Personal credit cards are issued to "Persons" and the person is the respondent.(Owes the money.) The business card is issued to a "Business" for the purpose of charging items related to or for that business..Normally business cards are fully paid on a monthly or quarterly basis and are never used for personal things.The respondent is the business (Although a person is normally required to sign for and guaranty the debt on behalf of the company.) If you are a small business, and have a business tax ID number and business license, there may be tax advantages to using a business credit card for payment of all your business related items.The fees and spending limits for one thing and business credit cards are usually associated with a business and not a given individual, but a business credit card will be tied to the business owner for credit purposes. Business Amex has an annual fee that must be paid and pretty high interest charges, so it's not a card for everyday use.One thing that is … [Read more...] about What Is The Difference Between Personal Credit Cards And Business Credit Cards
Personal credit cards for business
Many people consider that a credit card is, in many ways, something of a trap. They are concerned that they will spend more than they can afford without even realizing it, and that when they do so, they will be entering into debts that they cannot get out of no matter how much money they earn.Every person might have reasons that they do or do not want credit cards, but for many businesses, these little pieces of plastic are a fact of life, and there is a good chance that they are for your business as well. When you think about credit cards, you are probably worried about using money that you have not yet earned.While this might be true, keep in mind that your business's worth is reliant on the money that it will earn in the future, and you will find that there are a number of different reasons that you will need to think about making sure that you can move forward. The money that your business will earn is something that you need to think about, and a credit card can help make sure … [Read more...] about Credit Cards – Business Necessity Or Trap?
Many of us (include yours truly) have used personal credit cards to finance the start up or growth of our business. It's easy, fast, and available. The interest rates may be lower than business credit cards. And, you may have exhausted your business loans or lines of credit. But there are a few dangers in using your personal credit cards to finance your business, instead of using business credit cards or loans. You can't deduct the interest. If you mix personal & business expenses on your credit card, you can't deduct the interest because some of the debt is due to personal expenses. If you are carrying a fair amount of debt, this could add up to hundreds of dollars each month. You will miss deductions. If you are randomly using personal credit cards for business expenses, you will inevitably forget to enter all those receipts into your bookkeeping system. Which means that you will miss a tax deductions that you deserve to take. You will be on "the hook" for what is … [Read more...] about Debt Financing – Why Using Your Personal Credit Card is Dangerous For Your Business
Parents should consider moving on to a credit card only after the teenager demonstrates responsible management of cash-based accounts, said Paul Golden, spokesman for the National Endowment for Financial Education and the father of two teenagers. “I believe in using a stair-step process,” he said. Here are some questions and answers about credit cards for teenagers: How can I tell if my teenager is ready for a credit card? If your child asks about credit or seems curious when you use a credit card, that’s a good time to start a conversation, Mr. Golden said. Sara Rathner, a credit card expert at the financial website NerdWallet, said parents should consider how teenagers behaved when they got cash. Can they keep track of it? Do they spend it all at once? Losing money or making impulsive purchases may suggest it’s best to wait awhile before introducing credit. “You know your teen better than anyone,” she said. Can I set a lower spending limit on a … [Read more...] about Give Your Teenager a Credit Card? Some Financial Experts Say Yes
Owning a business could be one of the most lucrative concepts an individual can engage into. It gives them the freedom to choose the kind of strategies that they need in order to achieve success. It provides them the opportunity to grow financially, emotionally, mentally, and morally.However, putting up a business is not easy, especially if a person still lacks the necessary capital for his or her chosen venture. Some problems generally affect the creation of a business. An example of this is a business wherein after using up all the available capital, they still need more funds to support its expansion.These simple things are the very core why most credit card companies have come up with the so-called business credit cards.Business credit cards are tailor-made for businesses only, whether big, small, new, or old. Its main function is to provide the business an access to easier credit especially when the company needs to buy some materials for the business.Moreover, business credit … [Read more...] about Business Credit Cards: The Cards That Can Make You Rich