How To: Getting Low Interest Business Credit Cards

Low interest business credit cards can be obtained by businesses that have excellent credit ratings and a good banking relationship with their bank. A business credit card is important because it allows the business to lower its interest costs and receive higher credit limits.

Current Credit Rating

In order to receive a low interest business credit card, a business should look at its current credit history, as measured by its DUNS rating, and closely scrutinize their financial statements in order to determine the likelihood of approval.  The business should then consider the various low interest credit card offers that are available for businesses and choose an offer that provides the greatest amount of benefits at the lowest cost to the business.

Introductory Low Interest Rates

These cards offer what is commonly referred to as: teaser rates. The cards are designed to lure customers into the company, and charge higher rates once the client is signed up. A true low interest rate credit card is one that maintains a consistent rate and even provides rewards based on the business’s payment history. Be careful when signing up with a card service and take a look at the introductory period time.

Searching for Low Interest Rate Cards

An internet search should provide information concerning the types of offers that are available.  Based on whatever prevailing interest rates are for business credit cards, a business should look for a card that has an interest that is within 1/2 to 1 point of either the prime interest or LIBOR rate.  LIBOR, which stands for the London Interbank Offered Rate, is the typical rate that banks use in its lending and can be tracked online through sites such as Bankrate.com or the finance sections of each search engine.

Finding Additional Benefits

Coupling a low interest rate business credit card with a card that offers different benefits such as cash back, mileage rewards and rebates may provide additional benefits for the business.  A business should look for these offers in combination with a low interest, as such offers may be applicable to the business’s needs.

Consider 3 Offers

A business should compare at least 3 offers before making a determination as to the best card.  This comparison should look not only the rate offered but the terms of the rate and whether or not it is the business or credit card company that benefits from the card’s use.  The card with the lowest rate may not be the best card for the business so an analysis of at least 3 cards is appropriate.