Financial Freedom Tips

Posts Tagged ‘Card’

To achieve financial independence, experts encourage even currently employed individuals to consider entrepreneurship. Setting up your own business, no matter how small, is touted as one of the best ways toward building the foundation for wealth. Those who are concerned about having a safety net need not take the plunge recklessly. One can start setting up a small business even while employed.  

Of crucial use to small businesses are credit card services and small business loans. The entrepreneur needs to know how to avail of these tools and how to effectively wield them for maximum business growth.

Credit Card Services

A small business would do well to get reputable credit card services in order to prosper in the current business climate. Availing of credit card services will enable it to accept both credit card and debit card payments. This is true either for brick-and-mortar businesses or internet based online businesses. After all, most consumers nowadays routinely use credit cards or debit cards for payment purposes. It only makes good business sense to be well-equipped for the needs of credit card users and debit card users as well as for the needs of customers who pay in cash.

Merchant services provide credit card services covering a wide range of solutions for the processing of credit cards and debit cards as payment options. These credit card services include traditional terminal equipment at point of sale, where credit cards or debit cards are swiped. It also includes software and high speed IP solutions for both traditional commerce and e-commerce. Credit card and debit card payments can, therefore, be accepted in person or through the internet, by phone or by fax.      

Small Business Loans

Any business – whether a small start-up business, a medium-scaled one or a big business company – will be needing an infusion of additional capital sooner or later. Additional capital is always needed for expansion, additional inventory, additional manpower, new systems, new equipment or a new physical layout.

Capital is not always easy to come by, though. The original investors’ personal coffers may have been emptied by the earlier outlays. Prospective investors may not be keen on shelling out funds in times of crisis. Businesses, therefore, have no choice but to seek business loans.

Getting business loans is a difficult process. Even small business loans are not readily approved. Be prepared to present a lot of documentation and paperwork. For small business loans, the proprietor’s personal credit history is taken into account and related references need to be submitted. Of course, the company’s financial statements are just as important in proving the feasibility of the business and its capacity to repay its business loans. Having a detailed business plan will show your business strategies and projections, demonstrating your business acumen.

Unfortunately, even with all the requirements completed, applications for business loans – including small business loans – are, more often than not, disapproved.

Solutions

Some merchant services provide a comprehensive solution for the needs of small businesses in relation to credit card services and small business loans. The set up is elegantly simple. A small business need only avail of the company’s credit card services to be eligible for merchant cash advances. These cash advances are actually small business loans, except that there is no need to go through the complicated application process for business loans. Repayment is made very easy and worry-free, too. A certain small percentage is built into the credit card processing rates to take care of the advances. This way, repayment is actually done automatically in a very affordable manner and according to income flow.

Small business owners would, indeed, be wise to look into these timely business solutions.

Travel is one of the most popular ways to spend your down time. With travel agencies online and easier methods of booking flights and hotel rooms, travel is the choice for weekends and vacations of all sorts. And airline credit cards make travel available to all, whether you have a travel budget or not. Here are some tips to getting the most out of your airline credit card.

What Is an Airline Credit Card?

When you apply for a credit card online or at your banking institution, you have the option in many cases of applying for an airline card. These cards work just like rewards cards do in that they offer you something back for every dollar you spend. Most airline cards offer you one mile in the sky for each dollar you spend.

This means that if you spend five hundred dollars on your credit card each month, you could earn five hundred airline miles with that particular airline. This could come in handy when traveling with your family or on business. Some airline credit cards offer different ratios of rewards so be sure that you read the fine print to find out how much you have to spend to get the miles you need.

Restrictions

Many airline credit cards come with restrictions on how you can use your miles. For example, you may need to acquire a certain number of miles before you can redeem them for an actual plane ticket. Other airline cards make you use your miles only on certain days or during certain times of the year. It is vital that you check out the contract for your credit card to be sure what these restrictions are. Another airline card might actually offer you more miles for shopping with specific merchants that the financial institution partners with for this purpose. Check the rewards program details for information on promotions of this kind.

Tricks to Getting the Most Miles

Many airline cards will give you bonus miles for using the card at specific merchants, so the easiest way to earn more miles quicker is to do your shopping with these select merchants. Another way to earn more miles is by using your airline card for your everyday shopping, such as grocery shopping, pharmacy needs, or even online bill paying. Be sure that the financial institution that issued your card rewards miles for the ways you want to use your card.

Check Out the Airline

Overall, airline credit cards are a wonderful way to earn a free vacation for you or for your family. However, in these unstable times, be sure that you check out the financial stability of the company you want to earn miles with. Remember that if you earn miles with a company that goes bankrupt, you may be able to transfer your miles and you may not. If you are able to transfer them, it could take months for the transfer to go through. So check out your airline as well as your airline card.

