If you are a small business with solid vendor relationships and you’re looking for a good way to stretch payables, consider using trade credit.

Simply put, trade credit means that you purchase goods or services from a vendor who finances the purchase by delaying the date at which the price is due or allowing installment payments (typically net 30-, 60- or 90-day terms), often with no down payment or interest. It can take the form of a delayed payment for purchases, sales on consignment, equipment loans or a variety of different options to assist you in financing inventory and other purchases.

It allows you to use cash on hand to market and grow the business while waiting for money from sales or customers you’ve extended terms to before they pay their bills.

In most cases, your personal credit won’t come into play. You should also ensure that your trade credit agreement complies with all state and federal agency regulations, such as licenses and permits, as well as complying with the lending market requirements

Lenders, including those granting trade credit, want to know you are a legitimate business and will verify that through several third-party sources, including simple steps like calling directory assistance to see if your business phone is listed. When creating a trade credit agreement, review it with your lawyer to make sure the terms both serve your business and keep you and the vendor in compliance with all regulations.

One note: When vendors are exploring the possibility of granting trade credit, they’re not going to be as concerned with your overall debt as they will with your ability to pay your debts from cash flow. So if you can show them realistic cash flow projections and a solid cash flow history, it helps a great deal.

Like any credit, trade credit needs to be managed properly: Don’t use it when you don’t need it. There’s also a trade-off in using trade credit: A higher up front purchase price and loss of access to any early-payer discount programs a vendor might offer. But if you need to hang onto your cash to grow and operate the business, it makes sense.

Source: Wells Fargo Small Business & David Gass, President & CEO, Business Credit Services, Inc.

Platinum credit card are usually offered to people who can be commended for keeping their accounts well in order. Beside that each company that issues platinum cards has different standards and features for their platinum cards and labelling the card as “platinum” is just a mean to differentiate it for the other offers.

If you are thinking about applying for a platinum credit card here are a few things you need to keep in mind:

• Platinum card is only one of the offers
  Financial institutions that issue credit cards have many different products. Each of them allows you to make purchases on credit, but they each have different features (low interest rate, no annual fee, discounts for purchases, reward points etc). Some credit card company may also offer more than one platinum card, the common characteristic is that the platinum card is loaded with features for their best customers.
• General Platinum characteristics
  In general, a platinum credit card has a high spending limit, low interest rates and special features that are designed to make it attractive to those who use it often. Those features may include cash back, special rewards, airline miles, car insurance, travel emergency services, extended warranties etc. Sometimes they have an annual membership fee you must pay in order to keep your card, but not always.
• Platinum is only good for you if you use the services
  In other words, even though these types of cards often require impeccable credit, don’t automatically assume that a platinum credit card is the best card for you. If you’re carrying balances on other cards for instance, you may do better with a balance transfer card that offers 0% interest rates for balance transfers. You may find that an option that offers a discount on petrol prices is the best choice for you if you travel a lot, or a card that give you air miles if you enjoy flying for pleasure.
  If you still think that a platinum card is good for you here is a list of the possible offers

  Advanta Life-of-Balance Platinum Card	APR 9.99%	No Annual Fee
  Chase Platinum MasterCard®	APR 14.24%	No Annual Fee
  Hilton HHonors® Platinum Credit Card	APR 18.24%	No Annual Fee
  Chase Flexible Rewards Platinum Visa® Card	APR 14.24%	No Annual Fee
  Discover® Platinum Card	APR 10.99%	No Annual Fee

As a general rule households should not carry lines on credit cards that exceed 20% of gross income. This is because lenders view all open credit lines as potential debt. Too much unused credit may affect a person’s ability to qualify for a home or car loan.

But if you believe you are well within that 20% here are some tips to increase the limit

• Ask periodically
  You can probably request that your credit limits be increased about once every six months as long as you put yourself in a position to deserve an increase.
• Improve your credit
  In general, the better your credit, the thicker your initial credit lines tend to be. Also the maximum credit line reachable is higher for cards issued to people with good credit.
• Abide by the terms
  First and foremost, credit card holders need to remember that to get a higher credit card limit, they must abide by the terms and conditions of the credit card company or bank.
• Respect the limit
  Always spend within your credit card limit because doing so means that you are capable of controlling your expenses.
• Use the card regularly.
  Don’t keep your cards for emergency use only. If you use your credit cards sparingly, banks and credit card companies will be unable to understand your spending and pay-back behavior.
• Pay off the balance
  Never make minimum payments. Instead, try to pay for the entire outstanding amount. This will be a prove of your credit worthiness which is the most important thing for getting a higher credit card limit.
• Avoid late payments
  Not only will your payment increase, but you may also have to pay an additional fine for not clearing bills on time. This will also dim your chances of getting a higher credit card limit.

