Questions When Choosing A Small Business Credit Card
As a small business owner your credit card can either be a lifesaver or the biggest mistake that you ever make. Getting the most of your business credit card begins with choosing the right one. In your search for a credit card there are six very important questions that you need to ask and get the answers to if you want to choose the right card.
You must also be willing to do a little research and look beyond the APRs and rewards although these features are also very important. You experience as a consumer would go a long way in teaching you the right questions to ask when you begin shopping for a card as a business owner. Below are the six questions that you need to ask when looking for the best card for your business.
If you travel internationally and need the convenience of your card in your travels it would be important to make sure that there would be no restrictions in using the card while you're there. There have been many reports of credit card companies limiting or cutting off purchases when the card is used internationally. Even worse is that alerting the lender of your upcoming plans to use the card in these seems not to matter one bit.
Check with the provider to make sure that you will not have any problems using the card on your international travels and go one step further and search for reviews regarding this from other cardholders. Doing this beforehand will save you from the hassle and embarrassment of a declined transaction later on or unavailable funds during your travels.
Business owners depend on the business credit rewards to cut costs in the business. This is why it is extremely important to make sure that the rewards you receive will be accessible when you need and truly benefit your business. In some circumstances cash back rewards will serve you better than airline miles especially if you do not have to travel very much for business.
It is a good idea to estimate your spending and calculate the amount of rewards you can expect to receive so you can determine if it will make sense for your business. Other considerations you need to bear in mind are expiration dates for the rewards and charges for redeeming the reward points.
The best business cards will offer perks that will save the business money. Those perks can translate into discounts on business products and services or other benefits like travel or concierge services. The services with some programs can be almost as good as having an extra employee! Before you sign on to any provider have them provide you with full details about all the available "extras" that come with the card.
Find out if there are any restrictions or if there are specific criteria that you will need to meet in order to qualify. You might be surprised to find out just how many benefits that there are to be had if you take the time to find out.
If you are making large purchases for your business having the card show on your personal credit report will have a negative effect on your score. This is true even if you pay off the balance. On the other hand a large credit limit that you really touch will have a positive influence. You must understand this and discuss with the lender even before you apply for the card. Weigh this carefully as it could be used to your detriment or for your good.
It sucks to have a great card with good benefits where the customer care is lacking. What good are benefits if you cannot get access to them? This is why you need to know how responsive the customer service department is to the needs of other small business owners like yourself. Ask around at small business forums online or credit card review sites to gauge the level of service provided by the lender.
This might seem unimportant until you understand that you can use your card as a low interest or no interest short term loan. Longer grace periods mean that you will have more time to pay off your balance without accruing interest. Find out from the provider what the grace period will be on the account so you will know how much time you have to repay without interest. Grace periods that run from 20-25 days and more are the best there is to be had with credit cards.
You must also be willing to do a little research and look beyond the APRs and rewards although these features are also very important. You experience as a consumer would go a long way in teaching you the right questions to ask when you begin shopping for a card as a business owner. Below are the six questions that you need to ask when looking for the best card for your business.
Will you be able to use the card in the places that you want to?
If you travel internationally and need the convenience of your card in your travels it would be important to make sure that there would be no restrictions in using the card while you're there. There have been many reports of credit card companies limiting or cutting off purchases when the card is used internationally. Even worse is that alerting the lender of your upcoming plans to use the card in these seems not to matter one bit.
Check with the provider to make sure that you will not have any problems using the card on your international travels and go one step further and search for reviews regarding this from other cardholders. Doing this beforehand will save you from the hassle and embarrassment of a declined transaction later on or unavailable funds during your travels.
Will you truly benefit from the credit card rewards?
Business owners depend on the business credit rewards to cut costs in the business. This is why it is extremely important to make sure that the rewards you receive will be accessible when you need and truly benefit your business. In some circumstances cash back rewards will serve you better than airline miles especially if you do not have to travel very much for business.
It is a good idea to estimate your spending and calculate the amount of rewards you can expect to receive so you can determine if it will make sense for your business. Other considerations you need to bear in mind are expiration dates for the rewards and charges for redeeming the reward points.
Will you receive other perks that will benefit your business?
The best business cards will offer perks that will save the business money. Those perks can translate into discounts on business products and services or other benefits like travel or concierge services. The services with some programs can be almost as good as having an extra employee! Before you sign on to any provider have them provide you with full details about all the available "extras" that come with the card.
Find out if there are any restrictions or if there are specific criteria that you will need to meet in order to qualify. You might be surprised to find out just how many benefits that there are to be had if you take the time to find out.
Will the card show up on the personal credit report?
If you are making large purchases for your business having the card show on your personal credit report will have a negative effect on your score. This is true even if you pay off the balance. On the other hand a large credit limit that you really touch will have a positive influence. You must understand this and discuss with the lender even before you apply for the card. Weigh this carefully as it could be used to your detriment or for your good.
How good is the service?
It sucks to have a great card with good benefits where the customer care is lacking. What good are benefits if you cannot get access to them? This is why you need to know how responsive the customer service department is to the needs of other small business owners like yourself. Ask around at small business forums online or credit card review sites to gauge the level of service provided by the lender.
What is the length of the grace period provided?
This might seem unimportant until you understand that you can use your card as a low interest or no interest short term loan. Longer grace periods mean that you will have more time to pay off your balance without accruing interest. Find out from the provider what the grace period will be on the account so you will know how much time you have to repay without interest. Grace periods that run from 20-25 days and more are the best there is to be had with credit cards.
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