Compare business credit cards to find the best

Normally, business credit cards are ideal for small business outfits.

To choose the best business card around, it goes without saying that you need to compare business credit cards that are on offer. But before you get down to finding the best business credit cards you have to understand how it differs from a personal credit card.

If you're starting up a business, or have one already, you're obviously incurring all sorts of business expenditure. Maybe you are paying for such expenditure by using your personal credit card. Well, experts advise you not to do that and instead of using your personal credit card you should be getting a business credit cards for business, which you should use only for your business expenses. That way your expenditure reporting will be more organized.

Types of business credit cards

Business cards are of two types: charge cards and credit cards. There is no interest charged on the charge card, but you have to make the entire payment at the end of the month, using direct debit, without any rollovers. A business credit card, on the other hand, gives you the flexibility of paying in installments and these cards may just be right for a start-up. Secured business credit cards can be obtained if you are a start up company.

Advantages of business credit cards

All businessmen want to do their business in an orderly, no-nonsense manner. And the same principle should apply in running a business credit card. If used diligently, business credit cards offer many advantages:

Maintaining business credit cards helps keep business expenditure separate from personal expenses. If you use just one card for business and personal use, the overlapping of business expenditure with personal expenses can create a problem when it comes to filing your tax statement.
A business credit card statement keeps full records of all your business expenditure, and these records help you doing your accounts at the end of the year.
If you run your business credit card expenditure in a disciplined manner, then you will build up a reputable business credit history. This helps when your business grows and you need more funds.
There is a whole lot of competition between business card companies, and many offer rewards that range from air miles to discounts on software to rebates on phone services. You can take advantage of this and lower your business overheads by making use of these awards offers.

Choosing the best business credit card

Though business cards are just a special type of credit cards, and most of the criteria that are used to pick a regular credit card apply to business cards too, here are some factors you must consider before choosing the best business credit cards:

If you are going in for a business credit card, evaluate and compare the interest rates charged. There may be offers that shout 0% interest. Such offers blow the interest balloon once the introductory period is over. For example, a card which offers a 0% rate for 6 months that balloons to 28.99% is not as good as a steady rate of 8%.
If you've decided on a charge card, then compare the annual fees first. Maybe, a charge card that is charging an annual fee a tad higher may not be all that bad if it is offering discounts at stationery stores and airlines.
Consider the rewards offered by business credit card issuers. Go for business cards that offer rewards that are tailor-made for your business. For example, if your business involves frequent travel then it makes sense to go for a card that offers discounted air tickets, discounted car rentals, etc., as rewards.

Compare business credit cards

Citibank, American Express, Chase, Discover, Advanta are some of the major players in the business credit cards market. You can get plenty of information about them on the Internet. Creditcards.com is an excellent resource where you can compare offers available across different types of cards.

Effectively managing a business credit card

Once you've zeroed in on the card that's just right for you, all that needs to be done is to apply for one and start using it. Here are a few ways that can help you manage it effectively:

Apply for your business card through your bank or financial institution. Your relationship with your bank can help you get a business card faster and without any hassles.
Do not sign up for multiple business cards as they might cause you card-related management problems that may end up ruining your credit history.
Many business cards offer a 20-plus-day grace period. Use credit cards for your business expenditure and use this grace period to float your money. If you pay by check, you will have no money float.
Don't avail of any cash advances. These involve higher fees and a higher rate of interest.
Pay the dues on time regularly.

If you treat your business card with the same disciplined approach you adopt to treat your business, your business card will reward you with its advantages. If you misuse it, you will face the consequences associated with bad credit card management and your business can go downhill.

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