However, whatever the reason or reasons you choose to have a business credit card, there are still things you need to know about the terms and conditions attached to such a card. For example the annual fee for a business credit card is higher than that of a personal credit card.



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.

This actually means that you will pay no interest whatsoever for a given period and this can be anything up to twelve months or so. This is super news for new businesses when all manner of setting up expenses are incurred it could almost be looked upon as an interest free loan!

Your statement shows when the payment is due and this is the last date your money must be received by the company. Some cards such as American Express require that you pay the balance in full each month, so make sure you take a good look at the terms of any credit card before signing up. If you run over there will be no hesitation on the part of the company to apply a late payment fee onto your existing balance and if you are not on an interest free or fixed rate card, you are likely to be penalized for late payment by an increase in your APR too.

The Annual Percentage Rate (APR) is the amount of interest you are charged on the balance outstanding on your credit card. Choose a fixed rate as opposed to a variable one so that the company is not given the option to up your rate of interest for a late payment. This way you can at least keep an eye on your budget. There is nothing to stop you shopping around for a new interest free or low rate introductory offer card if you find yourself paying higher interest rates than you can afford. You are often allowed to transfer balances as an incentive to take out a new card and this can save you quite a large amount of money over a period of time.

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.