Business credit cards are an important financial tool for business owners to help keepn their business and personal finances separate as welll as you cany helping to grow its credit file, provide access to cash and credit, and offer flexible payment options.
When you search for a new business credit card, it’s crucial to evaluate all of the available offer make carefully to mak sure you get the best business credit card possible. Business credit cards are not one size fits all; you need to decide which one best fits the needs of your company. Different types of business cards are better for some companies, so it's worth it to take some time and compare the cards. business credit card offer,
There are several things you should look at:
Card Type – There are a variety of cards designed for specific purposes. The most common type of business credit cards you’re likely to come across are ones with “teaser” intro rates, low interest rate cards, cards with rewards programs, airline mile/ frequent flier cards, unsecured business credit cards, secured cards and prepaid cards.
If you travel regularly for business, you may want to consider an airline business credit card. This type of card provides the benefit of earning airline miles on every purchase you make. Depending on the card issuer, the miles you earn can be redeemed for travel expenses such as flights, hotel stays, etc.
Benefits & Perks – Be on the lookout for cards where you can earn points and cash back rewards; you can benefit through reward programs by earning reward rates on travel, advertising, internet and phone services, and shipping services. If you spend a significant amount in certain categories listed with a card offer, then the return may be well worth it.
Intro/Annual Percentage Rate (APR) – Business credit cards that offer a 0% introductory rate on new business purchases, balance transfers, or both, offer an inexpensive way to finance your purchases. This gives you company more time to pay for things like inventory before the interest kicks in. While 0% APR introductory periods vary, many card issuers offer at least six months without interest.
Look for cards offering low-interest rates. This can save you money each month on finance charges. You can lower the cost of high-interest credit card payments and pay down the principal balance of your credit card debt faster with this type of business credit card,.
Applicable Fees – Know the fees that are associated with the business credit card you are considering, such as annual fees, late payment fees, and cash advance fees. Some fees are worth paying for while others are not, and most are avoidable. If you travel out of the country, find out if it charges a foreign transaction fee. Business credit cards with annual fees tend to offer higher reward programs and sign-up bonuses than cards with no annual fee.
Credit Reporting – When you apply for a business credit card, the card issuer typically checks the personal credit of the business owner to determine creditworthiness. Even though you’re applying for a business credit card using an EIN, your personal credit report will usually be used in the credit decision.
Aside from showing up as a hard inquiry, the new business credit card account will show up on your consumer credit report as an additional liability in your name. The balances and payments on the business credit card will show up on your personal credit report also.
It's crucial to consider applying for business credit cards that report only to the business credit reporting agencies. Business credit reporting not only protects your personal credit, it also helps establish the credit identity of your business.
Sources & Resources: Small Business Administration