Credit card companies not loved?

Who’d have thought it? Many consumers don’t particularly like their credit card companies. Newsweek reported Thursday that 78 percent of of people participating in J.D. Power and Associates’ annual customer satisfaction survey said they were considering switching.

The magazine said that now: “It seems like everyone loves to hate their credit card companies…” Some might wonder what took them so long.

Credit card offers–how to pick one

On the same day that the Newsweek story appeared, The San Francisco Chronicle carried a feature under the headline, “4 Tips for Picking the Best Credit Cards.” As the title suggests, it identified four key criteria for judging credit card offers:

1. Credit card rates
2. Annual fee
3. Credit card rewards programs
4. Convenience

The Chronicle’s analysis was excellent as far as it went, but may be a little basic for readers of index credit cards. So let’s beef it up a bit.

Credit card rates

Yes, as the Chronicle says, it’s important to carefully analyze the credit card rates on offer. You need to know whether it’s an introductory rate, and, if so, how long it will last and what the standard rate will be when it expires. You need to be aware that many companies advertise ranges of rates, and you shouldn’t suppose that you’ll be granted the lowest. And you need to be clear about whether the headline annual percentage rate (APR) applies only to purchases, and what rates will be applied to cash advances and balance transfers.

But you also need to be clear that–depending on your circumstances–you may be better off ignoring credit card rates. If you’re the sort of person who invariably pays off their balance in full each month, then it doesn’t matter if the APR is 100 percent because you would never have to pay it.

If credit card rates are important to you, you should check out the Iberiabank Visa® Classic card. At the time of writing, this has an APR that starts at 7.25 percent, which is unusually low. However, bear in mind that you only get this rate if your credit score is exceptional, and that it is a variable rate.

Annual fees

These can add up, particularly if you have a number of cards. But there are still plenty out there that have no annual fee. Blue Cash® from American Express, for example, doesn’t have one. But it still has a good rewards program.

Credit card rewards programs

Credit card rewards programs can be a minefield, and a comprehensive guide would need more space than is available here. However, here are some key guidelines:

• Make sure the issuer can’t unilaterally devalue your hard-earned points
• Avoid programs that allow points to expire unless you’re sure you can use them during their valid period
• Airline miles often only suit people with a particular lifestyle; don’t sign up for them unless you’re sure they’re good value for you
• Steer clear of programs that have high earning thresholds unless you’re sure you can meet them without incurring expense

Convenience

This isn’t much of an issue for most credit card companies, but the Chronicle suggests that you make sure yours has a good ATM network, electronic payment facilities, and round-the-clock customer service.

Other factors–including balance transfer credit cards

If you’re exploring balance transfer credit cards, then you really ought to consider the Citi® Platinum Select® MasterCard®. This card currently offers a zero percent APR introductory balance transfer rate for an exceptional 18 months. That breather from paying interest could allow you to make serious inroads into your credit card balances.

One final piece of advice–card issuers are notorious for “gotcha” clauses that are buried in the small print of credit card application forms. So take the time to understand fully what you’re signing up for. Mistakes at this point can prove expensive later.

Credit Card Use Online

Later today, the chairman of comScore, Gian Fulgoni, is due to talk about his company’s most recent research, which reveals new credit card trends. It shows the very rapid rate at which e-commerce is growing in America, and–appropriately–Mr. Fulgoni will use a webinar (an online seminar) to explore its findings.

A large number of those shopping online use credit cards to pay for their transactions. Because, as the New York Times pointed out a couple of weeks ago, “…it’s generally less of a hassle to get fraudulent credit card charges halted…” than those that appear on debit card statements. Some ultra-cautious online shoppers prefer to use a prepaid card (such as The MangoTM MasterCard® Prepaid Card) to further insulate their lines of credit from fraudsters.

