How To Find the Best Business Credit Card Unveiled?

Thinking how to avail a good business credit card? Remember you are not alone here. These cards come with an array of benefits for small business owners. Besides applying for it is an excellent secondary financing option especially when one is in the requirement for financing yet does not qualify for a traditional business loan.  They can utilize one as a backup for business financing for building business credit, cushioning their cash flow, earning rewards on their purchases and the list continues.

It is tough to look for a reason for not using these cards for a small business. Now that you are thoroughly convinced as to why a business credit card is needed the question is how to get the same?

5 Steps to Follow

It is not different from applying for personal credit cards. Yet is more than merely pressing the "apply" button on the first card offer which comes one's way. If you wish in getting the best card for your business, definitely this will take some consideration and thought on their part. Are you thinking how to find the best business credit card to fit the business needs perfectly? Then follow the following tips sincerely. If done right this process is relatively painless. So get started,

  • Choose Between a Business Charge Card and Business Credit Card- When it comes to business credit cards there are two choices- business charge card and business credit card. Which you apply for will rest on the business’s structure and financial strategies. Here is what makes the two different.

(a)    Interest and Balance- In case of a business card, the interest and balance work similarly as the usual personal credit card. The user can roll over their balance from one month to the other provided they are making the minimum payments every month on the card. As their balance rolls over, this will increase interest all along the way. In the case of one's wallet and credit score, it is best in making the payments monthly on the business credit card. They, however, do possess the flexibility of rolling over payments as and when the need be.

(b)   On the contrary, business charge cards must be paid completely every month. In case payment is missed, the user will have to pay a late fee generally 3% of their balance. Besides, during late payment, they will risk getting their credit line suspended. But the brighter side is, if the payment is made in full each month, they will not require dealing with any interest in their expenditure, any outstanding debt or any surprise fees.

(c)    Spending Limit- In case of a business credit card, it has that preset spending limit based on one's business and personal finances. If you spend below that limit, you are all set. If they go over their spending limit, their transaction may get declined and/or they may be charged for the same. But when it comes to a business charge card, it has no preset spending limit thereby giving the user the flexibility of making big purchases devoid of hitting their limit. Sometimes this is preferable for business owners that are not aware of how high their expenditure will be every month. Through this card, one will possess the capacity of covering expenses regardless of how steep it is. But they need to clear off this balance before the closing of the month.


  • Check Credit Score- The next step is to check where one's credit score stands. It must not come as a surprise; after all one is applying for business credit. Any business credit card provider will take into consideration one's business and personal credit score on their application. It is the individual credit score that will act as the vital decider regarding which business credit cards they can get. Their personal credit score will be extremely crucial if they do not possess any or much business history. It is their credit score that will aid creditors to gauge how sincere and responsible they are with their finances. If in the past they have been a responsible borrower, odds are they will be so in the future. In case of a credit score that is less than stellar, there is nothing to worry about; it is just that the options will be limited. One must know the different options available to them before applying or considering secured cards instead.


  • Present Annual Revenue- While applying for such cards, almost every provider will want to see the amount of revenue the business is actually bringing. After all, they will not provide a credit card if they think you does not possess the means of paying off their balance. So they will desire to see regarding how much they are bringing into their business annually. What if one has just started their business? Is there an option of a credit card for them irrespective of the fact that they cannot show yearly business revenue yet? There is absolutely no reason for any start-up owner to avoiding getting any business credit card. Every business owner must have one.


  • Know What is Required-Another vital fact is one needs to consider what they require from their business credit card. Not all cards are the same or are equal. There is a huge spectrum of cards available today. Before signing up for a card, one needs to carefully think about how their business will operate as well as how they wish to use the card. It is only the cardholder who will know what they invest the maximum on for their business as well as the finest way they can maximize their earnings. It is also vital to make some comparison as to which card will earn the utmost cash back, perks or bonus points for the business and also which card will save the most fees and rates.


  • Reward Points- Some cards provide bonus points when one spends on the card. Besides, some business cards will allow one in earning and maximizing their rewards on particular spending categories such as entertainment, office supplies, gas, hotels or travel. Some cards offer sign-up bonuses too.

So now you know how to get a good business credit card right. Follow these tips and you are done.

About the author

Isabella Rossellini is a reputed financial advisor who has worked for many multinational firms. She posted many articles on business debts and how to consolidate all your loans  etc.


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