5 Considerations When Choosing a Business Credit Card

By:Peter Kenny

Choosing a business credit card is similar to choosing a personal card. There are a lot of choices and many points to compare among each card offer. Here are five key points to consider when comparing and choosing the right credit card for your business:

Interest Rates - Interest rates vary with business cards just as they do with personal credit cards. When comparing interest rates, make sure to consider not only introductory interest rates but also the ongoing interest rate after any introductory period. Many cards will offer a 0% APR introductory rate on purchases or balance transfers. These introductory rates often last up to 12 months or more. However, once the introductory period is over, the ongoing rates often increase greatly and you should be aware of this.

Perks and Benefits - Many business credit card companies offer perks similar to those offered to personal card holders. If a small business owner travels frequently on business, then a benefit of frequent flyer miles or discounts on hotel rates and travel would be a great perk. For smaller businesses that wouldn't benefit from travel rebates, many cards offer cash back rebates on business related and other expenses. This option might be best.

Card Issuer - The credit card issuer and backing company should also play a role in choosing the best business credit card. Large companies such as Visa and MasterCard are usually a safe choice because smaller companies' cards may not be accepted everywhere. The issuing bank or institution should also play a role. If the comnpany's own bank offers a business card, it might make an ideal choice simply because of familiarity and trust in that bank.

Applicable Fees - Some business credit cards charge annual fees while others do not. Annual fees, or other fees associated with the credit card, can sometimes cancel out any benefits gained from other perks of a card and should be considered carefully when choosing a credit card for a business.

Customer Service - When choosing a business credit card, it's important for a business owner to understand their customer service needs from the beginning. This way they will be able to choose a credit card best suited to fill that need. For example, if a business owner is a frequent business traveler, they're more likely to need customer service options available 24 hours a day as opposed to only during normal business hours.

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Article keywords: business credit cards, business, small businesses, finance, credit cards, money

Article Source: http://www.articles2k.com

Peter Kenny is a writer for Finance 123. Please visit us at Business Credit Cards and Home Loans

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