The market niche of people with bad credit is fortunately seen as a business opportunity by many financial institutions that are willing to invest in it.

Here is a list of the top offers if you have poor credit ratings

However here are a few things you need to keep in mind:

• Poor credit rating will cost you money
  When looking for a credit card with bad credit you should expect to be offered a pretty high interest rate. You may also be offered cards with an annual fee – don’t turn them down straight away as the fee might bring your typical Annual Percentage Rate (APR) down.
• Use the card to improve your credit rating
  If you ensure you repay each month so there is no charge, after a year you will have built sufficient credit history to enable you to move to a card with a more competitive rate of interest.
• Avoid multiple application for credit
  Multiple applications for credit, successful or not, can be an issue. Each time someone applies for a card a credit search is undertaken. Each search leaves a “footprint”. Too many footprints can trigger warning bells for lenders.
• Make sure the card reports to the 3 credit report agencies.
  An important consideration for individuals with bad credit is that the bank that issues the card makes monthly reports to the 3 credit bureaus. This will allow you to improve your credit status little by little, which is the whole point of having the card in the first place.
• If you can’t get a regular credit card try a minor credit card
  A department store, gas company or some other smaller credit card will help you rebuild that credit. If you can handle a Macy’s or a Texaco card, major card companies will be impressed.
  Just make sure that the issuers of department store cards reports to the credit bureaus
• If you still can’t get a card try a co-signatory card
  You can ask a relative or friend to co-sign for a card. But don’t mess up because friendship and love are in the mix.
• Consider a secured card
  With a secured card you put up your own money (into a savings account) and that amount (or part of it) is the credit line for your card. Put in $1000 and you could have up to a $1000 credit line. This will be useful only if you pay off every statement. In this case you are letting creditors know that you can handle credit again

The first thing to do to get out of credit card debt is to take a hard look at your finances and determine how much you can realistically afford to pay each month. When people track their spending every day for a month they get a firm handle on where their money is actually going. This will usually bring a 20 percent saving because people will start to cut back.

Here is some advice to get out of debt

• Gain control of the urge to splurge
  Has hard as it sound this is the is first part of digging your way out of debt. Below are some tricks that can help you accomplish this goal.
• Leave your credit card at home.
  Surveys done by Consolidated Credit Counseling Services indicate consumers are likely to spend more using a credit card than when paying in cash.
• Start making a financial plan today.
  LendingTree’s 2004 Smart Borrower Survey found 63 percent of those moderately to extremely concerned about their overall level of debt, do not have a financial plan to get rid of it. Procrastination does not pay the bills.
• Define the amount to allocate to credit card payments.
  After tracking their spending, people can better decide how much they can afford to pay toward credit card debt.
• Attack the balance with the highest APR
  People are tempted to pay off low-balance bills first and eliminating a bill or two. Instead you should start by paying the minimum payments on the cards with the lowest interest rates. On highest interest rate card, pay all the rest of your allotted money. Keep doing that until you have paid off the card with the highest interest rate, Then, move the next highest interest rate card into that position and keep paying down the highest rate cards first.
• If you have a saving account use the money to pay off debt.
  Using money sitting in a savings account (that’s most likely earning less than 2 percent interest) to pay off credit cards (that may carry an 18 percent interest rate) could be a far wiser investment.
• Consider a debt consolidation loan.
  You can benefit from lower interest payments if you transfer the balances from high-interest credit cards to a lower-interest loan such as a home equity loan or home equity line of credit.
• Call Consumer Credit Counseling Services
  They offer free services to debtors, and they will negotiate with the credit card companies for you.
• Use a debt workout/debt reduction firm
  These firms will offer their help for a fee. For example if you owed $5,000 on a credit card the firm will work out an agreement with the credit card company to pay $2,000 instead of $5,000 as settlement in full on the debt. Be aware however that this type of workout will affect your credit. Someone who has done a credit card debt settlement would be considered a six on on a scale 1 to 10, 1 being the best score. For someone who started as a 1 or 2 this would be a dramatic devastation of their credit. On the other hand, if an individual already shows multiple accounts on their credit report that have been charged off by creditors they may already have a credit score of approximately 9. For these people the credit will improve from very very bad to only plain
  bad.

