A Beginner's Guide To Bad Credit – What Does Your Credit Rating Say About You?
If you’ve ever experienced financial problems in the past then the chances are that any mistakes you’ve made (whether you know you’ve made them or not!) will be recorded on your credit record. In many cases these mistakes will occur as a result of financial problems you may have experienced – but often you can get a bad credit history without really doing anything wrong.
The majority of problems that will give you a bad credit record will happen if you have problems managing your finances. So, if you miss a credit card payment, default on your mortgage, are declared bankrupt or are given a CCJ (county Court Judgement) against you for one reason or another then this will all show up on your credit rating, for example. These kinds of issues will all count as negatives.
But, other issues can give you bad marks on your credit rating. For example, simple factors like your marital status and whether you have children can give you plus or minus points. The fact is that it isn’t just what you do with your money that comes up on your credit rating – you can have a rating that is less than perfect from a lender’s point of view even if you have never had a financial problem before in your life!
But, there is a key issue here – no matter where your bad credit rating came from. If you have a less than perfect credit score then you look less attractive to lenders when it comes to taking out loans and other forms of finance. The first thing that the majority of lenders will do when you apply for a loan is to look at your credit rating – if they don’t like what they see then they could well turn you down flat. And, things could then go from bad to worse as every rejection that you get when you apply for finance also goes on your credit rating!
Luckily, most lenders will take a better view of bad credit ratings now than they may have done in the past. And, if you find that a mainstream lender won’t deal with you on this basis, then you need to remember that you do have other options when it comes to taking out loans. There is now a whole sector of the lending industry that solely specialises in working with consumers with bad credit so it may be that these specialists will be better placed to help you out.
One last tip – don’t let your bad credit rating cause you further financial problems. Some bad credit specialists have muscled into the market with high interest rates and deals that are not as good as they could be. But, there are hundreds of reputable lending sources that you can work with – the key is just to find them. This is made much easier nowadays if you online to compare rates and deals. Your key aim here is to get the lowest interest rates and the fairest deals you can – after all, you don’t want to make a bad situation worse!
Advanta Business Credit Card
In the competitive business credit card market, some financial institutions have opted to become niche players. This decision to specialize is primarily driven by the need to gain market share.
One of these niche players is the Advanta Bank Corporation. Advanta is touted to be among the largest issuers of business credit cards for the small business market. That is quite possibly an accurate observation since Advanta is known to have focused exclusively on the small business market, and its business credit cards simply reflects this focus on the requirements of small businesses.
You are clearly reminded of this when you visit the Advanta web site to look at their business credit card offerings: there is only one featured card, the Advanta MasterCard Platinum Business credit card. This is a cash back rewards business credit card which offers you 5% discounts on certain items and a 1% general discount, on others.
There is an ongoing drive from their side to partner with more companies that sell products and services which form a part of the normal operating expenses of small businesses, to increase the appeal of their credit card offering.
The Advanta business credit card packages are competitive from a pricing point of view. The zero-percent introductory annual percentage rate on balance transfers runs for fifteen (15) months, which is longer than most other business credit cards. Just as important to the small business owner, the APR on balance transfers after the introductory period is also one of the lowest, at 7.99% fixed interest. The market average is a full percentage point higher. Most other business credit cards have both higher APRs and variable interest rates.
To add luster to their small business offering, Advanta business credit cards distribute the cash back bonuses earlier than many other business credit cards. There is an automatic cash back payout feature which means you start receiving your cash back checks for every $50 you have accumulated immediately. This could help support cash flow to a small measure.
There is, if you prefer, an opportunity to convert to travel rewards instead. Where many other business credit cards will allow free travel only upon reaching 15,000 or even 25,000 rewards points, Advanta business credit cards allows free travel upon reaching 10,000 rewards points.
In keeping with its niche strategy to cater to the needs of the small business credit card market, Advanta – like many other large banks - make a comprehensive library of small business resources available to their business credit card holders where they can access small business guides and small business tools.
Small business guides typically offer business credit card holders assistance in the preparation of business plans and marketing plans, and provide information on specific financial products. There are normally tips on how to win lucrative government contracts as well as tips on how to protect your personal assets. The latter is something most small business owners consider important.
Small business tools generally provide business credit card holders with easy-to-use templates of various official government forms (for tax purposes or for government contracts), samples of business documents such as business letters, contracts, forms, generalized statements of policies, as well as financial spreadsheets to help them manage their finances.