A business credit card is a must for most small businesses. However, obtaining the maximum benefits from this type of credit is not easy and may require you to follow some rules. If you are still starting out, these rules will serve as your guide so you will not end up in trouble later. In this article, we will be discussing some important things that you have to remember when applying for business credit cards.
When looking for a business credit card, make sure that you choose one with no annual fee and a low interest rate. You should also make sure that it offers added security features such as fraud prevention and freeze protection. Look for special incentives such as air miles, points for your purchases and free checkups. Try to get a business credit card with no annual fee and a low interest rate as long as your business does not earn over $500k in any single year. This will help you save on your payment every month.
You can apply online or through the mail. Make sure that your details such as your name, address, contact number and company is correctly entered when applying for a credit card through the Internet. It usually takes around 2 weeks before you will receive a response. On the other hand, when applying for a business card through the mail, you may receive a reply in just a few days. You should also make sure that your bank is the one that will give you the card.
Next, you need to decide what kind of card you want. There are two main types that you can choose from MasterCard and Visa. You can apply for both if you so wish. There are many benefits that you can enjoy when using these two cards. However, there are also several disadvantages if you are going to use your business credit card for personal expenses.
Always remember that you can not avail discounts and cash backs with these credit cards. However, if you manage your credit card well, then you can get some rewards and cash backs. For example, when you use your card for purchases at a certain merchant, you can earn points that you can later redeem. And if you use your card at more than one merchant, then you can also get bigger points for your purchases.
When applying for a business credit card, make sure that you get one with no annual fees. Aside from that, you should also check if there are any membership fees for the credit card company. Make sure that it has a money back guarantee for 60 days in case that you are not satisfied with its services. Finally, check if it offers an electronic billing system.
Some business credit card companies may offer cards that come with travel insurance. This way, you can be insured wherever you go in the world. If you are a frequent traveler, then this is a good chance for you to get your business covered anywhere in the world. In addition to that, you can have a higher credit limit because of the travel . . . . . . insurance.
Once you get your own business credit card, make sure that you keep it properly track. You should always pay your bills on time so that your card will work for you. Also, make sure that you do not spend more than your monthly income. If you constantly do this, your card application may be rejected by the banks. It's important that you only spend what you can afford.