The Best Business Credit Cards
Posted by Jo on February 8th, 2013
What Are The Best Business Credit Cards For You and Where to Find ThemHaving a credit card for your business can really boost your business’s buying power. When looking for the best business credit card, some things should come in to considerations. This article will explain in a nutshell, what happens when you apply for a business credit card.
Banks tend to promote the most profitable credit cards for them, but sometimes these cards are not the best for you. So what is the best credit card for your business? Well it would be great to be able to get a business credit card with lower fees, or a rewards program – with a higher credit limit and also with a lower annual percentage rate. Sounds good doesn’t it?
The Other Side Of Business Credit CardsYou cant expect banks to give you a good business credit card without a personal guarantee.
“Most of the time small businesses owners seeking to borrow but they don’t want to affect their personal credit”,says a banker veteran Clifford Rank.
Big companies like GMC or Microsoft wouldn’t have to qualify for a business credit card based on their personal credit rating. However with owners of small corporations with gross annual less than 1 million its a different story. These are judged based on their personal credit scores when they apply for business credit cards.
Also, the banking sector has been strengthened by the number of small business credit cards issuers, so it’s a drop in the number of issuers that has become harder to find deals with. CreditMonarch.com brings you credit cards offers that have an average APR for business credit cards of 13.5%. In contrast, the APRs in the United States run as high as 24 percent for business credit cards.
On these, the Bank has a limit in what it can offer, even if you have excellent credit or if you have high balances in your bank accounts. Much smaller banks and credit unions offer branded business credit cards under programs that run by big banks such as Wells Fargo and Chase. A small bank that doesn’t like an issuer’s overall card program can negotiate a better one, but not every bank can do so.
Finally, the rates and lines of credit are conditioned through a matrix that combines the credit rating of the business’s income. However, every penny counts when you are running a small business, so make sure, ask questions if it has more than one option, and try to get your bank to offer you a better card, then you can chose the best credit card for your business.
If you would like to apply for a credit card for your business then be sure to check out some of best business credit card offers by our partners in our business credit cards section.