Business owners are encouraged to use credit cards for business not only to build their corporate credit history. Business credit cards are also equipped with special features that entrepreneurs must use to their advantage so they can manage their businesses more efficiently and conveniently.
However, owning multiple credit cards is not recommended since managing accounts can prove to be a challenge. If you already have more three or two business credit cards, how can you avoid the risk of bad debt? In this article, let’s talk about business credit card debt consolidation and how it can help you get out of debt.
What is Business Credit Card Consolidation?
Yes, the business expenses that you charged to your business credit cards can be consolidated or merged in a new account. By applying for a new business credit card with a zero interest rate or a lower interest rate, you can work on paying off your debts without worrying about additional charges.
Business credit cards with balance transfer interest rates do exist. Some may offer 6 months of zero interest while other cards may offer 12 months or even longer. You can use the introductory period so you can pay off only the original expenses or purchases you made, minus the interest. Transferring balances is a smart move for business owners with multiple business credit card accounts and which have existing balances on each.
Which Balance Transfer Business Credit Card is Best?
Which balance transfer business credit card should you get? The choice you make must depend on facts and figures. Take the time to find out which business credit cards in the market have a zero interest balance transfer offer. Compare the rates and check out the Terms and Disclosures of each card as well.
Since the zero interest offer will not last forever, you want to make sure that the regular rate would still be reasonable. After transferring your balances from your high-rate cards, you should be able to enjoy a much lower rate even after the zero APR offer expires.
Nevertheless, do you best to complete your payments within the 0% Apr introductory period. As soon as all your outstanding balances have been paid off, make sure that you will not be incurring charges from your business credit cards all at the same time.
Don’t Make the Same Mistake Twice!
Credit cards for business with balance rates can be used as tools to avoid bad debt. However, the wisest thing to do is keep your spending under control and ensure that all the charges you made are important for your business. Avoid using your business credit card for your personal costs.
Pay attention to your bills and to your account. If you have distributed supplementary cards to your employees, keep a close eye on their spending as well. Use your business credit card not only to easily make purchases but more importantly to be able to build a solid corporate credit history.
About the Author
Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards, pre paid credit cards and prepaid cell phone service can save you big money!