How To Conduct A Business Credit Card Comparison

Given the number of credit card choices available to business owners, it is imperative that you conduct a detailed business credit card comparison before you commit to a particular card. A business credit card can help small business operators to manage their cash flow and business expenses in a better way. However, choosing the incorrect card could lead to more headaches and result in expensive mistakes. There are many factors that you need to take into consideration before deciding which credit card is best for you and your business. Here are a few simple steps to help compare various cards in the market and choose the best option.

Before you begin the process, you need to ask yourself the primary use of the business credit card. For example the card could be used to serve as your expense account for daily expenses, to have a credit line available if and when you need it, or to transfer balances from another more expensive credit card, etc. Your primary purpose will lead you to choosing the right card and get maximum benefit.

Research Your Options

Once you have determined what the purpose of the credit card would be for your business, research banks and ask about you require. You can visit the institution where your business bank account is held, look on the Internet, or talk to your financial consultant. You will find that a variety of options are available to suit every need.

Compare the Offerings

There will be several products that will seemingly suit your needs but this step required you to analyze the options carefully. You should compare the following information on all your options:

• Interest Rate on Purchases
• Is the advertised interest rate only for a specific period or is it an ongoing, more permanent rate
• Any Grace Period on purchases, balance transfers or even cash advance
• Over limit fees
• Annual fees
• Any Rebates that you may be eligible for
• Other special benefits, such as frequent flyer miles
• Supplementary cards for additional employees

Once you have this information, you can draw up a simple credit card comparison chart yourself, or utilize one of many credit card analyzers that will do this comparison for you. Then, match your needs to the cards that are offered. For example, you may choose an airline credit card that will help you offset business travel costs by allowing you to build up points for travel that can be redeemed at a later stage. Similarly, business credit cards can offer other rewards points accumulation on goods and services such as fuel, office goods etc. You can even choose business credit cards that offer a nominal ‘cash-back’ feature against all qualifying purchases.

If your primary need is to transfer balances from an existing card, you need to not only obtain a card that has lower interest rates, but also ensure that you will not be facing escalating interest rates after the introductory rates expire.

Make Sure You Qualify

Once you have selected the business credit card that suits your needs, you need to ensure that you qualify and will get approved for the card you have chosen. While some companies will offer an instant decision, most may take 2-3 business days to process your application.