Cash vs. Credit Cards

Thirty years ago very few people in the United States had credit cards. Today there are more than 650 million credit cards issued. As a kid in the seventies and eighties I do not remember seeing credit cards being accepted at the movie theatre. For the most part, everyone paid everything with cash. Things have changed drastically from where they were twenty or thirty years ago. Today there are credit cards everywhere from the movie theaters to the back of a taxi. It is now hard to imagine even going to the grocery store and not being able to pay with your credit card. Credit cards have completely changed the way we pay for things. It is even harder to get along without a credit card if you want to make purchases online. Have credit cards changed society for the better or for the worse? In this post I want to compare the pros and cons of life, as it once was when people paid with cash versus our modern cash less society.

In the days of black and white television everyone paid for things mostly with cash or checks. People went to the department stores to make purchases and always paid with a cash or check. Cash of course would always be the preferred method. A cash based society operates on less debt. People did not use credit cards to finance purchases. People used layaway for purchases that they could not afford. Cash was kept in the bank or in the “cookie jar”. If you did not have cash, you would pay with a check. Finances were much simpler. You spent what you had and paid with cash.

In 1970 only about 51% of American families had a credit card. Today you can’t throw a rock without hitting someone with a credit card. In the old days, everyone had to send his or her bills out in the mail or stand in line to pay. You can now pay most bills either over the phone or online if you have a credit card. This is a major improvement over writing checks and sending out a stamped envelope. The biggest advantage to having a credit card is the ability to have access to emergency loans when needed. Also, credit card companies offer rewards for spending money on their cards. That would be impossible to do with cash. Rewards earners can cash in their points for cash back, products and the most popular is airline points. 20,000 reward points can go along way. Credit cards also offer insurance on purchases that you make online or at the department store. The other advantage to having a credit card is how easy it is to replace if it gets lost. If you loose your wallet with a wad of cash chances is slime that you will see it again. If you loose your credit card all you have to do is call the issuer and cancel it. You are protected even if someone makes unauthorized charges on your card.

In all, I think that life is better now with the widespread use of credit cards. Credit cards make things easier to pay for. You can now log onto the computer or use your telephone to pay a bill with your credit card. Also, credit cards offer protection for consumers. Cash purchases do not get the same benefits that you can get when purchases are made on a credit card. There are no rewards points earned on cash purchases nor is their any consumer protection. Credit cards have given our society the flexibility that a cash only society can not provide. Money can be obtained for emergencies when needed. You can also go online and see a real time transaction report of your spending. In order to track cash expenditures, you need to save receipt, or write down what you spend on paper or pad. Credit cards have definitely made our lives easier and given us spending flexibility as well.

Labels: business credit cards, credit card, credit cards, small business credit card

Capital One Business Platinum Preferred Credit Card

Capital One was founded by Richard Fairbank and Nigel Morris in 1988. Capital One Financial Corp’s primary focus is on credit cards, home loans, auto loans, banking, and savings products. Capital One was one of the first credit card mass marketers starting in the early 1990s. The Capital One Platinum Preferred business credit card is an excellent choice for any consumer.

Capital One is one of the strongest credit card companies on the market today. This credit card has many features that customers can take advantage of. The most enticing feature that the Capital One Platinum Preferred business credit card has to offer is its introductory rate. New cardholders will be happy to take advantage of 0% APR on purchases and balance transfers until 2010. That gives new customers one year without having to pay interest. This credit card is an excellent choice when transferring a balance from one card to another. Transfer your balance from another credit card If you are paying a high interest rate. Someone with a $10,000 balance being charged 18% will save $1800 by transferring their balance to the Capital One Business Platinum Preferred credit card. If you are planning on making a large purchase you will have the opportunity to pay it off in a year.

This credit card also offers an excellent rewards program. You can choose from multiple rewards programs such as gasoline stations, building supplies and hardware, computers and electronics, office supplies and furniture, advertising and shipping. They will even offer you triple rewards on the category of your choice. All other categories earn one point per dollar spent. Business owners can save money using these rewards categories. If you’re company ships products on a daily basis, you can earn triple rewards for using your Capital One Platinum Proffered credit card with most major parcel carriers such as UPS or FedEx. You can also use your Capital One credit card for travel miles as well. There are no limits on the miles you can earn, no expiration either. You get to keep your miles for the life of your account. Furthermore, you get to fly with any airline that you choose with no blackout dates or seat restrictions either.

There is no annual fee either to be a Capital One Platinum Preferred business credit card holder either. There is small $39 over the limit fee should you over charge on your credit card. Furthermore, there is also a late fee charge. This fee is based on your outstanding balance. If you owe less then $100 your late fee will be $15. If you owe between $100 and $249.99 your late fee will be $29. For a balance of $250 or more, you will have to pay a $39 late fee as well. Capital One also offers an excellent cash advance rate. Pay 3% interest on all cash advances using your Capital One Platinum Preferred business credit card. Therefore, should you withdraw $1000 cash for an emergency, you will only have to pay a $30 fee. Other card issuers charge much more on cash advance loans.

