Choosing the Right Credit Card for Your Business
Doing business can be expensive... especially if you're just
starting out in your chosen business. In order to make ends meet
and get everything that your business needs, you might want to
consider getting a business credit card or at least a credit
card that is to be used specifically for business purposes. With
all of the different options available in credit cards for both
businesses and individuals, it can sometimes be difficult to
decide on one specific card to meet your business needs.
The information provided below is designed to help you decide on
either a business card or a personal card for business use, and
should help you to find the best card that you can get for your
needs.
Defining Business Credit Cards
As the name implies, business credit cards are those cards which
are designed to be used by representatives of a business in that
business' name instead of by the individuals themselves.
Business credit cards allow businesses to have credit cards that
don't have to be reissued every time the individuals who are
assigned the cards change positions.
Many business credit cards will also have a much higher credit
limit than many commercial cards, so as to reflect both the
increased income of a business over that of an individual as
well as the higher expense of the things that many businesses
would be purchasing on credit.
When to Use Personal Credit Instead
Though business cards can be convenient, they aren't right for
all situations. Businesses that are just starting out or
businesses with a single owner who deals with much of the cost
up front can often get a better deal from having a personal
credit card for the owner or operator of the business, with that
card being designated to only be used for business purposes.
Many new or small businesses simply aren't established and
prosperous enough for potential card issuers to consider for
their best rates if they consider the business at all. Business
owners and operators may find that they have a better chance
applying for a card using their own credit, or possibly even an
equity line on real estate that they own.
Finding the Best Card Rates Regardless of the type of card that
you apply for, one of the most important aspects of finding the
right card for your needs is locating the card that is going to
give you the best interest rate on any balance that you might
carry. This means that you'll have to take the time to find the
information on a variety of different cards and compare the
rates that are offered on each. Contact a variety of different
banks and card issuers and ask them for their current rates,
making sure to get rate quotes for both personal and business
cards.
Deciding on the Right Card
Once you've collected a variety of different rate quotes, you
should take a little while to compare the other terms of the
cards that you're considering. Check for activation or
processing fees, as well as any monthly or annual fees that
might be present. If possible, you want to find a card with no
additional costs (since you'll already be paying interest on
your balance), but as many business cards have annual fees you
may have to search and find the lowest annual fee that you can.
Taking extra time to find the right card for your business needs
can save you both repayment time and additional money later, so
it's definitely worth the time that it takes.
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