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Paying Yourself with Credit Cards Should you use low-interest credit cards to fund your homebased startup? Our experts weigh in.

By Paul and Sarah Edwards

Opinions expressed by Entrepreneur contributors are their own.

Q: Should I use zero percent interest credit cards forincome until my homebased business picks up? I don't want touse any more of my savings, nor do I want to jeopardize my goodcredit.

A: It's not unusual for entrepreneurs to use creditcards to fund startup operations. In fact, according to FederalReserve data, credit cards account for 39 percent of small-businessborrowing. So should you take advantage of offers for "freemoney"?

Keep in mind that credit card companies make these offersfiguring they'll make money. Zero-interest time periods rangefrom six to 12 months. If you don't repay the money you borrowbefore the credit card starts accumulating interest, high interestrates kick in. You need to pay attention to the number of monthsthe introductory rate lasts and what the rate will be when theoffer expires.

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