Many people don’t give a second thought to what their credit cards do for them until due to one reason or the other; they find themselves out of favor with their cards. Credit cards companies in the US and indeed different parts of the world took a tumble and some even folded in the just passed credit crunch.
That simply means that many people found themselves without a direct line of credit and paying recurrent bills became a hustle. When you find yourself in a situation like this, you either think fast or fold and go bankrupt.
The very first thing you must do is to find yourself a new credit card in record time and with a more stable company. That way you are able to maintain the payment of your bills and maintenances including business operation if you have a business credit card. Either way, it is all determined by your prudence in three things;
- 1. Card maintenance
- 2. Card utilization
- 3. Business cover
Taking it in stride, Card maintenance is the way you used to pay your previous credit card interest and bills. The more prudence you instilled in the previous card, the more likely you will be in getting the new card in the fastest time possible. As it has been said before regular payments are the credit point accumulators for future reference. Many credit companies heavily rely on credit worthiness ratings for one sole purpose, they are in business and they don’t want to lose money to non performing credit card loans.
Card utilization on the other hand is the way you use the credit card. If you overuse it, it leads to the extra interest at the end of the day. Impulse purchases and non planned expenses are the biggest culprits in this sense, if they can be avoided, the better.
Finally, Business cove is the return on investments (ROI) of the things you purchase with the credit card. The card must be able to generate its own cash, and the only sure way is to purchase and engage in a business activity using the same credit card. Mail order is still big in the US, and there are several home based businesses that you can invest in and save yourself the pain of trying to find money every time the credit card bill arrives.
If you maintain this, there can never be a limit.