Owning a business comes with its own fair share of decision making, and taking a Credit Card for your business is no different. Not only will the card help you build credit for your business, but in the long run, will also help determine its creditworthiness. Hence, it’s in your best interest to conduct thorough research of the market to find one amongst the Best Credit Cards in India that is best suited for your business needs.
In order to do so, you will need to ask yourself and your Credit Card provider some key questions. Just so that you need not work on these, we have consolidated a go-to list for you. All you now need to do is find the appropriate answers.
If you are reading this, you know you want a Credit Card, but we would recommend you step back and think it through. Why it is that your business needs a Credit Card? Are you looking for short-term credit for the operating costs of your business? Or you wish to build a credit score? Or it may be because you are interested in the rewards and other perks that come with the card?
Make sure you know the answer to this vital question before you start searching for an apt card, and especially before you get in touch with a card provider. If you will need a moderate amount of credit every now and then, it is best to opt for a card with a higher credit limit.
If, on the other hand, you wish to make multiple purchases, you must look for a card with the lowest interest rate. On the other hand, if it is the rewards that you are interested in, it will pay to make sure that the card you pick offers ample rewards that are in tandem with your spending behaviour.
Needless to say, depending on your answer to this question, the card you pick will vary!
Depending upon the type of your business, your spending categories will vary. Hence, it is important to make sure that the card you choose rewards your behaviour in the best way possible.
If your business needs you to socialise and organise dinners for clients, a card that offers benefits on dining options might prove to be the best for you.
If on the other hand, you ought to travel a lot for your business, consider taking a card which rewards you in the form of flyer miles.
If you are someone who believes in the power of cash, you can look for cards with amazing cashback benefits.
The key here is to find a card that resonates your buying behaviour!
When you begin your hunt for Credit Cards, it is obvious to think that you will be great at the game of borrowing and paying back. However, life is uncertain and finances more so. Hence, you never know when your outstanding bills start mounting. This makes it essential for you to know beforehand the cost of missed payments.
Before you finalise on a card, make sure to ask your bank about the late payment penalty, as well as the interest that your dues will accrue. Moreover, inquire about the level of flexibility that the lender offers. The more flexible the lender is, the better it is for you!
In an ideal world, you would want your business credit and personal credit to be as far from each other as possible. However, in the real world, things might be a little different. More often than not, Credit Card companies send monthly reports to both, consumer credit bureaus as well as commercial credit bureaus, which imply that your business credit may have an impact on your personal credit. If you simply don’t want this to happen, ask your Credit Card provider about its policies.
That being said, you must also understand that some card issuers might need a personal guarantee from you as the business owner, towards the surety of payments on the business card. This may also make it a little less likely for your personal and business credit history to stay completely distinct from each other.
This is where you ought to rely on a detailed pros and cons analysis. Once you have narrowed down your search to 3-4 cards, you should then go ahead and list down the benefits and the limitations of each one them.
Here, rather than simply looking at a short-lived welcome bonus, make sure that you take into account, late fee, interest rates, and long-term benefits, so that you stand a chance to make the most of your card.
After a thorough analysis, pick the card that you believe will prove to be the best when it comes to catering to the specific needs of your business.
Now that you know what questions to ask yourself before kick-starting your search for an ideal Credit Card for your business, make sure you take some time out and do this simple yet crucial homework. If chosen correctly, not only will the card help you revel in the many benefits that it brings along, but will also ensure that your business enjoys enhanced creditworthiness in the coming years!
Also Read: 5 Best Premium Credit Cards in India
To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 70+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.