Best Small Business Credit Card

May 7th 2016

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Applying for a credit card is much easier than applying for a line of credit, and it is a smart way to keep track of business expenses. Choosing the right credit card for your small business' needs can lead to saved time and money, which are always welcomed perks. There are several things to consider when choosing a card for a small business.

Check the APR on Small Business Credit Cards

More than likely, you won't be paying off the balance of your credit card every single month. So, one of your primary concerns should be getting the lowest annual percentage rate (APR) available. NerdWallet offers a tool that can help you compare the APR rates of many popular small business credit cards.

If you have good credit, you should be able to secure a credit card with a zero percent APR, but always check to see what the APR will be after the introductory offer expires. Usually these introductory offers last 8 to 12 months. According to Bankrate, the average APR for a fixed-rate card is around 13.02 percent.

Find the Right Grace Period

If you plan on paying off your small business credit card every month, the APR may not be your biggest concern. Instead, you should look for a card that offers you a longer grace period. Having a longer grace period may mean paying an annual charge, but this can be an affordable tradeoff to paying interest.

Find the Small Business Credit Card Perk that Works for Your Business

Credit card companies offer rewards with their card that can save a lot of money for small businesses. The key is choosing the perk that works best for your business type, so you can save the most money.

For example, many cards offer airline mile rewards. This would be a smart card choice if people in your company travel to meetings often. On the other hand, if you mainly do business locally or online, travel rewards won't do your business much good. In this case, you may want to choose a card that offers cash back for purchases.

Finding the best reward can be tough. Using an online comparison tool can help. has an easy tool for comparing all of the different reward cards. has a handy comparison tool for finding a card that offers the most cash back.

Some Handy Points to Remember

No matter what small business credit card you choose, there are some important things to remember:

  • If your small business is a partnership, have the partner with the best credit apply for the company card. This will ensure the best rate.
  • The person who applies for the card is legally responsible for the debt, even if it is a company card.
  • If the card goes unpaid, some credit card companies will pull funds from personal banking accounts.
  • Your card issuer can raise your rates if you are delinquent with your payment for 60 days or longer.
  • Some credit card companies reward you with a cash-back bonus if you spend a certain amount within the first three months of card usage. Usually, you need to spend between $1,000 and $5,000.
  • Credit cards limit their cash-back rewards after the first three months. For example, some cards will allow you to earn cash back until you reach a threshold of $5,000.

Choosing the right credit card for your small business can mean a lot for the stability of the business as a whole. Once you consider the APR, grace period and rewards that each card offers, you will be able to put your small business on the path of better financial security.


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