Each credit card company has its own corresponding interest rate. There many choices, so you will have an idea of which credit card can help you finance and handle your expenses. But it is also imperative that you look for low interest business credit cards so you’ll be able to compare and determine which one will work best for your business.
Why are there card companies/banks that offer low interest business credit cards?
One reason is that business credit cards are regularly used by their card holders in purchasing necessary items for their business and they can also be alternative sources of cash especially during emergencies. So the more often a business owner uses his credit card, the more likely that he’ll get lower interest rates if he pays in time.
It is also true among newbie business owners to use credit cards as additional sources of funds since it is difficult to start off with very limited capital. One way to help start up a business is to apply for a credit card from a bank/card company.
Some tips help you get low interest business credit cards:
Be aware of 0% interest rates. Low interest business credit cards are more preferable than cards that offer initial 0% interest then after 6 to 12 months you’ll get skyrocketing interest rates. Keep in mind that there is generally a catch after an enticing offer, so always look for the terms and conditions of this type of offer.
Lower interest these days might not go below 12%. During the early years, interest rates can go below 9% In the previous years, interest rates can go below 9%. Although uncommon today, there’s still a probability to discover a business credit card with less than 12% interest. You’ll need to search thoroughly or look for reasonable alternative rates.
You need to maintain a good credit score/history. You may not realize it, but majority of credit card companies consider their clients’ credit score when giving reasonable interest rates and other perks. So if you are a late payer, your interest rate is more likely to increase over time. So always pay your dues in time and be responsible in managing your expenses and card usage.
It is also possible to save some money while utilizing very low interest business credit cards. But you have to think about other issues such as your expenses and the way you handle your sources. It would be useless if you have a business credit card that you use for personal reasons because of the low interest rate. When it’s time to account for all your expenditures, you will have less revenue and more payables as a result.