Guide to Using Credit Cards

Use business credit cards to make your business more profitable

By Rose Bricker, Freelance Writer

Action Steps
The best contacts and resources to help you get it done

Locate credit cards that offer zero percent finance charges

Many online credit cards offer zero percent interest for three to 15 months. Make sure you take into consideration not only the length of time for the introductory offer, but also the amount of the finance charge when the offer expires.

I recommend: Your Credit Network has a list of credit card providers that have zero percent introductory offers and any other features the credit card provider offers. Use Financial Web to compare credit card companies and what they offer. Many of them offer zero percent introductory rates.

Check out other credit card offers that will help your business

If you travel a lot, you may want to look into getting a business credit card that you can use for gas or travel rewards. Another popular credit card is one that gives you cash back on every purchase you make. You can apply the cash you earn to your credit card purchases or have the money sent to you directly.

I recommend: RewardsCards.com offers business credit cards from Citi, Discover, Chase and others that offer many different incentives, rewards and benefits. Go to RewardPrograms.org to find the top credit card providers and the offers they give.

Find online credit cards that offer instant approval

Rather than having to wait for approval by mailing your application to the credit card company, find a credit card service provider that will instantly approve your application online. This saves you the cost of a stamp, as well as, the time filling in an application by hand.

I recommend: Use CardRatings.com to find credit cards you can apply for online. You can only apply online for some of these credit cards, and those you yust use the online button to apply. Index Credit Cards gives you a list of the most popular credit cards that you can apply for online. In addition, it lists business credit cards by categories and issuers.

Helpful advice for making the most of this Guide

• •  Always consider the balance transfer fee when using a small business credit card. Even if the credit card has a zero percent intro offer for balance transfers, there's usually a fee involved. Make sure you consider this before transferring any balances from other cards.
• •  Check out credit card online applications to be sure you can apply online. Some corporate or business credit cards need you to apply in person.

Guide to Maximize Savings w/ Low Interest Credit Cards

Using low interest credit cards could save you thousands of dollars!

By Jeremy Panizzoli, President, Big Z Networks, Inc.

OLD CREDIT CARD:
$10,000 x 13.99% = $ 1399.00 in interest each year

NEW CREDIT CARD:
$10,000 x 9.99% = $ 999.00 in interest each year

Action Steps
The best contacts and resources to help you get it done

Compare credit card offers...

To find the lowest rate possible, compare credit card offers from a wide variety of credit card issuers. The best way to do this is to compare credit cards online. You can visit each issuer individually, or you can use one of the many credit card comparison sites available to assist you.

I recommend: Although you can visit credit card issuers such as Visa, Mastercard, AMEX and Discover directly, it will be much easier to find the best credit card offers by visiting a comparison resource like ASAP Credit Card.com. With easy-to-follow rate comparison charts detailing credit cards from a variety of issuers, you'll save time and avoid frustration.

Avoid fees and other charges...

Although you're looking for the lowest interest rate possible, avoid credit cards with annual fees and extra charges. Paying fees could negate any benefit you've gained by having a low interest rate. Watch out for balance transfer, cash advance, over-the-limit, late payment and foreign transaction fees. Knowing how you'll use your credit card will help you determine which fees are factors-- and which one's are not.

I recommend: These days, most business credit cards DO NOT include annual fees. But credit card companies will hit you with a host of other charges. Use credit card comparison sites to find offers with the lowest fees and review the credit card terms carefully before you apply.

Take advantage of 0% APR's...

Once you locate a credit card with a low APR and the least amount of fees, consider introductory promotions. In particular, 0% intro APR deals are especially popular. You can pay zero interest on new purchases and / or balance transfers for 6 to 12 months. Your savings will increase substantially if you can take advantage of one of these offers.

I recommend: Credit card issuers love to entice new customers with 0% APR credit cards. This is especially true with business credit cards. Take advantage and maximize your savings by applying for an offer with a 0% introductory APR.

