In today’s economy, credit cards are a necessary evil — it’s difficult to book a hotel, rent a car or buy a gift online without one.

But not all credit cards are created equal and the plethora of plastic options can leave you scratching your head when it’s time to choose the right card for you.

Marie-France Lettre, communications officer with the Financial Consumer Agency of Canada and an expert on credit cards, said the “golden rule” of credit cards is to remember they are a convenient method of payment and not the source of funds.

“(Credit cards) shouldn’t compensate for a lack of liquidity in your bank account,” Lettre told CTV’s Canada AM on Tuesday.

A slew of catchy incentive programs including travel rewards, health perks, gas points and new charitable options can make the task of finding the right card even more challenging.

“It can be very overwhelming for consumers to choose the best one for them,” Lettre said.

In an effort to help shoppers tailor a card to match their unique spending habits, the Consumer Agency of Canada has devised an online interactive tool that narrows down more than two hundred card options to a small handful.

The tool prompts Internet users to answer a few simple questions, such as whether they prefer to pay a small annual fee, have a low interest rate, purchase an insurance plan or enjoy student benefits for example.

Shopping for the right card is just as important as what you buy, Lettre said.

What to consider

One of the most important factors to consider when shopping for a card is whether you typically carry an unpaid balance from month-to-month, she said.

If you do, you shouldn’t get too excited about incentive programs, Lettre said.

Cards with juicy reward programs tend to have higher interest rates. Carrying a rollover balance on these cards could cost more in exchange for a few extra points.

Make sure the rewards outweigh — or at least cover — the extra costs, Lettre said.

Beyond Air Miles

Credit card reward programs have come a long way in recent years. Consumers can earn a lot more than just air travel deals. Some health programs allow holders to redeem points at their next eye exam for example.

Other cards can be used toward large purchases such as vehicles or everyday expenses such as gas and groceries.

An incentive program should not encourage you to change your shopping habits. Never go out of your way to earn points, Lettre said.

Charitable cards are also becoming more common. Some donation plans give a small amount — like $0.10 — from every purchase to charity, while others offer to make cash donations in exchange for points. Research the list of available charities before you commit to one card, Lettre said.

“Everything that is related to reward programs should be up to the consumer and you need to shop around.”

Read the fine print

Tread carefully when considering popular cash-back credit cards, Lettre said. Cash-back cards handover a small portion of spending back to card owner, usually at year’s end. However, many of these cards are associated with annual fees and higher interest rates. Furthermore, many cards-back cards have a ceiling rebate amount. And some payouts only kick-in when a certain dollar value has been spent per transaction or on an annual basis.

You risk spending more with cash-back cards, Lettre said. “You realize, ‘I’ve put myself into debt, I’m paying more interest, I’m paying more annual fees all for a cash-back that I can’t really get.’”

Be careful when using prepaid credit cards as well, Lettre said. These cards are popular among young people and are loaded with a predetermined amount of money. These cards can come with catches including hefty activation fees, reloading fees and charges at each transaction.

Doing the research isn’t always fun but it will save you money in the end, Lettre said.

“Make sure you read the terms and conditions of your contract because it is your responsibility,” Lettre said.

Building credit

Signing up for several cards and deciding which to use later isn’t the best option either. Points are deducted from your credit score each time you apply for credit. Lenders, such as mortgage brokers, review card applications and a high number of requests may reflect badly on your ability to manage debt, Lettre said.

Also, don’t cancel a trusty card with a good rate just to get a new one, if you can help it. The longer you keep a healthy credit card account active, the better it reflects on your credit score.

Go to source

If you have excellent credit, you may find yourself approved for better credit cards, cards for excellent credit. But finding these cards takes a bit of work, and with credit card companies sending you offers left and right, why should you bother doing the work it takes to find these excellent credit cards? Well, here are some reasons.

First, cards for excellent credit generally have better APR than other cards. While nearly every credit card has gone to a variable interest rate these days, those cards for excellent credit often feature an APR under 10%, which is very low.

Second, excellent credit credit cards usually offer better bonus programs. These might include cash back for purchasing gas or buying items for particular stores. They may also take the form of travel discounts on airline tickets, rental cars, or hotels. Often, the bonus programs on cards for excellent credit allow you to choose what form your bonus takes.

Third, the best credit cards for excellent credit also offer incentives to transfer balances. Most give you a zero APR on all balance transfers for at least a year, and some even offer 16 months of zero APR. This is something to certainly consider since, more often than not, gaining excellent credit means a person has used a credit card and has a balance to transfer.

Finally, a card for excellent credit comes with some respect for the customer. A person who qualifies for one of these excellent credit credit cards has shown he or she can make payments on time and is responsible. This often results in a better level of customer service from the card issuer, and they are often willing to make payment arrangements should an emergency arise.

