5 Credit Card Tips from Bankers

Pay your bills on time

Stretching out payments to vendors can be a good way to manage your company’s cash flow, but It’s a bad habit to get into when paying your personal credit card bills. Any late payment is reported immediately to the credit bureaus. dinging your credit score, boosting your interest rates and making it difficult for you to get more credit. What’s worse, it can affect your ability to get business financing as well.

Keep small balances on multiple cards

Credit Card companies get nervous when they see a card-holder carrying one or two cards that are maxed out or bumping up against the credit limits. If your balance is too high, there’s a perception that you’re living off credit. While you may want to charge everything on a single card to get as many reward points or frequent flyer miles as possible, It’s a good idea to spread out your spending on multiple cards and stay well within your credit limits.

Don’t shift your balances from card to card

It’s tempting as CFO of your own business to take advantage of those zero percent APR offers that you get in the mail and to shift your balances to the card that’s charging the lowest interest rate. But if you do that with your personal cards, you’re flashing a warning sign to the credit card bureaus that you don’t have enough money to pay your bills. It’s better to pay off debt than just move it around.

Don’t apply for too many cards at one time

Your applying for too many personal credit cards, credit lines, and other financing makes credit bureaus wary-even if you never use the money. You will improve your credit score and obtain more credit if you build up your credit history over time and make your lenders feel as comfortable with you as a consumer borrower. Apply for credit judiciously. A lot of inquiries in a short period indicates risk.

Don’t file for personal bankruptcy

As a business owner. It’s OK to fold your cards and start over. Consumer finance companies are less forgiving, however; a personal bankruptcy filing can stay on your credit report for as long as 10 years. That’s why, no matter what happens to your business, do whatever it takes- a second job, a loan from family to keep your personal credit score intact. Beware of companies that offer to consolidate your consumer debts. Settling with a lender for less than you owe will hurt your credit score for many years. You can rebuild your credit history over time by making payments promptly, maintaining low balances and spending responsibly. Select a card suits your lifestyle. If you are a traveler go for a frequent miles card. For shoppers, cash back cards might be a great choice.