Credit Card ’s Talk

Typically, when one approaches the register at a department or retail store, they will be given the opportunity to apply instantly for a store issued credit card. The pitch is that upon approval, the customer will receive 10% off of their current purchase using their new card. Everyone enjoys savings, so many people bite immediately at this offer. The problem is that this enticing, one-time savings, blocks the better judgement of the consumer. Few people ask for information regarding the introductory APR on the card. If they do, the salesperson rarely knows. Usually, APR’s on store issued credit cards starts at 21.99-23.99%. This APR is reserved for people with good credit. Introductory APR’s on store credit cards may start as high as 28.99%!

This is how the store benefits. They issue a card immediately without having to spend any money on advertising to gain an applicant. They immediately attain a balance on the card which has a high APR. They also get the consumer to return back to the store because they are carriers of their card. Plus, these cards may be used to make online purchases or catalog purchases over the phone. Their only loss is 10% of a purchase that they will more than double from each consumer over time.

Let’s say that you are a responsible individual. You want the 10% savings, so you figure that you’ll use the card, immediately pay the balance in full, and never use the card again. This seems like a legitimate thing to do, but it has a few flaws. You benefit from paying the balance off immediately because you’ve just saved 10%. True for the short term. Longterm, you may run into problems. It would be unwise to cancel this card directly after paying off the balance because it would show up as a closed account on your credit report.

Closed accounts on credit reports are viewed as negative by lenders. So now you’re stuck carrying a credit card that you won’t use because the APR is too high and it doesn’t come with any long-term rewards program. You will probably receive periodic credit limit increases over 9-month terms, especially if the lender sees that the account has a zero balance and no delinquent payment history. Each credit increase will directly affect your potential debt. Thus, potentially impeding your potential for credit card approval on cards that you will actually use. Is this worth the initial 10% that you saved?

If you want to save money on purchases, there are much better alternatives than store issued credit cards. One option is applying for a cashback credit card. These cards are issued by major issuing banks and typically come with low APR’s on purchases and balance transfers. Recently, Chase Manhattan Bank has replaced their Chase Cashbuilder card with the Chase Cash Plus Rewards Visa. This card has an intro 0% APR on transfers/purchases, no fee, and a 12.99% variable APR thereafter. You may earn up to 5% cashback on purchases or choose from a variety of different rewards, such as travel and merchandise. Savings using this card or other similar offers wisely, are much more lucrative than those of a one-time 10% savings on a purchase.

There are other specific rewards programs available. Chase also issues Disney, Starbucks, Borders Books & Music, and Avon Visas. Citi issues a Home Rebate Mastercard featuring mortgage savings and a Upromise Mastercard featuring future savings on college tution. All of these come with lower APR’s than store issued credit cards.

Another thing to be wary of are gas rewards cards issued directly from gasoline merchants. These credit cards typically come with high APR’s similar to those of department store and retail issued credit cards. If you are interested in saving money on gas, many banks now feature gas rewards cards. Chase currently offers Hess Visa and the Chase PerfectCard (which provides cashback on gas purchases), while Citi has just launched their Shell Mastercard. Applying for these cards from banks rather than merchants will provide you with greater savings and lower APR’s.

Be wary of signing-up for any merchant issued credit card. Read the find print and ask as many questions as possible before enlisting. These decisions may affect both you and your credit longer than you may think.

? Credit Card Outlet

Russ Nauta is a senior staff writer and investigator for Credit Card Outlet.

Credit Card Outlet has been a leading consumer credit card information portal since 2004.

This article may be reprinted with a live link back to http://www.credit-card-outlet.com

Are you a small business owner? If you have established a good credit rating for yourself, you should consider getting a business credit card. There are many business credit card programs that you can check out. Business credit card offers include low APR, zero introductory interest rates, balance transfer options and rewards in the form of airline miles and cash backs. And if your small business sends you traveling frequently, you can get travel discounts on cars, hotels, travel insurance, and even restaurants when you use a business credit card.

