Small Business Brief

Financial Services

3 Benefits to Look for When Applying for a Business Credit Card

Before you start a business, one of the first things you need to do is to get your finances in order. 

This involves getting yourself a business credit card. Choose carefully — picking the wrong one is one of the biggest mistakes you can make.

If you don’t do your research, you could end up landing yourself in debt and losing out on valuable benefits. 

In this post, we’ll make it easy for you by telling you what to look for. Read on to find out everything you need to know about applying for a business credit card.

Our Guide to Applying for a Business Credit Card

Don’t sign up for any business credit card that doesn’t check these three boxes.

1. No Annual Fee

Some cards charge you hefty annual fees for the privilege of using them. If the benefits don’t outweigh this cost, why should you have to pay for it?

You don’t. Instead, you can choose from a range of no-fee business credit cards that will work for you. This will allow you to get the same benefits while being much more cost-effective. 

If you start out with a card that charges a fee and later find yourself not being able to pay it, you may have to close it. This could do damage to your credit score. Avoid this pitfall by choosing a no-fee card from the beginning. 

2. Rewards

Your credit card is likely to help you cover a large number of expenses. While you’re spending all that money, you might as well enjoy some benefits.

The best cards come with special perks like discounts to help you save money and insurance to protect your purchases, so you can spend with peace of mind. They also have reward systems which allow you to collect points as you spend, then later redeem them for cash back or free gifts. 

Different cards come with different rewards, so choose ones that make the most sense for your business. That way, you can get more out of your credit card. 

It’s best to use a credit card comparison site to get an idea of what’s available to you. Learn more here about how to do that.

3. A Low-Interest Rate

Ideally, you’d be able to pay off the balance on your credit card in full every month and avoid paying any interest. However, that’s not always the case.

This is where high-interest rates will sting you. Find a card that offers a 0% introductory APR on all purchases, as well as balance transfers for an extended period. 

Financial Advice for Business Owners

For successful business owners, there’s more to finance than simply applying for a business credit card.

You’ll also need to learn how to set and follow a budget, improve your credit score, and get the right business loan for you.

You don’t have to do all of this on your own. Expert advisors can help you make the right choices for your company. To learn more, read our post on reasons to hire a business financial advisor