors - important!

If you’re like a lot of parents, your first thought upon reading this title was, "Are you crazy? Why would a child need a credit card?" But believe it or not, the reasons extend well beyond the shopping mall.

Credit cards are handy for children traveling abroad or even locally with school or a youth group. They won’t be renting cars, but they will be eating and almost every fast food chain now accepts them. It’s also something your child can keep handy just for emergencies. There are plenty of other reasons why minors should have credit cards, including as a tool to teach financial responsibility.

Giving a credit card to a minor really is a decision only parents or guardians can make. If this is something you’ve been considering, here are some options to consider.

It’s important to realize first that minors cannot have their “own” credit cards. Issuance of a credit card is a contractual matter and because of their age, minors aren’t allowed to enter into legally-binding contracts. Therefore, a minor’s credit card has to be attached to a parent or guardian’s account.


Secondary cardholder

Listing a minor as a secondary cardholder is easy. Applications and credit history checks aren’t required because what matters is the creditworthiness of the primary account holder. A secondary card might have a different account number, making it easier to track expenditures or to cancel if it’s ever lost or stolen.

But on the downside, the primary account holder assumes full responsibility for making all payments. Should problems arise, it’s the primary account holder whose credit history is affected.

Debit cards

These look and feel just like credit cards but there’s one big difference: no credit’s involved. Debit cards are linked to bank accounts and as purchases are made, funds are immediately withdrawn. The downside of being linked to a parent’s checking account is immediately apparent when the minor doesn’t control its use and the parent suddenly finds a depleted bank account. So do yourself a favor and find a bank that offers youth accounts. That way, your child can only use the debit card as long as there is money in his/her account. If spending is managed, youth debit cards are great for teaching children that they have to earn money before they can spend it!

Charge cards

The difference between a charge card and a credit card is that at the end of each billing cycle, the balance must be paid in full; interest doesn’t accrue. It’s another situation in which the minor is considered a secondary card holder. Because you can’t carry a balance with a charge card, it is a good way to stress the importance of managing spending.

Prepaid cards

These are cards onto which you load money that can be used for making purchases anywhere the other major credit cards are accepted. As long as money’s available, they can also be used at ATMs for cash withdrawals. When funds run low, all mom or dad or the child has to do is reload!

Info from www.creditorweb.com