Opening The Best Business Credit Card
It can be difficult to find the right credit card for you and even more difficult to find the right one for your business. But once you do, the rewards certainly pay off. Keep in mind these tips when looking for the best business credit card.
Differences Between Personal And Business Cards
Believe it or not, there are several differences between business and personal credit cards. Business cards may have higher limits and offer different rewards, but this can all come at a price. The CARD Act that protects you with your personal credit card line does not apply to business cards. This may seem ridiculous, but before getting any kind of card, read all of the fine print about late fees, APR, due dates, and everything else. These are the things that you need to check on before getting a company credit line.
1. Late fees-Your business may be charged more late fees than are allowed for the personal consumer. This means that instead of a limit on late fees, you may have to pay anything and the price can just keep going up even when you do not know that you are overdue.
2. Due dates-What is more, the date that the bill is due can change each month. American Express vows to keep their due date always the same for business cards, but some other companies do not do that. Sometimes, companies will send you the bill with not enough time to pay it. And when the bill comes later and the payment is due earlier than last month, you can have a real problem on your hands. When you are not protected by the credit card act, you have to watch out for tricky things like this. Again, read the fine print very carefully.
3. Interest rates-Interest rates may jump after the first year and the introductory APR with low rates may no longer apply. You have to watch out for variable interest rates on your card, just like you would on your home loan. When the market rates go up, yours may climb, so opt for fixed rates or just keep a close eye on your balance.
A company credit line can open you up to some great rewards. You may be able to reap rewards that are specific for company use, such as office equipment or airline tickets. Figure out what your company needs, and find a card with the rewards that make sense for you. Personal lines offer incentives like cash back on groceries or gas.
You want things like points that go towards travel. The rewards offered on your business line can add to your revenue or give you extra money to use at the end of the year when things are tight. Rewards can be used for bonuses, seasonal gifts, or for excursions or parties, even. Figure out how to spend your rewards before getting your card.
A business card may offer higher limits with no fees in the first year. This means that you can start up your small business and get many of the larger supplies in the beginning without having to pay it back right away. So you can get on track to make revenue without having to take out a loan or seek investors. Loans and investments can be hard to attain, but credit is doable.
Cards For Employees
You may even be able to furnish your most trustworthy employees with their own credit card that links to the company. This way an employee can order products without having to use your information or get paid back. There are so many advantages to taking out a credit line for your business. Just make sure to compare and find the best deal for you.