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The Best Small Business Credit Cards, May 2012

This article was written by in Credit. 7 comments.


Small businesses often require a substantial line of credit early on to survive the start-up stage. In a perfect world, everyone would have the cash to fund their start-up but it’s not always that easy. These days, finding a bank that can lend to small businesses is extremely difficult, so one of the alternatives is to fund a business is by selecting a small business credit card from the list of best credit card deals here.

Small business credit cards have been around for a while, but some of the most well known lenders like Advanta were causalities of the economic recession. This is a list of the best small business credit cards you can find online today. Along with each card, the list includes a summary of the advantages of its use for a small business.

Editor’s choice

Ink Cash(SM) Business CardInk Cash Business. My pick for the best small business credit card is the Ink Cash Business from Chase. New cardholders can earn up to $250 cash back from initial purchases — $100 just for making your first purchase on the card, and another $150 if you spend $5,000 on purchases within the first three months.* Cardholders earn 5% cash back on the first $25,000 spent annually on office supply store purchases, cellular or landline phone service, internet and cable TV services.* Earn 2% cash back at gas stations and restaurants on the first $25,000 spent annually and 1% cash back on everything else.

In addition to the great cash back offer, the card comes with other perks. The Ink Cash Business has a 0% introductory APR on balance transfers and purchases for twelve months. Owning the Ink Cash Business card costs nothing, as the card carries no annual fee. Finally, adding additional cardholders is a snap because again, Chase charges no fee. In terms of rewards, introductory offer and overall quality, the Ink Cash Business is an all-around solid offer.

Ink(SM) ClassicInk Classic Business The point rewards version of the Ink line, the Ink Classic Business card is designed for small business owners who have excellent credit. Holders earn one reward point on all purchases, two reward points on the first $25,000 spent annually at gas stations and on hotel accommodations* and five reward points per dollar on the first $25,000 spent annually on office supply store purchases, cellular or landline phone service, internet and cable TV services.* The Ink Classic Business carries no annual fee, has a 0% introductory APR on purchases and balance transfers for twelve months, and allows for additional cardholders at no cost. This card currently offers up to 25,000 bonus points — 10,000 bonus points after your first purchase and 15,000 bonus points after you spend $5,000 in the first three months* that’s redeemable for $250 towards travel, gift cards, experiences and more.

Ink Bold(SM) with Ultimate Rewards(SM)Ink Bold with Ultimate Rewards. The only charge card to make this list of best small business cards, the Ink Bold with Ultimate Rewards is the card for the ultimate business owner. Cardholders can earn 25,000 bonus points after your first purchase plus an additional 25,000 bonus points after you spend $10,000 in the first three months of card ownership. That’s up to 50,000 bonus points which can be redeemed in rewards of your choice. You’ll earn five points per dollar on the first $50,000 spent annually on eligible business purchases. The $95 annual fee is waived for the first year.

True Earnings® Business Card from Costco and American Express. A rival to the Ink Cash Business Card, the True Earnings Business Card from Costco and American Express has a tiered cash back system worthy of ranking at the top. Cash back rates of 4% on gasoline purchases ($6,000 maximum spending), 2% on travel and restaurants and 1% on everything else (including gas when you’ve reached your spending limit) offer cardholders the opportunity to grow their business and earn a little back. If you use this card to pay your Costco membership each year, there is no annual fee. This card comes with a 0% introductory APR offer on purchases for six months.

SimplyCash(R) Business Card from American Express OPENSimplyCash® Business Card from American Express OPEN. The SimplyCash Business Card from American Express OPEN is a fantastic small business credit card. This card opens by offering a 0% introductory APR on purchases for up to 12 months depending on the applicants credit history and in terms of cash back, this offer is one of the best. Cardholders receive 5% cash back on office supply and wireless purchases, 3% cash back on all automobile gasoline purchases and 1% cash back on everything else. Cashback is automatically credited every month and there is no annual fee to own the SimplyCash Business Card from American Express OPEN.

The Plum Card® from American Express OPENThe Plum Card® from American Express OPEN. The rules on how to maximize rewards on the the Plum Card from American Express OPEN are simple. Since this is a charge card, you must pay your bill off in full each statement and if you do that within ten days of the statement date, you’ll receive a 1.5% discount on all purchases. This effectively means that should you always pay on time. This card includes a number of perks, but also has a $185 annual fee. Luckily for small business owners, that annual fee is waived during the first year.

