Good Credit Can Make You Rich

An individual's credit is like an open book, to which not few have access to. In many cases is a number, which tells them what kind of person you are and also many other aspects of your financial life. This credit affects you more than you may realize. Consider these as examples of your financial life that is affected by your credit: first of all, your employment opportunities. Today's market employers have access to your track record of responsibility, based on your credit. If they see that you are keen at managing your personal finances, have a relatively good credit history, they consider it less risky to entrust their finances to you, as a future employee.

Furthermore, the typical dream of everyone, is to have a home, rather than renting one, as the same amount of money you pay to your landlord for simply using his asset, could easily be given back to your lender, and the house is yours, you are its owner. That is, if the bank gives you the amount of money you need, if, again your credit is ok. Another case is the interest rate for mortgages, if you purchased a home, having a less than perfect credit. This is also the case with vehicles. Statistics speak for themselves. A bad credit will establish an interest rate of more than 20%, in many cases, for automobile financing, as opposed to 0-5% interest for a "perfect" credit status. This is a very important distinction, if you think that 20% higher interest rate, translates in giving back more than 3 times the amount you were offered initially.

How to Get a Copy of Your Credit Report

One of the most important things that you can do to maintain an accurate credit score and report is to request a copy of it on a regular basis. Credit reports are usually defined as a document that summarizes your financial reliability and many lenders and other entities regularly report your financial performance to credit reporting agencies during the year. By requesting a copy of your credit report every year or even every six months, you can determine if all the information in the report is accurate, and if not be proactive to change it. Here are tips on how to get a copy of your credit report.

There's Not Just One Credit Report
While most consumers talk about getting "a" credit report, there are actually three different credit reporting agencies that each create their own credit report. While there are usually quite similar to the information included in the report, sometimes, they can have conflicting information and inaccuracies. This is why it is important to request a report from each individual credit bureau. The three major credit bureaus include; Experian, Equifax and Trans Union.

It's Easy to Request a Credit Report
For consumers that are interested in what their credit report says about their financial history, you will be happy to know that each of these three major credit bureaus are required by law to provide you with a free credit report once a year. If you would like a report more than once each year, you will have to pay a small fee. You can easily request a free credit report by visiting the major 3 credit bureaus web site or calling them directly to request a report.

Why Request a Report
It is extremely important to request your credit report each year to determine if any inaccuracies are present. Mistakes on your credit report can result in the rejection of a mortgage or car loan. If you are planning on making a large purchase it is always a good idea to view your credit report before making your purchase.

You should also request a report if you believe you are a victim of identity theft. One way to reduce the damage done by identity theft is to contact the three major credit bureaus and request that any new loans and credit cards that are applied for should first seek proof of identity. Another way identity theft can be curtailed, is when you receive your credit report, you can easily look at it to determine if loans or credit cards have been taken out fraudulently.

Small Business Credit Cards - 7 Myths Debunked

Small business credit cards are everywhere and the top credit card companies are offering cards to meet almost every business need. The problem is that small business credit cards are some of the most misunderstood credit cards on the market.

Let's take a look at some common misconceptions and debunk some of the most popular small business credit card myths.

1. No Credit Necessary

Many people assume that their personal credit history really has no impact on their ability to qualify for small business credit cards. This couldn't be further from the truth. Unless you have a large, well-established business with a significant credit history of its own, you're going to need your personal credit history to guarantee the small business credit cards you apply for.

Credit card companies will be running your credit report when you apply for small business credit cards and you will often be required to provide your personal information, such as your birth date and social security number.

2. Broader Spending Limits

If you assume that you'll get a fatter credit limit with business credit cards, you may want to think twice.

Whether you're applying for a business credit card or a personal credit card, your credit limit will likely be the same depending on how your credit rating is. The better your credit, the more you'll qualify for.

If your credit is damaged, don't expect to get small business credit cards that have credit lines with thousands or tens of thousands of dollars.

3. Big Business Only

Some people assume that business credit cards are only for businesses with substantial revenue and established credit histories. However, business credit cards can be used for any size business.

Even the owners of the smallest business can benefit from business credit cards. You may be required to guarantee the credit line personally (which can affect your personal credit history), but you will be able to begin building your businesses credit.

4. Higher Interest Rates Apply

Some business owners shy away from business credit cards because they believe that they will be charged a higher interest rate.

This just isn't the case.

Many small business credit cards offer very competitive interest rates, and some even offer extra perks such as points programs and access to discounted products and services for your business needs.

If you've been worried about the interest rates associated with small business credit cards, a little investigation into current offerings may surprise you.

5. The Confusion Factor

Some people think that managing business credit cards in addition to their personal credit cards will prove to be too confusing. In reality, it can make things much easier.

Using small business credit cards will allow you to keep your business and personal expenses separate, which can prove to be a lifesaver when it comes to accounting and tax time. If you're avoiding business credit cards because you are afraid it will complicate things, do yourself a favor and give business credit cards a chance.

6. A Loss of Control

Many business owners are afraid that having a business credit card will mean that employees can use the card, and that may mean a loss of control over the business expenditures.

This couldn't be further from the truth. Company employees are not allowed to use business credit cards without the express consent of the person responsible for authorizing their use and the only employees who will have access to the business credit cards are the employees you add to the account and give the cards to.

7. It's Not a Necessity

If you're among those who believe that small business credit cards are a luxury, you need to adjust your perspective.

For a business to thrive in the long run, it must have at least one or two business credit cards for business expenses. From purchasing supplies to subscribing to services, small business credit cards can help your business obtain the tools it needs to grow.