MyCardBlog

It is strange to see so many credit card issuers are adding more credit card products recently. The credit card delinquency rate was up 11% during last quarter. US Bank just launched a new business credit card-the U.S. Bank Cash Rewards Business Platinum Card. This credit card is said to be a good credit card which offers businesses a new way to save while manage their expenses.

The U.S. Bank Cash Rewards Business Platinum Card offers triple rewards (3%) cash back on cellular, gas and office supply purchases and one percent cash back on all the other purchases. There is no cap on the amount of cash rewards you can earn on this card and  the cash rewards in your account never expires. Cash rewards can be redeemed once you reach a $25 threshold and in additional increments of $25 thereafter.

There is no annual for this card or if you make at least one purchase with this card (otherwise you will be charged $25). You can add more authorized users in your account and they all earn cash back! Plus, you’ll receive an annual bonus equal to 25% of your prior year’s Cash Rewards on your account anniversary date.

U.S. Bank actually has a chart on their website to show you how much you can save with the new U.S. Bank Cash Rewards Business Platinum Card.

If you are a business owner, I strongly suggest you use this great cash rewards business card. They only accept applications in local U.S. Bank branches.

The U.S. Bank all offer other great business credit cards:

The U.S. Bank Select Rewards Business Platinum Credit Card

The U.S. Bank Travel Rewards Business Platinum Credit Card

The U.S. Bank Business Platinum Credit Card

WorldPerks Visa Business Card

SKYPASS Business Credit Card

We all know that a credit card issuer will look at your credit score, usually referred as the FICO score, before issuing you a credit card. Actually, business lenders use a similar approach or credit scoring system to determine your business credit performance and decide whether or not to give you credit.

Although there are many business credit reporting agencies entered in the market in the past decade, including Experian, the Paydex score from Dun & Bradstreet remains the primary source for business credit scores and reports. A Paydex score is a number from Dun & Bradstreet that is an indicator of your business operation. The Paydex score is the business equivalent to your personal credit score. This score plays an important role in determining whether you get a loan (and loan rate & loan amount etc) and how other businesses deal with yours.

According to Dun & Bradstreet (D&B), the Paydex score is:

D&B’s unique dollar-weighted numerical indicator of how a firm paid its bills over the past year, based on trade experiences reported to D&B by various vendors. The D&B Paydex score  ranges from 1 to 100, with higher scores indicating better payment performance.

More detailed explanation about the Paydex score:

• 100 – Payments are received prior to date of invoice (Anticipated)
• 90 – Payments are received within trade discount period (Discount)
• 80 – Payments are received within terms granted (Prompt)
• 70 - 15 Days Beyond Terms
• 60 - 22 Days Beyond Terms
• 50 – 30 Days Beyond Terms
• 40 – 60 Days Beyond Terms
• 20 – 120 Days Beyond Terms
• UN – Unavailable

You can view a sample Paydex report from here.

How to establish your business credit report?

You can star to build your Paydex score by enrolling in the CreditBuilder or ScoreBuilder programs offered by D&B, but this will cost you some money. Or you can apply for a DUNS (Data Universal Numbering System) number which is an unique nine-digit numbering system that is used to identify a business. and use it to apply for a small line of credit at a company that reports to D&B regularly.

How to boost your Paydex score?

The most important thing is to keep a Paydex account active. And the best way to boost your Paydex score is to pay all of your bills early. Because this score is directly related to how you pay your bills. Or you can pay small bills later but pay large bills early. This might also be helpful but not so good as both pay them early.

How ever, you should put in mind that applying for a busines line of credit is different from the procedure for applying for a business credit card. The application process for a business card usually requires owners to provide their own ITIN or SSN, that is, credit issuers will still pull your personal credit report instead of business credit report. To get a business credit card, you have to maintain a good FICO score. That’s also why individauls can apply for business credit cards.

One of my most popular post here at MyCardBlog is “How to Apply For Business Credit Cards?“. As I indicated in the post, there are many good reasons why you want to apply for a business card. If you have a good cash back business card like SimplyCash Business Card and TrueEarnings Business Card from Costco and American Express, you can charge all of your expenditures on that card and then your credit usage as reported on your personal credit card report will be really low (Of course, you want to use a consumer card to build your credit history.). The credit usage (ratio of balance to credit line) is an important factor in determining your credit score or credit performance. In this way, you can enjoy more credit sign-up bonuses by taking the advantage of App-O-Rama strategy.

