Share  Print Version  Email

Other Translations

Credit Cards

Provided by Visa, Content Partner for the SME Toolkit


Small business use of credit cards has increased exponentially during the past decade and for good reason: credit cards provide short term access to cash to help with cash flow management and you earn value through incentive programs. (It's hard to argue with a funding solution that provides you with a free cell phone or computer.) At the same time, there's a potential downside to credit cards. As with all funding solutions, you need to borrow prudently and avoid burdening your business with high-interest debts.

Before you reach for the plastic, consider these issues.

Some considerations to keep in mind when using credit cards:

  • Keep current.
    You shouldn't use a card to borrow with if you can't stay current with your bills. Those perks may not seem as appealing as your debt mounts and you're chasing a high interest rate.
  • Pay attention to interest rates.
    When shopping for a card, review competitive interest rates and be wary of teaser rates (low introductory rates that jump after a few months).
  • Don't borrow if your credit card balances are greater than 80% of your credit limits.
    If they are, you've already got a credit card problem.

Copyright ©2016 Visa Inc. All Rights Reserved.

 Share  Print Version  Email
Ratings (1) Overall  
  • Currently 5.0/5 Stars.
If you are a human, do not fill in this field.
Click stars to rate.
  

Discussion