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If you run your own business--whether it's a retail store, direct sales, hobby shop, or freelance consulting--chances are you've thought about getting a business credit card. It's probably a good idea since it makes it easy for you to separate your business expenses from your home expenses, a task that helps keep your paperwork organized and simplifies things at tax time. When you're ready to apply for a business card, follow this checklist: 1. Choose a card Some cards offer small business owners special deals, financing, or rewards. For example, some rebate cards offer you a percentage back on everything you buy at a certain store, like a warehouse store or online store. Other cards offer cash rebates when you spend at supermarkets, gas stations, or home improvement stores. A frequent flier or travel rewards card might get you the best and biggest bonuses if you travel often. Choosing the right reward card--depending on the type of business you operate and the expenses you incur--can mean extra money in your pocket all year long. 2. Gather up paperwork You'll need basic information about your company's financial situation, including the name of your business, the tax identification number, the business address, the number of years you've been an owner, the number of employees, the nature of the business, the business' average annual income, and the amount in the business' checking account. You'll also need to know the legal entity of your business, such as whether it's a sole proprietorship, a corporation, a partnership, a non-profit, etc. 3. Fill out the application You can find applications for almost all business credit cards online, although in most cases, you can also call and apply over the phone (a good idea if you have any questions). Depending on your credit rating, you may have to provide extra documentation of your business's current financial status, so be prepared to mail or fax information if requested. After filling out the application, approval can take anywhere from thirty seconds to a month. To find business credit cards online, do an Internet search or check the websites of major credit card companies.

There are three credit bureaus, and you need to know about them if you are concerned about your credit report. Three major credit bureaus have information on you regarding your credit history. Anyone that has ever applied for a loan or credit of any kind has a file at one of the three major credit bureaus. Since merchants usually report to only one of the three major credit bureaus, you may have to request a free report from all three to get an overall look at your credit report. To request a free credit report from either or all of the three major credit bureaus, all you have to do is request a free report online. You can also send the request by mail, and you have to provide all your personal information. Some sites will charge you for a credit report from one of the three major credit bureaus, but you must know that you are entitled to one free credit report a year by law. You should contact the credit bureau directly to get your free report. When you receive your credit report from the three major credit bureaus, you need to pay particular attention to certain sections of this report. The first section details your name and address, and you should check this to make sure it is correct. If there are any inaccuracies in this section, you need to contact the credit bureau that sent the report with the correct information. The following section will give details of your current bills. Each of the three major credit bureaus may contain the same information, or one of the three may have different information regarding your credit history depending on which merchants report to that credit bureau. You should also note that you might have an excellent credit record with two of the three major credit bureaus and a poor rating with the other. Check the listing of your bills, the amount of the payment, and the due date. If you have been late with a payment or missed one altogether, this will show up on the credit report you receive from the three major credit bureaus. You also need to check to see who has been inquiring about your credit history to ensure that no unauthorized person or company has been making inquiries without your permission. When you see that everything is as it should be, you know that your information is safe with the three major credit bureaus. If there are any inaccuracies in the debt information, you will need to contact the credit bureau to start taking the necessary steps to correct it.

