However, no matter why you choose to have a business credit card, there are still some things you need to know. For example, annual fees for business credit cards are generally higher than those for personal credit cards.



You could find yourself paying as much as $150 per annum for cards with extras but if you simply need a credit card to make basic purchases, you would be best choosing a card offering an introductory interest free period.

Cards with an introductory interest free period don't charge interest during this time. This time usually lasts anywhere from a month to 12 months. This can be great news for you as a business, especially if you are new and have setup expenses to deal with. Because of this, a card like this can generally be looked at as an interest free loan.

It is very important to pay your credit card account by the due date, which is clearly listed on your statement to avoid often high late payment penalties. There are also some credit cards like American Express which require payment in full every month, so it is important that you understand the payment terms of any credit cards you are considering before you actually apply for one. You may also be penalized by an increase in the annual interest rate you are charged.

Your annual percentage rate (APR) is the annual amount of interest you are charged on your outstanding balance. Because of the risk of rising interest rates generally, and increased interest charges as a result of late payments, it is best to choose a fixed rate card if at all possible. Fixed rate interest may initially be a little higher, however in the long run it can actually save you a lot of money. If you already have a credit card which you realize is costing you too much, there is nothing stopping you looking for a better deal and transferring your balance to a better offer. Doing nothing when you could make a change for the better can end up costing you a lot of money.

Should you need cash to help the business out, some credit cards offer you the benefits of an immediate cash advance. Nonetheless, the interest rates on cash advances are usually higher than purchases so only use this option in an emergency situation.There may come a time when you have a problem about an aspect of your business credit card or require information quickly, and you will need to know that you can get in touch with your credit card company straight away. Many companies have a frequently asked question page on their website and this is always a good place to start as more likely than not other people have asked the same question previously and the answer will be there on your screen. Most credit card companies will offer you the service of communicating with a customer services operator either on line or by telephone and you can always test this method out and see what kind of response you receive before committing to a particular card.

Be sensible when considering applying for a business credit card. For example if you are running a small DBA business, you may well not need a credit card. As the credit will be built under your social security number, you have to be sure than you can manage the debt in an effective manner.