The comScore research suggests that retail e-commerce spending in the U.S. reached $32.9 billion in the second quarter of this year, up nine percent on the same period in 2009. The popularity of online buying grew most quickly in high-income households. Those in the $100,000+ a year bracket increased their online expenditure by 17 percent during that time, almost twice the national average.

Credit Card Trends by City

On Monday, Experian, a leading credit bureau, released its own research into credit card use, and this time the focus was on variations between America’s top-20 metropolitan areas. For example, those living in New York City have on average 3.77 open credit cards, while those in Phoenix, Arizona, have just 2.78. Such variations between the top and bottom ranking cities may sound small, but when you remember how many consumers have no cards at all, and how few have eight or more, those variations are quite revealing.

However, it would be a mistake to assume that those with the highest number of open cards also have the highest credit card debt. The study suggests that the average monthly credit card balance for New Yorkers living in the metropolitan area is $5,713, while for those in Phoenix it is $6,058.

Those in Atlanta have the highest average monthly balance ($6,753), and those in San Francisco the lowest ($5,323).

Corporate Credit Cards

Citi® won a a welcome accolade Tuesday when The Nilson Report named it the number one corporate bank card issuer. The ranking was based on transaction volumes rather than customer service, but, presumably, Citi would with some justification argue that the two are closely linked. In a press release, the bank spoke of:

…a host of online, customizable, reporting tools and integrated solutions…that takes program and report management to a higher level, providing a superior quality business intelligence engine –supporting the need for consolidated data and card-level administration and information.

If you’re in the market for a high-performance business credit card, you should look into the Citi AT&T Universal Business Rewards Card. Depending on your needs, you may also find The Business Platinum Card® from American Express OPEN an attractive proposition.

Credit Card Debt Doesn’t Only Happen to Bad People

There’s a lot of moralizing that goes on about credit card debt, and people who have been smart enough to avoid it often look down their noses at those who’ve got themselves into deep trouble. So it was refreshing to read Trent Hamm’s “confessional” piece in the Christian Science Monitor last Friday.

Trent, who’s clearly neither bad nor unintelligent, described how he left college with “manageable” credit card debt, but found himself a few years later owing $20,000 on his cards. The monthly repayments on that were costing him more than his rent, and he had reached a point where he simply couldn’t satisfy all his creditors. He’s turned things around now and acknowledges his mistakes, but his explanation for his experience illustrates how human–rather than immoral or stupid–his actions were:

Why did I buy? There was a mix of things going on. Poor impulse control. Career-related anxieties. Lots of stress. All of these things were solvable on their own and buying things I couldn’t afford was merely a short-term salve for them. It was easy to forget that pain if I could go home and read a new book or play a new game for a while.

Credit Card Use Overseas

Yesterday’s Seattle Times explored the difficulties that Americans often face when trying to use their credit cards abroad. Banks in many countries (across western Europe, but also elsewhere) stopped relying on magnetic strips for swiping credit cards many years ago. Instead, their cards contain a microchip, and customers never sign for transactions, instead typing their PIN into a keypad.

This undoubtedly reduces queues at check-outs because it’s a faster process than swiping and signing. It also has some security benefits, partly because it’s supposed to be inherently safer (though not perfectly so), and partly because you never need to lose sight of your card. In a restaurant, for example, your waiter brings a portable terminal to your table and conducts the transaction there.

This is all very well, but what happens to Americans, who don’t have chips in their cards? Well, in theory, outlets should print off a slip and allow you to sign. But some smaller ones don’t. And automatic machines that sell tickets, gas, highway tolls, and so forth simply won’t work. So if you’re travelling overseas (and Canada and Mexico are both introducing “Chip and PIN” at the moment), your credit card use could be affected and you probably should carry more cash than you usually would.

Student Credit Cards

Last week (July 19), the Index Credit Cards news blog mentioned a number of student credit cards that could suit those who will soon be off to college. Today’s Detroit News raised an additional point on the subject that’s worth repeating.

