The Drawbacks of Contractors’ Business Credit Cards
Each year, more and more people start up their own small businesses and credit card issuers realize the potential of this huge market. In response, credit card companies have come up with credit cards that are especially designed to meet the demands of small businesses.
One example of a specific business credit card is the Chase Contractor Visa business card. This business credit card specifically rewards entrepreneurs who are yet to build a structure for their business. Hence, the Chase Contractor Visa business card holder has the opportunity to earn incentives by spending at least $1,000 or more on construction material purchases. And since there is no pre-determined spending limit, you can use your card according to the financial demands of your construction project.
This particular reward credit card for business is ideal for contractors and business owners in the construction industry. However, before signing up, consider the possible drawbacks of owning this type of credit card.
Possible Drawbacks of Contractors’ Credit Cards
Different issuers have specific rules and regulations when it comes to implementing reward programs. Business credit cards that are designed for contractors were made to match the business owner’s spending style. However, you still need to make sure that you can get the most benefit by choosing a card that has partnerships with your preferred merchants or suppliers.
It is crucial to understand the exact rules of the program. For instance, what kinds of purchases are eligible for points? Take note that some reward credit cards will only award you with point if the purchase you made was from a participating merchant.
What about limits or restrictions with the use of your card? Is there a maximum value of rewards that you can earn? The Chase Contractor Visa Business credit card offers a maximum limit of 20,000 points per month. This means, you will not be getting more than 20,000 points even if your purchases exceed that amount for the month.
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Other important factors that you should be aware of are the penalties and fees associated with your card. Is there an annual fee that you need to pay to keep your account active? Will you lose your points and get penalized if you exceed your credit line? What happens if you fail to submit your payment on time? Will you be disqualified from redeeming the points you earned?
The only way to be sure about the conditions of a business credit card is to analyze your contract. Consider each and every statement stipulated in the Agreement and make sure that the terms complement your needs and spending style as a business owner.
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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 |