Finding the right business credit card can be a tough task especially if don’t know the criteria of a good credit card. Here, we’ve provided a short guide on how you choose the right credit card for your small business.
Understand how the Interest Rates and Costs are calculated. It is very important to be aware of how your APR is calculated. Take note that most credit cards for business impose more than just one APR. The interest rate applicable to your purchases could be different from the rate applicable to balance transfers and cash advances. Even if a credit card offers a low rate on balance transfers, you need to make sure that the APR for purchases and cash advances are reasonable as well.
Pay attention to the features of the business credit card. Credit cards for business are meant to help business owners take on their tasks more easily. See to it that your chosen business credit card provides specific features that can be useful for you. For instance, an Online Account Access feature and Online Banking option are indispensable because these features will enable you to keep track of your spending and send in your payments on time. Other important credit card features that you should look for are Year-end Summary Reports, Emergency Card and Cash Replacement, Purchase Protection, 24/7 Reliable Customer Support, etc.
Read reviews and get feedbacks from other business owners. It is smart to ask other business owners with business credit cards for feedback or possible recommendations. You can also visit online forums and pose questions from long time business credit card holders in the group.
Check your personal credit report. As a new entrepreneur, you need to be personally aware of your credit history. Order a copy of your personal credit report before submitting your application to any business credit card issuer. Take note that in the absence of corporate credit, your personal credit history as the owner of the business will be reviewed.
Consider small business credit cards with rewards. Applying for a business reward credit card is a good thing if you can pay off your monthly balances in full. This is because reward cards often have more expensive interest rates than their non-reward counterparts. If you feel that you’ll have to carry a balance from time to time, you may opt for non-reward business credit card with a low APR.
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Pamela Williams is a Loan Consultant, Internet Marketer and Writer. For years she had helped consumers and business owners especially regarding business credit cards. This resource is dedicated particularly on business credit card reviews, articles, tips and advice, and online application so that consumers and business owners may compare which is the best business credit card for their business. Copyright 2010 |
