Archive for the ‘Credit Card 101’ Category

It’s perhaps uncommon to see a credit card offered by a business that doesn’t belong to the finance industry. Most of the credit cards available are presented by banks, financial institutions and other businesses in the ‘card’ and lending industry.

Not in the case of Sears. Relying on its large number of customers and its numerous outlets, Sears is offering credit cards for the benefit of its clients. Cardholders can enjoy exclusive perks and rewards, discounts and other programs or promotion.

Here are the types of Sears Credit Card available:

Sears Card

The Sears Card offers great benefits to the cardholder. This credit card doesn’t incur any annual fee. This can be used at Sears Department Stores and any of their affiliates, which includes the Sears Auto Center, Avis and now Kmart, because of their merger. Cardholders can benefit from incentives such as discounts, coupons and other promos. An example would be the $10 Sears Gift Card given to newly approved application which they can use when shopping at Sears.

Another advantage is for the cardholder to return items purchased even without a receipt. Other benefits include special short term financing, security and privacy for the cardholders, temporary shopping pass, zero liability on unauthorized purchases, 24/7 customer service, and more.

Sears Gold MasterCard

The Sears Gold MasterCard is the upgraded credit card version of Sears Card. With the affiliation with MasterCard, this credit card is accepted in more shops and retail stores, banks and ATM. The Sears Gold MasterCard also doesn’t have any annual fee. It also allows cardholders to earn points when shopping at Sears. The points can then be redeemed for great rewards such as gift certificates, exclusive items and more.

The Sears Gold MasterCard also accepts balance transfer form other credit cards. So if you plan to consolidate your credit card debt, you can check on this card.

Sears Commercial One

The Sears Commercial One is the credit card for business customers. There are different plans for property managers, small businesses and general companies. This is specially made for businessmen to manager their transactions and purchases. Aside from this, Sears Commercial One cardholders can avail of benefits and perks offered by the Sears Business Resource Center and others.

You can apply for a Sears credit card in person at any Sears department store, online at Sears.com, or over the phone at 1-877-319-7904. To better understand the Sears credit cards, you can visit the Sears Credit Card FAQ and their terms and conditions. If you’re already a Sears credit card holder, you can login to manage your account and view your transaction. You can do so by going to the Sears Site by Citibank and Sears Canada.

A credit card opens windows of opportunities!

Sure money can buy lots of things, but so does a tiny plastic that fits right in your wallet. Credit cards perhaps are the most useful piece of plastic that you can find in your stash.

What is a credit card?

A credit card is similar to an ATM card in terms of appearance. In contrast though, this card will let you pay for an item or service. You can worry about the payment later, because you will get charged for your purchases usually a month after. This is very helpful in cases that you don’t have money at hand. All you need to do is look for a Visa, MasterCard or other card logos at any shops and you’re good to go!

Right now more and more establishments are accepting credit cards as their mode of payment. The convenience of not having to carry a stash of money with you all the time, you can simply carry this tiny plastic and you have the power at the tip of your fingers.

Now with the internet generation, a lot of great items and awesome discounts can also be bought online. Online purchases do not transact with cash, and this is where credit cards come just at the right time.

Windows of opportunities?

Credit card can be used in multiple ways. You can use it to settle your bills conveniently by auto-charging to your credit card. This creates less hassle on your part because you have to deal with only one bill.

There are also 0% interest deals offered by lots of vendors. This happens when you make a pretty big purchase, and you stretch the payment up to 12 months. In those 12 months, you will be paying same value until full amount is paid, with no interest at all. This is usually done by people who needed, say for example a laptop, but do not readily have the funds to make the purchase.

Help on Credit Card Debt

Of course, credit cards also have its disadvantages if abused. You can be in deep debt if you always use your card and don’t monitor your expenses. You might be spending more than what you can pay.

If your issue is on how to pay for credit card balance, you can visit the official site of your credit card, and look for the FAQ pages. You can also visit your bank to check on what other banks or other places accept credit card payments.

Regarding credit card debt, there are some posts here related to tips on reducing credit card debt and guides on paying off credit card debt. If you feel your problem is somewhat big or complex, consider consulting to credit card debt companies and other finance professionals.

