Credit Card companies

In this article I will show that the credit card card compamies are run in a format that is totally against you. That, it is impossible to accept the deals they offer you and that you can do without them easily. Information for this subject is actually related to the article on credits cards.

In the referred to article I talked about using credit cards for consumption purposes but this article is about the use of cards for business purposes. This article shows that you really do not need the credit cards and hence the credit card companies and that there is always an easy way to steer clear of these pitfalls that they create for you. If you follow my simple recipes you will see that they will be forced to change their offerings so that they will be more favorable to you.

Credit card companis are like any other companies out there to make a dollar. Although it may be a good idea at times to use a credit card company service to get a borroweing power for current use and hopefully pay it off later with some interest, in general this is not going to be the case. This all ties in actually wih the concept of a busines loan. The idea is that you could get some funds on a shosrt term basis and invest the funds into a business activity and produce a rate of return that is supposedly larger than the return you have to pay the credit card companies. But you see the catch is that your investment is inherently an activity that is built on selling something for profit. But this activity may or may not be fruitful. There is no guarantee in business. So the borrower is essentialy taking a big risk. But notice that the lender is not taking any risk at all. They are to be paid their money on time and with interst and the slightest miscalculation on your part in the setup of your business can lead to a disaster. It also depends on the cost of the loan and the business management of the business that you invested in. Theoretically spaking if the project was well conceived you should be able to pay off the debt.

As you can see use of credit cars for business or investment purposes is extremely dangerous. First your projet may not be well-conceived. You may not know enough about the business you are in or are trying to start. Remember a business plan is your brain child and you are partial to it and will defend it tooth and nail and will be very excited about it and will be totally "committed" to it. But the real life has no favorites and your business plan can fail very eaily and simply, before you even know it. But the credit card companies are going to need their over 29% interst from you no matter what. You will find that you are against heavy odds and will have trouble surviving. You will need a cold analysis of your business and often will find that your plan is not well conceived or that you cannot fully capitalize it and hence it cannot take off. It is not for nothing that of the great majority of businesses started each month only less than 10 percent are still there after 3 short years. You will of course learn more about your busines in the process but then you will not have ther resources to conmtinue it and to steer clear of the mistakes.

I suggest that you examine your business with cold analysis and you will see that credit card use of financing is simply murder for your business and should be avoided at all cost. If you did that and many others then the credit card companies will have to modify their offerings. You can see evidence of that in may specials and zero percent interst and balance transfer offerings. But they are all traps. Stay away from them and stay alive, free and independent and avoid sleepless nights.

And if this means that you canot work with your brain child that is your business plan then that is what it is...work for someone else instead... and bide your time for a better turn of events.

You need to be cold, hard and may be without a business but secure and happy...as compared to a business owner runing around doing paper work for the local, state and federal goverments and arranging fincacing for your business plans and getting more in debt by the day and selling and convincng your friends and relatives and embarrassing yourself... you decide...

Basically before your business even takes off you will be just a clerk for the governmnet doing paper work for them and not being paid for that either...

So what do you do..?

Find alternative sources of funds..avoid the banks and credit cards as much as possible...remember they want no risk but a healthy stream of income...find people that are willing to take the risk with you.. or... just forget the whole thing...

There is just no way you can create a business that earns over 29% rate of return without a huge initial investment....You and me aren't going to get one going ... the great business success stories they tell you are one in a hundred thousnad .... and are basically just that ...stories...

And here is a tip ...avoid credit cards as much as possible....but avoid CAPITAL ONE cards like the plague that they are....Do some research on them and find out...

 Capital One Cards ,...the ones to avoid at all cost....!!!

RH