Posts Tagged Credit Card Application
Personal Liability on Business Credit Cards
Richard Gilliland asked:
If the business does not meet these criteria, the business credit card issuers will use the credit history of the principal making the business credit card application as their basis for evaluating credit risk.
Do note that most business credit card issuers will not approve your application for a business credit card unless you agree to the personal liability provision. This essentially makes a business credit card the same as a personal credit card from a personal liability point of view. Hence, whenever your business fails to repay the business credit cards, the issuer may invoke the personal liability agreement in order to collect payment from the business credit card principal.
Because of this personal liability provision on your business credit card application, your personal credit reports will also contain a record of your business credit card history. You will therefore damage your personal credit score if you make late payments on your business credit cards. If your business accumulates a big debt, it will inflate your personal debt burden and cause you to appear overextended.
The personal liability agreement, however, is not always cast in concrete. If you can show that you diligently make your regular payments, you should be able to convince the issuer of business credit cards to remove the provision after a few years. It would really be up to the issuers whether they decide to grant you your request or not. Nonetheless, you could always try to negotiate with them. Whatever the case may be, endeavor to have the business establish its own credit history. This will eventually allow you to separate your small business credit card from your personal credit records.
You must be aware that since business credit cards are not intended to be used by consumers, the consumer protections applicable to personal credit card are not necessarily present in business credit cards. When making use of personal credit cards, the law grants you the right to dispute billing errors on your account within the specified period of time. Within this period, the card issuer cannot mark the disputed amount delinquent or cancel the card. This particular right of the consumer is not applicable to the holders of business credit cards.
When you receive ordered merchandise in poor condition, you cannot dispute the charges and in case the vendor refuses to cooperate, request the business credit card company to intervene on your behalf – as they do in the case of personal credit cards. With business credit cards, you are largely on your own.
So, should you carry a small business credit card rather than a personal credit card? The answer is: Yes. Once your business has established its track record, you can separate personal and business finances. That will work well – both for you and your business.
Marvin
If the business does not meet these criteria, the business credit card issuers will use the credit history of the principal making the business credit card application as their basis for evaluating credit risk.
Do note that most business credit card issuers will not approve your application for a business credit card unless you agree to the personal liability provision. This essentially makes a business credit card the same as a personal credit card from a personal liability point of view. Hence, whenever your business fails to repay the business credit cards, the issuer may invoke the personal liability agreement in order to collect payment from the business credit card principal.
Because of this personal liability provision on your business credit card application, your personal credit reports will also contain a record of your business credit card history. You will therefore damage your personal credit score if you make late payments on your business credit cards. If your business accumulates a big debt, it will inflate your personal debt burden and cause you to appear overextended.
The personal liability agreement, however, is not always cast in concrete. If you can show that you diligently make your regular payments, you should be able to convince the issuer of business credit cards to remove the provision after a few years. It would really be up to the issuers whether they decide to grant you your request or not. Nonetheless, you could always try to negotiate with them. Whatever the case may be, endeavor to have the business establish its own credit history. This will eventually allow you to separate your small business credit card from your personal credit records.
You must be aware that since business credit cards are not intended to be used by consumers, the consumer protections applicable to personal credit card are not necessarily present in business credit cards. When making use of personal credit cards, the law grants you the right to dispute billing errors on your account within the specified period of time. Within this period, the card issuer cannot mark the disputed amount delinquent or cancel the card. This particular right of the consumer is not applicable to the holders of business credit cards.
When you receive ordered merchandise in poor condition, you cannot dispute the charges and in case the vendor refuses to cooperate, request the business credit card company to intervene on your behalf – as they do in the case of personal credit cards. With business credit cards, you are largely on your own.
So, should you carry a small business credit card rather than a personal credit card? The answer is: Yes. Once your business has established its track record, you can separate personal and business finances. That will work well – both for you and your business.
Marvin
The Importance of a Free Credit Report
Peter Nisbet asked:
The importance of getting your free credit report cannot be overemphasized. In the current economic climate, with such a strong squeeze on credit, everybody’s credit rating is at risk, and even if you think you have a premium credit score, you might be in for an unpleasant shock. People are getting such shocks not only daily, but hourly throughout the USA.
However, before we discuss that, let’s have a look at what a credit report is and what information it gives you. It contains four parts basically: your personal details, your credit history, public records appertaining to your financial stability and finally, inquiries made by third parties as to your credit record. While you might not understand the need for this information, they are carefully examined by potential lenders.
To put it in general terms, your credit report is a record of your credit history and your financial stability. It contains financial details such as mortgages, loans, mail order agreements, credit cards, banking facilities and so on, and includes your repayment history, any late payments, missed payments, defaults and so on. It also includes any details of credit or loan applications you have made, and whether any have been turned down.