In general, credit cards are offered to those who are at least 18 years old, people who pay their taxes and those who can issue proof of income and billing. Most banks roughly have similar requirements for somebody who applies for a standard credit card.

When applying for a credit card nowadays, you usually have three options – either in person, through phone, and online. The least popular is the phone method because of the lack of support for documented interaction, such as signed forms and images. This, however, is the most preferred way of knowing the status of your credit card application.

When applying for a Visa or MasterCard credit card, you can proceed by going directly to their website or through their bank partners’ website. Typically for the ones that allow online credit card application, you are required to provide details via a secured web page. The requirements can then be attached to the electronic form, or sent to the bank or credit card company through fax.

Lastly, among the three, the most preferred way is still to apply for a credit card in person. You have to present yourself to the bank and complete a certain application form. You can attach the requirements with your form. After being checked by a bank representative and if confirmed to have passed all conditions, your credit card application will then be processed.

Some of the basic items needed when applying for credit cards are stated below. Take note that these are just basic information and may or may not be the same requirements with regards to your chosen credit card.

• Proof of Income. In most cases, the applicant must be a taxpayer or somebody who has a source of income. If the applicant is self-employed or has his or her own business, the usual requirement is recent tax information or proof of business ownership. For employed applicants, a certificate of employment from your company that states your monthly/annual remuneration or a valid copy of your pay slip will suffice.
• Citizenship. An essential requirement for a credit card application is that you must be a citizen or a permanent resident in the country from which you want to apply for a credit card.
• Assets, Liabilities, Credit Status. It will greatly help the application if the applicant can provide details of any proof of assets, savings or investments. Somebody with good credit status is usually favored by banks as compared to those with a bad credit standing. Sometimes the bank will want to know if you have any pending balances or any form of liabilities such as against another credit card.

If you would like to know the detailed information on the credit card application, you would need to inquire specifically to the bank or the credit card company. There might be different requirements depending on the type of cards. Example, a student credit card would need less requirements as compared to a business credit card or a secured credit card. You might even have the chance to know of an instant approval credit card application offered by the bank if any.

Applying for a credit card nowadays is much easier as compared years ago. Thanks to modern technology, different methods of application are now being accepted by banks and credit card companies. These provide assistance and convenience to a lot of people.

What are Instant Decision Credit Cards and Instant Credit Card application?

A popular way to submit an application is online through the internet. People will just have to complete an electronic form and submit it in an instant. With the internet generation at hand, applications need not be done on paper but simply by completing online forms and clicking on some buttons. The internet making this possible, and yes, credit card applications are not an exception.

This instant credit card application benefits a lot of people because you don’t to drop by the bank or any credit card company just to secure a form or submit some requirements. You can sit back comfortably at home or in the office, type in the details on the online form and then hit the submit button. Details, FAQ, and the terms and conditions can also be found on the credit card’s official website.

Credit card companies that accommodate such kind of application are generally called instant decision credit cards. This is because the submission of form happens in an instant and immediately reaches a review body, which in turn decides on the application status. Compared to a traditional paper form processing – from submission up to decision – the online method takes place faster.

How does it work?

The process is almost the same as visiting the bank. You would need to fill out an electronic form which includes your personal details, information about your job, proof of income, credit details, billing address and such. Filling out the form would take about a good 15-30 minutes, and once done, you will just click on ‘submit’ to send the form electronically to the bank.

In the next few days, you should be getting a phone call, a text message or an email from the credit card company stating the status of your application. At some point, you might be required to submit more requirements. If all goes well, then you should be informed that your credit card will soon be delivered.

Note that the word ‘instant’ doesn’t literally imply a few minutes of processing and approval. It will take some time, perhaps a few days, before your application will be completed. The bank or the credit card company will still proceed with the normal credit card processing, such as ‘background check’ and other steps.

Generally, credit cards can be offered to a person who is at least 18 years of age, who pays his or her taxes and can provide proof of income and billing.

