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Business Credit Card Online

How to Get a Business Credit Card Online

While most experts will tell you it is more advantageous to apply in person at a local bank, it is possible to receive a small business credit card online. Going online to apply for a credit card for your small business has the advantage of giving you information on multiple cards from multiple banks and allowing you to compare the pros and cons of each in a side-by-side manner. This will not only help you get the card that is right for your business, but also the card with the lowest fees and annual percentage rate (APR).

Business credit cards are used for three main purposes. The first purpose is for start-up expenses. Many people use credit cards when they need a little more capital than is provided by their business loan. This is an expensive solution because start-up capital usually takes a fair amount of time to pay back, racking up interest all the while. The second purpose of business credit cards is to pay monthly expenses. This is an easy way to keep track of all payments so you only have to worry about the credit card bill. This is a great solution because many cards will not charge interest if paying off the card within the first 21-30 days after the purchase. The third reason for a business credit card is for emergency use. Some months may hit hard, especially if your business has an off season. This can help float the business to more profitable months.

There is really very little difference between applying for a business card online and applying for one in person as long as you read all the fine print. It is not essential for any business to have a credit card, but it does help in building the business’ credit rating. This can help you to get needed business loans in the future. Another reason a credit card might be needed for a business is to allow employees to pay for business-related expenses.

It is imperative to choose a business credit card online with a low interest rate. When the interest rate is high, it will only add to your business expenses. The interest rate depends on the lender as well as the credit rating of the business, or if the business has no credit rating, the credit rating of the applicant. APR will vary greatly. The best lenders give their best customers an APR as low as 3% while unestablished business may be asked to pay as much as 18%.

Another factor in determining which business credit card to choose is fees. Many cards ask the holder to pay annual or even monthly membership fees. Other fees may be charged for having multiple cards on the same account or for credit card rewards such as cash back or frequent flyer miles. Many cards have no fees at all. The cards with fees can charge between $39 and $200 per year. All fees should be disclosed up front, before applying. Other fees to consider are late fees, overdraft fees, ATM fees, and online access fees. All the fees that a credit card issuer can charge a business are controlled and listed by the Federal Reserve Board. These situational fees can be minimized with effective credit card management. Ideally, the balance should be kept as low as possible, and payments should be made in a timely manner.

When applying online for a business credit card, you will have a choice of several banks and credit card issuers. Some of the most notable are Chase, Citibank, Capital One, Bank of America, Discover, and American Express.

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Business ManagementSmall Business Resources