Become an Authorized User

It’s the old Catch-22 we’ve all experienced: You need credit to get credit. So where does that leave young adults who are trying to build their credit for the first time? Credit prospects can be bleak unless you have a family member who is willing to add you to their credit card accounts as an authorized user. If you can get added, you will reap the benefits of the account holder’s good credit history. (Just be sure that there is a good credit history to be had, because you’ll also face the disadvantages of the account holder’s bad credit history.) This arrangement, called “piggybacking”, has helped many young people establish their credit. Note that FICO’s new credit scoring model still recognizes piggybacking between relatives, but strangers who try it will get little to no reward.

Check Your Credit Report – Seriously

We all know that it’s important to check credit reports when you want to qualify for credit, but you also need to check yours regularly for fraudulent or erroneous charges. The vast majority (79%!) of credit reports contain errors. You don’t want to miss out on a new house or car just because the credit reporting agency made a mistake. Also, by checking your report on a regular basis, you can see which lines of credit have been opened in your name, giving you a chance to stop identity theft early while the damages are still minimal. You can get a free copy of your credit report at www.annualcreditreport.com. The FTC web site contains information about disputing items on your credit report.

Need a Mortgage? Try Rapid Rescoring.

If you do find mistakes, but don’t have time to clear them up before applying for a home loan, you can take advantage of rapid rescoring. This process requires the charges to be errors, and requires you to have proof that this is the case. Bring all the documentation you can to back up your claims, and you can have your credit score recalculated – minus the errors – in just 72 hours. Ask your mortgage broker for more details.

This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for credit cards online. More... (http://www.creditorweb.com/articles/3-fast-ways-to-improve-your-credit-score.html)]]> Credit scores are more important than ever now that lenders have tightened their purse-strings. Experts see signs of improvement on the horizon, but there are plenty of dark days yet ahead. Until the credit crunch eases, you should do everything you can to make sure your credit score will qualify you for the purchases you want to make. Here are three fast ways to improve your credit score, legally and legitimately.

First, the bad news: your credit score will not improve by leaps and bounds overnight. If you have bumps and bruises on your credit history, it will take months or even years to make them go away entirely. Now, the good news: there are steps you can take today that will prevent further damage to your score and make lenders look at your credit applications more favorably.

Become an Authorized User

It’s the old Catch-22 we’ve all experienced: You need credit to get credit. So where does that leave young adults who are trying to build their credit for the first time? Credit prospects can be bleak unless you have a family member who is willing to add you to their credit card accounts as an authorized user. If you can get added, you will reap the benefits of the account holder’s good credit history. (Just be sure that there is a good credit history to be had, because you’ll also face the disadvantages of the account holder’s bad credit history.) This arrangement, called “piggybacking”, has helped many young people establish their credit. Note that FICO’s new credit scoring model still recognizes piggybacking between relatives, but strangers who try it will get little to no reward.

Check Your Credit Report – Seriously

We all know that it’s important to check credit reports when you want to qualify for credit, but you also need to check yours regularly for fraudulent or erroneous charges. The vast majority (79%!) of credit reports contain errors. You don’t want to miss out on a new house or car just because the credit reporting agency made a mistake. Also, by checking your report on a regular basis, you can see which lines of credit have been opened in your name, giving you a chance to stop identity theft early while the damages are still minimal. You can get a free copy of your credit report at www.annualcreditreport.com. The FTC web site contains information about disputing items on your credit report.

Need a Mortgage? Try Rapid Rescoring.

If you do find mistakes, but don’t have time to clear them up before applying for a home loan, you can take advantage of rapid rescoring. This process requires the charges to be errors, and requires you to have proof that this is the case. Bring all the documentation you can to back up your claims, and you can have your credit score recalculated – minus the errors – in just 72 hours. Ask your mortgage broker for more details.

This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for credit cards online.

More... ]]> Credit Card Articles Jeremy http://forum.creditorweb.com/credit-card-articles/4078-3-fast-ways-improve-your-credit-score.html http://forum.creditorweb.com/credit-card-articles/4077-4-more-ways-fix-your-credit-score-fast.html Tue, 03 Nov 2009 17:21:17 GMT Use Automated Payments

Everyone forgets a payment from time to time. Unfortunately, skipping payments and missing payment deadlines can really whittle away your good credit score. To avoid misplacing your bills, use electronic billing whenever possible. To make the most of this service, set up automated bill payments so that you never have to worry about late payments again.

