Quantcast

Business Credit Card vs. Personal Credit Card

INNspiring.com | Innkeeper Forum & Innkeeping Resources

Help Support INNspiring.com | Innkeeper Forum & Innkeeping Resources:

muirford

Administrator
Staff member
Administrator
Moderator
Joined
May 22, 2008
Messages
2,493
Reaction score
12
With all the new legislation about credit card accounts going into effect, it may change the way you use your credit cards. There may be a downside if you use your personal card for business expenses, as outlined in this article in the online Wall Street Journal.
We just cancelled our personal card because they implemented an annual fee (we don't carry a balance on any of our cards).
 

EmptyNest

Well-known member
Joined
May 22, 2008
Messages
8,741
Reaction score
1
I wanted to cancel my cards as well, but I believe someone I heard recently said not to just cancel them as it can affect your credit rating.
So, we just cut all but 2 of ours up and as long as they don't start charging a fee for non use or just an annual charge, we will stay as we are.
 

Morticia

Administrator
Staff member
Administrator
Moderator
Joined
May 22, 2008
Messages
17,358
Reaction score
226
I wanted to cancel my cards as well, but I believe someone I heard recently said not to just cancel them as it can affect your credit rating.
So, we just cut all but 2 of ours up and as long as they don't start charging a fee for non use or just an annual charge, we will stay as we are..
What can happen when you cancel cards, especially if you have a balance, is that before you had, say, a $40,000 line of credit on 3 cards. If you had $10,000 in balances, you were using 25% of your available credit. Not bad.
If you cancel one of those cards, say with a $20,000 line of credit, and you still have the $10,000 balance on the other 2 cards, you are now using 50% of your available credit. You're starting to look shaky.
However, I would cancel a card that started charging me a 'dormancy' fee. They'd get it once, but never again. If they're happy with the $100, good for them. I imagine they'll make a few million like that.
 

EmptyNest

Well-known member
Joined
May 22, 2008
Messages
8,741
Reaction score
1
I wanted to cancel my cards as well, but I believe someone I heard recently said not to just cancel them as it can affect your credit rating.
So, we just cut all but 2 of ours up and as long as they don't start charging a fee for non use or just an annual charge, we will stay as we are..
What can happen when you cancel cards, especially if you have a balance, is that before you had, say, a $40,000 line of credit on 3 cards. If you had $10,000 in balances, you were using 25% of your available credit. Not bad.
If you cancel one of those cards, say with a $20,000 line of credit, and you still have the $10,000 balance on the other 2 cards, you are now using 50% of your available credit. You're starting to look shaky.
However, I would cancel a card that started charging me a 'dormancy' fee. They'd get it once, but never again. If they're happy with the $100, good for them. I imagine they'll make a few million like that.
.
Good grief I can't even conceive of those kinds of balances!!! We have none and never have.
 

egoodell

Well-known member
Joined
Jun 1, 2008
Messages
3,023
Reaction score
0
I wanted to cancel my cards as well, but I believe someone I heard recently said not to just cancel them as it can affect your credit rating.
So, we just cut all but 2 of ours up and as long as they don't start charging a fee for non use or just an annual charge, we will stay as we are..
We just got threatened (the only way I read it) of being charged for not using our card. I'm having Chris ask our CPA when he goes in with the taxes to ensure that our credit rating will not be affected. This is just stupid.
If it affects our credit rating to close the account, they are going to force us to use it in order to avoid being charged.
I hate this. We have purposefully not used a credit card other than AMEX for mileage (and pay it every month) for two year and almost have all paid off (balance from building and starting the inn since we had 0 percent at the time. But the 0 percent has just run out)
RIki
 

gillumhouse

Moderator
Staff member
Moderator
Supporting Member
Joined
May 22, 2008
Messages
15,559
Reaction score
145
I wanted to cancel my cards as well, but I believe someone I heard recently said not to just cancel them as it can affect your credit rating.
So, we just cut all but 2 of ours up and as long as they don't start charging a fee for non use or just an annual charge, we will stay as we are..
What can happen when you cancel cards, especially if you have a balance, is that before you had, say, a $40,000 line of credit on 3 cards. If you had $10,000 in balances, you were using 25% of your available credit. Not bad.
If you cancel one of those cards, say with a $20,000 line of credit, and you still have the $10,000 balance on the other 2 cards, you are now using 50% of your available credit. You're starting to look shaky.
However, I would cancel a card that started charging me a 'dormancy' fee. They'd get it once, but never again. If they're happy with the $100, good for them. I imagine they'll make a few million like that.
.
Good grief I can't even conceive of those kinds of balances!!! We have none and never have.
.
Consider yourself fortunate. This is not a snarky statement, just a truism as I see it - when you do not have kids, it is easier to not have cc balances. I was doing really well but had a once in a lifetime graduation from the police academy that required (thanks DH) a car rental even though ours was fine (it is too old!) and a couple other kid related things that set me back to the cc treadmill. My only decision in the matter of the 6 kids was in gettng married since they were already in existence. 8 grandchildren later.....
Two good salaries that have good pensions also help. I am very happy for you (sincerely) - and very much wish I could say the same thing.
 