Most banks almost have the same requirements for a standard credit card. Applying for a Visa or Mastercard credit card can be done directly through their website or through their bank partners. If you would like to know the detailed information, you would need to enquire specifically to the credit card company.

Basic information needed when applying for credit cards are provided below. Take note however that the overview provided below are some basic information that may or may not be the same requirements with regards to your favored credit card. If you are planning to apply for a business credit card or multiple credit cards, it is highly recommended that you consult your local bank or credit card company.

1. Citizenship. A basic requirement for a credit card application is that you must hold citizenship or at least a permanent residency in the country you wish to apply. This is to make sure, from the bank’s perspective, that the person applying will be able to pay the bills consequently.
2. Proof of Income. In most cases, the applicant must be a taxpayer or pretty much have a source of income. If not, how will you be able to pay the credit card bills? If the applicant is self-employed or is running his or her own business, they should be able to provide the most recent tax information as proof that they have a source of income and is capable of paying any borrowed money. For employed applicants, this is typically supported with a certificate of employment from your company that states your monthly/annual remuneration. A valid copy of your pay slip can also be added as supporting document.
3. Assets and Liabilities. It will greatly help the application if the applicant can provide details of any proof of assets, savings or investments. This will influence how much will be the credit limit granted to you by the bank. Sometimes the bank will ask if you have any pending balances or any form of liabilities such as against another credit card. The applicant should have full documentation of this in order to prove that they are capable of paying the subsequent bills.

How long does the process usually take?

Credit card processing actually depends on a lot of factors. One of which is the type of card applied for. There are those that offer instant approval especially for those with very low credit limit. Shorter processing days are also needed for some student credit cards. Secured credit card application would require more time to process.

If you have all the required documents at hand, the bank will be giving you an application form. The form will normally take a few minutes to fill out. Submit that to the bank and they should be informing you of the turn around time for their response. Typically, it would take about 3-5 days for them to complete the background check. If it takes longer than their estimated time frame you should get in touch with your bank and enquire of the status.

If all goes well your credit card should be delivered to you at your billing address or can be picked up from the bank where you applied. Regardless of the method of application, be it online or personally through bank, it would usually take days to process everything.

Credit card applications are more convenient nowadays. You can apply for a credit card through the phone, or online through a bank or the credit card company’s website, or lastly, the traditional way, in person.

Before that, it would help if you understand some concepts behind phone credit card processing.

What is Telephone Banking?

Telephone banking is a method for people to conduct bank transactions through phone. This is a service provided by banks and other financial institutions as an alternative to going personally to banks to perform bank transaction. In most cases, you will be required to dial in your account number, a PIN, or a password to authenticate yourself. Whenever you speak to a representative to know more sensitive data, additional information may be required of you such as your birthday, your mother’s maiden name and others, just to confirm your identity.

Generally, financial institutions offers its customers one hotline to contact. Within that, there is an automated phone answering system that will guide you and help you navigate to the correct support group. A recorded voice will command you to perform actions such as “press 1 for credit card, press 2 for housing loan … press 0 to talk to a customer service representative.” Some system will let you navigate through the system for more particular concern. In the case of the housing loan stated in our example, such sub-categories may include “press 1 to check the status of your loan, press 2 to know how you can apply for a loan … press 0 to talk to a customer service representative.” This system actually varies from one financial institution to another. The good news however is that they try their best to come up with a system that’s easy to understand for the benefit if their customers.

Credit Card Processing Over the Phone

With the help of phone banking, you can initiate credit card applications, know how to apply for a credit card, or know the status of your credit card application. All of these, you can do through phone.

A sample phone system will usually greet you and allow you to select a general option for a credit card. Under this, you might be directed to “press 1 to check the status of your credit card application, press 2 to know how you can apply for a credit card … press 0 to talk to a customer service representative.”

There are also times when the financial institutions are the one who initiate the processing through phone. These companies would usually offer a promo telling you that you are eligible for a credit card. You will then be required to send over the requirements through fax. After which, the credit card will be processed and you can check on the status through phone.

Most American household are in debt. That is a fact. The average credit card debt has been reported by different sources for the previous years. There’s actually no accurate way of finding out the average credit card debt at any given point in time, but statistics will say that on the average, any American household owes somewhere between $7,000 to $10,000.

