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Business Credit Cards - Building Your Businesss Credit
business credit cards are useful for both new and established businesses. credit cards are very convenient for purchasing office supplies or funding company trips. because a good number of business owners are responsible, they also use credit responsibly. there are several advantages of business credit cards. here are three reasons why a business account is beneficial to your business
business credit cards: steady stream of income
all businesses, especially seasonal businesses, have periods of slow sales. furthermore, it may take a new business several months before grossing a sizeable return. during these transitional times, a business credit account will offer a continual flow of cash to cover expenses.
the majority of credit cards have a line of credit. business owners can withdraw funds as needed. the money can be used to purchase equipment, supplies, advertisements, etc. for this reason, a business credit account can be considered a convenient investor.
building a businesses credit history and rating
smart business owners know the value of their company being a separate entity. hence, establishing company credit is extremely useful. instead of constantly applying for company credit cards in your personal name, think about obtaining accounts in your companys name.
it takes time to build a companys credit. for a company to establish a good credit history, business owners must maintain regular payments and establish a good relationship with creditors. moreover, business owners should closely monitor the companys credit account. any negative remarks will reflect on the business owners credit report.
accurate management of business expenses with a business credit card
when using a business credit account, all transactions are easy to trace. if you are self-employed or operating a small business, you must accurate document your income and expenses. this is necessary for tax purposes.
when companies rely on a checkbook or cash for purchases, there is room for errors and missed transactions. thus, some business owners have a hard time calculating expenses at the end of the year. however, when a business credit card is used for major and small purchases, a business owner can easily track company expenses. simply maintain copies of monthly credit card statements or request quarterly summaries from your credit card company.
view our recommended sources for business credit cards online.
carrie reeder provides information about bad credit loans on her abc loan guide website.
article source: http://ezinearticles.com/?expert=carrie_reeder
Home Buying Terminology -- What is FICO?
when applying for a mortgage loan, youll likely encounter the term fico at some point. and even if you dont hear the phrase mentioned, fico is there in the background, affecting your chances of loan approval and influencing your interest rate.
so what is fico, and how does it affect your chances of qualifying for a mortgage loan?
fico is a computerized credit-scoring model named after the fair isaac corporation, the company that developed it decades ago.
how fico affects you
the big three credit-reporting bureaus ? experian, equifax and trans union ? use the fico scoring model to convert your credit history into a credit score. mortgage lenders in turn use that score to decide whether or not you qualify for a mortgage loan, and to determine what interest rate youll pay.
of course, there are other factors that influence these decisions, but fico plays a leading role. in other words, your fico score helps mortgage lenders determine your credit worthiness, how likely you are to pay off your debt, and what risk category you fall into.
the higher your fico score the better, as evidenced by the scoring brackets below:
650 ? 850: the go ahead category. low risk to lender. applicant has good chance of qualifying for a mortgage loan.
620 ? 650: the possible category. moderate risk to lender. the lender will likely request more information from the applicant to base their qualifying decision on.
620 or below: the risky category. highest risk to lender. applicant will probably have trouble obtaining a mortgage loan.
fico factors
your fico score is based on your credit report (which is your credit history on paper). your credit report includes such things as:
how to keep a high fico score
there arent any quick fixes when it comes to raising your fico score. improving your credit is a gradual, cumulative process. paying off credit cards will help, but its best to take a more preventative approach:
pay your bills on time. dont apply for credit too often. minimize your debt (to improve your debt-to-earnings ratio). in other words, keep a clean financial record.
conclusion
think of fico as a little man watching how you handle your finances ? peering over his librarian-style glasses and scribbling notes onto a clipboard. give him good things to write about, and youll have less to worry about when you apply for a mortgage loan.
* copyright 2006, brandon cornett. you may republish this article in its entirety, provided you leave the byline, authors note and website hyperlink intact.
about the author
brandon cornett is the editor of homebuyinginstitute.com, one of the internets largest and most respected libraries of home buying information -- more than 100 expert articles in 12 different home buying categories! put this knowledge to use by visiting http://www.freeroller.net/messageboard/mbs.cgi/mb10255
article source: http://ezinearticles.com/?expert=brandon_cornett
Where To Find The Best Credit Card Rates
credit card rates are the biggest factor in credit card debt. high rates make it harder to pay down the debt. searching for the best credit card rates can be confusing and frustrating. there are so many terms and catches that it can be very hard to figure out exactly what the rates are. figuring out the and finding the best credit card rates is very important to keeping debt in control and not ending up in financial trouble.
the way to find the best credit card rates is to shop around. comparing credit cards is the only way to figure out what rates will benefit you the most. the reason is that there are a few different things to look at, interest rates, fees and other charges. some cards offer great interest rates, but the other fees and charges may more than make up for it. there are also cards that offer a low interest rate but it is only for a short period of time. some cards have set apr?s while other are variable. there are also annual fees and fees on transfers or cash advances. think about how you plan to use the card and how you will pay off your charges. use your spending habits to help you figure out which card will work best for your needs. it is very important to read all the fine print and gather as much information as you can on each card before making a commitment.
there are some things you can do that can help you understand the rates and fees better. one step to take is calling the customer service number and asking questions. the representative should be able to explain everything or direct you to someone who can. they may even be able to negotiate fees if you are looking at another card with lower charges. credit card companies are used to working for your business. you can also use programs online that compare cards and put the details together so you can see the similarities and differences in writing. you should thoroughly investigate any credit card offer for hidden charges that could cost you more in the long run.
finding the best rate on a credit card will take time. the effort it worth it, though, when you consider the money you will save. it is important to look at a few different cards and see which one will benefit you the most. consider everything from the way you will use the card to how much interest would accumulate in a year?s time if you reached the maximum credit limit. credit cards are an easy way to ruin your credit and fall into debt, but with reasonable rates you should have an easier time avoiding that trap.
morgan hamilton offers expert advice and great tips regarding all aspects concerning credit cards. get the information you are seeking now by visitingbest credit card rates.
article source: http://ezinearticles.com/?expert=morgan_hamilton
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