When you’re looking at business credit card offers, you may only be thinking in terms of which of the many business credit cards is the best. However, credit cards for small business use are a bit different than those for personal use, and there are some issues you may find yourself dealing with when you’re filling out the numerous business credit cards application forms.

The main issue you’ll face if you’re a very small business (especially if you’re the sole owner), is that your personal credit history will be reviewed to determine if you are eligible for one of the best business credit cards. Just like a personal card, if you have too many rotating credit lines or high credit card debt, you may not be approved. If you’re in a partnership, only one of the business partners needs to apply for a card. It’s also important to note that in most cases, once the business credit card is issued, the person who used their credit information to secure the card will not be held personally or singly liable if the company goes bankrupt. Instead, the company as a whole will have to deal with the debt.

You also need to be aware that anything you use your business credit cards to purchase will not be tax deductible. The IRS never sees what you pay for on your business credit card—they only see your company paying the credit card company. If you want to be able to write something off, you need to be able to pay for it via check.

Finally, when looking at the best small business credit cards, be sure to look at their cash back and rewards programs. If your business involved a lot of traveling, for example, you may want to go with a card that offers airline bonuses or rental car discounts.

Click here for Best Business Credit Card Offers

All business credit cards may seem alike, but they really aren’t. If you’re a new business looking at business credit card offers, you’ll see a lot of numbers and a lot of terms you may not be familiar with. However, when you go to apply for business credit cards, you need to not only be familiar with the terms but also know what you need. Here are three things to keep in mind when you’re filling out business credit card applications.

• What is the annual percentage rate of the card? This is important for both business and personal credit cards, but it’s especially good to know for your business card. Chances are, you’re going to make some rather large purchases for your business, and if your card has a huge interest rate, you may find yourself paying hundreds or thousands of dollars extra.




• Which business credit card offers the highest credit amount? While you may not need $10,000 of credit right away, you might need access to higher amounts in a few years. Plan ahead—you don’t want to go searching for a new business credit card in a few years just because you need a higher credit amount.




• Can you easily manage sub-accounts and issue new cards to your employees? This becomes important with a business credit card expense, especially if you expect to hire many new employees soon or have a high turn-over rate. You want a card that allows you to easily manage your account and who has access to it. Ideally, online management is the best since you can quickly and easily add and delete accounts without calling the credit card company.

Click here for Best Business Credit Card Offers.

Looking for the best small business credit cards? Wondering which business credit card application forms you need to fill out? Well, here are some of the best business credit cards around.

If you plan on paying off your balance at the end of every month, American Express may be the best business credit card for you. By paying off your balance each month, you will be eligible for many different rewards programs and not face an annual fee. However, if you’re going to be carrying a balance on your card, this may not be the best small business card for your company.

At one point, for those looking for one of the best small business cards with a fixed rate and a high credit limit, Advanta was the card to go with. They still have good bonus deals such as 0% APR for a fixed number of months when you join, but the company, like many credit card companies these days, has gone to a variable rate. Since this rate changes from month to month, you may find your company suddenly paying 20% interest, which may be much more than you want. If you need a large credit limit, though, Advanta offers it.

Discover Business Cards, likewise, have a variable rate, but their rate ceiling is less than Advanta’s. If you’re looking to pay the least amount of interest on your business credit card, then Discover is a good card to go with. The company also offers low APR on balance transfers, so if you’re looking for new business credit cards to replace old ones, Discover is also a good choice.

No matter which card you decide to go with, make sure it fits the needs of your company. You don’t want to find yourself applying for more credit cards down the line because your current card just isn’t cutting it.

You can find the best business credit card offers here.

Having a business credit card with a good line of credit is very important for small businesses. It provides an easy way to make purchases that are necessary to run your business. In addition, most of them come with rewards programs like cash back business credit cards, airline miles business credit cards etc. that can serve as an additional benefit. In addition, there are balance transfer business credit cards that can help you alleviate the pain of paying high interest rate if you currently have outstanding balances.

Low interest business credit cards may be of use to you if you think you may not be able to pay off your balances on time each month. You should also check into new business credit cards where issuers give special promotions if you are starting a new business. Not having a credit history for your business should not deter you from applying for a new business credit card.

Most business credit card issuers also offer a convenient way for you to track your expenses and thus simplify your accounting. In some cases you can also download this data directly into your accounting/tax software like QuickBooks, Turbo Tax or Quicken. This can save you a lot of time come tax time.

Make sure you compare business credit card offers before you make a decision to apply for one. You can compare the best business credit cards at nuuvoo.com.