Factors To Consider When Choosing A Business Credit Card Online

 

Different credit cards come with different benefits and are meant for different purposes. Credit card selection should be based on the usage and purpose of the credit card. There are various credit card categories available for different requirements such as lifestyle, fuel, travel, etc. Similarly, one can avail credit cards meant specifically for business purposes. These are known as business credit cards.

A business credit card is ideal for smart money management in a business. Those who own a small business or a start-up can use a business credit card. By keeping the business account separate from the personal account, one can easily manage money while also getting better legal protection.  Apart from this, a business credit card can fetch hefty reward points for every transaction made through the credit card.

Since there are multiple business credit card available in the market today, it can be challenging to select the right one. To ease the process of selecting the right business credit card online, listed here are a,

Few factors to consider while narrowing down to the right choice.

1. Specific business needs

At the outset, business owners or those looking for a business credit card should know exactly the purpose of availing a business credit card. Credit cards are a type of unsecured loan and influence one’s credit rating. Credit needs can be different across businesses, ranging from business-related purchases or vendor payments, or even business travels. A business can also opt for a business credit card for employees, where each card can have a specified limit. Such cards will also allow businesses to keep a track of spending, easy report generation, detailed analysis of all spending, etc such that it can be easily integrated into a business’s accounting solution.

2. Card offers

Business credit cards come with bundled offers that encourage users to use them often. Some business cards offer air miles that can be redeemed for each air ticket purchase. Some cards allow airport lounge access while others offer points for buying fuel. Credit cards may also give points upon using them for dining or entertainment purposes. Therefore, a business should examine the credit card offers and understand what works best for specific needs.

3. Interest rates and Fees 

Many online credit cards have high interest rates. Therefore, considering the interest rates before opting for a business credit card is a very important factor. Banks and credit card issuers may sometimes quote monthly interest rates. Many credit cards may also give an interest-free credit period of up to 48 days for all online transactions or purchases at different merchant outlets. This can prove beneficial while making day-to-day transactions. A business can also look out for the fees applicable on the card. Most business cards come with annual subscription fees that can range between Rs. 500-Rs. 5000. 

4. Credit limit 

The credit limit is dependent on factors such as the credit risk profile of the applicant, credit history, etc. An applicant should always request the credit card issuer to reveal the credit limit before finalizing a business credit card online. This will help in ensuring that a business does not end up with a card that has a very low credit limit or a card that has unwanted high credit limits. It is important to remember that credit card limits are considered open loans and are unsecured. Too much of an unsecured loan can hamper one’s credit profile.

5. Ease of application

Business owners often have very limited time on their hands. Therefore, they would not want to spend time figuring out the paperwork and application process. Most online credit card issuers offer a mostly paperless and entirely digital application process. This can help in avoiding a physical visit to a bank, standing in queues and waiting for long application processes. A business should also look for minimal documentation requirements and opt for an online credit card that ensures an easy overall application process.