Maxed Out: How to Properly Evaluate Business Credit CardsUsing a credit card for your business expenses can save you a significant amount of money - up to 5 percent on purchases such as gas, office supplies, telecommunications, and travel. With the key benefit of building credit, these cards also offer various other rewards such as air miles and expense reporting.
With all of the different credit card companies and deals available, finding the right one for your business can be overwhelming and confusing if you're not properly prepared. However, doing your homework will help steer you in the right direction to meet your business requirements.
If you are attracted to 0 percent annual percentage rate (APR), be sure to research how long that "0 percent" will last. Some credit card companies will offer this promotion for a year; some will offer it for only a few months. For instance, the Citi Platinum Select card offers for up to 12 months with no annual fee. If the APR benefit is only offered for a short term, you need to research what percent you will be paying after the offer has expired. Also, don't forget to look into the annual fees.
Some credit cards will offer air miles; others will offer "cash-back" rewards on such products as gas and car rentals. Determine which reward will work for you before applying for your business credit card. Blue Sky from American Express for instance, allows you to earn one mile per dollar spent - with no restrictions. You are also offered the option to obtain discounts for hotels and car rentals.
Additionally, the Discover Business Miles card offers two miles per every dollar spent on gas and travel for the first $5,000. After you hit the $5,000 mark, you earn one mile per every dollar spent on all other purchases.
Some business credit cards require you to physically go into the bank to pay your bills, while others offer easy online payments. Making online payments is often standard; however, it is always beneficial to discuss this with the credit card company. It's also smart to find out what the grace period is before interest will start being charged on your purchases.
Before selecting a business credit card, do your homework. Obtain referrals from friends who own business credit cards, Google "credit card options," and compare these products online. If you're satisfied with your current bank, make an appointment and ask for the best options they can offer you. Remember that you're selecting a credit card to benefit the company, not just yourself. While a business credit card has many rewards, and every business should own one, you should always conduct in-depth research before you apply.