Comparing Business Credit Cards

By: Nick Hardman

Business credit cards are an invaluable alternative to petty cash and chequebooks; they also allow you to keep track of monies spent, provide a clear audit trail and also help you with end of year reporting. They also help cut down on administration, as most, if not all, provide an online banking service, and therefore reduce costs and time spent in banking in branches or over the phone. What's more, they are useful for both large businesses and self-employed people. If you are self-employed a business credit card helps separate personal and business finances. Most companies allow you to have more than one card per account and allow each card to have a different credit limit so that you can keep track of individual expenditure. Statements can also be tailored to your individual company's requirements, providing details of the company's monthly expenditure as a whole and expenditure on individual cards.

To compare business credit cards, it is a good idea to visit a price comparison site so that you can get details of all the cards at a glance. There are many cards on offer, with cards aimed at specific market sectors, and others more suited to larger international companies. A price comparison site is going to allow you to narrow the cards down to handful from the outset.? The trick is to find a professional comparison site that provides in-depth advice rather than one that is simply a collection of adverts for the various cards. Often it is best to go for one led by a financial consultant who works for a major newspaper or has a TV show because you know that behind the face will be a team of advisors all searching for the best deals and aiming to offer the best advice.

Comparison sites will list details helpful in your decision-making. Firstly they list the card's typical APR, arguably the most important piece of information that you will need know. They will also provide details of any introductory offers such as APR for purchases and APR for balance transfers. Usually, for both purchases and balance transfers, there is an introductory period where they are free. However, balance transfers are usually subject to a transfer fee.? Another important detail will be if there is an annual fee for using the card. Most cards are free to use but some do have a fee attached immediately or after a set number of years.

Currently typical APRs are around 15.9% although some go lower to 14.9% and other reach up to 17.9%. Some of the higher APR cards offer additional services, unique to that card, helping to offset the higher interest. Most companies are offering 0% on purchases made for 3 months after you have successfully applied for the card. This is a typical introductory offer along with a 0% percent balance transfer period of up to a year. However, as mentioned above, balance transfers, even with 0% APR, will have a fee attached of around 2.5%. Be aware that, while most cards don't have annual charges, the ones that do can charge anywhere up to ?100.

The next thing that you will need to look into in order to compare business credit cards fully will be any extra benefits offered by the card company.? Individual cards have been geared toward specific types of company with specific requirements. It's worth thinking carefully about the type of things that your company does and any common purchasing patterns to get the right card for you. Some cards, for example, provide Air Miles when used frequently so if your employees do a lot of travelling this could be relevant.? Others provide discounts when purchases are made on specific items such as stationary or petrol. Security and insurance are also things that are hot on the list - some card companies even provide travel insurance, especially those that offer Air Miles, while others provide insurance against fraud.?

It is a good idea to visit the card provider's official website as well.? Although the information on these sites will be biased it is still a necessary step to compare business credit cards fully. Here you will be able to find the terms and conditions applicable for each card and read through all of the small print.? Another thing that you may consider doing is Googling the card for review; this can give your search an extra dimension that may help you to decide. Of course, once you have made your choice you can then apply for your chosen card online.

Most Read Articles On
"Credit Cards"
Credit Cards
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 
 • 

» More on Credit Cards
 



Share this article :
Click to see more related articles