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One important part of starting a new business can be obtaining credit. A wide variety of new business credit cards exist. Several of the main types of new business credit cards are cards that offer some sort of rewards program, cards that offer airline incentives, cards that offer revolving payment terms, and cards that offer simple purchasing power.
New business credit cards that offer a rewards program can be a good option for business owners that know they will use the card regularly. By using the card on a regular basis, rewards are accrued on qualifying purchases. These rewards can range from airline miles; points to spend on items such as office equipment, gas, and professional services; and cash back on a monthly statement.
Some credit cards for new businesses offer airline miles as their exclusive reward. A certain number of miles are usually awarded for an established monetary amount. Airline miles are usually redeemed through a specific airline carrier and are subject to blackout dates – this means airline travel cannot be taken on those days.
Revolving payment terms are another popular option on new business credit cards. When a card has revolving payment terms, the cardholder has options in regard to how much of their card balance he or she pays each month. The cardholder can opt to pay the entire balance in full at the end of the month, or he or she can break the balance down into more manageable monthly payments. One month the card may only be used for office supplies and paying the balance in-full is not an issue. The next month, a big purchase may need to be made and breaking the balance down into monthly payments may be better on the budget.
Another option in new business credit cards is a card that offers basic purchasing power. This usually means that a card has a set interest rate and set payment terms. Basic cards can be a good option for business owners that want the ability to use a credit card but do not want to worry about anything else in relation to the card.
Some things to consider when opening new business credit cards is that if business credit history is not established, personal credit history may be used as a basis for extending credit. Also, the ability to obtain cards for employees can be an attractive option for many business owners. Looking for cards with no annual fee can save business owners money, as well.