Identity Thieves are Sneakier Than You Think

11:02 AM Umair

We’ve all heard the warnings: never give out your personal information over the phone or Internet unless you want someone to steal your identity. Even the most official-looking e-mails branded with corporate logos can be a front for phishers – crooks who want to make off with your credit card information and more. But sometimes you have to take extra steps to protect your identity. Here are some tips to keep you safe.

Leave Your Credit Cards at Home

When you don’t need your credit cards, leave them at home in a safe place along with your Social Security card and other important documents. This will not only curb the temptation to make impulse purchases, it will also keep your finances secure in the event that your wallet or purse is lost or stolen.

Keep Personal Details Private

Are you on social networks like MySpace and Facebook? If you’ve published such personal details as your full name and date of birth, thieves can use that information to learn more about you. Savvy thieves can take a few personal details and use them to track down your Social Security number and even your financial accounts. Play it safe and keep your details to yourself.













Watch for Missing Mail

Have you been waiting for bills or credit card statements that never arrive? Contact your creditor to ask about the delay. Once an identity thief highjacks your account, they can easily change the billing address, leaving you in the dark when it comes to purchases made with your credit card.

Manage Your Paper Trail

Whenever possible, get your bills and statements online and do away with paper bills altogether. That way, nobody can swipe your discarded mail and make off with your personal information. If you just can’t say goodbye to paper, be sure to shred your mail thoroughly before throwing it away.

Trust Your Instincts

If something seems fishy, go with your gut. For example, some thieves attach devices to the card slots of ATM machines and gas pumps. These devices capture the details of every card inserted into them. If there’s something unusual about a machine, don’t use it. Likewise, if your cashier is taking too long with your credit card, they could be taking a picture of it with their camera phone or swiping it through a ‘skimmer’ device to steal your credit card number. You don’t have to have a confrontation, but do be sure to keep a close eye on your credit card statements if you have suspicions.

What You Need to Know A

10:59 AM Umair

If you have found yourself with a high credit card balance and a high interest rate to go along with it, you are not alone. Many households today have credit card debt totally well over $10,000. While 0% interest transfer credit cards are not as plentiful as in the past, they do still exist. If you can qualify for a balance transfer to a low or 0% interest card, it may be something you want to look into.

To determine whether or not a 0% interest card is right for you there are things to consider. First, understand that in most cases you will need to have a good to excellent credit rating to qualify. If you don’t have great credit, this option most likely will not be for you. Also realize that most offers today are for shorter terms than in the past ranging from approximately 6 -12 months. Balance transfer fees are also on the rise and unlike in the past do not have a cap. You can expect to pay transfer fees of about 3-5% of the total amount you plan to transfer.

To decide if a 0% interest balance card is a good option for you simply weigh the pros and cons. Determine the amount you would like to transfer and then take a hard look at your finances. If you are certain you can pay off the balance during the promotional time period, then you should take the next step. Organize all of your current credit card bills and get ready to determine which 0% interest credit card is right for you.













It will now be essential for you to do some home work. You will want to carefully compare offers between several different credit card companies. Be sure to read the fine print to determine fees, percentage rates and other restrictions. There can be quite a wide range and you will want to compare figures to determine where you will get the best deal. Also understand that once the promotional time period is up, if you have not paid off the balance in full, your interest rate will rise considerably. It is advisable to look at what the rate will go up to after the promotional period and compare that as well. Weed out any cards that seem higher than the average. Other benefits your new card should offer are no annual or application fees.

While you are waiting for approval and the transfer to go through be sure to continue making monthly payments on your other cards. Once you have your new card in hand and have transferred the balance, be warned. You will want to make sure that you never miss a payment. You will need to make your monthly payment, at least the minimum, on time every month. If you miss even one payment you can be hit with a no payment fee and because you have breached the credit card agreement the credit card company can choose to raise your interest rate.

Another thing to note is that it is not advisable to use your new credit card to make purchases. Usually the 0% interest rate only applies to the transfer, not to new purchases. Keep your new purchases separate on another card and make sure anything new you charge you can pay off. The last thing you will want to do is start building up new debt as you pay off the old.

The Argument against Credit Cards for Small Business Expenses

10:55 AM Umair

The use of credit cards for your small business can be detrimental, and it's best to avoid using them. The reliance on credit cards to build up a business is a shaky foundation that will negatively affect not only your business but also your household. Entrepreneurial success is based in part on hard work, and credit cards reduce or eliminate your drive to be diligent. Forget the propaganda and marketing materials you've read or heard to date about how wonderful it is to use a credit company while building a business. Consider these arguments against using credit cards for small business expenses.