The Capital One Platinum Preferred business credit card is meant for those established business owners with excellent credit. Capital One is offering up to $20,000 credit lines for those that qualify. After the introductory period, the APR for balance transfers and purchases will be as low as 14.99%. Interest rates are determined by the applicants credit history and will vary accordingly. In all the Capital One Preferred business credit card is an excellent choice for those looking for a good business rewards credit card. Card users can save money by choosing from the many categories offered by Capital One.

Labels: business credit cards, business rewards credit card, Capital One Business Platinum Preferred Credit Card, credit card, credit cards

How to avoid major pitfalls with your business credit card

All type of business credit cards are widely accepted worldwide. It is easier to borrow money using a credit card than it is to go borrow from a bank. Cardholders all of a sudden are given large amounts of credit that not every individual can handle. The number one rule to follow is: don’t mix business purchases with personal purchases. Also, be sure to pay your bill on time every month. According to American Express Gold, they collect $2.9 billion dollars a year in late fines. Late fines cost money and they can increase your interest rates as well.

A very important, and often overlooked rule is to “know your own money limits”. Try to purchase things cash instead of using your credit card. If you do use your credit card, be sure to pay it off at the end of the month. Don’t get caught up in huge debt that you know you will not be able to afford. Do not risk your credit and get caught up a viscous “interest paying “ cycle.

Also never forget to be careful with introductory offers. Many card companies offer interest free periods just to bait you. Once that period is over, rates can exceed 17%. Cash advances are also sometimes very expensive. Before you take out cash from the ATM using your American Express Starwood Preferred Card check to see how much the interest rate for cash advances is going to be. Cash advance interest rates can be more expensive than rates charged for regular purchases.

Remember, try to make the most of your credit card. If you can obtain a low interest rewards card that promises cash back at the gasoline station, why not use it. Small businesses can save a lot of money buy using their rewards correctly. A small construction company can charge materials at the local hardware store and reap the reward benefits at the same time.

Lastly, always use your business credit cards responsibly. Don’t fall into the traps that many people often do. Use your best judgement when deciding whether or not to charge your next purchase on your card. If the items that you are purchasing are not necessities, than pay them with cash or go without. It is very easy to forget that every time you swipe that card, you will actually be incurring debt. Once that debt gets beyond control it becomes a beast to maintain. If you use your card wisely than you are in control, as opposed to the card issuer being in control.

Labels: Amex Starwood Preferred Credit Card, Business Credit Card, business credit cards

Choosing the Right Credit Card

Choosing the right credit card in today’s environment can prove to be a challenging task for many consumers. There are literally too many offers to choose from without the right guidelines. Consumers can choose from all types of credit card offers these days. Card issuers are marketing all sorts of credit cards for every occasion. There are all sorts of rewards credit cards, bad credit card offers, business credit cards, low interest credit cards, balance transfer cards and even student credit cards to choose from. Follow these guidelines and you will be sure to find the perfect card to suit your needs.

You credit rating is first thing any potential credit card applicant needs to assess before applying for a credit card. Knowing your credit score will give you insight into what credit card offers you will be able to qualify for. There are many ways to find out your current score. You can purchase credit monitoring software that will notify you on a regular basis your credit score. They will even notify you when your score is downgraded. This is very good information to know in this era of identity theft in which we currently live. You can also contact any one of the three credit bureaus; Equifax, TransUnion and Experian. Their phone numbers are listed on the “Credit Report” section of this website. Knowing your credit rating will give you a realistic idea as to what credit card you should be applying for. If you have bad credit, then you will more than likely qualify for a bad credit card offer then a credit card the requires good credit.

Once you have determined your credit score, you can decide what category of credit card you are looking for. If you are a student, then a credit card geared towards students would best suit your needs. These cards offer college students the ability to build credit history. College students can take advantage of the many card offers available to them. Those who show accountability will be granted larger credit limits as responsible spending habits are demonstrated. Should you have bad credit, you might consider obtaining a secured credit card. Secured credit cards require a deposit in case of cardholder default. As with student credit cards, those responsible card holders will be granted additional privileges as good credit is established.

Narrow down your card choice once you have determined which category of credit card suits you best. Compare the features of about three to five different card offers. Obviously, you want to find one that is going to help you save money. Any credit card can help you save money. It is just a matter of using your credit cards responsibly. Always be on the lookout for interest rates and introductory offers. If you have good credit you will more than likely qualify for a lower interest rate card. However, many credit card companies offer very low interest rates as teaser offers. Once the introductory period is gone, interest rates are increased. Introductory periods usually last only 6 months to a year. These rates can be used to your advantage should you make a large purchase or transfer a balance from another card. Pay the balance within the introductory period and you might even get away with paying 0 interest. Many credit card offers also offer a rewards program based on how much you spend. Choose which credit card offers the best rewards program that suits your lifestyle. Frequent travelers have a variety of cards to choose from that reward spending with airline miles. Use these miles on your next vacation and save money.

