Apply for Credit Card!
A Business Credit Card is designed for business owners to pay for their business expenses. This allows you to manage
monthly expenses conveniently. But with so many options of business Credit Cards available, finding a suitable card
might not be easy.
Since every business has unique requirements, you must learn to select the card that best meets your needs. This is
where knowing the essential tips to choose the right Business Credit Card for your business can be really helpful.
Choosing the right Business Credit Card: 5 key tips
How to choose a Business Credit Card? If this question has popped into your mind, follow these
simple tips to select the best option for your business -
1. Review your business expenditure
Examine your business expenses for the previous six months to understand your spending patterns better. Knowing how
much you spend per month and your biggest expenses will help you choose the right card. For example, if you spend a
lot of money on airline tickets, you can choose a Credit Card that gives you
air miles or access to airport lounges.
2. Check your personal and business credit scores
Your credit score influences the types of cards you are eligible for and your credit limit. Before applying for a
Business Credit Card, you should check both your personal and business credit scores. It will help you determine
your eligibility for Credit Card and prevent being
declined by the bank.
3. Compare Credit Card interest rates
If you fail to pay your Credit Card
bills on time, the bank will charge you interest on the outstanding amount. This interest is an additional
expense for your business. Check the interest rates on various cards to determine the lowest rate applicable.
4. Compare Credit Card charges
Banks charge annual Credit Card fees for the
services offered. Compare the annual charges and look for offers like zero annual fees after achieving certain
spending milestones. Banks waive the charges for specific cards after you spend a certain amount. Check whether you
are eligible for such Credit Cards through your bank's website.
5. Check the available benefits, offers and discounts
Check the benefits offered by various Credit Cards to decide which ones are most valuable. Take Axis Bank's MyBiz Business Credit Card, for example. You can earn 4 reward points on every ₹200 spent on flight tickets, hotel bookings, direct marketing and advertising. You can withdraw cash from ATMs, convert your purchases into EMI, and pay your utility bills automatically.
Also Read: How to get a Credit Card in 3 easy steps
Conclusion
A Business Credit Card allows you to separate your business and personal spending. You can also save money through cashback offers, discounts and annual fee waivers. To genuinely benefit from your Credit Card, you must first understand how to choose a Credit Card company and the appropriate Credit Card for your business. Before deciding, research various options and thoroughly review their features and benefits.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