As Christmas approaches, many of us in the UK will be considering taking out a new credit card to purchases those all essential gifts. With a plethora of card offers out there, deciding which card,if any, is best for you can seem a little daunting

What follows are some useful tips and advice that hopefully will help make your decision a little easier and clearer.

Loyalty/Bonus Cards

As people’s circumstances vary so do the credit card deals on offer. If you intend to clear your bill each month, the interest rate on your card becomes irrelevant as you won’t have to pay it. Therefore you should consider going for a card that offers some form of loyalty bonus such as redeemable points, cashback or air miles.

Interest-Free Offers

These cards are particularly useful for those don’t clear their balance each month. Shop around for cards that offer 0% interest on balance transfers and purchases. The length of these offers tend to vary, so choose one that is appropriate to you needs i. e whether you intend to use the card mainly for purchases or a balance transfer.

Some cards allow you up to 59 days to pay for purchases before being charged interest on them, thus giving you some breathing space to pay for your goods or/and services.

Special Offers

One way to save money on your card debt is to take advantage of the many debt-transfer offers available from most banks. These offers are usually exclusive to new customers and allow you to pay off your debt from a more expensive card at a lower rate for a limited period.

Cash

Although you can withdraw cash from ATM’s with your credit card, it is best left as a last resort as, although convenient, you will pay for the privillage through a steep interest rate.

Plus Points

Using the plastic to pay for expensive items such as jewellery, electrical goods or goods bought online, gives you the piece of mind of consumer protection i. e under the Consumer Credit Act, the card company are liable ( as is the seller of said goods or services) if there is a breach of contract.

This is especially handy if the goods either arrive faulty/damaged or don’t arrive at all due to the supplier, for example, going bust. If any of these scenarios were to arise, you should have the money spent redeemed to your credit card.

Charges

Most cards will levvy a charge against you if you fail to pay your monthly repayment on time, with penalties usually around £20. You will also incurr a charge if you go over your set credit limit. Setting up a direct debit to make your monthly payment will eliminate the possibility of being late with your monthly payment and thus avoid that nasty charge.

What Card Then?

Deciding what credit card to apply for really depends on your personal circumstances and requirements.

If, for example, you intend to do some serious short-term shopping, a card that offers, say six month interest free on purchases, would be more suitable.

If you know in advance you wil be unable to clear the balance in the short term, then a card that offers a low rate for the lifetime of the balance, would be suitable as you will save a graet deal in interest paymnets compared with a card that resorts to a higher rate after any offers expire.

If you are able to clear your balance each month, then going for a card that offers rewards, such as cashback on purchases, would be most prudent.

Wouldn’t it be great if you could get an extra cash rebate on every purchase you made? Well, that is completely possible with cash back credit cards. This type of credit card gives you a certain percentage back on many of your purchases. You can receive the money from your credit card either monthly or yearly according to the credit card company.

You may be wondering what type of items count for your cash back credit card rebates. Most of the time such things like balance transfers and cash advances do not count and you will not receive any type of credit card rebates. You will have to check with each credit card company to learn which cash back credit card applies to purchases that you normally buy.

How much can you get from a cash back credit card is another issue. You can search and determine which ones yield the best percentage, however, make sure they are stores that you personally shop at or are items that you normally purchase.

You may even enjoy more cash back with different cash back credit card policies if you shop at certain stores such as Wal-Mart or Sears. This can give you more money in the way of cash back.

Redeeming points from your cash back credit card is easy. Normally, you do not have to do anything. It is according to how often the credit card disburses the cash back. Some credit card companies are now offering the cardholder to redeem points on their cash back credit card rewards to be applied to their balance. You can even use your cash back for charitable contributions.

There are fees with any credit card receiving cash back is just a reward so to speak. A cash back credit card can have other fees such as balance transfer fees, annual fees, high interest, high APR, or other charges that may make the cash back credit card less desirable.

Be sure to read the terms and conditions when applying for a cash back credit card. Be sure to find out if you can shop at your favorite stores with the card. Also, find out all you can regarding the applicable fees for the card for cash advances, balance transfers etc. , as these extra charges may make this card an expensive proposition. However, if you do choose a cash back credit card, it can be incredibly useful if you shop at those stores and receive money for purchases you normally buy all the time. Just an added bonus for using products you love while shopping at your favorite stores.

It used to be that parents didn’t find themselves considering credit cards for their children until those children went off to college, but nowadays a high school student credit card might be more appropriate. If you have a high school student at home and you’ve been wondering if a credit card might be a good tool for them, there are three things you need to keep in mind.

