Business Credit Card Reviews


Small Business Credit Card – Things to Consider

In order to effectively using Small Business Credit Card, one must understand the perks and benefits it offers. Here are the list of things need to consider in looking for the best card thats suits your needs.

Despite all the hype about business credit cards, not all of them give the best deals.  What they tell you in the advertisements may not be the exact terms included in the credit card contract.  Therefore, every business owner must be cautious when it comes to choosing a credit card for business.  In this article, we will discuss the things you should consider to get the right business credit card.

A credit card that matches your company’s needs. Make sure that the business credit card is suited for the size, type and needs of your business.  These are just some of the questions you should ask about a business credit card:

  • Do you need a business credit card with a rewards program?
  • Do you want a business credit card that enables you to distribute multiple employee credit cards for free?
  • What particular feature of the business credit card can help you in managing your business?
  • Do you have the option to access your account online?
  • Will you be given yearly summary reports aside from the monthly billing statements?
  • Does the business credit card provide you with a fraud liability protection?
  • Is it a business credit card that particularly caters to small businesses
  • Is it designed for medium-sized or larger business?

A business credit card with low or fair interest rate. Although your goal should be to pay off your balances in full each month, you can’t really guarantee that your submission of payments will be perfect at all times.  There may be instances where you need to carry over your balance and if your credit card has high interest rate, it will definitely make a big difference.  Naturally, you’ll want to go with a business credit card that has a low or reasonable APR.

Choose your rewards. If you want a business credit card with reward, what type of rewards program best matches your company?  There are a couple of reward programs you can choose from such as Travel Rewards, Gas Rewards or Cash Back Rewards business credit card.  Aside from these basic reward  programs, what other privileges and perks does the business credit card offer?

Credit Requirements. Does the business credit card require excellent credit history?  If you haven’t started building your business’s credit history, your personal credit history will be used instead.  Therefore, have you checked the status of your personal credit?  Is your credit score good enough to get you approved or do you need to improve it before applying for a business credit card?

If you want, you can also apply for a secured business credit card.  A secured business credit card requires the submission of cash deposit in your account.  The amount of your security deposit will often determine your credit limit. Although it guarantees approval, secured business credit cards usually have a higher rate of interest compared to business credit cards that require good or excellent credit.  Nevertheless, they can be used for rebuilding or improving bad credit.

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How Businesses Can Build Credit with Business Credit Cards

Whether you are running a big business or have just started up with your own small business, building credit for your company is probably one of your main concerns. Business credit cards offer entrepreneurs the chance to establish a separate credit history for their business.

By establishing good business credit, a business owner is also building a strong foundation for the company. When the time for expansion comes, it will not be difficult to secure a loan approval from lenders and other business financing providers. In this article, let’s talk about how business credit cards can help you grow your business and build credit.

Enhance your credibility. Using business credit cards to make your payments builds up a more respectable image for your company. Having the name of your company printed on your business cards surely adds up to your reputation. Some business credit card issuers today offer the option to use checks through a business credit card account. That means, the entrepreneur can send checks to pay suppliers or vendors who do not accept credit card payments. This is a great feature that some business credit cards offer.

Ease of use. Business credit cards provide a convenient solution when emergency expenses arise. For example, if one of your equipment broke and has to be replaced, you do not have to stop your production just because you don’t have the cash on hand to fix or replace a broken device.

If you receive an exceptionally large order from one of your best customers, you don’t have to refuse because you lack the resources needed to produce such a large demand. A business credit card allows you to make purchases easily and pay them at a later time.

Convenient accounting and bookkeeping. Keeping financial records of the business is one of the most important steps in maintaining good credit. Your business credit card helps you keep track of all your business expenditures without having to do it manually. Most business credit cards come with a free online access where you can personally check your account, download your accounts summary and use it in your accounting.

Safer means of payment. Business credit cards are safer to carry around than cash. This is invaluable since most of the time businesses need to make large amounts of purchases and it’s not practical to carry a bulk of cash. In case the business credit card gets misplaced or lost, one can call the bank right away and freeze the account to prevent unauthorized transactions.

