Most Frequently Asked Questions About Business Credit Cards

The use of a business credit card is not only a convenience but also an excellent way to keep an eye on your expenditure. You are also likely to be popular with your accountant too as his workload will be lightened considerably by less cash transactions when he is preparing your tax paperwork.

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.

Annual fees can easily reach $150 per year, plus extras. If you only need a credit card to make simple purchases, pick a card with an introductory "interest free" time 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!

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.

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.

Business credit cards can also be used to obtain emergency cash for your business. However, the interest charges for cash advances tend to be higher than for purchases and you will be charged this high rate for as long as the equivalent amount of your advance remains on your statement. This can end up being quite expensive so it is a good idea to minimize your use of the cash advance option to genuine emergencies.Your business credit card can contribute to the smooth running of your business, so when things go wrong they need to be dealt with quickly. It is a good idea to have the contact numbers of your credit card provider on hand so that you can solve problems without delay. You may also be able to find answers to any questions on your provider's website. Look for a 'Frequently Asked Questions (FAQ)' page and scan the questions to see if your concern is listed. You may also be able to directly contact the company with your concerns via their website. However, as long as your credit card company has a reasonably quick telephone response time, it may be easier to simply contact them by phone. It is a good idea to test out a company's customer service before actually applying for a card with them.

If you need to apply for business credit card, be smart. If you have a small DBA business, it's likely that you don't need a credit card at all. However, make sure you manage your credit card effectively so that you don't negatively impact your credit score by poorly managing your business credit card charges.

Article Source: http://www.articlesfeed.com

Nick Makaryk is an Internet Publisher, Copywriter, and Owner of Best Credit Cards . A Free consumer credit card comparison online website helps individuals find the Best Credit Card while avoiding higher interest rates, charges, and fees.

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