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Three best ways (and three worst ways) to finance holiday shopping

6. Small business credit cards (worst)

Chase Card Services/File
Chase last year unveiled an accelerated rewards program and additional enhancements for its Ink Classic and Ink Cash cards, which one credit-card site recently named best overall small business rewards card. But using a small business credit card for financing a loan carries fewer protections than using a regular credit card.

  • By Odysseas Papadimitriou Contributor

Small business credit cards are not covered by the CARD Act, which means issuers aren’t bound by the rule that prevents them from increasing interest rates on existing balances unless a cardholder is at least 60 days delinquent. They can do so with business credit cards at any time for little or no reason, which makes this type of plastic an unpredictable and potentially costly form of financing. Small business owners should leave their company cards in their wallets this holiday season if they aren’t going to pay for their purchases in full within a single billing period.

Ultimately, it’s important for consumers to understand that any financing deal – even one offering zero percent – is only as good as you make it. If you don’t make the monthly payments necessary to become debt-free by the end of a low-interest introductory period, much higher regular rates will eat away at your savings. So, find the right financing deal for your needs, manage your payments responsibly, and have a happy, and relatively inexpensive, holiday experience!

– Odysseas Papadimitriou is the CEO of Card Hub, a website that helps consumers compare credit cards and exchange gift cards. 

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Mark Sappenfield
Editor

Dear Reader,

About a year ago, I happened upon this statement about the Monitor in the Harvard Business Review – under the charming heading of “do things that don’t interest you”:

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We have a mission beyond circulation, we want to bridge divides. We’re about kicking down the door of thought everywhere and saying, “You are bigger and more capable than you realize. And we can prove it.”

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