Credit Card Blog

Starting a small business? It’s harder than ever to get a line of credit from a bank, even if you’ve got a sound business plan and the drive to turn it into reality. If you’ve been turned down by a loan officer, don’t give up. Instead, look into a small business credit card to fund your enterprise.

Small business credit cards are easier to obtain than traditional loans. They can make the difference between a dream that comes to fruition and one that stays on paper. They can also, if used unwisely, cause a struggling business to fold entirely.

The problem with small business credit cards lies with the interest rates. They are typically much higher than bank loan interest rates. Also, they can increase with little warning for infractions as minor as being one day late on a payment. Some small business card holders have complained that their interest rates went through the roof as their total debt increased, in spite of their stellar credit scores. Others insist that their so-called late payments were nothing more than a fabricated excuse to raise rates.

If you opt to fund your small business with a credit card, go with a card company you trust. Always check the agreement for misleading or unclear terms. Also be aware that initial terms might be great, but might change quickly. And the upcoming credit card industry reforms do not apply to business cards, so lightning-fast rate hikes might plague small business owners much longer than the average card holder.

Small business credit cards could be an entrepreneur’s salvation, or they could be a minefield waiting to explode. Proceed with caution.

It seems that gas prices are fluctuating at the drop of a hat lately. Hurricane Ike is already causing prices to rise due to panicked rumors of impending gasoline shortages. If you’re a frequent road traveler who could use a few extra dollars – and who couldn’t? – it might be worth your time to apply for a gas reward credit card.

Gas reward cards offer savings on fuel. 3-5% gas rebates are typical. Rewards vary from card to card, so be sure to read the terms very carefully before you sign up for a gas reward card. Also be aware that you won’t realize such generous rewards on non-gasoline purchases.

Which gas reward cards are the best? Top accolades have gone to Chase BP Visa; Chase PerfectCard MasterCard; Discover’s Open Road; and Hess Platinum Visa. Like other cards of its kind, the BP Visa doesn’t offer rebates for purchases made at non-BP stations. If you stick with BP, though, the rewards are nice: 5% rebates on gasoline, 2% rebates on dining and travel, and double rebates for the first two months.

Want a gas rebate credit card of your own? Compare card rates here.

If your credit card deal seems a little mediocre, that’s probably because it is. The credit crisis has sent interest rates higher while lines of credit decrease or diminish altogether. For those reasons, we often feel lucky that we have credit at all.

But maybe we shouldn’t settle for less than we deserve. Consumer Reports just released a list of their top credit card picks. The cards were judged on their interest rates, fees, and the straightforward verbiage of their printed agreements. Misleading agreements, high rates, and unnecessary fees kept many cards out of the running. There are quite a few noteworthy credit cards as well.

Which cards ranked the highest? Capital One’s Platinum Prestige; the American Express Clear Card; Iberiabank’s Visa Classic; and Simmons First Visa Platinum. According to Consumer Reports: “The annual percentage rates on those cards range from 4 percent to 14.99 percent, with the best rates going to the consumers with the best credit histories. The fees also were reasonable, according to the magazine, and the cards had no big hidden snares.”

Of course, the very best rates are reserved for customers with excellent credit scores. Make sure your three digits are up to par, and you’ll have a better chance of landing a great credit deal.

An increasing number of airline frequent flier mile programs are becoming more complex and less rewarding.  For instance, changes to Delta’s frequent flier program, SkyMiles, has resulted in an increase in fees charged for various situations and generally making it harder to redeem your miles for free flights.  For example, Delta charges:

• $25 for domestic flight redemption as a “fuel charge” and $50 fuel charges when redeeming your rewards on international flights
• Fees ranging between $50 and $150 for booking within 21 days of desired flight date
• An additional $25 fee if you have to fly any part of your trip on another airline for any reason
• Miles expire sooner

Delta isn’t the only one making it a little harder to use earned rewards.  Citi and the ThankYou points network has made some changes to their rewards program, as well, including:

• a new fixed flight or variable flight option for redemption.  Fixed flight option requires a set number of miles to redeem for flights, but requires a Saturday night stay in a hotel and booking the flight at least 14 days in advance, while the variable flight option requires more points for the same flights, but does not require the Saturday night stay or booking 14 days in advance. 
• Variable flight options through the ThankYou Network are actually run through Expedia.com

It may be easier to use credit cards with rewards redeemable for flights rather than stick with a certain airline’s program.  Capital One offers the No Hassle Miles Rewards card that lets you earn points redeemable for flights on any airline.

