Choosing a credit card for small business

A lot of banks in USA do not limit themselves to working with large companies only. They have a lot of special offers for small business. These opportunities are much easier to use, that’s why they’re more popular then general credit lines banks offer to their clients.

Moreover getting credit-card account is the straight way to establishing a good credit history for your business name. A lot of businessmen use this option as their start-up.

Since there are a lot of possible choices it might be hard to pick up the right one. To know what credit card is right for you, consider the following questions:

Will you be paying monthly charges or prefer the occasional time-after-time pay off?

What are your basic spending habits?

The low annual percentage rate is the best option for people tending to carry the balance. Some companies might even offer the sweet 0% rate for good credit history owners. However this tease is usually available for the first year only.

Here are three main pillars the art of credit is based on.

Interest rate

If you’re taking the credit for your company, keep in mind that the bankruptcy will not be solvation in case your business fails. The reason is you’re the main guarantor of the debt and will be paying it off with your own funds in case your business becomes unprofitable. The reverse effect also takes place, since your private credit history will affect the rates of the card. You will have the low rate in case your credit history is really nice.

If you’re looking for the good credit, take your time to find the bank and program with suitable credit score requirements. Perhaps you would like to mend up your credit history by closing old debts for getting better credit.

The longer you proceed without late payments, the more bonuses you have. You might get better interest rate as well.

Charges and fees

Most banks do not limit themselves by interest rates only. Instead they provide different fees, like the annual account fee you pay for your card to stay open, or the inactivity fee paid for the card that is currently not in use, still not closed. The other payments are basically related to your credit, like late fees, over limit fees etc.

Before making the final choice about the credit card, think over your spending habits and look for the suitable card. Otherwise the cost of borrowing might appear to be too high.

Some businessmen opt for so-called charge card with a small time period. This helps to discipline the debtor having him calling in his credit regularly by bringing the balance to positive or zero for the penalties not to be charged.

On the other hand credit card lets you savor the financial flexibility praised by small business owners.

Annual fee offers some bonuses like the longer grace period (up to 30 days compared with ordinary 20 days offered by regular cards). If you’re not sure you can pay in time and do not want your credit rating to be spoiled, opt for the card with annual fee.


This is the opposite side of fees and charges – banks tend to prize their good clients and encourage them to go on with their credits. You may be offered shopping discounts by certain USA retailers or get any other bonuses like airline miles, gas, fuel or any other benefits. Try to find the card that provides benefits suitable for your business. Pay attention to terms and conditions, since some programs are rather restrictive.

Sometimes you’re offered the pay-back, when the part of the price is returned to you as a reward. Remember, the usual reward amount is 1-5%, any higher rates might have restrictions by the type of good, the total sum of your check, etc. For those who travel much hotel upgrades might be interesting.

More things you need to know

Keep in mind that not every store or company works with just any card. Some of them might stick to MasterCard or Visa, while others might prefer American Express or Discover. This happens because each card is connected to the separate financial net, so find out the card types your suppliers and the main clients use before making your choice.

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Consolidebt is a debt relief referral company, which helps to pay off your debts in 12 - 36 months, in most cases. We will work with you, step by step, to simplify your monthly commitments, consolidate your monthly payments into one affordable monthly payment (on the date of your choice), and, depeding on the program, either disperse to your creditors on your behalf or work with you to settle your debts.