Credit card companies use a three-digit credit score to determine eligibility.  This score is based on the information contained in your credit report. And the interest rate you will be charged is based on your credit score as well. By improving your credit score as much as possible you might be able to obtain a credit card and get the best interest on it and by doing so save in credit card interest charges. Each lender sets its own guidelines for issuing credit. Credit scoring is usually based on the FICO model, which ranges from about 300 to 850. Other lenders might use their own in-house scoring systems or another scoring model.

The information below offers general guidelines

• Credit score 720 or higher [A rating]
  With this score you can easily obtain a credit card at the best rate getting approved online in a few seconds.  Some of the requirements to get such a rating are
  • You have not been late with a mortgage payment in the last 2 years
  • You have been late on your loan payment at the most 1 time within the last 1 to 2 years
  • Good/excellent credit during the last 2 to 5 years; no bankruptcy
• Credit score 620 or higher [B rating]
  With this score you can get approved, but not at the lowest rate. You will get such rating if
  • You have been late with a mortgage payment 2 or 3 times in the last year
  • You have been late with a loan payment 2 to 4 times during the last year
  • You have no 60-day late mortgage payments; if filed bankruptcy, it must be discharged 2 to 4 years ago
• Credit score 580 or higher [C rating]
  With this score you will have trouble getting approved.  Very high rates. The lender might ask you to get someone to co-sign for you. Examples of reasons for getting this rate are
  • You have been 30 days late with a mortgage payment 3 or 4 times in the last year
  • You have been 30 days late with a loan payment 4 to 6 times during the last year
  • If you filed bankruptcy, it was discharged 1 or 2 years ago
• Credit score 550 or or higher [D rating]  
  Serious trouble getting approved.  Co-signor required. Examples of reasons for getting this rate are
  • You have been 30 days late with a mortgage payment 2 to 6 times in the last year and 60 days late 1 to 2 times
  • You have a few 90 and 120 day late loan payments during the last year
  • If you filed bankruptcy, was discharged within last 12 months
• Credit score under 550 [E rating]  
  Unlikely to be approved. Examples of reasons for getting this rate are
  • You have a pattern of 20, 60, 90 and/or 120 day late mortgage payments
  • You have a pattern of 20, 60, 90 and/or 120 day late loan payments
  • You may have a current bankruptcy or foreclosure

Credit card issuers are very willing to give away cards to college students with no credit history and no income.That is because the credit card companies are willing to gamble that parents will bail out their kids if they get into trouble.

Here is a list of the top offers for students:

There is choice but both parents and students should be aware that many credit card issuers are looking to make some easy money off college students. Here are some things to consider:

• Look for hidden fees
  Certain issuers may hit the cardholder with a number of fees or gift that require the cardholder to keep a balance on their credit card consequently paying high interest.
• One card is usually enough
  Trouble often begins with an individual student carrying too many credit cards.
• Use the card wisely
  Excessively use of their plastic could leave young people in serious debt. Four years of reckless credit spending can put a serious dent on their future finances.
• Be aware that you are building credit history
  Bad credit history racked up during the college years can haunt young people when they try to enter the workforce.
• Be aware of identity theft
  Careless handling of on-campus credit card offers can leave students open to identity theft.
• Choose a card with low interest rate after the initial sign up period
  Although many cards offer introductory rates of 0% for the first six to 12 months, student should find a find a credit card with an annual percentage rate in the mid-teens, or about 16% to 17% or below, and to avoid altogether any credit card with an APR over 20%.
• Consider rewards credit cards
  If the student has control of his or her finances and pays off their card balance each month a rewards credit card is the best choice. This is a card which provides incentives as points when charging such student expenses as books, groceries, or gas.
• Choose a card with a grace period
  If you doubt you can make your payments on time you can choose a card with a grace period of least 20 days.
• See if the Citi mtvU Platinum Select Visa Card for College Students is for you
  Among the credit cards that experts recommend for college kids, the Citi mtvU Platinum Select Visa Card for College Students occupies the top spot on many lists. Experts highlight the fact that the card offers points for students who pay their bill on time, as well as for earning a good GPA
• If you can’t get the hang of responsible credit card use, don’t get a card.
  It is much worse for a student to enter the workforce with bad credit history than with no credit history at all. As the College Parents of America’s Boyle states, it is not necessary for young people to build a credit history while in college. He believes that employers are not expecting recent grads to have a credit history, with a college degree in itself helping to establish credit.

