Choosing the Right Small Business Credit Card

Owning your own small business can come with ups and downs. Owners are on the constant move to improve their business, create a system for managing, and choosing the right business accounts that will deliver what they need when they need it. One of those accounts that every business owner must take into consideration is their business credit card account. Choosing the right card for your business is as important as choosing the products or services you offer. You want to be sure to make a wise and informed decision before signing your business up for any account. Here are a few things to take into consideration when you are shopping for your first small business credit card.

Determine your Needs

In the past choosing a credit card was easy, mainly because they were basically all the same. Now with competition growing, credit card companies offer different benefits and rewards to entice small business owners. If you are searching for a business credit card, you should first see what your needs are. If you could benefit from a card offering purchase rebates or cash back, you should look at cards that offer that. If your business requires travel, perhaps a card offering frequent flyer miles would help you save money.

Interest Rates

The most important factor in choosing a card is their interest rates. If you plan to keep a constant balance you will want to make sure the interest rate is as low as possible. If you keep a constant balance on your card each month, this will save you hundreds of dollars a year. However, if you pay off your balance each month, you may benefit more from a higher interest rate with more rewards offered in return. Base your decision on how you keep your credit card balance.

Another factor you may want to consider is the introductory interest rate. If you are planning to use the card immediately for large business purchases, you will want to find a card with 0% introductory interest. Also, be sure to speak with a representative and find out how long the introductory rate will last so you know how long you have to pay off the balance before your interest kicks in.

Shop Directly

There are many banks and affiliates that will be more than willing to put a business credit card in your wallet, however, shopping directly with the credit card companies can give you the chance to choose the right card for your business. Apply directly to Visa, MasterCard, American Express, or Discover. They can offer your more services and features that will better fit your needs and use.

Compare Large and Small Banks

If you choose to get your card from a bank, don’t be afraid to shop around between the larger financial institutions and smaller banks. Sometimes you will find more rewards, a lower interest rate, and better service through a smaller more personal bank than you will with the larger ones. Size doesn’t always matter in business, but great customer service and rewards does.

Choosing your first business credit card can be a tedious task. If you know what you need and know where to look, you can save a lot of time and frustration, as well as make the right decision based on how you use your card. Take your time, compare each card, and ask as many questions as you can before signing your business up for an account. Your business credit card is a long term financial relationship you want to be absolutely sure of before joining.