If you are a small business owner, you can’t imagine how much you can save by using a small business credit card. And, actually, all of the credit card issuers know that the business credit card market is much more profitable than consumer credit card market. Credit card issuers are trying a lot of marketing strategies to attract more small business owners to use their credit card products. That’s why business credit cards have more sign-up opportunities out there (The Gold card from American Express is offering 25,000 bonus points.). Another feature I want to mention here is many credit card issuers have build some business networks for small business owners to discuss business issues, share your opinions, and learn business knowledge. The following is a list of small business networks from credit card issuers.

OPEN FORUM from American Express: (www.openforum.com) This is a business forum and resource directory. Business owners can discuss and hare their opinions at the open forum. At the same time, American Express will also invite some successful business owners to share their experience there. Furthermore, American Express has added posts from several prominent bloggers such as John Battelle’s Searchblog to provide more useful information.

Small Business Online Community from Bank of America: (www.smallbusinessonlinecommunity.bankofamerica.com) This is also a forum and resource directory. Members will also share their stories there. Bank of America also has a special team to write up some articles for forum members. If you are a customer of Bank of America, that’s a good place to talk about business.

SlingShot from Capital One: (www.joinslingshot.com/business) This is different from above mentioned two forums. The primary goal of this site is to provide resources for business owners. Of course, every member can discuss and share their opinions there.

Ideablob from Advanta: (www.ideablob.com) This is a special website! Business owners can share their ideas there and Advanta will award $10,000 monthly to the best idea as voted by members. There are also some great advisers trying to help business owners make their businesses grow all the way to success.

The Visa Business Network on FaceBook: (www.facebook.com/visabusinessnetwork) Facebook is a good place to find a new friend and communicate between your friends. Visa just launched this network in this June and will give out $100 advertising credit to the first 20,000 business that join its new The Visa Business Network on Facebook. It claimed that it’s a place that can help you and your business succeed.

If you’re a busines owner, or want to run a business in the near future, the above mentioned forums and websites are good for you.

I mentioned in this post that the Business Gold Rewards Card offers 25,000 bonus membership points after spending $1,000 before October 1, 2008. Many readers from MyCardBlog have applied for this card and already charged $1,000 on this card (including myself). If you’re still wondering whether you’re eligible or not to apply for this business card even though you’re not a business owner, you can check out this post to learn how to apply for a business card without “real business”. Faced with slumping economy nowadays, most financial institutions are trying to cut their costs. Last October, American Express offered 25,000 bonus points without any minimum spending requirement. Bank of America and Chase Freedom Card also offered $250 sign-up bonus early last year. However, this Business Gold Rewards Card is the only one to offer you 25,000 bonus points which can then be redeemed as a domestic round-trip airline ticket. Based on my own application process, I want to point out that if you can’t get instant approval, American Express may call you to verify your personal information and ask what your business is. You have to be prepared to answer this question and don’t miss the call from American Express. You actually don’t need a high credit score to get this credit card.

However, there is a big change on this card. According to American Express, effective from 06/16/2008, the Business Gold Rewards Card will be renamed as the Gold Card from American Express OPEN. If you apply for this card and spend more than $1,000 before 10/01/2008, you can still get 25,000 bonus points. With this card, you can save up to 25% business expenses from selected partners of OPEN Savings. The first-year annual fee will be waived and after that, the annual fee is $125 per year. You can use the saving calculator to see how much you can save if you use this card regularly.

Another big change of American Express business card is the gas rebate of SimplyCash Business Credit Card will change from 5% to 3%. 3$ cashback is capped on $12,000 per year. If you charge more than that amount, you can only get 1% cashback. This rebate change will be effective on 07/01/2008. Considering this card doesn’t charge annual fees and still offer 5% cashback on office supplies and wireless services, the American Express SimplyCash Business Credit Card is still a nice card.

Another business card that is worth mentioning is the Gold Delta SkyMiles Business Credit Card which is offering up to 20,000 bonus miles (15,000 + 1,000*5). 15,000 bonus miles will be available after first purchase. This card is good for those who travel a lot. Of course, the Starwood Preferred Guest Business Card is still offering 10,000 bonus points after first purchase which can be redeemed as a $100 Amazon.com gift card.

I just received an email from discover card stating that they are going to offer $100 cash back bonus for the discover business card. It’s really great for them to offer sign-up bonus for their potential business card members. Because business cards usually offer better cash back rewards than consumer credit cards, business card issuers often don’t offer sign-up bonus for their customers.