Penelope

Well-known member
Joined
Aug 4, 2008
Messages
1,716
Reaction score
0
Had a slight balance on our card that we'd been paying down for the past year or so. RARELY ever use the card. Never late on a payment. Same old, same old. Opened my bill two days ago and our interest rate went from 4.9 to 17.9%. In one month. For NO reason. Paying that sucker off as soon as possible. They sure do get you coming and going, don't they?!
 

egoodell

Well-known member
Joined
Jun 1, 2008
Messages
3,023
Reaction score
0
Had a slight balance on our card that we'd been paying down for the past year or so. RARELY ever use the card. Never late on a payment. Same old, same old. Opened my bill two days ago and our interest rate went from 4.9 to 17.9%. In one month. For NO reason. Paying that sucker off as soon as possible. They sure do get you coming and going, don't they?!
.
They have to jack up the rates before that new law goes into effect, I think.
Riki
 

egoodell

Well-known member
Joined
Jun 1, 2008
Messages
3,023
Reaction score
0
I wanted to cancel my cards as well, but I believe someone I heard recently said not to just cancel them as it can affect your credit rating.
So, we just cut all but 2 of ours up and as long as they don't start charging a fee for non use or just an annual charge, we will stay as we are..
What can happen when you cancel cards, especially if you have a balance, is that before you had, say, a $40,000 line of credit on 3 cards. If you had $10,000 in balances, you were using 25% of your available credit. Not bad.
If you cancel one of those cards, say with a $20,000 line of credit, and you still have the $10,000 balance on the other 2 cards, you are now using 50% of your available credit. You're starting to look shaky.
However, I would cancel a card that started charging me a 'dormancy' fee. They'd get it once, but never again. If they're happy with the $100, good for them. I imagine they'll make a few million like that.
.
Good grief I can't even conceive of those kinds of balances!!! We have none and never have.
.
Consider yourself fortunate. This is not a snarky statement, just a truism as I see it - when you do not have kids, it is easier to not have cc balances. I was doing really well but had a once in a lifetime graduation from the police academy that required (thanks DH) a car rental even though ours was fine (it is too old!) and a couple other kid related things that set me back to the cc treadmill. My only decision in the matter of the 6 kids was in gettng married since they were already in existence. 8 grandchildren later.....
Two good salaries that have good pensions also help. I am very happy for you (sincerely) - and very much wish I could say the same thing.
.
gillumhouse said:
Consider yourself fortunate. This is not a snarky statement, just a truism as I see it - when you do not have kids, it is easier to not have cc balances.
I understand completely. We would not be getting on our way to debt free (from building expenses) if we could have had children. As a matter of fact it took all my savings to unsucessfully go through two invitro attempts when I first got married.
riki
 

Penelope

Well-known member
Joined
Aug 4, 2008
Messages
1,716
Reaction score
0
Had a slight balance on our card that we'd been paying down for the past year or so. RARELY ever use the card. Never late on a payment. Same old, same old. Opened my bill two days ago and our interest rate went from 4.9 to 17.9%. In one month. For NO reason. Paying that sucker off as soon as possible. They sure do get you coming and going, don't they?!
.
They have to jack up the rates before that new law goes into effect, I think.
Riki
.
egoodell said:
They have to jack up the rates before that new law goes into effect, I think.
Riki
I forgot about that... thanks. Well, it makes sense now, but still stinks!
 

