Establishing good credit is one of the most important things you can do to solidify your financial life. Making sure you have the right credit card can go a long way toward assisting you in meeting your financial goals. In order to make sure you have the right credit card, there are six essential things you must know about your credit card.
Your Interest Rate
While interest rate is certainly not the only thing you need to know about your credit card, it is extremely important. This is the amount of money it is going to ultimately cost you in order to use your credit card. Many people make the mistake of finding out too late that it will cost them upwards of 22% on their credit card. This is why you should always take the time to shop around for business credit cards in order to find the best possible interest rate. Looking for low interest credit cards is definitely well worth the time spent. Remember when looking for a low interest rate that the main qualifying factor is going to be your credit score. If you have a good credit score, you will have a better chance of qualifying for a low interest credit card.
It is also important to understand the fees that will be charged as you are shopping for business credit cards. Although there are some credit cards that provide no annual fee offers, there are also some cards that do charge annual fees as well as other fees such as additional card fees, one-time account set-up fees, membership fees, etc. These types of fees can quickly add up, so make sure you know what to expect. The best credit cards have the lowest fees possible.
An intro period is a time period in which you are offered a discount on your credit card. Many credit card companies offer a 0% interest rate during the introductory period. Such no or low interest credit cards can be a real advantage, but there are several questions you should ask. First, find out exactly how long the intro period will last. You should also make sure you know what the interest rate will be for what you are going to use the credit card to purchase. This is important because in some cases certain types of purchases, such as cash advances, may not actually qualify for the low introductory interest rate. In other cases, the low interest rate may only apply to balance transfers. Make sure you find out this crucial information.
It is always nice to be rewarded for purchases you are going to make anyway. Consumers who have fairly good credit can usually apply for business credit cards that come with reward programs. This is the credit card company’s way of offering something in exchange for your doing business with their company. There are many different types of reward programs available today. One thing to keep in mind is that many credit cards that offer seemingly excellent reward programs often have higher interest rates. The best way to combat this problem is to make sure you pay off your credit card balance each month.
Calculation of Interest Rates
You should also take the time to find out the way in which interest rates are calculated on the business credit cards you consider. For instance, find out the number of days that are in the billing cycle. This can be important if you plan to pay off your card every month. It also helps to determine your minimum monthly payment.
Customer Service Features
Finally, it is a good idea to find out whether the credit card company offers important customer service. Examples include being able to pay your bill online. This can a convenient feature that allows you to better manage your payments on time. Today some cards also offer special features that can be accessed via apps from your phone.