If you’re not convinced that your son or daughter is yet ready for his or her own credit card, then you could always order an additional card for him/her on one of your accounts. Of course, the trouble with this is that your offspring could go off on a spending spree with your credit limit.

However, people with American Express charge cards can set (and later change) individual spending limits on each of their additional cards. Now, try that on your husband/wife/partner, and you may well find that the consequent cost of couples counselling outweighs any savings on your card bills. But use it on your son’s or daughter’s additional card, and you can prevent out-of-control spending, while still being able to up the limit in an emergency.

If you’d like to to have the ability to help manage your child’s student spending, then check out the American Express® Preferred Rewards Gold Card, or other American Express cards that offer this functionality.

You could find the best credit card news you’ve seen in ages.

Credit Card Regulation–a Debate

Back before the Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009 was passed, consumer groups and financial industry lobbyists disagreed about the new law’s likely outcomes. Those on the industry side argued that the legislation would dam many of the companies’ revenue streams and force them to increase credit card rates and extend annual fees.

And, of course, to some extent they were right. However, a new report, published today by Pew Trusts, suggests that many of the more apocalyptic predictions have not come to pass. Overall, the impact of the new credit card regulation structure has been positive.

Credit Card Rates

Pew says that advertised credit card rates for people with good credit scores have risen since the law was passed, but that the rate of increase has recently declined. Between December 2008 and July 2009, they jumped 23 percent, but between July 2009 and March 2010 they climbed by only six percent.

Those trends were reversed for people with poor credit scores, with rates increasing by 13 percent in that first period and 17 percent in the second.

It’s difficult to assess how much of these rate increases is a result of the Credit CARD Act, and how much is a response to the losses that credit card companies sustained as a result of the economic downturn.

Credit Card Fees

The story for credit card fees is also mixed, according to Pew. For example, fewer (yes, fewer) cards issued by banks had annual fees in March 2010 (14 percent) than in July 2009 (15 percent), but those that did have fees charged nearly 20 percent more.

Meanwhile, overlimit fees fell away dramatically. Back in July 2009, 80 percent of the credit cards that Pew surveyed carried these fees, but that number had dropped to 25 percent by March 2010. The average amount charged for overlimit and late payment penalties ($39) has remained unchanged, but is expected to drop by August when new Federal Reserve regulations that limit them come into effect.

Balance Transfer Credit Cards

By 2009, Pew says, 88 percent of the balance transfer credit cards it surveyed charged fees for those transfers. In March 2010, 10 of the 12 largest bank-owned credit card companies were charging such fees on 94 percent of their cards. And almost all of the companies that levied a fee imposed a minimum amount.

The rate at which balance transfer fees were levied also rose, from a median of three percent in July 2009 to four percent by March this year. Of course, the fact that those are “medians” means that some are lower and some are higher, and Discover seems especially good when it comes to balance transfer fees.

Indeed, one of its products, the Discover Open Road card currently has a zero percent balance transfer fee, while at least two others (Escape by Discover Card and Miles by Discover® Card) are a full quarter cheaper than the current median, at three percent.

Credit Card Regulation–Pew’s Conclusions

The Pew report’s opening paragraph includes a couple of sentences that pretty much sum up its conclusions:

The Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 was intended to create a fairer and more transparent marketplace, and initial indicators suggest that it is meeting its goals. One recent survey showed that nearly three in four American credit card holders agreed that their accounts are better off today than they were prior to passage of the new law.

Credit Card Trends: “Lies, Damned Lies, and Statistics”

Writers often have odd lives, which may explain why last Thursday afternoon this one was listening online to a business program being broadcast by the London Broadcasting Company (LBC). That’s London, England. You see? Odd.

An analyst was being interviewed down-the-line from New York, and he was discussing that day’s American financial news. He was particularly enthusiastic about the latest figures from the Federal Reserve about consumer credit in general and credit card debt in particular.

