How to Use Low-Interest Business Credit Cards
Businesses can use low-interest cards to:
- Review itemized statements to record employee spending patterns and ensure that merchant accounts are being used properly.
- Take advantage of low- to no-APR introductory rates to pay off as much of the account as possible. Once it reverts back to a higher rate, call the company and ask for a lower lifetime rate.
- Use cards to "borrow" money when times are lean, as long as there is a plan for paying back the debt rapidly. Merchant accounts can help companies manage cash flow if used responsibly.
- Avoid rewards programs until the company is financially secure enough to pay off monthly balances. While rewards programs seem like spending bonuses, their values are typically less than the higher APRs charged by issuers.
As an additional resource, the Federal Trade Commission has a variety of online business financial publications available for owners who are starting or expanding their own companies.
For consumers interested in comparing low-interest merchant accounts or applying for an account online, Credit Card Applications allows users to search by account issuer, FICO rating or card specifics before completing a simple application process.