Archive for July, 2010

Jul02

Credit Cards: Your Best Bet for a Personal Loan

Credit Card Debt

Personal loans are often a convenient means for getting fast cash for a variety of expenses and purchases. A personal loan can best be described as any unsecured loan that does not have collateral attached to it. Because of this, personal loans often come with higher APRs than other types of loans, like automobile or home loans, for example.

Although you can expect a personal loan to have a higher APR than a secured loan, you still can find plenty of good rates. To get a personal loan, you must first consider where to look. Although you can certainly head to your bank for a personal loan, many individuals are instead turning to their credit cards for personal loans.

The Convenience of Credit Card Personal Loans

Personal loans through your credit card are often rather convenient, as they are typically easy to get because you are already an established customer. Unlike traditional credit card purchases, a credit card personal loan will provide you with a set period of repayment and set repayment terms.

You may also want to use a credit card for a personal loan for a number of reasons, such as a vehicle purchase, a vacation or home improvements. Personal loans, because they are unsecured, can be used for nearly anything at all, including debt consolidation and college expenses, just to name a few.

Learning about your Personal Loan Options

If you need a personal loan, consider contacting your current credit card company and asking them about their personal loan options. If they don’t have personal loans available, you may want to consider using one of the convenience checks that often come with your credit card bill. Convenience checks are, in fact, quite convenient because they allow you to write the check for whatever you desire; you may even want to write the check to yourself and deposit it into your bank account so that available cash to meet your financial needs.

If you have high interest rate debts to pay off or you simply want to finally finish the backyard deck you’ve been dreaming of, consider the many advantages of taking out a personal loan through your credit card.


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Jul01

Is a Business Credit Card Right for you?

Choosing Credit Card

Most small business owners agree that having access to credit is essential for the smooth operation of their business. Credit cards can play a very important role when it comes to managing a small business, and can provide business owners with the resources necessary to keep the business running when cash is tight.

Small Business Card vs. Consumer Credit Card

However, it is important for business owners to understand that small business credit cards were not included in the credit CARD Act; this means that, as a small business owner, you may not have the protection that has been granted to consumer credit customers.

In other words, you may be personally responsible for any debt incurred through your business, even though it is for business purposes. As such, it may make more sense to simply carry a personal credit card for business purchases that you may not be able to pay back immediately. As a consumer, you will have protection through the CARD Act; as a business owner with a business card you will not.

Some of the protection offered for consumer credit cards under the CARD Act include: the credit card company cannot increase the interest rate on existing balances and cannot activate a penalty APR unless the credit card customer is at least 60 days delinquent. But many of the credit card companies, such as Capital One, JP Morgan Chase and Bank of America, need not adhere to these guidelines when it comes to business credit cards.

Business Credit Card Advantages

With that in mind, there are many advantages to owning a business credit card if you are a small business owner. For example, you can set individual credit limits for key employees and more easily track expenses In addition, business credit cards often come with higher credit limits than consumer credit cards and are much easier to handle when multiple people are using the same account.

In the end, your decision to use either a consumer credit card or a business credit card will depend on your business’ financial needs, so weigh your options


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