The Fed, he correctly said, had reported that Americans had reduced their credit card balances by $7.4 billion in May, which was an annualized rate of 10.5 percent. He then went on to comment that this was proof of a new prudence and resilience among consumers. You are lucky (although you may not think so) to be reading this column, because his remarks very nearly resulted in the computer on which it is being written exiting a first floor window at speed.

Credit Card Debt–The Reality

The analyst could also have told LBC’s listeners that the Fed’s G.19 Consumer Credit Report shows that credit card debt fell by $19.5 billion in the first quarter of this year. However, he is unlikely to have celebrated the fact that only $800 million of that was a result of Americans paying down their balances. According to the Federal Deposit Insurance Corporation (FDIC), the other $18.7 billion was written off (”charged off” in industry jargon) by credit card companies because they’d given up hope of collecting the debts.

Cheerful headlines reporting some other credit card trends need to be taken with similarly large pinches of salt. Over the last couple of weeks, S&P, Fitch Ratings, and the American Bankers Association have all published data that show declines in card delinquencies (overdue accounts), and these have largely been covered in the media uncritically.

However, some analysts believe that these figures are partly a result of all those charge offs. Because they’ve already eliminated so many of the long-term unemployed and uncreditworthy from their customer bases, credit card companies are left with a greater proportion of cardholders who have had healthy credit reports all along. Other experts think that struggling consumers are prioritizing making minimum payments over everything else (including their mortgages) because they see maintaining the line of credit that their credit cards provide as an overwhelming need. They may not be able to keep that up for ever.

Some Good News

All of this doesn’t mean that there are no signs of Americans tightening their belts and being more financially responsible. The Discover® U.S. Spending Monitor, published July 7, showed that consumer spending intentions dropped two points in June. Unfortunately, much of that was due to a fall in economic confidence.

Of course, after all that gloom, it’s important to recognize that life remains more than comfortable for the huge majority of Americans. Indeed, with so many refinancing at record-low mortgage rates, a large section of the population has never had it so good. And if you still have a pristine credit report, you should regularly review the credit cards in your wallet to make sure you’re still getting the best possible deals.

Discover Great Credit Card Deals?

For no better reason than that the company’s name has already come up, let’s look at a couple of offerings from Discover.

The Discover® More® Card – Black has no annual fee, and is currently offering a zero percent introductory annual percentage rate (APR) for the first nine months. After that, the rate will be between 11.99 percent and 20.99 percent, depending on your credit report. This card’s strength is in its rewards program. You get one percent cash back on everything, five percent on purchases made in particular categories that change through the year, and up to a huge 20 percent on certain purchases made through the Discover online shopping website.

While you’re exploring the range, check out the Discover® American Flag Card. Yes, it offers a good deal to the right sort of cardholder, but it would also look just so good in any pocketbook!

Credit Card Rewards that Make You Work

Susan Stellin wrote a heart-felt piece in the New York Times last week. She’d been a loyal user of an airline-branded credit card for some time, but had become increasingly frustrated by the growing number of hoops she was having to jump through in order to redeem her miles. So she changed credit cards.

She wasn’t alone with her problem. Many frequent fliers have found that being tied to their chosen airline has its drawbacks, especially as many fleets practise “capacity control,” which limits the number of “free” seats available on any given flight. This can make booking a trip on a popular route at a convenient time challenging.

Of course, this isn’t to say that everyone should trade in their airline-branded credit cards. If your flying habits mean that your existing card works for you, then by all means stick with it. And remember that many carriers’ cards offer other benefits (access to lounges, upgrades, no-cost insurance, a free checked bag…) that you should factor into the equation.

Credit Scores Can Be Affected

Another reason to think twice before changing a credit card is the impact it could have on your credit score. According to FICO®, the people behind the most widely used credit scoring system, your score could be damaged if you apply for too much new credit or open too many new accounts in quick succession.

