Do you need a credit card for your business? Not all credit cards are made equal, which means that you need to be careful. There are many business credit cards in the market, so you need to research properly.

Do you need a credit card?

When you open the doors to your business for the first time, money will be scarce but you will still have bills to pay. What will you do if an important piece of equipment breaks, but you do not have the funds to cover the cost of repairs? Young startups are not likely to be given a line of credit because they have not proven themselves.

Your best bet would be seed money from friends and family, but you might not want to burn that bridge yet. You can get a credit card to cover your basic expenses before your business gets off the ground. However, you need to be careful not to overspend, as it can lead to financial disaster.

Just as credit cards have made many families bankrupt, they can do the same to your business. Make sure that only buy what your business can afford.

How to find the right credit card

Be realistic  

Will you pay the full charges at the end of each month? If you plan to, look for rewards cards. Imagine getting a free flight just for using your credit card as you normally would. Some credit cards companies offer rewards such as cash back and travel rewards. However, these rewards are nothing compared to the interest that you will pay when you carry over balances.

By paying more interest, you will be wiping out the rewards that you get.

Keep yourself honest

A charge card is vastly different from a credit card. With the former, you have to pay the balance after a certain period while credit cards permit you to roll over the balance.

Look at the terms

Do you often travel outside the country? You should ensure that there is no foreign transaction fee on your card. Although many credit cards do not, you could end up paying up to 3 percent in fees if you fail to read the fine print.

Research the rewards program

After choosing the type of rewards program that you want, make sure that you read the fine print. Look for top rated rewards credit card companies online to see which ones people like. If you want to get travel rewards, check whether your preferred company gives rewards for your favorite airline. Do you have many cars? A credit card that gives you bonus points for buying gas is preferable.

Watch out for teaser rates

Although an introductory 0 percent APR is enticing, what will happen once it expires? Before looking at the enticing credit card homepage, you need to search for the disclosure page. Once you know the fees and rates, you can now read about the benefits that the card offers.

What are the penalties?

Although nobody makes late payments on purpose, what will happen if you do? Will you lose your reward points or will a penalty APR go into effect? You also need to know what the late fee will be. Sometimes, paying bills late is inevitable, so you need to consider the penalties for doing so.

How will extra credit cards work?

Will you be charged an extra fee if you want to get extra credit cards for your employees? Is it possible to set a spending limit on an employee’s card? Some business credit cards have remarkable ways of tracking and limiting employee spending.