A business credit card can simply be good for business. It can take your company’s validity up a notch, which is especially important for emerging companies. Dozens of business credit cards are available from dozens of companies, although choosing the right one for you does not have to be difficult.
Use our credit card finder now to compare and select business credit cards that meet your needs.
What are the benefits of a business credit card?
A corporate credit card can provide the money you need to help establish your business before money starts rolling in. Such help can also be welcome on a month-to-month basis when you may not have funds to lay out at the beginning of the month but will have earned enough by the end of the month to pay off any balance due.
It also makes it easy to keep track of business purchases for bookkeeping and tax-related purchases as you no longer have to differentiate between business and personal spending.
What are some tips for choosing a business credit card?
Certain cards may offer no spending limits but expect any balance due to be paid within one month, according to SmartMoney.com. Others business credit cards may have stricter spending guidelines but more leeway when it comes to paying off your balance over time.
Checking out rewards credit cards is another option, especially if you find one that could lead to substantial savings on purchases and services your business regularly uses. Rewards credit cards for businesses can often be geared toward just those services.
The number of cards you can have issued is another consideration, as you may want to provide additional business credit cards for trusted employees to use. The fee for additional cards is one more aspect to note.
You can also check to see if you can put spending limits on the additional cards to help ensure employees do not go overboard.
Are there any business credit card disadvantages?
In addition to free-spending employees that could rack up large bills, a large, unpaid balance on a business credit card can reflect on your personal credit history. Most business credit card issuers will link your business and personal credit, at least until you have established enough clout with your business to have that link removed. Unpaid corporate credit card balance may become your personal liability.
Your personal credit score may take a mighty hit with either scenario, although both can be kept in check by keeping a keen eye on employees and your own business spending habits and ability to pay off balances in a timely fashion.
What are some differences between a business credit card and a personal credit card?
A major difference between business and personal credit cards, to keep in mind is the way business credit card companies handle disputes. Your personal credit card offers you protection if you receive damaged merchandise or issues with your billing. They may step in if you are having a dispute over charges or an item you purchased with the card. Business credit cards do not come with that protection, SmartMoney.com says.
Was I wrongly denied a business credit card?
Although poor credit or a shoddy financial history can sink your chances of obtaining a business credit card, other factors – such as discrimination – should not. In fact, you cannot be discriminated against when applying for business credit without violating the law, according to the Federal Trade Commission.
Your protection comes in the form of the Equal Credit Opportunity Act, or ECOA, which makes it illegal for creditors to deny credit based on factors that have nothing to do with your business’s financial state.
Creditors are prohibited from rejecting your application based on marital status, age, color, race, religion, and national origin – of either you or your customers.
You can find out why your credit application was rejected if you send a written request for information to the company within 60 days of its denial. It then has 30 days to respond, also in writing. If you do not agree with the reasons, you can always contact the creditor again and try to resolve the issues.
What else can I do to enhance the image of my business?
A corporate credit card can be good for business, as can further establishing your business credibility by registering with at least two credit bureaus: Business Credit USA and Dun & Bradstreet.
SmartMoney.com notes their information goes beyond your business credit history and status, but also extends to:
- Your number of years in business
- Number of employees
- Any legal disputes
- How much you sell
- Dollar Bank Corporate Visa Credit Card
- Who offers the best corporate credit cards?
- Empower Federal Credit Union Corporate Visa Credit Card
- Arvest Corporate Credit Card
- American Express Corporate Card
- First Tennessee Bank National Association Corporate Visa Business Credit Card
- JCB Corporate Credit Card