- 1 0 interest business credit cards
- 2 0 interest credit cards for business
- 3 Consider these interest free payment credit cards before your next big purchase
- 3.1 Approximate Cost of Credit Card Financing Vs. Other Types of Financing
- 3.1.1 Which Credit Card Should I Get?
- 3.1.2 When You Should Consider Credit Cards For Financing Your Business
- 3.1.3 Other Benefits of Using Credit Cards To Fund Your Business
- 3.1.4 Keep in Mind Credit Card Rates May Go Up
- 3.1.5 Be Smart When Using Credit Cards To Finance Your Business
- 3.1.6 1. Treat Your Credit Card Like A Loan and Make Regular Payments
- 3.1.7 Business vs. Personal Credit Cards
- 4 0 Interest Credit Cards 5 Tips Before Applying for No Interest
- 4.1 5 Tips Before Applying for 0 Interest Credit Cards
- 4.1.1 1. Zero Interest Cards Are Only Zero Interest for a Limited Time
- 4.1.2 2. You’ll Probably Need a High Credit Score to Qualify for 0 Interest Credit Cards
- 4.1.3 3. There are Balance Transfer Fees on Most No Interest Credit Cards
- 4.1.4 4. Watch Out for Penalties on 0 Interest Credit Cards
- 4.1.5 5. Zero Interest Cards Can Both Lower and Raise Your Credit Score
- 4.1.6 Learning to Spend Wisely With No Interest Credit Cards
- 4.1 5 Tips Before Applying for 0 Interest Credit Cards
0 interest business credit cards
Low Interest Business Credit Card instantly compares the lowest interest Business Credit Cards to make it easier for you to choose a card that wll help you control your businesses finances. Our easy to understand comparison table makes it quick to find the best low interest business credit card deal for you.
0 interest credit cards for business
Choosing a Credit Card: 0 interest credit cards for business
When choosing a credit card, it is important to consider what you'll be using the card for so you may select the one best suited to your needs. Some people will make a large purchase using a credit card and carry the balance through several months, paying off the debt as they earn money to pay for it. This can be a good fall-back in an emergency, but because of high interest-rates, you may wind up paying way more than the item cost originally. Other people choose to use credit cards in order to earn points, frequent flyer miles, or cash back. These incentive programs can be nice rewards and are worth taking a look at. Other people like to carry a credit card for travel, as they are often required to reserve a rental car or hotel room. Credit cards can be a useful way to build credit, and they also offer better consumer protection than debit cards if your information is stolen while shopping online. Finally, some people use a credit card because they prefer not to carry cash, and use it for their daily expenses.
Search for credit card offers and compare them based on what is important to you. If you will be carrying a balance from month-to-month, look for a card with the lowest interest rate or special offers of no-interest or low-interest for an introductory period. Just be careful to pay off the card before the period is up and watch out for annual fees. If you are using your card to earn points, miles, or cash-back, compare the offers and see what is most valuable to you. Some prefer cash-back as it is the most versatile, but if you fly often miles could be the way to go. Points can be good if you like free stuff, but be sure you want what the points exchange for before signing up. When using rewards cards, be careful to pay off your balance in full, because the high interest rates they carry will quickly negate the benefit of any rewards you might earn. If you use a credit card to build your credit score, put a monthly recurring bill, such as a phone or electric bill, on the card, then be sure to pay the card off each month. You won't pay any more than you did otherwise, but it will help you down the road when you apply for loans to buy a vehicle or home. Credit cards will protect you from fraud online because, unlike with debit cards, your money will not be affected if you are hacked. If you only carry a card for emergencies, look for a low interest rate and no annual fee. If you use a card instead of carrying cash, be aware that many small businesses will refuse credit cards for small purchases, so get to know the policies of the businesses you frequent.
Applying for a credit card is as simple as filling out some forms with your personal information. Once it is processed you will receive your card in the mail. Call the number to activate it and you are on your way to increasing your quality of life by using a credit card.
Consider these interest free payment credit cards before your next big purchase
If you have great credit, you probably pay your credit-card bill in full every month, which means the interest rate isn't a deciding factor when you're selecting a new card.
