All types of business credit cards are available, including those that have no fee. The fee in this case refers to the annual fee, also known as the membership fee or participation fee that some credit cards charge just for having the card.
Use our FREE credit card chaser to check out no fee business credit cards as well as a number of other business credit cards that best suit your needs!
Be aware of all the credit card company’s terms and conditions before applying for a new business credit card. They could charge you fees in one fell swoop or break it down into monthly payments, but it still amounts fees with the credit card, whether your business uses it or not.
What other credit card fees should I look out for?
These include credit card late payment fees for not paying the minimum amount due by the due date, an over-the-limit fee for charges totaling more than your amount of credit or any number of penalty fees if your business does not adhere to the conditions outlined in your agreement.
Fees for transactions are another possibility, such as a fee for transferring a balance or obtaining a credit card cash advance for your business. Your business could also face a(n):
- Application fee charged for submitting an application to the credit card company
- Set-up fee for setting up your account
- Fee if you ask for and receive an increase on your credit
Other potential fees include a fee to take out credit card insurance to take care of your charges if you happen to become disabled or unemployed as well as fees for debt suspension and debt cancellation coverage.
The former allows you to stop making payments for a set period if you are experiencing financial hardship, with the promise to start paying again when your economic situation improves. The latter erases your credit card debt altogether with no need to pay it back. The number of fees and the amount of each fee varies from credit card to credit card.
Is there any protection from all these credit card fees?
Your best defense for choosing a business credit card is reading the credit card holder agreement carefully before you agree to it. Pay particular attention to the fine print beneath services and benefits that seem to go beyond the standard services, they may certainly come with a fee.
Although there is no limit on the number or type of fees a credit card company can charge your business, there is a limit on the amount. There is an agency that monitors credit card companies because by law they are not allowed to charge you more than 25% of your initial credit limit the first year you have the credit card. This means your business credit card that comes with a high credit limit also comes with the potential of incurring higher fees. Also, be aware that even if the fees are low for a particular business credit card, the credit card company may try to make up the money with higher interest rates or other costs.
Can I just use my personal credit card for business?
Even if you have a killer agreement with one of your personal credit cards, mixing business with pleasure can backfire, notes Inc.com. Any problems you have with your personal finances may be reflected back on your business, giving your business a poor credit rating or other economic woes.
Having a business credit card exclusively for business use also illustrates how serious you are about your company. It also makes tracking your business spending much easier when it comes time to do your taxes or other accounting maneuvers.
Will getting a business credit card help my credit rating?
A business credit card may help your business credit rating – as long as you pay off your credit card bills on time. Timely payments are the topmost factor when it comes to your business credit score. Although credit card companies do not have to report your timely payments to the credit bureaus you can request that the do so you reap the benefits of paying on time.
Opening several business credit card accounts is not as detrimental to your business credit score as having many active personal accounts. By setting up a business profile with the major credit bureaus, you may also be allowed to self-report on select information. Unless you have the yen to sabotage your business, this should mean an automatic positive report where a positive report is due.
Positive reports from many sources are a strong possibility for your business if you manage your finances well and pay your bills on time. A business credit card can help you with that management.
Use the FREE credit card finder to search for and compare various business credit cards today!
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