The economy is seeming to pick up just a little bit, but what many people are finding out when they are trying to open up a business is that there aren’t that many credit cards out there, that they can get approved for. I wanted to sit you down today, and show you what I think are the best business cards out there for the year 2010. I’m not going to name names in particular, but rather show you the banks you should look into.
Citi: Citi bank has a great selection of business cards. What you’re going to find out is that they have a huge selection of just about any bank that you can think of. From getting rewards on your phone bill, to office supplies, you can use your card, and save today.
Capital One: Capital One has a great selection of cards as well. What you’re going to find out is that you can get approved if you have great, or even good credit. Most of their cards have a great reward structure, and it’s a great way to save money, while using your credit.
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How is it possible to get pre-qualified for a car loan without discussing your salary? Or to be approved for a mortgage at an interest rate that differs from your neighbors? Or get a personal loan online within a few minutes?
All this is possible with the use of credit scores.
Banks, financial institutions, landlords, and even your employer rely on your credit score to make decisions about financing, tenancy, and employment every day.
Credit scores came into wide use in the 1980s as computer costs dropped and their use exploded in business. Prior to this, lending decisions were based on human judgment which was both unpredictable and unreliable, in addition to being slow.
During this period, there was growing Congressional action arising from discrimination in housing that put pressure on institutions to remove the ambiguity and bias from the rating system. Legislation was passed in 1971 (FCRA) and again in 1977 (FDCPA) which forced Credit Rating Agencies (CRAs) to revise their rating procedures.
Initially a standard point system was developed that weighed various items on the credit report. This approach reduced human bias and sped the evaluation process. Eventually the point system was replaced by statistical modeling of thousands of reports covering numerous variables that focus on consumer payment histories. Considered a much better predictor of consumer credit behavior, all banks and financial institutions now rely on it. The obvious advantages are: more accurate predictor; extremely fast; highly objective; and very efficient.
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Running your business can take you nearly every minute of every day, especially if you are a small business. Keeping things going can be awfully time consuming and it is likely that in order to keep your business profitable you have to work very hard at all levels of the business.
Due to the amount of work you as the owner have to put in, it’s likely that you have very little free time as it is without having to run backwards and forwards to the many different companies offering credit. You can’t just drop everything whilst you spend all this time looking for credit, so what can you do?
Well, if it is time that you are short on then your best option is to go online and see what you can find out. This way involves all the information coming to you, not the other way around, and can all be done whilst you are at your desk either doing other important things or on a break.
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It can be quite difficult to find financing when you are trying to start a business. Traditional channels such as banks and other financial institutions are normally not too eager to finance a new business, even if you have developed a sound business plan and are highly skilled in your market. Starting a business, especially an online business based from your home, can be difficult, and you will need a way to obtain financing. You may be considering using your credit cards to finance your business.
While it is always better to avoid risking your own money when starting a new business, there are many people who have successfully financed a business with credit cards. If you have a sound business plan the ability to manage your finances wisely, you may be able to use your credit card to finance a business without risking your credit score and your financial future. Just as with all debts, it is important to pay as much of your balance as possible each month and never make late payments.
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