But even money-smart consumers need to make huge purchases from time to time. If you need extra time to pay off something expensive вЂ” a new computer or a couch or a car вЂ” and don't want to accrue interest, an interest-free credit card may be your smartest option.
With so many card offers available and different fees to consider, it can be difficult to decide which card is right for you. CompareCards.com, a leading provider of credit-card information and resources to help consumers choose wisely, has put together tips on how to choose the best 0% APR credit cards, along with three strong credit-card options to consider.
What to look for in 0% APR credit cards
The biggest determining factor when choosing a 0% APR credit card is the length of the introductory period. The longer you can go without paying a dime in interest payments, the better.
Here are some other key features to look for when choosing your next interest-free credit card:
No annual fee: Consumers should never pay for an interest-free card unless the benefits far outweigh the annual fee. WhatвЂ™s the point of saving money on interest-free payments if you have to fork over a fee each year?
High credit line: Having access to a high credit limit will allow you to make those large purchases and can also help with your credit utilization ratio. Although consumers canвЂ™t choose their credit limit, managing your credit responsibly can help you become a low-risk consumer and make lenders more comfortable with giving you a higher limit.
Additional benefits and features: Credit cards for those with excellent credit will come with benefits such as travel insurance, roadside assistance, and extended warranties.
Which low-interest credit card should you choose?
1. Citi Simplicity Card Citi
Why you should get it: This card from Citi is offering the longest period of interest-free payments around. Most 0% APR credit cards range from 6 to 18 months, but consumers can now get 0% interest for a full 21 months. ThatвЂ™s almost two full years of interest-free payments.
- 0% APR for 21 months on purchases.
- 0% APR for 21 months on balance transfers.
- A balance transfer fee of $5 or 3%, whichever is greater.
- No late fees, no penalty rates, and no annual fee.
Another similar offer is the Citi Diamond Preferred Card, offering 0% interest for 21 months on purchases and balance transfers. Cardholders can also earn Citi Easy Deals Points for purchases they make with their card and redeem points online.
Why you should get it: Not only do cardholders pay no interest for the first 15 months of their card membership, but they also earn rewards with every purchase.
- 0% APR for 15 months on purchases and balance transfers.
- A balance transfer fee of $5 or 3%, whichever is greater.
- Earn cash back twice; 1% cash back when you buy, and 1% cash back when you pay for those purchases.
- No annual fee.
Why you should get it: Chase Slate has long been known as the best balance-transfer credit card. It is the only credit card on the market to waive the balance transfer fee for the first 60 days of card ownership, making balance transfers completely free.
- 0% APR for 15 months on purchases and balance transfers.
- $0 introductory balance transfer fee for transfers made during the first 60 days.
- No annual fee.
- Free monthly FICO score and Credit Dashboard.
Once your introductory period of interest-free payments has ended, it's important to understand credit-card interest charges so that you can continue saving money. The key is to reduce the average daily balance as much as possible. ThereвЂ™s also no need to wait until the statement due date to make a payment. Cardholders should make payments as often as possible.
The conventional wisdom is that credit cards are an expensive form of financing for a small business. In fact, as the table below shows, credit cards have lower interest rates than most other forms of small business financing.
We created this guide to help you understand when and when not to use a credit card to fund your small business. We also recommend the best credit cards for small business owners.
Need some money for your business? Click here to get our FREE Guide:
How to Get a Small Business Loan.
Approximate Cost of Credit Card Financing Vs. Other Types of Financing
9 - 15 % (non real-estate backed)
*Click here to see most recent average APR.
Which Credit Card Should I Get?
Here are our recommendations for business owners who want to fund their business using a credit card.
*For an overview and in-depth recommendations of the best business credit cards, check out our guide .
When You Should Consider Credit Cards For Financing Your Business
As the table above illustrates, credit cards are a cheaper form of financing than almost everything except traditional and SBA bank loans. However, bank loans generally require that you’ve been profitable for several years and have collateral.