Summarize Your Extenuating Circumstances

If you’ve got negative items on your credit report that resulted from an illness, job loss, or other hardship, you can attach a note (100 words or less) that tells creditors why you missed your payments. This note can mean the difference between acceptance and rejection, especially if your credit history shows that you started paying again when your circumstances improved.

Pay Down Your Debt

If your available credit is nearly maxed out, you need to work fast to reduce your debt. Creditors want to see that you can maintain a healthy debt-to-credit ratio. If you continue to make charges on credit cards that are near their limit, you will only hurt your chances of getting a loan. Instead, make monthly or twice-monthly payments until your debt is reduced. Experts recommend starting with the card that’s closest to being maxed out. Your credit score depends on the ratio of each individual credit card, not all of your cards as a whole, so having even one card close to its limit can significantly lower your score.

Open Different Types of Accounts

There are two basic types of credit: revolving credit, such as credit cards; and installment credit, such as mortgages and car loans. You will help your credit score by having a blend of each on your credit report. If you’ve never had installment credit before, it could be worth your while to take out a small personal loan and repay it in monthly increments. Just be mindful of your credit before you proceed. If you have a heavy debt load, opening new accounts can actually harm your score. But if you need the diversity, the benefit you gain from having a mix of credit types will probably outweigh the bruise that comes with opening a new account.

This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for credit cards online. More... (http://www.creditorweb.com/articles/4-more-ways-to-fix-your-credit-score---fast.html)]]> Last week, we covered some basic strategies to improve your credit score fast: Piggybacking, disputing items on your credit report, and rapid rescoring. Let’s kick off the holiday season with four more ways to get your credit score in tip-top shape, and keep it there.

Use Automated Payments

Everyone forgets a payment from time to time. Unfortunately, skipping payments and missing payment deadlines can really whittle away your good credit score. To avoid misplacing your bills, use electronic billing whenever possible. To make the most of this service, set up automated bill payments so that you never have to worry about late payments again.

Summarize Your Extenuating Circumstances

If you’ve got negative items on your credit report that resulted from an illness, job loss, or other hardship, you can attach a note (100 words or less) that tells creditors why you missed your payments. This note can mean the difference between acceptance and rejection, especially if your credit history shows that you started paying again when your circumstances improved.

Pay Down Your Debt

If your available credit is nearly maxed out, you need to work fast to reduce your debt. Creditors want to see that you can maintain a healthy debt-to-credit ratio. If you continue to make charges on credit cards that are near their limit, you will only hurt your chances of getting a loan. Instead, make monthly or twice-monthly payments until your debt is reduced. Experts recommend starting with the card that’s closest to being maxed out. Your credit score depends on the ratio of each individual credit card, not all of your cards as a whole, so having even one card close to its limit can significantly lower your score.

Open Different Types of Accounts

There are two basic types of credit: revolving credit, such as credit cards; and installment credit, such as mortgages and car loans. You will help your credit score by having a blend of each on your credit report. If you’ve never had installment credit before, it could be worth your while to take out a small personal loan and repay it in monthly increments. Just be mindful of your credit before you proceed. If you have a heavy debt load, opening new accounts can actually harm your score. But if you need the diversity, the benefit you gain from having a mix of credit types will probably outweigh the bruise that comes with opening a new account.

This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for credit cards online.

More... ]]> Credit Card Articles Jeremy http://forum.creditorweb.com/credit-card-articles/4077-4-more-ways-fix-your-credit-score-fast.html http://forum.creditorweb.com/credit-card-articles/4076-four-opt-out-mistakes-avoid.html Tue, 03 Nov 2009 15:12:39 GMT Don’t Use the Card – Even by Accident

If you use the credit card you’re trying to opt out of, your decision will be nullified and your account will remain open at the higher interest rate. Some consumers carry so many cards in their purse or wallet that they might accidentally grab and swipe the card they’re trying to get away from. To avoid this, put away all the credit cards you’re trying to close so that you won’t use them in a weak (or distracted) moment.

Change Automated Billing Info

Do you pay your bills online? Are some or all of the payments automated? If you’ve been making payments with the credit card you want to opt out of, you should make sure to switch your billing to another credit card before you opt out. If the bills continue to go to the credit card in question, you’ll be subject to the higher fees and interest rates. Check all your billing statements for annual and semi-annual charges, too, to make sure they’re not being billed to the credit card.

Beware of Stored Billing Information

If you do your annual holiday shopping online, be sure that your card info hasn’t been stored by your favorite online retailers. If they have the credit card number on file, they could use it as a back-up source of funding if your other credit card doesn’t work for whatever reason. You should be able to find out which card details the stores have on file by visiting your user account settings or by contacting the store’s customer support.