Suzie Q

Well-known member
Joined
May 30, 2008
Messages
428
Reaction score
0
I've been using my personal cc because I get 3% back on my food and gas purchases. I can no longer get this card, so I keep and use it. On my other personal card, I get 1% back. The 3% card even gets this discount at Walmart for every purchase. First National Bank of Omaha.
C
 

egoodell

Well-known member
Joined
Jun 1, 2008
Messages
3,023
Reaction score
0
Had a slight balance on our card that we'd been paying down for the past year or so. RARELY ever use the card. Never late on a payment. Same old, same old. Opened my bill two days ago and our interest rate went from 4.9 to 17.9%. In one month. For NO reason. Paying that sucker off as soon as possible. They sure do get you coming and going, don't they?!
.
They have to jack up the rates before that new law goes into effect, I think.
Riki
.
egoodell said:
They have to jack up the rates before that new law goes into effect, I think.
Riki
I forgot about that... thanks. Well, it makes sense now, but still stinks!
.
Bob Sled said:
egoodell said:
They have to jack up the rates before that new law goes into effect, I think.
Riki
I forgot about that... thanks. Well, it makes sense now, but still stinks!
boy you know it. And now we all have to see if dumping these cards are going to affect our credit rating, which is SUCH a scam!!!
Riki
 

gillumhouse

Moderator
Staff member
Moderator
Supporting Member
Joined
May 22, 2008
Messages
15,559
Reaction score
145
I wanted to cancel my cards as well, but I believe someone I heard recently said not to just cancel them as it can affect your credit rating.
So, we just cut all but 2 of ours up and as long as they don't start charging a fee for non use or just an annual charge, we will stay as we are..
What can happen when you cancel cards, especially if you have a balance, is that before you had, say, a $40,000 line of credit on 3 cards. If you had $10,000 in balances, you were using 25% of your available credit. Not bad.
If you cancel one of those cards, say with a $20,000 line of credit, and you still have the $10,000 balance on the other 2 cards, you are now using 50% of your available credit. You're starting to look shaky.
However, I would cancel a card that started charging me a 'dormancy' fee. They'd get it once, but never again. If they're happy with the $100, good for them. I imagine they'll make a few million like that.
.
Good grief I can't even conceive of those kinds of balances!!! We have none and never have.
.
Consider yourself fortunate. This is not a snarky statement, just a truism as I see it - when you do not have kids, it is easier to not have cc balances. I was doing really well but had a once in a lifetime graduation from the police academy that required (thanks DH) a car rental even though ours was fine (it is too old!) and a couple other kid related things that set me back to the cc treadmill. My only decision in the matter of the 6 kids was in gettng married since they were already in existence. 8 grandchildren later.....
Two good salaries that have good pensions also help. I am very happy for you (sincerely) - and very much wish I could say the same thing.
.
gillumhouse said:
Consider yourself fortunate. This is not a snarky statement, just a truism as I see it - when you do not have kids, it is easier to not have cc balances.
I understand completely. We would not be getting on our way to debt free (from building expenses) if we could have had children. As a matter of fact it took all my savings to unsucessfully go through two invitro attempts when I first got married.
riki
.
That is why I said it was not meant to be snarky. Having or not having kids is not always a choice issue. Trust me, if I had been on the birthing end of it, there is no way it would have been 6! Bur for all the expense and heartache (and there was lot of that) as they were growing up, I have no regrets. For those who wanted and were not blessed with them, I offer my condolences - because for them it is the death of a deep desire. I really did not mean for this to take this turn. I do apologize.
 

egoodell

Well-known member
Joined
Jun 1, 2008
Messages
3,023
Reaction score
0
I wanted to cancel my cards as well, but I believe someone I heard recently said not to just cancel them as it can affect your credit rating.
So, we just cut all but 2 of ours up and as long as they don't start charging a fee for non use or just an annual charge, we will stay as we are..
What can happen when you cancel cards, especially if you have a balance, is that before you had, say, a $40,000 line of credit on 3 cards. If you had $10,000 in balances, you were using 25% of your available credit. Not bad.
If you cancel one of those cards, say with a $20,000 line of credit, and you still have the $10,000 balance on the other 2 cards, you are now using 50% of your available credit. You're starting to look shaky.
However, I would cancel a card that started charging me a 'dormancy' fee. They'd get it once, but never again. If they're happy with the $100, good for them. I imagine they'll make a few million like that.
.
Good grief I can't even conceive of those kinds of balances!!! We have none and never have.
.
Consider yourself fortunate. This is not a snarky statement, just a truism as I see it - when you do not have kids, it is easier to not have cc balances. I was doing really well but had a once in a lifetime graduation from the police academy that required (thanks DH) a car rental even though ours was fine (it is too old!) and a couple other kid related things that set me back to the cc treadmill. My only decision in the matter of the 6 kids was in gettng married since they were already in existence. 8 grandchildren later.....
Two good salaries that have good pensions also help. I am very happy for you (sincerely) - and very much wish I could say the same thing.
.
gillumhouse said:
Consider yourself fortunate. This is not a snarky statement, just a truism as I see it - when you do not have kids, it is easier to not have cc balances.
I understand completely. We would not be getting on our way to debt free (from building expenses) if we could have had children. As a matter of fact it took all my savings to unsucessfully go through two invitro attempts when I first got married.
riki
.
That is why I said it was not meant to be snarky. Having or not having kids is not always a choice issue. Trust me, if I had been on the birthing end of it, there is no way it would have been 6! Bur for all the expense and heartache (and there was lot of that) as they were growing up, I have no regrets. For those who wanted and were not blessed with them, I offer my condolences - because for them it is the death of a deep desire. I really did not mean for this to take this turn. I do apologize.
.
gillumhouse said:
That is why I said it was not meant to be snarky. Having or not having kids is not always a choice issue. Trust me, if I had been on the birthing end of it, there is no way it would have been 6! Bur for all the expense and heartache (and there was lot of that) as they were growing up, I have no regrets. For those who wanted and were not blessed with them, I offer my condolences - because for them it is the death of a deep desire. I really did not mean for this to take this turn. I do apologize.
Oh K, no need to apologize, I have always had my four footed kids and I truly did not mean for you to feel badly. I do know what effort you put into bringing up your brood, and do understand! I'm not all that sensitive about it. Just bothers me when people ask me WHY NOT all the time.
RIki
 