This discover business card features:

• $100 Cashback Bonus when you apply now**
• 0% Intro APR* on Balance Transfers and Card Purchases for 12 months
• 5% Cashback Bonus® on office supplies, 2% on gas, up to 1% on all other purchases
• Earn 5 to 20% Cashback Bonus at top retailers through Discover’s exclusive online shopping site
• No Annual Fee
• Fee-free Purchasechecks that earn Cashback Bonus®. to pay merchants who don’t accept credit cards
• Free employee cards with customizable limits and monthly reporting on their spending

Apply Now!

If you are always buying office suppliers from Office Depot, Staples, Office Max etc, this card can really save you money. If you are short of money, the 0% APR on purchases and balance transfer is a good fit to you. Through ShopDiscover program, which offers minimum 5% cash back from many top online retailers, you can save huge amount of money. The $100 bonus will be credited to your account once you spend $1,000 with 3 months after account opening.

Other business cards offering sign-up bonus are: Citi Business Card with ThankYou Network ($150) and Starwood Preferred Guest Business Card from American Express ($100). If you are interested in applying for a business card, you can read this post.

Generally there are 5 types of credit cards in the market. Find the best card for your lifestyle from secured to low-interest to reward to student and to business.

Secured Credit Cards

Best for: Someone with no credit history or have ruined their credit profiles.

Pros: A secured card is report to the three credit bureaus, so using one/two responsibly can be a smart way to establish or repair your credit profile. (Tip: put in large amount of deposit and use as little as 50% of that credit line.)

Cons: The secured part means you put down a deposit, usually between $300 and $2500, with your application. Many secured cards have all kinds of fees (including annual fees). Read the fine print very carefully.

Zero or Low Interest Rate Cards

Best for: Someone is short of cash and planned to pay down credit debit quickly.

Pros: The lower rate can save you a bundle on your current interest costs. Usually you can find the low rates from balance transfer cards. If you are planning to carry balance all the time, you’d better check out some credit unions.

Cons: Introductory balance transfer rate usually lasts for only 6 to 12 months, and then reverts to something higher, typically around 13 percent to 20 percent. Only one mistake will make your rate up to normal immediately. You’d better manage your balance transfer cards wisely.

Rewards Credit Cards

Best for: People who make the majority of their purchases on a credit card and pay off the balance each month.

Pros: These cards usually offer cash back, miles or rewards points toward purchasing select merchandises. Some rewards cards, for example, currently offer as high as 5 percent cash back on select purchases with no annual fee. (Blue Cash from American Express and Citi CashReturns Card)

Cons: As stated in pros, the rewards are always limited toward purchases on certain merchandises. (Tip: use rewards card in a combinational way is the best approach to maximum your rewards.)

College Student Cards

Best for: Obviously, College students.

Pros: These cards are targeted to college students who want to manage their spending responsively. No strict credit rating is required to get approved for college students. You’re not supposed to report annual income. Some cards are even offering great cash back and rewards. (Citi mtvU Card)

Cons: Some credit cards issuers charge higher interest rate for college student cards. (Typically Citi Bank does so.) If you fail to manage your credit cards, you are in a big trouble.

Business Cards

Best for: Small business owners and anyone willing to take advantage of the “hidden report” (AOR planner’s favorite.).

Pros: Small business cards often offer better rewards programs and have higher cash back rates. Some cards may even have no pre-set credit limit. These cards also offer better introductory rates. You can always find great sign-up bonus from business cards. (see this post)

Cons: no. （It’s said that the famous Financial Review from American Express is caused by business cards. If you have a business card for personal use, you are quite likely to get financial review from American Express.

(This post is for those new to credit cards.)

Today I was notified by one of my reader here that Chase is offering $100 cash bonus for their business card members for spending $5,000 and more between May and June. This is really a good news for Chase business card members. It seems most business cards issued by Chase are eligible for this offer.

Here is a brief summary about this promotion.

1. Must be a Chase Visa Business Cardholder with active account with Chase.

2. You must register your Chase Visa Business card at https://www.chasebizbonus.com. They only need your credit card number.

3. Promotion period: May 1, 2008 ~ June 30, 2008.

4. All purchases spent on business card must be processed via Visa U.S.A. Inc.’s transaction-processing system. (Don’t worry about this, all visa cards are processed by visa network.) Following activities are not eligible: Cash advances, balance transfers, non-U.S.-dollar purchases, Interlink®-processed transactions, and purchases authorized by entering a personal identification number (PIN).