Starwood Preferred Guest® Business Credit Card from American Express OPENStarwood Preferred Guest® Business Credit Card from American Express OPEN. American Express is at it again, offering the Starwood Preferred Guest Business Credit Card from American Express OPEN for small business owners who frequently find themselves in hotels. You can earn 10,000 Starpoints after your first purchase and 15,000 bonus Starpoints after spending $5,000 during the first six months of owning the card — up to a total of 25,000 bonus Starpoints. Customers earn four Starpoints are earned for every dollar spent on all Starwood Hotel and Resort stays and one Starpoint for every dollar spent on all other purchases. The annual free of $65 is waived for the first year. The Starwood Preferred Guest Business Credit Card from American Express OPEN has a variable purchase APR of 15.24% – 19.24%.

Disclaimer: This content is not provided or commissioned by American Express. Opinions expressed here are authors alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.

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Honda Recalls One Million Cars

This article was written by in Consumer. 5 comments.

As an owner of a Honda Civic, I was concerned with the car maker’s latest round of recalls. My 2004 Honda Civic manual transmission LX sedan was not affected by the recall, but it wasn’t too long ago that both Honda and Toyota were issuing recalls. At the time, I reacted by buying shares in Toyota, thinking I could take advantage of a good company’s bad news. The investment saw some upside for a short period of time, but since I didn’t sell, it’s back to where it started.

The Toyota recalls were so hyped by the media, I thought it was a great opportunity. The recent Honda recalls seem to be attracting less attention, but even if they were, I don’t think I’d jump in with an investment in Honda. Here’s the information on the latest Honda recall:

  • 930,000 Fits and CR-Vs will be recalled for a potential problem with the power window switch.
  • 26,000 CR-Zs will be recalled due to the possibility of the car rolling backwards when the transmission is not engaged in reverse.

Honda CR-VFor the most part, recalls involve nothing more than taking a car into the dealership for a quick repair. Lives are rarely on the line.

For me, since I am not affected by the recall, I have bigger concerns; it seems the latest edition of my mainstay for the last decade, the Honda Civic, was panned by Consumer Reports. A friend of mine who has been a loyal Ford owner for the last decade has expressed his pleasure in the news and perhaps vindication. My current car and my previous car, a 1997 Honda Civic LX, ran beautifully as long they have been in my hands. I only replaced the older car after I received it back after lending it to a relative for a year while I was not driving and there was an unidentifiable problem. The 2004 recently passed 140,000 miles and should last many more.

When the car finally reaches the point where the cost to maintain its operation is higher than the remnant value of the car, I’ll need to look at my options. If the recent crop of Honda Civic editions is not reliable and recommended, I’ll look for a change. By the time I buy a new car, a sedan might not be at the top of my list, anyway, depending on my needs and perhaps desires. I may ot be looking for a Civic or an comparable sedan.

Here’s Honda’s statement about the recalls:

Honda will voluntarily recall 80,111 CR-V vehicles from the 2006 model year in the U.S. to replace the power window master switch. The design of the power window master switch can allow residue from interior cleaners to accumulate, which can, over time with switch use, cause the electrical contacts to degrade and may lead to a fire in the switch. No injuries or deaths have been reported related to this condition.

Additionally, Honda will voluntarily recall 5,626 CR-Z vehicles from the 2011 model year in the U.S. that are equipped with manual transmissions to update the software that controls the hybrid electric motor. In the affected vehicles… it is possible for the electric motor to rotate in the direction opposite to that selected by the transmission. If this occurs and the driver has not engaged the brakes, the vehicle may slowly roll in an unexpected direction…

Which automobile maker delivers the highest-quality vehicles today?

Photo: labnol
Honda

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Net Worth Competition: Don’t Compare Yourself With Others

This article was written by in Personal Finance. 9 comments.

One of the most important metrics for tracking financial progress is net worth. I write about my net worth, or a modified form of it, every month when I report my balances. I’ve been in the practice of publishing my net worth updates for eight years. By watching my net worth change over time — usually increasing from month to month but occasionally decreasing — I can get a fairly decent picture of my financial health.

