The Facts About Business Credit Cards
As a small business owner, you are probably inundated on a daily basis with special offers in the mail – ranging from discounted telecommunication systems to credit card offers. Some of the credit card offers, especially those with a limited time no interest, may be tempting to accept. Before you jump in and apply for one of the credit cards, there are a few things you should keep in mind.
Small business cards aren’t regulated by the 2009 Credit Card Accountability, Responsibility and Disclosure Act, which protects consumers from such practices as arbitrary interest-rate increases. These increases could amount to hundreds or thousands of additional costs for your business. It’s imperative to read the fine print to see what the issuer is offering.
Evaluate the full range of amenities offered by the credit card and don’t just go by whether or not they charge an annual fee. Sometimes that annual fee may be worth it if the card benefits include concierge service, added insurance or access to airline clubs. If the benefits are items you routinely use in your business, then it may make sense to choose an annual fee card.
Business credit cards are typically issued in the owner’s name and require a high credit score. Most cards will report late payments to both the business credit bureau, as well as to the business owner’s personal credit report.
Business credit cards can be very helpful in tracking all of your expenses in one place and racking up perks, but be careful to choose the right one that will benefit your business the most.