Self Employed Rates - determining fees and rates when you employ yourself

Reviewing business credit cards

20 Sep, 2010 12:02 am

Reviewing business credit cards is an important step when getting a business credit card. Not all business credit cards are the same! In fact, there are some credit cards you should avoid completely.

When reviewing business credit cards, be sure to consider:

Interest rates:

When reviewing different business credit cards, be sure to compare interest rates. If you’ve got a lot of financial flexibility and do not have cash flow problems, interest rates may not be as important a consideration as the perks.

Perks:

If you’re planning on putting all business expenses on a credit card and paying down the principal every month, then make sure your business credit card offers perks and benefits. There are a variety of perks, from AirMiles, cash back, gift cards, points and much more. Note that most credit cards that offer substantial benefits charge an annual fee.

Annual fees:

Do not be fooled by the concept of free flights or cash back without considering how the annual fee affects the financial benefit. For example, if it takes three years to collect enough points for $600 off your next flight and your annual fee was $200 per year, you are simply breaking even. Always read the fine print when reviewing business credit cards.

Your business’ overall financial situation:

Is a business credit card really what you’re looking for? Should you be considering all the options, such as debt consolidation, instead? Before reviewing business credit cards be sure to review your overall financial health.

Have you had success reviewing business credit cards? Has reviewing business credit cards saved you money?

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Negotiating credit card rates

9 Aug, 2010 12:23 am

Negotiating credit card rates… You hear about it all the time: people walk into a bank and reduce their business or personal credit card rates from 19% to 10% or even less. But does negotiating credit card rates really work?

Negotiating credit card rates simply means requesting that your interest rate be lowered so that more of your payments go towards the principal sum (reducing the debt) as opposed to going to interest (paying the bank).

The self employed sometimes find themselves in a quick pinch and unable to pay off their credit cards. When in a bind, negotiating credit card rates right away is a great first step.

Consider these tips when negotiating credit card rates:

Take a deep breath. Negotiating credit card rates doesn’t have to be painful.
Educate yourself. Before negotiating credit rates take an hour to remind yourself of your goals and your financial situation, such as the rates you’re paying.
You are not alone. Debt is normal. Be confident and assertive.
Contact another banking institution and enquire about moving your credit card debt elsewhere for a better rate. You can use this information as leverage when negotiation your credit card rate with your existing financial provider.
Decide whether you will be negotiating credit card rates over the phone or in person.
Go ahead and start negotiating credit card rates!

If you’re interested in negotiating credit card rates it probably means that you carry a balance on your credit card and are paying interest on your credit card purchases. If you’re in this circumstance, it’s time to evaluate your financial strategy. Credit cards are one of the worst ways to gain access to credit because credit cards tend to carry high interest rates, such as 19% or even higher. If you need access to additional credit, consider other financial products (such as debt consolidation or a secured line of credit) before maxing out your credit card.

Negotiating credit card rates is certainly a good idea, because a lower interest rate means less money wasted on interest. But when it comes to finances it’s wise to take a step back and reevaluate your financial strategy. What may have worked for you in the past may not work for you today, so be sure to assess your financial strategy at least once a year.

Getting a business credit card

19 Jul, 2010 12:22 am

Getting a business credit card is the first of many financial questions for people who are self employed.

The best was to ensure success when getting a business credit card is to do your homework–and legwork–as early as possible.

Common questions regarding getting a business credit card:

1. When should I start getting a business credit card?

When setting up your business, you might as well apply for a business credit card right away. Remember that getting a business credit card doesn’t mean purchasing items that you can’t afford. The savvy self employed use their business credit cards as a way to ensure that business expenses are properly tracked and accounted for.

2. How do I go about getting a business credit card?

Before rushing into applying for a credit card, compare interest rates. Look for the business credit card with the lowest interest rate in case you have to carry a balance at some time in the future.

If you’ve found a reasonable interest rate, start by contacting your current financial institution and see if they can match the rate. Explain your financial and business circumstances, and ask for the credit card that they feel will best suit your needs.

Getting approved for a business credit card is contingent on a few factors, such as credit rating, other debts, and income.

3. Will getting a business credit card solve my problems?

When considering getting a business credit, start by considering your overall business banking strategy. What purpose does getting a business credit card serve? Business credit cards are best used as a way to charge business expenses, and, ideally, your business credit card should be paid off every month because of credit cards’ high interest rates. If you’re considering getting a business credit card to help you pay off debts, you may be better off investigating small business debt consolidation instead.

Getting a business credit card is a wise idea for all self employed people. What do you think? Do you have a business credit card? What is your interest rate? How do you use your business credit card?

Reviewing business credit cards

Negotiating credit card rates

Getting a business credit card

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