How credit cards work : Simple guide for UK creators : S14EP6
How credit cards work : Lessons from our journey
Context: To grow a successful business, you need to understand your financial tools. In this episode of the Working For Yourself podcast, I explain how credit cards work in simple terms. I share the lessons I have learned over 18 years about using credit to build a solid foundation for your brand.
Video Documentation: A deep dive into credit card systems for UK business owners.
A credit card is a tool that allows you to buy things even if you do not have the money in your bank account right now. It is different from a debit card because you are borrowing money from a bank. If you use it the right way, it can help you manage your business costs and build your future.
What is a Credit Limit?
When you get a card, the bank sets a limit. This is the most you can borrow at one time. They decide this based on your income and how well you have handled money before. Remember, just because you have a limit, it does not mean you have to spend it all.
Paying it back
After you buy something, you usually have about 30 days to pay it back. If you pay the full amount within this time, you do not have to pay the bank any interest. This is the best way to use a credit card for your business without it costing you extra money.
The Impact on Your Score
Responsible use of a card helps build a positive credit history. This makes it much easier to get a mortgage or a business loan in the future. However, if you pay late or borrow too much, it can harm your reputation with banks for a long time.
Listen to the full episode:
Resources:
This season has its own dedicated show notes and resources on my website: www.ZulfTalks.com. You can also sign up for my mailing list to get these updates sent to you.
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Clarity
📣: The information talked about in this episode is not financial advice or recommendations. I am not regulated by the Financial Conduct Authority (FCA). 🎯: See our full disclaimer at trustedcreators.org/disclaimer/