Consider using credit cards to finance your business when you need less than $50,000, and cannot get a bank or SBA loan. Perhaps you haven’t been in business long enough to qualify for a bank loan or can’t put up sufficient collateral. Maybe you just need quicker access to money than a bank can provide. In those cases, using a credit card may be cheaper and quicker than other financing options. Plus, credit cards can come with a host of other benefits, such as sign-up bonuses, rewards points, and 0 % intro APR.
The average APR for credit cards is around 16 %. Popular alternative lenders, such as OnDeck and Kabbage, charge APRs that are 3 to 6 times greater! Even non-profit lenders, such as Accion, whose purpose is to help underserved businesses charge a higher APR than most credit cards.
Of course, alternative and non-profit lenders do have their advantages. They will lend to those with bad credit (credit score as low as 500) and will issue larger loans (up to $250,000). With a credit card, you’re limited to your credit line, and you must have good credit to qualify for the best cards. As a result, credit card financing is best suited for business owners who have good credit and need to fund smaller purchases.
Other Benefits of Using Credit Cards To Fund Your Business
More Flexible Form of Financing
Credit cards are more flexible than other types of financing. With a loan, you have access to a fixed amount of money, and you have to pay back a fixed amount each month. In contrast, you can borrow as much or as little as you need on a credit card each month (within your credit limit of course), and the minimum monthly payment is tiny.
When you keep a balance on your credit card, you should try to minimize your interest payments. You can do that by getting a card with a 0 % interest introductory period. Consumer credit cards offer longer zero interest periods than business credit cards. The caveat is that 0 % interest is often a ‘teaser’ rate that’s only offered for applicants with the best credit score. If your credit score isn’t that good, you might not qualify for 0 % interest.
The longest no interest phase we’ve found is 21 months, available with the Citi Simplicity and Citi Diamond Preferred cards. You could charge expenses to this card, pay off the whole balance in the 21st month, and not pay one cent of interest! That’s basically like taking a 21-month loan for free, but you have to have enough money to pay off the whole balance at the end. If not, not only is interest due, but you have to pay interest on the special offer period.
Sign-Up Bonuses & Rewards Points
It’s almost expected nowadays that a credit card will give you rewards points for purchases, and many cards also give you points as a sign-on incentive. Citi ThankYou Premier is a particularly good rewards credit card. The sign-on bonus is 50,000 points when you make $3,000 or more in purchases in the first 3 months. You also earn 3x points on travel, 2x points on dining and entertainment, and 1x points on other purchases. Chase Ink Plus is another great rewards card. Using a rewards credit card is a great way to earn some extra money for your business!
No Balance Transfer Fees During Intro Promotions
Business owners who are carrying debt on several cards can consolidate and transfer the debt to a low interest or 0 % interest card. Usually, there’s a fee to do this, but some cards will waive it for an introductory period.Chase Slate is the one of the best balance transfer cards because there’s no balance transfer fee within the first 60 days and 0 % APR for 15 months. After that, you will be charged 3 % for every transfer. Below, we discuss balance transfers in more detail.
Keep in Mind Credit Card Rates May Go Up
Keep in mind that credit cards have variable APR. This means that the cost of borrowing on a credit card can charge over time based on market forces. Most short term business loans have fixed interest rates. This doesn’t necessarily mean that you should avoid credit cards. Credit card rates have held steady for 2 years, and it’s unlikely that they would increase more than a few percentage points in one year. Even if they did, you could find a different card with a lower interest rate and transfer your balance (see below for more info).
Be Smart When Using Credit Cards To Finance Your Business
1. Treat Your Credit Card Like A Loan and Make Regular Payments
When you take out a loan, you’re obligated to repay it in regular installments. When you use a credit card, it can be tempting to let your balances pile up. We advise you to treat credit card financing as a loan and make regular payments each month to keep your balance in check. Otherwise, you will significantly increase your interest burden and the amount of money you owe. You could also end up hurting your credit score.
One rule of thumb is to analyze your business budget and figure out how much you will pay back before you get your first credit card statement. Bankrate.com suggests that you pay double or triple the minimum monthly payment in order to shield your credit score and shrink the final amount that you’ll owe.