College is a time of new independence for most young adults – and also the time when many get their first credit card (or two!)  Citibank offers a number of credit cards geared specifically to the college crowd- including features and benefits that are on the must-have list of college students around the country.

Citi Dividend Platinum Select for College Students

As a general rule, student credit cards are not known for their extra perks.  Citi makes an exception to the rule with the Citi Dividend Platinum Select card.  It’s a cashback card, and enables cardholders to earn 10% back on all purchases that fall within the college expenses category, as well as purchases at supermarkets, gas stations and the drugstore for the first 3 months.  After the first 3 months you’ll earn 2% on these purchases.  Other purchases are still rewarded with 1% cash back. You can earn up to $300 cash back every year.

Because you don’t need a co-signer to qualify for Citi Dividend Platinum, you know that paying your card on time can help establish a good credit history which will benefit you financially when you graduate from college and are ready to make some of your biggest purchases – new vehicles or maybe a mortgage!

Citi MTVU Platinum Select Visa for Students

One of the only credit cards to rewards students for strong academic scores, you can earn up to 75,000 points per year through Thank You Points, with 2,000 points being added for a good GPA two times each year.

As you use your Citi MTVU Platinum Select Visa, you’ll earn points that are redeemable through the Thank You Point network, for merchandise and gift cards.  For the first 3 months you’ll earn 10 points for every dollar you spend at many stores the entertainment items that are essential for college life, including books, music, fast food, and movies.  After the first 3 months, you’ll earn 5 points for these purchases. Using this card can give you a holiday shopping budget- just redeem your points to buy your gifts!

Do you have a college kid in your family? If so, it’s a good idea to sit them down and have The Talk. No, not THAT talk; I mean the talk about credit cards and why a free iPod shouldn’t entice them into signing up for one.

Credit cards are great for building up credit scores, but an unprepared student card holder can tear down their score just as easily. After student loans, credit cards are the leading cause of student debt after graduation. Credit cards can be useful for college students in case of emergencies, or for those informed students who want to get a jump on building up their credit and buying power. But a student shouldn’t be pressured into applying for a card they can’t really afford – no matter how many pizzas or t-shirts come with the deal.

Before your kid packs up and moves off to college, talk to them about credit card offers. They need to be prepared for the sheer number of offers they’ll receive, and they need to be able to differentiate between a good offer (low interest, reasonable credit limits, etc.) and a flashy one designed to distract their attention from sub-par terms and conditions.

As of the end of July, there were only a small handful of major airlines that didn’t accept credit cards for on-board purchases. Now one of them has seen the light! On September 9th, Southwest Airlines will be taking plastic. Passengers won’t have to dig out their dollar bills any longer. They’ll be able to buy their energy drinks and cocktails with credit cards.

Southwest Airlines has joined the movement toward cashless air travel. The company recently posted an announcement on its web site, urging passengers to relax and keep their cash. According to the announcement, Southwest will still provide freebies like soft drinks and snacks. For premium purchases such as beer and wine, a single swipe of the passenger’s credit card will suffice. In fact, it’s required. The airline will no longer accept cash for these onboard purchases, but they will take debit cards and drink coupons in addition to all major credit cards.

Now, if we could just convince Northwest and United Airlines to follow suit…

When TransUnion was caught selling customer profiles to third parties, a class action suit was filed and the consumers won.  For the next six months, you can get a free copy of your credit score and credit report for free – as often as you would like.

By law, consumers are already entitled to one free credit report per each of the three credit reporting agencies (Transunion, Equifax and Experian) every twelve months – but the law does not require that the reports include your numerical credit score.  Disappointing, since most creditors rely on the credit score itself to determine whether or not they want to extend credit to you.

To get your free credit score and credit report through TransUnion, visit listclassaction.com and register for the service.