December 20, 2013
Five Tips for Selecting the Right Small Business Credit Card
Over the years, I have had a few small business credit cards at my disposal. Some of my selections have been good, while others have not worked out so well over the long haul.
The good thing is this: there are hundreds of offers to consider. While this can go a long way in helping you find the perfect fit, it also means that you may face more challenges along the way.
How are you going to select the right small business credit card when there are so many options to choose from? Well, here are five tips that will guide you down the right path:
1. Compare online. The best thing you can do is use the internet to your advantage. Not only does this put you in position to compare a variety of credit card offers, but you are also able to read what others are saying.
Best yet, an online comparison will speed up the process. This makes it easier for you to apply for the right card without much delay. Subsequently, you can begin to use it sooner rather than later.
2. Call and ask questions. Are you interested in a particular small business credit card but unsure of whether or not it is perfect for you? Do you have questions that need answered before you move forward?
You can learn a lot online, but at some point you may want to pick up the phone and call a customer service representative. This is your time to ask any questions that may be on your mind, no matter what they are.
3. A reward program is always a good thing. If you are anything like me, you will be using your small business credit card to make a variety of purchases. From airline tickets to office supplies, you know you are going to use your card on a regular basis.
Wouldn’t it be nice to collect points for every dollar you spend? As your points accumulate, so does your ability to cash them in for travel, gift cards, electronics, and cash (and that is just the start).
Note: not all reward programs are the same, so make sure you compare the finer details of each one.
4. Interest rate. In a perfect world, you will payoff your balance in full as soon as your statement arrives. But is this reality? Is this something you will always be able to do? Even if you think the answer is yes, you may find yourself faced with a different scenario down the line.
This is one of the most important considerations when choosing a small business credit card. The lower your interest rate the less money you will pay if you carry a balance.
5. Fees. Many business owners are so mesmerized by the reward program and low interest rate that they overlook just how many fees they will have to pay.
Did you know that some small business credit cards have an annual fee of $500 or more? Are you willing to pay this? If so, are you getting great value in return?
Make sure you are comfortable with any fees you will be charged before signing on the dotted line.
If used responsibly, a small business credit card is a great tool for your company. Just make sure you select the offer that makes the most sense, based on the five points of advice above.