If your credit report is bad, you will either not be offered credit or will have to pay a higher interest rate than those with a good credit report. In some cases you will be refused credit. Hence the importance of knowing what your credit record is like. The same is true of your credit score that lenders use to assess your credit-worthiness.
The implications of a bad credit report include you being refused a credit card application, a loan, a mortgage, a car loan and any other form of credit. You could even be refused a mail order agreement or even a car hire. That is not the end of it, because the same could apply to your partner and your children if they reside at the same address as you. When your kids look for a mortgage of their own before being married, or seek a loan for their first car, they could be refused because of your poor credit record.
That is fine if the record is correct, because although it is bad for you, at least it will have been deserved. However, it has been estimated that up to 90% of credit records are inaccurate, and that a large proportion of people are being wrongly refused credit. Not an entire 90%, obviously, but a lot of people are being unfairly refused credit, and that could be you or your kids. You won’t know till you apply.
Why wait till then? Why not just get a credit report now, so that you know where you stand. It makes sense, and since it is free what are you waiting for? Did you know that anybody can see your credit report? In the USA, the Fair credit Reporting Act (FCRA) allows employers, creditors, landlords, insurers and any other business to have access to your credit report for purposes of credit, renting a home, employment or any other reason where your financial situation could be of interest.
These reports are available in the USA from three agencies: Experian, Equifax and TransUnion, and each has to provide you with a free copy of your credit report annually on request. Once you have a bad record on your report you have to wait 7 years to have it removed.
However, there are companies that help you to check up on your report and have any inaccurate data removed. You could easily have your next credit request refused due to inaccurate or false information. Identity theft or even mistaken identity is no longer uncommon. Nor is it uncommon for office staff to make typing errors and you to have something on your credit record that never occurred.
In today’s economic climate your credit is the one thing you must do all that you can to protect, so make sure you implement your right to a free credit report. There are companies that can get your free report from all three agencies, and then check it with you to make sure that nothing is untoward. With 90% containing inaccurate information, that might be highly likely. If so they can help you to get these false records removed.
It’s your credit, and it affects everybody living in your home. Get it checked out now with a free triple credit report. Also check up on your credit score at the same time.
MARLON
The importance of getting your free credit report cannot be overemphasized. In the current economic climate, with such a strong squeeze on credit, everybody’s credit rating is at risk, and even if you think you have a premium credit score, you might be in for an unpleasant shock. People are getting such shocks not only daily, but hourly throughout the USA.
However, before we discuss that, let’s have a look at what a credit report is and what information it gives you. It contains four parts basically: your personal details, your credit history, public records appertaining to your financial stability and finally, inquiries made by third parties as to your credit record. While you might not understand the need for this information, they are carefully examined by potential lenders.
To put it in general terms, your credit report is a record of your credit history and your financial stability. It contains financial details such as mortgages, loans, mail order agreements, credit cards, banking facilities and so on, and includes your repayment history, any late payments, missed payments, defaults and so on. It also includes any details of credit or loan applications you have made, and whether any have been turned down.
If your credit report is bad, you will either not be offered credit or will have to pay a higher interest rate than those with a good credit report. In some cases you will be refused credit. Hence the importance of knowing what your credit record is like. The same is true of your credit score that lenders use to assess your credit-worthiness.
The implications of a bad credit report include you being refused a credit card application, a loan, a mortgage, a car loan and any other form of credit. You could even be refused a mail order agreement or even a car hire. That is not the end of it, because the same could apply to your partner and your children if they reside at the same address as you. When your kids look for a mortgage of their own before being married, or seek a loan for their first car, they could be refused because of your poor credit record.
That is fine if the record is correct, because although it is bad for you, at least it will have been deserved. However, it has been estimated that up to 90% of credit records are inaccurate, and that a large proportion of people are being wrongly refused credit. Not an entire 90%, obviously, but a lot of people are being unfairly refused credit, and that could be you or your kids. You won’t know till you apply.
Why wait till then? Why not just get a credit report now, so that you know where you stand. It makes sense, and since it is free what are you waiting for? Did you know that anybody can see your credit report? In the USA, the Fair credit Reporting Act (FCRA) allows employers, creditors, landlords, insurers and any other business to have access to your credit report for purposes of credit, renting a home, employment or any other reason where your financial situation could be of interest.
These reports are available in the USA from three agencies: Experian, Equifax and TransUnion, and each has to provide you with a free copy of your credit report annually on request. Once you have a bad record on your report you have to wait 7 years to have it removed.
However, there are companies that help you to check up on your report and have any inaccurate data removed. You could easily have your next credit request refused due to inaccurate or false information. Identity theft or even mistaken identity is no longer uncommon. Nor is it uncommon for office staff to make typing errors and you to have something on your credit record that never occurred.