When you apply for a loan, you only take what you absolutely need. Treat a credit card the same way, and only use it for essential business purchases. If possible, try and keep your balance at 30 % of your credit limit or less. If your balances are approaching your credit limit, that can be a bad sign to creditors and hurt your credit score. In turn, this could harm your ability to get a small business loan later. If you must keep a balance that’s greater than 30 % of your credit limit, at least pay more than the minimum monthly payment.
About one half of small businesses have credit card debt. Balance transfers let you consolidate debt and transfer all your balances over to one low interest or zero interest card. This can help you save money on interest and make payments more convenient because you are making payments on just one card instead of several.
There are a few caveats for business owners seeking to do a balance transfer. First, make sure balance transfer fees aren’t so high that they end up detracting from your interest savings. A typical balance transfer fee is 3% of the amount you are transferring.
Second, make sure your credit limit is high enough to accommodate the full balance.
Third, if you want to separate your business and personal finances, don’t transfer balances from a personal card onto a business card and vice versa. Chase Slate is the one of the best balance transfer cards because there’s no balance transfer fee within the first 60 days and 0 % APR for 15 months.
After the 0 % intro period, your APR reverts to the standard APR for that card. Most cards charge a variable APR that changes with market forces. The change is generally very small from year to year. The exact APR you get will be based on your creditworthiness. The card issuer can increase your APR if you make late payments (known as a penalty APR).
3. Make Sure You Can Afford the Annual Fee
If you’re piling up a balance and have to pay a hefty annual fee, you’re fighting a losing battle.
Many good credit cards have no annual fee. Some, like Capital One VentureOne and Discover Cash Back, combine 0 % APR for several months with no annual fee. This is an excellent combination because you save on interest and don’t have to shell out money for the annual fee.
Some cards have annual fees but make up for it with cash back. For example, the Citi ThankYou Premier card carries a $95 annual fee but gives you 50,000 bonus points (equal to $500) when you spend $5000 with your credit card within the first 3 months of opening your account. This pays for the fee 5 times over. Ultimately, you should evaluate a card’s perks, interest rate, annual fee, and other fees to determine if it is a good fit for you.
4. Clarify Credit Card Usage With Your Business Partner
Many people get credit cards in their name and let their business partners use the card for business expenses. If you have a business partner, it’s crucial to be upfront about who’s responsible for what to protect the named cardholder’s credit score. We recommend that you consult an attorney, but at the very least you should have a signed, written agreement clarifying the following:
(1) What portion of your business budget will go towards paying off the credit card bill each month;
(2) How much you and your business partner each have to pay towards credit card bills out of your personal funds if the business can’t afford to pay; and
(3) stating that the business partner who is not applying for the card is liable to the named cardholder for his or her share of the payment if they must use personal funds.
Agreeing upon these things before you use a credit card for business expenses will save you time, money, and heartburn later on.
If you have a business credit card, getting a second card for a partner or employee can carry an additional fee. Usually, the business entity and named cardholder are jointly liable for paying the monthly credit card bills. Adding an authorized user to a consumer credit card is usually free of charge. Authorized users have the same spending privileges as the named cardholder but are not financially responsible for the balance.
5. Use Different Types of Cards for Different Business Purposes
All credit cards aren’t created equal. Choose a card based on your business goals. Business owners who borrow on their credit cards will benefit most from a card that has 0 % APR for a long introductory period and a low APR after that. If you already have balances on other cards that you want to transfer over, then consider a card with no balance transfer fees. Lastly, if you’re not looking to finance your business with a credit card but just want a credit card for daily business expenses, choose a card with a good rewards/cashback program. These are our recommendations in each category:
Best Small Business Credit Card: Chase Ink Plus
When you finance your business using a credit card, you are limited by your credit line. Although credit score is the primary factor in determining your credit limit, you can take certain steps to maximize your credit line.
Sometimes, you don’t have to take any action to increase your credit line. If you make timely payments, most credit card companies will bump up your credit line at least once a year. For example, Capital One promises a credit line increase when you make 5 on-time payments on their Platinum Credit Card. If your credit card company doesn’t increase your credit limit within 5-6 months of opening your account, call or email them. If you have a history of on-time payments, the issuer will usually increase your credit line to retain you as a customer. If they deny your request, ask them why. If they cite a low credit score, get a copy of your credit report and have any errors corrected.
