There are various differences between business credit cards and personal credit cards. Many business owners agree that using a specific credit card for your company is better than using one card for combined personal and business needs.
Before you apply for a business credit card, you need to search for one that will go well with your business’ needs. This is the time to compare business credit cards based on their features and advantages.
In this case, you need to use a few pointers when you compare business credit cards. You’ll need to know the differences among these pointers to assist you in determining which one will best meet your needs.
Interest rate – Compare business credit cards by first considering the interest rate of every card since each can give you an idea of how much you will be paying for interest charges. If your business is at start-up, you should be cautious of selecting a credit card and be aware with the fees and rates.
Credit limit – Majority of credit cards have a base credit limit already available for a potential client. For a company, you’ll need to check for the maximum potential credit limit offered by each card. Check also if the credit card provider has the potential to grant you an increase in credit limit in the future.
Rewards program – Certain rewards programs may also be provided by various credit card companies. These are one of the things that many people are looking for when choosing credit cards. For instance, your company requires you to travel overseas, so you’ll need to compare credit cards that have corresponding rewards such as frequent flyer miles. For example, your business requires you to travel abroad, you will need to compare credit cards that offer frequent flyer miles rewards. Another instance is when your business requires frequent purchases of supplies; verify if the credit card provider offers rewards points for frequent shoppers and how many points are granted per dollar amount or per item purchased.
But be aware of the interest rate, because it’s possible to get higher interest rates from credit card providers that offer many rewards. Compare the interest rates versus the benefits of the rewards program to help you decide if it is worth it.
Other advantages – Other advantages may be carried by other business credit cards. You have to compare business credit cards advantages based on your company’s needs. You may find travel insurance, extended warranties, as well as purchase protection among other benefits.
You will need time to compare business credit cards based on these factors. You will definitely reap the benefits when you find the right one for your business’ specific needs.