Business Credit Cards: Importance Of Having One

by : Stevenj.talrechi

If you are a business owner than you know well that a business credit card is not an optional thing; it is nothing less than a requirement if you want to be able to do business. Not every vendor or supplier is willing to extend you a line of credit or offer a revolving account to your business. When you need to order supplies online for your business or make the logistical arrangements for business trips (like renting a car, for instance) it is essential that you have a business credit card for your company.

So, how and from where can you get a business credit card? Many business owners choose to simply apply for one from they bank which their business banks at already - this can be a good choice, since your bank sees your company as a known quantity and may reward your loyalty with a lower interest rate for a business credit card. There are also many websites which will allow you to compare the rates and fees which are offered by different credit card companies without having to go to each company's website separately. You can also check your mailbox; businesses tend to be the recipients of many credit card offers.

Before applying for a credit card for your business from any provider, you should first check the fees and the interest rates on offer from each company. Some companies will charge you annual rates to use their card - these can be very expensive. Interest rates are equally, if not more important; a lot of providers will charge a low introductory interest rate and then raise it later. You should be aware of the length of this introductory period and know what the rates will be after this introductory rate has expired.

Also check fees like late fees, over the credit limit fees, and if you are an international traveler then check on how much fees will impact your overseas purchases. Another thing you may want to consider is if there are any reward programs with the credit card you are considering. This can be very helpful as many business credit cards offer products that can actually be helpful to your company.

Cash back rewards are a commonly offered incentive. You will have a certain percentage of your purchases made over the year credited back to your account at the end of the year. Airline miles are also a common reward; these can be very useful if you need to travel for your business frequently. Other credit card providers will even allow you to choose from different incentive programs which they offer, which lets you decide which one will best work for your business.

As a business owner, you musty also be aware that you will personally be liable for the business credit card and any costs associated with this card. You will have to provide your own information along with that of your business when applying for the card - income, social security number and so on. This is basically co-signing for your business in the event that your business cannot cover the expenses of the credit card on its own. However, if you have a good credit history, being approved for a business credit card should be no problem.