Avoid ID Theft and Credit Card Fraud

It’s always a good idea to take every precaution when your identity and finances are on the line, but it’s even more important if you choose to opt out of a credit card agreement. Imagine finding yourself responsible for rate hikes that stem from someone stealing your card number and using it to make fraudulent charges! Luckily, if you can prove that your card was involved in fraud, you should be able to opt out of the new rates. But such an endeavor takes time and effort, so focus on preventing, rather than fixing, this situation. Cut up or shred the cards you don’t want to use, and click here to read about more ways to protect your personal information.

This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for credit cards online. More... (http://www.creditorweb.com/articles/four-opt-out-mistakes-to-avoid.html)]]> Did you get fed up with the proposed credit card fee hikes and decide to exercise your right to opt out? If you make a mistake when you opt out, you might still be subject to the new, higher rates. Before you give up on your credit cards, make sure you’re opting out the right way. Here are four mistakes to avoid when you tell your credit card company, “Thanks, but no thanks.”

Don’t Use the Card – Even by Accident

If you use the credit card you’re trying to opt out of, your decision will be nullified and your account will remain open at the higher interest rate. Some consumers carry so many cards in their purse or wallet that they might accidentally grab and swipe the card they’re trying to get away from. To avoid this, put away all the credit cards you’re trying to close so that you won’t use them in a weak (or distracted) moment.

Change Automated Billing Info

Do you pay your bills online? Are some or all of the payments automated? If you’ve been making payments with the credit card you want to opt out of, you should make sure to switch your billing to another credit card before you opt out. If the bills continue to go to the credit card in question, you’ll be subject to the higher fees and interest rates. Check all your billing statements for annual and semi-annual charges, too, to make sure they’re not being billed to the credit card.

Beware of Stored Billing Information

If you do your annual holiday shopping online, be sure that your card info hasn’t been stored by your favorite online retailers. If they have the credit card number on file, they could use it as a back-up source of funding if your other credit card doesn’t work for whatever reason. You should be able to find out which card details the stores have on file by visiting your user account settings or by contacting the store’s customer support.

Avoid ID Theft and Credit Card Fraud

It’s always a good idea to take every precaution when your identity and finances are on the line, but it’s even more important if you choose to opt out of a credit card agreement. Imagine finding yourself responsible for rate hikes that stem from someone stealing your card number and using it to make fraudulent charges! Luckily, if you can prove that your card was involved in fraud, you should be able to opt out of the new rates. But such an endeavor takes time and effort, so focus on preventing, rather than fixing, this situation. Cut up or shred the cards you don’t want to use, and click here to read about more ways to protect your personal information.

This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for credit cards online.

More... ]]> Credit Card Articles Jeremy http://forum.creditorweb.com/credit-card-articles/4076-four-opt-out-mistakes-avoid.html http://forum.creditorweb.com/credit-card-articles/4075-how-opt-out-protect-your-credit-score.html Tue, 03 Nov 2009 15:12:39 GMT This concern stems from the fact that the amount of available credit you have is a big factor in your credit-worthiness. If you have a lot of available credit, but only utilize 25% or less, lenders are more likely to see you as a financially responsible individual who is likely to avoid sinking too deeply into debt. They will lend you money because they will perceive you as low-risk.

On the flip-side, if you have a lower credit-to-debt ratio, your credit score will fall and lenders might think of you as too great a risk to lend money or extend credit to. This can interfere with your ability to buy a house, get a car loan, open new credit card accounts, or even get a job or rent an apartment.

But surely losing some of your available credit simply because you choose to opt out of exorbitant interest rates won’t hurt damage your credit score, right? That depends.

For the sake of example, let’s say you have $20,000 in total available credit. If you close a credit line worth $10,000, you will cut your available credit in half, and your debt-to-credit ratio will increase as a result.

Also, some credit models take the age of the account into consideration; if you have a well-established account, it will help your credit score by proving that you can manage your debt over time. If the credit card you want to cancel is an old one with a generous credit limit, you might want to think twice before you give it up.

A better choice might be to pay off the balance as quickly as possible, and leave the account open – just avoid making charges that you can’t pay off at the end of the month. If you don’t carry a balance, the high interest rate won’t apply to you. A high interest rate alone will not hurt your credit score.