Here are several reported articles that mention the average credit card debt. The excerpts below were taken from random articles posted from around the web.

Nilson Report, April 2009
The average credit card debt per household — regardless of whether they have a credit card or not — was $8,329 at the end of 2008. (Source: Nilson Report, April 2009).  The average outstanding credit card debt for households that have a credit card was $10,679 at the end of 2008. One year earlier, that average was $10,637. (Source: Nilson Report, April 2009)

Forbes.com

While the median household income is a moderate $43,333–the national average is $50,233–average credit card debt in each home is $9,797.38. That means to pay off outstanding credit card bills, debtors would have to forgo 22.61% of their incomes.

IndexCreditCards.com

Average Credit Card Debt $4,013 Per Adult, $7,861 Per Household
Using government debt data and census data, IndexCreditCards.com has determined that the average American adult is carrying $4,013 in revolving debt (mainly credit card debt) and the average American household is carrying $7,861 in such debt. This is a slight decrease in debt when compared to our estimates in April, when average adult debt was $4150 and average household debt was $7900.

Bankrate.com

Average credit card debt among all American households is $8,400.
Average card debt among people who have at least one card is $9,205 — triple what it was in 1990.

USA Today

The higher the grade level, the greater the card debt, according to Sallie Mae. In 2008, college seniors with at least one credit card graduated with an average of $4,138 in card debt, up 44% from 2004. By comparison, freshmen’s average credit card debt jumped 27% to $2,038.

Gold represents something valuable. In fact in some cases, it’s considered something having the highest value or ranking. Take the Olympics for example. A gold medal is awarded to the best, the winner and the no. 1 ranked in a certain sport.

This concept also applies to a credit card. In general, having a gold credit card entitles the cardholder to more exclusive items, perks, rewards and other benefits. It may not be the premier rated card (that belongs to platinum or other more exclusive credit cards), but it definitely ranks higher than any typical credit card.

Most credit card companies offer gold credit card as part of their portfolio. For the purpose of comparison, the discussion below will focus on the top card companies – VISA, MasterCard and American Express. This is because most credit cards offered by banks have logo of one of the card companies mentioned.

Note that the benefits that mentioned above don’t necessarily match that of your own bank’s credit card. It may come close however. In order to have more updated information, it’s highly recommended that you personally visit your bank and talk to a representative, visit their website or talk to a phone representative.

The Visa Gold

The Visa Gold credit card is accepted at thousands of locations worldwide. Other versions of gold credit cards offered by local banks may contain a Visa logo, which might entitle you to the same benefit of a Visa Gold card.

The benefits of Visa Gold credit card are classified into Shopping, Fine Dining, Lifestyle, Travel and Leisure. The Visa website provides great details of such advantages. List of establishments that offers discounts, promos and other benefits are posted on the website. To do this, you may click this link and select the appropriate category for your needs.

Gold MasterCard

The Gold MasterCard is also accepted at several merchants around the world. The benefits of this gold credit card usually revolve around any of the following categories: repair, service, shipping, and travel. The benefits include service assistance, discounts in purchases, insurance coverage for live and non-life, extension in warranty, road and travel assistance, and other promos, items and services.

American Express Preferred Rewards Gold Card

The American Express Preferred Rewards Gold Card entitles cardholders some amazing and exclusive rewards, travel offers and exclusive access to some events. You can earn points and then redeem them later for your choice of rewards. You may have discounts and other forms of privileges for any of their partner merchants.

Any credit card comes with a unique number that identifies the card. Apart from the credit card number, other details that exists in the card are credit card company logo, credit card validity period (from and to dates), logo of a Visa, MasterCard, Discover, American Express or other card company partners, 3-digit code and short description or terms and conditions.

A valid credit card number consists of 16 digits that is usually grouped into four parts. To understand how the 16-digit credit card number is generated, visit the article on “How To Generate *Valid* Credit Card Numbers. This will give you good insight on the algorithm and science behind the numbers that you see in the card. To give you a hint, the numbers are not randomly generated. Instead, it follows a certain scientific and mathematical process.

