New Business Credit Cards
Acquiring new business credit cards can be challenging if you don't know which companies to contact and what type of credit card options are available for your small business. As you start a new business, you will have a number of different financing options and you will need to seek multiple financing options that will help you grow and develop your business. You will need to seek out new business credit cards in order to start building your business credit and showing lenders that you can control your spending.
To become worthy of future loans, you need to make timely payments to your lenders and get your corporate credit rating upwards of 70 in order to demonstrate strong financial worthiness. Here are some things to seek when you are looking for new business credit cards:
- Rewards. What are you planning to use the card for? If you plan to use the card a lot, you will need to seek out rewards cards. These cards provide you with the opportunity to acquire credit and to accumulate points. As you generate a large number of points, you can cash them in for certain prizes or even cash. Find out how many points you can accumulate with each dollar you spend. The best new business credit cards will offer you about 3 points for each dollar you spend. Once you get up to a certain level of points, you can then cash them in and get a free airline ticket or other things. The rewards are definitely worth it if you are planning to use the card a lot.
- Interest. New business credit cards may come with a low interest rate initially as this will attract you to the company. Once you have been able to build your business credit and you have had the card for a year, start looking for other business credit cards. This is because the interest rate will most likely increase as you probably signed up with a 0% interest rate. You can keep acquiring new business credit cards with a low interest rate, just be careful of acquiring new credit cards too often as this will start to damage your credit rating. A good interest rate on new business credit cards is anything below 8%.
- Discounts. New business credit cards should come with discounts on things like airfare, hotel rooms, rental cards, etc. Discounts are wonderful for small businesses that plan on using the cards and need to save money. Some new business credit cards provide discounts for shopping at certain stores like Walmart and office supply stores. Always research the discounts to see if they are worthwhile for your business needs.
- Fees. How much are the annual fees on the new business credit cards? Most new business credit cards have annual fees as this reduces the risk to the lender and provides them with some type of security to limit the interest rate on the loan. Be careful of high fees that may not justify owning the card.
- Brand. Always look for a new business credit card that is owned by a large company like Visa or Discover card. AMEX often provides higher rewards, but they do have high fees that may not justify owning the new business credit cards. One place to check for a good brand is a credit card that is offered from your local bank or credit union. As long as they have a solid reputation and you trust them, you should talk to them about acquiring new business credit cards. Always compare a few different new business credit cards that will provide you with the credit you need.
Corporate Credit Concepts specializes in new business credit cards. For more information about new business credit cards and how it might benefit your business, please CLICK HERE for a free phone consultation.