Choosing the Best Business Credit Card

A business credit card is a great idea if you are a business owner. The use of a card will help streamline your accounts, manage your payments and get a better hold on your business finances. There are many things to consider when choosing the best business credit card for your needs.

One of the most important things to look at when evaluating credit cards for your business is the annual percentage rate (APR). APR is the interest rate that online lenders will charge on the amount charged to your card. There can be wide variance of APR between online credit card companies. Your APR rate will also be dependent on your personal or business credit rating. There may be a different APR for purchases vs. cash withdrawals. If you plan on using your card for cash withdrawals, you’ll want to pay close attention to this rate.

Many business credit cards have annual fees. These fees can range between $50 to as much as $150 per year. Normally your annual fee is charged directly to your credit card at a specific time each year. If you have the opportunity, try to find a credit card without an annual fee. This will save you money in the long run.

Some business owners consider using a debit card, rather than a credit card, for business matters. A debit card will feature a Visa or MasterCard logo but it will withdraw directly from a checking account. A business debit card can be used anywhere a credit card is used, but you are limited in your spending to what is available in the business account.