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What to Look For in Small Business Credit Cards

by GBAF mag

Are you looking for a business credit card? If so, you are certainly not alone. Business credit cards are extremely popular because they can be a great tool for managing your business finances. In fact, many business owners actually use their business credit cards as their primary form of financial finance. But, before you apply, you need to decide what kind of business credit cards are right for your company.

The best credit cards are those that offer no interest rate on purchases, cash advances, balance transfers, and purchases made within the program’s spending limits. These types of cards are called all-inclusive business credit cards. A business credit card offers small business owners easy access to a rotating line of credit with an established schedule of payment frequency. Like a personal consumer credit card, an all-inclusive business credit card normally carries an interest rate that will be higher than most personal cards, but the convenience of only having to make one payment every month makes this option well worth it.

For small business owners, credit history is important. This is why some business credit cards offer small business credit cards with no credit history required. To check whether a credit history will be required, read the terms and conditions. Be sure to look at the annual percentage rate (APR) to determine how much interest will be charged on purchases and transactions.

Other small business credit cards offer rewards programs that give cardholders cash back when they make their purchases at particular vendors. The merchants are the credit-cardholders’ affiliates. The rewards may come in the form of gift certificates, frequent flyer miles, or in the form of paid travel and hotel stays. To determine which credit cards offer the best cash-back deals, compare the details of the different offers to see if the features are similar.

Bonus categories are another way to get a jump on the competition. Different credit companies offer different bonus categories. Some cardholders prefer to get bonus categories that give them access to some specified merchandise, while others prefer to get bonus categories that give them access to specific services, such as the best small business credit cards offer to cardholders who shop at certain outlets. Compile a list of your preferred outlets and shop at those outlets to see which outlet gives you the best reward or service perks.

Another way to improve your business credit cards is to pay your bills on time. Paying your bills on time will increase your chances of getting approved for a business credit cards because cardholders with great credit scores are considered high risk. Cardholders with low credit scores are usually turned away for any credit or debit card. However, great cardholders do apply for cards, and cardholders with low or average credit scores are given a long wait. Therefore, cardholders must make it a point to pay their bills on time in order to get their applications approved.

Most business credit cards today use the social security number of applicants. However, this practice has been deemed illegal by the government and many state card issuers have ceased using social security numbers in their business credit cards application process. This does not mean that social security numbers can never be used for business purposes. If you have a legitimate reason to need your social security number, you can still apply for a business credit cards. This means you can use your social security number to apply for the best small business credit cards available in the market.

Credit cards come in handy especially for business owners who need to manage their personal finances. However, in managing your finances, you should remember that you should not use your credit cards as an alternative to your regular spending habits. You should also know that you should control your spending so you will not end up spending more than you can afford to pay off in your monthly payments.


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