DO |
|---|
| Analyze how you'll be using the card. Decide if you'll be carrying an ongoing account balance or if you expect to pay off your business charges monthly. That will determine whether you get a card that has a rewards program or if a low interest rate should be your priority. |
| Decide what rewards will most benefit your business. Rewards vary from airline miles to retail gift cards to gas. |
| Read the fine print. Low introductory rates eventually become higher. Make sure you know how much higher and compare future rates with those offered by other cards. |
| Consider the amount of control and customer service a program offers. Can you gain access to your account and set employee spending limits online? Does the company offer annual statements by purchase category to help with tax preparation? |
| Negotiate. Call the company and see if they will customize a deal for your business. |
DON'T |
| Get a rewards card if you're going to be carrying a balance from month to month. The interest charges will more than likely wipe out the savings earned through the rewards program. |
| Transfer balances unless you've got a long-term 0% transfer rate. |
| Fall for gimmicks. If your card offers three reward points per dollar spent, make sure the points are as valuable as other comparable plans. If it costs 45,000 points to purchase an airline flight on the plan and only 10,000 on a plan that gives one point per dollar spent you should choose the latter plan. |
| Pay an annual fee. There are enough card options with great services that don't include an annual fee. You don't need to pay one. |
What to Look for in a Small Business Credit Card
A dedicated card for your small firm helps keep business and private accounts separate. But there are pitfalls, so shop carefully
Reason No. 1 to get a credit card for your small business? To separate your personal spending from your business spending. Reason No. 2? Credit card companies have finally begun designing programs that provide real, tangible benefits to suit just about any small business. But with a recent barrage of advertisements, the rewards programs and airline miles programs all start to sound the same. Here are some tips to help you decide what credit card plan is right for your business: