Credit cards is a way to get funding and it’s fairly easy to acquire. When I started my first business, a Hawaii tree service company (www.hawaiitreeservices.com), I used credit cards to fund it at the startup stages.
Credit cards are double edged swords and can really hurt you if not used properly. Before you decide to use credit cards for funding, here are the basic do’s and don’ts regarding the use of them.
The first thing to remember: preventing debt is one of the best methods to prepare for a secure financial future. Many individuals risk financial freedom by falling into debt. If used properly, credit cards can offer many advantages, such as securing purchases, building your credit score, and it makes it easier to purchase pricey products without carrying money.
When used improperly, however, credit cards function like a high interest loan rather than a money substitute. Lots of people don’t understand how to properly use bank credit cards. And as debts grow, it becomes increasingly difficult to get out of the financial debt. Low monthly installments, usually only 2 to 3 percent of the total amount, and high interest rates can keep consumers in financial debt for many years.
Here are tips on inappropriate and appropriate methods of credit card uses. Continue reading The Do’s and Don’ts Of Using Credit Cards For Funding