Credit cards are a boon to the businessman as much as they are a necessity. A credit card is the fastest way of getting a cash advance from the institution that issues it and beats taking on the hassles that come with a loan. Even the smallest personal loan takes a minimum of three working days to be approved, despite what the advertisements claim. Take it from one who has been through the grind of trying to get one and has corroborated the self-study with experiences of many others who have met the same fate.
The greatest advantage to a credit card, especially if one chooses wisely and opts for a low interest rate business credit one, is the ready advance made available at your fingertips at any time of the day or night. Also known as plastic money, these credit cards are a secure way of carrying huge amounts of cash, as there is little or no fear of theft or misuse-the bane of all businesspersons. Many cards offer insurance of upto half a million dollars in case the card is lost/ it is misused, provided of course the loss is reported before the card is misused.
There are a few points to understand when applying for a business credit card. Firstly you must be aware of the offers on the card. Most credit cards offer 5 percent minimum cash back on purchases at select stores. Look for the fee waiver on the card that you are purchasing. There is usually a fee waiver for the first year of use and thereafter a waiver on the annual fee provided you have made a minimum amount of transactions. What is the minimum amount you have to payback monthly and what is the grace period where no interest is charged on the transaction.
The credit line of the card is very important. You must make sure to ask for the maximum credit the card offer and whether this credit is extendable if ever you need to exceed it.
The interest charged on the card is of utmost importance. Usually you have a grace period of 50 days when you are not charged interest on the transaction and if you have paid up in full before the grace period expires then you have yourself a free loan. However, you must be careful on late payments. Usually the penalty on late payments is so high that it outweighs the minimum interest on the card itself.
A visit to the online credit card companies will list the leading card companies like American Express and Citibank and their offers. However, no matter how established the company is, always do your own research and always beware of the small print. They are not here to give away free cash.