Of course, one new credit card application is unlikely to be much of a problem. There’s a second reason to take care when changing cards. Credit scores are sensitive to the proportion of your available credit that you actually use. And, if you trade in a card with a $20,000 limit for one that offers $10,000, your “credit utilization ratio” can suffer.

To be clear, none of this should stop most people from changing cards, and you should only consider not doing so if you’ve recently made a number of other credit applications and/or are using a large proportion of your available credit.

Travel Credit Card Rewards That Really Reward

Susan Stellin’s Times feature mentioned a number of travel related credit card rewards programs that are particularly hot at the moment. Here are a couple of her tips.

The Starwood Preferred Guest® Credit Card from American Express has won a number of awards recently, including Flyertalk.com’s “Best Travel Card in the Americas.” And it’s certainly the sort of deal that could suit many people. You can redeem points for free nights at 940+ Starwood hotels and resorts in 93 countries, or for flights on hundreds of airlines. And the card’s website claims that there are no blackout dates. There’s also a corporate version of the card, the Starwood Preferred Guest® Business Credit Card from American Express OPEN.

The Times also mentions the Chase Sapphire Card. You get a point for every dollar you spend on the card, which you can redeem for travel on any airline–or you can opt for gift cards, merchandise, cash back, and so on. And there’s no annual fee.

It takes a little effort to track down the card that best matches your lifestyle and needs. But failing to do so can cost you dearly–in stress as well as dollars.

The Good Credit Card News

It’s Independence Day so let’s celebrate the fact that today Americans are less dependent on credit card debt than they have been for a very long time. A quick trip to the Federal Reserve’s website reveals the latest figures. In 2008, revolving credit balances (which are mostly made up of credit card debt) averaged $958.1 billion. In April 2010, that figure was down to $838 billion.

Wow. That’s a reduction of more that $120 billion. No wonder virtually all the big credit card companies are reporting falling levels of both delinquencies (overdue accounts) and charge offs (debt written off because it’s uncollectible).

If you’re feeling in a fragile frame of mind, and simply aren’t up to dealing with bad news, then stop reading now. Because reality is about to intrude.

The Bad Credit Card News

The bad credit card news is that all that good credit card news was plain wrong. Yes, balances are down by $120 billion, but most of that is likely to be because card issuers have written off huge amounts of debt. And that money has fallen off the Fed’s revolving credit figures and into the laps of collection agencies.

Worse, as the Wall Street Journal pointed out Saturday, the reason credit card companies are reporting better delinquency and charge-off rates is because: “Some people have been unemployed so long they have simply been washed out of the credit system and no longer have any effect on the numbers.”

Credit Card Users Face Harsh Penalties

Things can be pretty tough too for those who remain credit card users. MarketWatch revealed last week the results of a survey that suggests too many card issuers retain what it calls a “gotcha” attitude to penalty interest rates.

As if credit card rates aren’t high enough already, many companies impose substantial hikes on those who are even a little late in making a payment. And the survey shows that some issuers use language to explain their penalty programs that is at best unclear, and at worse could be seen as deliberately obfuscating.

Chasing Good Credit Card Deals

When it comes to explaining penalty credit card rates, none of the major issuers scored perfectly in the survey, but one that did better than most was Chase. So, if you prefer to deal with a company that strives for clarity in its dealings you could do worse than explore some of its products.

For example, the Chase Freedom Card offers one percent earnings on all purchases. And you can earn five percent when you buy within certain categories (these change regularly), and an amazing 20 percent on online purchases made through specified merchants.

Meanwhile, if you’re seeking a balance transfer credit card, you should check out Slate from Chase. This card offers a zero percent introductory APR on balance transfers, and some nifty tools that could help you meet your credit card debt reduction goals.

And, finally, the Chase Sapphire Preferred Card could be for you if you particularly value travel rewards. And, right now, you could earn 25,000 bonus points if you spend $3,000 on the card during the first three months that you have it.

Click the links for details, terms, and conditions.

