While balance transfers between existing credit cards typically won’t affect your credit, opening a new account can hurt your credit score. When you open a new account, the average age of your credit history will decrease and your issuer will run a hard credit check, making your credit score fall in the short term. However,…
About the Author
Benilyn Formoso - Suralta
Benilyn Formoso-Suralta is a staff writer at Fit Small Business focusing on finance, accounting, and Small Business Loans. She brings with her 12 years of experience as a banking officer with the Bank of the Philippine Islands with expertise in consumer banking, real estate sales, and foreign exchanges.
In her downtime, Benilyn is a yoga and fitness enthusiast. She also enjoys spending time at the beach with her two children.
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Is It Illegal to Use a Business Credit Card for Personal Use?
While it’s not illegal to use a business credit card to cover personal expenses, this can cause confusion when it comes to tracking your business-related expenses. Business credit cards are best used to help separate your business and personal finances and earn rewards for your company’s purchases. However, there are some advantages to using business…
How Many Credit Cards Should I Have?
While there isn’t a set number of credit cards you should have, you’ll need at least one to build credit. Based on data from the credit bureau Experian, each American with a card owns an average of 3.1 credit cards. How you use each card is typically more important than how many accounts you have…
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10 Worst Credit Card Mistakes Everyone Should Avoid
Credit cards can damage your credit and finances if you use them irresponsibly. You can benefit from credit card use, but you’ll need to steer clear of pitfalls that can harm your credit, like falling behind on your payments or using too much of your credit limit. Here are the 10 worst credit card mistakes…
How Does Credit Card Interest Work?
Credit card issuers charge interest if you don’t pay your bill in full each month. It’s typically stated as a yearly rate known as the annual percentage rate (APR). To calculate your interest, divide your APR by 365 (days) to get the daily rate, then multiply your current balance by that rate. There are two…
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What Is a Credit Card Billing Cycle?
A credit card billing cycle, which is often set on a monthly basis, is the time between billing periods. Throughout this cycle, credit card transactions post to your account and change the balance you owe. At the end of your billing cycle, your credit card issuer will charge you for any unpaid transaction made in…
What Is a Balance Transfer & How Much Does It Cost?
A balance transfer lets you move debt from one credit card to another, typically for a fee. Balance transfer fees usually range between 3% to 5% of the amount of your balance transfer, or between $5 to $10, whichever is higher. Some credit cards offer introductory 0% annual percentage rates (APR) on balance transfers for…
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Do Business Credit Cards Affect Personal Credit?
How you use your business credit card can impact your personal credit. Some business credit cards report payment history to consumer credit bureaus, which means any late payments you make could hurt your personal credit score. But if you use your card responsibly and always pay your bills on time, a business credit card could…
What Does 0% APR Mean, and How Does It Work?
0% APR allows you to charge purchases and make balance transfers on a new credit card with no interest for a specific time period. Once this introductory period ends, any unpaid balances will assess the regular annual percentage rate (APR). The best 0% APR credit cards offer no-interest financing for up to 18 months. Taking…
What Is a Foreign Transaction Fee & How Does It Work?
A foreign transaction fee, also known as an FX fee, is charged by credit card issuers when you use your credit card internationally, or when you make a purchase in foreign currencies. You may also incur a fee when your transaction is routed through a non-US bank. Fees are a percentage of the amount of…
What Is Cash Back & How Does It Work?
Cash back is an incentive credit card issuers typically offer that refunds a small percentage of a cardholder’s purchases. You can apply your cash-back rewards to your credit card bill or redeem them as a check, bank deposit, for merchandise, or for store gift cards. Cash-back rewards usually range between 1% and 6%. Most credit…
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What Is a Credit Limit?
A credit limit is the maximum amount you can charge on your credit card, which is predetermined by your card issuer. The larger your limit, the more you can spend on your credit card. Credit card issuers use several factors to determine your credit limit, including your income, credit score, and other financial considerations. To…