Incentives and rewards. Businesses can also take advantage of the incentives and rewards that business credit cards offer. Because entrepreneurs usually charge large expenses in their accounts, they can easily gather enough points to earn more rewards.

A separate business account. Even for home based business owners, having a business credit card is advised because it helps them separate their personal funds from their business finances. This is an indispensable feature especially as the business begins to expand and acquire more customers.

 

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Avoiding the Pitfalls of Credit Cards for Small Business

Business Credit Cards is very helpful to small businesses. However, you must also consider the risks associated with the use of these cards and know how you can avoid them.

Many financial experts recommend the use of business credit cards for small business entrepreneurs. However, despite the advantages they offer, the success of using business credit cards largely depend on how you utilize your account. In this article, let’s talk about the possible pitfalls that are associated with the incorrect use of business credit cards and how you can avoid them.

Pitfalls of Business Credit Cards

Maxing out your credit. It could be tempting to maximize the use of your credit, particularly if you have a low credit line. Such a habit can pose a great risk because debts can easily pile up in your account until repayment becomes too difficult. Aside from this, maximizing your credit limit can have a negative effect in your credit score. Lenders can instantly consider you as a high risk borrower if your credit history shows that you have the habit of using your credit line to the full.

Charging all your expenses on your business credit card. Because credit cards are so convenient to use, there is also the danger of overspending. In fact, some business owners even charge personal expenses to their business credit cards. This can be a very dangerous habit since it can easily put you in a serious debt situation.

The issue of personal liability. When you apply for a business credit card, there is a statement in your contract that makes you accountable for all debts charged to your business account. This is known as the personal liability statement. Once you sign up for the card, you also agree that you will be responsible to pay for all debts that would be charged to your business credit card. Should you fail to keep up with your payments, your personal credit history is all at stake. Clearly, it is crucial to always be alert on how your business credit card account is used.

Avoid the Pitfalls of Credit Cards for Business

Being aware of the possible dangers on using business credit cards should not at all discourage you from getting one. Instead, it should make you become more responsible and vigilant in managing your credit card account.

One way to reduce the risks is to pay off your balances in full each month. Aside from minimizing the risk of uncontrolled debt, you also avoid unnecessary costs such as the additional interest rates and late penalty charges.

Another vital step in managing business credit cards is to check your account regularly. Examine your monthly billing statements for any errors or unnecessary purchases. This way, you can take the appropriate action immediately and avoid falling in the debt trap.

Make sure that you’ll only use your business credit card exclusively for business expenses. Before charging a purchase, make sure that it’s really important to your business. See to it that you can afford to pay off your charges completely without carrying over your balance for the next month. Finally, submit your credit card payments on time to protect your credit history.

 

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The Drawbacks of Contractors’ Business Credit Cards

Credit card companies know the potential of business credit card clients. This is why they come up with more specific and better features that are especially created to meet different types of businesses. For instance, the group small constructors and construction companies is a niche market with great potential.

To attract contractors and business construction owners, credit card companies offer specific features that are designed to meet their spending style and needs. According to recent surveys in the credit card industry, most businesses spend only less than 5% on their business credit cards. Thus, credit card issuers are currently introducing offers to entice business credit card holders to use their cards more often.

One example is the Chase Contractor Visa Business credit card. This card offers promotional financial and a attractive reward package for those who will spend at least $1,000 or more on their construction material purchases. This card also doesn’t have a pre-determined spending limit so its holders can use it for as much purchases as they need.

If you’re a contractor or is in the construction business, taking a look at business credit cards for contractors are definitely worth considering. Nevertheless, here are the possible drawbacks that you should be aware of.

Possible Drawbacks of Contractors’ Credit Cards

It’s important to remember that each business credit card has its own set of rules and conditions that you need to know. The same thing applies to business credit cards with rewards programs for contractors. If you’re not clear about the rules, you may find yourself stuck with a card that doesn’t reward you at all.

What types of purchases are eligible to earn you points? You need to be very sure about the exact type of purchases or from which merchants you should purchase from in order to earn points. Otherwise, you could be using your business credit card in the wrong way. Even if you charge your purchases to your credit card, if those purchases do not count, you won’t be earning points at all.