As a short summary, the credit card numerical sequencing is governed by a formula called the Luhn validation formula or Luhn Algorithm. This is a check sum formula that’s used to validate the credit card number to make sure it’s free from error or fraud.

Protect Yourself against Fraud – Credit Card Number Generator

With the science behind the credit card number exposed, several people are taking advantage and are trying to use it to do fraudulent acts. Several tools were created to generate a credit card number with the hopes of any possibility to conduct a transaction using the created number sequence. Take note that in any way, this is illegal and should not be allowed to be used.

As a precaution, it is strongly recommended that as a credit cardholder, you need to protect your card in any way that you can. The first step is to secure it physically. You should not expose it nor put it in any place that impose great risk of theft. Another way is to make sure that whenever using your card online, you are having a transaction on a secured website. You can confirm this by:

• Looking for a Security Logo in the web page. A good example is Verisign
• The URL of the website starts with https instead of only http. The extra ‘s’ stands for ‘secured’, meaning the webpage is viewed on a secured protocol
• The URL stands for the correct page that reflects the content. For example, the webpage may be asking you to provide your credit card number and other personal data to purchase a certain Product X. However, the URL shows something like 123abc.com which looks somewhat bogus.
• Never open links from spam emails, or any email for that matter except if you truly trust the source.

When transferring your balance from one credit card to another, it would be wise to choose a service that doesn’t require any fees or those that won’t charge any percentage against your outstanding balance. The idea is to minimize any cost when you transfer the balance.

Reasons Why You Need to Avail of 0% Balance Transfers

Getting out of credit card debt is perhaps the most popular reason why people avail of credit card balance transfer. This is one of the identified and recommended steps to help reduce credit card debt or pay off your credit card debt completely. Having your debt consolidated into one low interest rate card provides lesser monthly and yearly charges and allows you to better manage your payments and monitor all transactions.

Fortunately, there are credit card companies that allow you to do this. Here as list of those offering 0% Balance Transfer Credit Cards and other credit card companies that offer balance transfer without any fees. Take note that you have to complete read the terms and conditions that applies to the cards listed below. There might be some clauses that you don’t like or conditions that may eventually be not beneficial from your end.

Discover Cards
Discover More Card
Discover More Card – Clear
Discover More Card – American Flag
Discover More Card – Wildlife Collection
Discover More Card – Sealife Collection
Discover More Monogram Card
Discover Escape Card
Discover Miles Card

Citi Cards
Citi Platinum Select Card
Citi Forward(SM) Card
Citi mtvU Card For Students

Capital One
Capital One Platinum Credit Card
Capital One Prestige MasterCard

Simmons First
Simmons First Visa Platinum Rewards
Simmons First Visa Platinum Credit Card

IberiaBank
IberiaBank Visa Platinum Rewards Card
IberiaBank Visa Gold Cash Back Rewards Card
IberiaBank Visa Classic Card

Pulaski Bank
Pulaski Bank Visa Card
Pulaski Bank Gold Visa Card

As part of your goal to reduce your credit card debt or to completely paying off your credit card debt, you might need to do some negotiations with the credit card company. Don’t be surprised that credit card companies are willing to engage in negotiations as well. This is logically because it’s better for them to have you pay off your debt completely (making them recoup their ‘investment’ on you even with lesser interest) than for them to be chasing and forcing you to pay (on their part, this costs them time and money).

In order to do this, you need to speak to a credit card company representative that specifically handles such type of conciliation and dialogue. But prior to speaking with the bank or credit card company agent, you need to do your own research. Using the internet, print and other forms of media, you can acquire information regarding other things that the credit card company has to offer. You can also do some interviews with friends, relatives or officemates that have knowledge regarding the credit card that you own.