This article describes the truths and traps of a 0 APR credit card. If you are struggling with ever-increasing credit card debt, a 0 APR credit card could be the magic wand for you. There are a number of 0 APR credit cards in the marketplace. These 0 Interest credit cards offer cardholders zero percent on new purchases and certain 0 APR credit card offers also allow balance transfers, lowering the interest burden even further. The Truth About 0 APR Credit Cards Popular credit card lenders offer these types of 0 APR credit cards, including American Express, Citibank, Chase, HSBC, and Discover. These cards have many benefits to offer if you have a good to excellent credit rating. Remember that the zero percent offered with these cards is not permanent. It is an introductory rate and is typically offered for ninety days to 12 months. Cardholders will have to pay a higher ongoing interest rate at the end of the interest-free or zero percent periods. Generally, these rates could vary between 10 % - 14% and sometimes can be as high as 24%. A 0 APR credit card is ideal for purchasing something expensive but cannot find another way to finance it. There will be no interest charges for the in, and you will have the introductory buffer period to pay off the expense. But buyer beware… make sure you can pay the purchase off before the introductory APR expires. Most 0 Interest credit cards allow balance transfers from your existing higher interest cards, and many will waive the transfer fees. This is one of the best methods to pay off debts faster, leading to substantial savings on the interest charges incurred. It is possible that a single credit card can have multiple APRs, including the following: 1) One APR for balance transfers, one for purchases, and one for cash advances – the APR would usually be higher for cash advances than balance transfers and purchases. 2) Tiered APRs – Different APR levels can be assigned for different account balance levels or tiers, e.g., 15% for balances between $1 - $500 and 17% for balances higher than $500, etc. 3) Introductory APR – 0 APR as the introductory offer and a higher rate upon expiration of the introductory period. 4) Penalty APR – A penalty APR rate may apply if you are late with your payments. The Traps to Watch Out For: A 0 APR credit card is an attractive proposition and often too tempting to resist. However, it is essential to be informed about the often-untold catches in these lucrative offers. 1. The 0 APR is a Limited Time Offer – In general, the 0 APR offered is only for a limited period. The period could vary from 3 months to 12 months. This implies that purchases made during this period will not attract any interest. You need to be cautious about the expiry period and remember to pay off before the period ends in order to avoid hefty interest charges. 2. Once the introductory period is over, the 0 APR credit card may have a ridiculously high-interest rate of 20% or higher. 3. On-Time Payment – Most of these 0 Interest credit cards require you to pay the minimum payment on time every month during the introductory period. Late payments will result in penalties that include shifting the remaining balance to a much higher APR. 4. Complete Payment – Certain 0 APR cards require you to pay off the balance entirely before the expiration period of the introductory offer. If not, the high-interest default rate could be applied to the entire balance. Ensure that you understand these credit card terms clearly. 5. Applicability of the 0 APR – Most of the 0 Interest cards offer the 0 APR on new purchases and balance transfers in the introductory period. However, some cards only offer 0 APR on balance transfers with higher applicable APRs on new purchases. 6. Other Fees – Some credit card companies compensate the 0 APR by charging high annual fees or transfer fees on balance transfers. 7. Cap on Balance Transfer – Certain cards may have a cap or limit on the balance transfer amount. This means that the 0 APR will apply only for the amount within the cap limit, and anything more will be charged the default higher APR. While it may be an attractive offer to go for 0 APR credit cards, it may not be a wise decision in certain scenarios. So, before you seriously consider a 0 APR credit card, it is essential to compute credit balances, interest rates, and your pay-off capability. Read the terms and conditions carefully to avoid credit traps. Understanding the fine print could have substantial savings apart from a trouble-free credit rating.

Amazingly enough, someone's life can be drastically affected by three numbers. Here's a crash course on what they are and what consequences they can bring. You sit down to look at your credit report for the first time. If your scores are above 720, congratulations! You have excellent credit; stop worrying. If your scores are not above 700, no problem—let’s get to work. Take solace that the national average score is around 676, according to the Gallup Organization. If your scores are below 400, 500, or 600, there’s definitely room for improvement and only one way to go—up! If the numbers I’ve mentioned don’t make any sense to you or you have no idea what they mean, don’t fret—I’ll explain. Credit scores range from 350 to 850. All three of the credit bureaus—Equifax, Experian, and Transunion—offer FICO credit scores using a complex mathematical formula developed by Fair, Isaac, and Company, but they each give the scores a different name: At Equifax, the FICO is known as the Beacon credit score; at TransUnion, it’s called Empirica; and at Experian, it’s called the Experian/Fair, Isaac Risk Model. If your credit scores are above 720, you have excellent credit and will able to get the best interest rates available. As your credit scores drop, the interest rate you’ll receive for a home loan will rise: this is known as tiered pricing. The more of a risk the lender takes on you, the higher your interest rate will be. In addition, all lenders have their own breakpoints between tiers. This means that one lender may raise the interest rate if a score drops below 700, while another lender won’t give a higher rate until the score drops below 690. In summation, you should do everything in your power to maintain good credit scores and be sure to shop around and do your homework when looking for a home loan because all lenders are not created equal. I think you’ve already gleaned the moral of the article, but just in case you haven’t, here it is: Good credit scores save lots and lots of money, and be sure to choose a lender wisely to get the best rate for your scores.

