Minimum Payment, What is it?

Minimum Payment?

Your minimum payment is the absolute minimum that you must pay off each month to avoid defaulting on the debt. If you don’t pay your minimum, they’ll come after you – but don’t make the mistake of thinking it’s just fine to only ever pay that much.

Why aren't Minimums good?

They never used to be. Minimum payments used to be set at relatively high percentages, anywhere from 5% to 10%. This meant that you paid more, but your debt would get paid back faster.

Credit card lenders realised, though, that they could set the minimum payments lower, and collect a smaller amount of money each month for a much longer period of time. This would let them tell people that debts on their cards were ‘affordable’, while they raked in the cash over the long term, thanks to the power of compound interest.

Source: No Credit Credit Cards

With a credit card you can bail yourself out of jail

Credit cards are one of the most popular modes of payment used today in all merchants and establishments all over the world. But apart from being used in making purchases or paying bills, there is one more purpose the credit cards serve, and that is, to bail one out of jail.

Although this particular function may seem funny and bizarre, it is a fact that credit cards today are now accepted in jails as a payment for one’s bail. In fact, jail bail credit card has been in used since they were first introduced back in August 2007.

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Importance of Business Credit Cards in Society

For businessmen, business credit cards are a great help in separating their personal accounts from their business accounts. It is a convenient way to manage the company and the employee’s business expenditures. It also makes accounting and tax monitoring easier through updated periodical reports of all purchases made.

The stiff competition among banks has given birth to a variety of classes of business credit cards, which can only mean bigger and better choices for customers. Deals are becoming more and more attractive, and clients are given more options and freedom to get the best service they need.

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Credit Score

What is a credit score?

Since 1971, the government has made a provision for all consumers the right to check their financial records for accuracy through the Fair Credit Reporting Act. The credit score is the calculation of all records in your credit history. The Fair Isaac and Company has set a standard criteria in calculating one’s credit score which is also known as the FICO score. This is the system of scoring used by credit bureaus today and is accepted by all banks, lenders and financial institutions.

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Cash Back Credit Cards on your Business

We all know that one of the best benefits of business credit cards is their reward programs. Reward programs are also categorized based on the rewards it provides. There are Frequent Flyer Miles Programs for frequent travelers, Gas Reward Programs for transportations and fuel discounts, and of course, the Cash Back Reward Programs.

Most business credit card holders choose a cash-back reward card because it’s easier to collect points and earn rewards. It also enables them to use their rewards as cash or as an additional funding to the business.

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Christmas Shopping with Your Credit Card

Christmas season is once again here. And as a tradition, gift giving is also just around the corner. Most consumers prefer to use their credit cards when shopping for gifts. They are safer to carry around when shopping and more convenient as well. Nevertheless, credit cards should also be used with care. Consider the following credit card tips for your Christmas shopping and get the most of what your credit cards have to offer:

Take advantage of 0% rate offers. When shopping for a season, it’s best to use a credit card that has a low interest rate or even a zero APR. Most credit cards offer 0% APR from six months to a full year so if your current credit cards don’t give you that flexibility, it’s smart to get a credit card with a low interest advantage.

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Facts about Business Credit Cards

Do you own a business? Or still in the planning stage to start-up your own? Then a business credit card may just be the thing for you. A business credit card is the modified version of your personal credit card and a lot more.

The Benefits Of Business Credit Cards

First of all, it separates your personal money from your business funds. It gives you the option to distribute business credit cards to your employees to keep track and control spending on all your business purchases. It also provides you with an annual report, detailing all purchases that are made on your account. This is a great help when reviewing your accounting and tax payments. More importantly, a business credit card can be used to temporarily fund a business and get it started without waiting for a bulk of cash to come in hand.

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