Posts tagged: credit_provider

Secured Credit Cards for a Small Business


Credit cards can be a business owner’s best friend. They make it possible for you to pay your monthly expenses without having to drain all your cash. Not to mention you can earn rewards like sky miles just by running your normal business costs through a credit card. But what if your business hasn’t established much credit? Or worse, what if you had some credit cards, but you fell on tough times and your credit was damaged?

Secured credit cards for a small business can be the solution. These cards offer the same credit building benefits of secured credit cards geared towards individuals, but there are some differences.

A good example I found is the Wells Fargo Business Secured Credit Card. Here is a general outline of their offer (taken from their official site):

You can get up to $50,000 in credit extended to you as long as you have an equal or greater amount deposited with the bank.

The interest rate isn’t too high; 9.9% on purchases you make (pretty good considering I’ve seen some with interest rates as high as 24.99% on purchases).

Wells Fargo will even pay you 2.5% on your security deposit for the first year you have the account with them, but after one year it drops to 0.5%

I looked for other offers for small business credit cards secured by deposits, and I couldn’t find too many. Why do you suppose that is? Here are a few ideas I came up with:

Applicants probably won’t have enough cash on hand to put down a big deposit. The deposit is something the credit provider can earn interest on, not to mention it allows them to give higher lines of credit, which pays them higher fees.

The see business that need secured credit cards as too much hassle to work with. Think about it, most businesses fail anyway right? Why would they want to provide a line of credit to a small business that either has no credit or has had a bad experience with credit in the past? Better to offer credit cards to established businesses that will keep the card open for years to come.

Secured credit cards must not be as profitable. After all, we’re talking about credit card companies here. They go where the profits are.

Based on my research, I’d say the Wells Fargo Business Secured Credit Card is the way to go.


Credit Cards for Students in the UK

complete

Students in the UK need to establish credit history as much as students in the US. Far be it from credit card companies in the UK to pass up on this lucrative market. Here is a quick review of three cards you could pick up while you’re away at university.

Barclaycard Student Credit Card

Barclaycard is a well known credit provider in the UK. Their student credit card offers some decent benefits, but before you apply they want you to fit a few qualifications:

  • Credit history without major blemishes (as in bankruptcy or multiple missed payments on credit lines).
  • You can’t be a current Barclaycard credit card holder.
  • You have to have a permanent address in the UK.
  • You have to be at least 18 years old, and you you have to be heading into college.

If you meet those requirements, you should apply and you’ll be entitled to some good benefits. They offer 20% discounts with certain retailers, 2 for 1 leisure vouchers (not sure what that is), and prize draws for cardholders.

Their interest rates are reasonable – coming in around 14.9%.

Graduate Barclaycard Credit Card

They’re looking for you to have all the same requirements as the normal student credit card, but they also want you to have at least 10,000 pounds annual income.

If you qualify, here are a few benefits:

  • There’s no annual fee.
  • They offer fraud protection.
  • Purchase Delivery Protection which ensures your mail order or online purchases against loss or damage until they get to you.
  • Online account management.
  • Text notification of payment due dates (if you want them).

This isn’t a bad card for the graduating student to pick up as you leave college and enter the workforce.

Natwest Student Credit Card

A prominent UK credit provider gives students a great offer for what may be their first credit card. Here’s a brief summary of the benefits:

  • Great discounts with online retailers.
  • A grace period that may last as long as 56 days.
  • Daily cash advance limit of up to 300 pounds.
  • No annual fee.
  • Use your card worldwide when you travel.

The final benefit I see is they offer a maximum credit limit of 500 pounds. This will keep you from getting yourself in trouble while you’re working toward your degree.

Which reminds me, I have a few recommendations for any student getting a credit card. The most important one is to understand what a credit card is, and what it isn’t. A credit card isn’t free money. They’re going to make you pay them back, and if you’re late or if you even carry a balance your best case scenario is paying high interest rates, you’re worst case scenario is paying high interest rates and high fees. Sounds good right?

It doesn’t have to go that way though. You can use the cards wisely and your credit card will be your best friend. Enjoy those rewards!