In all, choosing the right credit card can be a tough decision without the proper resources. Card issuers bombard us with credit card offers claiming to be the best card. Cardholders can compare credit card features among different cards by using an online resource center such as CreditCardsMadeSimpe.com. Be sure to choose a card category that suits you best. If you are enrolled in a community college with little credit history do not apply for a business credit card. Chances are, you will not get approved. There are student cards available for people just like you. In all, be sure to choose a credit card that will suit your credit rating and lifestyle the best.

Labels: apply for a credit card, bad credit card offers, bad credit credit card, Business Credit Card, business credit cards, choose the right credit card, student credit card, student credit cards

The Advantages of the Amex Starwood Preferred Rewards Credit Card

As a small business owner, I know really well the importance of cash flow. There are many sources of obtaining credit when you need it. Banks, SBA loans or outside investors are among the many sources of finding cash to fund your business. However, credit cards can also be used to help you out when you need it. A credit card can be used for just about anything you can think of. Use your credit card to purchase business supplies, make payroll and take advantage of great rewards programs that can benefit you.

The Amex Starwood Preferred Guest Credit Card is an excellent choice for any small business owner that wants to take advantage of a great rewards program with low interest rates. Earn one point for every dollar that you spend on your Amex card. Use it at any of the Starwood hotels, such as the Sheraton, the Westin or W Hotels and earn two points for every dollar spent. Another great advantage of the Starwood Preferred Guest Credit Card is that you can save up to 25% on purchases from approved retailers. If you need to send a package overnight you can save 25% at Federal Express. Not bad if you need to send original documents when you are submitting an invoice. You can also take advantage of great discounts at Hertz rent a car. Another great advantage of using your Amex Starwood card for travel is that you get up to $100,000 dollars of travel insurance. If you purchase your airline tickets with your card and they loose your luggage, you can claim it back to American Express. Lastly, the Starwood Preferred Guest Business Credit Card from American Express comes with great interest rates. For 6 months you can enjoy 2.9% interest on purchases and balance transfers (balance transfers must be made within 3 months to qualify for low rate). After the 6 months are up you get a 9.9% interest rate. Interest rates for cash advances are 19.9%. The annual fee for this card is $45, but it is waived your first year as a card holder.

The Amex Starwood Preferred Guest credit card is an excellent credit card choice for the businesses traveler. Take advantage of the low introductory rate for all your business needs. Use your Amex Starwood Preferred card at many major retailers across the United States. Also take advantage of the excellent rewards program. You can also use your Starwood credit card at participating Starwood resorts in 95 different countries. Use your rewards points to take your next business trip or vacation. Your points are also transferable at over 30 airlines. Sign up for the Starwood Preferred credit card and earn up to 25,000 points which can be redeemed for up to 6 nights at certain Starwood hotels.

In all, the Amex Starwood Preferred Guest credit card is an excellent rewards card for anyone. You do not have to be a small business owner to take advantage of this great rewards credit card from Amex. Anyone can use this rewards card and earn points towards their next vacation. Apply online today and after about 60 seconds you will find out if you are approved.

Labels: Amex Starwood Preferred Credit Card, Business Credit Card, business credit cards, Rewards Credit Card, Rewards Credit Cards

Top 5 Responsible Credit Card Practices

Practice these five simple credit card rules and you are guaranteed to manage your account properly and increase your credit score.

1) Keep in mind, that your credit card is not a license to spend money. Many people take for granted that a credit card is like using actual money. People tend to spend differently with credit cards than with cash. You are more likely to spend less and keep track of your money if you have cash in your wallet. Your wallet can always be opened on a regular basis and you are able to physically count and feel how much money you have. On the other hand, with credit cards, people tend to forget how much they have spent. Keep track of your receipts and log online to view your bill on a regular basis. MOst importantly, do not spend on what you can afford to pay for in full.

2) Use your credit card for emergencies only. Do not get into the habit of using your credit cards for frivolous purchases. Spend what you can afford. Make yourself a monthly budget. Decide how much you can afford to spend with your credit card. If you can avoid it, do not use your credit cards at restaurants. Always pay your bills in cash when you go out to eat. Be careful when purchasing expensive items as well. You need to ask yourself if you are acting on needs or wants. If your purchase is based on a “want”, then you need to decide if you can really afford it. If you can, then go ahead and make your purchase. Do not buy what you can not afford. However, if your purchase is based on a particular need than your credit card can ease the gravity of your expenses.

