Small Business Credit Cards
If you have a small business and are just starting out then you will probably want to invest in some small business credit cards. Having one or more can come in handy when it comes to purchasing necessities for your growing business. As well they can also provide you with rewards if they come with such a program.
Are you aware that just as individuals have credit scores, so do businesses? If your business venture is very new then you will not have established a business credit score yet and as such will have to use your personal one in order to obtain credit. Keep your credit in good standing by always paying all of your bills on time and paying more than the minimum per month. This should help you to get a credit card for your business when you decide to apply for one.
Not all credit cards for small businesses are made the same way. For example, some are designed in such a way that you must pay off your balance every single month. Yet others are like personal credit cards in that you can make monthly payments until you pay off the balance if you find it necessary to carry your balance over. Only you can determine which type of card is best suited for your business needs.
Depending on how often or how much you plan to buy on credit, you might want to apply for different cards that offer you different things. For example, if you apply for a credit card where you can carry a monthly balance then look for one that has a low interest rate to keep your costs as low as possible. On the other hand, the credit card that must be paid off in full every month might come with a cash back rewards for the purchases you make which can end up being very beneficial to you!
There are plenty of credit card companies that offer no interest or low interest rates for small businesses during the introductory periods. These are not always as beneficial as they may seem. Make sure you read the policy over carefully and in particular the information regarding the long-term interest rates before you apply for the card. If the introductory offer is something you wish to take advantage of then make sure you know exactly when it will come to an end for the purposes of budgeting.
Always keep all of your personal and business papers and information separate. This includes all of your bills and receipts connected to your credit cards. Being organized will make things a whole lot easier for you when tax time rolls around.
