Having A Gas Card That You Personally Signed For Is Not True Business Financing

There are many credit card myths floating around these days.  First let’s dispel some of those myths.  One of the most popular misguided beliefs is that credit cards are only available to those who have good credit.  In actual fact, they can be obtained if you have bad credit or no credit at all. 

If you get a higher credit on your credit card, it can be viewed by potential lenders as a bad thing because a higher limit leaves more room for default.  The ideal debt range is between 25% - 50%.  More than that is considered high risk.

It is untrue that settling a charge card balance will delete it from your credit history.  Even though it reflects paid, it will remain on your report.

All it take is a phone call to the credit card company to establish a lower discounted rate of interest, which is a penalty rate for higher interest or late payments or going over a credit limit that is assigned at the onset.  Cutting back these rates by 33%+  can be done just by a phone call, in order to remain competitive with other cardholders. 

Gas cards have many drawbacks.  APR’s are high, starting above 20%.  Many don’t offer fraud protection.  Other gas cards have zero liability for unauthorized transactions.  Often gas cards don’t offer rebates on gas purchases.  Many gas credit cards have instant approval and therefore are not a true reflection of business financing.  In fact, some gas cards are offered free, in the hope you will continue with their service.

Some gas credit cards give rebates, for example, of 1 percent back for all purchases and then six percent back for gas purchases at any gas station.  Others only give small rebates back towards gas purchases and not towards the entire credit card bill.

Hotels are giving gas cards just to fill up rooms.  Some gas cards, like the Exxon Mobil Business Card Program, give you tools to help control your business, like detailed invoices and account online 24/7.  However, this should not take the place of regular business financing.