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There are lots of decisions to make when choosing the best low interest business credit card. Many of these have special features that can make them attractive like money back cards or accumulation of frequent flyer miles or reward points. Additional considerations can include specific interest rates, fees, and how the credit card reports creditworthiness.
It's not uncommon for a low interest business credit card to have rewards in place, and these rewards may help determine which card is most useful to a business. Cash back rewards function so that a small percentage of money spent is returned to the business. This reward might be great for a company that plans to use a low interest business credit card for most of their purchases. A high amount spent can mean a small trickle of money coming back to the card each month. It functions very much like getting a discount on all purchases.
Some businesses are organized around things like travel, and a low interest business credit card may be used for frequent trips. Those cards that offer bonus frequent flyer miles or savings on things like hotels could be worthwhile and might the best choices. If use of the card tends to mean people will save money on travel in the future, this can be very attractive.
Alternately, many business credit cards offer reward points that can be redeemed for special gifts. Such gifts could become prizes for employees to earn or be used as presents for loyal customers. The gift list might include business equipment that can keep offices running or make a break room more comfortable.
Consideration of potential earnings or rewards from credit cards is only one point of comparison. Owners should also compare specific interest rates, particularly if they intend to maintain a balance. People should consider whether low rates are introductory or permanent and how interest is diminished or increased by monthly or yearly fees. Ideally the low interest rate business credit card should have no yearly fees, and the lowest interest card is most attractive.
Another important aspect to reflect upon is the way a low interest business credit card reports credit. These cards may influence personal and business credit, or only business credit. The latter is more advantageous to building business credit history, according to many financial experts. With the former, applying for the card may actually influence interest rate, and if business owners don’t have impeccable credit they may have fewer offers to consider.
Ultimately, skillful comparison of each card’s features, which should include reading all fine print for hidden details, can help people choose the best low interest business credit card. Owners should also keep an eye open for new credit card offers as they emerge. Sometimes better deals occur later, and it can be advantageous to switch from one card to another, or to simply obtain a new card the business could use in the future.