Economic Trends Positive

Sunday’s New York Times painted a positive portrait of a U.S. economy that’s quickly regaining health, strength, and confidence. Of course, the piece acknowledged that there’s a way to go before things are fully back to normal but the overall tone was one of restored vigor.

Some of the statistics quoted in the Times’s article include:

• March saw orders for long-lasting manufactured items increase sharply
• Sales of new homes leaped 27 percent that month
• Consumer spending–according to some economists’ estimates–expanded by four percent in the first quarter of this year
• Exports in January and February were up 15 percent on the same time in 2009

Credit Card Trends Also Positive

Much of the data surrounding credit card use are similarly positive. For example, the Federal Reserve’s figures, published April 7, for February credit card debt showed that it dropped at an annual rate of 13.1 percent. And Americans owed $100 billion less in credit card debt that month than they did back in the last quarter of 2008.

Meanwhile, Visa Inc. published its fiscal second quarter results Wednesday, and these exceeded most analysts’ expectations and prompted the company to increase its 2010 forecasts. Joseph Saunders, company chairman and chief executive, said that Visa: “…is increasingly optimistic that the worst of the recession is behind us… Our performance was fueled by higher-than-expected payments-volume growth.”

In other words, credit card use is up. In fact, during the quarter ending March 31, 2010, the value of transactions on Visa-branded cards jumped 13 percent on the same period in 2009–to $745 billion. The number of transactions also rose over the same period: by 14 percent to $10.6 billion.

Credit Card Companies Also Doing Better

Many card issuers (Visa is a debit and credit card network; not the same thing) are also doing much better this year. But, arguably, American Express is the star in the credit card company firmament.

Last week, the company published its first quarter results, and they were even more impressive than Visa’s. By many measures of credit card trends, American Express is the leader, or at the very least, one of them.

American Express a Leader

For instance, AmEx card customers spent 23 percent more in the first quarter of this year than during the same period in 2009, significantly beating Visa’s rise in credit card use. And the company had to write off (”charge off” in the jargon) less problem credit card debt than last year and than most of its competitors.

There is a wide range of reasons for the company’s strength:

• AmEx is a payment network as well as a credit card company
• It offers charge cards as well as credit cards
• It has maintained conservative lending policies
• It has a big presence in the corporate market

Of course, American Express executives would argue that–more importantly than any of those–the company offers superior products. And, depending on your needs, they make a good point. Four AmEx cards that are particularly worth checking out are:

• American Express® Gold Card
• American Express® Premier Rewards Gold Card
• Blue Cash® from American Express®
• Blue Sky from American Express®

Credit Cards Less Popular than Debit Cards

According to Visa Inc., it was back in the last quarter of 2008 that the total dollar volume spent on its branded debit cards first exceeded that spent on its credit cards. Does that mean that a tipping point has been reached, and that from now on it’ll be downhill all the way for credit card use?

Credit Card Debt Hangover

Well, maybe. It’s certainly true that, during the recent recession, many Americans were seriously spooked by their exposure to credit card debt, and resolved never to leave themselves so vulnerable again. So it may be some time before the country sees the sorts of high levels of credit card debt that existed a few years ago.

But it’s much too soon to consign credit card use to history. Because credit cards can do things–valuable things–that debit cards simply can’t.

Credit Cards and Debit Cards: Some Differences

Everyone knows that debit cards deduct money straight from your bank account while credit cards give you an opportunity to spread payments. However, in addition, credit cards usually offer better legal protections against card theft and fraud, including identity fraud. They also make it much easier to rent cars and reserve hotel rooms.

Credit Card Rewards Rock

But–also very importantly–credit card rewards programs are usually much, much better than those (if any) offered with debit cards. Monday’s New York Times had a feature on debit card rewards that showed just how miserly they can be.

