Millions of Americans have seen their credit scores fall amongst the lowest levels possible. FICO is reporting that almost 44 million people, 25.5 % of consumers, currently have a credit score less than 600. A credit score this low makes a borrower a very high risk for lenders. These low credit scores will make it almost impossible for these consumers to obtain a mortgage, auto loans, or credit cards. Over the past two years the amount of people with credit scores below 600 has gone up by 2.4 million people.

A very important group to look at is those with moderate credit scores, 650 to 699. The amount of people in this bracket is currently 11.9 percent of consumers, down from 12 percent in 2008. While the drop off is not that significant it is worth noting that the average number of consumers with these credit scores is usually 15 percent.

The consumers with moderate FICO credit scores could be in the most trouble when it comes to lending. Consumers with scores below 600 most likely would not try to borrower but those with moderate scores may try to obtain loans. In previous years these were seen as good credit scores for obtaining loans but standards have toughened and these scores aren’t as good as they once were. These tightened standards may make it much tougher for these people to obtain loans, especially with the best mortgage rates.

There are some positives when looking at the trends in our consumer’s credit score. The amount of consumers with an 800 credit score, a perfect score, has gone up recently. Currently 17.9 percent of consumers have a perfect score. This is significantly larger than the past average with is about 13 percent. These consumers with good credit scores should have no trouble obtaining any type of loan.

It is pretty easy to ruin a good credit credit score but it can me very difficult to fix credit scores.

Credit cards are fast becoming a business necessity. They’re flexible, easy to use, convenient and offer users the ability to make purchases instantly, anywhere in the world.

We’ve spent some time analysing credit cards aimed at businesses and have put together a list of our top 8 reasons to use a company credit card
.

1. Easy tracking of expenses and purchases – Using a credit card for business purchases makes it easier to track expenses. The majority of credit card providers offer comprehensive expense reporting (both online and off) which can save you countless administration costs and a lot of hassle.
2. No more petty cash – Petty cash used to be the most popular way to pay for small, incidental purchases but the days of the petty cash tin are well and truly over. These days it’s more common for companies to make purchases online or over the phone. Providing key staff members with a credit card that’s attached to a business account means you can make instant purchases and reconcile expenses quickly and easily. 3. Rewards and incentives. The majority of business credit card programs offer rewards and incentives for users. Organisations can save money on a variety of goods and services from petrol to air travel, insurance and other professional services.
3. Build business credit – One of the most important reasons for applying for a business credit card is to build your business credit. This will come in handy if you need to take out a business loan in the future. Responsible use and a consistent payment history will be great assets to your credit rating.
4. Separate business and personal finance – If you’re a small business owner you’ll know how important it is to separate business and personal finance. Having a business credit card will help with this division and will come in especially handy around tax time. Remember to keep your accounts separate and don’t be tempted to make personal purchases on your business credit card (or vice versa).
5. Large purchases or unexpected expenses – There may come a time when you need to buy supplies, make a one-off payment or pay a large bill. Business credit cards help you to make these one off payments quickly and are more convenient than applying for a business loan.
6. Embrace the quiet times – Cash flow is a major concern for all businesses and even more so if you have employees or creditors that rely on your payments. A business credit card can help you cover the quiet times and the seasonal lulls.
7. Say goodbye to cash – Having cash on-site or carrying it around with you is not a good idea. Business credit cards reduce the need for ready cash making your business less of a target for theft or loss.

If they’re used responsibly, business credit cards can help you run your business better and even save you some money.