Discover Small Business Report

Looking for a Credit Card for Christmas Shopping? Before you submit a credit card application, first review the main points which will help you choose the right credit card for your needs.

What Charges You'll Make - If you're going to use the credit card mainly for booking airline reservations and hotels, it might be best for you to get a travel credit card that offers sky miles and hotel points or cashback. If this will be an emergency credit card only, then your main concern may be for a low interest rate credit card with low fees.

When You'll Repay Charges - Will you pay off credit card charges in full every month, or will you carry a balance month to month? If you're going to carry a balance, you want the lowest possible interest rate as well as a low introductory rate. But if you'll payoff balances in full every month, then interest rate really doesn't matter so no annual fee and/or a long grace period would be a bigger concern. If you're going to carry a balance, be concerned about how the finance charge is calculated. The most common method is the Average Daily Balance, which means that the daily balances are added together and then divided by the number of days in the billing cycle. Stay away from credit cards that compute the balance using two billing cycles, as this method costs more money in financing fees.

What Amount You'll Charge - If you're going to use the credit card for all your monthly expenses, then you need a card that has a high credit limit and a high cashback percentage.

More info about Interest Rates, Credit Limits, Incentives, Fees and Penalties

Interest Rates - The interest rate (Annual Percentage Rate) APR can either be a fixed rate or a variable rate that is tied to another financial indicator, most commonly the prime rate. With a fixed rate credit card you know what the interest rate will be every month, whereas a card with a variable rate can fluctuate. Of course, even the interest of a fixed rate card can change based on certain events, such as paying your credit card bill late, exceeding your limit, or simply because the credit card issuer decides to change it after providing you ample advance notice.

Credit Limit - This is the amount of money the credit card company will let you charge to the card. This amount varies depending upon the card offer and your credit history. Be sure to get a credit card with an ample limit, because getting close to your max can hurt your credit score. Just remember that you don't have to max out your limit just because it's available.

Incentives - To compete for and to gain customers, many credit card companies offer rewards. Even if you normally use cash, why not use your credit card and then use the cash to make the payment during the grace period? You still won't pay interest and meanwhile you'll rack-up rewards. A credit card with 5% cashback will earn you $5 for every $100 charged. If your total bills come to $2,000 per month, you'll earn a free $100 every month. Look for a rewards program that you'll use and which offers flexibility, such as cashback or travel.

Fees and Penalties - Compare common charges such as late fees, overlimit fees, balance transfers, cash advances, and for making payments by telephone. Regarding balance transfers, look for credit card offers with no transaction fees and zero percent interest for at least 12 months.

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Discover Small Business Report

By Credit Federal | Published 10/1/2008

Discover(R) Small Business Watch(SM) reports that business economic confidence is declining sharply.

Economic confidence among small business owners declined sharply in September amid rising concerns about economic conditions for their businesses and a bleak vision of where the economy is headed. The Discover(R) Small Business Watch(SM) fell to 74.6 last month, down 12.3 points from the previous month. As for confidence, 3 out of 4 small business owners expect more national economic decline.

Key Findings:
42 percent of small business owners say they have experienced cash flow issues over the last 90 days, unchanged from August.
51 percent believe economic conditions for their businesses are getting worse, up from 44 percent in August.
The number of small business owners who think the U.S. economy is getting worse rose to 73 percent from 60 percent in August; only 7 percent of small business owners feel the economy is getting better, the lowest rating in the Watch's history.
57 percent rate the economy as poor, up from 51 percent in August; 32 percent rated it fair, 10 percent rated it good and 1 percent rated it excellent.
28 percent plan to increase spending on business development over the next six months, which is unchanged from August; 44 percent plan to decrease spending and 26 percent anticipate making no changes.

Sixty-seven percent of small business owners say that despite the current economic climate, they have not been forced to borrow money to pay bills for their business. In addition, 73 percent say gas process are having a negative effect on their profitability. For those who are seeking loans, 72 percent say it is harder to borrow money right now.

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Discover Small Business Report - by <a href=http://creditfederal.com>CreditFederal.com</a> <div style="text-align: left; font-family: Verdana;"><a target='_top' href="http://creditfederal.com/discover-card.html">Discover(R)</a> Small Business Watch(SM) reports that business economic confidence is declining sharply. Economic confidence among small business owners declined sharply in September amid rising concerns about economic conditions for their businesses and a bleak vision of where the economy is headed. The Discover(R) Small Business Watch(SM) fell to 74.6 last month, down 12.3 points from the previous month. As for confidence, 3 out of 4 small business owners expect more national economic decline. Key Findings: 42 percent of small business owners say they have experienced cash flow issues over the last 90 days, unchanged from August. 51 percent believe economic conditions for their businesses are getting worse, up from 44 percent in August. The number of small business owners who think the U.S. economy is getting worse rose to 73 percent from 60 percent in August; only 7 percent of small business owners feel the economy is getting better, the lowest rating in the Watch's history. 57 percent rate the economy as poor, up from 51 percent in August; 32 percent rated it fair, 10 percent rated it good and 1 percent rated it excellent. 28 percent plan to increase spending on business development over the next six months, which is unchanged from August; 44 percent plan to decrease spending and 26 percent anticipate making no changes. Sixty-seven percent of small business owners say that despite the current economic climate, they have not been forced to borrow money to pay bills for their business. In addition, 73 percent say gas process are having a negative effect on their profitability. For those who are seeking loans, 72 percent say it is harder to borrow money right now. Apply for a <a target='_top' href="http://creditfederal.com/small-business-credit-card.html">business credit card</a>, or for consumer rewards such as a vacation or <a target='_top' href="http://creditfederal.com/travel-credit-card.html">travel credit card</a>. </div> This article provided courtesy of <a href=http://creditfederal.com target=_new>www.CreditFederal.com</a>, a personal credit resource of good or bad credit credit cards and loans.

Credit Tip: Need a high limit for Christmas credit card charges? If you have bad credit, consider a personal loan by refinancing your mortgage. Even if you have cash to buy Christmas presents, we recommend using a prepaid card to make purchases because it's safer than carrying cash.