During the negotiation, your primary goal is simple – and that is for you to pay your credit card debt at the most convenient way for you. To do this, keep your discussions on the following items:

• Lower Interest Rate – Some banks and card companies allow cardholders to avail of lower interest rate especially if the cardholder always pays on time and has a good track record
• Request for Fees to be Waived – Again, there are credit card companies that are more than willing to waive a fee or two just for your satisfaction. This actually depends on the type of fee being discussed. The most common one that’s being waived is the late payment fees.
• Lump Sum Payment – If you have a sum of money that you can allot for credit card debt payment, inform the agent and try to calculate your remaining balance. This generally decreases any further interest because of the great deduction from your initial balance. Try to come up with the best possible combination of lump sum payment and rates/fees on the outstanding balance.
• Document Your Agreement – Remember the saying, “If it’s not written, it never happened”. Have your concurrence be written as future reference.

These are things that you need to keep in mind when dealing with agents regarding any negotiations on your credit card debt. It also helps you if you consult a financial expert or any of your friends, relatives and office mates that has experienced the same problem before. You can learn from what they have done.

Many credit card companies have created card varieties that will perfectly match the requirements of different businesses, from small-scale businesses to corporations and enterprises. Some of those offered are secured business credit cards and others are classified under as unsecured.

In support of small businesses, major credit card companies have created several versions of credit cards. Listed below are those offered by Visa, MasterCard, American Express and Discover. It is highly recommended to check on the details of the business credit cards from their official website or in person through their bank partners. This will help you understand their necessary requirements and steps for small business credit card processing.

Discover Business Credit Card

The Discover business credit card offers rewards program that entices business owners to avail of. This include cash back bonus and different types of rewards. Other benefits are:

• Free employee cards with customizable spending limits and monthly reports
• Categorized online quarterly and annual statements
• The most complete set of free travel benefits offered by any no-annual fee card
• Live phone support within 60 seconds, guaranteed
• Easy online account servicing—review charges, pay bills, redeem rewards, and download statements into QuickBooks®

MasterCard Business Solutions for Small Business

MasterCard classifies small business as those companies that generate revenues under $10 million annually. Under this category, there are cards that are designed for a specific purpose. You need to read through their features to find the right credit card that meets your business needs.

Other MasterCard Business Credit Cards include:

• MasterCard BusinessCard® Card – Superior cash management, with extensive business and travel services.
• Debit MasterCard BusinessCard® Card – A step beyond checks.
• World MasterCard® for Business – Delivers premium rewards and high-performance spending power designed for high-speed businesses.
• MasterCard® Small Business Multi Card – Consolidate all your business expenses onto a single payment platform.
• MasterCard Prepaid Card Solutions – A suite of targeted solutions designed to help better manage a variety of employee payment programs.
• MasterCard BusinessCard® for Construction – Manage your business more profitably with a card built for the people who build for a living.

There is an ongoing promotion sponsored by MasterCard called “Fall Small Business Promotion”.

Every time you use your MasterCard® small business card from September 1 through October 31, 2009, you’ll be automatically entered for a chance to win.

To receive double entries, register your eligible card in the MasterCard® Easy Savings™ Program. There is no fee to register. And if you’re already an Easy Savings participant, you will receive double entires with each purchase. For details about the Program and to register, visit easysavings.com.

Visa Business Credit Card

Visa offers a variety of card that you can use to support your business, and these are listed below. Each has its own features, which you can read through visiting their official website.

• Visa Business Credit Card
• Visa Signature Business Card
• Visa Business Debit Card
• Visa Business Line of Credit
• Visa Gift Card-Bulk
• Visa Incentive Card

Some banks that offer Visa Business Credit Cards are as follows:

• Amegy Bank
• Bank of America
• Barclaycard US, Barclays, Barclays Bank Delaware, Juniper
• BB&T Bank
• Capital One
• Chase
• Citibank (South Dakota) , N.A.
• Comerica Bank
• Fifth Third Bank
• First Equity Card Corporation
• First National Bank of Omaha
• M&I Bank
• National City
• Pelican State Credit Union
• Regions Bank
• SunTrust
• TD Bank
• Tri Counties Bank
• U.S. Bank
• UMB Financial
• Wachovia Business Banking Center
• Wells Fargo Bank

American Express Business

The small business credit card program offered by American Express is called the American Express OPEN. It provides the resources that can help you run your business, including financing, savings, online management, and support from experts and other small business owners.

