For a while there, it seemed like there was no legal minimum age for a credit card at all. We’ve all heard tales of babies getting credit card applications, and I personally know someone whose young goat got one. (I’m not kidding here).
Things are still nebulous on this front, even in the wake of the infamous Credit CARD Act of 2009, which straightened out a lot of things credit card related. Let’s take a brief gander at the issue.
Well, legally…
Remember the heady days when credit card companies tempted college students with the promise of nectar and ambrosia–that is, beer and pizza–if they’d just sign up?
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When the CARD Act passed, some skeptical observers complained that it had a big loophole. The CARD Act only covered personal cards. Business cards, also known as professional cards were deemed exempt. At the time, I speculated that credit card companies would be unlikely to have two different sets of rules for business and personal cards. Apparently, I gave the banks too much credit.
Some Business Cards Go By The Old Rules
According to this article in the Wall Street Journal, some banks are choosing to exploit the business card loophole. The article cites CitiBank as applying payments to the lower interest rate balances first, and for raising interests rates sharply in the event of a missed payments. Both actions would be prohibited if the card was a personal card, not a business card. The article does give Capitol One recognition for applying the CARD Act rules to it’s business cards.
What Is The Deal With Business Cards?
Frankly, I have always wondered why these cards exist. They are a great tool for someone like me who wants to receive multiple sign up bonuses. When a really killer deal is out there, I have been known to sign up for both the personal and the business cards. As for legitimate uses, my belief has always been that a business card can allow you to segregate your business expenses from your personal expenses. I have operated a number of small ventures, but I never had any trouble distinguishing my business expenses from my personal ones. If my business grew, I could see how it would be nice to have a different card, although I am not sure why it would have to be a business card, rather than a different personal card.
Some business cards offer the feature of having multiple additional cards for employees with the rewards accruing for the primary cardholder. I would hate it if my job asked me to charge a bunch of stuff to a company card where I didn’t see any rewards. Hypocritically, I would be the first to have such a card if I had people under me who needed to purchases for my business.
For now, I would still consider getting a business card for the sign up bonus, but as always, I don’t imagine really using it much.
If you’re like many Americans, you move homes fairly regularly. In fact, more than 40 million Americans move every year, according to the Census Bureau. For many folks, moving is about getting into a bigger or better home. Whatever the reason, moving always brings stress and extra expense.
This month, I’m organizing my family’s move from Phoenix to Texas. We’re a family of re-locaters. With a husband in the service, I’ve gotten used to moving on a moment’s notice. But, with each move comes the task of organizing our junk much-treasured belongings, getting all the members of our family ready, scheduling appointments with Realtors, calling ahead to turn on utilities, figuring out car licensing, etc.
With each move I’ve made, I’ve learned a few things. Here are five h
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So you’ve decided to start their own business – congratulations! This is a huge leap from letting someone else take care of tax, accounting, payroll, inventory, and / or various other activities necessary to run a business. However, running your own business has advantages. You can be your own boss, work your own hours and days, and are responsible for your own success. This can be a good way to escape from the boredom and do 9-5 work, love what you will, but you should start by putting a few questions:
1st Are you doing what you love, or just something you do both? A desire to escape from the ordinary world of work can be a good motivation to work for yourself, but you will rise a customer to do in the morning, what you have to do to vote for life.
2nd What do you want? Wha
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Being away at school offers a plethora of spending opportunities. Some are to be expected, like books, groceries, rent, utilities and random university fees. And some, like hospital and auto expenses, are not so expected.
Usually such expenses might be covered by parents, but the dismal economy has made it so parents are often unable to contribute allowances to their college-aged children. And the truth is that student loans, even a PLUS Loan that’s supposed to cover the entire cost of education, including living expenses, can only pay for so much.
This is when most college students turn to credit cards and likewise expose themselves to the wonderful world of credit-card debt. Th
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