Certain credit card companies are known to provide higher credit limits than others. This is more rumor than fact, but it might guide you in the right direction. For example, US Bank and Discover have a reputation for providing higher credit lines, and the same goes for Amex credit cards. Amex charge cards are a bad choice for business financing because the balance must be paid off in full each month.
Keep in mind that just because you have a higher credit line, it doesn’t mean you have to use it. In fact, having a higher credit limit without using it all up increases your debt-to-available-credit ratio, and this can have a positive impact on your credit score.
Business vs. Personal Credit Cards
There are two types of cards, personal and business cards. If you have a new business, it makes sense to use a personal credit card. As your business matures, it may be time to invest in a business credit card.
Consumer credit cards offer long 0 % APR intro periods (up to 21 months, compared to 9-12 months with business cards). This is helpful for a new business that is just getting off the ground and needs to save as much money as possible. Consumer credit cards are also subject to the National Credit Card Accountability Responsibility and Disclosure (CARD) Act, which protects cardholders from sudden hikes in interest rates and fees, and decreases in credit limits below existing balances.
Business credit cards come with several advantages. They offer higher credit lines, so they are a natural choice as your business outgrows the limit on personal credit cards. Business cards also shield your personal credit score and build up your business credit score. A business credit card doesn’t appear on your personal credit report, and credit card companies don’t report activity on a business credit card to consumer credit bureaus (unless you’re regularly late on payments). Rather, business credit cards affect your business credit score, an independent score used by B2B lenders when determining whether to grant you capital. Lastly, you can only charge business expenses to a business credit card, forcing you to separate your business and personal expenses. This simplifies recordkeeping and bookkeeping. We have put together a comprehensive review of the best small business credit cards.
Need some money for your business? Click here to get our FREE Guide:
How to Get a Small Business Loan.
Contrary to conventional wisdom, using a credit card to fund your business isn’t always a bad idea. In fact, for business owners with good credit who can’t get a bank loan, borrowing on a credit card is cheaper than most types of non-bank loans.
The key is to be smart when using a credit card. Treat it like any other loan and make regular payments. Take advantage of features such as 0 % introductory APR and no balance transfer fees. If you have a business partner, make sure to clarify in advance how much will go to credit card payments each month. Following such guidelines will help you borrow wisely on your credit card.
Need a fast business loan? We recommend Kabbage. The application is quick and easy, and you can borrow up to $150,000 in minutes. Click here for an instant decision.
Priyanka Prakash is Managing Editor at Fit Small Business. In addition to overseeing a team of a dozen writers, she also writes on topics ranging from retail to law to insurance. Priyanka is also responsible for ensuring the efficiency and integrity of Fit Small Business’ publication process. Priyanka is a licensed attorney, and before joining Fit Small Business, she served as in-house counsel at a tech startup. When not writing or editing, you can find Priyanka rollerblading, reading a good mystery, or exploring Brooklyn with her husband and daughter.
0 Interest Credit Cards 5 Tips Before Applying for No Interest
If you have credit card debt or you’re looking to finance a large purchase, no interest credit cards are an option that could save you money and even help you improve your credit score. But this type of credit cards isn’t for everybody, and it’s important to understand how they work before you apply for one. Here are five things you need to know about 0 interest credit cards so you can make an informed decision.
5 Tips Before Applying for 0 Interest Credit Cards
1. Zero Interest Cards Are Only Zero Interest for a Limited Time
Credit card companies obviously can’t give out credit cards that stay at zero interest indefinitely. They’d lose a substantial amount of money on credit card interest charges. When you see credit offers for no interest credit cards, remember that it’s only for the introductory period. The card issuer will specify the length of this introductory period in the terms and conditions for the card and in advertisements for the card.
The most common introductory zero interest period is 12 months. 0 interest credit cards may have shorter or longer introductory periods. If you don’t pay off the balance in full by the end of that 0 introductory period, the card issuer will charge you interest. Make sure that you can pay off any balance in full to avoid this, whether you’re transferring balances to that credit card or you’re using the card to finance a large purchase.
