Small Business Credit Cards – Compare Cards and Get the Best Flexibility
Best Small Business Credit Cards comes with a host of benefits to offer to small business owners. The best small business credit cards contribute a great deal to the overall benefits that a business has to offer, most notably, an additional helping of perks. However, it is essential to note that even the best cards still have some weaknesses. In this article we will look at these shortcomings and suggest solutions. After reading this article you should have a good idea of how to select the best small business credit card.
One of the greatest attractions for small business credit cards is the fact they offer cash backs for many of their transactions. For example, for online purchases, a small business credit card may offer one or two percent cash back on the purchase. On top of cash backs, many issuers offer small business credit cards that offer discounts on business expenses. One of the easiest ways to get money back from these offers is to use the company credit card to pay for your regular expenses. This can help you save money on your taxes.
Another common problem for small business owners have relates to the annual percentage rate (APR). APR is a term that is used by lenders to describe the interest rate over the life of a credit card account. While the APR is usually not too significant for most small business owners, it can be a cause for concern for people who need to plan for longer term payments.
A key problem faced by many small business owners relates to late payment costs. Most small business cards charge a default fee if the holder does not clear his or her account within a certain period. With these cards, the default fee can sometimes be ten times or more than the actual balance owed. This can add up to extra expenses that can be avoided with some research. Talk to your lender about getting information on small business cards with no default fees.
Rewards programs are another area of interest for small business credit cards. Credit card companies are in competition with one another to get consumers to choose their rewards programs. If you have an established account, you will likely find that there are no annual fee rewards programs. However, this might change with a new credit card issuer. Consider researching the different options for rewards before choosing a card with no annual fee. You might even want to combine the rewards you will receive with the low interest rate to lower the overall cost.
Whether you’re shopping for your first card or looking to switch accounts, make sure to shop around to get the best deal. Comparing small business credit cards is as easy as visiting one of the many online cardratings websites. These sites compare the cards based on reward programs, annual fees, and rates.
When comparing small business credit cards consider what it will cost you to make your purchases. You will often find cards that offer cash-back rewards programs. These programs can save you money by allowing you to earn a percentage of your purchases. Some merchants also offer membership sites where you can earn rewards in the form of discounts, free gifts, or cash. Before choosing a card with a cash-back program, make sure you investigate the company’s reputation. You want to choose a card that gives you the most cash-back rewards.
Another aspect of small business credit cards that should influence your choice is the minimum monthly payment required. Most credit cards require you to make at least a minimum payment to maintain your account. The lowest payment may not always be the best because you could be paying a higher interest rate as well. Also, keep in mind that some cards offer frequent flyer miles and other rewards programs. These rewards may offset the cost of having to make payments, and you may want to select a card that has these types of programs.