Business Credit Cards
Just as individual consumers can benefit from the use of a credit card, the same holds true for businesses and business credit cards (both big and small).
Before applying for a business credit card, it’s important to learn more about the many types and benefits. This will help you better understand which offer is best for your company.
Let’s start by examining the top benefits of using a business credit card:
Opportunity to earn reward points for every dollar you spend (if you opt for a rewards card)
- Ability to more easily track spending, such as by category (travel, office supplies, entertainment, etc.)
- Credit rating boost, as long as you use your card responsibly
- The power to set limits on how much money employees can spend
- More convenient than cash, check, or debit card
Is My Business Big Enough?
There is a common misconception that only big businesses can qualify for a credit card. This isn’t true.
While you’ll improve your chance of approval if you have a Federal Employer Identification Number, this isn’t always required. Some credit card companies will approve your application if you are an individual with a “doing business as” designation.
Every credit card offer has its own set of qualifications, so make sure you check on this before applying. For example, you may need to prove that you’ve been in business for a particular period of time. Just the same, some credit cards have a minimum annual revenue requirement.
Tip: don’t apply for a business credit card unless you meet the eligibility requirements.
Types of Business Credit Cards
Even when several business credit card offers appear to be the same, a little research will prove that this isn’t the case.
There are many types of business credit cards, with these among the most popular:
Rewards credit card. This is exactly what it sounds like: you earn points for every dollar you spend, which can be redeemed for things such as travel and gift cards.
Cash back credit card. Similar to a rewards credit card, this type provides cash back on all purchases. For example, you may find a credit card with a flat cash back rate of two percent. So, if you spend $100,000 in a given year, you will receive $2,000 cash back just for using the card.
Balance transfer credit card. It’s not the most exciting type of offer, but it can save the day if you have a lot of debt spread across several different credit cards. You can bring all your debt under one roof, all the while taking advantage of a zero percent introductory rate (typically for 12 to 18 months)
Even though these are the most popular types of business credit cards, there are others that exist. For instance, if you have bad credit, you may want to search for a secured credit card offer.
Know What You’re Looking for
The most important thing to remember is that every business credit card is unique. You need to know what’s most important to you, as this is the only way to narrow your list.
For example, the Applied Bank VISA Business Credit Card is designed for sole proprietors and entrepreneurs who need access to credit but don’t have the best credit history and score.
This particular credit card has many other benefits, including:
- No security deposit required
- Application response within 60 seconds
- Starting credit limit of $500
- Monthly reporting to the three major credit bureaus
There are many ways to improve your company’s financial approach, with the use of a business credit card at the top of the list. Now that you understand the benefits and types, you can decide which offer is best for your business.