Some business owners have a negative notion about business credit cards. The fact is, credit cards for small business are not bad at all. It is choosing the right one and knowing how to handle your credit card wisely that makes the difference. Here are some of the most common business credit card myths and the truth about them:
Credit cards for business have expensive fees. Although it is true that there are business credit cards in the market that charge expensive interest rates and fees, it is possible to find credit cards with low rates and no fees at all. Yes, if you do your research well, there are business credit cards that offer low interest rate, no annual fees, reasonable late fees, and great customer service.
All business credit cards have annual fees. The credit card’s annual fee can range from $50 to as much as $100 or even more. Reward credit cards often require annual fees but there are also some great credit cards in the market such as ones from MasterCard, Visa and Amex with no annual fees at all.
Paying with credit cards mean paying additional interest fee. If you think that owning a business credit card ties you down to the interest fees, you can actually skip the interest fees completely by submitting your monthly payments on time. However, even if you intend to pay off your monthly balances in full, it is still recommended to look for a credit card with a low APR just in case you need to carry over a balance. Also, choose a business credit card that gives you ample time to work on your payment or a card with at least a 30-day grace period.
Using business credit cards is risky. Despite the many cases of credit card fraud reported, business credit card companies have come up with a way to provide its card holders more protection against stolen identity. Today, business credit cards offer liability protection in case of unauthorized charges.
Business credit cards are all about debt. Not all debts are bad. In fact, you need to take on some debts to build up your business credit history and having a credit card for business is one of the easiest ways to establish business credit. As long as you take your payment obligations seriously and you keep your credit card use in proper perspective, there shouldn’t be any harm in owning a business credit card at all.
Business credit cards are only for big businesses. Today, credit card companies have introduced small business credit cards that are especially designed for small business entrepreneurs. Unlike a corporate credit, small business credit cards involve an easier application process and can actually help you establish a credit history for your company.
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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 2007 |
Business credit cards can be a nightmare. During the recession late payments converted cards at 9.9 to over 30%. Advanta Card was one of the biggest offenders. The CEO even bragged about it That they could increase thier yield. How ? You got it 34% The government bailed them all out and WE the small businesses are left holding the debt. I dont recommend credit cards business or otherwise. They are mafioso loan sharks in sheeps clothing
When you get a business credit card you AND the company are on the hook? How can this be advantageous. If you have a business downturn THEY will destory you by tripling you interest rates. Further hurting your small business. Get a credit line from a bank wiht a fixed rate and term. If business gets tough at least its in the banks interest to work with you INSTEAD of tripling your rates for latespayments.