How can you choose a credit card that complements your business? What particular factors should influence your choice? Here are some tips:
Your purpose for acquiring a business credit card. Why do you need a business credit card and how do you plan to use it? If you plan to use it often, it’s best to get a business credit card with rewards. Nevertheless, if you plan to use it only for emergency expenses, you may consider getting a low APR business credit card instead.
Would you go for a travel reward business credit card or one with cash back rewards? Would you sign up for a business credit card with gas rewards? What type of reward credit card would be most useful for your business? Don’t forget that you can only get the most benefit from a reward credit card if you pick one that matches your needs and spending.
Your Preferred Mode of payment. Can you pay off your balances in full every month? Or do you plan to carry over balances from month to month? If you intend to carry a balance, make sure that you get a credit card with the lowest APR.
No annual fee credit card. Why pay annual fees when you can get a business credit card without one? Annual fees range from $30 to $80 (and up) depending on the type of business credit card but if you look closely, you’ll find ones with good deals plus no annual fee charges.
The credit card’s reward program. If you want to apply for a reward business credit card, be sure to read and understand the rules of the reward program. This way, you’ll know exactly when and how to use your card to get the most of the program.
For example, is there a blackout date? IS there a limit to the value of rewards you can earn each month or each year? What types of purchases are considered qualified for points? What will it cost you to keep your membership active? These are just some of the questions you need to know before signing up for a reward business credit card.