A Guide to the Different Types of Credit Cards for Your Business
As a business owner, you know your profit margins are slim. So whatever way you can develop cash flow, that’s going to help.
One way of doing that is to open up a few good business credit cards. Not all credit cards options are created equal, though. And some cards could actually hurt your business instead of helping it.
That’s why we put together this simple guide to learn all of the different types of credit cards there are and how to employ the right cards at the right time. Read on to learn more!
Secured credit cards are a great option if your business is new or has a poor credit history. A secured credit card requires a security deposit that acts as your credit limit and is typically a percentage of the credit limit offered. The security deposit acts as collateral for the credit card, meaning if your business defaults on payments, the money can be taken from the deposit.
Secured credit cards can sometimes charge higher fees and interest than other types of cards; however, they can also help to rebuild credit and move your business closer to traditional unsecured cards.
With rewards cards, businesses can earn points or cash back on purchases made through certain merchant categories, such as office supplies, gas, and more. To help business owners decide on exactly which rewards card is best for their particular needs, it’s important to first assess what kind of rewards best fit within the business’ budget, such as cashback or travel rewards for customers or employees.
Furthermore, it’s also a good idea to look into the interest rates and annual fees associated with the card to make sure it’s realistically within budget and provides the most benefits to the business. Rewards cards typically have higher interest rates, and businesses should always read the fine print to avoid falling into a business finances trap.
Business Credit Cards
A business credit card is similar to a personal credit card, but is usually equipped with higher credit limits, rewards, and other benefits tailored to businesses. Additionally, cards for businesses can be offered with employee cards to better manage employee spending, maintain control of your business expenses and make tracking easier.
View now and know the different types of business credit cards and their associated benefits to help you make the best decision for your business.
Businesses can use their charge cards to make purchases up to their preset credit limit, and the charges are due at the end of the billing cycle. Business charge cards are typically not secured cards, meaning no collateral is needed to receive the credit line. Businesses can take advantage of rewards and benefits such as travel points, discounts, and special offers on select items, helping to keep your business expenses down.
Charge cards also offer important consumer protections if unauthorized purchases are made or if items need to be returned or replaced. Overall, charge cards are a great option for businesses that need access to credit, but don’t want to pay interest or carry a balance.
Types of Credit Cards to Choose From
Choosing the right credit card for your business can help you save money and maximize rewards. With this guide, you not only know the different types of credit cards available but also what features to look for and how to use a credit card responsibly. Make sure to shop around and find the best card for you and your business.
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