What is net worth?

Net worth is the financial value of all your assets, everything you own, subtracted by the financial value of all your liabilities, everything you owe. Finance gurus are familiar with this formula:

Net Worth = Assets – Liabilities

The equation works as well for individuals as it does for businesses. There should be no question of what is included in the net worth calculation. It starts out simple. Your bank accounts are assets and your credit card accounts are liabilities. These are easy to include in your net worth calculation because the values of these accounts are expressed in dollars and cents at any moment. You could at any point check your accounts online to get an up-to-the-minute balance.

Investments are assets as well. Generally, investments are held in shares, so a calculation may be necessary to convert your shares to a dollar amount that you can include in your net worth calculation, based on the value of those shares. If your investment is a stock traded frequently, you can generally place a value easily. If your investment is something more complicated like a business partnership, then there might be some wiggle room when coming up with a value for your net worth calculation.

Your house is an asset. Its anticipated sale value, even if you don’t plan on selling, should be included as an asset on your balance sheet, while the value of your mortgage if you have one should be included as a liability. Your net worth includes all assets and all liabilities, so if you own a home, you must include your house and its mortgage to get a complete picture of your financial condition.

Here’s how to calculate your net worth, with more discussion about the specifics of the calculation.

How is net worth useful?

CalculatorYou might find that a true net worth calculation doesn’t provide you with useful information all of the time. For example, a net worth calculation in its truest form includes the value of everything you own. That includes your television, furniture, car, coin collection, and light bulbs. Since I use my net worth to track my financial progress over time, I’m not concerned about the value of most of the things I own. Including the liquidation value of my electronic equipment would skew my net worth slightly and in such a way that it would reduce the practical usefulness of my net worth.

I include the value of my car in my net worth, not because I plan on selling it but because it was once associated with a loan. The value of the loan is considered a liability, and it was important to me to reduce that liability as quickly as possible. By including the loan in my net worth, I could track my progress as I eliminated that debt and the effect of the remaining balance on my total financial picture. To include the automobile loan, it made sense for me to include the value of the car (which I check once in a while using the private sale price listed on edmunds.com). After paying off the loan, I left the car in my net worth calculation for the sake of continuity.

It’s this personal continuity that is important. As long as you maintain the same formula from month to month and year to year, it doesn’t matter what you include in your net worth calculation as long as it makes sense to you.

Net worth is an internal metric

Net worth is best used as a tool to compare your progress over time, particularly if you insure it is calculated the same way every month. While some aspects of your net worth you may view as beyond your control, like the performance of the stock market, there is enough information in the numbers to give you a good picture of the results of your everyday financial decisions. There is something interesting about the idea of being able to compare your net worth with those of other people, but there are a few reasons why it’s best to keep your net worth an internal metric.

A quick online search can provide broader statistics so you can compare your net worth with a large population of people in your income range or age range. These comparisons are meaningless, however. Age groups can include a variety of education levels, particularly at the lower end of the spectrum. At the other end, you may be grouping retirees in with CEOs. If you’re comparing your net worth with people with similar incomes, you don’t know whether this income is a full year’s salary, pension, or dividends from investments.

Different people are faced with different situations. If you’re 22, making $40,000 in your first year as a teacher, dealing with student loans, single, and living at home with your parents, what benefit is there in comparing your net worth with another 22-year-old, making $40,000 in his fourth year in a factory, married with one child, owning a home and dealing with a mortgage?

That’s why technologies like NetworthIQ are popular. You can compare yourself with a sample using variables that place you in a category with similar people. This way, you can see where you stand among your peers. NetworthIQ does a good job of encouraging people to calculate net worth in a similar manner and groups members among different dimensions to ensure meaningful comparisons. This gets you closer to being able to compare your net worth with others, but there is still no guarantee that people are providing true information.

As I was one of the first people to blog about my personal net worth and track my finances online in blog form, I think it’s great that tools like NetworthIQ exist now.

I prefer not to worry myself about other people and focus on my own progress. My goal is to keep my finances moving forward, which usually means showing an increase in net worth each month, and other people’s finances have absolutely no bearing on my progress. By publishing my financial reports each month, I keep myself accountable to the public, and this inspires me to make decent financial decisions. Depending on your psychological tendencies, comparing yourself with others could provide you with motivation to improve your financial condition or it could leave you frustrated with your own situation.

