Getting a business credit card is the first of many financial questions for people who are self employed.
The best was to ensure success when getting a business credit card is to do your homework–and legwork–as early as possible.
Common questions regarding getting a business credit card:
1. When should I start getting a business credit card?
When setting up your business, you might as well apply for a business credit card right away. Remember that getting a business credit card doesn’t mean purchasing items that you can’t afford. The savvy self employed use their business credit cards as a way to ensure that business expenses are properly tracked and accounted for.
2. How do I go about getting a business credit card?
Before rushing into applying for a credit card, compare interest rates. Look for the business credit card with the lowest interest rate in case you have to carry a balance at some time in the future.
If you’ve found a reasonable interest rate, start by contacting your current financial institution and see if they can match the rate. Explain your financial and business circumstances, and ask for the credit card that they feel will best suit your needs.
Getting approved for a business credit card is contingent on a few factors, such as credit rating, other debts, and income.
3. Will getting a business credit card solve my problems?
When considering getting a business credit, start by considering your overall business banking strategy. What purpose does getting a business credit card serve? Business credit cards are best used as a way to charge business expenses, and, ideally, your business credit card should be paid off every month because of credit cards’ high interest rates. If you’re considering getting a business credit card to help you pay off debts, you may be better off investigating small business debt consolidation instead.
Getting a business credit card is a wise idea for all self employed people. What do you think? Do you have a business credit card? What is your interest rate? How do you use your business credit card?