gillumhouse

Moderator
Staff member
Moderator
Supporting Member
Joined
May 22, 2008
Messages
15,559
Reaction score
145
I wanted to cancel my cards as well, but I believe someone I heard recently said not to just cancel them as it can affect your credit rating.
So, we just cut all but 2 of ours up and as long as they don't start charging a fee for non use or just an annual charge, we will stay as we are..
What can happen when you cancel cards, especially if you have a balance, is that before you had, say, a $40,000 line of credit on 3 cards. If you had $10,000 in balances, you were using 25% of your available credit. Not bad.
If you cancel one of those cards, say with a $20,000 line of credit, and you still have the $10,000 balance on the other 2 cards, you are now using 50% of your available credit. You're starting to look shaky.
However, I would cancel a card that started charging me a 'dormancy' fee. They'd get it once, but never again. If they're happy with the $100, good for them. I imagine they'll make a few million like that.
.
Good grief I can't even conceive of those kinds of balances!!! We have none and never have.
.
Consider yourself fortunate. This is not a snarky statement, just a truism as I see it - when you do not have kids, it is easier to not have cc balances. I was doing really well but had a once in a lifetime graduation from the police academy that required (thanks DH) a car rental even though ours was fine (it is too old!) and a couple other kid related things that set me back to the cc treadmill. My only decision in the matter of the 6 kids was in gettng married since they were already in existence. 8 grandchildren later.....
Two good salaries that have good pensions also help. I am very happy for you (sincerely) - and very much wish I could say the same thing.
.
gillumhouse said:
Consider yourself fortunate. This is not a snarky statement, just a truism as I see it - when you do not have kids, it is easier to not have cc balances.
I understand completely. We would not be getting on our way to debt free (from building expenses) if we could have had children. As a matter of fact it took all my savings to unsucessfully go through two invitro attempts when I first got married.
riki
.
That is why I said it was not meant to be snarky. Having or not having kids is not always a choice issue. Trust me, if I had been on the birthing end of it, there is no way it would have been 6! Bur for all the expense and heartache (and there was lot of that) as they were growing up, I have no regrets. For those who wanted and were not blessed with them, I offer my condolences - because for them it is the death of a deep desire. I really did not mean for this to take this turn. I do apologize.
.
gillumhouse said:
That is why I said it was not meant to be snarky. Having or not having kids is not always a choice issue. Trust me, if I had been on the birthing end of it, there is no way it would have been 6! Bur for all the expense and heartache (and there was lot of that) as they were growing up, I have no regrets. For those who wanted and were not blessed with them, I offer my condolences - because for them it is the death of a deep desire. I really did not mean for this to take this turn. I do apologize.
Oh K, no need to apologize, I have always had my four footed kids and I truly did not mean for you to feel badly. I do know what effort you put into bringing up your brood, and do understand! I'm not all that sensitive about it. Just bothers me when people ask me WHY NOT all the time.
RIki
.
Tell them it is none of their business. Ask them why they DID have them. As an oldest child, I know that many a first child (and last) were as a result of "Dang! it did not work". My Mother always said she owed her family to the Goodyear rubber company. Poor Mom was scheduled to get things squared away and went for a final checkup one week before going for surgery when the doc told her too late. See you in about 8 months.
I knew one woman who joked she was one of 5 kids. Her Mother had one a year until WWII and her Dad went off to war. That was when they figured out what was causing it. #5 came after he got home.
 
Top