Searching for top business credit cards can be a daunting task, as there are many variables to consider. From interest rates, annual fees, cash back, and travel rewards, picking the perfect business credit card can seem like an overwhelming task. Still, owning a business credit card can help your business thrive, as according to Forbes.com a business credit card can help you earn important business credit, which can help you get loans with greater ease from banks and lenders.
In this article, we will take a close look at the unique benefits business credit cards have to offer, as well as some important variables to look out for, so that you can make an informed decision.
Major Benefits of Owning a Business Credit Card
- Organization
Business credit cards are especially useful for keeping your individual finances and the expenses of your company separate so that each can be managed accordingly. This organized approach to spending will be especially useful when tax season arrives, as you will be capable of getting an accurate picture of your business expenses with ease. Business credit cards can also be utilized by employees, and it will be easy for you to monitor their spending as well.
- Special Benefits
Business credit cards are unique from your typical credit card, as they can offer helpful benefits like travel miles, hotel discounts, and cash back on expenses that are directly business related. Due to an anticipated higher amount of spending from a business in comparison to an individual, business credit cards often offer significant sign-up bonuses as well. Stay on the lookout for top business cards that offer an initial zero percent interest rate, as this temporary benefit can be very helpful for a budding business.
Important Variables to be Aware of
- Rates of Interest
Perhaps one of the most important features of top business credit cards is a reasonable interest rate. From card to card, interest rates can vary quite widely, and it is vital to search for the lowest possible rate available to you so that you can save the most money. By making your payments in a timely fashion, you can help mitigate the amount of interest paid as well.
- Spending Limits
Just like rates of interest, spending limits can vary quite drastically, so it is important that you keep in mind the unique financial needs of your business. Consider tracking expenses over time to get a good picture of what type of spending limit you may need. Top business credit cards will help provide you with more fluid capital, so you can make the purchases you need for your business.
- Liability Protections
According to Forbes.com business credit cards may not provide you with the same level of protection as individual credit cards in case of fraud, and you may not be notified about rising interest rates. While both of these helpful protections are provided to individual credit card holders under the CARD Act of 2009, they may or may not apply to all business credit cards, so be sure to stay vigilant and ask if these protections are provided.
Moving Forward
Hopefully, the information above can help you get a feel for what you need to look out for when selecting between top business credit cards. While business credit cards offer unique features that will be sure to benefit you and help you build your business credit, it is important that you are aware of:
- The rate of interest
- Spending limits
- The availability of liability protections for any card you may be looking for
With these aforementioned vital bits of information in mind, you can make the best decision for yourself and your business, and find a great business card that suits you well. For further information, and a side-by-side comparison of specific top business credit cards, check out this compiled list by a telecommunications company, Ooma.