Business Credit Card
Posted January 26th, 2009 Having a business credit card is a good way to conserve your cash reserves while supplying your business needs. More than half of all businesses have credit cards to purchase supplies and equipment.
There are several advantages to having a business credit card but the main thing to remember is that it should be used solely for business purposes. It’s easier to document your expenses this way, for tax purposes as well as to keep your budget under control.
Business credit cards typically have higher limits than personal ones, some as high as fifty thousand dollars. Many business owners distribute these cards to key employees who are out in the field and need to buy supplies or pay travel expenses.
Having a business credit card can also give your credit score a boost if you do business with suppliers who report to the credit bureaus. This will really come in handy should you decide to apply for a loan to expand your business.
Your business credit is kept completely separate from your personal credit when you use a business credit card. You’ll also avoid having to sort out your personal expenses from your professional purchases. It’s also a good way to control employee spending and keep an eye on how they are dealing with expenses. At the end of the year, it’s simple to use your statements to itemize your tax deductions, too. Having a business credit card makes it easy to organize your bookkeeping.
Many business credit cards have reward programs attached to them, letting you rack up airline miles or take advantage of discounts at restaurants and hotels. These rewards can really pay off when you need to entertain clients or travel. Your business credit card also shows that your business is growing and promotes it at the same time.
Shopping for a business credit card is much the same as for a personal card. Look at different offers from credit card companies and compare their fees, reward programs, interest rates and grace periods. If the card has an annual fee, find out what you get for that fee. Many cards offer free rental car insurance in exchange for their annual fee or other incentives your business can take advantage of. Just like having too many personal credit cards can adversely affect your credit score, the same is true of your business.
Be sure to read all the terms and conditions before applying for a business credit card! Just as with a personal card, you need to know the interest rates the issuer will charge if you carry a balance, know if you’ll be charged fees for cash advances and if the card offers a grace period for making payments.
A business credit card can be a wonderful asset and a real help in managing expenses. Your accountant will love it, too, when it comes time to file taxes!
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Comparison of Top 10 Credit Card Offers
| Credit Card | Card Details | Interest Rate | Cash Advance Rate | Balance Transfer Rate | Annual fee | Interest free days | ||
|---|---|---|---|---|---|---|---|---|
 Halifax All in One Credit Card |
The Halifax All in One credit card offers a great introductory rate, and is perfect for saving you money now as well as in the future. | 15.9% APR | 27.95% p.a. (variable) | 0% for 9 months | No Annual Fee | 59 Days interest free |
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 Virgin Credit Card |
As well as a great rate, the Virgin Credit Card comes with:
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16.6% APR (variable) | 27.9% p.a. (variable) | 0% for 16 Months (2.98% fee on balance transfers) | No Annual Fee | 50 days on card purchases |
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 Capital One Classic Visa |
This card is designed for people with bad credit ratings, this is why the rate is quite high. |
Typical 34.9% APR variable | 34.9% APR | 34.9% APR | No Annual Fee | 56 days for purchases. 0 days for balance transfers and cash. |
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As well as earning Flying Club miles which you can spend on brilliant rewards like flights, upgrades, car hire and more, a Virgin Atlantic Credit Card gives you up to 46 days interest free on card purchases. |
17.9% APR typical rate | 20.9% p.a. (variable) | 0% for 6 months (2% handling fee) | No Annual Fee | Up to 46 days on card purchases only. |
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The Virgin Prepaid MasterCard from Virgin Money is a prepaid Mastercard that you can add funds to, and use these funds for normal purchases. |
N/A | N/A | N/A | N/A | N/A |
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5% cashback on purchases in your first three months (up to £4,000 of spend). Thereafter, earn 0.5% on the first £3,500, 1% on £3,501 to £10,000, and 1.5% after £10,001. |
18.9% p.a. | 27.9% p.a. | 18.9% p.a | No Annual Fee | 56 days for purchases. 0 days for balance transfers and cash. |
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Vanquis Visa Card is designed for people with no credit history or who have previously had bad debt. Representative 39.9% APR (variable) |
Representative 39.9% APR (variable) | 39.9% | N/A | No Annual Fee | Up to 56 days on card purchases only |
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The award winning prepaid card with no credit check or bank account needed. | Funds in your Account will not earn interest | Prepaid only - N/A | Prepaid only - N/A | £59.40 p.a. (£4.95/month) | Prepaid only - N/A |
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