Credit cards are used by most businesses. However, having a good credit score helps you in a lot of ways.
To get a business credit card, here are a few tips you should know.
First of all, before you decide to get a business credit card, you should check out your business credit score. A credit score is the sum of your payment history, available debt, income and credit utilization. It’s a score from 100 to 850, and each number represents the risk associated with getting approved for a particular credit card.
The lower your score, the greater the risk associated with getting approved for a credit card. The higher your score, the lower the risk. For example, if you have a score of 644, you’re less likely to be denied than someone who has a score of 643.
Also, it’s important to understand that credit scores are used by lenders to help determine whether you qualify for a loan or credit card. They also determine how much interest you pay.
A good score means you can borrow more money at a lower interest rate. A bad score means that you’ll have to pay a higher interest rate. Your credit score will also influence your ability to borrow money in the future.
To improve your business credit score, the first thing you should do is pay your bills on time. Paying your bills on time will show that you’re reliable, which in turn will help you build a better credit score.
Secondly, don’t apply for too many credit cards at once. Having multiple credit cards can be beneficial because you’ll have different payment options. If you apply for a couple of credit cards at the same time, you could rack up too much credit.
Also, keep a close eye on your balances. Too much credit can cause your credit score to drop.
Business Credit Cards
A business credit card is an ideal choice for business owners who are looking to maximize their credit card usage while still maintaining control of their finances. Business credit cards offer numerous benefits over traditional personal credit cards including:
- Zero percent APR
- No annual fee
- Online shopping and bill pay capabilities
- Additional benefits such as travel perks and cash back are available
When choosing a business credit card, there are several factors that must be considered. These include the benefits that the credit card company offers, the features that the credit card offers, and the terms and conditions of the business credit card.
Benefits of a Business Credit Card
One of the most important reasons to choose a business credit card is to save money. This can be done by making use of the numerous discounts offered by various businesses. By using a business credit card, you can avoid paying higher fees and interest rates that come with personal credit cards.
Another advantage of having a business credit card is that you can enjoy numerous business perks such as complimentary travel rewards, priority customer service, and exclusive events and seminars. Some of these perks may include airline miles, free nights stays at hotels, and free admission to local events.
Features of a Business Credit Card
Apart from saving money, a business credit card can provide other features that a personal credit card can’t offer. These include the ability to make online purchases and payments, and to make transfers to other bank accounts.
When it comes to business credit cards, some credit card companies offer additional features that are specifically designed for small businesses. For example, one of the best business credit cards for small business is the Chase Sapphire Preferred Card. This card has several features that are specifically designed for small business owners.
Some of these features include:
Access to Chase QuickPay, the online tool that allows you to quickly pay your bills and bills for others.
Access to the Chase Small Business Account which gives you a low rate on cash advances and money transfers.
The Chase Small Business Dashboard which allows you to access information about your financial data, spending habits, and transactions.
Zero percent APR for 12 months for purchases and balance transfers.
Getting your business credit card
Apply Online: If you would like to apply for a business credit card online, the first thing you will have to do is to register for an account with a company that specializes in business credit cards. There are plenty of options out there, but you should make sure that they meet the criteria you need in a card before applying for it.
Review Cards: After you apply for the card, make sure that you review all the requirements they have laid down. Check that you qualify for the business credit card and that you meet their qualifications. In case you don’t qualify for their card, you can choose to apply for another one instead.
Ask for Recommendations: If your potential business partner or vendor has a business credit card that they love and use often, ask them for some recommendations. It will help you gauge their experience and level of satisfaction. You can even call up companies that specialize in business credit cards and ask for suggestions.
Be Flexible: When it comes to finding the right business credit card, it pays to be flexible. There are a lot of options available, so the best way to find one is to pick one that matches your business needs the best. Be open to new opportunities as they may arise.