In addition to earning rewards for everyday business expenses like travel, gas, and office supplies, business credit cards come with expense-tracking tools that make it easier to keep tabs on your company’s finances.
About 37 percent of business owners are using credit to cover some of their costs, reports the National Small Business Association. As of August 1, the average interest rate on a business rewards credit card was 15.74 percent, slightly lower than the average consumer rewards credit card rate of 17.64 percent. However, if you’re planning to get a business rewards credit card, be aware that these cards aren’t covered by the Credit CARD Act of 2009, which protects consumers from arbitrary rate increases.
That isn’t a concern if you won’t be carrying a balance from month to month, says Beverly Harzog, an independent credit-card expert and consumer advocate. Since interest rates can fluctuate substantially on these cards, you should probably only get one if you can pay off the balance each month.
Also keep in mind that the credit card company will look at your personal credit score when you apply for the card. “If your FICO score is not in the 700s, you might not get the lowest rate offered,” says Gerri Detweiler, director of consumer education at Credit.com.
Competition for these cards has slightly declined, says Anisha Sekar, vice president of credit and debit products at NerdWallet, a credit card comparison site. “I think vendors are pulling back in the small-business realm. They aren’t working as hard to court small businesses these days,” she says. “It’s not exactly an ideal climate to snag that amazing sign-up bonus.”
With that in mind, make sure you choose the right business rewards credit card for your company. U.S. News spoke to credit card experts for their recommendations
(Courtesy – US News – Money)
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