Can you repair your credit without paying? There are many no-cost things you can do. The truth is that you don’t have to hire an expensive credit counseling firm. Technically you can do anything they do. That's not to say there aren't certain instances that they are helpful, and there are. But you can realistically raise your score and even wholly fix your credit without paying a dime. What are the best methods? Here are three you can implement immediately: #1) Pay on time There’s nothing new in this. Most people want there to be a faster way, but this is one of the quickest methods. Your bad credit is just a result of your history, and the only way to change that is to build a new history. How do you pay on time? Cut down on your expenses if you have to. And just pay a little at a time. The most important thing is that you stay on top of your monthly payments. Some people make the mistake of missing a payment here or there to try and pay the grand total off their debt. This might seem smart, but in reality, it only hurts their credit score. Instead, don’t miss payments, and when you can, pay a little extra. #2) File a dispute To do this, you have to figure out if there are mistakes in your report. Most people don’t check their credit score nearly as much as they should. Don’t make this mistake. Missing an error on your report could cost you that loan or mortgage you’ve been wanting. So how do you file? Avoid using the forms provided by the bureaus. Instead, follow a sample letter online, and they tend to be much more effective. Just be sure to specify which specific parts of the report you have issues with. Being vague will just drag things out. Should you have someone else file the dispute for you? No, because it will not be taken seriously. Some people pay others to do this for them, but it’s ineffective and a waste of time and money. #3) Apply for a new credit card If you don’t already have one, you need to get one to build up your score again. Many will advise you to just pay cash to avoid getting in debt again. This is a mistake if you’re looking for long-term credit. If you ever want to get a reasonable interest rate again, the only way is to raise your score proactively. But how do you avoid going back into debt? One very important tip is to never go over half of the total credit you can use. For instance, if you have a two thousand dollar limit on your credit card, stay at or below one grand. This is a simple way of staying on top of these things and not letting your debt get out of control. And attempt to always pay off your entire bill, not just the minimum. Credit cards have very high-interest rates that are compounded all the time. If you just make the minimum payments, your total debt will rise quickly. The most important thing is that you don’t make the same mistakes again. As long as you learn from your past failures, you will raise your score quickly and effectively.

Most people never consider their rights in the process of credit repair because they think they don’t have any. But you do. And knowing them is important. What if your creditors are trying to scare you into paying them? What if you need to file a dispute with your credit report? Or how about if a credit counseling company has scammed you? In all these instances, knowing what you are entitled to is critical. #1) Scare tactics If you are being harassed by those you owe money to, you will be relieved to hear this isn’t legal. There is a specific procedure creditors have to follow when getting in touch with you. But most people don’t know what it is, so they just put up with the barrage of phone calls, letters, etc. And in many instances, creditors lie to get you to pay them. How can you tell if it’s a lie? If they say they will call the company you work for, rest assured they are not telling the truth. This is against the law, and you should notify the authorities. Sometimes they will tell you they will take your income. Again, this is illegal unless they’ve been told that they can do so by a court - In which case you would have plenty of advanced warning. And obviously, they can’t touch your checking or savings account, and all these are common threats that are not legal. #2) Credit score You are legally entitled to get a no-cost copy of the report each year. You can do so from all of the major bureaus, and this helps you verify that there are no mistakes on any of them. But isn’t one enough? No, it’s not. Remember, the bureaus all get their information from different companies because very few of the merchants you work with report to them. Therefore, even if one of the reports is mistake-free, another one might not be. What if you find an error? Then you have a legal right to see that it’s fixed. And the bureaus have a legal obligation to check with the company you have an issue with and let you know in thirty days of their decision. If you aren’t proactive, the mistakes on your report will never get fixed. #3) Credit counseling scams This is a very widespread problem. Many “credit counseling” firms are nothing more than scammers that take your money. Is there anything you can do if you’ve been taken? Yes, there is. If the company told you to file disputes with things on your credit report you know are correct, this is illegal. You get your money back because they advised you to do something illegal. And if they don’t fulfill the service you agreed to when you first paid them, they are lawfully required to do so. If they haven’t, you again have legal recourse against them. How do you know your rights when dealing with a scammer? Just study up on the Credit Repair Organization Act. This is a comprehensive guide to all your rights in this situation. The bottom line: don’t allow yourself to be taken. Even if you owe others money, you have more rights than you think. While this article can’t give you every single one of them, hopefully, it’s opened your eyes to the legal courses of action you can take if you’ve been wronged in any of these three ways.