Is there a limit to the amount or value of reward points your can earn? Some credit cards would only allow you to earn a maximum number of points each month. The Chase Contractor Visa Business credit card has a limit of 20,000 points per month which means you can’t exceed the 20,000 points even if you made more than $20,000 worth of purchases for the whole month.

Does the card impose a pre-determined limit on spending? In case you exceed your credit limit, would this mean you’re disqualified to earn points? Or would you be allowed to earn points for the amount that falls below your credit limit? Is there a penalty fee for exceeding your credit limit?

These are important terms and conditions that you should be clear about before signing up for a contractor’s business credit card. To learn about the exact terms and conditions, you need to take the time to read the contract before filling-out and submitting your credit card application.

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Beware of Business Credit Cards Online Resources

Are you aware of phishing scams? If not, this article is for you. Let’s discuss how phishing is committed and what you can do to protect yourself against it.

One of the most common techniques used by scammers today is “phishing”. If you’re not familiar with this term, it’s time to make yourself aware of this technique to avoid being a victim.

Phishing Scams and Credit Cardholders
First of all, what is “phishing”? Phishing is illegally acquiring personal information from another person through the internet. It is done using e-mails and false websites where an unsuspecting internet user enters his personal details or bank information without realizing that the source of the email or the owner of the website is a scammer. This method has been practiced way back in the early 90’s yet it has become more advanced in our time today.

Expert identity thieves would often “copy” or ”duplicate” a legitimate company’s website and use it to deceive customers into providing their banking information. The website will often look very similar to the original that consumers who are not aware of this scam is easily tricked and scammed. Sometimes an e-mail will be sent that contains links to these “fake” websites so that when the user clicks on them, he will be directed to the scammer’s site.

Online Business Owners – Beware!
Phishing Scams affect not only consumers but business owners as well, especially those with online businesses. Because of online fraud and identity theft, many consumers are hesitant to make transactions online.

The Federal Trade Commission is vehemently against such crimes related to online fraud and stolen identity. FTC encourages all consumers to be cautious when giving away their personal information especially over the web.

Although most credit card companies accept applications online, everyone is warned that not all websites can be trusted. Before filling up any type of online application, see to it that you are dealing with a reputable company. Check their status from Better Business Bureau. If it is a fraudulent company, chances are it will have record of complaint from its clients. Nevertheless, just because it doesn’t have record of complaint doesn’t mean you should easily trust the company. Do more research about its background and track record.

Be sure that the site uses a secured server. A secured site can easily stand out from “bogus” sites if you know the signs to look for. First of all, the URL of the website should begin with https:// which is a standard protocol for secured sites. You should also look for pad lock icon on the bottom right of your browser. Make sure that this icon is locked that indicates security.

Lastly, remember that banks and legitimate financing institutions will never as you to re-enter your personal details for confirmation. If you receive such an e-mail, don’t respond to it. Instead, call your bank and personally ask them about the e-mail you received. The best protection is to always be aware of how you provide and use your personal information. Keep in mind that fraud and identity theft is always a looming possibility and it is up to you to stay on guard and save yourself from becoming a victim.

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Establishing Business Credit and Personal Credit at The Same Time

When applying for a business credit, do you know that your personal credit is also improving. This article is about how your personal credit can affect the future of your business.

If you’re thinking about venturing into business, better check on the status of your personal credit history as well. Although having an excellent personal credit is not a requirement in business, it is definitely an advantage. In what way?

To start a business, you’ll need financing assistance. Regardless of which form of business financing you wish to acquire- whether a business loan, a business credit card, or other financing option, your personal credit history would most likely determine the approval of your application. Obviously, lenders would prefer clients with an impressive personal credit over those with a history of poor credit.

Having an excellent credit score would not only guarantee a quick approval of your loan application, it also opens more doors of opportunities to qualify for loans with lower interest rates and better repayment terms. Although bad credit business loans do exist in the market, they are often accompanied with higher interest rate, lower credit limits, shorter repayment periods and more restrictions.