In today’s economic climate your credit is the one thing you must do all that you can to protect, so make sure you implement your right to a free credit report. There are companies that can get your free report from all three agencies, and then check it with you to make sure that nothing is untoward. With 90% containing inaccurate information, that might be highly likely. If so they can help you to get these false records removed.
It’s your credit, and it affects everybody living in your home. Get it checked out now with a free triple credit report. Also check up on your credit score at the same time.
MARLON
Business Credit Card Application Needs Good Credit Report
Richard Gilliland asked:
As with a personal credit card, the business credit card is a highly efficient method for obtaining, granting, and expending loans. The applicant for a business credit card needs do little more than fill out a brief application or key in a few bits of information over the Internet. In most cases, the customer is granted a line of credit, which can be accessed and expended quickly and easily each time the business credit card is used. Assuming that the customer has a good credit record, the credit limit will automatically be increased when it is reached, thereby increasing the loan amount without much effort on the part of the business credit card holder.
To qualify for a business credit card, a good credit record is necessary. In view of future credit needs such as business credit cards, small business owners should register their businesses with the major business credit bureaus such as Dun & Bradstreet (D&B) or Business Credit USA to obtain credit ratings. These business credit bureaus operate much like consumer credit bureaus. They will collect information from your existing creditors about your business, including a check on how much credit you have, the length of time your accounts have been active, and your payment record.
To complete your credit profile, the business credit bureau will also need some information on the rest of your business. This normally includes how many employees you have, how long you have been trading for, what you sales and profit performance is, and your business’ litigation history. Regardless of whether you register or not, you will probably show up on their records the moment a lender extends your business a credit line. Being proactive about it and voluntarily registering with a business credit bureau is a good idea. It offers you the opportunity to present your company in a good light and it creates a better impression of your business in general.
When the business credit card issuer receives your business credit card application, one of the very first things they do is obtain a copy of your business credit report. If your business does not score too well on the credit report, it may well scuttle your chances of getting a business credit card. Maintaining a good credit score needs to be high on the priority list of any business.
When it comes to new business, there is normally very little solid credit history to bank on. It could take anywhere from two to five years to build your business’ credit reputation. Until that happens, your business credit and personal credit will be inextricably linked to each other. When you apply for a business credit card and your business has no credit history, your own personal credit record is the dominant factor considered by the business credit card issuer.
Once you obtain this business credit card, it is good to remember that this credit will be included in your personal credit report until your business develops an adequate credit history. So the sooner you can establish the independence of your business credit card from your personal credit, the better.
Caffeinated Content
As with a personal credit card, the business credit card is a highly efficient method for obtaining, granting, and expending loans. The applicant for a business credit card needs do little more than fill out a brief application or key in a few bits of information over the Internet. In most cases, the customer is granted a line of credit, which can be accessed and expended quickly and easily each time the business credit card is used. Assuming that the customer has a good credit record, the credit limit will automatically be increased when it is reached, thereby increasing the loan amount without much effort on the part of the business credit card holder.
To qualify for a business credit card, a good credit record is necessary. In view of future credit needs such as business credit cards, small business owners should register their businesses with the major business credit bureaus such as Dun & Bradstreet (D&B) or Business Credit USA to obtain credit ratings. These business credit bureaus operate much like consumer credit bureaus. They will collect information from your existing creditors about your business, including a check on how much credit you have, the length of time your accounts have been active, and your payment record.
To complete your credit profile, the business credit bureau will also need some information on the rest of your business. This normally includes how many employees you have, how long you have been trading for, what you sales and profit performance is, and your business’ litigation history. Regardless of whether you register or not, you will probably show up on their records the moment a lender extends your business a credit line. Being proactive about it and voluntarily registering with a business credit bureau is a good idea. It offers you the opportunity to present your company in a good light and it creates a better impression of your business in general.
When the business credit card issuer receives your business credit card application, one of the very first things they do is obtain a copy of your business credit report. If your business does not score too well on the credit report, it may well scuttle your chances of getting a business credit card. Maintaining a good credit score needs to be high on the priority list of any business.
When it comes to new business, there is normally very little solid credit history to bank on. It could take anywhere from two to five years to build your business’ credit reputation. Until that happens, your business credit and personal credit will be inextricably linked to each other. When you apply for a business credit card and your business has no credit history, your own personal credit record is the dominant factor considered by the business credit card issuer.
Once you obtain this business credit card, it is good to remember that this credit will be included in your personal credit report until your business develops an adequate credit history. So the sooner you can establish the independence of your business credit card from your personal credit, the better.
Caffeinated Content