Credit Card Management

Credit Card Management

Five facts to consider about credit cards

1. Good credit card management will be an important factor in your business!

2. A credit card appears to be a simple little piece of plastic with numbers on it, one that you can hold in your hands.

3. It seems that you can do almost anything with a credit card that you can do with money, and sometimes even more.

4. Owning a credit card may give you a feeling of superiority, prestige and a sense of power and control over other people.

5. Credit cards seem to be magical in some sense of the word, but are they really?

Ten facts to consider with respect to credit card management

1. The majority of e-commerce businesses now require the use of a credit card, for any kind of financial transaction.

2. The use of checks and other forms of payment for transactions, are gradually becoming obsolete.

3. If you do not qualify for a credit card for whatever reason, you may have serious problems with respect to setting up or managing an e-commerce business.

4. Are you aware of what your credit card is really costing you on a yearly basis? Does it have a monthly or an annual fee?

5. Do you know what prime rate is or what the spread is that has been assigned to your credit card? Secondly, do you know what kind of interest rate you are paying on your credit card? Do you know what the factors are that can affect the interest rate on your credit card? Are you aware of penalty rates that result from late payments, returned payments, lost payments, bad checks, etc.?

6. Do you know anything about credit card theft, identity theft, or the fraudulent use of credit cards? Would you know what you can do about it, should your credit card be affected?

7. Did you know that your pattern of payment with respect to credit card debt, affects your credit rating, in either a positive sense or a negative sense? Do you know what your credit score is at this time?

8. Do you realize that it may not be in your best interest to have a lot of credit cards? It may be wiser to have just one or two credit cards and to manage them properly.

9. Your credit card management strategy can either make or break your business on a long term basis.

10. How you manage your credit card debt, may determine whether or not you succeed for fail in your business.