3) Do not max out your credit cards. Often times, credit card issuers issue cards with large credit lines. It is very easy to over spend and max out your credit card. You will be fine if you can afford to pay the balance in full at the end of the month. However, if you can’t, you will quickly fall into a viscous interest paying cycle. Try to only spend between 10 to 20 percent of your credit cards limit. This will allow you to manage the debt easily and keep from getting in a debt trap. Your credit score will also go up if you are not always at the top your limit. Creditors will perceive irresponsible spending practices or financial difficulties. This can affect your interest rate or even cause you to be denied credit.

4) Leave your credit cards at home. There is a common saying that has a lot of truth to it. “Out of sight, out mind”. You will forget what you can not see. Keep your credit card at home and you will forget that you can use it. This is especially true, if you plan to have a night out on the town. It is very easy to go out, have a few drinks, and rack up a big bill. If you are armed with your credit card, chances are you will end up spending more than you had anticipated. If you leave your credit card at home and use cash, you will limit your chances of spending money you might regret later.

5) Do not ever give out the CVV code, or 3 digit code on the back of your credit card. Online retailers and payment gateways will always ask you for the code on the back of your card. If anyone finds out the information listed on both sides of the card, they will be able to use it almost anywhere online or over the phone. Identity theft is on the rise and these thieves are very creative. Be sure to always shred receipts with account numbers as well.

There are countless more ways to be a responsible credit card holder. Always keep in mind what you have just read and you will avoid debt and bad credit. However, most importantly, always use your common sense when using your credit cards.

Labels: Business Credit Card, business credit cards, credit card, credit cards, low interest credit card, low interest credit cards

A Business Credit Card for Business Owners with Good Credit


The Capital One Business Platinum Preferred credit card is a good business credit card for those well established or new business owners with good or excellent credit. This Capital One credit card also has a great rewards program. Capital One is a proven leader in the credit card industry. Despite recent financial turmoil, Capital One has been able to weather this storm unlike some of its competitors. Any business owner can take advantage of the great rewards programs that this Capital One Business Platinum credit card has to offer.

A 0% introductory rate on balance transfers and purchases until 2010 is one of its best features. This will allow business owners to use their credit card to make purchases at major retailers, restaurants and even suppliers without having to pay any interest. This gives business owners the peace of mind that they have some time to pay off their credit card interest free within a relatively long time frame. As a business owner, I know that a credit card can be very handy during hard times. A Capital One Visa credit card can be used almost everywhere. If you are in the construction business, you can purchase cement and other supplies at Home Depot or Lowes and pay no interest on those purchases for up to a year. The other great advantage is the Capital One Platinum Preferred business credit card is their rewards programs. Earn rewards from purchases at major hardware stores anywhere in the United States. Use these rewards benefits to your advantage and spend less in the long run.

Business travelers will especially be able to take advantage of earning 3 miles per dollar spent based on your primary business category type. That mean you can choose from several categories like “Travel and Lodging”, “Gas and Services”, “Building and Hardware”, “Computer and Electronics”, “Office Supplies and Furniture and even “Advertising and Shipping”. For example, should you choose “Building and Hardware”, you will earn 3 miles for every dollar you spend at Home Depot or other hardware supply stores. You will also earn 1 mile per dollar spent on your secondary category choice. Choose from the same categories and earn additional benefits. However you choose to prioritize your categories, the Capital One Platinum Preferred No Hassle Miles credit card will help you save money where you spend the most.

There are many business credit cards available to choose from, however, Capital One has proven itself a leader in the industry. The 0% interest until 2010 introductory offer on balance transfers and purchases can help save you money. If you are an avid traveler that enjoys home improvement projects, you will be especially happy with this card. You will be earning mileage points towards your next vacation destination as you shop for home improvement items at your local hardware store. Earn enough points and you could possibly even take a trip to Hawaii.

Labels: Business Credit Card, business credit cards, reward credit cardCapital One Business Platinum Preferred No Hassle Miles credit card, Rewards Credit Card

In the evenings, when I work on this blog, I usually watch some of the financial shows that come out on CNBC like the Carmen Ulrich show. On more than one occasion I herd viewers calling in with a very intriguing question. Several people called in with the greatest credit card offer in the world (at least it sounded like to me). Anyway, these people were being offered large cash advance sums like $25,000 to $50,000 with no interest for a year. The callers, wanted to know if they should take out that money and put it in a CD with a bank and earn some interest on it. I soon came to find out that the answer was absolutely not.

Credit card companies will entice cardholders with these great offers that have many strings attached. If for any reason you are late on any one of your payments, they will hit you with fines and raise your interest rate on that cash advance from 0% to 20%. Furthermore, once you lock money into a bank CD, you are always penalized for early withdrawals. If for some reason you suddenly need that money, you will loose money in penalties.