Amex Business Credit Cards include:

• Gold Delta SkyMiles Business Credit Card – allows you to earn up to 25,000 bonus miles, and2 miles for every eligible dollar spent on qualifying Delta and Northwest flights
• Starwood Preferred Guest Business Credit Card – lets you earn 10,000 Starpoints® with your first purchase
• The Plum Card – Get trade terms on virtually everything you purchase

A business credit card is a type of credit card specially crafted for businesses. In general, the allowable loans from such credit cards are higher compared to a personal one and the rates fit that of a business. Depending on the credit card provider, there are different kinds of that fits any type of business – from small-scale and mid-sized businesses to corporations and enterprises.

Types of Business Credit Card

There are generally two types of business credit card – the secured business credit card and the unsecured business credit card. The term secured is taken from the credit card provider’s perspective and not from the cardholder.

The difference between a secured and an unsecured business credit card is that the former usually requires collateral like a real estate property, a business or shares in businesses. The latter doesn’t need any of those when borrowing money or applying for a loan. Given this nature, most credit card companies only issues secured business credit card especially to those who don’t have any credit profile or those that have bad credit standing.

In most cases, businesses usually start using secured business credit cards. Once a positive credit profile is established, such businesses move from a secured to an unsecured card at some point in time.

Benefits of a Secured Business Card

Despite the need for collateral, a secured business credit card has its own benefits. Usually, credit cards under this category have low interest rates primarily because its purpose is for businesses and it is secured by an asset from the card holder. Business transactions benefit heavily on this because the credit limit imposed in business credit cards are generally higher. This gives opportunities for high-valued purchases, support for business travels and other quick payments that will the operations of the business.

Things to Check

Prior to applying for a secured business credit card, you need to prepare collateral. This is typically a requirement of most credit card companies. Samples include real estate properties, business shares or the business itself and other similar ones.

You also have to check on the fees and annual percentage rates (APR) of each of the credit card companies that you want to avail of. Include in your research the rewards, incentives and perks offered by the said credit cards. These information are generally available in the company’s website and other media. You can also visit the offices physically to have first-hand information regarding the product. A comparison among all of these will help you choose which one best fits your requirements.

Where to Avail of Secured Business Credit Cards?
You can visit the sites of some credit card providers below for more details on how to avail of their business credit cards.

Discover Business Cards

Discover offers perks for Small Business:

• Free employee cards with customizable spending limits and monthly reports
• Categorized online quarterly and annual statements
• The most complete set of free travel benefits offered by any no-annual fee card

Visa Business Credit Cards

• Visa Business cards are offered by the following Visa partners:
• Amegy Bank
• Bank of America
• Barclaycard US, Barclays, Barclays Bank Delaware, Juniper
• BB&T Bank
• Capital One
• Chase
• Citibank (South Dakota) , N.A.
• Comerica Bank
• Fifth Third Bank
• First Equity Card Corporation
• First National Bank of Omaha
• M&I Bank
• National City
• Pelican State Credit Union
• Regions Bank
• SunTrust
• TD Bank
• Tri Counties Bank
• U.S. Bank
• UMB Financial
• Wachovia Business Banking Center
• Wells Fargo Bank

MasterCard Business Credit Card
Offers different types of credit cards for small businesses, mid-sized companies, corporations and public sector.

American Express Business Credit Card
Has credit cards that suits personal, small-scale business and corporate needs.

In some occasions, you might be presented with two types of credit cards – one called a fixed rate credit card and the other having a variable rate. A bank representative or agent will explain the pros and cons of each type, and let you decide eventually.

For many years, financial service companies claims to offer low fixed rate credit cards, enticing people to avail of them. Some say that theirs is the lowest in the country and are competitive with other credit card companies.

What is a Fixed Rate Credit Card?