You could also shop around for better card deals, replacing the line of credit you’re closing with another one (or more) at a better interest rate. Card rates are generally higher now than they were in 2008, even for consumers with good credit. You’ll have to consider what constitutes a “good deal” these days. 12% - 18% is not uncommon. Good luck!

This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for credit cards online. More... (http://www.creditorweb.com/articles/how-to-opt-out-and-protect-your-credit-score.html)]]> Like many Americans, you may have noticed that your credit card rate is poised to increase – as high as 29.99% in some cases, even if you’ve got a sterling payment history! You can choose to opt out of these changes, but to do so, you must close your credit card account. How will opting out affect your credit score?

This concern stems from the fact that the amount of available credit you have is a big factor in your credit-worthiness. If you have a lot of available credit, but only utilize 25% or less, lenders are more likely to see you as a financially responsible individual who is likely to avoid sinking too deeply into debt. They will lend you money because they will perceive you as low-risk.

On the flip-side, if you have a lower credit-to-debt ratio, your credit score will fall and lenders might think of you as too great a risk to lend money or extend credit to. This can interfere with your ability to buy a house, get a car loan, open new credit card accounts, or even get a job or rent an apartment.

But surely losing some of your available credit simply because you choose to opt out of exorbitant interest rates won’t hurt damage your credit score, right? That depends.

For the sake of example, let’s say you have $20,000 in total available credit. If you close a credit line worth $10,000, you will cut your available credit in half, and your debt-to-credit ratio will increase as a result.

Also, some credit models take the age of the account into consideration; if you have a well-established account, it will help your credit score by proving that you can manage your debt over time. If the credit card you want to cancel is an old one with a generous credit limit, you might want to think twice before you give it up.

A better choice might be to pay off the balance as quickly as possible, and leave the account open – just avoid making charges that you can’t pay off at the end of the month. If you don’t carry a balance, the high interest rate won’t apply to you. A high interest rate alone will not hurt your credit score.

You could also shop around for better card deals, replacing the line of credit you’re closing with another one (or more) at a better interest rate. Card rates are generally higher now than they were in 2008, even for consumers with good credit. You’ll have to consider what constitutes a “good deal” these days. 12% - 18% is not uncommon. Good luck!

This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for credit cards online.

More... ]]> Credit Card Articles Jeremy http://forum.creditorweb.com/credit-card-articles/4075-how-opt-out-protect-your-credit-score.html http://forum.creditorweb.com/credit-card-articles/4074-credit-card-tips-your-college-freshman.html Wed, 28 Oct 2009 17:49:00 GMT
Teach them they are building credit from square one for now and their future. Students need to learn there is a vital difference between good debt, such as investments that increase in monetary value, and bad debt which can quickly ruin their credit rating for years to come. Their line of credit, every purchase they make, and each bill they pay or neglect goes on their growing credit report.

Paying bills on time is critical when building credit from square one; this point can not be stressed enough. Future lenders and even employers can check on this to determine reliability, dependability and accountability.

Stress the importance of using the card for emergencies and essentials, not entertainment and everyday expenses. Show them the importance of comparison shopping for bargains and affordable places to eat. Fortunately, a line of credit for students is normally around $500 and seldom over $1,000. Before your college freshman ever leaves home, help them create a budget that includes a category for credit card purchases. Teach them to deduct from their available funds whatever charges they make so the money is automatically set aside before the payment is even due. Many popular credit cards are now offering budgeting and money management tools so that purchases can be categorized in advance. You can even require your college freshman to enroll in a financial management class if they wish to keep the privilege of possessing a credit card.

Comparison shop with your college bound student for the best credit card deals before they leave the safety of home, because there are countless options available. Without mom and dad to help them decide, a college freshman may accept the first credit card offer that comes their way and on campuses today there are literally credit card kiosks awaiting them, supplying them with an overwhelming number of choices. Discover has a “Student Card” that offers 0% Annual Percentage Rate for six months. This can be quite useful when making purchases of text books, class supplies, and any last minute dorm-room necessities, like a quality espresso machine with an automatic timer.

Learn what penalty fees will be charged and make the student keenly aware of them. There are some credit cards available that do not charge an annual fee and have an introductory interest rate of 0% for six to twelve months. If a student has never possessed a credit card in their name, they may be completely unaware of Annual Percentage Rates, finance charges, late fees, or annual fees charged by some credit cards. These charges and fees, if unattended, can accumulate quickly and damage good credit they’ve established.