This motivation can be helpful, but don’t look for too much meaning in person-to-person or person-to-average comparisons.

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SimplyCash® Business Card from American Express OPEN Review

This article was written by in Credit. 5 comments.

Business owners know that when the work of building a new enterprise is just beginning, it’s not easy. If your great idea takes significant financing and you need help gathering funds, few people are willing to come forward and help you finance your dream. Many great ideas don’t cost a lot of money to get started, but some do. When a small business needs capital, it usually turns to a bank, but banks have become increasingly tight on lending since the economic downturn and credit crunch. When investments and loans are not flowing, many small business apply for a small business credit cards. Even though the interest rates are typically higher than those of loans, small business credit cards offer solid rewards that can defray some of the costs. The SimplyCash® Business Card from American Express OPEN is a perfect example.

SimplyCash(R) Business Card from American Express OPENThe SimplyCash® Business Card from American Express OPEN offers business owners a 0% introductory APR on purchases for six, nine or twelve months, depending on the applicant’s credit history. This card requires excellent credit before applicants will be approved, and the length of the introductory offer depends on where the potential cardholder falls in the spectrum of excellent credit. After the introductory period has expired, the APR for purchases becomes 12.24%, 17.24% or 19.24%. This card does not accept balance transfers.

The attraction of the SimplyCash® Business Card from American Express OPEN is its strong rewards program. All cardholders, regardless of credit history, gain the following rewards:

  • 5% cash back on wireless services and office supply purchases up to $12,000 per year in each category and then 1% cash back.
  • 3% cash back on automobile gasoline up to $12,000 per year and then 1% cash back.
  • 1% cash back on other purchases.

The reward cash is automatically credited to your account once a year. You don’t earn points that need to be redeemed before receiving a benefit, so the cash back process is simple.

The SimplyCash® Business Card from American Express OPEN also includes a variety of other benefits, unique to this card. Some of those benefits include:

  1. Online account management tools that offer online statements which allows you to easily find receipts, prepare reports to invoice customers, and budget; Year-End Summary; account alerts let you know when payments are due or when accounts reach selected levels; and authorized access which allows you to authorize employees or third parties to manage your account online
  2. Enroll in OPEN Savings® and earn automatic savings and built in discounts with OPEN Savings® partners such as FedEx, Hertz® and more.
  3. No annual fee.

Any small business owner in need of a line of credit for business expenses should consider the SimplyCash® Business Card from American Express OPEN. Its introductory period, cash back rewards program, and perks, including the amazing benefit of no annual fee, is too good to pass up.

SimplyCash(R) Business Card from American Express OPEN

Disclaimer: This content is not provided or commissioned by American Express. Opinions expressed here are authors alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.

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More Toyota Cars Recalled: Time to Buy Shares of TM?

by Flexo

Another day, another recall. Normally, automobile recalls are not much of a problem. A recall usually involves bringing your car to a dealership, subjecting yourself up to some sales pitches, getting your car fixed, and driving home. Toyota’s recent string of recalls is more complicated because some of the problems do not have solutions yet. ... Continue reading this article…

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Start the Decade Off Right: Cut Out Unnecessary Expenses

by Flexo

Ten years from now, how do you want to look back on this decade? In terms of my finances, it would be hard to top the last ten years. This was the decade my net worth as I measure it for Consumerism Commentary soared from below zero to $300,000. Sure, that progress pales in comparison ... Continue reading this article…

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Cash for Clunkers: The Revenge

by Smithee

The “Cash for Clunkers” program that we told you about on June 19 has received a shot in the arm in almost-last-minute actions by the House and Senate. They approved an additional $2 billion to continue the unexpectedly popular rebate program through Labor Day. Opponents of the program feel like: Richard Shelby, the top Republican ... Continue reading this article…

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Take a Financial Health Day to Organize Your Finances

by Flexo

Ron Lieber, a columnist for the New York Times, spent one day focusing on the financial tasks that he had been neglected. He calls this day a “fiscal health day,” like the mental health days everyone needs to take once in a while to remain a functional human being. I think this is a great ... Continue reading this article…

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