Posts Tagged ‘business credit cards’

Prepaid Business Credit Cards

What are Prepaid Business Credit Cards?

What are prepaid business credit cards and what types of benefits can they afford you? Credit cards have become a part of daily life for businesses and establishing credit for a new small business has become vital. Unfortunately, not everyone who starts up a new business has a sufficient personal credit history to qualify for a mainstream business credit card with a significant credit line. Prepaid credit cards can be the answer. Keep in mind that there are both benefits and drawbacks associated with the idea of prepaid credit cards. If you want to make the best decisions regarding this type of card, then you’ll have to shop around so that you can make an informed decision. But prepaid credit cards are capable of helping you to build up credit without putting you at risk of falling further into debt, or hurting your credit rating even further.

So what are prepaid credit cards? Prepaid credit cards are essentially like any other type of credit card as they are backed by the traditional credit card companies except that they are completely controlled by the card user rather than by the credit card company. The account for the prepaid credit card is opened with the help of a deposit from the cardholder which then becomes the credit card limit. Whenever the cardholder would like to have more “credit,” they simply make an additional deposit. With a prepaid credit card, you must keep clear records of your deposits and expenditures because if you have a prepaid credit card and you try to spend more than you have deposited to the card, your purchase will be denied. In other words, prepaid credit cards, including prepaid business credit cards, operate a lot like gift cards in that you can only spend the limit on the card and nothing more. This makes these a prepaid credit cards an excellent option for individuals and businesses that are looking to build more credit.

There are numerous advantages associated with prepaid credit cards which differ somewhat from the advantages of traditional business credit cards. For example, in some ways prepaid business credit cards are more advantageous because it isn’t possible to go into debt when using a prepaid credit card for your business, primarily because your ability to spend is limited by the balance on the card and how much has been deposited into it. Another advantage of prepaid business credit cards is that there are no interest charges and you can use these prepaid credit cards absolutely anywhere that traditional business credit cards are accepted. Finally, prepaid credit cards make it possible for you to build credit because the majority of the companies offering them report the payments that you make to the credit bureaus.

Because they offer the same convenience as a traditional business credit card without any of the worry, a prepaid business credit card might be the answer if you are starting a business and have less than stellar credit. All you have to do is shop around to find the one that works best for your business and apply online. Good luck!

For more information about No Annual Fee Cards and Rewards Cards visit Businesscreditcardsource.com

Use Wisely: Prepaid Credit Cards for Car Rentals

Prepaid credit cards issuer in the UK introduced these cards for those people whose application for credit cards is rejected. These rejections have made due to bad credit history of the applicant. Without having credit cards, there are number of problems such as you can not make reservations for hotels, motels, car rentals, airline flights, et cetera. For making orders online or telephonic, individuals need credit card. Keeping in mind above mentioned drawbacks, banks and lending agencies have introduced prepaid credit cards.

Prepaid credit cards for car rentals can be availed by those people who have a sufficient earning source or a well paying job. Prepaid credit cards for car rentals are available after offering some prerequisite documents that include Job proof, salary proof, bank statements and so on. Apart from availing car for rents, there is a number of uses such as Purchases, Money management for young adults, Travel including reserving in hotel and rental car, Emergency needs, Access cash at ATMs, Employee wages & expenses, Electronic payments, Gift-giving and so on, where prepaid credit cards for car rentals can be used with relieve.

Hiring cars through prepaid credit cards are very easy and convenient. Individuals can hire a car from home without traveling any where with the presence of internet or telephone. A card holder has authority to make purchasing within the amount loaded in the account. One can not exceed more than loaded amount.

Amount can be loaded in prepaid credit cards for car rentals directly from your employer or payer. We offer very fast services; even we have facility of direct depositing. One can withdraw cash within the same day of depositing the amount.

Nowadays, due to development of technology, there are a lot of hackers are available on the Internet. After hacking your account, hacker can use your prepaid credit cards for purchasing. It is a very tough situation to pay without purchasing anything. For this particular situation, prepaid credit cards for car rentals have introduced where personal information does not required.

One of the ideal prepaid credit cards, prepaid credit cards for car rental can be used in sundry areas for instance those people who are budget conscious and willing to spent limited money, children conscious parents, whose motive is that their children should be expert to use a prepaid credit card for car rentals, people with bad or no credit history and so on.