1. It’s a “Minor” Issue

If your child waits till college to get a credit card, chances are it’s going to be in his or her name only — meaning your credit is off the hook should they mismanage the card or abuse their credit. If, however, your child is a minor (as most high school students are) then your child is going to need to be using one of your credit cards as a secondary user. This means your credit is on the line, not theirs.

Minors can’t get their own cards, so you’ll be towing the line if your child is under 18 with a credit card in their pocket. If your child isn’t responsible enough to manage the card wisely, you’ll end up paying for their mistakes, and those mistakes can cost big time.

2. It’s All About Boundaries

If you do decide to let your child have a high school student credit card, you need to set up boundaries the moment that card is issued. What can the card be used for? How much is your child allowed to spend? Should he or she contact you for permission prior to using the card?

By setting up clear boundaries you can avoid future headaches (and unpleasant statement surprises). If you simply say “this card is only for emergencies” your child might not understand. For all you know, that cute coat in the mall could be an emergency to a high schools student. Explain exactly what constitutes an emergency and set up firm rules, making sure your child understands what the consequences will be if those rules are broken.

3. Go Over the Statements Together

A high school student credit card can be a great way to teach your child financial responsibility, but for that to happen your child has to be involved in paying the bill. When the credit card statements come in each month, go over them with your child. If there are frivolous charges, discuss them and talk about responsible credit card spending.

Let your child watch you write the check to the credit card company and make sure they pay you for their share of the bill. This will teach them that plastic needs to be used just as responsibly as cash.

While a credit card isn’t right for every high school student, there are definitely some who can benefit from them. If yours is one of them, by all means get them started on the road to a healthy credit future and let them learn from the use of a high school student credit card.

With gas prices skyrocketing, millions of people are flocking to gas cards to help with the rising fuel cost. Gas cards are brand specific credit cards that offer consumers rebates and rewards for using their credit card.  Like most credit cards that offer a reward programs, there are specific guidelines that consumers’ need to be aware of.  In many cases, a traditional credit card is better suited for the task.

For starters, gas reward cards are designed for people with good credit that pay off their balances on a monthly basis. If you have the tendency to carry over balances from month to month you will be better served using a regular credit card. Reward credit cards in general, have higher interest rates and shorter grace periods. Therefore, when you carry a balance, you will be paying more in interest even after you consider the rewards.

Sixty percent of all gas credit card holders carry a balance from month to month; this is how the credit card issuers pay the reward benefits. When considering gas credit cards, consumers need to take a careful look at the benefits that are offered. Most gas cards offer better benefits as an introductory incentive to attract new card holders. You should look past these initial offers when comparing cards and pick a reward program based on the benefits that occur after this initial period is over.

The most important thing to look for when considering a gas credit card is your driving habits. Will your gas card be used primarily locally, or will it be used for travel? Make sure there are close and convenient stations to use if your card is brand specific. Having to travel an extra three to five miles out of your way to use your gas card can eat in to any benefits that you receive from using the card. Many gas cards offer additional discounts on specific merchandise in specific retail stores; again, what is the proximity of these stores to the station?

Gas credit cards are issued by banks like such as, Chase, Discover or Citibank or by a gas company like Shell, Mobile or Chevron. The most important distinction is that the brand specific gas cards require that you buy their gas to take advantage of any benefits they offer. Ironically, it’s usually the banks, rather than the gas companies, that underwrite and bank-roll the credit cards anyway.  The difference is that the gas company credit cards are usually easier to qualify for than the bank issued cards are. The caveat is; interest rates and/or rewards are directly related to your credit.  Marginal credit results in marginal interest and rewards.

When comparing benefits, many bank issued credit cards tend to mirror each other. Some of the more common benefits include cash-back rebates that range from 2% – 5%, cash rebates on purchases, 0% introductory rates and no annual fees. On the other hand, the benefits offered by the gas credit card will include things such as air miles rebates, hotel and travel discounts, car repair rebates and rebates on groceries at participating stores. When making a choice on what card to use, choose the benefit that best matches your lifestyle.

A card that we recommend at Direct Banc is the Discover® Open Road(SM) Card. This card offers cardholders a 5% in cash rebate on gas and car maintenance purchases up to 1% for general purchases, and . 25% for purchases made at select warehouse clubs and discount stores. Of course, you could consider other cards like the BP Gas Credit Card Visa® Rewards and the Capital One® No Hassle Miles(SM) Rewards for travel and gas. Each of these cards offer a unique reward benefits package that compliment varied lifestyles. Taking time to read the fine print and picking the right benefit is the key to getting a gas credit card that is truly a benefit for you.