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A credit card is an advance at your fingertips and
is available at any time of the day or night. Also
known as plastic money, Credit cards are a secure
way of carrying huge amounts of cash, as there is
little or no fear of theft or misuse. Many cards
offer insurance of upto half a million dollars in
case the card is lost and it is misused, provided of
course the loss is reported before the card is
misused.
There are a few points to understand when applying
for a business credit card. Firstly you must be
aware of the offers on the card.
Most
credit cards offer 5 percent minimum cash back on
purchases at select stores. Look for the fee waiver
on the card that you are purchasing. There is
usually a fee waiver for the first year of use and
thereafter a waiver on the annual fee provided you
have made a minimum amount of transactions. Also
check what is the minimum amount you have to payback
monthly and what is the grace period where no
interest is charged on the transaction.
The
credit line of the card is very important. You must
make sure to ask for the maximum credit the card
offer and whether this credit is extendable if ever
you need to exceed it.
The
interest charged on the card is of utmost
importance. Usually you have a grace period of 50
days when you are not charged interest on the
transaction and if you have paid up in full before
the grace period expires then you have yourself a
free loan. However, you must be careful on late
payments. Usually the penalty on late payments is so
high that it outweighs the minimum interest on the
card itself.
A visit
to the online credit card companies will list the
leading card companies like American Express and
Citibank and their offers. However, no matter how
established the company is, always do your own
research and always beware of the small print. They
are not here to give away free cash.
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