Managing your finances is a huge task you need to do. By managing your finances properly, you can avoid burning substantial money on something that is really not useful. Managing your finances can also help you make your financial status more stable. With these, you can make your life better.
When it comes to managing your finances, one of the options is to get a credit card. This option provides a lot of benefits to many individuals. For one, yous do not need bring a huge amount of money in your pocket when shopping. This means that you will also feel safer and more secured against theft. But in order to obtain these benefits, you need to first find the best credit card provider that can cater to your needs. Here are some factors you need to know.
Compare interest rates
There are lots of banking institutions that offer credit cards. Therefore, one way of choosing is to compare their interest rates. Interest rates vary depending on the institution you choose. So, it is vital to carefully assess the interest rates of the banking institution before signing a contract.
Balance your salary and credit card
You also need to make sure that your credit card will match your current salary. Balancing your salary to your credit spending is needed to ensure that you have the capacity to pay for your credit card each month. Luckily, there are reputable banking institutions that offer different types of credit card to accommodate your needs and complement your lifestyle.
Evaluate other fees and charges
Other than interest rates, there are other fees and charges you need to deal with when getting a card. When you want to transfer balances, getting a balance transfer card is ideal since it offers a low introductory rate on balance transfers for a period of time. By knowing other charges and fees, you can make better decisions when to make use of cards.
Know more about reward and freebies
Finally, you also need to determine the rewards and freebies the card company can offer such as VIP lounges at airports all over the world, world-class fitness centres, and free concierge services up to free air miles and cash back privileges.
By knowing these factors before getting a credit card, you can be sure that you can choose the best option that can help you make your lifestyle better and more efficient.
A lot of small to medium-sized business owners use credit cards in the course of business. The problem is, many make the mistake of using their personal cards. There are a couple of major problems with this:
First, if you use your personal credit cards for your business you are blurring the line between business and personal finances. The better separation you can achieve between your business finances and personal finances, the better off you will be. For this reason, a credit card in your business name is the best route.
Second, using your personal cards for your business puts your personal credit at risk. If the debt belongs to the business, shouldn't it be on the business' credit?
Most people don't think this is a big deal until they run into problems and no longer have their personal credit to fall back on.
In one example, a couple in business together racked up over $ 100,000 of unsecured debt on their personal credit for their business. When the business's income dropped, even though the business was at first able to stay afloat, the couple was forced to file for bankruptcy.
With their personal credit destroyed, they could no longer get credit to support the business - and the business went through some serious struggles as a result. The stress took a toll, and the couple is now divorced. Perhaps things might have gone differently if they had depended on business credit rather than their personal credit.
Maybe you're thinking that your company won't struggle, or that you don't use credit cards much anyway. What's the point, then?
Using a business credit card in your business does offer some real advantages aside from the two that were already mentioned. For example:
1. Streamline operations and automate expense tracking. Paying expenses can be much easier to manage with a business card, and reports can be generated monthly or annually in many cases to help categorize and analyze expenses.
2. Business cards have "rewards" programs too! If you have a lot of regular monthly expenses for your company that can be paid with a rewards card, you could easily get $ 500 to $ 1000 per year (or more) in cash rewards, or even free airline tickets if you use a travel rewards card .
3. Manage employee spending. Business credit cards can be set up to have spending limits for employees, which can aid in managing expenses for in-the-field employees.
4. Using a business card helps you build credit for your BUSINESS, which is of utmost importance in today's economy.
As you can see, there are several big advantages to using an actual business credit card for your business.
A helpful hint for those wishing to establish business credit: Try to get approved based on your business's creditworthiness rather than your personal creditworthiness.
This means avoid providing your social security number on credit applications for your business credit card. If you don't get approved based on your business credit alone, then you can try applying and include your personal credit information as necessary.