Getting your first credit card might turn out to be more difficult than anticipated because you might not have an established credit history. Having no credit history is considered as detrimental to your credit application as a bad credit history. If you are a student you could be spared the pain since credit card issuers are very willing to give away cards to college students with no credit history and no income. Two-thirds of college students have credit cards because banks and other issuers are willing to gamble that parents will bail out their kids if they get into trouble.

However if you are among the one third that never got a card here are some steps you might take to succeed in your quest.

• You should start by getting a copy of your credit report
  Credit card and mortgage payments are regularly reported to the three credit bureaus (Equifax, Trans Union, and Experian), but most consumer payments including rent, insurance and even student loans are not, unless there’s a problem. How you will be able to proceed depends on what is shown on your credit report. If you don’t have a credit history you will have to take the following extra steps.
• Apply first at the bank or credit union where you have a checking or savings account.
  Most of us have at least a checking account. It may be easiest to get a credit card from the same bank. If you are a member of a credit union through your employer or through membership in an organization explore their credit card. Banks and Credit Unions may be more willing to give you a card if you have direct deposit of your pay check and automatic payment from your bank account to the credit card account.
• If you can’t get a card from a bank you can build a credit history over several months with a department-store or gasoline card.
  Store cards are usually easier to get than credit cards. Don’t worry too much about interest rates but plan to pay the bill in full every month. The purpose is to use the credit card to demonstrate regular timely payments and build good credit history.
• If you need, in order to build good credit history, get a small bank loan, but make sure that your payments are reported to the credit bureaus.
  If you need to use this option to help establish credit, apply for a loan with your current banks or credit unions. This may be against your principles if you like to pay with cash, but you will have to do it if you are to get a credit card.
• Don’t shop for several cards at the same time.
  Apply for only one card at a time because too many requests for credit reports from the banks where you apply can count against you.
• One of the fastest ways to get credit is to apply for a secured card
  If you can’t get a credit card using the previously cited methods, apply for a secured credit card from you bank. A secure credit card requires you to deposit money in a savings account or CD that is frozen while you have the card.  Be sure that the secured card is shown as unsecured for credit reporting purposes. If you’re getting it from your bank, this should not be a problem.

There are several low APR credit card offers available online from leading credit card issuers. Some of these cards offer a 0% introductory rate but we are more interested in the long term low APR.

Here is a list of the top offers ordered by APR:

Choosing shouldn’t be that hard but there are some things
to consider.

• Low APR credit cards are offered to people with a good or excellent
  credit score. The lower your credit score the harder it is to be
  approved for a low APR credit card. If your credit score needs
  improvement work on that first.
• If you carry a balance or 0% APR credit cards can save you money
  Some credit cards have an introductory rate of 0% on balance transfers.
  You can transfer your balance from your current higher APR credit card
  to the new 0% APR card.
• While the introductory rate on 0% APR credit cards tends to be short
  term (6 to 12 months), they are undoubtedly a great way to save money
  right away.
• If you usually don’t carry a balance you can still take advantage of
  0% APR cards.
  By setting aside the money that you would pay monthly on your balance
  and putting it in a saving account for the duration of the
  introductory rate (6 months to one year) you can gain interest on the
  sum. At the end on the introductory rate just pay off the balance and
  you will be left with the saving account interest in your pocket.
• Make sure that the 0% APR is both on balance transfers and purchases.
  Some credit card companies only offer 0% APR on all balance transfers.
  So if after making your decision between the various 0% APR credit
  cards available, you want to go and use the card on every little item
  you desire make sure that your purchases qualify for the 0% interest.
• Late Payments Can Void the Introductory Rate
  With many credit cards the introductory 0% rate automatically expires
  with that first late payment and the interest rate on your outstanding
  balance will revert back to the much higher APR.
• Don’t assume 0% APR offers can save you from debt
  These offers will not solve your inability to control your spending.
  Just remember that when transferring credit card balances to another
  card, the 0% APR will help you organize your finances temporarily but
  will not remove the debt obligation
• Look for the other benefits of a card
  And if just having a low APR credit card isn’t enough, there are a
  number of other benefits, too. The options that are best for you do
  vary with your particular situation, but some cards have several
  reward benefits options like air miles for your travel expenses or
  points on your “everyday” purchase items. Other cards will give you
  rebates or rewards based on a point system.