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Best Low Interest Business Credit Cards
Written by: Bill Matthews
Benefits of Low Interest Business Cards
Low interest business credit cards are an excellent way for business owners to do transactions securely, use the benefits of credit to build capital, and take advantage of the perks that are available only to business owners. But what exactly constitutes a low interest business credit card, and are they really that important?
Anything under 10% is usually considered to be "low interest," and depending on how much you plan on using the account, that number may be of great importance especially for large purchases. When deciding between the bevy of low interest business credit cards, there are several important points to keep in mind before making any commitments. Do your homework and keep a running list of the offers of each specific card so it's easier to contrast and compare.
APR
First, find out what percentage, if any, is offered in cash back rewards on purchases. Some cards offer a minimum of 5% cash back, although those amounts may vary on factors such as where purchases are made or what type of balance is carried on the card.
Annual Fees
Note whether or not there are any annual fees, or if they are waived for first-time cardholders, and be sure to find out what the consecutive year's fees will be so there aren't any surprises later on. Some low interest business credit cards also require a certain minimum number of transactions before they'll waiver the annual fee.
Minimum Payments
Inquire as to what the minimum monthly payments will be depending in the credit limit, and what the exact interest rate will be, which is of extreme importance for any business owner. Depending on the type of card, the grace period, the period in which you are not charged interest on your purchases, will vary but is most usually 50 days. After that time you'll have to either pay off the entire balance, or at least make the minimum payment plus interest charges.
Late Fees
If your payment is ever late, expect extra fees that are usually anywhere from $25 to $40, or even a higher interest rate on future purchases, not to mention the bad mark on your credit report. Also, if you spend more than your credit limit, an over-the-limit penalty fee will more than likely be assessed. Speaking of credit limits, ask for the maximum limit available and whether or not that limit will be extendable, and if so, after how long.
Compare Offers
By checking each company's web site you can easily compare offers, however, regardless of how well known the company is, be sure to read all of the fine print to find out if there are any terms or conditions you may not know about. Of course any company is in business to make money, yours included, but there are many benefits to be had with the right low interest business credit cards.
A notable advantage of some low interest business credit cards is the insurance that's offered. Many companies offer insurance up to a half million dollars on cards that are lost or stolen, which makes carrying a credit card more sensible than large amounts of cash. Also, most cards are accepted and insured while traveling abroad, and for those that do travel often, some cards also offer frequent flier mile rewards and incentive programs.
American Express SimplyCash Business Card
American Express' SimplyCash Business Card, for example, offers 5% cash back on gas purchases, wireless services, or even on office supplies. 1% is earned on all other purchases and the cash rewards are automatically credited to the account at the end of each statement. Another perk is that there are no limits to the amount of points you can earn, which is great if you are using the card to purchase operational or start-up supplies for your business..... Show More
Platinum Business FreedomPass Credit Card
The Platinum Business FreedomPass Credit Card from American Express Business offers lines of credit ranging from $10,000 to $100,000, offers competitive APR, and doesn't require any upfront collateral. Cardholders are automatically enrolled in their Membership Rewards points program, where points are accrued with each purchase, then redeemable on goods and services through a variety of companies.
Platinum Business FreedomPass American Express business credit cards have APRs as low as 1.99% and allow the option of paying your balance in full each month or the minimum amount due. Other benefits of this particular card include free business checks, a business line of credit, and electronic funds transfer. Also, annual fees and any interest paid over the course of the year may be a tax deductible expense for businesses. For eligibility purposes, the business applying for the card must have been in operation for the past two years, or requires that you are already an American express Business cardholder. .... Show More