MISTAKE #1) Not taking any action This is the worst thing of all. Many people just keep putting it off until it’s too late. Most of the things that hurt your score will remain there for seven years. Think about all the loans and mortgages you won’t be able to get. In other words, you need to take action. Doing something is better than not doing anything at all. MISTAKE #2) Not paying your bills on time This is one of the biggest reasons people have bad credit. And some opt not to even if they can, in order to reduce their overall debt. It’s no secret that getting rid of debt is critical. But remember that late payments will have a negative effect on your report for a long time, which is even more important. Only worry about your overall debt when your monthly expenditures are taken care of. MISTAKE #3) Having multiple credit cards Many people do this to “establish credit.” This is probably not a good strategy. Applying for too many cards will negatively impact your score and make it more difficult for you to pay on time. Think about it: having five different payments is much harder to keep track of than one. And the higher your credit line is, the more likely you will spend money on things you can’t afford. Therefore, you will dig yourself into a further hole. MISTAKE #4) Avoid shutting down each of your accounts at the same time You might think you should get rid of all your cards to help your credit. But keep at least one open. If you shut down each of your accounts while you still have bad credit, you don’t give yourself the chance to build it back up. MISTAKE #5) Going with dishonest companies There are a lot of scams in the credit repair industry. Many companies claiming to help you raise your score will just take your money and leave you in an even more giant hole. How do you spot the scammers? Any company that claims they can help raise your credit score by disputing everything on your report should be avoided. Many of them will have you believe you can reverse just about anything on your score. This is false. Also, you can easily spot dishonest companies by just reading customer reviews. Check with the BBB as well. These steps will help you easily avoid scams and locate the right company for you.

Are you considering filing for bankruptcy? Before you do, here are some very important things you must know. Don’t make the decision rashly. Make sure you take time to educate yourself about the proceedings. Bankruptcy will impact your credit for ten years down the road, so it’s by no means the “clean beginning” many view it as. And in some instances, you still have to pay off your obligations. Before you decide, you need to determine what possessions you will be allowed to retain, which ones will be liquidated, etc. In some instances, you might even lose your job, and you need to factor all this in. What chapter will you file for? This is the first thing to think about, and it makes a big difference. Should you be earning higher than the average income of a comparable family in your state, you won’t be allowed to go for chapter seven. This is where your debts are completely wiped out and is the one most people would prefer. Your only choice would be to go for chapter thirteen, which is a repayment plan, mainly because you have the income to make it work. In this case, you are given a trustee who determines which of your things must be liquidated in order to cover your obligations. In most instances, you can retain your residence, but some areas will take this as well. But you might not have to file. First, you need to think over your money situation long and hard. There are options and think about whether you have sufficient cash flow. Suppose you can only make the lowest payment possible and constantly use your credit card because you don’t have money available. In that case, bankruptcy may be something to consider since you will run out of credit line sooner or later. If things are still relatively manageable, here are there effective alternatives to bankruptcy: #1) Track your spending Take a long and hard look at your spending habits. This shows you the primary places your money is disappearing, which will help you figure out where you need to get it under control. #2) Get credit counseling. This sometimes helps you lower your obligations. But these companies will only work with you if you have a certain level of income. #3) Get a debt consolidation loan In many instances, getting a secured loan against your home is smart because this will give you the cash flow you need to pay down your credit cards. The risk, of course, is that your home will be repossessed if you can’t make your payments. But if you’re sure you can make the repayments and are committed to it, this may be a smart option to consider. The bottom line is bankruptcy should be your last resort. Make sure you have no other avenues available. Only then should you file.