5. Bonus payment: The one-time $100 cash bonus will appear in your monthly statement within 6~8 weeks after this promotion.

6. Eligible Business Cards: Chase Visa Business Cards (Chase Business Rebate Card, Chase Platinum Card, Chase Business Cash Rewards Visa Card), Chase Amazon.Com Business Card, Chase Office Depot Worklife Rewards Visa Business Card, Chase Southwest Airlines Rapid  Rewards Visa Business Card,  Chase Marriott Rewards Visa Business Card, Chase Priority Club Rewards Visa Business Card and Chase United Mileage Plus Platinum Visa Business Card.

Overall: Eligible Chase Visa Business Credit card cardholders who are registered to participate in this promotion will receive a one-time $100 cash bonus credited to their account on total eligible Visa purchases of $5,000 or more made with an eligible Chase Visa Business Credit card associated with their account at a merchant location in the United States during the Offer Period. Purchases must be made at a participating merchant location with an eligible Chase Visa Business Credit card that is in good standing and issued in the U.S. and processed through Visa U.S.A. Inc.’s transaction-processing system during the Offer Period. The maximum total amount of cash bonus allowed per account is $100, regardless of amount of total eligible purchases.

Chase Amazon.Com Business Card is easy to get which is still offering $30 bonus. Another great Chase business card is Chase Business Rebate Card. This card offers 3% cash back at gas stations, restaurants, office supply stores, hardware stores, building supply stores and home improvement stores. It’s really like the popular Chase Freedom Card which offers 3% cash back dynamically.

This $100 bonus is an easy money to earn. You know how to get the $100 with minimum cost? Yes, you can buy some gift cards for future use if you can’t spend $5,000 before the deadline. This promotion was sponsored by VISA again!

You might have already observed that I seldom introduce some credit card issuers like Capital One, WaMu, and Advanta. The most frequently mentioned credit card issuers are Citi, Chase, American Express, Discover and Bank of America. I think the reason is Citi, Chase, American Express, Discover and Bank of America often offer some great promotions. Some small credit card issuers can’t afford the costs to get a new customer through promotions. So they seldom offer some great deals. However, we can’t ignore the fact that Advanta is a great small business card issuer. Hereby I will briefly introduce two credit cards offered by Advanta.

1. Advanta Life-of-Balance Platinum Card

This card would be a great substitute for those who often carry credit card balance. This card offers 2.99% APR on balance transfer for life! Of course, you have to make the balance transfer process in 3 months after you get approved. More importantly, there is not balance transfer fees associate with this card! If you need some emergency money, this card would be your great choice. Besides the great balance transfer offer, you can still get up to 6% cash back on certain places at your choice.

Up to 6% Cash Back on Gasoline and Diesel Fuel and Up to 2% Cash Back on all other purchases or

Up to 6% Cash Back on Utilities and Telecommunications and up to 2% Cash Back on all other purchases or

Up to 6% Cash Back on Computers and Office Supplies and up to 2% Cash Back on all other purchases or

Up to 6% Cash Back on Dining Expenses and up to 2% Cash Back on all other purchases or

Up to 6% Cash Back on Building Supplies and up to 2% Cash Back on all other purchases

You can choose one of the above mentioned rewards program by calling customer service. Or you can also enroll in a free travel rewards program! This card is really awesome!

2. Advanta Platinum Business Card with Rewards Options

This card also offer great balance transfer offer—0% APR on balance transfer for up to 15 months! After that the rate is fixed at 7.99% APR. Plus you can earn up to 5% cash back on certain purchases (Cash Back rewards are also earned on Bonus Qualifying purchases, which include purchases in the following categories: “gasoline and diesel fuel,” “computers, computer supplies, electronics and office supplies,” “online advertising services,” and “utilities and telecommunications.”) However, you can only earn 5% cash back on the the first $1200 that spent on above categories. You may also choose the no fee travel rewards program and earn unlimited rewards.

Advanta Business Cards are rated as the best business cards by the SmartMoney Magezine in 2006. Advanta was ranked among the “America’s Most Admired Companies” by Fortune magazine.

AS I mentioned previously, everyone can apply for business cards although you don’t own a business entity. You can choose “proprietorship” at the “business type” and put in your own name as your “business name”. You can also transfer balance from your own personal cards to Advanta Business Cards. One thing I should point out is their credit check is a little bit trick. You must have 2 years solid credit history.