Before you sign up for a business credit card, you need to make sure that you have chosen the right one. Just like personal credit cards, there are many different costs associated with business credit cards. By taking the time to carefully shop for the best card, you can save yourself and your business much money and frustration.
The first item to study when shopping for business credit cards is the number of fees associated with the card. Many cards will offer lower interest rates and then make up the difference through high fees. Transaction fees, balance transfer fees, and cash advance fees are just some of the fees you should consider. Also, many business credit cards tack on an annual fee. This means you will be paying just for the privilege of using the card. Unless the card offers something phenomenal that you cannot find elsewhere, avoid a card with an annual fee.
Next, consider the interest rate on the card. The interest rate will be based on your business’s credit rating and sometimes your personal rating as well. Be sure to choose a card with a competitive interest rate. Keep in mind that many cards offer special low interest or zero interest introductory periods. This is a great offer, but make sure that you will not end up paying for the low rate with an extremely high rate after the introductory period wears off.
Finally, look into the rewards program with the business credit card. While you do not want to pay more for a rewards program, if you have found two cards with the same cost, choose the one with the business credit rewards program that is the most helpful for your business. If you run an office business, you may not be able to benefit from a travel rewards card. If the card has a good rewards program, low interest rate, and charges few fees, then it is probably the business credit card for your business!