Should you file for bankruptcy or not? This is a decision many are wrestling with. The truth is, you probably have more options than you realize. Here are six of the best: #1) Negotiate Initially, you should call up the companies you owe money to and attempt to arrange an alternative payment plan. In many instances, they will be willing to work with you. #2) Hire a credit counselor This is more effective than the first option unless you are a master negotiator. Sure it’s more expensive, but it’s usually much more effective. And in most instances, your creditors are more willing to work with a legitimate company than an individual. What will they do for you? They help work out a more favorable repayment plan. Sometimes these firms will only deal with unsecured obligations. What’s a “more favorable plan?" They generally attempt to do either one of three things: get the grand total reduced, get better interest rates, or lengthen the amount of time you can pay it back by. All of these will make the payments easier to deal with. How do the counselors determine who they will work with? They will want to know how much money you make, and they have to know this to figure out if you can pay off your debts with the new terms. So if they decide not to work with you, do you have to file bankruptcy? Not necessarily. There are still more options. #3) Get a debt consolidation loan This is where you take out a loan for the amount of your home’s value in order to reduce your debt. Obviously, you stand to lose your house if you can’t pay your debt. Therefore you need to think long and hard about this. It is worth speaking to a certified professional before making such a big decision. For some, having a monthly loan payment is much more manageable than credit card debt. This is because the interest is applied all at the beginning, so it doesn’t keep accruing. #4) Lower your expenses This is the simplest and easiest method. Just take a very close look at where your money is going. Check your credit card for the past month and notice the charges. Cancel any monthly payments from companies you aren’t using. Chances are, there are more than a few in this category. Focus on the big expenses because those are the ones that are making the most difference. #5) Sell nonessential items Think about getting rid of that second car you own. Consider taking out the money in an investment portfolio and using that to pay things off. Sell your TV. All these things can make a big difference. #6) Get a loan from a loved one This is obviously not a good option for everyone, but it may be the right thing to do in some cases.

This article was written to answer many of the most frequently asked questions. I hope you find all of this information helpful. A 3 credit report can be useful for a variety of reasons. There are three major credit reporting agencies: Experian, Equifax, and TransUnion, and each of them have their own information about your credit, so to get a good credit report, you have to use all three. Fortunately, you can get a three-credit report for about $24, and this will tell you all you need to know about your credit rather than wasting time with a so-called free online credit report. Many institutions need to know your three credit reports before they will approve of you, so knowing your credit record can give you a heads up on your chances of receiving all kinds of services. For example, a home loan will not be given if you have a bad credit score, and neither will you qualify for low-cost life insurance, a credit card with a low apr, or sometimes even a lease on a house or car. So knowing your three credit reports can be a shortcut to save you time applying to services you won't receive. Another thing about knowing your three credit report score is that it can show you if someone has been defrauding you or stealing your identity. If, for example, someone has been getting accounts in your name and not telling you or paying them, they will show up on your three credit reports as a bad score. This will let you take appropriate legal action to get them removed from your record and to get the guy who did it by calling the cops. Getting the bad fraud charges off your three credit report score can be a major hassle. Once my mom had serious charges on her three credit reports because someone was filling for a cellphone using her name from Detroit, and the company would not believe it was not her, even though it was a different residence. To get them to believe it, she had to produce several pieces of identity and mail and her home title to show where she was living. They would not believe that the address was what she said it was until she showed them lots of proof—what a hassle! There are many ways you can improve your credit score. One of them is to own credit cards and regularly pay off your payments to show that you are reliable and can be trusted with credit. If you regularly pay off your balance and are on time with gas, phone, electric, and utility bills, this also can help. In the long run, it is worth it for you to keep your credit good because it means you qualify for better interest rates, bigger lines of credit, equity line of credit, home equity line of credit, low apr credit card, and all kinds of other financial benefits that you wouldn't have otherwise. It's easy, and you've got nothing to lose.