In my opinion, unless you have plenty of money for emergencies and pay your bill a few days before the due date online, you might want to give it a try. However, if you do have money, there are better ways of investing your money. There is too much risk for that introductory offer to change for whatever reason. I would definitely agree with Carmen and avoid making that kind of financial move.

Labels: apply for a credit card, business credit cards, Carmen Wong Ulrich, credit cards, low interest credit card

In the evenings, when I work on this blog, I usually watch some of the financial shows that come out on CNBC like the Carmen Ulrich show. On more than one occasion I herd viewers calling in with a very intriguing question. Several people called in with the greatest credit card offer in the world (at least it sounded like to me). Anyway, these people were being offered large cash advance sums like $25,000 to $50,000 with no interest for a year. The callers, wanted to know if they should take out that money and put it in a CD with a bank and earn some interest on it. I soon came to find out that the answer was absolutely not.

Credit card companies will entice cardholders with these great offers that have many strings attached. If for any reason you are late on any one of your payments, they will hit you with fines and raise your interest rate on that cash advance from 0% to 20%. Furthermore, once you lock money into a bank CD, you are always penalized for early withdrawals. If for some reason you suddenly need that money, you will loose money in penalties.

In my opinion, unless you have plenty of money for emergencies and pay your bill a few days before the due date online, you might want to give it a try. However, if you do have money, there are better ways of investing your money. There is too much risk for that introductory offer to change for whatever reason. I would definitely agree with Carmen and avoid making that kind of financial move.

Labels: apply for a credit card, business credit cards, Carmen Wong Ulrich, credit cards, low interest credit card, student credit card

In 2008 the United States government has come up with more acronyms that will go down in our history books for ever. The TARP act also known as the Troubled Asset Relief Program has basically evolved into a new plan called TALF, or Term Asset Backed Securities Loan Facilities. Essentially our government decided to abandon the idea of buying up troubled assets, and instead investing the nations failing banks.

It is my understanding that the TARP program was going to be originally used to purchase foreclosed homes. The intention was to stop home prices from further falling. However, Paulson has decided that it would be better to spend the bailout funds unfreezing consumer credit instead. Paulson is now using the TARP funds to inject more capital into our banking system in order to stabilize the economy.

Congress under the TALF fund has given away billions of dollars to financial institutions that otherwise might have failed without it. Paulson has been strongly criticized for allowing the failure of Lehman Brothers to take place. Congress has recently agreed to inject $20 billion into Citigroup, which has seen its stock price on a roller coaster ride. Around this time last year Citigroup stock was trading around $35 a share and has plummeted all the way below $4 a share. News of the bailout sent Citigroup stock soaring back up to around $8 per share.

The new bailout plan is designed to restore confidence in our banking system again. Our banks need to be healthy in order to be able to lend money to businesses and consumers who spend the money in our economy. Auto loans will help the failing American automakers to increase the sales it needs to survive. Credit cards will help our retailers continue to sell higher priced items that they would otherwise not sell as much. Student loans are needed in order to continue the spark of innovative and revolutionizing ideas that come out of our country. It is these ideas that will drive our future economies as well.

Henry Paulson has left the remaining 50% of the bailout funds for the Obama administration to administer. It will now be up to our new leaders to use these funds wisely and keep our economy from further implosion. As a nation, we must stand behind our current and new leaders and keep this country moving forward. Only time will decipher what the future has in store for our economy. One thing, I do know for certain is that one way or another our country will prevail.

Labels: apply for a credit card, Barrack Obama, biometric credit cards, business credit cards, credit card offers, credit cards, henry paulson, TALF, TARP

What Are Biometric Credit Cards

How many times have you gone to the grocery store or fast food check out lane and all of a sudden discovered that you forgot your purse or wallet? Imagine if you could use some other way to pay for that item based on something unique about you. Biometric security measures are already in place in some very sensitive highly secure places. If you have ever had to access a building by using your thumb print, then you have already been exposed to biometric technologies. Apply the same technology to credit cards and other financial transactions and you have opened a completely new way for consumers to pay for purchases.

It would be quite convenient if all we had to do was go to a convenience store and give our thumbprint to pay for an item. Your unique thumbprint will then identify that you are authorized to use certain credit cards. After selecting which card you want to use, the computer will then use your thumbprint information to retrieve your credit card number, expiration date and your available balance. Once you give the final authorization, the credit card transaction is finalized.

There are other methods to retrieve your biometric profile besides your fingerprint. Retina identification is another way to gather such personal data. The human retina is just like you fingerprint in the sense that every person has unique features that set them apart from every other individual. Although not 100% perfected, retinal scanning is being used by agencies such as the FBI, CIA and prison institutions. This same technology can be used to identify your credit card or banking information also.

