One of the easiest ways to build a solid amount of credit for your business is by containing a low interest business credit card. Not only does it separate your business from your personal credit, but it builds builds credit because you make a purchase and pay it off the next month. However there is a simple way you can save money for your business when looking for credit offers that work for you …..
A Low Interest Business Credit Card!
Let's take a look at some of the different types of low APR cards:
Zero Percent Interest Cards
A 0% low interest credit card is ideal if you can find one. Normally, zero percent is an introductory special that does not last the duration of the time you have your card. Most lenders will offer 6 months or a year as 0% and then the rate will become a competitive rate to other cards. However, make sure you do your homework since the rate after the introductory period could become outrageous.
Credit Based Interest For Cards
Unfortunately, these cards do exist. Some lenders will look at your credit score before drafting up a contract for a low interest business credit card. This is especially true for banks; they are more likely to look at your score than a card company with pre-determined interest rates for their cards.
On a good note, if you have excellent credit, you can get really good interest rates when you go to apply for a card. This is just another reason why you should always be looking for ways to improve your credit rating.
General Terms For Lower Interest
A few years ago, a low interest business credit card was considered good if the interest was 9% or lower. It is rare (but not impossible) to find a low interest business credit card at that rate any longer. On the other hand, it is not difficult to find one at 11% or 12%. You have to do some research, but there are cards out there with ideal rate packages.
A small interest card is something every business owner should look into having. It helps you build solid credit for your business, as well as allows access to funding when you need it.
Looking for a low interest business credit card will still allow you those two benefits and adds a benefit of its own: SAVING you some money! Now, does not that sound great?