Do you plan on selecting a business credit card for your company? Great decision because your business credit card is going to help you with a lot of things. It can help you in keeping a track of your expenses and separates your personal and business finances. Come tax time, and things will be so much easier for you. Your business credit card can also serve as a great source of some quick funding should there be a need.
While selecting a business credit card, there are a number of things that must be considered. So before you choose any provider, here is what you should ask them.
Business credit cards offer different rates. When the rates are lower, the reward programs that are offered are not that great and there is a smaller limit on the amounts you can spend every month. When the rates are higher, the programs get better, and you can enjoy a higher limit. Indeed, this is advantageous, but a higher interest rate also means that it you debt will increase faster. If you can pay all of this together in the grace period, it will be fine, but if you plan to delay payments, a opt for a business credit card that features a lower interest rate.
Service fees are charged annually by nearly all credit card providers. However, there are some instances in which the first year or the second year of use is free. Try to opt for a provider which has this feature because it can help you in saving a significant amount of dollars.
Whenever you make an expense with your business credit card, you earn a point for it. As these points accumulate, you can trade them for numerous offers. With every business credit card, points are given in a different manner. Some offer you a single point for every 10 dollars spent and some may offer you a single point for every 20 dollars spent. Naturally, you should go for a card that makes it easy for you to accumulate these points.
The reward programs are the primary feature of business credit cards. Though there are many types of these, the general program, the cash program and the mileage program are the most popular. In the general reward program, you can trade your accumulated points for any promotional item. With the mileage program, you can trade your points for tickets, gas, and at times, even accommodation when you travel to another town for business purposes. As for the cash program, you earn cash for the points you accumulate.
The zero interest is a period in which no interest incurs on your debt if you pay it within this period. Find out beforehand the frequency with which companies offer this period.