Benefits of Applying for a New Business Credit Card
Business credit cards can help owners with things like:
- Building a positive company FICO history
- Simplifying expense itemization for tax reporting
- Taking advantage of concierge services and vendor discounts
- Using rewards for travel expenses or employee gifts
- Tracking employee and department budgets
- Streamlining cash advances
When company owners compare charge-account offers, they should search for the lowest rates, especially if the company won't be paying the card off on a monthly or bi-monthly basis. Zero-percent introductory APRs can be useful as long as cardholders comply with minimum-payment requirements and pay off the balance before a higher rate kicks in and issuers tack on accumulated finance charges.
Owners should be careful not to get drawn in by rewards programs if they're carrying hefty balances. In addition to the higher interest rate typically charged on these cards, consumers have a tendency to charge more in order to earn more rewards--a tradeoff that may not benefit them in the long run.
There are many online resources for first-time owners, including the United States Small Business Administration and MyMoney.gov, that provide information about topics like company financing, tax guidelines, revolving credit lines and retirement planning.
CreditCardApplications.com offers company credit comparisons and online applications. The website also provides consumer card comparisons and applications.