When choosing a credit card for your business, you should consider the advantages of both general consumer and small business credit cards. Even though small business credit cards have the word ‘business’ in the name, the business owner is still personally responsibly for the debt incurred on the card. Therefore, there is no difference in terms of your personal obligation for general consumer and small business credit cards.

Where they do differ is in their protection under the new credit card law (Credit CARD Act). Business credit cards were excluded from the Credit CARD Act, and therefore do not have the same protection from unexpected APR increases or extensive penalty fees that general consumer credit cards do.

In this article we cover all you need to know about getting a credit card account for your church. We will discuss what you should consider before applying for a credit card, as well as offer advice on how to set up a church credit card use policy that will prevent abuses or misuses of your credit card account. We will also explain how church credit card donations can become a useful tool for both your organization and the members of your church community.

Best Credit Cards for a Church

Before you start looking at your options for credit cards, you should be aware that the Credit CARD Act, effective February 2010, added new rules for consumers under the age of 21 interested in having their own credit card. If you are under 21 years old, you will need to show that you are able to make payments – in other words show proof of income – in order to open a credit card account.

The other alternative is to have a cosigner on your credit card account. This person must be 21 years of age or older and be able to prove their ability to repay the debt incurred on your credit card account. They will assume joint liability for your credit card debt, so it will have to be someone who trusts you to make your payments on time and use your credit card responsibly. If you have opened a credit card account with a cosigner and want to increase your credit limit, your cosigner must agree to the increase in writing.

Given that you have excellent credit, you may be able to get a very low or zero percent introductory interest rate on a balance transfer credit card.  Before you fill out your new credit card application, make sure you can afford the standard APR associated with the card.  This will be your rate once the introductory offer expires.   You should compare credit cards based on other factors such as annual fees and reward programs and can do so by visiting CardHub.com.

Most credit card issuers state that notice will be given as to whether or not a credit card application has been approved within 10-14 days, sometimes sooner.  This usually only includes business days and not the weekends or holidays.  During this time the issuer is reviewing your credit history and matching that up with a credit limit and interest rate offer.  If you haven’t heard back in 14 days, you can always call to follow up.  There are some credit cards that will give you an instant decision online, but most do not.

On May 22nd, President Obama signed the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009 into law.  The CARD Act will change the way credit card companies do business, and it will also prohibit consumers who are under 21 years of age from getting credit cards without proof of their ability to repay their debt, or a co-signer in the form of a parent or legal guardian.  This latter point makes it foreseeable that secured credit cards will become the preferred cards for college students, the majority of whom are under 21.

With a secured credit card, undergraduates can open their accounts by putting down a security deposit, which is equal to their credit limit.  For example, if a student wanted a credit limit of $500, they would put up a $500 security deposit to cover their debt in case they became unable to pay their bill.  The presence of a deposit fulfills the letter of the new law by providing ample proof that the consumer in question will be able to repay their debt.  Thus college students will be able to receive secure credit cards without need of a parent or guardian as a cosigner.  If the consumer defaults, the credit card company simply takes the security deposit. Other than this security deposit, a secured credit card acts just like a regular credit card.

No need to wait.  If you want a 100 percent guarantee that you will be approved, apply for a secured credit card.  A secured credit card will help you build credit history with low risk to you and the lender.  Secured credit cards work just like regular credit cards and are reported to the three major credit bureaus.   The only difference between a secured card and a regular credit card is that a secured card requires a security deposit and your credit limit matches the amount of the deposit you put down – the minimum is $200.  Your credit limit can be as little or as much as you choose – you can increase your limit by simply adding more to the amount that you initially deposited.  The great thing about a secured credit card is that it can act as a personal savings account while building your credit history at the same time.

Eighteen is the minimum age that you need to be in order to get approved for a credit card. Until you turn 18, your parents, guardian, or some one else you are close to can add you as an authorized user on one of their existing credit card accounts.  Alternatively, they can open a new credit card account and add you as an authorized user there, with the agreement that you will be responsible for the bill.

It’s simple. The best starter credit card is the one that approves people that either have no credit history or a limited credit history (i.e. less than 3 years) AND has the lowest fees. If you are a college student, then a student credit card represents the best credit card for your needs. If you are not a college student, we recommend that you apply for one of the starter credit cards.

Finally, if you want a 100 percent guarantee that you will be approved, apply for a secured credit card.  Secured credit cards work just like regular credit cards and are reported to all the major credit bureaus.   The only difference is that with a secured card your line of credit (i.e. credit limit) matches the amount of the security deposit you put down – this usually starts around $200.

A cosigner on a credit card account guarantees that the issuer will have a secondary means by which to collect payment should the primary signer become delinquent on their account.  The most important thing to remember about a cosigner is that their credit scores and history are directly affected by the activity on the account that they’ve signed for.  However, because you are only seventeen you will not be able to be the primary signer on a credit card account.  Until you turn 18, your dad can add you as an authorized user on one of his existing credit card accounts.  Alternatively, he can open a new credit card account and add you as an authorized user on that account, with the agreement that you will be responsible for the bill.