Business Credit Card Reviews

Frequently Asked Questions about Credit Cards for Small Businesses

Posted in Uncategorized by businesscreditcardsite on August 10, 2009

If you own a small business, perhaps you may be thinking about applying for a business credit card. Do you understand how business credit cards work and how they can be beneficial for your business? Below are some frequently asked questions that you may ask before getting a business credit card:

How can a business credit card help in managing my small business?

First of all, a business credit card helps you separate your personal and business finances. This can prove to be indispensable when your business begins to grow and you’ll need to handle larger transactions. Having a separate account would help you track your business spending more easily and efficiently.

Having a business credit card account is also essential in building your corporate credit. After signing up with a business credit bureau, you’ll need to open new accounts to start building your company’s credit history. You can establish a solid credit history for your company simply by using your business credit card and paying off your charges on time.

Are business rewards credit card worth the choice?

Some credit cards for business also offer different rewards programs that give you the chance to save more from your expenses. For instance, cash back credit cards allow you to earn rebates each time you use charge purchases to your card. There are also business credit cards that offer gas rebates and frequent flyer miles programs for a chance to fly for free.

If you want a business credit card with rewards, you should make it a point to pay off your balances in full each month. Otherwise, it would be better to apply for a non-reward business credit card with the lowest APR. This way, even if you carry over your balance from month to month, you’ll only pay for a small amount of additional interest charge.

What important factors should you consider when choosing a business credit card?

It’s very important to choose a credit card that complements the needs and spending style of your business. This is especially true when choosing business credit cards with rewards. By picking a rewards program that fits your spending, you can easily earn bigger incentives and discounts. Make sure that you are clear about the specific rules of the credit card’s reward program so you can maximize the rewards it offers.

Needless to say, it’s crucial to check the interest rate that the card offers. Naturally, you’ll want a card with a low rate of interest. However, keep in mind that a low interest alone does not guarantee a great deal. Don’t forget to check the rest of the fees that’s associated with the card.

For example, does the card require an annual fee? If so, how much would you need to pay each year just to keep your account active? Aside from the annual fee, check the late penalty charges, transaction fees, balance transfer fees, and the rest of the costs of your card.

Why should you read the fine print?

It is a must to read the complete Terms and Conditions before signing up for your chosen business credit card. The true costs and terms as well as all disclosures that you need to know about the card are stipulated in the contract. If you won’t take the time to read the fine print, you could end up with the wrong business credit card.

Related Links:
# Business Credit Card Articles
# Business Credit Card Online
# Small Business Credit Cards


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