There are various differences between business credit cards and personal credit cards. Numerous business owners agree that utilizing separate credit cards is much better than utilizing a single card for personal and business transactions.
Before applying for a business credit card, you need to look for the right one that will suit your business’ needs. This is the time to compare business credit cards based on their features and advantages.
With that said, you’d need a few pointers to help you compare business credit cards. You will need to know the differences among these pointers to help you decide which one will work best according to your needs.
Interest rate – When your compare business credit cards, the interest rate of each card can give you an idea of how much you will be paying for interest fees. If you have a start-up business, you should be cautious when selecting a credit card and be aware of their rates and fees.
Credit limit – Most credit card companies have base credit limits when they provide their card products to clients. For a company, you’ll need to check for the maximum potential credit limit offered by each card. Also check if the credit card company will be able to grant you an increase over time.
Rewards program – Certain rewards programs may also be provided by various credit card companies. Many clients are looking for these rewards when they’re selecting credit cards. In your case, you will have to look for rewards that will give your company advantage/s. In your case, you will need rewards that can benefit your business. For example, your company requires you to travel overseas; you’ll have to compare credit cards that offer frequent flier miles rewards. Another instance is when your business requires frequent purchases of supplies; verify if the credit card provider offers rewards points for frequent shoppers and how many points are granted per dollar amount or per item purchased.
However, you should also be aware of the interest rates since it is possible to get increased interest rates from credit card providers that offer numerous rewards. Compare the interest rate versus the benefits of the rewards program to be able to determine if the payout is worth it.
Other advantages – Other advantages may be carried by other business credit cards. You will again need to compare business credit cards benefits based on your business’ needs. Travel insurance coverage, purchase protection, extended warranties are among these other advantages.
You will need time to compare business credit cards based on these factors. Nevertheless, you will surely reap the advantages once you find the ideal one for your business and particular needs .