Small
businesses can benefit from having credit cards. The problem, though, is that
the interest rates constantly change and there are programs that can be
confusing. This is why it can be difficult to select a credit card for your
company. If you are currently in the process of searching for a credit card for
your business, here are some important aspects to consider:
Rewards Program
Debit
cards are a great option for businesses. However, if you wish to gain more
rewards at a shorter span of time, a credit card is a better choice. This is
because you will need to spend more in order to get huge rewards points with debit
cards. On the other hand, you can opt for a rewards credit card that has a special
rewards program. As you rack up more points, you can qualify for a great number
of incentives and gifts, which could include office supplies, software and phone
services.
Most
rewards programs have limitations or restrictions. Make sure that you know
these restrictions by reading the credit card agreement presented to you by
your chosen issuer. This way, you will know if the offers are really worth getting
the card or not.
Interest Rates and Fees
It is
no secret that a credit card has many fees. Therefore, before you sign up for
one, you should know how much it will cost you. In general, there are two fees
that you will most likely pay. These are the interest rates and the annual
fees. Interest rates are found on both consumer and business credit cards. They
can prove to be quite heavy for your pockets, particularly when you do not pay
your balances on time.
Annual
fees, on the other hand, are charged against your account once a year. You may
find it a bit tricky to locate a business card that does not have an annual
fee. If you do, you will mostly be required to have an excellent credit history
before you could be approved for the card.
Credit Card Recognition
It is
wise to go for a credit card that is accepted virtually anywhere. This is quite
useful if you travel a lot. There are cards that are accepted in more places
around the world than others. Make sure that the card you choose can be used in
areas that you usually visit. This way, you will not be left without credit or
even cash.
More Helpful Features
Business credit cards come with fraud protection. However, not all of them offer the same policies. Take
a look into this aspect before you sign up for a card. You will be using your
card on many transactions for your business and, as such, it will not be a surprise
that your card number will be available to a ton of vendors. There is always a
risk in this kind of situation. Your credit card company should be prepared to
quickly cancel your card upon your request, particularly in instances where
there is suspicious activity or fraud involved. In addition, you should not be
charged for any falsified purchases.
Your business credit
card should also provide you with online access and all-day customer support. Grace
periods should also be offered where there are no interest fees on certain
transactions.
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