The Easy Road to Bankruptcy

Too much credit card debt can lead to your making a decision to file for bankruptcy, which can ruin your life for seven years or more. If small business owners were so disciplined with their use of credit cards for a small business, credit card companies would be out of business. The truth is that a lot of psychology and marketing goes into designing a credit card that will prey on your weakness, and even the most disciplined entrepreneur may not overcome the temptation to use it to make purchases. Small business expenses add up and can take 30 years to pay off. If your business fails, you may not be motivated or have the ability to pay off those credit cards. History shows that the end result for many small business owners is bankruptcy, and that's not a risk you want to take.

Higher Small Business Expenses

Studies show that you are more likely to spend more on small business expenses using a credit card than you are with a debit card, check or cash. Controlling your expenses is the key to effective money management in business. Not handling money well is the primary reason small businesses fail. If using credit cards for your small business leads to overspending, then common sense dictates that it's not a good idea. When you reduce expenses, you can increase profits to grow your business. Otherwise, your competitors who keep their costs down will beat you every time.









Leads to Poor Business Management Practices

Credit cards for small business are seemingly a quick fix to problems. You end up relying on your credit cards, instead of creative solutions to problems. The business problems you face are not new. Other entrepreneurs have solved such problems in the past, without using credit cards. You hamper your ability to manage your business, and you develop poor habits if you avoid solving those problems, which is exactly what you do when you use credit cards. There are ways to run a business with little money, and you may have to start small before you can grow big. Credit cards are not a way to get rich quick but, rather, your way to get poor faster.

This argument may seem harsh, but the harsher reality is the financial ruin that comes to many entrepreneurs and their families who have been taught that credit cards for small business are a necessity or a great idea. There are better ways.

Taking Advantage of Business Credit Card Balance Transfer Offers

10:52 AM Umair

When you get a business credit card, balance transfer offers can sound very appealing. If you use them correctly, these offers can really work to your advantage. However, if you do not handle them properly, they could come back to hurt you. Here are a few things to consider about taking advantage of business credit card balance transfer offers.

How They Work

Although every credit card company handles this type of offer in its way, the offers tend to have certain similarities. Most of the offers will provide you with a 0 percent introductory rate on all balance transfers that you make to their card. You will be able to take advantage of no interest for a certain amount of time. In most cases, they will give you at least one year to take advantage of these terms.

In order to utilize this program, you will have to complete a balance transfer from another credit card or account. You could potentially use the credit card number from your new card to pay off a balance, or you could have the credit card company take care of the transfer for you. Either way, the end result of the transaction will be that you transfer balances from your old card(s) to the new card.

Saving Money

When you take advantage of this type of deal, you could potentially save your business a lot of money. If you already have a business credit card, there is a good chance that you are paying very high rates of interest. In some cases, you might be paying as much as an APR of 25. If you have a large balance, this could add up to a substantial amount of money that you are paying to the credit card company in interest charges. If you were to transfer this balance over to a credit card that has no interest for the next 18 months, you would be saving a substantial amount of money.









Paying off Debt

Another advantage that could come of this type of program is an ability to pay off your debt quicker. In those cases, you will have 12 to 18 months to take advantage of not having an interest payment. The money that you would have been paying in interest can now go towards retiring the debt. With this strategy, you could potentially pay off the balance or pay it down significantly during this promotional period.

Investment

This type of offer can also provide you with the opportunity to invest money back into your business. Instead of paying extra money every month towards a high interest rate on a credit card, you can instead use this money to invest. You could potentially buy equipment or expand your business. There are also many other things that you could invest in with the money that you save. This will provide you with a way to earn money on the interest that you saved.

How to Get a Business Credi

10:50 AM Umair

If you are looking to acquire a business credit card, low interest will be one of the most important features to look for. Securing a lower interest rate can provide you with a great source of savings for your business. Here are a few things to consider about how to get a business credit card with low interest.

Build up Credit

One of the first things to do is to try to build up your business credit score. Just as individuals have personal credit scores, businesses have credit scores. If you are in search of a low interest rate on a credit card, having a high credit score for your business will be very beneficial. There are several ways that you could build up your credit score. One way is to open some accounts with vendors that report to the credit bureaus. Make some small purchases on these accounts and then pay them off on time. This will help develop some credit for your business, and it will have a positive impact when you shop for a credit card.

Shop Around

When you are in search of a low interest rate for your business card, you should also be sure to shop around with many different credit card companies. Even though external factors play a role in interest rates, each credit card company is going to have its own criteria when it comes to deciding on an interest rate. Make sure to look at a number of different companies so that you can make sure you are getting the best deal on interest rates.










