Business Credit Cards for Building
Credit - Knowing The Opportunities
If people have
Credit, how do they
tell which Business Credit Cards
to select when there are so many opportunities?
This article discusses several varieties
of cards to provide a better understanding
of the advantages of each:
Money Back - With a Money Back
card, you may be offered a repayment that equals
a fraction of their purchases. For example,
if somebody has a Money Back
solution that awards five percent cash back
on food, gasoline, and pharmacy
purchases, as the rewards accumulate they earn cash value. If you
use a hundred fifty dollars in fuel, supermarket items,
and drugstore purchases every week, at
the completion of a 12-month period, almost $400
in cash would be available.
Redeemable Points - Instead
of offering cash rebates, some lenders
present customers with points programs. Customers get
rewards when purchases are made. As purchases are made, the rewards
increase. When you earn enough points they can be redeemed for items including
free travel, gift items, subscriptions, and more.
It is smart to be aware of whether or not the Business Credit Cards
for Building Credit that you want will offer
a points program.
Gas Rewards - Lenders
can be understanding about the cost
of gasoline and will give incentives to
consumers for making card purchases by offering them a prepaid
gasoline card. As the card is used, points are accumulated. Once enough points have been earned they can be redeemed for a
prepaid gas card. Sometimes, fuel points can be earned
when you are gassing up your vehicle.
Reward Points Toward Free Hotel Accommodations, Car Rentals, or Frequent Flyer Miles - When these cards are used, redeemable points that can be cashed in for free travel miles are earned. Once a certain number of points have been accumulated, they can be cashed in for discounted or free airline tickets or travel accommodations. These rewards work best for those who travel a lot.
0% Promotions - Finance charges are not applied on these cards for a specified amount of time.
The period where no finance charges are being applied generally spans six to twelve months.
Typically, folks use this interest-free period
to shift outstanding balances from their interest bearing Business Credit Cards
to one of these and pay the balances off within the promotional period. Keeping monthly payments up to date is very important.
When just one payment is paid after the due date, typically
the introductory rates are changed to another
rate. Customers that are approved for
Business Credit Cards for Building
Credit, and are offered an introductory period free of finance charges
should choose this great opportunity.
Secured Cards - Customers that have this type of card
simply inserts a certain amount of money in an account specified by the secured card issuer.
This becomes the card's collateral Once the account is set up, a card is
extended to the applicant with a spending limit equal to
the amount that has been deposited in the account. Each time a transaction is approved the credit limit decreases, low rate
monthly payments are determined, and a bill
is sent. If purchases are made low monthly payments will become due. Secured Cards
are awesome because they function like
conventional credit cards allowing you
the freedom to book travel accommodations like rental cars
that typically do not accept standard bank account
cards. Another great feature is that approval is ordinarily
guaranteed whether you have good credit or not. This can help in the rebuilding process because many
secured card companies submit whether or not you are keeping up with your payments
to be added to your credit profile. This could be a wonderful
approach to show creditworthiness by showing regular
payments no matter if you have Building
credit or not. Once you make
six to twelve payments on or before their due date, most issuers will increase your credit limit without
requiring an additional deposit.
Pre-paid Credit Cards - With
a Pre-paid card, there is no question about the credit limit. Just like
a typical bank account, a certain amount of money is deposited into an account and this is
the credit limit. When the prepaid account
balance reaches zero, you can recharge it with an additional deposit. Prepaid cards
work wonderfully for parents to use to give an allowance to their teen or college student, they allow people to make online purchases, and they work well for individuals that are unable to
acquire a conventional checking account.
Fast approval is generally guaranteed despite
your credit report and there is
no need for the bank that issues the prepaid cards to deal with Experian, Equifax, and TransUnion.
With all of the different varieties
of Business Credit Cards
for Building credit and
incentives that each of them offer, there is something for everyone. Consider
Business Credit Cards that offer rewards that match your lifestyle and spending style. Make an educated choice and be sure to
stay within your credit limit and make your payments on time every month. Superb credit is a terrific
thing to have.
To make certain that you keep building the perfect FICO profile, follow these few tips:
1. Always have your bill at a percentage of the
card's limit. Simply put, do not
"go crazy". It is smart to retain
an account that is no more than forty percent
of the limit on any
Business Credit Cards for Building Credit.
2. Do not default on payments. Even if the minimum is the most that your budget will allow, pay it. When payments are made more than 30 days late, it may be told to the credit reporting companies. This negatively affects your FICO score. Unfortunately, when this happens you may also be assessed more points on the card's interest rate as a result of just one past due payment. Thus it is smart to make payments.
3. Pay the balance in total every time you can.
When purchases are made, make it your goal to
take a few months and pay it off as many times a year as possible. Then once your balance is paid off it is okay to
begin creating transaction activity (like buying gas, shopping online, or making purchases) then pay it off once again after over the course of a few billing cycles, and keep this pattern going
This sequence demonstrates to the lenders
that you can be creditworthy. Some of the other benefits of this approach are
low rates, more of a limit, and a better FICO score.
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