The Pros And Cons Of Prepaid Credit Cards

Observers in the lending industry have estimated that there may be at least 50 million Americans who are not able to qualify for credit. These consumers are usually young, often members of the minority groups and unbanked…and they are faced with the long-standing dilemma of credit: how can I build my credit record if no one will give me any credit at all?
One of the answers offered by credit card companies is a variety of prepaid credit cards, designed for use by specific segments in the market. The prepaid credit cards are meant for that significant portion of the population that cannot meet the qualification criteria for regular credit cards, or who qualified before but have since lost their credit due to repeated defaults and other reasons.
Advantages of Prepaid Credit Cards For those who do not have enough credit history or have had it blemished, prepaid credit cards are an effective way to build or slowly rebuild credit. That may not happen immediately, but it is something to work on over time. The banks that issue prepaid credit cards are also prepared to extend normal credit the moment you are able to show that you have become a worthy credit risk.
For the moment, you may have to make do with prepaid credit cards. You can use prepaid credit cards as you would any other regular credit card to purchase airline tickets, reserve hotel rooms, or order items online.
Prepaid Credit Card for Students
There is a special prepaid Visa credit card for students, which offers a lot of convenience not only for the students but also for their parents. These reloadable prepaid credit cards offer parents several options on how to reload. Parents can add money to reloadable prepaid credit cards by depositing money, by arranging an automatic transfer of funds from their account (a deposit account or their own credit card account), or by online transfer. Using the prepaid Visa credit card is no different from giving the regular allowance to their child, only they do so by electronic means and there is no more cash that changes hands.
The big advantage of the prepaid Visa credit card is that the student is limited to spend only as much money as there is in the card. The parent is thus able to control to some extent the spending behavior of their child. They can use the prepaid credit card anywhere that the credit card brand is accepted.
Prepaid Credit Cards as Gift Certificates
Some prepaid credit cards function like gift certificates. You buy the prepaid credit card for a certain amount, and your recipient can purchase items with it at any of the brick-and-mortar stores or online merchants, and also for mail order items, that accept the particular credit card brand. Your recipient can use the prepaid credit card only up to the amount of money that you loaded on it. This particular version of prepaid credit cards is non-reloadable.
Like any gift certificate, recipients of prepaid credit cards can buy whatever it is they want at any time they want. Unlike a gift certificate that, when it gets lost is lost forever to the recipient, prepaid credit cards may be replaced if it gets lost or is stolen.
Prepaid Credit Cards for Travel There is a prepaid credit card designed for travel. These reloadable prepaid credit cards can be purchased in lieu of travelers’ checks or cash. In a way, it combines the best features of a credit card and a traveler’s check because of its convenience and security features. Should you lose the prepaid credit card while you are on travel, you can easily obtain an emergency replacement, both for the prepaid credit card and some cash.
Prepaid credit cards for travel are accepted all over the world, and also allow you to obtain currency from ATM machines. When you need to reload and you are already traveling you can arrange for the reload by phone or online. Apart from the fact that it is a prepaid credit card, you can use it exactly like a regular credit card. That also means you enjoy other benefits just like a regular card – reimbursements for lost luggage of up to $1,000 per cardholder if your luggage is lost; zero liability if your prepaid credit card is used fraudulently after you lose it or have it stolen from you; purchase security up to $500 per claim for any items you buy with prepaid credit cards, which subsequently gets stolen or damaged for certain reasons.
Generally, you can purchase prepaid credit cards of all the major credit card brands at their participating retailers. You don’t have to worry about not having acceptable credit because prepaid credit cards are made available without need of a credit report or a bank account. The only qualifications you need to have are that you have reached 18 years of age and that you must be able to present a valid identification issued by government.
Disadvantages of Prepaid Credit Cards
There are a few things about prepaid credit cards that may not be as convenient as the regular credit cards. For one thing, you load only so much money onto it. You will need to keep track of the balance on the prepaid credit card because not all of the merchant terminals where you use the card may be able to help you determine it. However, there are procedures that tell you how to determine your balance, and you will these detailed on the back of the prepaid credit card and in the instructions accompanying it.
The process of reloading your prepaid credit card may be a little inconvenient to some. If you’re using cash, you would have to visit the participating outlet where you bought your reloadable prepaid credit cards. The more convenient way will be reloading online.
There are also the charges. Prepaid credit cards impose an application fee, the amount of which varies with the issuer, and there is also a service charge that you have to pay monthly. You also have to pay for transaction fees, charges when you transfer funds to top up the balance, when you replace your prepaid credit card, and many other fees. To be sure about the fees, you should read closely the fine print on the prepaid credit card account.
Prospects of Prepaid Credit Cards
Prepaid credit cards do not provide credit; it is your money that you’re using. You are asked to pay other charges, so it is not for free. You are paying for the convenience and security of carrying plastic instead of large amounts of cash. People with bad credit will be able to act as if they had a regular credit card and enjoy the convenience of one.
Issuers of prepaid credit cards realize that it is a good way to monitor the credit behavior of the cardholder. A prepaid credit card would be a source of information that indicates to the credit bureaus and issuing lenders about how you as the individual card-holder use the card to pay your bills such as utilities. If these consumer data could be formatted in such a way as to provide the basis for a statistical model on probable future behavior in spending, then this could become the foundation for building a credit history.
You would benefit, because by using prepaid credit cards you are rebuilding your credit. The prepaid credit card issuers would benefit, too, because they would be making previously unproven customers bankable. More people could then qualify for regular credit, and that would mean tremendous incremental revenue for the lenders.

