Personal Business Cards » Personal Credit Cards

Business Credit Cards Vs. Personal Credit Card – a Look at the Pros and Cons

admin — Sat, 19 Dec 2009 04:30:16 +0000

Pros and Cons of Business Credit Cards and Personal Credit Cards

In recent years, Americans have readily embraced the practice of ecommerce and cashless transactions. The advent of Paypal, Click2Pay and almost every kind of credit card imaginable has made paper money almost irrelevant.

Cash, in fact, has become the exception rather than the norm. Very rarely do you see people with thick stacks of money inside their pockets, and if you do, it most often is a cause for alarm. In fact, store clerks and tellers have been trained to alert authorities whenever they encounter customers who pay for expensive purchases with cash. But I digress. Going back to the subject of credit cards – that wondrous contraption which allows you to shop with just one easy swipe – its widespread popularity has prompted banks to make this work to the advantage of business owners or the corporate industry.

And why not? Considering the countless financial transactions that a small to medium business makes, running out of petty cash for major or secondary supplies procurement, bills payments, or a host of other business expenses is a common experience. A good number of these entrepreneurs have initially tried using their personal credit cards to cover these expenses, but more and more have been shifting to business credit cards for different reasons.

Would You Choose a Personal or Business Credit Card?

What sets a personal credit card apart from a business credit card, and why is one being compared to the other?

In terms of credit limit, personal credit cards have a lower credit line, while the latter can have a credit limit of up to $50,000. Also, a month-end repayment is compulsory for a personal card, while a business credit card allows you to pay just a smaller minimum amount.

In both cases however, interest rates increase for the remaining unpaid amount which is added onto next month’s card bill.

Let’s Weigh the Advantages

A business credit card, when simply used for important business transactions, can offer a wealth of advantages that would benefit the whole company.

First of all, business transactions of all sorts can arise anytime, and in times like these, the business credit card is the answer to every businessman’s prayers.

A business credit card can help a company overcome challenging financial trials. This paves an easier way to facilitate expansion.

Personal credit cards and business credit cards must be distinguished from another by more features. Business credit cards are much stricter in conducting character reference tests – and require a host of other relevant documentation to be submitted before the actual application processing occurs.

What will happen if you both you use your personal and business credit cards? Simple, you have just made yourself credit card payment overload bait. Unless otherwise specified, you may find telemarketers calling you for different debt consolidation or debt settlement contracts. Worse, you may actually run across some who carry the same Hershey’s Kisses wrappers you have been holding onto for so long.

By: Klye Anderson

Business Credit Cards and Business Debt – A Dangerous Combination

admin — Fri, 09 Oct 2009 08:38:28 +0000

Does your business rely on credit cards for working capital? A recent study conducted by the Ewing Marion Kauffman Foundation shows that almost 60% of small businesses relied on credit cards to provide funding for operation during their first year. The study concluded that reliance on credit cards to finance the early years increased the likelihood that a business would be in the 50% of startups that failed within 4 years.

Amazingly even a debt as small as $1000 made a significant difference in a company’s ability to survive past the 5 year mark. The pattern for credit card use show an increase in debt over the first 5 years of operation. It is those companies that start to pay down that debt by the end of their 4th year or so that are the ones to succeed. The extra burden of paying off the credit debt is often too much for some young companies who might otherwise have succeeded.

The increased use of credit cards for small businesses is a result of the ease in which cards were obtained even up to 2 years ago. They are easier to get than business loans or lines of credit… Of course there are many other factors that impact a business’ ability to make in these tough economic times, but the use of credit, even in small amounts, early on seem to take their toll.

Unfortunately, the new laws that recently went into effect for personal credit cards do not impact the business credit card industry. This report reinforces the need for the same kind of reforms for the users of business credit as there are now for personal credit. As I mentioned in a previous Ezine article from June, if you use your personal cards for business and have more than a $25,000 limit with a high balance, your personal card may be viewed as a business card and exempt from the personal credit card laws.

Are you still using wither personal or business credit cards for your business? Are you able to pay them off or are you running an increasingly large balance each month? Keep yourself out of that 50% who go under by making a conscious effort to decrease you dependence on credit cards for things you can pay cash for. Work to decrease those balances and make sure you don’t lose your shirt!

