Selecting a Credit Card for Your Business

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.