Different credit card options for businesses
February 25, 2018 | 12:00 am| | | Start Conversation
If you run a small business, one of the things that you may need to gain access to is a credit card. There are various different options available for those who are looking for suitable business credit cards so you can compare the different ones in order to suit your needs. Having one of these credit cards enables you to benefit from greater ease and convenience and can help you out in the event of a cash flow problem.
There are various factors that you need to take into consideration when you are making your choice from the variety of cards that are available. One of the things that you will need to consider is your credit score, as this can affect the type and number of credit cards that you have access to for your business. If you have a good credit score, you should be able to access a wide range of potentially suitable options.
Some of the top credit cards for small businesses
When it comes to finding the right credit card for your small business, you need to look at your individual requirements and how you plan to use and repay the card. This is crucial in order to help you to make the right choice. For instance, if you plan to use the credit card for general purchases and then spread the repayment over a period of time, you may want to find a card that offers interest free credit for an extended period such as a 0 percent interest card.
Many businesses like to opt for reward based credit cards such as those that offer travel rewards. If you tend to travel a lot as part of the business, these cards could prove ideal because they can save you a considerable amount of money on regular travel. This includes credit cards that offer air miles, which can be ideal if you travel by air on a regular basis. However, with reward based cards you should make sure that you clear the balance each month within the interest free period otherwise you will pay more in interest than you will accrue in rewards.
If you do have damaged credit, all is not lost. While you may not be able to access a lot of the mainstream business credit cards, you can still find lenders that are able to provide access to cards for those with bad credit. However, you need to bear in mind that the interest rate charged on these cards tends to be far higher than the average rate of interest for those with decent credit. You should therefore use the card simply for convenience and then repay the balance in full each month so that you are not hit with the hefty interest rate.
Also, when you are comparing different credit cards, make sure you look at the features and costs associated with the card. This includes looking at whether you will have to pay any annual fees for the credit card.
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