NextArticles.com » Finance » Most Frequently Asked Questions About Business Credit Cards

---

Most Frequently Asked Questions About Business Credit Cards

Author: NickMakaryk Total views: 2 Word Count: 603

Business credit cards are not only convenient, they are a great way to monitor your spending. They also make bookkeeping and accounting easier because there are fewer cash transactions to wade through and record.

However, no matter why you choose to have a business credit card, there are still some things you need to know. For example, annual fees for business credit cards are generally higher than those for personal credit cards.

You could find yourself paying as much as $150 per annum for cards with extras but if you simply need a credit card to make basic purchases, you would be best choosing a card offering an introductory interest free period.

Cards with an introductory interest free period don't charge interest during this time. This time usually lasts anywhere from a month to 12 months. This can be great news for you as a business, especially if you are new and have setup expenses to deal with. Because of this, a card like this can generally be looked at as an interest free loan.

Your statement shows when the payment is due and this is the last date your money must be received by the company. Some cards such as American Express require that you pay the balance in full each month, so make sure you take a good look at the terms of any credit card before signing up. If you run over there will be no hesitation on the part of the company to apply a late payment fee onto your existing balance and if you are not on an interest free or fixed rate card, you are likely to be penalized for late payment by an increase in your APR too.

The Annual Percentage Rate (APR) is the amount of interest you are charged on the balance outstanding on your credit card. Choose a fixed rate as opposed to a variable one so that the company is not given the option to up your rate of interest for a late payment. This way you can at least keep an eye on your budget. There is nothing to stop you shopping around for a new interest free or low rate introductory offer card if you find yourself paying higher interest rates than you can afford. You are often allowed to transfer balances as an incentive to take out a new card and this can save you quite a large amount of money over a period of time.

It may be true that at some point, you'll need to face a problem with a business credit card. In this case, you'll need information quickly. Many companies have a website with a frequently asked questions page. This is a great place to start when you need questions answered. More than likely, someone else has already faced an issue similar to yours, so that your answers will be right there. Most companies will also provide a phone number so that you can talk with a customer service representative over the phone; most of these companies also have the ability to talk to a customer service representative via an online messenger program directly on their website. Try one or both of these methods out and see what customer service response is before you agree to sign up for a certain card.

Be sensible when considering applying for a business credit card. For example if you are running a small DBA business, you may well not need a credit card. As the credit will be built under your social security number, you have to be sure than you can manage the debt in an effective manner.

Download Hundreds of Complimentary Industry Resources
Get hundreds of popular Industry magazines, white papers, webinars, podcasts, and more; all available at no cost to you. With more than 600 complimentary offers, you'll find plenty of titles to suit your professional interests and needs. Click Here and Sign up today!

Sponsors

About the Author

Nick Makaryk is an Editor, Freelance Writer, and Founder of Best Credit Cards . A Free consumer credit card comparison online webweb site helps consumers find the Best Credit Card while avoiding high interest rates, charges, and fees.

---

Rating: Not yet rated

--Choose-- 0 1 2 3 4 5

Comments No comments posted.

Add Comment

You do not have permission to comment. If you log in, you may be able to comment.

More articles in this Category

1: Easy to get Payday Loans
2: Five Places in Your Life to Live Frugally
3: Top 10 Online Stock Trading Companies
4: Risks to Buying in a Real Estate Bubble
5: Seven Tips to Save on the Grocery Bill