There are all kinds of credit repair tips out there. The reality is that if you have bad credit, there are tons of simple solutions. It’s very possible to improve your credit and even completely fix it in a very short time period. How? Here are four most of the most effective strategies: #1) Credit counseling This will not only give you strategies for better money management, but the company will negotiate with the creditors on your behalf as well. In many instances, they can reduce the amount you owe substantially. Since they are very experienced in the industry, they have a much better chance of negotiating better terms for you than if you were to do it yourself. #2) Look for mistakes on your credit report One straightforward and easy method to quickly improve your credit is just scanning your report. Anyone can get a copy of their report for free at least once every 12 months, so it doesn’t cost you a dime. What if you find errors? Then just call up the credit bureau and let them know. They will look into it, and if they verify that indeed they made a mistake, they will erase it from your report. This will instantly improve your credit score. And since mistakes are pretty common, there’s a good chance of this working. And don’t give up. Even if they don’t remove something the first time, keep after them. It might take two to three months, but eventually, you can get that erroneous late payment taken off. #3) Pay on time This is one of the simplest methods to raise your credit. It’s so obvious it might not seem worth mentioning, but it’s one of the most important tips of all. What if you can’t pay on time? Suppose this isn’t possible because you have too much debt; attempt to get a consolidation loan. This might reduce the amount you owe, making it easier for you to pay them. #4) Build up your investments Instead of spending on things you don’t need, start putting a certain percentage of your money away every month for investing. This is easily one of the best methods to repair your credit. But be wary of scams. Remember, many firms go after people with bad credit. They claim they are going to help you raise your score. But often, they just take your money and disappear. How do you spot those companies? If they charge you a huge upfront fee, you know they are dishonest. Also, if they say to dispute everything on your credit report, certainly, they are not legit even if it's right. By implementing these tips, you can improve your overall credit rating one at a time.

One thing a lot of people want to know is how to fight a dispute they have with the credit bureau. This can be a tricky issue. How does the system work? Basically, each of the finance companies you work with reports to either Equifax, Expedia, or TransUnion. But very few report to all three. And because of this, you never know where an error will occur because your report might be flawless with one bureau and not with another. It just depends on which merchant made the mistake. And mistakes happen all the time. More than 50% of people have one or more errors on their report, which could easily affect them when they apply for their next loan, mortgage, or credit card. Don’t the bureaus check for accuracy from time to time? No, they don’t. These glitches will never get repaired unless you do something about them. So how do you file a dispute? Here are the three steps you need to take: #1) Call up the finance company the mistake occurred with Verify with them that you made the payment on time. If they confirm it, you need to file your dispute. But will the credit bureaus even pay attention to you? Yes, because they are required by law to look into every claim filed with them. How long will it take? They have to get in touch with the merchant in five days or less and reach their decision within thirty days. #2) Send the bureau a letter. Tell them exactly which transaction you have an issue with. Don’t be vague. What do you say? There are plenty of dispute letters online you can use for reference. But essentially, you just want to let them know that you found a mistake(s) on your report and detail the mistake. Make sure to include documents that verify your claim, such as cashed checks, etc. This makes it much more likely to be resolved. #3) Send it via certified mail Then write a note somewhere to remind yourself to check in on them after thirty days. What if they exceed this time limit? Then call them up and see what’s going on. After all, you have a legal right to an answer within this time, and you need to hold them to it. The bottom line: you need to be proactive about your credit score. If you aren’t, then you could easily have mistakes that negatively affect you for seven years down the road. And it would be smart to check in with your report every few months to verify everything is still correct. Almost nobody does this, but making this a habit is smart. Just make the date on your calendar three months from now, so you don’t forget.