Business Credit Cards?
Ever had questions about business credit cards? Here is the main thing you should know:
When you get a business credit card, tie it to your business and not to yourself! If the application requires a social security number, you are not applying for a true business card. It is, in fact, a personal card with additional liability to your business.
Why is this bad?
If for any reason, say a late payment or a default, the liability and bad reports going to the credit bureaus will go directly into your personal credit. report. This can cause all your card balances to experience accelerated interest rates.
The most frightening part is this account is no longer covered by consumer fair debt collection laws, allowing collectors to call and harass you night and day, including calls to your home, work, relatives, and neighbors.
How do you avoid this? Only obtain a business credit card with your Federal Tax ID number and not your Social Security number.
Should your card company offer to put your buisness on your existing personal card, don't do it!
In my experience as a small business debt turnaround specialist, credit card debt is one of the most difficult debts to resolve because nearly all small business credit card debt has been obtained using or including social security numbers. Tie it to your business and steer clear of credit cards masquerading as business cards that require your personal information. You are protecting yourself and preparing for any unforseen financial trouble by leaving a path for business debt managment professionals to settle your debt.
Good luck!
- TheDebtDr
http://www.financialtechnologies.com
posted by thedebtdr @ 2:20 PM
4 comments
4 Comments:
For the people that have gone deep in debt with what they thought was business debt, they can still settle and save money on the debt. debt settlement is for personal unsecured debts. And that is exactly what they have now
That is really new to me! I am now considering products at this business credit cards page, and how do I know if they require my personal info or not? They are just called business...
This post has been removed by the author.
That is really interesting, but I have a piece of information that confuses me a bit. I read an article (not long ago, do not remember which site) that said: business credit cards are different from corporate credit cards. The first are for small business and require personal credit history to be checked. Corporate cards are for large firms and they are issued in the name of the company, not a person, so no personal credit check will take place.. So should I believe you or them?
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