Business credit cards can be especially helpful for all kinds of businesses. Whether you’re running a corporation with many employees or you just run the business by yourself, it’s possible to use a business credit card to help you with a variety of elements. However, you also want to make sure you’re getting the best business credit card for your needs. Here are four questions to ask yourself to make sure you have the best possible business credit card.
1. What Is the Annual Fee?
First off, what will you be paying as the annual fee? Annual fees are common for credit cards, but not all credit cards have an annual fee; it’s possible to get great rewards even if you’re not paying for an annual fee. Many companies, especially those that are just a freelance arrangement by one person, want to reduce out-of-pocket expenses, which can mean choosing a card with no annual fee if at all possible.
2. Are There Any Introductory APR Specialties?
Some cards offer 0% APR or reduced APR for an introductory time period when you have the card. That can make it a good time to make large purchases, as you won’t have to pay any interest while you’re paying off the purchase. Just make sure you have a plan to pay off your purchase on time, as neglecting to pay off the purchase before the introductory APR expires may cause you to have to back-pay the interest.
3. What Is the Rewards Rate, and Are There Any Thresholds?
Most business credit cards will give you points or cashback every time you make a purchase. However, it’s a good idea to look at the percentage of points or cashback you’ll earn, as well as any thresholds that you might want to be aware of. For example, the Chase Ink Business Cash credit card gives you 5% on the first $25,000 you spend at office supply stores and on internet, cable, and phone services per year, as well as 2% on the first $25,000 you spend at gas stations and restaurants every year. Past that, rewards may stop completely or may just go down.
4. Can You Meet the Bonus Requirement?
Sign-on bonuses are common in many credit cards, and business credit cards are no different. If you can’t meet the bonus requirement for a card, you may want to reconsider the timing of signing up for it; many people hold off on signing up for new credit cards until they have a large purchase coming up. The Chase Ink bonus, for example, requires $7,500 in purchases over three months.
Business credit cards can be extremely beneficial for businesses of all kinds, including businesses that aren’t very large. No matter what you’re interested in getting for your business, you can use these four questions to make sure that you’re ready to sign up for a business credit card. Otherwise, you may want to wait a little bit to find the best credit card for your business.