Helpful advice for making the most of this Guide

• •  Know your credit score: Since most business credit cards require good to excellent credit, make sure you know your credit score before you apply. Although some consumer credit cards are designed for people with poor / no credit, you'll need an established credit history to get a credit card for your business.
• •  Search multiple sites: There are numerous credit card comparison resources available to assist you. Although I prefer ASAPCreditCard.com, there are many other great choices such as CreditCards.com, CardRatings.com and WOWCreditCards.com.
• •  Payoff your balance each month: Avoid interest charges altogether and payoff new charges before the grace period ends. This way, you won't have to worry about your interest rate or any huge interest charges.
• •  Exploit special offers: Take advantage of offers with 0% APR's or other promotional gimmicks such as 'Free Tickets' or 'Bonus Points'. Many credit card issuers will offer incentives so you sign up or use their credit card.

Guide to Credit Cards Basics

Compare the APR, introductory rate and rewards programs of small business credit cards

By Heather Topham Wood, Freelance Writer

Action Steps
The best contacts and resources to help you get it done

Learn the basics of a business credit card

If you have never selected a credit card for your business, you'll want to look through information to determine how to best make your choice. You can find several sites that can give you insight into making your selection and how a card's finance charges are calculated.

I recommend: The Federal Reserve Board has a comprehensive page that gives the business owner the chance to learn more about credit cards and how to make comparisons between different credit card companies. Bankrate.com has a free e-book available online that can help business owners better understand credit cards and their fiscal obligations when using a card.

Compare and apply for online credit cards

Since the credit card market can be competitive, you'll want to use comparison tools to make your credit card provider selection. Comparison sites will post the introductory APR, promotional period, annual fee, setup fee and fixed or variable APR after the promotional period ends.

I recommend: On Creditor Web, you can find over a dozen credit card offers from different issuers. The site also rates the cards based on the offer presented. If you find a credit card that you like, you can apply directly on the site. You can make side by side comparisons of credit card offers of CreditCards.com.

Use a business credit card to make purchases

Once you receive approval for your credit card, you'll want to learn credit management techniques to help improve cash flow within your business. A small business owner can use the credit card to finance purchases until payment arrives for goods or services.

I recommend: For tips on how to make the most of your new business credit card, find tips on the Small Business Trends website. On the Consultant Journal, you can view a list of ideas on how to avoid common small business credit card mistakes.

Helpful advice for making the most of this Guide

• •  You may want to get a copy of your credit report prior to applying for a business credit card. Credit reporting agencies allow you to access your report once a year for free.

Action Steps
The best contacts and resources to help you get it done

Annual percentage rate

Annual percentage rate, or APR, is the yearly cost of using the credit card. The percentage figure can be fixed or it can fluctuate according to market conditions. The APR applies to your account as long as a balance exists. It can be avoided if the balance is paid in full every month.

I recommend: Investopedia explains how companies calculate the annual percentage rate on a credit card balance. Get an overview of how the annual percentage rate works at Debt Consolidation Care.

Balance transfer

A balance transfer moves debt from one credit card to another. Transaction fees may apply depending on the bank. Balance transfers help consumers and business owners save money if the newer card features a zero or lower interest rate and better terms.

I recommend: CreditCardGuide compares credit cards that offer balance transfers. The site also gives tips for making the most out of credit card balance transfers. General articles on finding good balance transfer rates can be found at Bankrate.

Minimum monthly payment

Minimum monthly payment refers to a set amount of money you're required to pay on your credit card every month to avoid penalties. In general, the payment is usually 2% to 4% of the balance.

I recommend: Find news about credit card issues, such as minimum monthly payments, at CreditCards.com.

Grace period

Grace period refers to the time period that you have to pay off your balance without penalty. This usually lasts between 20 and 25 days, starting from the date of your billing statement to the payment due date. The grace period applies only to purchases; cash advances begin accruing finance charges immediately.

I recommend: Credit.com provides basic information about the grace period. Creditnet also has information on understanding the grace period.

Finance charge

Banks apply a finance charge, or a fee, for using their credit cards. This happens whenever there is an outstanding balance each month. There may be different finance charges for purchases and cash advances.

I recommend: Financial Web gives an overview of how finance charges are added to unpaid credit-card balances.

Average daily balance

Average daily balance is the formula used to calculate a credit card minimum payment. Banks calculate the payment by adding the everyday balance in a billing cycle, then dividing that figure by the total number of days in that cycle.

I recommend: Creditorweb uses examples to demonstrate how to calculate the average daily balance.