Business credit cards or corporate cards are issued to corporate executives or small business holders to cater to their specific needs. This specific category of credit cards has been used and misused and here we are going to talk about both aspects of business credit cards as more and more people apply for these to borrow money in UK.
Credit cards facilitate business transactions and provide loans without collateral to the business holder/executive, depending on credit limit extended by the bank/lending body. Credit cards carry the normal features of a regular business cards along with added features of a business credit card, these may vary across different banks.
Security is one of the major concerns while extending credit cards. Credit card information can be lost due to human carelessness or due to dysfunctional software. Security is a concern in spite of the measures adopted by lending institutes, the aim is to control security to manageable limits before we can reckon of really eliminating it. Business credit cards may also be misused by employees as there are possibilities that credit meant for business expenses might be used for personal expenses by dishonest employees.
Business credit cards help avail loans without collateral security in majority of cases. Attractive features include less paper work, waiving of stock statement, simple manageability of huge amounts of cash via a small plastic card, simplified application, availability of scoring models for application, easily accessible reviews, lucrative repayment schemes etc. there are schemes like instant approval credit cards or guaranteed approval credit cards for credit cards in UK.
Typically business credit cards take care of finance needs in more ways than one. Apart from extending loans business credit cards facilitate efficient management of accounts and business holders can avail facilities like unlimited credit cards issuable to employees with a defined credit limit. Some credit cards companies even offer 0% credit interest up to 12 months. Though these offers may have some applicable conditions like 0% interest chargeable only on balance transfers.
Credit cards are the simplest way to obtain loans. Simple cash availability may encourage customers to avail the facility more frequently, paying the amount before the grace period is crucial if you do not want to make high interest payments along with the amount borrowed, it might turn out to be expensive money.
TA Honey
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How does credit card apr work?
Ok, i questioned a question concerning credit cards in general and more info would be fantastic.
But something i want to make sure get’s answered for me is the apr, so I’ll question it here in a seperate question.
How does it work?
let’s say i have a 14.99 apr.
and i buy a 500 dollar item.
will i be charged interest straight away?
or is the apr only charged after a year?
how does that work?
thanks. :]
The interest is charged on any amount carried over between two statemet cyclecs.
The interest on the $500 buy would be $12.22 ($6.21 per month times the two months cycle).
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Most credit cards have a 25 day grace period. If you don’t pay the balance off in full by the payment due date of your first statement, you will be charged 14.99% each month on any remaining balance until it is paid off.
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