Many of us (include yours truly) have used personal credit cards to finance the start up or growth of our business. It's easy, fast, and available. The interest rates may be lower than business credit cards. And, you may have exhausted your business loans or lines of credit. But there are a few dangers in using your personal credit cards to finance your business, instead of using business credit cards or loans.

• You can't deduct the interest. If you mix personal & business expenses on your credit card, you can't deduct the interest because some of the debt is due to personal expenses. If you are carrying a fair amount of debt, this could add up to hundreds of dollars each month.
• You will miss deductions. If you are randomly using personal credit cards for business expenses, you will inevitably forget to enter all those receipts into your bookkeeping system. Which means that you will miss a tax deductions that you deserve to take.
• You will be on "the hook" for what is really the business' debts. If your business needs debt financing, the business (and its assets) should be responsible for paying off that debt, not your personal assets. If you are using personal credit cards then you are obviously personally liable for the loan, even if something happens to the business (you shut it down, for example).
• You can't accurately track the real expenses of the business. When you are analyzing the profits & loss statements of your business and creating your cash flow projections for upcoming months, you need accurate information about your historical expenses. If you have expenses "hiding" inside your personal credit card statements, you will not be able to analyze whether your business is actually making a good profit, or if your business has cash flow problems.

What can you do if you are using personal credit cards?

You may not be able to switch to using business debt immediately, either because your business can't get its own credit cards or loans, or because you are not ready to form a separate entity. If so, consider using only one personal credit card for business expenses, and use it ONLY for business expenses. This practice will ease your tracking & bookkeeping, and may make it possible for you to take all the deductions you deserve.

The Wealth Spa(TM) Minute: Have you used personal credit cards for business expenses? Did you input them into your bookkeeping system? Pick just one of your personal cards to use for business (and only for business) expenses.

Credit Dummies Business Personal Finance

A breakthrough title explaining effective, cost-efficient collection methods

In a down economy, the demand for a successful credit and collection game plan increases. Credit & Collections Kit For Dummies is a comprehensive guide for people involved in collection activities with accounts/clients, helping readers approach the often difficult task of collecting from late/slow paying customers, as well as determining when (and if) to extend credit to questionable ones. It gives readers the expert information and tools designed to ensure that their collection methods are both effective and legal. The book's attached CD includes helpful scripts, forms, letters, templates, and spreadsheets to help readers work efficiently and effectively.

Note: CD-ROM/DVD and other supplementary materials are not included as part of eBook file.

From the Author

I've poured in over 35 years of my experience into this book, so I'm really hoping you find it useful and not just as a paperweight!

Setting credit policies, collecting past due balances, recognizing the warning signs of an account going bad, legal actions etc. are all part of this book.

While I've written other books on this topic, the Wiley folks really focused my energy on this one to reach YOU, not the collection attorneys or collection agencies, but You as a credit executive or business owner.

This book should also prove useful to recruits in the collection business, as the concepts of making written and verbal demands for payment, along with forms to use, and handling disputes (real and fake) are all part of the day-to-day environment for you.

Bottom line: Dummies books are not for "dummies"...they are for people who know about the topic, but need to know more....and by "more" I mean practical, day-to-day stuff, not academic material.  The check lists alone are worth more than the price of the book...then add the forms....well, you get the picture! 

Have a great day, and happy collecting!

Steve Harms

Credit Dummies Business Personal Finance Pic

Credit Dummies Business Personal Finance Photo

Credit Dummies Business Personal Finance Image

Credit Dummies Business Personal Finance Pic

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Most helpful customer reviews

4 of 5 people found the following review helpful.
Buy It!!!
By R. Cottone
I run a small business and need guidance setting credit polices and collecting from my customers. I was interested in the "how to do it", not a bunch of legal talk. Well, true to the Dummies reputation, this book delivers exactly what I was looking for: VERY specific suggestions, including the forms with the proper language, to get my credit department off the ground. A few years ago I didn't worry about credit and collections, now...well, it has become a major concern. s are using any excuse not to pay...I have to have everything done "by the book". Buy this book!

3 of 4 people found the following review helpful.
Excellent Resource!
By D. Robertson
I needed a refresher to make sure I'm running my credit department the right way. This book has it all, from credit scoring, making good documents, demanding money in writing and by phone, and even "getting tough" if customers still don't pay. It is easy to understand and follow the directions because the authors have taken the time to lay it all out, including scripts and forms. Good stuff.

2 of 3 people found the following review helpful.
THIS BOOK IS A GREAT TOOL
By Jeffrey Jacobs
I HAVE BEEN A DEBT COLLECTOR FOR OVER FOUR DECADES AND A COLLECTION AGENCT OWNER FOR 41 YEARS.

See all 4 customer reviews...

A Secured Visa Credit Card helps you to build or to re-establish your credit rating. It also allows you full use of all the benefits offered with a secured visa card with which you can purchase online or offline worldwide and has flexibility. These cards are secured against unauthorized transactions, so will give you peace of mind when purchasing using a secured visa credit card. We will discuss three merchant offers.

US Bank Secured Visa Credit Card helps you safely re establish and build your credit. This credit card is only offered in 24 states and in the U.S. only. Applications are accepted for US secured visa card offers if the following options apply to you: If you have had past credit difficulties and now wish to establish a solid credit rating and if your credit has not had a chance to become established yet.

