Selecting a Small Business Credit Card

September 30th, 2008

One of the most common mistakes that many people make when starting a business is using personal credit cards in order to fund the operations of their business. This can prove to be disastrous to your personal debt ratio, credit score, and your overall financial future.

The best way to avoid these problems is to apply for a small business credit card. But because there are so many, here are some guidelines to keep in mind:

• Choose a card that will help grow your business and build your business credit rating. Some business credit card companies will actually report your credit rating to corporate credit reporting agencies such as Experian and D&B. So it’s a good idea to select a small business credit card that will report to corporate credit agencies, as it will help establish your business credit references. Keep in mind that if the account is not reported, it will not help your credit.
• Select a card that will provide you with the best deal. Small business cards offer some of the most attractive offers available, including very low-rate intro offers and balance transfers. Make sure you understand all of the details to be sure of the terms of the offer, such as the length of the intro rate.
• Consider the benefits and rewards available. There are so many different small business credit cards available now that you have the option of selecting the card that will best match your needs. Do you travel frequently through your business? If so, then perhaps a business credit card that offers travel rewards would be best for you. Other possible options include cash back reward cards and business card that offer gift certificates and rebates.
• Select your preferred type of reporting. One of the great benefits of a small business credit card is the simplification of record keeping through itemized business expenses. Pick the card that will give you organized reports, whether they are monthly, quarterly, and/or year-end statement reports.
• With the number of different business credit cards that are available today, it is easy to select a card that will perfectly match your needs and help your business to grow.