Balance Transfer Credit Cards

Balance Transfer Credit Cards or Transfer Credit Cards offer to the cardholder the facility of balance transfer. By this facility,an outstanding debt balance on your one credit card can be transferred to another that is newer or less used.  But the credit limit of the latter will have a reduction to the extent of the transferred sum.For instance,suppose you transfer your outstanding debt of Rs. 20,000 on your card A to card B which has a credit limit of Rs. 50,000. By this, the credit limit of card B is reduced to Rs. 30,000.  Again, the balance transfer amount should not exceed 80% of the credit limit.For example,if the credit limit of your card is Rs. 50000, you can transfer to it only an amount up to Rs. 40000. Balance Transfer Credit Cards may offer zero interest balance transfer.In order to induce potential customers to change from other cards to theirs, banks often offer low or zero interest balance transfer.But this is only for the introductory period of 3-6 months.  After that the transferred amount acquires its original rate of interest.   If you want to avail a balance transfer credit card, as a first step,you have to apply to the credit card issuer for the facility of transferring your credit amount.Then on approval, your outstanding debt will be paid off by the card issuer and the due amount will be transferred to your new credit card.It may take 1-2 weeks to get the amount transferred.If you are not wary, your payment date may fall in between and you may not notice it. This will adversely affect you credit report.  Hence, make it a point to pay the minimum due amount till the transfer is made.  Credit card companies may offer free balance transfers to woo customers.They may offer you two, one or zero percent interest.But this may be only for an initial grace period.But this opportunity can be used to reduce your credit card debt.Before applying for a balance transfer, you need to look into the terms to know if there are some hidden costs.There may be some initial fee or annual fee.  Zero percent Balance Transfer Credit Cards gives you the facility of paying off debt along with saving money.You can save the 16 to 18% interest that you are supposed to pay otherwise.  Balance transfer credit cards can get you cash on emergency.You can even transfer money to your bank account or you can transfer through cheque.  Balance transfer credit cards can change your habit of delaying payments.As you are pushed into paying off purchases, you can save interest otherwise payable.

Transfer Credit Cards

Transfer credit cards or balance transfer credit cards are a recent development in the history of credit cards.Suppose you are a credit card holder with a balance debt of $ 7000.Now you decide to switch to a new card.But you have a liability outstanding on the first card, your debt balance.The new company allows you to transfer your outstanding balance on the existing card to the new card.The new one is a balance transfer credit card.Suppose the credit limit of your new card is $ 25,000.Your balance with the old card is $ 7000.Now the credit limit will have a reduction to the extent of the balance amount.The credit limit of the new card will be $ 18,000. Transfer credit cards are advantageous in many ways.Most of the cards allow you a very low or nil interest for the balance. Hence it will be beneficial for you in your debt management.As a matter of fact,these companies offer you a 0% transfer facility as means to woo you to leave your first card and take theirs.But this low or nil interest will be only for an introductory period of 3-6 months.Also, there may be some hidden costs.Hence it makes sense you look in to the terms and conditions if any hidden costs lurk behind the rosy face.Some companies charge some introductory fee or annual fee.But it is an advantage that you can save the interest of 16-18.If you opt for a Balance Transfer Credit Cards, first you have to apply to the card issuer stating your need of a balance transfer.Along with, you should obtain the credit statement from your card issuer and produce it to the new company.On due approval of your transfer application, the new card issuer will pay off the balance amount payable to the old card issuer. Then the amount paid by the new card issuer will be added to the debit of your new card. After your submitting of application for balance transfer,it may take a couple of weeks for the transfer to take effect. During this intervening period your payment date may fall due which you may not take notice of.This lapse will have an adverse effect on your credit report.As such, you should ensure the remittance of the due sum by the stipulated time until the transfer is effected.