Today, there are hundreds of new credit card options available in their market. They are also the endless varieties that offer not only rewards but also no-interest periods as well as opportunities to credit, making it hard to choose one to insert in your purse.
If you are looking for the easy and simple methods on how to pick the best credit card for beginner business, this article is the right place to learn. However, the best credit card according to you will be definitely different from that of according to other people. So we just help narrow the ways and the options of getting a new credit card.
We have summarized you the 3 easy and simple methods to choose the desired credit card. Those are by checking your credit score and report, deciding the credit card types to meet your needs and shopping around for the best offers offered by each credit card.
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Contents
Check Your Credit Score and Report
First of all, if is necessary to check your credit score and report if you want to pick up the best credit card for your startup. There are dozens of resources available including Discover Credit Scorecard, CreditWise and Capital One. There are also a number of services that offer insight into factors to improve the score. Luckily, you should not be the customer if you are doing this step.
This way, most of the creditors use FICO that can range vary. The categorization include the score ranges as follows:
- Very poor scores from 300 to 579
- Fair scores from 580 to 669
- Good scores 670 to 739
- Very good scores 740 to 799
- Excellent scores 800 to 850
Thus, it is highly recommended that you have FICO scores between 670 and 850.
Once you find out what range are you in, begin to fine-tune your credit card search using the information and choose credit cards that have the same credit or less than yours. If you possess a good credit, choose cards with good or fair credit requirements.
Though your credit score falls in the good range of FICO scores with no guarantee, you’ll still be approved for a credit card that has a good credit. In this case, the credit card issuers will evaluate the factors more than just your credit scores including your monthly income and housing payments.
Choose The Credit Card Types Based on Your Needs
The second method you can try easily on how to pick the best credit card for beginner business is to choose the credit card types based on your needs. In the methods, there are three types of credit cards for a new businesses or startup. Those are rewards, 0% APR and building credit.
Rewards
Rewards credit cards are suitable for those who don’t have any debt and have developed a good credit. These cards help balance the purchases cost and pay for the next travel. There are many sizes of Rewards credit cards that offer you both the cash back and points or miles with all categories like travel, gas, dining out and groceries that you can redeem for statement credit, airfare, hotels, gift cards and more.
There are bonuses you can receive depending on the rewards you are opening. Some of the most favorite perks are:
- Capital One venture Rewards Credit Card
You may choose either Global Entry or TSA PreCheck credit.
- Chase Sapphire Reserve
- This credit card offers 50% more value on points redeemed for travel using Chase Ultimate Rewards.
- Citi Rewards+ Student Card
Points will be rounded up to closely 10 points for every purchase you make.
- Discover it Cash back
All the cash back earned in the first 12 months will be doubled at the end of the year. This offering is for the new card members only in their first year.
Intro 0% APR
If you have already debt or finance new purchase and want to get out of it, Intro 0% APR can be a proper tool that comes with no interest on your purchases, balance transfer or even both. In this regards, The Citi Simplicity Card offers a 0% intro APR for 21 months or balance transfers from the date of your first transfer. The card also offers 0% APRL for 12 months on your purchases from the date of your account opening. This way, you should complete the balance transfers within 4 months of account opening.
During the period of free-interest, you can gain the benefit from the significant savings versus bringing a balance on a high interest credit card at which your payment is close to the interest charges.
The best balance transfer credit cards must offer no interest time for a year and some other cards also come with hard-to-find $0 fees of balance transfer.
If you have a coming-up large purchase, you had better put it on an intro 0% APR. This will provide you with a chance to have no interest charges when you repay your debt. Just make sure that you can pay down your balance before the end of intro period.
Building Credit
The next step on how to pick the best credit card for beginner business is to choose the suitable credit card type like Building credit. Building card is good for those who don’t have much credit history or have only less than 699 FICO score or lower. Surely, there are rewards along with the other special financing offers. Note, a good credit score is the key to unlock the best interest rates and arise the approval odds for credit cards, loans and mortgages.
There are some options designed especially for Building credit such as Secured card. This card is very popular among new credit beginners and people that have bad credits. Secured card simply offers a security deposit usually $200 and credit limit which is just the same with the deposit. Secured card can be used like a traditional unsecured card.
One type of Building cards you can consider are Disciver it Secured Credit Card which is considered as the best choice due to its cash-back offering. This card allows you to earn 2% cash back at gas stations and restaurants on up to $1,000 along with the combined purchases each quarter, 1% and an unlimited 1% cash back on all other purchases you can gain automatically.
Shop Around To Look For The Best Credit Card Offers
The third method that you may want to try is to shop around to look for the best offerings from credit cards.
If you have decided which credit card type you choose to meet your needs, then it is time to look for the best offerings offered by your credit card. Bonus categories are available in term of reward cards, length of intro for 0% APR cards and credit tools for cards that assist you to build the credit.
Remember to put the factor in both fees and interest into your decision. The actors are usually the annual fees, APRs and foreign transaction fees as well as the late payment fees.
If you feel confused of which credit card type to choose, you may submit a pre-qualification form online to check whether you qualify. This way, you can luckily submit more than one pre-qualification requests without running your credit score. That is because the form has a soft pull of your credit that will not disturb your credit score.
However, you should be aware of the pre-qualification form that has no guarantee as you will get an approval for the card and submit an application that will probably disturb your credit score. On the other hand, if you successfully pre-qualify for a credit card, it shows that you can apply for a credit card. It means good.
Other Tips To Choose The Best Credit Card For Your Business
If you are a beginner in developing a business, you should find more and more tips especially when it comes to choose the best and the rightest credit card. In this regards, we have some tips to enrich you with the credit card strategies to deal with your business. They are as follows:
Be Realistic
As we have mentioned, rewards card is one of the suitable credit cards if you are going to pay the charges monthly. However, the rewards are just smaller than the interest you are required to pay especially if you carry over the balance. This way, if you are going to hold a balance, evaluate the interest rate. Evaluate the rewards quality if you are disciplined enough not to carry over the balance.
Look At The Terms
The second tips to get best credit card for beginner business is to look at the terms. If you often travel abroad for your business, make sure your credit card has no foreign transaction fees. By the way, foreign transaction fees can be up to 3% in fees to anything you buy abroad.
Therefore, if you tend to use the card outside your country, don’t forget to opt for one that doesn’t include such fees. Search on the internet for a credit card and go to the term “foreign transaction fees”. Then, you will get information whether the card has the fees or not.
While a 0% introductory APR is highly interesting, you must remember what thing is going to occur when it expires. So, you had better check the disclosure page before you read the ad copy on the homepage of a credit card. Read the information about the rates and fees, then, go back to read the card benefits.
Consider If You Need A Card with A Line of Credit
Generally, some credit card programs come with a line of credit option for businesses. This option allows for writing a check to anyone for an amount up to the credit limit. It is pretty easy to get a line of credit when you occasionally need a fund. However, make sure you know the fees you are required to pay for using the line of credit before you finally choose this option.
Conclusion
Now that you have learned our best method on how to pick the best credit card for beginner business along with some tips, you can consider which credit card you are going to choose based on your needs especially for your business.
As credit cards can be risky, small business owners are recommended to personally guarantee the credit card. Using a credit card can make you feel so stressful lead your business to an irreversible financial stress. Thus, make sure you follow the methods and tips we have already shared above.