By: Linda Adams

New Business, New Credit Card

admin — Sun, 30 Aug 2009 00:12:17 +0000

So you’ve decided upon the idea and thought long and hard about the name – now it’s time to get your new business up and running. You may have an amount of capital from investors, which needs putting into a business account. It’s also now time to seriously consider applying for a business credit card that can compliment that initial capital investment.

Many new business owners are unsure as to why they might need a business credit card. Surely it’s just as easy to put any funds into a personal account and run the business from there? Unfortunately, this couldn’t be further from the truth. Separating personal and business finances should be a priority for all new business owners. Not only will it minimise the amount of paperwork necessary during accounting periods, but it will also look far more professional to the Inland Revenue Service when it comes to submitting accounts. Business credit cards also offer spending reports, allowing you to identify spending habits – an advantage which most personal credit cards do not offer. Having separate accounts makes finances easier to manage and also makes it far simpler when it comes to things like declaring expenses – something that the majority of employees have to do at some point. In addition, you can request further credit cards for employees; a facility that is not possible with a personal credit card. These cards can have spending limits attached to them and transactions can be tracked online to ensure that all employee spending is necessary and within the set limits. In addition, the business owner can see exactly what has been spent, even if an employee forgets to submit the appropriate receipts.

A business credit card also allows a new business to qualify for particular deals and discounts that are designed with companies in mind. These can include perks such as reward schemes on certain products and services or offers on Airmiles or travel insurance. These benefits can be particularly advantageous to small and medium-sized businesses if the card is selected with the perks in mind. For example, a business whose employees travel a lot might choose a card where travel insurance is discounted.

The security offered to a new business through a business credit card is also a very important factor. These cards offer protection against fraud, theft and there are even capabilities that offer protection against employee misuse. Card security can give the new business owner far more peace of mind and prevent unnecessary expenditure in the event of the ever-present threat of Internet fraud or ID theft.

The most vital aspect of a business credit card for a new business is the credit itself. Credit can be used for a variety of reasons, not least of which is managing the company’s finances during times of restricted cash flow. As the credit does not touch the business’s cash account, supplies can still be bought and services paid for whilst you’re waiting for customer balances to be settled. Of course, the APR and monthly repayments have to be considered, but there are plenty of introductory offers out there to suit even the most lowly of beginnings and these are often matched by cheap rates once the introductory offers have expired. Using credit also helps to build up a company’s credit rating and opens the door for further business credit and greater sets of benefits and perks.

It may appear easier to simply trust your company finances to your personal credit card, but the advantages of a business credit card specifically designed for your business needs are obvious. Business credit cards are designed specifically to deal with the stresses and strains demanded by a company. A personal credit card is not. Finding the right business credit card for you is a process of elimination, comparing and contrasting the deals on offer in the marketplace. With over 500 business credit cards available, comparison websites are an extremely useful resource to help you make the right decision and provide your company with a practical, useful and valuable asset.

By: Hannah Callen

Obtaining Business Credit – A Simple Roadmap

admin — Thu, 06 Aug 2009 18:02:44 +0000

Obtaining the business credit to start a business or grow your existing business, even if your personal credit rating is less than perfect, is still possible even in these times of tight money. Securing business lines of credit will require some work on your part to get accepted when a lending institution reviews your credit application. Here are some tips to make this process easier for you.

Don’t use your personal credit cards to fund any of your your business expenses. Your personal credit score is of little value when you are establishing business credit lines. In many, you will not even have to provide your social security number. There is also the benefit of separating your personal liability from you business liability.

You do need to incorporate your business rather than acting as a sole proprietor. That means following the legal procedures necessary to have it listed as an LLC or other corporate enterprise. By doing this you can also save on your taxes. Once you have done this, obtain a credit card or cards in the name of the corporation or LLC. The debt incurred on these cards may or may not be personally guaranteed, but will not affect your personal revolving debt ratio.

Always keep your personal and business revolving debt ratios at 10% or less. This will help you to more credible to lending institutions when you are trying to obtain cash credit or lines of credit.

Separating your personal and business credit can also improve your cash flow and saves you money when tax time rolls around. By taking these few steps your business will become stronger in the eyes of both the lending institutions as well as vendors you might be interested in using.

By: Ron Lerman

A Review Of Shell Credit Cards

admin — Thu, 06 Aug 2009 12:16:00 +0000

There are four main credit cards offered by Shell in association with Citibank. Two are designed for personal use and the other two for business use.

