The
Best Business Credit Cards
By
Garrett Sutton, Esq.
The moment you incorporate your business, or even file a
business license or dba (doing business as), your
mailbox is likely to be flooded with offers for business
credit cards. They’ll try to entice you with offers of
low-rate balance transfers and loads of perks. But how
do you know which business credit cards are best for
your business?
Unless you are a well-established business (that usually means
at least three years old, with $2 million in revenue),
your personal credit history will be reviewed to
determine whether you qualify for the card – and you
will have to personally guarantee the business card. So
before you apply for a business credit card, it’s not a
bad idea to check your personal credit report and FICO
scores, and fix any mistakes.
However, there are definite advantages to using business
credit cards over personal credit cards for your
business, including the fact that you’ll likely be able
to deduct the interest and annual fee on the business
credit card, where you may not be able to do that on a
personal credit card.
In choosing a business credit card, there are several things
you’ll want to consider:
1.
Will the card help build my business credit rating?
A few business credit cards report to the business
credit reporting agencies, such as D&B. Building your
business credit rating is helpful so you can eventually
move away from risky personal guarantees.
2.
Will the business credit card affect my personal credit
rating?
Max out a personal credit card and your FICO score will
suffer. But if you use a business card that doesn’t
report your activity to the personal credit reporting
agencies, you will help protect your personal credit
rating.
3.
What’s the cost? Most small business credit cards will hype
very low-rate introductory offers and balance transfers.
But before you get too excited, read the fine print.
Watch out for rates that increase if you miss a payment
on either that card, or any other account that appears
on your credit report. (This practice is known as
“universal default”). Also pay attention to the interest
rate after the promotional rate ends.
4.
What are the perks? This is the fun part of choosing a
business credit card. Rewards are rich for business
credit cards – just make sure you can actually use them.
If you will carry a balance, weigh the cost of the card
against the benefits you’ll earn. For entrepreneurs who
carry balances, a low-rate card will usually win out
over rewards.
For our recommendations regarding the best credit cards, click
the link below:
http://www.businesscreditsuccess.com/card_ratings.php.
You can also learn more about building business credit
at
BusinessCreditSuccess.com.
About
the Author:
Garrett Sutton, Esq. has over twenty years experience
assisting and advising entrepreneurs, families and
business in selecting the appropriate corporate
structures to limit their liability, protect their
assets and advance their personal and financial goals
through real estate investments and other means of
wealth creation.
A
best-selling author, speaker and a member of an elite
group of "Rich Dad's" advisors, hand selected by author
Robert Kiyosaki, Garrett speaks to investors and
entrepreneurs on a variety of topics including asset
protection, liability limitation, wealth creation, as
well as various business and real estate issues. As an
advisor for Robert Kiyosaki, Garrett has authored
Own Your Own
Corporation,
How to Buy & Sell a
Business, and co-authored Real
Estate Loopholes. These titles are included in the
"Rich Dad, Poor Dad" wealth-building book series.
Additionally, under the SuccessDNA Publishing label,
Garrett has authored and co-authored numerous books
including, How to Use Limited Liability Companies and
Limited Partnerships. Visit
www.CorporateDirect.com for more information.
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