Business credit cards are becoming increasingly popular, and can be ideal for businesses of any size. Many people are applying for them – they’re heard of how much simpler things can be with a business credit card, how it simplifies accounting, improves cash-flow and makes it generally easier to buy what you need in a business.
What are the advantages?
There are many undeniable advantages of using a business credit card. Firstly, it allows business owners to have more control over their expenses, and have the ability to separate their spending. It makes budgeting much easier when personal spending is separate from expenditure for business purposes, and lets the business owner have more knowledge on what they actually spend. Not only this, but business credit cards are a great way to build your business credit. Regular payments via a business credit card make your credit score rise, period. This means more chance of getting a business loan fuss-free (if you ever needed one) from any financial institutions. Another great factor about these cards is that most of them give high spending limits or no limit at all in some situations, plus good rewards schemes and discounts. You can use them whilst traveling or abroad, and it’s easy to make purchases online and over the phone with your handy business credit card.
How should I choose which card to apply for?
It can certainly be tricky when selecting your ideal business credit card. It’s vital to shop around and see what’s on offer, weighing out the pros and cons of each one in your head as you do so. Below are a few useful things to look out for.
- Credit acceptance. If you have bad credit from the past, it’s of utmost importance to check any requirements on this matter when applying for the business credit card. Do not apply for a card that requires a very high credit score, as this can lead to complications in the future. Know your limits, and always go for the safe bet where credit acceptance is concerned.
- Rewards. This is not the most important factor in a business credit card, but it’s certainly a bonus. If the card already ticks all the boxes for you and offers excellent reward schemes, it should be clear to you which one to choose. However, when considering reward schemes you should relate them to you and your situation. For example, it’s probably a bad idea to go for a card that offers primarily flight discounts when you never fly anywhere!
- Annual fee. This is vital when shopping around, because the annual fee of a business credit card basically determines whether or not you will be losing money. If you think you’ll struggle to pay the annual fee, find another card.
- APR. When applying for any type of credit card, APR is something to not be taken lightly. APR means Annual Percentage Rate, and is the interest you will have to pay if your balance is not paid off. The lower the APR on a credit card, the better.7
Overall, business credit cards are a fantastic way to get ease, stability and convenience with your business finances. They are hassle-free, and allow business owners to separate their personal & business expenditure and gain great rewards simultaneously.
Hey, I’m Blair Thomas and I’m passionate about electronic payments.I helped start eMerchantBroker.com in 2011 we help credit repair companies lock down bad credit merchant accounts. Check out the eMerchantBroker YouTube Channel for more info on their services.
