- Low Rate Business Credit Cards
- For Young Professionals
- For Small Businesses
About Low Rate Business Credit Cards
In today’s economic climate, it has never been more important for a business to have credit. One of the best ways to build credit within a business is to obtain a low rate business credit card.
This type of card is beneficial for just about any type of business, for many different reasons. A low rate business card helps to keep business and personal expenses separate, and it helps you to improve credit ratings by quickly repaying outstanding debt on a monthly basis.
Taking advantage of a low rate card can also save your business a significant amount of money over the course of a year as well.
Today, the most popular type of low rate business credit card is one that offers zero percent financing. This rate is usually valid for a limited amount of time, typically from six to twelve months, before it then expires.
When the rate finally does expire, a more average interest rate will take effect, although it is usually still more reasonable than other forms of credit. For individuals with at least a good credit rating, there should be no problem obtaining a low rate business credit card. Taking the time to monitor you credit score and make improvements where necessary can only further your chances of receiving an ideal rate.
When shopping for a low rate business credit card, you may still be wondering what a reasonable interest rate is following the introductory period. Prior to the global economic recession, a good interest rate was nine percent or less. Today, this is very hard to find; look for a rate of eleven to twelve percent. This may take a bit of searching, but these rates are available.
A low rate business credit card is a necessity for any type of business owner. It will provide you with a line of credit that you can access as needed, as well as provide a cushion of knowing extra funding is available. The lower interest charges will only further help to improve your bottom line over the course of the long run. NEXT TAB >
What Makes the Best Credit Card for Young Professionals
You are just starting out in the world of business. Image is everything. Credit cards are often the tool that many professionals turn to as a way to give them the flexibility to spend on those great looking suits and to dine with the powerhouse group in the company at expensive lunches.
There are some great credit cards out there that can truly be a good investment for the young professional. If that is you, know what to look at before you invest.
Choose For You
The biggest factor to consider is the actual features of the card that work for you and for your particular goals. Each person is different, from the credit score following them around to the actual features needed.
- If you travel frequently, perhaps to business meetings around the world, chances are good you will benefit from having a credit card with travel rewards. It can help you to rack up the miles and save money on travel costs.
- If you do not travel frequently, on the other hand, having this type of credit card can hurt you. The reason is simple: the high annual fees and interest rates can hurt those who need to carry at least a small balance from month to month especially when you will not benefit from the rewards program.
As you can see, a situation like this could pose a problem for even the best young professionals out there. So, the question many are asking is what they should be investing in. The following tips may help you to choose the right offer for your needs.
- Be sure the card offers a rewards program that has real benefits for your particular lifestyle and needs. Look for big bonus offers, too. Some credit card companies are happy to offer you a large bonus just for signing on or they may offer a higher percentage of cash back.
- Know the grace period and the interest rate of the card. If you want to keep costs as low as possible, you need a long grace period with a low interest rate, especially if you plan to carry a balance month to month.
- If you are able to deduct some of your expenses on those lavish lunches on your taxes, or your boss may reimburse you for them, be sure to choose a credit card that gives you the buying power you need. A large limit may be necessary, though some companies are focusing on business credit lines that allow associates to access the same line of credit.
As a young professional, having access to the right credit limit is only possible if you maintain a good credit score. Make purchases wisely. Know what the card offers and what it does not that other cards do. The fact is young professionals can find themselves able to handle the expenses of corporate life without having to spend too much on credit card fees. The right card can actually help you to get more money back for your usage.
Low Rate Business Credit Cards for Small Businesses
One of the fundamental tenets of operating a small business is that you shouldn’t mix business finances with personal finances. It can only complicate your life and it also ticks off the IRS.
Of course, it’s nearly impossible for a new business owner to avoid using a personal credit card because most banks won’t issue a business credit card unless it has an established credit history.
It’s definitely a Catch-22. Still, it’s important to have a deliberate plan in place to build a credit history for your business so that you can take advantage of using a business credit card – and the advantages are many:
- Keeps your finances separate: This alone can save you a tremendous amount of time, effort and costs in terms of record keeping, and it is the best way to assure that you can avoid an IRS audit.
- Reduces personal liability: Although business credit cards vary in terms of the limits of liability, some cards offer strictly commercial liability which means you are not personally liable for debts.
- Improves business cash management: Being able to plan expenditures around expected receivables can enable you to keep more working capital available while covering your operating costs. Utilizing the interest grace periods of credit cards effectively can improve your overall cash flow. Plus, most business credit cards come with online account management for easy access to transactions, reporting and account reconciliation.
- Higher credit limits: Small business credit cards tend to come with higher credit limits which means you can have access to more capital when it’s needed.
- More control over expenses: They are especially useful for controlling employee spending. Most business cards allow for free, additional employee cards.
- Cash back rewards: It’s not uncommon for a small business to spend tens of thousands of dollars a year on office supplies, fuel, utilities, and anything else that is essential to operating the business. Many business credit cards include a robust cash back rewards program that can literally save your business hundreds of dollars a month.
Now that you know all of the reasons why you need a small business credit card, you need to plan a course to obtain one. Of course, you could simply try to apply for one. Your personal bank would be the best place to try.
However, most banks do require that a business have an established credit history before extending any significant line of credit. However, that can be accomplished faster than you might think. Here are some key steps to follow:
- Get a gas credit card: These are more easily obtained and can get the ball rolling on reporting credit payments to your business credit report.
- Open a vendor credit account: Many office suppliers are willing to extend a small amount of credit to newer businesses. It would be helpful if they did report your payments to the credit bureau, but even if they don’t, it’s beneficial to have them as a credit reference.
- Take out a small business loan: If you work with a local bank or credit union, they may be more inclined to extend a small working capital loan. If you can show a stable stream of receivables you could qualify for a revolving loan using your receivables as collateral.
- Build your personal credit score: While banks consider your business credit history, they also look at your personal credit history to gauge your credit integrity.
Where to Look for Small Business Credit Cards
Most major credit card issuers offer various versions of small business credit cards, but you will find some significant differences in their offerings, especially in terms of APR, annual fees and their cash back rewards. It’s not always possible to find one that meets all of your needs and preferences so you should consider them based on your particular priorities. Among some of the leading small business cards, offering the best breadth of terms and rewards are the following:
One of several that offer a 0%, 6 month introductory rate with no annual fee, the Ink Cash card also offers a robust cash back rewards program in which you can earn 5% cash back on the first $25,000 of annual expenditures on office supplies, phone and cable services. You’ll also receive 2% cash back on gas and restaurants, and 1% on all other purchases with no limit on what you can earn. This card is offered to businesses with excellent credit.
Another 0% introductory rate to get you started, this card generates 5 ThankYou points on every dollar spent on AT&T products and services while paying you 3% on office supplies, gas and professional services. 1% is paid on all other purchases.
If you don’t want to wait to build an excellent business credit history, you could opt for this card which will issue credit up to $750 regardless of your current credit standing. It’s essentially a no frills small business card, but it can be an excellent way to continue to build your business credit. There is no 0% introductory rate and the APR is higher than most small business cards, so it should be used within the confines of your available cash flow to avoid carrying a balance.