Negotiate

Whenever you are shopping for a credit card, you can also use negotiation to your advantage. Many people do not realize that you can actually negotiate with credit card companies in order to get a lower rate. While not every credit card company will be willing to negotiate, some of them will want your business. When you are shopping around, be sure to keep quotes from all of the different companies that you talk to. You can then use these quotes as leverage when you are negotiating with a company. If a certain company wants your business badly enough, it will probably be able to extend a special interest rate offer to you. Each company is in charge of setting its own interest rates, so it can also adjust them if it has a reason to do so.

Consider Collateral

Many businesses search only for typical unsecured credit cards. However, when you are shopping for a credit card, you might also want to consider a secured one. Secured credit cards will require some form of collateral on your part. In return for this collateral, you are going to be able to get a lower interest rate in the majority of cases. Therefore, if a low interest rate is important to you, consider putting up some collateral to obtain it.

4 Reasons to Open a Business Credit Line

10:45 AM Umair

Opening a business credit line can help your business out in a number of different ways. Many businesses stay away from credit lines because they fear a negative impact on their credit scores. However, the benefits usually outweigh any negative consequences when dealing with business credit lines. Here are a few reasons to open a business credit line.

1. Build Your Credit Score

By opening a business credit line, you will be able to successfully build your credit score in the long-term. You want to work with someone that reports payments to the credit bureaus. In order to build your business credit, you are going to have to use it. Credit is one of those things that you are going to lose if you don't use it. When you make a payment, the company is going to note this payment with the credit bureaus. As long as you make your payments on time, this is going to reflect positively on you and your credit score.

2. Free up Cash

In business, one of the most common expressions is that "cash is king." This expression is true and it still applies in today's business world. As a business owner, you want to free up as much cash as you possibly can. If you have to use up all of your cash to pay your monthly bills, this will decrease the amount of flexibility that you have as a business. When times get tough, it is helpful to have a large amount of cash reserves on hand. This will prevent you from having to seek out financing from a lender when times get tough. As long as you have cash on hand, you can act independently and your business strategy will not be negatively affected by outside influences. When you are strapped for cash, you may not be able to act freely and make normal business decisions.









3. Convenience

Using a business credit line is also very convenient for you as a business. Whenever you want to purchase supplies or equipment, you can simply charge it on your business credit line. This will be easy and effortless on your part. The company will then send you a bill in a few days and you will be able to pay it at your convenience. This is going to save you time and it will allow you to pay your bills on your schedule. In business, you have to make decisions around cash flow considerations. You may not always have the cash on hand when you need to purchase something. However, you might be receiving some payments in a few days. By using a business credit line, you will be able to make payments on your schedule which will be much more convenient for you overall as a business owner.

4. Relationships

Opening a business credit line can also help you build relationships with other businesses. When you are working closely with another business with a credit line, you will be able to build up your business relationship. This can be beneficial throughout the life of your business and when you need help.

Business Credit Card Requirements for Limited Liability Corporations

10:43 AM Umair

When you first form a Limited Liability Corporation (LLC), you will receive multiple offers for a business credit card. It is important to realize that these cards are often tied to your personal credit or your individual credit score, and they are not truly sources of business credit. To get an actual business credit card, you will need to apply under the name of your new LLC.

Building Business Credit

Once you are legally incorporated as an LLC, you can begin opening bank accounts. If your business has capital from investors or if you have personal capital, begin by purchasing assets in the name of the business. You will have to start small in order to build a record of transactions for your new company. Building account balances and assets is a good way to start. An LLC is capable of holding assets in its name, and this method should be used in order to get a credit card.










Getting a Business Credit Card for an LLC

Once your business has a financial identity, you can apply for a credit card. Often, it is easiest to apply with the bank where your business accounts are currently held. The credit line you can secure will depend on those assets in the business's name and the business's own record of financial success.

How to Identify Small Business Credit Card Scams

10:40 AM Umair

When dealing with small business credit cards, there is a chance that you could run into some scams. Avoiding scams is an important part of the process of having a small business credit card. Here are a few tips on how to identify small business credit card scams.

Better Business Bureau

Before you ever do business with a company that asks for your credit card info, make sure that you check them out on the Better Business Bureau. If they are a legitimate come in a, they will have a profile on the Better Business Bureau website. You can check out there track record and see if they are legit.










Watch E-Mails

Many times, scam artists will send e-mails that look like they are from a legitimate source. If you receive an e-mail that asks anything about your credit card information, you should definitely not give it to them. Legitimate companies are not going to try to get your credit card number through an e-mail.

Opt Out

If you regularly receive credit card offers in the mail, you should opt out of further offers. You can contact the Direct Marketing Association to opt out of many promotions. Scammers can open a credit card in your name if they have a promotional piece of mail from a credit card company.

5 Tips to Get a Perfect Credit Score

10:36 AM Umair

Getting a perfect credit score is something that could potentially save you a lot of money on interest charges. If you want to go after a perfect credit score, there are a number of steps that you will need to complete. Here are some tips to getting a perfect credit score.

