Posts Tagged ‘credit rating’

A price comparison Internet company is now urging the government to formulate a better regulation of credit score ratings for consumers to encourage people to seek better credit card deals and maximize their financial resources.

Toby Van Der Meer, managing director of money at www.moneysupermarket.com, notes that cautious and wary consumers are not keen on getting even the best credit card offers, as their application could potentially impact their credit score rating in a negative manner.

Van Der Meer notes that the current credit rating system places consumers at such a disadvantageous position when they are shopping around for the best offers.

While newbies in the plastics would jump at the next opportunity to apply for a credit card, those who know better easily ignores a chance to get better interest rates and keep their existing cards instead. In some cases, the consumers would rather not maintain a credit card at all.

Each time a consumer applies for a credit card, it gets filed, documented and referenced upon for their credit score rating. This means that both credit card application approvals and rejections are kept on record. Naturally, some applicants who shop around get mostly approvals, and some others get mostly rejections. Whatever the case may be, these application records affect the credit score rating of the credit card applicants. Ultimately, it becomes a “no-win” scenario for the consumers, who are the prospective credit card applicants.

Consumers who want a clean and safe credit score rating would rather resist applying for a new credit card than risk tainting their credit score rating.

“Our research shows that many consumers don’t understand the impact shopping around has on their credit rating,” Van Der Meer stressed. “And those that do may be missing out on the best deals because they’re reluctant to make numerous applications in case it has a negative effect on their credit score.” In conclusion, Van Der Meer says, “(It’s) effectively a no-win situation at the moment.”

It is for this reason that the price comparison web site moneysupermarket.com has been lobbying the government to provide an improved system to regulate credit score ratings.

“We have asked the Treasury Select Committee to press for change in this market,” Van Der Meer announced. He added, “We need to see greater transparency and fairness in the consumer credit market, so consumers can shop around freely for products without any impact on their credit files.”

Writer: Arlene

Credit cards for small business owners provide viable financing to help start up your business. However, before you make a decision to get one, you have to do intensive research to know what these credit cards offer.

Important Information

There are two kinds of credit cards for small business owners and these are the secured and the unsecured accounts. A secured credit card requires a savings account with a minimum deposit. Other banks require collateral for this kind of credit card account like personal assets such as cars and even houses. You will even be asked to sign a personal liability agreement with this kind of account. If your business is unable to meet payments on time, your personal assets will be at risk.

Unsecured credit cards, on the other hand, do not need these requirements and they often come with lesser interest rates. However, they can only be secured by small business owners who have already established an unblemished credit history. This means that you have to establish a good credit rating as a business entity first before you can avail of this account.

The payment terms for credit card balances oftentimes depend on the bank that you are using. There are discounts that you can avail of as well as other cost-effective options if you are able to make your payments on time.

Credit cards for small business owners are now very popular because they come with great benefits. Being aware of these lets you know what you are getting yourself into.

The Benefits

Credit cards for small business owners can help you build a viable credit rating for your business. With these credit cards, you will also have a tracking system for your expenditures that is easy to understand.

These credit cards for small business owners will also enable you to separate your personal and your business expenses. This way, spending limits can be established on your separate credit accounts. You can also expect additional perks for your credit card usage. These could be in the form of travel opportunities and office supplies given out by banks as special rewards.

Comparing what banks offer on credit cards for small business owners is a smart way to make an informed decision on getting one. You can either get a small business credit card from your current banking company or you can go to another bank that offers more favorable terms. A wise choice on where you get your credit card can spell the difference in the success of your business.

Writer: Leigh A.