Small Buisness Credit Card FAQ
fyBusiness credit cards are intended for business owners who are either starting up or run successful businesses. They can come with frequent flyer programs, rewards programs, cash back, insurance packages, and other beneficial features. Some credit cards come with zero introductory interest rates on balance transfers and qualifying purchases. To qualify for a business credit card, it is important to pay your outstanding debts on time. This is a good way to prove creditors that you are a trustworthy client. Making timely payments over a long period of time is the way to obtain more favorable terms. As an alternative, you can save some money and apply for a high interest credit card.
Being a timely payer, you will have good chances to qualify for a low interest business credit card. Reducing all outstanding balances and paying them in full can help as well.
Most banks and other financial institutions in Canada offer business cards, but the interest rates vary substantially. The CIBC Aerogold Visa Card for Business is a low interest credit card offered by CIBC. A low interest rate of 10.2 percent is offered to favored customers. The card may come with an interest rate of 13.9 percent or 16.9 percent depending on the credit score of the borrower. Cardholders can request additional cards for a fee of $50 a year, while the annual fee for the primary card is $180. The minimum credit limit is $5,000, and the card comes with a rewards program. Cardholders are entitled to a welcome bonus of 15,000 Aeroplan miles and earn one bonus point for every dollar charged to the credit card.
BMO has several low interest business credit cards intended for small businesses. The BMO Gold AIR MILES MasterCard for Business goes with an annual fee of $169 and interest rate of 12.9 percent. Optionally, clients can pay the fee of $119 only, but the interest rate will be set at 19.5 percent. The welcome bonus is 150 bonus points and every $15 dollars earn 1 mile. The card is featured with car rental collision damage waiver, unexpected return home and trip assistance, and other beneficial features. Zero dollar liability and extended warranty are also offered.
Cards for employees can be requested for $15 a year, and the grace period is 21 days. Credit card for small businesses are offered by TD Canada Trust as well. The TD Venture Line of Credit Visa Card is offered with a rate as low as the TD Prime rate (3 percent) plus 2 percent. There is no annual fee, and cardholders can request up to 3 additional cards at no added cost.