My credit card offers a good means of financing my business at reasonable costs.  There are many reasons why I am using my credit card in my business.

What is a credit card?

According to Wikipedia, a credit card is part of a system of payments named after the small plastic card issued to users of the system. It is a card entitling its holder to buy goods and services based on the holder's promise to pay for these goods and services. The issuer of the card grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user.

A credit card is different from a charge card, where a charge card requires the balance to be paid in full each month. In contrast, credit cards allow the consumers to 'revolve' their balance, at the cost of having interest charged. Most credit cards are issued by local banks or credit unions, and are the shape and size specified by the ISO/IEC 7810 standard as ID-1.

My Credit Card and my Business

In 2006, I bought additional pressure washer units for my poultry farm. These equipments are use for cleaning the poultry buildings of my farm after harvesting the chickens. My original plan was getting the amount I needed from a bank loan but the interest was quite big unlike if I will just use my credit card. So using my credit card was the best option for me. I used my credit card in buying the equipments on installment, taking advantage of the zero-percent interest on equipment purchases offered by the bank. I chose credit card because there was no down payment and the monthly payments were manageable. However, I made sure that I did not borrow more than I could pay. I made it sure that I paid on time because the penalties were big

Other Tips on Using Credit Cards for Your Business

If you are using your credit card for your business like me, please follow these tips. First, in order to maximize your credit, make your purchases right after the cut-off date so it is reflected only in your bill for the next month. Then check your bills to know the interest and other charges of your card. Call your card company to inquire about promotions and their accompanying charges and fees.