If you cannot patent your invention with your own savings, the use of a credit card is another option. Now, we understand that you might be weary of financing an invention this way. If you’re like most people, you’ve heard dozens of horror stories from people who allow themselves to be consumed by crushing consumer debt. The difference, however, is that most people run up credit card debt mindlessly, for impulse purchases that depreciate in value. Should you choose to use credit card debt, do so in a calculated and responsible manner. Borrow no more than you need and repay it on a set schedule with a clear date for full repayment.

That being said, let’s begin with some much-needed clarification on how credit cards work. (This will then be related back to your goal of funding a patent.) Very simply, credit card companies make the bulk of their profits on interest. For all the talk about the importance of paying back debt quickly, Visa and MasterCard want you to pay them back at a nice, leisurely pace. The reason is very simple: if everyone paid off what they charged in a nice, timely fashion, Visa and MasterCard would not make much money. Mary Hunt remarks on this in her book, Debt-Proof Living:

“Credit card companies reluctantly tolerate those of us they call “deadbeats” – cardholders who always pay their balances in full and do not participate in the payment of interest and fees.”

That’s right – in the eyes of a credit card company, you are actually scorned and discouraged from repaying what you owe in full. Someone who charges thousands of dollars and takes years to repay it, on the other hand, is a residual income stream for the credit card company. This is what most credit card holders become, charging more than they need. So they chug along, making the minimum payments each month and sending an extra 18%-22% or more in interest to the credit card company to boot. This is not an intelligent way to use debt!

What you are going to do is become one of the “deadbeats” discussed earlier. It all starts with determining exactly how much money you need and borrowing no more. In your case, the amount you need to borrow will be fee for a patent.

The first step to funding a patent with a credit card is determining the amount of money you need. Once you have that amount in mind, it’s time to find the ideal credit card to borrow it with. This can be a card you already have, or a new one that meets the criteria we’re about to give you (if your current card does not). Basically, the ideal credit card to finance a patent with has the following characteristics:

1) No annual fee

2) A credit limit at or above the cost of the provisional patent (preferably not much higher)

3) A grace period during which you can repay without interest (this will usually be anywhere from 1-2 months from the time of the charge)

*If your current credit card has a balance, look for a card that offers 0% APR on balance transfers.

The grace period requirement is particularly important. While paying off the cost of your patent over time isn’t the end of the world, it’s far more desirable to pay it off sooner than later. Credit cards that offer a grace period are ideal for this, as a disciplined borrower could theoretically repay in full during that time without incurring any interest or fees. This should be what you are shooting for. To make it easier on yourself, draw up a payment schedule. Examine your finances and determine how much you can pay back each month. Then draw up a schedule incorporating the monthly payments you can afford to make, and project when you will have it paid off.

Let’s say expenses are tight and you can only afford to pay $75/month toward your debt. That’s fine. The important thing is that you actually do pay it. To help yourself you may want to consider setting aside the amount of one monthly payment to ensure that you stay on track. Again, the more you can pay per month, the sooner you will be out of debt.

From that point, it’s just a matter of holding yourself to the schedule you made. If you make your payments as planned, you will have successfully financed your patent without going into the crushing debt most borrowers do. Good luck!

PatentHelpNow.com is a website dedicated to providing inventors with free patent help. You can contact us at: PatentHelpNow@gmail.com