For example, those who belong to the Chase Extras program, but choose not to pay an annual fee, receive a dollar for every $5 they make in signature purchases. The Times says that a cardholder would have to spend $25,000 in order to earn a $50 Macy’s gift card.

Compare that with the Chase Sapphire Card. You get a point for every dollar spent on a wide range of purchases, two points on airfares booked through Ultimate Rewards, and 10,000 bonus points after making your first purchase. All this, and the card doesn’t have an annual fee.

Not Just Chase

It’s not just Chase whose credit card rewards program outperforms its debit card scheme. It’s pretty much universal.

Take Citi. Sign for a debit card purchase and the standard rate is one point for every $2 spent. Use a PIN and it’s a point for every $3. Compare that with a Citi® Diamond Preferred® Rewards Card. The Citi website says (see the site for terms and conditions) you get:

• 5 ThankYou Points for every $1 spent on purchases at supermarkets, drugstores, and gas stations for 12 months, 1 ThankYou Point thereafter
• 1 ThankYou Point for every $1 spent on all other purchases
• No annual fee

Credit Card Deals Too Good to Die

There’s not much doubt but that the once-passionate love affair that consumers for years carried on with their credit cards has faded recently. But as long as credit card use continues to offer real advantages, Americans will still include them in their wallets.

Credit Card Debt and Small Businesses

The Herald Tribune made sobering reading Monday (April 19) for anyone who owns a small business, and who also carries credit card debt. That’s because it ran a story that said: “…every $1,000 increase in credit card debt increases the probability a firm will close by 2.2 percent.”

It would be comforting to imagine this is one of those statistics than imaginative journalists dream up when bored and hungover on Sunday afternoons. But, sadly, not. It’s a direct quote from a study published by the Ewing Marion Kauffman Foundation (The Foundation of Entrepreneurship), and written by Dr. Robert H. Scott, who’s an assistant professor of economics and finance at Monmouth University.

Credit Cards and the Entrepreneurial Myth

Dr. Scott’s report, entitled The Use of Credit Card Debt by New Firms, highlights how leveraging credit cards to finance ventures has become a part of the mythology of American enterprise:

United States pop culture is filled with many examples of creative entrepreneurs using credit cards to jumpstart their businesses. Spike Lee’s first movie was funded by maxing out his credit cards, which resulted in launching his career as a director. The Blair Witch Project, a film that grossed more than $250 million, was funded almost exclusively with credit card debt totaling around $35,000…

Unfortunately, the unwelcome outcome for most who risk all on a throw of the metaphorical dice is that they lose all. The reason Spike Lee and the producers of the Blair Witch Project are so famous is only partly because they make (or, maybe, made) good movies. It’s also because they beat the odds. And–by definition–that gives them rarity value.

The Business of Credit Card Use

The Herald Tribune piece suggested, at least in part, one reason why credit card use is now seen by small business owners as essential. There was a time–not that long ago–when new ventures were mostly funded by investments from the entrepreneur’s friends and relations. But in the current economic climate, few individuals feel secure enough to bet their future on someone else’s vision, no matter how loved those budding businesspeople are.

When a Credit Card Offers Business Benefits

Of course, just because credit card use must be carefully managed by entrepreneurs doesn’t mean that business people should shun them. On the contrary, ABC News yesterday (April 18) singled out one business card that provides exceptional rewards for users. The ABC News report said:

…I’m a fan of the American Express Business Platinum Card®. The Platinum card lets you convert points from your Platinum card to frequent flier miles on multiple airlines, and you can redeem your points at various major hotels including properties. I’ve also saved hundreds of dollars redeeming my points for Hertz car rentals, even in the peak summer season.

And the writer went on to stress other advantages, including access to various airport lounges and significant discounts at hotels and resorts. Other American Express business credit cards that are worth checking out include:

TrueEarnings® Business Card from Costco and American Express

Gold Delta SkyMiles® Business Credit Card from American Express

Starwood Preferred Guest® Business Credit Card from American Express