1. Don't Be Afraid of Credit

Many people mistakenly believe that they should not utilize credit if they want to have a good credit score. In fact, the opposite is true. You are going to have to use some type of credit if you want to boost your credit score. This is one of those things that you have to use or you are going to lose.

2. Use it Cautiously

Although you need to use your credit, you need to use it sparingly. Be careful with how you use your credit and do not let your debt get out of control. One of the big problems that people run into is accumulating large credit card balances. If you want to get a perfect credit score, you are going to need to make small regular purchases with your credit accounts. Make a small purchase and then pay off your balance each month. You do not ever want to exceed more than 30 percent of your credit limit. If you get in the habit of maxing out your credit card, lenders are going to think that you do not know how to handle your money very well.















3. Do Not Apply Often

You want to try to have a nice mix of credit. Having different types of credit such as a mortgage, auto loan, and a credit card can be helpful. However, you do not want to apply for credit too often. You want to limit the amount of time that you apply for credit cards and other types of credit accounts. Those that have the highest credit scores do not regularly apply for credit. You do not want to carry around five or six credit cards at one-time. Get one or two of the best credit cards and use them for your transactions.

4. Never Miss a Payment

If you want to get a perfect credit score, you are going to have to have a perfect payment history. Payment history is one of the most important factors that credit bureaus look at when determining your credit score. You need to make your payments for every type of account that you have. If you miss a payment, your creditor is going to reported to the credit bureaus and it will negatively impact your credit score.

5. Credit Monitoring

Another step that you should take if you want perfect credit is to employ the services of a credit monitoring company. There are many different credit monitoring services out there that can watch your credit report for you. They will alert you if any credit accounts are opened in your name or if identity theft is suspected.

Do You Need Credit Cards After Bankruptcy?

3:37 AM Umair

Whilst a bankruptcy discharge may leave you debt free or in a renewed and healthy financial state, it will also remain on your credit rating prepared 7 to 10 years depending on the type of bankruptcy you have file under. Consequently, your credit rating will be ruined.

Therefore, once your bankruptcy has been discharged you need to focus on rebuilding your credit score. The best way to do this, to prove to the bureaux that you can manage your money sensibly, is to obtain a credit card, use it, but make sure that you pay the balance every month.

This may seem somewhat ironic given the fact that it may well be that it was card debt that got you into trouble in the first place. You may even feel that you never want to have a card again. This is a perfectly natural reaction, and a sensible one, but credit cards, when used correctly, can be incredibly useful for unforeseen emergencies.

True, if you have had a bankruptcy discharge then you may find it difficult to obtain a credit card, particularly in the wake of the recent economic crisis and the resultant reluctance of banks to lend money to anyone they consider the remotest risk.













The 2005 Bankruptcy Abuse and Consumer Protection Act has reduced the risk to lenders by extending the period of time allowed between filings of bankruptcy, which means that someone who, for example, has just received a discharge in a chapter 7 case, cannot then file for bankruptcy again until eight years have passed, and in the case of a chapter 13 bankruptcy, six years.

In addition, some states have no usury law, which means test credit card companies are free to charge higher rates of interest, and will do so to those with dubious credit histories.

The bottom line here is that as a discharged bankrupt, whichever route you go as regards credit, you will almost certainly be faced with a higher than average rate of interest.

Despite this, or more likely because of this, you need to decide before accepting any new credit card that you are going to pay the balance off in full at the due date, and therefore your new card is not to be seen as a source of replacement cash.

Another thing to bear in mind when applying for a credit card is that having an application for a card turned down reflect negatively on your credit rating.

Therefore you need to do some homework. Rather than apply for a card, the best thing to do is to compile a list of reputable card companies and then contact them directly to ask them what their policy is on issuing cards to discharged bankrupts. You can also ask them directly as to whether they would be likely to grant you a card, but make sure that you are talking "off the record" and not as a formal application. That way you minimise the risk to your credit score.

If you experience difficulty in finding a credit card company that will accept you, or if you truly don't want to have a credit card at this stage in your financial rehabilitation, an alternative is to apply for what is called a "secured" credit card. With a secured credit card the credit card issuer takes a sum of money which is held in a deposit account and is equal to the limit on your card. This act as a guarantee to the card issuer that you will never be able to run up more credit than you can afford to pay.

You may feel therefore that there is little point in having a secured card when you might just as well used cash, after all you can only use the card to the same value as the amount of cash you deposited with card issuer.

However, the credit bureaus, (those who calculate your credit rating) do not see you spending cash. They do, however, see your spending on a secured credit card, and even though the card is secured against your deposit, using the card and paying the balance off in full every month will help to restore your credit rating.