credit card

jamesy08

hi all,ive a small business for 6 years,but never had a credit card,applied a few months ago to boi,but they said the account wasnt running well enough,but its vitally important that i get one,as i build timber equipment,and once i have something built i can sell it straight away,and get money straight in,otherwise,i have to wait for a customer to give me a deposit,then go get the timber,so lots of time delays,i just opened an account with halifax,and received my vias debit card,which boi didnt have,ive now also applied for a credit card,with halifax,but they will probaly contact my local branch,what do you think of my chances,any other areas where i could purchase a credit card
thanks jamesy

PCPhoto

if you can avoid credit cards ...Do

the concept of a credit card is designed to make money easier available to you - but also to get more money back from you with interest - you pay interest on a monthly basis - so if you are unable to pay off the credit card debt every month - you will be paying silly money in interest payments....and on top of this you will be using it every month - so debt builds up and interest payments build up.

why not save some extra money over the coming months - and have a float of cash - if you are confident of customers paying then you pay using your own money and get reimbursed when customer pays (or organise a deal or an account with your timber supplier - where you can purchase the timber on credit and pay at the end of the month or when customer pays)

if the banks are not happy with the amount of money you have in your account - tell them tough luck....move your business to a bank who cares about its business customers....or alternatively - organise an overdraft facility (for a fee of approx 30-40per year)
- you are allowed to bring your account into debit at an agreed amount - in which case you would be able to purchase the timber and repay paying mimimum interest (especially compared to credit cards)

jamesy08

Hi Thanks for the reply,thats the problem,the timber companies now want cash up front,as with all suppliers now,and as things are very slow,the cash isnt coming in,so some days,just have to sit around the workshop,and hope a customer comes in,and in the meantime a few days have gone by,and the bills are coming in,i wouldnt be using the credit card constantly,only just to get materials in between jobs,a stop gap,if you get me,is there still an interest charge on the card if you dont use it at all
jamesy

100gSoma

If there is 0.00euro balance owed on the credit card then there is no interest charge just to have the card. Their is a government fee of 30euro per year I think just to have a card, even if you don't use it.
However, if you have a balance owed on the card (which is likely as you will probably use it) the interest can be anywhere from 10 - 25% plus it can be adjusted by the CC company without any notice.
It's a tough situation, and I understand why you need it. Some people speak very favourably of credit cards and their uses, I am not one of those.
I think a majority of people with a credit card end up with a standing balance that they never fully clear, so end up paying anywhere from 5euro to 100euro per month interest on their balance.

Long Onion

To be honest OP, a well managed overdraft facility would be better suited to your needs I would imagine.