Build Your Personal Credit to Establish Business Credit

Clearly, building on your personal credit is one way to make things a lot easier for you. Another reason why you should work on raising your credit score is so you can establish your business credit or corporate credit as soon as possible.

Separating your personal credit history from your business credit is a very important issue. Having a corporate credit protects your personal credit history from possible damages that can result if the business you started doesn’t go as well as expected. For instance, if you were late in submitting your payments on your business loan, only your business credit score would suffer. Without a corporate credit, all your business transactions would directly affect your personal credit.

Usually, it takes about two years after establishing your business credit before you can completely separate these two entities. At the start, you’ll have to rely on your personal credit history when applying for business loans or business credit cards. As your business gains its footing however, lenders would begin to recognize your corporate credit history as the basis for their decisions. That’s why it is a must for new business owners to register their businesses with a business credit bureau immediately.

Dun & Bradstreet is the most popular business credit reporting agency in the US. Upon the start of your business, register for your D&B number so you can start building your Paydex Score right away. Just as timeliness of payment plays a major role in building a personal credit score, the same principle also applies to business credit. By staying within your credit limit and paying ALL your creditors on time, you‘ll be building an outstanding credit history for your business.

Building a solid business credit history is a crucial preparation for your company. By the time you’ll need further assistance to finance the growth or expansion of your business, you can be assured that you can get easily approved for business loans that require excellent credit.

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Using Business Credit Cards as an Essential Tools for your Small Business

Every credit cards made especially for every type of business. Business Credit Cards had been proven as an essential tool for a small business. What are the advantages you can get? Let’s find out how.

For small business owners and home based entrepreneurs, the benefits of using business credit cards are too many to be neglected. Consider the following advantages as to why business credit cards are essential tools for every small business.

Manage business expenses more easily. Having a business credit card enables you to separate your personal and business spending. Business credit card issuers also send monthly billing statements as well as quarterly and yearly summaries. Thus, you can easily keep track of where your business funds are spent and use control where it’s needed. These features are especially indispensable as the company begins to expand and expenses start to grow.

Free up your cash flow. It is crucial for a business to have a solid financial resource at all times. A business credit card comes in handy especially when emergency expenses arise. For example, let’s say that you received a large order from a customer at an unexpected time. Even if you don’t have the cash, you can charge to your credit card all purchases that are necessary to deliver the order on time.

Distribute your funds easily. Business credit cards also provide a more convenient way of distributing funds to your employees with the use of supplementary cards or extension cards. If cash is needed in a hurry, there’s no need to go through the long process of requesting for petty cash and wait for approval. Instead, an employee can charge the expense to his extension credit card that is linked to your account. To ensure that the funds are used strictly for business purposes, every purchase is reflected in your monthly billing statement so you can keep track of your employee’s spending.

Manage your account online. Most business credit cards come with an online banking feature which gives the business credit card holder the option to access his account through the internet. This way, you can check your account and send payments at any time straight from your own computer. Any entrepreneur can surely appreciate this convenience.

Get rewarded from your expenses. Many credit cards for small businesses come with rewards. Reward programs vary from travel rewards, gas rebates, and cash backs so you can choose the exact type of program that best fits your business. Enrolling with the right kind of business reward credit card can bring you huge savings and incentives from your spending.

Build your business credit. After registering with a business credit bureau, the only way to build a separate credit history for your company is to acquire new accounts. To build your business credit history, you can choose to apply for a business loan or a business credit card. Once you’re approved for a business credit card, pay attention to how you use your credit limit and how timely you are in submitting your payments. Remember, if you want to enjoy an excellent business credit, you must never exceed your credit limit and you should always pay off your credit card charges on time.

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# Business Credit Card Articles
# Business Credit Card Online
# Small Business Credit Cards

Business Credit Cards – Essential Tools for Every Small Business

Posted in Uncategorized by businesscreditcardsite on August 27, 2009

For small business owners and home based entrepreneurs, the benefits of using business credit cards are too many to be neglected. Consider the following advantages as to why business credit cards are essential tools for every small business.