A nice article in ASAPCreditCard.com discusses the difference between the two. Here’s an excerpt from the article:

• Variable Rate: Variable rates are normally based on one of the following indexes: the PRIME RATE, the Federal Reserve Discount Rate, or the Treasury Bill Rate. The credit card company adds a “margin” to the index to come up with the variable APR. When the index goes up, so does the credit card rate. Likewise, if the index goes down, your credit card APR does as well.
• Fixed Rate: A fixed rate is supposed to be “fixed”. This means that the interest rate shouldn’t vary as long as you have your card. But here’s the catch: the credit card company reserves the right to change your rate at any time. As long as you are given at least 15 days notice in writing, your “fixed” rate could be adjusted anytime.

Issues on Fixed Rate Credit Cards

There is an ongoing thought from many people that fixed-rate credit cards will soon be gone, at least for a period of time. This was felt when a number of large banks announced that the accounts of some of their fixed-rate cardholders will be converted to a variable rate. These include Bank of America, JP Morgan Chase and Discover Financial Services. Generally, this is a tactic that banks and other financial institution use to sustain their business.

As of now, several articles related to this were published. You can read further by visiting the links below:

Fixed-Rate Credit Cards May Vanish
In June, Bank of America Corp. and J.P. Morgan Chase & Co.’s Chase Card Services notified some cardholders that their fixed rates were being converted to a variable rate tied to the prime rate. In March, Discover Financial Services also notified some customers that their fixed rates were changing to a variable one.

Say goodbye to fixed-rate credit cards, for now
Credit-card issuers increasingly are moving consumers into variable-rate cards rather than fixed-rate ones, due in part to the new credit-card law slated to go into effect in phases starting in August.

Fixed-rate credit cards going away?
Some issuers have converted a portion of their credit card fleet from fixed rates to variable rates, including Bank of America and JPMorgan Chase. Discover Financial Services changed some cards to variable rates last October and Capital One followed suit earlier this year.

Getting a credit card actually varies from one credit card provider to another. Some will require you to provide lots of paper documents while others require you just one or two. Generally though, there are things that you need to understand prior to getting a credit card.

What You Need to Know when Getting a Credit Card

Whatever your purpose is, it is best that you choose the best credit card that will fit your requirements. You need to consider the rates, the credit card plans, their terms and conditions and other pertinent information regarding the credit card provider. There are lots of information on the internet and print media, like magazines and newspapers that will give ample information regarding the credit card provider that you plan to apply to. Another way is to visit the nearest branch to you and talk personally to a bank representative. In this way, there will be interaction and all your queries should be answered.

Note that the rates, plans and other details regarding the credit card vary from one company to another, so it would be best that you weigh which one will fit your needs. There are also instances that you may be in a bad credit status, so a little research about how each credit card company addresses that (i.e. Through a secured credit card) will surely help.

What You Need to Prepare when Getting a Credit Card

Generally, any credit card issuer will require you the following set of documents:

• Identification – This should be a government recognized ID, usually with a picture and a signature as a proof of your identification. The usual ones are driver’s license, passport, and social security ID.
• Proof of Income – This is a document that proves sources of income such as Forms for Income Tax, pay slips, and certificate of employment.
• Proof of Residence – A bill that states your name and your address to make sure that you are the tenant in the address that you state in the form.
• Contact Details – Phone number and email address in order for the bank personnel to contact you.

How to Get a Credit Card

Getting a credit card also differs among each credit card company. In the case of a VISA credit card, you can do so by knowing the methods used by its affiliates or partners.

There are generally three methods to apply for a credit card – online, through phone, or physically in the bank. Some banks will require you to do a combination of the three methods, so it is best for you to include this in your research.

Applying for a Credit Card Online

This is usually the easiest and most convenient way to get a credit card. You need to visit the official website of your chosen credit card provider. Take note that not all banks offer online applications, so you need to check it as well. The details of the application and other requirements should also be stated in the website.

Applying for a Credit Card through Phone

Most banks let you call a toll free number in order to apply for a credit card. The number can be found online, in the yellow pages, newspapers or other advertisements. Typically, you will be guided by the instructions that you will hear.

Applying for a Credit Card in Person

You need to fill-out the application form endorsed by the credit card company. After doing so, you’ll have to submit it to the counter together with the required documents.

For more information, it’s highly recommended that you visit the website of your chosen credit card provider or talk to any of their representatives.