When good credit habits have been demonstrated, your credit rating will put you in line for an upgrade product without further requirements of your credit line being secured. The good credit rating will give you freedom of choice, as everything from purchasing a home, a car or buying online requires a good credit rating. US Bank secured visa credit card gives you the chance to start off on the right footing. On application you will need to put an amount of between $300 to $5000 which is the security needed. This amount is used to open a savings account and insures your credit purchases can be paid. This amount stays in the account and earns interest, as long as your credit card payments are made on time and the account stays open. You must make minimum payment each month, as the purchases are not deducted from your account. All applications and payments can be done online.

SKYPASS Secured Visa Credit Card also lets you build your credit rating, or re-establish credit. The secured deposit is $300 to $5000. With Skypass you earn frequent flyer miles 3000 bonus miles with first purchase and 1000 bonus miles on the renewal of your card. I mile is earned for every $1 dollar spent. Accident insurance of $250,000 is on offer. They have the added benefit of a bilingual Korean/English customer service available. Automated bill payments earn Skypass miles faster. Visa and flight miles can be combined. Certain restrictions apply to this card, so see online for further information.

Wells Fargo Secured Card can be used in exactly the same way as Visa cards. This credit card also requires a deposit of $300 to $10,000 which goes into a Collateral Account. The amount of your deposit is what your credit line will reflect. Minimum monthly payments must be made and these cards are periodically reviewed and can graduate to unsecured credit card with your collateral account funds refunded to you.

Their annual percentage rate is currently a variable rate of 17.49% APR on purchases. The lower rate applies to purchases, and cash advances have the higher APR rate. The annual fee is $18 per year. Eligibility requires: That you be 18 years or older and during the last 12 months to not have declared bankruptcy, also you should not have any unsettled outstanding payments. There is a variety of options with this secured credit card, such as customizing your card, faster purchases, online tracking and access to your account, automatic or online payments. Your account is monitored for security, protection against fraud, Spanish/English customer service. All applications can be done online.

All of the above secured visa card companies offer their cards to US residents only, and require a certified check, money order, or cashier's check on application. Their basic service is the same but each offers different benefits so to make an informed choice it is wise to have a thorough look at the full services, benefits, offerings, restrictions, and conditions offered before making a choice. The offer of re-establishing a good credit rating is a very good option to those who have had a bad credit rating in the past.

Build Your Credit Rating Ebook

While there are many factors involved in repairing your credit score, your personal commitment to repairing your score is important. You, not the credit reporting agencies, your creditors, nor the government is going to take responsibility to repair your credit score for you.

This book will give you all of the information that you'll need to begin repairing your credit score now.

Build Your Credit Rating Ebook Pic

Build Your Credit Rating Ebook Image

Build Your Credit Rating Ebook Pic

Build Your Credit Rating Ebook Pic

There is no shortage of offers for credit cards in the mail, on line and more or less everywhere you look. However, quite often the task of maintaining your credit card can be more difficult than getting the right credit card for your needs.

High Street stores are all too willing to give you a discount on the day if you sign up for one of their cards, and lets face it, that extra 10% is usually tempting whoever you are. Nonetheless before you know it you will be facing yet another monthly credit card bill.

The main problem with credit cards is the illusion that you are not actually spending money. There is nothing missing from your wallet or purse and it is so easy to flash the card here, there and everywhere.

Credit cards were not designed with budgeting in mind because each month when the day of reckoning comes round there is a payment to be made and even though meeting the minimum payment does not incur late payment fees, just take a look at that balance - it is more or less standing still!

Ask yourself how long it would take you to completely get rid of the debt if you did not charge another cent to the account. Never consider getting another card to transfer the balance to unless it is one offering interest free credit for the amount of time it will take you to pay off the debt.

Most of the major credit cards are accepted all over the world so you only need one, or at most two. This is a much easier way to keep a check on expenditure than having to sort out six or more credit cards as many people do.

Cash advances are another temptation offered by the credit card companies and they are easy to get your hands on from the ATMs but they come with a cost of high interest which is calculated on a daily basis so can end up being the dearest loan you are ever likely to take on.

If you make regular visits to the ATM it soon mounts up and your debt will soar over just a few months. The interest can be as high as 24% so this really should be avoided. It clearly makes sense to avoid the temptations of rewards and bonuses and opt for a no frills card with low interest and no annual fee.

A good credit history can be established by using credit cards as long as it is done responsibly and payments are made when they should be. It is important that your credit rating is healthy, just in case you need to buy a larger item, say a car for example. This is the time when you will be rewarded for your good history.

Unnecessary shopping sprees, cash advances and late payments all go into creating your credit rating so if you want to use a credit card and build up your rating at the same time, its best to think of the card as cash and only spend what you can afford to pay back each month.

Getting Credit Card Trap Ebook

While there are many factors involved in repairing your credit score, your personal commitment to repairing your score is important. You, not the credit reporting agencies, your creditors, nor the government is going to take responsibility to repair your credit score for you.

This book will give you all of the information that you'll need to begin repairing your credit score now.

Getting Credit Card Trap Ebook Picture

Getting Credit Card Trap Ebook Image

Getting Credit Card Trap Ebook Picture

Getting Credit Card Trap Ebook Photo