Teaching these credit card tips to your college freshman before they leave home is a huge parental responsibility. Utilizing a credit card can be an easy first step for a college student just starting to build their future credit history. For college students, they may already have limited options available for building good credit in their name, separate from their parents’ credit. Acquiring and utilizing a student credit card may be the most important money management skill a college freshman can learn as they enter the realm of adulthood.

This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for credit cards online. More... (http://www.creditorweb.com/articles/credit-card-tips-for-your-college-freshman-.html)]]> Nearly 90% of college students applying for their first credit card are freshmen. Realistically, the average college freshman does not have a checking account and possesses very little money management knowledge. Upon high school graduation, many students face adulthood decision while still thinking like a teenager. The wisest gift of guidance to give for now and the rest of their life is teaching them good money management skills before they acquire their first credit card.




Teach them they are building credit from square one for now and their future. Students need to learn there is a vital difference between good debt, such as investments that increase in monetary value, and bad debt which can quickly ruin their credit rating for years to come. Their line of credit, every purchase they make, and each bill they pay or neglect goes on their growing credit report.



Paying bills on time is critical when building credit from square one; this point can not be stressed enough. Future lenders and even employers can check on this to determine reliability, dependability and accountability.



Stress the importance of using the card for emergencies and essentials, not entertainment and everyday expenses. Show them the importance of comparison shopping for bargains and affordable places to eat. Fortunately, a line of credit for students is normally around $500 and seldom over $1,000.

Before your college freshman ever leaves home, help them create a budget that includes a category for credit card purchases. Teach them to deduct from their available funds whatever charges they make so the money is automatically set aside before the payment is even due. Many popular credit cards are now offering budgeting and money management tools so that purchases can be categorized in advance. You can even require your college freshman to enroll in a financial management class if they wish to keep the privilege of possessing a credit card.



Comparison shop with your college bound student for the best credit card deals before they leave the safety of home, because there are countless options available. Without mom and dad to help them decide, a college freshman may accept the first credit card offer that comes their way and on campuses today there are literally credit card kiosks awaiting them, supplying them with an overwhelming number of choices. Discover has a “Student Card” that offers 0% Annual Percentage Rate for six months. This can be quite useful when making purchases of text books, class supplies, and any last minute dorm-room necessities, like a quality espresso machine with an automatic timer.



Learn what penalty fees will be charged and make the student keenly aware of them. There are some credit cards available that do not charge an annual fee and have an introductory interest rate of 0% for six to twelve months. If a student has never possessed a credit card in their name, they may be completely unaware of Annual Percentage Rates, finance charges, late fees, or annual fees charged by some credit cards. These charges and fees, if unattended, can accumulate quickly and damage good credit they’ve established.



Teaching these credit card tips to your college freshman before they leave home is a huge parental responsibility. Utilizing a credit card can be an easy first step for a college student just starting to build their future credit history. For college students, they may already have limited options available for building good credit in their name, separate from their parents’ credit. Acquiring and utilizing a student credit card may be the most important money management skill a college freshman can learn as they enter the realm of adulthood.

This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for credit cards online.

More... ]]> Credit Card Articles Jeremy http://forum.creditorweb.com/credit-card-articles/4074-credit-card-tips-your-college-freshman.html http://forum.creditorweb.com/credit-card-articles/4073-entrepreneurs-utilizing-business-credit-cards.html Tue, 27 Oct 2009 16:12:36 GMT
When using a business credit card, an entrepreneur is provided with itemized statements and access to online banking to track expenditures, fees, and any additional charges. These reports can be requested on an annual, quarterly, or monthly basis. When preparing an annual financial report, monitoring employee purchases and all company expenses, these itemized statements assist you with a high level of accuracy while reducing human error.

Utilizing a business credit card keeps the business account separate from personal ones. The is especially beneficial to entrepreneurs launching a home-based business. To adhere to professional standards, it’s vital to make no personal transaction with a business credit card. If personal credit is shaky or worse, then an entrepreneur might choose to make all company-related purchases using a business credit card, to quickly build a new company’s credit. To ensure a good credit score, be sure to pay all business credit card bills on time.

Most credit card companies offer a 21-day grace period. An important time to use an opportunity of not having to immediately pay for a purchase is when a new business is having difficulty establishing a consistent cash flow. In the early stages of an entrepreneur’s business development, it’s vital that they not have to interrupt their initial cash flow.

