Doing business can be expensive… especially if you’re just starting out in your chosen business. In order to make ends meet and get everything that your business needs, you might want to consider getting a business credit card or at least a credit card that is to be used specifically for business purposes. With all of the different options available in credit cards for both businesses and individuals, it can sometimes be difficult to decide on one specific card to meet your business needs.
The information provided below is designed to help you decide on either a business card or a personal card for business use, and should help you to find the best card that you can get for your needs.
Defining Business Credit Cards
As the name implies, business credit cards are those cards which are designed to be used by representatives of a business in that business’ name instead of by the individuals themselves. Business credit cards allow businesses to have credit cards that don’t have to be reissued every time the individuals who are assigned the cards change positions.
Many business credit cards will also have a much higher credit limit than many commercial cards, so as to reflect both the increased income of a business over that of an individual as well as the higher expense of the things that many businesses would be purchasing on credit.
When to Use Personal Credit Instead
Though business cards can be convenient, they aren’t right for all situations. Businesses that are just starting out or businesses with a single owner who deals with much of the cost up front can often get a better deal from having a personal credit card for the owner or operator of the business, with that card being designated to only be used for business purposes.
Many new or small businesses simply aren’t established and prosperous enough for potential card issuers to consider for their best rates if they consider the business at all. Business owners and operators may find that they have a better chance applying for a card using their own credit, or possibly even an equity line on real estate that they own.
Finding the Best Card Rates
Regardless of the type of card that you apply for, one of the most important aspects of finding the right card for your needs is locating the card that is going to give you the best interest rate on any balance that you might carry. This means that you’ll have to take the time to find the information on a variety of different cards and compare the rates that are offered on each. Contact a variety of different banks and card issuers and ask them for their current rates, making sure to get rate quotes for both personal and business cards.
Deciding on the Right Card
Once you’ve collected a variety of different rate quotes, you should take a little while to compare the other terms of the cards that you’re considering. Check for activation or processing fees, as well as any monthly or annual fees that might be present. If possible, you want to find a card with no additional costs (since you’ll already be paying interest on your balance), but as many business cards have annual fees you may have to search and find the lowest annual fee that you can.
Taking extra time to find the right card for your business needs can save you both repayment time and additional money later, so it’s definitely worth the time that it takes.
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