Starting a small business is hard enough without losing money and opportunities due to credit card companies hitting you with high fees and nickel-and-diming you at every turn.
The answer is finding a card with the benefits you want and making sure you can keep it paid down monthly so the interest charges don’t eat up your benefits value many times over.
First, examine your credit situation and needs. Do you have a low or “fair” credit score? Is your score high enough to qualify for a zero-interest period card with no annual rate? Will you be making purchases large enough to qualify for cash bonuses, or will the travel points and rewards programs benefit your business?
When doing your research, pay close attention to rewards cards and the type of rewards offered. Rewards can be for travel, telecommunications, shipping and advertising, and “Cash Back” rewards can multiply if your business requires a lot of office supplies. There are cards for businesses that need extended payment periods without penalties and cards that offer benefits for early payments.
Small business owners with a credit rating in the “Fair” range (580-669) can still get a credit card to purchase equipment and supplies to build and maintain their business.
The Capital One® Spark® Classic for Business has five-star reviews, no annual fee, earns one percent cash back on every purchase. This card does require a higher (630-689) credit rating and like all cards for people with “fair credit” it comes with 24 plus percent variable APR, so whatever bad habits you may have had to get your less-than-stellar rating, put them in the past and pay off your balance in full monthly to improve your business’s chances and enjoy the benefits.