The Benefits of Business Credit Cards

Given the variety of business credit card programs available, anyone with decent credit should seriously consider one. Although intended primarily for small business owners, the offers combine every kind of credit card contract. Business credit cards are available with low interest rate, zero introductory interest rates, balance transfer options, rewards (like frequent flyer miles or cash back), and on and on. Business cards often offer travel discounts on cars and hotels, frequent flyer miles, travel insurance, even restaurant savings.

Business credit card contracts usually offer comparatively lower interest rates and much higher credit limits. (Of course, it's expected that you will have somewhat better credit history.) Issuers are eager to offer superior benefits since business owners generally spend more and tend to maintain a higher balance. They're convenient for large or small expenditures, whether office furniture or stationary supplies. Gone is the need to maintain a petty cash account. And every business owner has seen the day when emergencies arise that present the need for unexpected additional funds. It's times such as those when those high credit limits come in handy.

Nearly all provide, free of charge, quarterly or annual reports that categorize expenses. This helps manage cash flow and makes it easier to track tax deductible items. They help around tax filing time, when you need to total those items. They also help separate personal from business expenses.

Since issuers are eager to do business with other businesses, the customer service associated with such cards is usually superior. Different 800 numbers from those offered consumers are available and the person on the other end is often more eager to assist.

Business cards can be issued to more than one individual. The business owner, or authorized representative, can specify an unlimited number of additional card bearers, who receive a different account number. This makes tracking expenditures by different employees easier. It also makes abuse easier to detect. Terminating one account is as easy as a phone call and your primary account remains active and unaffected. Of course, as the primary account holder, you are still held responsible for any charges made. One way to deal with this unfortunate, but all too common, issue is to use pre-paid cards. Pre-paid cards allow you to load a card with a specified quantity of funds, which automatically caps the amount for which you can be liable.

For businesses that experience lag in accounts receivable (and who doesn't?), business cards can help smooth out cash flow bumps. Pay now with the card, invoice the client, and you'll be better able to time paying your expenses when your clients pay you.

Where to obtain a business credit card

Every major financial institution offers business credit cards. Some have several programs. Everything from Platinum cards to Debit cards are offered, usually with the same low rate and no annual charge. And here's the catch - which for once is in your favor. Anyone can consider him or herself a business owner, sometimes no special proof (such as a business license) is required.

Compare business credit cards

Shop around to find a card that suits what you are looking for. Most programs are available through the issuers' web sites. You fill out the form, a credit check is performed by an automated computer system, and you receive an answer within seconds.

For a business owner with a thousand things more to do than time to do them, it doesn't get better than that.

Handling Your Credit Card Debt

If you don't pay attention, you can run up a staggering amount of credit card debt very quickly. In order to avoid that happening to you, follow these tips that are designed to keep credit card debt under control.

Pre paid credit cards

During the 1990's credit card companies had to look at a different means of securing their debts because of great losses. At that time they came out with the secured credit card and following close behind came the prepaid debit card. Prepaid credit cards are issued by most credit card companies, such as Visa, American Express and Mastercard. In this instance, funds are added to a prepaid debit card at a retail location or through an online bank. The prepaid card works very much like a prepaid phone card. Basically, a prepaid credit card is cash that has been applied to a plastic card so that the funds can be accessed electronically. These cards are set at a limit that is identical to the amount deposited. Each time you use the card, the amount on the prepaid debit card decreases until it reaches zero funds.

Restoring Credit Worthiness - Difficult, But Possible

You've been turned down for a credit card or loan or might have been offered a ridiculously high interest rate. You can't get a new credit card. You've got bad credit.

More Credit Card Information