Before taking on a business credit card, you need to stop and consider options. In fact, you might want to think of getting a credit card as a loan from the bank. As such, you have to look for a credit card that offers you the best terms. If it were a loan, you would take the time to learn of the conditions, the costs and the interest rates wouldn’t you? Do the same when you are looking for a good business credit card. The following are 5 features to look for in a good credit card.
Initial Offers
If your credit is up to par, then you are one step ahead of everyone else. You are credit worthy and that means that credit card companies are vying for your business. They do this by offering great introductory offers on business credit cards which can include a certain time with a zero-per cent interest rate, or some other benefit. You can use this type of card to fund your business or you can even transfer balances on higher interest rate cards to this type of introductory offer card. The key to making this type of card a great advantage to you is to pay off the balance on the card before the introductory period ends.
Look for the Rewards
Many credit card companies offer great rewards, but you want to use these programs wisely. These rewards can be important to your business. They can mean fuel discounts, travel discounts and more. Some of these rewards can even include discounts on vehicle purchases and on dining options (great for those business dinners). But to get the best from these types of business credit cards you must make your payments on time and try to pay off the balance each month.
Expense Tracking
Some credit card companies offer you the option of categorizing your expenses including a year-end spending report. This helps keep track of business expenses and gives you a record for tax time.
No Annual Credit Card Fees
There are credit cards which have no annual credit card fee. These require a good credit rating, but if you pay your balance off every month, this card implies a great savings.
Low Interest Rate
Financial experts suggest that for every $1,000 you have in debt your chances of success decrease by 2-percent. So the lower the interest rate you find on a credit card, the better chance of success your business will have. These cards may offer fewer perks but they also cost a lot less.
Poor Credit Options
Even if you personally have poor credit, you need a credit card of some type to help with your business cash flow. Unfortunately, your options may be limited, but you can still get a credit card. You’ll need to opt for a pre-paid credit card. This is an option where you’ll need to pay a deposit on your credit card, and the financial institution will offer you credit up to your deposit limit. What are the advantages in this type of credit card? Well, the benefits aren’t many but this type of card can help rebuild your credit.
Customized Options
Some credit card companies offer customized options; you can choose the features that best suit your business. These can include longer grace periods, low interest and certain rewards.
Final Thoughts
A good business credit card can offer your business cash flow, but you must manage your debt well, and to do that you have to choose a business credit card wisely. Even low rate credit cards have limitations that you should be aware of. Look at the features offered, read the terms and look at all costs before you sign that contract.
Featured image credit: Low key macro shot with old credit card/ShutterStock