One of the big advantages of using some sort of biometric wallet is the security features that such a system has to offer. No longer are you tied to carrying around your plastic credit cards or paper money with you everywhere you go. That completely eliminates the chances of you loosing your wallet full of valuable credit cards and money. Your wallet now becomes built into your physical person. This also completely eliminates the chances of you forgetting your wallet at home. No longer can your overly frugal friend forget his or her money when you go out. With biometric identification technology incorporated into our financial transactions, even the checkout station at the grocery store will move smother.

This futuristic wallet has already been attempted by a company called Pay by Touch. Unfortunately, they were unable to make a successful go at it due to bad management and hardware costs. At this point there are too many configuration and cost obstacles to overcome. However, this technology will eventually be used by everyone from your bank to your hospital. The ability to identify a person’s medical history instantaneously will definitely help save many lives. I am quite certain that this technology will be embraced in the future. Perhaps it may or may not be cost effective to implement such a system at this time, but there will certainly come a day when costs come down and the technology is available at Wal-Mart.

Labels: biometric credit cards, business credit cards, credit cards

Why Everyone Should Have a Credit Card


There are many advantages to having a credit card. First of all, a credit card can help build your credit history. Credit card companies regularly report to the three credit bureaus. Paying your credit card on time will reflect positively on your credit score. Also, it is important that you pay off your balance in full every month. Do not charge what you will not be able to pay off. Cardholders who demonstrate financial responsibilities will be rewarded with lower interest rates on other loans such as car notes and home mortgages. Young people can take advantage of credit cards to start building their credit for the future.

Credit cards can also be used to simplify your accounting. If you run a small business, you will be very grateful for your end of the year itemized reports. Credit card companies typically categorize all your expenses for you automatically. Charges that are made at restaurants are categorized accordingly while charges made at an office supply are categorized under office supplies. This is very handy when you need to determine how much you have spent on a particular expense so that you can deduct it from your income tax. If you spent $5000 at restaurants, your yearly itemized statement will show exactly where and when the money was spent.

Credit cards also offer you added security if you loose the card. Should you loose a wallet full of cash, chances are you will not see it again. However, with credit cards, all you need to do is call the lost or stolen hotline, cancel the card, and have another one reissued to you immediately. I remember traveling to California and loosing my American Express Gold Card at the House of Blues. Within a couple days I had a new card sent to me. Some rewards credit cards even offer additional travelers insurance in case you loose your luggage. Credit cards also offer consumers protection on certain purchases. Some card issuers will even go as far as offering insurance for a specific amount of time in case your purchase is stolen or damaged.

Another advantage to having a credit card is the ability to make purchases on line or over the phone. Most online commerce websites accept only credit cards to make purchases. Amazon.com is a classic example of a commercial website that requires shoppers to have a credit card in order to make purchases. New technologies have made it safer for consumers to use their credit cards online. Most online shopping sites use SSL secured technology to encrypt confidential data being sent back and forth between computers. This makes it almost impossible for hackers to steal your card information.

Credit cards also come in handy during emergencies. Emergencies always creep up on us and demand that we cough up cash fast. A car repair can easily cost more money than you have on hand. You will not be able to take care of important tasks without the use of your vehicle. However, with a credit card you can pay for the repair expenses immediately. Then you will have time to pay off the debt to your credit card company. If you were to have to use the only cash that you have on hand to fix your car, you would be without other necessities until you are able to make the money back. A credit card will allow you to fix your car and not be without groceries or rent money.

Credit cards when used responsibly can make any ones life much easier. If you are on vacation and loose your card, not to worry, you can always cancel and have a new one sent right away. Credit cards can also help you out of a bind or allow you to purchase the new television set or purse that you have always wanted. Credit cards can also help build your credit if used properly. In modern times, credit cards have become an integral part of our day to day lives.

Labels: Business Credit Card, business credit cards, small business credit card

Today the government announces that it would provide up to $800 billion to unfreeze consumer credit. The financial crisis has spread from Wall Street to Main Street. Student loans, auto loans and credit cards have been much harder to come by because of the crisis. Credit card companies are raising interest rates, cutting credit limits and raising minimum payment from 2% to 5%.

Consumers this year are not spending as much money on their credit cards as they have in previous years because of reduced credit limits and higher interest rates. More people this year will be buying holiday presents using either cash or debit cards. In order to alleviate the situation the government will spend $200 billion for consumer credit.

All these billions of dollars that are being spent on bailouts are supposed to help get our economy out of the biggest financial crisis since the Great Depression. Our national economy is based on people’s abilities to borrow and repay loans. Consumers who are making large purchases usually require credit in order to make those purchases. It is not uncommon for someone to purchase a $1000 or more television set on their credit card. Retailers relay on credit cards to increase sales. If consumers are denied credit then spending will slow down and the economy will suffer even more. Consumer spending is the lowest it has been in almost five decades.

