April 2,2009
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Finding the Right Credit Card Balance, Pt.2
Something for every situation.Small business: Whether just starting out or well-established in business, credit cards have become the most common source of financing. Other types of loans are becoming scarce. Credit cards are still fairly abundant for business accounts and offer very attractive rewards bonuses (read "Choosing the best Credit Card Rewards", "The Best Bang for the CC Rewards Bucks", "Guidelines for Choosing the best CC Rewards" and "Small Business Financing Tied to Credit Score" for some good advice).
Do the math: We live in turbulent times. The economy's a rollercoaster and we're seeing once-in-a-lifetime conditions (we hope). Look around...0% APR credit cards that pay you 5% more in addition. $60 free cash over six months for making a $1 purchase each month. It's what I'm doing right now. On the other hand, opening a $100 bank account at WaMu, will earn another $100 after three months. No fees or monetary expenses other then leaving an account open for three months. You can even spend most of that money any time along the way. 5.25% CDs, using money saved from 0% APR credit cards. It's all out there. If you're disciplined and financially savvy, seek opportunity. Just remember – NEVER gamble with living expenses.
You're up against the wall: Face it, none of us are immune to calamity. Whatever the reason, we can find ourselves ‘between the moon and NYC'. Things can change quickly when we least expect it. It is these times when we know we've lived right by not finding ourselves helpless with no cash or credit cards to draw from. My friend nearly lost his quarter-million dollar home because of not having $1,000 for legal council. (By the way, you still need to keep lawyers on a short leash.) Somebody's dying, you'll be fired if your car is not running by tomorrow, etc. Do what you have to do, but not with reckless abandon.