Don’t Get Caught with Unexpected Business Credit Card Fees

Thanks to the folks at FireFinance, here is some information you’ll want to keep in mind if you’re the holder of a business credit card. Quite frequently credit card companies charge fees that they don’t make a big deal out of telling us when we open the account. So pay close attention to this or you might end up with some hefty charges that take you by surprise.

The worst offender is the “over the credit limit fee”, which can run as high as $40. Sadly, a credit card company will not make an effort to stop us from going over the limit. Once we reach the limit, they’ll allow more transaction on the card and they whack us with the fee. It’s no wonder FireFinance calls it sneaky.

The other thing that happens is that going online to view your recent transactions and get a tally of your activities does not always work either, because the credit card company does not update your file immediately. You may experience a delay through email alerts you set up for yourself, and even calling your business credit card company directly can result in delayed information.

The best thing to do is keep track of what you are spending with a tracking system or possibly get more than one business card for different types of expenses. The bottom line is, be take responsibility for your spending habits and don’t rely on your business credit card company to do it for you. They would rather have the additional money in fees.

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Is This $62K Credit Line for Real?

Some lucky small business owners have been getting this in their inboxes….

“July 1st is usually a bad time for business for small business owners. With half of the year behind you and the 4th on the horizon you are probably looking forward to the family being in town, an extended weekend and everyone wants to be outside and enjoy the weather. We know this and in order to help you acheive those goals the price has been reduced and the directions have been enhanced.

According to our notes you have not yet purchased the $62k Commercial Credit Line list which you were approved for.

Some time ago you had applied for a business loan. You were denied back then, however now we have commercial credit line lenders that are extending lines of credit to you. Only 1 out of 6 applicants receive this product, you should take advantage of this right away. The sooner you purchase the list the quicker you will have your financing.

We have taken our mentoring and coaching that we do and put it in a PDF document. You can now work at your own pace, whenever you get a free moment to think clearly.”

There is an investment involved of course, but the ROI as far as lines of credit and business credit cards is more than 62 times what you have to pay up front. This is a solution for business owners that have been struggling to get credit.

 

Retail Store Business Credit Cards

Retail Store Business Credit Card

As a small business owner starting out, you may not be aware that getting a business credit card through a retail store where you shop for supplies you need to run your business can help you build your Paydex score.  But here’s the catch – you need to set it up under your business name with total separation from your personal name. You also need to be registered with Dun & Bradstreet and have a DUNS number. If you don’t know how to do this, get some professional advice, because you will drastically interfere with building your business credit if you make even a single mistake.

A professional business credit mentor will also be able to furnish you with a list of stores where you can obtain a total of several thousand dollars in credit that you need to start or expand your business.

There are other advantages offered by a retail store for business credit card holders. Some examples are:

• You will earn a 5% rebate on in-store net purchases and a 1% rebate on all other net purchases.
• There is no maximum number of rebates that you can accumulate in the program.
• All rebates will be summarized on your monthly billing statement.
• The rebate total from the previous month will automatically be applied as a statement credit in the next billing statement containing the in-store purchase.
• A 0% fixed APR for the first 6 billing cycles following the opening of your account.
  Balance Transfer APR: A 0% fixed APR for the first 6 billing cycles following the opening of your account.
• Cash Advance APR: 20.99% variable.
• Grace period for repayment of purchase balances – at least 20 days.
• Annual fee – none

 

Useful Tools to Help Your Business

Here’s an example of some of the nifty features available for business credit card holders. Visa offers a system that allows you to “manage your expenses and improve your cash flow”.

Reporting Tools. This report allows you to see the total spending details for each registered credit card you have by calendar month within 8 merchant categories. It also provides summaries for each card and an overall company summary. There are 5 flexible types of reports available. Visa will send you spending alerts and customer reminders via email or through your online account.

Pay Bills. You cans use your Visa business credit card to pay bills instantly and avoid the hassle of writing checks, paying check fees and using stamps and envelopes. Most businesses accept Visa payments, including utility companies. Your payments will be listed in your monthly statement. If you are enrolled in a rewards program, it will get you points even faster.

Pay Taxes.  Although you will have to verify with your local tax authority for your particular state, most federal and state taxes can be paid using your business credit card. The taxes you can pay include corporate income taxes, federal and state business income taxes, payroll/unemployment taxes, state sales and use taxes, state taxes based on retail sales of taxable personal property,  state franchise or corporate taxes, and taxes imposed on businesses at the business entity level. Certain IRS-approved service providers will give you a discount for using your business credit card. The fee is tax deductible, and again, you can build up your rewards points by paying your taxes with your card.

Choose the Best Features

With all of the options out there, choosing a business credit card can be confusing. It is important to consider the features when choosing a card. Choosing a credit card without picking the best benefits can hinder a businesses financial performance.

If there is no problem paying off credit cards each month, it could be a good idea to choose a card that offers cash back or reward points. The folks at Creditor Web advise us to be really disciplined if we are using credit ards to fund a business start up. If this credit card is used often, why not immediately see some benefits each month? Choosing a travel reward credit card could enhance business travel in a major way.

Many credit card companies are offering individualized tracking of expenditures. This is a great aid in eliminating the confusion over what was spent, who spent it, and what was purchased with it. This is fantastic at tax time and a great way to know where exactly business funds are going.

It is wise, of course, when choosing a business credit card, to get the APR at the lowest rate possible to avoid additional charges. This is an exciting way to help organize business finances.