It will be up to the Obama administration to stimulate the economy and keep the nation from going into another depression. It is quite obvious that we are in a major recession, but with action, our economy will pull through. According to recent news, Obama will unveil a stimulus package that includes rebuilding our national infrastructure. Public works programs will employ thousands of workers who have lost their jobs. These people will turn around and continue to spend money, make mortgage payments and be able to pay their credit card bills as well.

Our country has been through many troubled financial situations throughout history. In 1974 unemployment was at 11.5 percent. In 1983 unemployment was at 8%. No matter how bad off things have gotten, the United States always manages to pull through. We are a resilient country that can survive almost anything that comes are way. The stock market goes up and down, yet people continue to start new companies, build new buildings and prosper without regards to the DJIA.

It was the United States that created the internet. During the 1990s we experienced years of prosperity because of the dot com era. The dot com bubble did burst, yet the technology that was created during that time moves our economy today. Companies like Google and EBay have transformed the way we do business. There are many who feel that our economy is headed for doom and gloom with no end in site. However, there are those that believe our economy will eventually triumph. I am of the belief that we will come out a stronger country because of this recession. Perhaps, we will experience on day an energy boom created by new technologies. These new energy technologies will in turn create jobs and spark another boom era; and the economic cycle will start all over.

Labels: business credit cards, consumer bailout, credit cards

Prepaid credit cards make an excellent gift for holiday shoppers. There are many advantages to giving friends and loved ones a pre paid credit card over traditional gifts. First of all, pre paid cards can be used for a wide variety of purposes. You can use your pre paid credit card to purchase just about anything. The gift recipient can use it to purchase new clothes or apply the money towards a vacation. College students will be very happy to receive pre paid credit cards as gifts also. This person can use their gift card at the grocery store or even at the student book store. Pre paid credit cards will come in handy especially for those who are having financial difficulties. These people can use their cards to pay bills or even put it away for an emergency. Prepaid credit cards are an even better option over using a particular retailer’s gift card. The recipient is not limited to purchases at one particular place and can use it from anywhere to the movie theatre to the emergency room.

A prepaid credit card is also a gift that can keep on giving should the giver decide to re fill it. Most prepaid credit cards can have more money added to the balance simply by going to local retailers who sell the cards. You can also go online and use another credit or debit card to refill the balance. Some prepaid credit card offers will even send you text alerts when your balance reaches a certain level. Other popular features include the ability to check your recent transactions online as well as your balance.

Another important feature to consider when purchasing your prepaid credit card is the balance limit. Some prepaid cards have a $1000 limit while others can go up to $10,000. It is also important to know that prepaid credit cards are not insured by the FDIC like checking or savings accounts. Therefore, it is probably not wise too keep much money in a prepaid credit card acount. The FDIC is currently looking into extending coverage to prepaid cards as well, but until then there is no FDIC insurance provided.

There are a variety of prepaid Mastercard and Visa credit cards. However, not all pre paid cards are equal. Some pre paid credit card issuers will charge a monthly fee while others will charge you every time the card is used. The Vision Premier(SM) Prepaid Visa card is a good example of a prepaid card. They charge a one time $9.95 activation fee and a weekly fee of $0.95. Vision Premier will waive this fee if you are enrolled in their direct deposit program. They also charge you $1.95 for every time you withdraw money from any ATM machine. In addition, they also charge you $0.95 every time a transaction involves the entry of your personal identification number (PIN). Most gasoline stations require you to enter your credit card’s PIN number every time you pay at the pump. This prevents people from using stolen credit cards to fill up their gasoline tanks. The Vision Premier(SM) Prepaid Visa

will also allow you to deposit money to it at many worldwide popular locations including Western Union, ACE Cash Express and MoneyGram.

Many prepaid credit cards also come with a rewards program. For example the Wired Plastic Prepaid Visacard offers one point for every dollar spent on the card. These points can then be redeemed towards other offers like prepaid cellular time, music downloads and even cellular ring tones. Some card like the The Baby Phat Prepaid Visa RushCard even offer a cash back rewards program.

The Holiday season usually brings out the Chris Cringle in all of us. For those who are stumped about what to give a loved one this holiday season, consider giving a prepaid credit card. Anybody will be happy to receive a gift that can be used for just about any purpose. This year don’t just give your friends or loved ones a $50 gift card to Chili’s. Give a prepaid card that can be used at other places as well. Perhaps, the person you give the Chili’s card to prefers Red Lobster, or better yet going on a diet. Instead the person you give the prepaid credit card to will be able to choose what he or she wishes to do with that money. Prepaid credit cards will make perfect gifts for anyone from your niece in college or your mom and dad in Florida.