A majority of business credit cards allow their recipients to utilize exclusive user services as well as earn various rewards and discounts to use towards business needs. Points acquired can be used with a business’s favorite office supply store for office furniture, computer hardware and software as well as the basic, everyday office supply needs. The average business is often in need of paper and ink for the printer or fax machine. Other discounts and reward points can be used towards travel with airlines, lodging, and roadside services such as AAA. Some rewards can be applied towards entertainment purposes and these can be used for employee incentives or bonuses.

Another popular employee bonus or sales incentive is offering pre-paid credit cards which can be obtained through your business credit card. Who’s going to choose a frozen turkey rather than a gift credit card for their Christmas bonus? These prepaid cards are also a wise choice for employees designated to make business-related purchases. These cards will remove the risk of overspending on your company card and also eliminates the need for having any employee names on your business credit card account. Using these with designated employees also does away with your valuable time being wasted on authorizing purchase orders as well as eliminating the risk of your business’s credit score dropping due to poor purchasing judgment on an employee’s behalf.

Regardless of the degree of skills you have or level of experience, every business starts their credit at ground zero and has to build it up slowly. By utilizing the advantages of a business credit card, an entrepreneur can speed up the process a little and make it more bearable while in the early stages. Having access to itemized statements with online banking, keeping all business account transaction separate from personal, taking advantage of a grace-period, using accumulating points and rewards towards free or greatly discounted office supplies, business relate travel, roadside and miscellaneous user services are just some of the numerous ways in which entrepreneurs will benefit from utilizing business credit cards.

This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for credit cards online. More... (http://www.creditorweb.com/articles/entrepreneurs-utilizing-business-credit-cards.html)]]> Entrepreneurs utilizing business credit cards quickly learn the numerous valuable benefits acquired. At a business’s onset, establishing a stable cash flow can test anyone’s patience and professionalism. Using a business credit card is wise for some very important reasons; developing the positive foundation of your business’s initial credit history and establishing a professional image and relationships with local lenders and retailers.



When using a business credit card, an entrepreneur is provided with itemized statements and access to online banking to track expenditures, fees, and any additional charges. These reports can be requested on an annual, quarterly, or monthly basis. When preparing an annual financial report, monitoring employee purchases and all company expenses, these itemized statements assist you with a high level of accuracy while reducing human error.



Utilizing a business credit card keeps the business account separate from personal ones. The is especially beneficial to entrepreneurs launching a home-based business. To adhere to professional standards, it’s vital to make no personal transaction with a business credit card. If personal credit is shaky or worse, then an entrepreneur might choose to make all company-related purchases using a business credit card, to quickly build a new company’s credit. To ensure a good credit score, be sure to pay all business credit card bills on time.



Most credit card companies offer a 21-day grace period. An important time to use an opportunity of not having to immediately pay for a purchase is when a new business is having difficulty establishing a consistent cash flow. In the early stages of an entrepreneur’s business development, it’s vital that they not have to interrupt their initial cash flow.



A majority of business credit cards allow their recipients to utilize exclusive user services as well as earn various rewards and discounts to use towards business needs. Points acquired can be used with a business’s favorite office supply store for office furniture, computer hardware and software as well as the basic, everyday office supply needs. The average business is often in need of paper and ink for the printer or fax machine. Other discounts and reward points can be used towards travel with airlines, lodging, and roadside services such as AAA. Some rewards can be applied towards entertainment purposes and these can be used for employee incentives or bonuses.



Another popular employee bonus or sales incentive is offering pre-paid credit cards which can be obtained through your business credit card. Who’s going to choose a frozen turkey rather than a gift credit card for their Christmas bonus? These prepaid cards are also a wise choice for employees designated to make business-related purchases. These cards will remove the risk of overspending on your company card and also eliminates the need for having any employee names on your business credit card account. Using these with designated employees also does away with your valuable time being wasted on authorizing purchase orders as well as eliminating the risk of your business’s credit score dropping due to poor purchasing judgment on an employee’s behalf.



Regardless of the degree of skills you have or level of experience, every business starts their credit at ground zero and has to build it up slowly. By utilizing the advantages of a business credit card, an entrepreneur can speed up the process a little and make it more bearable while in the early stages. Having access to itemized statements with online banking, keeping all business account transaction separate from personal, taking advantage of a grace-period, using accumulating points and rewards towards free or greatly discounted office supplies, business relate travel, roadside and miscellaneous user services are just some of the numerous ways in which entrepreneurs will benefit from utilizing business credit cards.

This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for credit cards online.

More... ]]> Credit Card Articles Jeremy http://forum.creditorweb.com/credit-card-articles/4073-entrepreneurs-utilizing-business-credit-cards.html