The Credit Fix Report

Business credit cards come in a variety of forms, which can seem a little overwhelming to someone that doesn t know the difference between the different types of cards. When it comes to business credit cards, the largest percentage of the market is small business owners. In fact, small businesses are the driving force behind the American economy and create the most new jobs every year. Therefore, credit card companies have developed business credit cards with the small business in mind, but there are some differences between business credit cards for small businesses as compared to those for corporations.

Where You Find It

One major difference between corporate credit cards and small business credit cards is how you found out about it in the first place. For the most part, small business credit cards are those that you see advertised on the Internet and for which you might receive a pre approval invitation. Corporate credit cards are not advertised in the mass media because they are set up differently, operate differently, and target a different group of people.

Customizing

When it comes to small business credit cards, you have to take what you can find. Of course, you can compare business credit cards to find the ones that suit you best, but you don t really have much room for making changes to the card to meet your needs. When it comes to corporate credit cards, the business can request options to be custom made to work with the company. The reason for this increased flexibility comes down to revenue. A corporation placing millions of dollars of transactions on the credit card can have more say in how the card is set up. This ability to customize is another reason why you generally don t see corporate business credit cards being advertised within the mass media.

Of course, corporations generally have greater needs when it comes to their financial responsibilities than a small business owner. Options they might need to have included on the card are often meant to help the corporation keep track of expenditures and to review and approve them in order to reimburse employees for entertainment and travel. The ability to track all of these expenses so closely requires the use of specialized software that is designed to interface with platforms from human resources.

Payment Responsibility

Another major difference between corporate credit cards and small business credit cards is the matter of who is responsible for repaying the debt. As a small business owner with a sole proprietorship, you and the business are one and the same. This means you are personally responsible for repaying any debt that may have incurred. If you default on payments, it is your personal credit history that is hurt. A corporation, on the other hand, is separate from the owner. Therefore, the corporation is responsible for repaying the debt. As such, the corporation may default on the credit card loan and file for bankruptcy, but you do not personally file.

It s in the Name

Since a small business owner is generally a sole proprietorship and you are personally responsible for the debt, another difference between corporate credit cards and small business credit cards is the name on the card. In the case of a small business credit card, your name is generally what is listed on the front of the card. A corporate credit card, on the other hand, will have the corporation name on the front. In addition to the corporation name, it will usually have your name as well in order to verify that you are an authorized user. This also helps the corporation track the expenses of each employee. But, the primary name is the corporation name since financial responsibility falls back on the company.

The credit card business is a competitive one. It is also a very profitable one and the combination of the two explains why you seem to find a pre approved application in the mailbox just about every day. A new customer is worth a lot to the companies that issue credit cards; most consumers will spend thousands of dollars in interest during the time they carry the card.

Because the business is so competitive, many card issuers offer various bonuses and incentives to help them acquire and keep customers. These incentives may include frequent flier miles, discounts on baseball tickets, cash back bonuses and more. For someone who has an interest in the particular type of bonus offered, these cards may offer a better value than another card of the same type. But consumers would be wise to remember that these bonuses are not offered out of kindness, they are offered in the expectation that you, the consumer, will pay the company far more than the bonuses are worth in interest. There is no such thing as a free bonus; the companies expect you to pay for them.

The average American household has nineteen credit and debit cards and debt that exceeds 9000. With that kind of debt, most consumers are clearly not paying their bills in full each month. And by not paying in full, they are paying a great deal of interest, as most bank cards carry interest rates that range from 10 30 percent per year. The free bonuses are funded out of the millions of dollars in interest that are paid by consumers who don t pay in full.

On the other hand, if you are a savvy consumer, you can take advantage of these freebies by carefully shopping for a card that has bonuses that suit your needs. You can then use the card carefully by remembering to pay the bill in full each month in order to avoid paying more in interest than the bonuses are worth.

Some types of bonuses include

Baseball affinity cards You can get a card with the logo of your favorite baseball team, and even get a pair of free tickets just for signing up.

Cash back The Discover card offers a cash rebate for a portion of the amount you spend each year. This could amount to as much as 1 percent of the total amount spent.

Extra warranties Some cards, like American Express, offer extended warranties for merchandise purchased with the card. Should the item break, you may get it repaired or replaced at no charge.

These are but a few examples of the hundreds of different types of bonuses offered by the credit card companies to try to entice you to use their card. The offers are real and the benefits are great. If you like baseball, get the card from your favorite team. If you like to fly, get a card with frequent flier miles. Just remember that failing to manage your bill properly will leave you paying far more than those bonuses are worth. Otherwise, that free plane ticket could end up costing you thousands of dollars.

A miles card is one of the many credit card options available for the discerning big spenders of today. A miles card definitely amounts to rewards, if utilized in the right way, but more often than not the customer ends up paying out more in finance charges and fees than they would have with a traditional card.

Ever tried figuring out the cost per mile on your miles credit card? Or does that sound like too much work? The bottom line is that you need to earn enough miles on a miles card in a year to ensure that you are not overpaying for the miles. That being the case, you would be better off utilizing a credit card that doesn t charge you an annual fee instead of those cards that come with hefty annual fees.

Know Your Miles Card

Knowing a mile s value on your miles card will help you in ways more than you can imagine, so don t ignore it! There is definitely no point in sticking with a program that offers you rewards of less than 1 mile earned per dollar purchased using the card. You also wouldn not want to fritter away any miles that you earn on your miles card for products or services that give you much less value for your money, but if your reward points are about to expire on the card then, of course, you have no choice but to use them or risk losing them.

Using the Miles on your Miles Credit Card

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