I read somewhere that business cards are presenting with better rewards now than they did before. Have you noticed that to be the case? Also, how important is it for your business to have a long term track record? Are you required to be in business for a long time before you are accepted as a customer of these cards? This is a great list, thanks!
@Susan,
Actually, your business track record will have some kind of bearing upon your eligibility as a customer. Card companies are certainly going to look at the big picture when assessing your qualifications as a customer for a particular card. It’s akin to the evaluation you receive when issuers check your credit history (track record) for personal cards. The healthier your business appears to be, the better the terms you are usually given. If your business has been around for a couple of years or more, you’re likely to get more attractive terms.
There are some things you will want to be aware of though — the CARD Act is known to have only covered personal cards and it appears that these regulations only apply to consumers (at least, at this time). That is, business cards may still be subject to higher costs and penalties that you may not see in the consumer card realm. For instance, be careful with using business cards as your rates may skyrocket at any time due to any violation (like a missed payment or late payment, etc).
Also, be aware of what could happen in case your business fails — is it possible for an individual to be liable for their business card debt? There is such a thing as “Individual and Company Liability” which may be part of a card’s terms of use — so do check this out carefully before signing up. If you are found liable and are unable to pay off your business card, it may hit your consumer credit record.
Be aware that issuers may give you a pass or may let you off the hook (with regards to your short term debt) if you have outstanding credit. Issuers make these decisions on a case by case basis and there’s always a possibility that they will want to continue keeping you as a customer. Check if your card issuer honors any form of liability clause.
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I read somewhere that business cards are presenting with better rewards now than they did before. Have you noticed that to be the case? Also, how important is it for your business to have a long term track record? Are you required to be in business for a long time before you are accepted as a customer of these cards? This is a great list, thanks!
@Susan,
Actually, your business track record will have some kind of bearing upon your eligibility as a customer. Card companies are certainly going to look at the big picture when assessing your qualifications as a customer for a particular card. It’s akin to the evaluation you receive when issuers check your credit history (track record) for personal cards. The healthier your business appears to be, the better the terms you are usually given. If your business has been around for a couple of years or more, you’re likely to get more attractive terms.
There are some things you will want to be aware of though — the CARD Act is known to have only covered personal cards and it appears that these regulations only apply to consumers (at least, at this time). That is, business cards may still be subject to higher costs and penalties that you may not see in the consumer card realm. For instance, be careful with using business cards as your rates may skyrocket at any time due to any violation (like a missed payment or late payment, etc).
Also, be aware of what could happen in case your business fails — is it possible for an individual to be liable for their business card debt? There is such a thing as “Individual and Company Liability” which may be part of a card’s terms of use — so do check this out carefully before signing up. If you are found liable and are unable to pay off your business card, it may hit your consumer credit record.
Be aware that issuers may give you a pass or may let you off the hook (with regards to your short term debt) if you have outstanding credit. Issuers make these decisions on a case by case basis and there’s always a possibility that they will want to continue keeping you as a customer. Check if your card issuer honors any form of liability clause.