Secured Business Credit Card News And Information

Business Credit Card Offers

Choosing among business credit card offers can be rather tricky. There are a multitude of factors to consider: rewards, cash back, interest rates, and transaction fees, just to name a few. Choosing the best business credit card can be tough.

So how can you make an informed decision?

A good way to start is to determine what exactly you intend to use the card for. Is it for inventory purchase? Perhaps it’s just there to replace petty cash and deal with odds and ends? Maybe you use it to take clients out to lunch? Depending on what your end use is, you may need just a simple low rate bare bones card or a more specialized rewards card. Lets take a look at some of the offers out there.

Cash back:
A cash back feature on a new business credit card is usually inadvisable because many cash back options are largely a psychological offering; they increase the cost of the purchase and then give you the money, or can even sometimes reward less than you pay for the cash back service itself. There are rarely any free lunches. However, some visa business credit card offers do exist that offer cash back which does not actually come out of the bill itself. The moral of the story is be sure you know just what type of cash back the credit card company is really offering you.

Low Interest Rates:
A low interest rate is what you are aiming for if you are planning to carry a balance, but be wary of cards that have short or no grace periods and the ability to change their rates at a whim. The ideal low interest card will offer you a low fixed rate and not just a low introductory rate.

A final word on interest rates: shopping around can be very helpful but the best way to do so is to find an initial card that meets your requirements, haggle for the lowest interest rate you can get at the time and then revaluate over a fixed period of time. Being able to say, “My interest rate right now is X, can you do better?“ is a much stronger position to come in from rather than just saying that you’re shopping around.

No Annual Fees:
Ideally your business credit card offer will have low or no annual fees, as this is where the majority of losses are taken by groups that do not habitually carry balances. Some traps associated with no annual fee cards are high transaction fees or higher interest rates.

Specialized Accounting Features:
Some gold/platinum cards offer specialized reporting that can be altered to your company’s specific needs. These can potentially save your company and accountants mountains of expense reports and other burdensome paperwork.

What’s the most important thing you can bring while card shopping?
A calculator. Yes, it sounds rather simplistic, but figuring out how much your transaction fees will total in a month will save you a potential headache in the long run.  As always, read the fine print. You’ll be glad you did.