2. You’ll Probably Need a High Credit Score to Qualify for 0 Interest Credit Cards
The best 0 interest credit card offers are only available to consumers with high credit scores. Credit scores are between 300 and 850, and each credit card company has its standards when it comes to scores. Most companies consider a credit score between 700 and 749 to be good and a score of 750 or higher to be excellent. Some card companies consider anything above a 720 to be excellent.
Multiple banks and credit card companies offer free credit score monitoring to their customers. Free credit score monitoring allows you to check your credit score with at least one of the three credit reporting bureaus. Federal law entitles you to one free credit report per year from each of those bureaus. These credit bureaus are Equifax, Experian, and TransUnion. If you’re unsure of your score, it’s a good idea to check it before applying for any no interest credit cards.
With a score of 700 or above, you stand a good chance of approval for 0 interest credit cards. Anything lower will be hit or miss depending on that credit card issuer’s standards.
3. There are Balance Transfer Fees on Most No Interest Credit Cards
The best no interest credit cards now often make the deal even better by offering balance transfers without a fee. These no interest, no-fee balance transfer cards are the exception, not the rule. A balance transfer fee is a normal charge with most 0 interest credit cards. The standard fee is 3 to 5 percent of the balance you transfer.
Calculate how much you’d pay in interest charges compared to how much a balance transfer would cost to decide if transferring a credit balance is a good idea. In most cases, if you have a credit card balance that will take more than three to four months to pay off, you’ll save money with a balance transfer.
Balance Transfer Card With Lower Fees and 0 Interest Intro – Chase Slate® Visa Credit Card
4. Watch Out for Penalties on 0 Interest Credit Cards
You could still end up paying interest. It’s never good to miss your credit payment, pay less than the minimum amount or go over your credit limit. Missing credit card payments can all affect your credit score and lead to credit card fees. They’re even more of an issue with no interest credit cards. One mistake could be the end of that 0-percent interest deal.
For especially extreme issues, such as having a payment that’s over 60 days late, your card issuer could raise your annual percentage yield (APR) to a penalty rate. These can be as high as 30 percent.
If you manage your spending on credit and bill payments properly, you shouldn’t run into any problems. Just make sure you stay on top of everything, so you don’t lose that credit card low-interest rate. Set calendar alerts or automate your credit payments if necessary.
5. Zero Interest Cards Can Both Lower and Raise Your Credit Score
Each of the three credit bureaus issues you a credit score which can change over time. All three use the same general credit approval criteria for your credit score. Payment history and credit utilization are the most significant, but hard credit inquiries, age of accounts and credit mix also contribute.
There are a few ways that 0 interest credit cards can affect your credit score. When you initially apply for the card, the card issuer will run a hard credit inquiry. This hard pull credit inquiry brings down your credit score a small amount. As long as you don’t apply for many different credit cards or loans in a short period, it will only be a minor drop in your score.
If the card issuer approves you, then your available credit will increase according to the credit limit on your card. Your credit utilization will then decrease, which can improve your credit score.
For example, let’s say that you had one credit card with a $10,000 credit limit and a balance of $5,000. Your credit utilization was 50 percent, well above the recommended maximum of 30 percent. If a card issuer approves you for one of its no interest credit cards and issues you a $10,000 credit limit, your total available credit is then $20,000. This credit line increase then drops your credit utilization to 25 percent. Because of how important credit utilization is, this can result in a solid boost to your credit score.
Learning to Spend Wisely With No Interest Credit Cards
Something to remember when it comes to balance transfers with no interest credit cards is that you’re treating the symptom, not the cure. What this means is that you may save yourself some money that you would have spent on interest, but the real issue is your spending habits. Credit card debt is a sign that you’ve been spending beyond your means. Without changing your spending habits, you’ll end up running into the same problems.
Run the numbers to see how much a balance transfer to a 0 interest credit card could save you. Make sure that it’s realistic to pay off the balance within that introductory period. After making the balance transfer avoid using the credit card for any new purchases. Wait until you’ve paid off the transfer in full. Going forward, keep track of how much you earn every month and don’t rack up a credit card bill that you can’t pay.