Manage business expenses more easily. Having a business credit card enables you to separate your personal and business spending. Business credit card issuers also send monthly billing statements as well as quarterly and yearly summaries. Thus, you can easily keep track of where your business funds are spent and use control where it’s needed. These features are especially indispensable as the company begins to expand and expenses start to grow.

Free up your cash flow. It is crucial for a business to have a solid financial resource at all times. A business credit card comes in handy especially when emergency expenses arise. For example, let’s say that you received a large order from a customer at an unexpected time. Even if you don’t have the cash, you can charge to your credit card all purchases that are necessary to deliver the order on time.

Distribute your funds easily. Business credit cards also provide a more convenient way of distributing funds to your employees with the use of supplementary cards or extension cards. If cash is needed in a hurry, there’s no need to go through the long process of requesting for petty cash and wait for approval. Instead, an employee can charge the expense to his extension credit card that is linked to your account. To ensure that the funds are used strictly for business purposes, every purchase is reflected in your monthly billing statement so you can keep track of your employee’s spending.

Manage your account online. Most business credit cards come with an online banking feature which gives the business credit card holder the option to access his account through the internet. This way, you can check your account and send payments at any time straight from your own computer. Any entrepreneur can surely appreciate this convenience.

Get rewarded from your expenses. Many credit cards for small businesses come with rewards. Reward programs vary from travel rewards, gas rebates, and cash backs so you can choose the exact type of program that best fits your business. Enrolling with the right kind of business reward credit card can bring you huge savings and incentives from your spending.

Build your business credit. After registering with a business credit bureau, the only way to build a separate credit history for your company is to acquire new accounts. To build your business credit history, you can choose to apply for a business loan or a business credit card. Once you’re approved for a business credit card, pay attention to how you use your credit limit and how timely you are in submitting your payments. Remember, if you want to enjoy an excellent business credit, you must never exceed your credit limit and you should always pay off your credit card charges on time.

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Choosing the Right Credit Card for Your Small Business

Applying for a business credit card is a serious task since choosing the wrong one could mean trouble for you and your business. What important pointers should you remember when looking for a business credit card? How can you be sure that the credit card matches the needs and spending style of your business? This article provides practical advices to help you make the right choice.

Understand how the Interest Rates and Costs are calculated. First of all, it is crucial that you understand how the rates and fees of your business credit card are calculated. How much APR applies to your purchases, balance transfers and cash advances? Some cards have more than one APR so you need to be clear about it. How much is the annual fee, late penalty fee, transaction fees, and other charges? Don’t be content with what the ads tell you. Instead, take the time to study the Terms and Conditions of your credit card. Examining the contract would enable you to compare business credit cards more accurately.

Pay attention to the features of the business credit card. Certain features may not be available in some business credit cards. For instance, not all credit cards for business provide an online account access. This feature is very important so you can regularly monitor your account without hassle. Do you need to distribute supplementary cards to your employees? Some credit cards provide this feature for free while others don’t. There are also business credit cards that give you the option to send check payments using your account. This is recommended if most of the suppliers you purchase from do not accept credit card payment. Consider the specific services that are provided by the credit card and choose the one that best matches your business.

Read reviews and get feedbacks from other business owners. What do other business owners say about that particular small business credit card? Check out credit card review websites and take the time to personally interview your fellow business owners. If your business belongs to an organization, why not ask your co-members for feedbacks or recommendations?

Check your personal credit report. If you’re a new business owner who have not yet established a corporate credit, the approval of your business credit card application would be based upon the status of personal credit. Business credit cards with the best deals would require good to excellent credit. Therefore, in order to qualify, you should make sure that your personal credit history is in good standing. If not, take the necessary steps to improve your credit and raise your score before submitting your business credit card application.

Consider small business credit cards with rewards. If you’re certain that you can pay off your monthly balances in full, consider applying for a small business credit card with rewards. Reward credit cards may come with higher APR but if you completely pay off your balance on time, you won’t have to pay the additional interest. A reward business credit card gives you the opportunity to enjoy savings, bonuses and special privileges that are exclusively offered to small business entrepreneurs like you.

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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.

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# Business Credit Card Articles
# Business Credit Card Online
# Small Business Credit Cards

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