Lower Interest, Higher Credit Limit

If you have credit history that is better than normal, you may be able to avail of a business credit card that has lower interest rate and higher credit limit as compared to other cards. As a business owner, you tend to spend more and maintain higher credit card balance than the average credit card user. This is the reason many credit card companies are willing to offer you better rates and benefits.

Handy for Small and Large Buys

A business credit card is handy when it comes to small and large expenses. You can use a business credit card for items like office furniture or stationary supplies. With a business credit card, you won’t need to maintain a small cash account anymore. Since a business credit card has a higher credit limit than a standard credit card, you can use it for unforeseen expenditures and pay it off as soon as you have the cash.

Useful Come Tax Time

Having a business credit card becomes incredibly useful when tax filing comes around. This is because almost all companies that provide business credit cards also offer free quarterly or annual reports categorizing all your expenses. Come tax time, this convenience allows you to keep a tab on your cash flow and separate your business expenditures from personal expenditures.

Superior Customer Service

The customer service available for business credit card holders is far more superior to any other service. Companies provide many 800 customer service numbers for business credit card holders to make sure that they maintain business owners as customers.

Issuing Business Credit Cards to Your Employees

If you have employees, you can issue business credit cards for them too. You or your authorized representative can specify additional credit card holders. Each of them will be given different account numbers but all are hooked up to the main business credit card account.

With this kind of setup, you can easily track and manage the expenditures of your employees. You also would be able to find out if anyone is misusing company funds or abusing his or her credit card.

To cancel any account, a simple phone call to customer service would suffice. Canceling an account will not affect the primary business account. However, as the primary account holder, you remain responsible for charges made on other accounts. One way you can deal with this potential problem is to issue pre-paid cards to your employees. You can load the cards with a specific amount, automatically setting the card’s upper spending limit.

Smoothing Out Cash Flow Bumps

Most businesses have lags in their accounts receivables. Having a business credit card can help smooth out those cash flow bumps. You can pay with your business credit card then invoice your clients. You can make the payments once you receive payments from your clients.

Where and How to Get a Business Credit Card

You can apply for a business credit card from any of the major financial institutions. You can choose from the various programs they are offering. From Platinum to Debit cards, these companies offer low rates and no annual fees. You do not need to provide proof such as a business license in order to be approved for a business credit card.

If you’re Internet savvy, you can even apply for one right on the card issuer’s web site. You only have to complete the application form and hit the submit button. An automated computer system then performs a credit check and you’ll get an answer in just a few seconds. So if you’re a busy business owner, applying for a business credit card online is a great option for you.

Need more information on how to find the best business credit cards then try visiting BestOnlineCreditCardOffers.com where you will find a wealth of information on instant approval credit cards, low interest credit cards, prepaid debit cards and secured credit cards

1) Do your homework. Applying for and getting approved for a credit card is nothing more than legwork. Credit card contracts can sometimes contain onerous terms that might make you sorry that you signed up for the new card that you did. Read the fine print carefully. If a deal looks to good to be true, it just might be. Credit cards can be a great way to finance your purchases, but make sure it’s not at such an expense that you end up paying for a long time afterward.

2) Read about the APR. The APR stands for ?annual percentage rate?. Yes, the APR of a credit card is important no matter what people tell you. A low APR for a credit card is more critical than you think. When you sign up for your new card, you probably are thinking that ?hey, all I never miss a payment so who cares what the APR is?? The fact of the matter is, expenses come up. Unexpected expenses that you have to pay for no matter what. If your credit card’s APR is low and when those expenses arise, you will be in a better financial position when you pay it off. You would rather pay off your a credit card’s 4% on $1000 than 15% on $1000. This can make a world of difference.

3) Compare offers. Not all credit card offers are made the same. All credit cards that you see will appear to be physically similar (made out of plastic), but these credit cards can often be worlds apart. Some offer reward points, sky miles, cash back, and bonus dividends, while most offer nothing at all. If you are going to pick a card, make sure you get the most out of it you can. Finding out later that you could have had 50,000 Sky miles when you actually got none can be quite a surprise. Compare offers, compare banks, and get the best credit card deal you can.

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