Labels: apply for a credit card, business credit cards, credit card offers, pre paid credit card, pre paid credit cards, prepaid credit card, prepaid credit cards

A Long Road Ahead

No matter where we look these bad news seems to be upon us. Citigroup recently announced that it would raise interest rates on credit cards. Interest rates were raised for cardholders who had not had rates raised on them in two years. Interest rates have been raised as much as 3 percentage points for Citigroup customers. This announcement came even after Citigroup promised to congress in 2007 that they would not raise rates if they were forced to face more regulations.

These rate hikes do not come as surprise during these tough economic times. It is only logical that as people get laid off from their jobs, they will not be able to pay their bills. Credit card bills often go unpaid because people need to use whatever available funds they have to barely make utility bill payments.

2009 will definitely be a difficult year for many people the country has already been in a recession all of 2008 and things will probably get worse before they will get any better. The Dow Jones Industrial Average closed at 7552 points. The massive sell off comes after the government continues to put more stipulations on the auto industry. However, automakers don’t make a good argument that they are broke when executives arrive to Washington in private jets wearing expensive suits and expecting a handout. This does not sit well with our lawmakers or the general public who will have too pay the bill.

More job losses will definitely not mean good news for the credit card industry or anybody else for that matter. The future of the American automotive industry in is definitely a catch 22 situation. If we bail out the Detroit automakers then we are going to have to finance another 25 billion dollar bailout. However, if we do not bailout the auto industry then we face more job losses.

Despite this deep economic recession that we are in, we will prove history once again that we will recover. It will be up to our leaders to make the right decisions to get us out of this mess as quickly as possible. Our new president and his staff will definitely have a challenging job ahead of them. Repairing our economy will not be an easy task. Much damage has been made due to the years of deregulation. Our banking industry should definitely be regulated but not overregulated.

The country is now entering a new era of capitalism. It has always been the common school of thought to keep government out of business, but now our government will become shareholders of some of the largest financial institutions in the world. In reality, this will be a good thing for our economy. If as a country we are going to rescue those companies that are about to sink we might as well take control.

Labels: apply for a credit card, business credit cards, Citigroup, economic recesion, interest rates

How to Protect Yourself from Identity Thieves

It is estimated that one in thirty-five Americans will be a victim of identity theft in his or her lifetime. One of the fastest growing crimes is now identity theft. There is even a good chance that you will not know that you are a victim of identity theft. On average, an individual does not discover that they are a victim of identity theft for about fourteen months.

There are many ways from keeping yourself protected from identity theft. One of the most important is to monitor your credit report on a regular basis. Be sure to pull your credit score at least once a year. The credit agencies will charge somewhere around $9 per agency should you wish to pull it more than once per year. If you see a sudden drop in your credit score after you have been keeping up with you’re your bills then there is a good chance that you have become another victim. You can contact any of the three credit agencies for a free annual report. Remember, that knowledge is power to stop the thieves from further ruining your credit.

Another good way to protect your self is to purchase a paper shredder. Thieves will go to any length to get what they want. A thief can find information in all sorts of interesting places like trash cans, dumpsters or even the city dump. It is very common for people to throw away voided checks, deposit slips, old tax return information, bank statements, credit card receipts and credit card offers that you receive in the mail. They will look for anything possible where they can get to your account numbers, social security information and even your drivers license number. The best way to avoid this is to shred all your important documents. You can purchase a shredder for under $75 at most any retailers like Office Max, Office Depot or better yet Wal-Mart.

Email is another way that thieves will also try to get information from you. Do not answer any emails that say they are coming from a bank and asking you for your information to update their records. These perpetrators will make the emails seem very realistic and convincing. They will disguise themselves as being from Bank of America, EBay, Pay Pal and even the IRS (Internal Revenue Service). I have received many an email claiming to be from the IRS telling me that I have unclaimed refund money. They want your social security number. That is why they claim to be from the IRS. Banks or the IRS will never solicit information from you via email. It is also very difficult to catch these online thieves as more often than not they are from out of the country. If you do receive an unsolicited email pretending to be the IRS you can report it online at www.IRS.gov. Should you receive an unwanted email pretending to be a bank such as Bank of America you can report to http://www.doi.gov/pam/Fraudalert411.html.

Also, be careful if you live in a dormitory or with roommates. You might know your roommates well enough to trust; however, they can bring someone else who brings another person that ends up steeling your check book. Lock up your valuables in your own home. You can never be too careful with important information like your bank statements, inactivated credit cards or even your driver license. All someone needs to open up new accounts is your social security number or license number and it’s off too the races. Many times people can find information about you on Google as well. One piece of information given to a search engine can retrieve other data as well.

Be careful where you give out information when online. Do not log on to online banking or other online financial sites like credit card online accounts when you are on an unsecured wireless network. Hackers can be intercepting data while you’re logged onto to your computer at popular wireless hangouts like Starbucks. Lastly, do not use public computers to access online account information either. It’s quite possible that your password information stays on that computer and is retrievable by the next person to log on.

Labels: business credit cards, credit card offers, credit cards, identity theft protection