How to Start a Business Credit Card

Starting a business can be stressful and confusing enough without having to bring finances into the equation. Choosing the correct business credit card for you and your business is extremely important. Take the most important and valuable aspects of choosing a business credit card into consideration, such as interest rates and credit limits, before signing a contract.

Things You'll Need

• Business plan

Instructions

1. Decide whether you want a corporate credit card or a business credit card. Corporate cards have no interest rate but do have certain fees (such as annual or monthly) that can add up and become more expensive than interest rates in the long run. A business credit card is just like a personal credit card but is only used for business purposes and matters. The card has a set limit and monthly payments.

2. Consider what type of credit card limit you need. This all depends on the size, nature and purpose of your business. Some businesses need a $5,000 limit, while others need a $60,000 limit. Talk this over with different banks to see which is more accommodating to your needs and requests.

3. Understand the interest rates of the credit cards you're considering if you decide not to go with a corporate card. Check the APR and interest rates. Some credit cards try to advertise a 0 percent APR when, after six to eight months, it could jump up to 30 percent APR, which is way higher than you should be paying. Look at the long-term percentage rates for each business credit card. If you decide to go with a corporate card, compare different annual fees that correspond with the amount of money you may be spending on the card.

4. Consider rewards programs. Some credit card companies offer good rewards with their cards. At least with this option, you can get something back from the company for spending money. If you travel a lot for your business, look at rewards programs that offer airplane miles or hotel benefits for each dollar spent. If you spend a lot of money at supply warehouses for computer software or printer ink, for example, look at reward programs that offer cash back at specific types of businesses.

5. Take into consideration how many employees will be using the credit card for your business. If it's just you, then the considerations of how to use a business credit card are all in your hands. If you're providing business credit cards for several employees, make sure to have a meeting so they understand what to use the credit card for and what not to.