The various business credit cards there is today have come into vogue in order to cater to the needs of small business owners. There are a lot of credit cards and credit cards to suit all occasions as well. Why are small businesses, on average, paying off their credit card debt rather quickly?
With most financial companies charging a fee for the offer that they give to their clients. These fees are charged if you use your credit card frequently and beyond two months of no use to your card. They are charged for the credit card either giving an annual fee or converting into an introductory low rate program. There is also an annual fee that comes along with the credit cards too. The fees are usually tied to both the amount that is outstanding as well as the interest charges that will be charged.
The way that the small business credit cards function is that there is an annual fee. There is a fee per transaction as well whether on the balance that you make or on whether you continue your use of your card. Most business credit cards do not charge a fee initially as it will fluctuate after the annual fee has been paid. This may change in future as the business uses its own credit card company to pay off the balance.
Some small business credit cards offer higher interest rates or even double the offers that they offer, if you are able to pay off your balance in full each month. These low rate credit cards, however, do not give you a long term interest free period as you pay off the balance in full periodically. So what happens is that the majority of the time, one of the ongoing costs that you would incur on your business credit card is interest charges automatically.
One effect of credit card offers that is happening is that you often start to get the illusion that you are paying off your debt much faster than you actually are.
Credit Card Terminology In Part I
There is a rather narrow section of the American press that regards credit card rates as the holy grail of people who have poor credit. However, there may not be that narrow slice of the country that utters these dreaded sentence: ‘Bad credit’.
It is to be regretted but that it is getting to be extremely rare these days. But then again, we still don’t get the chance of getting to the ‘bad credit’ that your parents inflicted upon you upon release you from debt just a few months’ ago. The list is long that would stretch to include the leaders of the financial services industry in America in the form of Karl Malone, Andrew Marr, Paul Allen, and many more. But just one of these ‘poor credit’ name could carry such weight among the masses in our society according the latest scouting reports.
‘Bad credit’ is the title that every privileged privileged insider in the corporate world would tell you. Don’t you think ‘perhaps you also know someone in poor condition – or ‘maybe I don’t know anything about – poor credit?
Just as credit has an adverse effect on a person with a limited loan or credit history who is less qualified to obtain such a loan or credit history, so too banking on poor credit also carries a certain high and potentially significant mark against a person and the world – if you have less than perfect credit. What a poor credit is and has usually been considered a ‘bad credit’ is often abbreviated to CR (see above), isn’t to be confused with a ‘credit report’ and a ‘Credit History’ – which is a history of a consumer with his/her credit as specified in a written document. Under the Capital One Credit Report Services Act (commonly known as the CR Act ), a ‘poor credit’ can be viewed as two drastically different – negatives – one being a bad credit and a good credit report and the other a ‘good credit’ credit report.
The CR Act was created to protect American workers who wanted new cars, new and used, and wanted to use them properly – without the need for a credit history or any personal documentation of how the car was maintained or sold. The new law makes it harder for those who want bad or incomplete credit, but requires the Credit Reporting Agency to release a person’s credit report every six years. Those seeking credit should be aware of not only the Fair Credit Reporting Act, but also other laws that govern things like employment, insurance coverage and credit limits.
So while the word ‘poor’ isn’t meant strictly to mean ‘poor’by way of credit, it’s definitely not meant to mean ‘great credit.