The cards carry the standard benefits and features like any other gas credit card so there is not much to get over exited about. You can see the similarities and differences between the cards listed below.

Shell Personal Credit Cards

Both the Shell card and the Shell Select member card share the following features:

• No Liability on unauthorized charges

• You can access your account anytime online at no cost

• Flexible payment terms

• Cards can be used at ATMs subject to cash advance fees

• The cards are accepted at thousands of convenient locations

• You can pay at the pump for your convenience

Here are the major differences:

Shell Card:

Annual Fee

• None

APR

• 22.49%

Cash Back on Hotels and Motels

• Sorry

Cash back on Airlines and Rentals

• Sorry

Emergency Cash Benefit

• Sorry

Travel Reservations Services

• Sorry

Shell Select Member Card:

Annual Fee

• $29

APR

• 22.49%

Cash Back on Hotels and Motels

• 10%

Cash back on Airlines and Rentals

• 5%

Emergency Cash Benefit

• $1000

Travel Reservations Services

• Available

By paying the extra $29 per annum, I think the extra benefits you receive with the Shell Select Card are well worth it. I am sure you can earn the annual fee back through the savings you make over the 12 month period (Once you use your card regularly enough).

Shell Business Credit Cards

With the Shell business cards, companies can manage their fleet more effectively by saving money and controlling expenses.

The benefits that are common to both Shell business credit cards are as follows:

• 24/7 online account access which is free of charge

• Option to choose flexible payment terms

• The Shell business cards are accepted at thousands locations

• Pay at the pump convenience

Shell Fleet Credit Card:

Annual Fee

• None

APR

• 22.49%

Option to Revolve

• Yes

Fuel Discounts

• Sorry

Assigned Card Per Driver

• Yes

Detailed Monthly Transactions

• Yes

Fuel and Oil Only

• No

Security of assigned

Driver ID Numbers

• Sorry

Fuel only

• Yes

Spending Restrictions

• None

Shell Fleet Plus Card:

Annual Fee

• $0 Introductory for 12 months

APR

• None

Option to Revolve

• Sorry

Fuel Discounts

• 1.5% – 3%

Assigned Card Per Driver

• Yes

Detailed Monthly Transactions

• Yes

Fuel and Oil Only

• Yes

Security of assigned

Driver ID Numbers

• Yes

Fuel only

• Yes

Spending Restrictions

• None

That is pretty much it for the shell cards, nothing to scream about, but still they are very solid gas credit cards that would do what they say on the tin.

If none of the above features make you tingle with delight, you can also review other gas credit cards.

There are others amazing offers on the market with benefits such as:

• Double cash back bonuses

• Unlimited cash rewards

• Double gas rebates for two months

• $600 statement credit when you lease selected vehicles

…and many more.

Don’t limit your options just to the Shell cards, explore what is out there, then compare, review and apply for your gas credit card.

By: Anthony Samuel

Understanding Business Credit Cards

admin — Sat, 01 Aug 2009 19:41:28 +0000

Although business and personal credit cards are relatively similar in terms of general purpose, business credit cards also have a number of additional features which allow businesses to keep control and track of company expenditure.

Business cards are a great way to take care of everyday business expenses without the need to carry cheques or petty cash. A business credit card is issued in the name of a business and the debt is the responsibility of the company and not the individual using the card.

Company spending is channeled through a single account and management are provided with reports which include itemized listings of purchases. Controls can be used to limit the amount each authorized person can spend and restrictions can be put in place to prevent misuse such as cash withdrawals from ATM’s. Simple features like these give business owners the peace of mind they need when it comes to one of the most important parts of a business – the cash flow.

Just like personal cards there are a number of options to choose from including low rate company credit cards, cards with large rewards and credit cards with interest free periods. Business Credit Cards may also come with complimentary features such as insurance and banking discounts.

Company cards are usually cheaper than cheques, more secure than carrying large sums of cash and provide separation of business and personal expenses. In our increasingly cashless society, they can also help save time and money with everything from online shopping and bill payment to corporate hospitality.

When it comes to choosing a business credit card, find a credit card which complements your business needs. Don’t be afraid to shop around for the best deal or negotiate with your bank for a better deal. By evaluating and understanding your monthly expenses and business requirements, you will be able to determine a card which best suits your business needs and gives you the flexibility and control you deserve.

By: Clare Witham