The best small business credit cards can be found right here on this site. Having the ability to compare different credit cards by what they offer, what your credit needs to be to qualify and so on makes it incredibly easy to find the perfect card for your business.
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Choosing the right credit card for your business can seem a bit overwhelming because there are so many options to choose from these days. However, by reading about the different cards available and learning what they have to offer, you can narrow down your choices quickly and effectively.
How do I decide which small business credit card is the right one?
The first thing that you want to look at is the terms for each of the credit cards that you are considering. Some low interest credit cards, for example, have an annual fee, others offer no rewards program, which means you don’t earn points or cash back for the purchases that you make.
You should also be aware that with the new rules in force by the Federal Reserve, credit card companies are allowed to close your account if your credit starts to go bad, even if your account is in good standing. However, this has to be stipulated in the terms and conditions of your contract, which is why it is very important to know the terms of your business credit card.
You will also want to be aware that some credit card companies, such as American Express, reserve the right to require you to pay your debt in full if they choose to close your credit account. If you are maintaining a $100K balance, this could prove to be an impossible situation for your business.
Before a creditor can make any changes to your account, however, they have to give you notice in writing 45 days prior to making those changes. The exception to this is if you are late on your payments or your credit card is coming to the end of an introductory offer.
You should also compare the interest rates as well as the rewards programs between credit cards. If you are interested in two cards that offer travel rewards at the same interest rate, then you might want to look at things like whether or not there are blackout dates for travel, if there are special circumstances where you can earn more points, if there are caps and expiration dates on points and so on.
Will my personal credit be checked if I apply for a small business credit card?
The only time your personal credit will be checked, if you are applying for a business credit card, is if you have tied your business up with your personal finances. If you have an EIN from the government, then you can use that number in lieu of your social security number.
You will be required to enter your business number, Dun & Bradstreet number, if you have one, as well as your legal business name. If you are running a home business with no legal business name and no EIN, then credit card companies will likely not consider you and you will be turned down for the card.
According to the U.S. Small Business Administration, you should really consider separating your business and personal finances so that you can protect each aspect from the other.
Can I use my personal credit card for business?
Sure, you can use your personal credit card for business and vice versa. You simply need to ensure that you log your spending separately and keep your receipts for tax purposes. Also, keep in mind that it is easy to hurt your personal credit by maxing out your credit card for business purposes.
Keeping a separate credit line for your business ensures that if you have to use your business credit card for a business emergency because your cash flow is down that your personal credit score is unaffected if you cannot make on time payments to your business credit card.
Although no one actually sets out to not pay their bills, it is best to work towards the best-case scenario but plan for the worst-case scenario. This means protecting your personal credit and your assets from your business.
Compare credit cards with the free credit card chaser tool on this page!
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- First Financial Federal Credit Union of Maryland Business Visa Credit Card
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- Small Business Credit Card Application Tips
- Is using personal credit cards for business a good idea?
- What You Need to Know About Business Credit Cards