A business credit cards can be an extraordinary tools in funding a business, specially when crisis expenses upraise. Entrepreneurs were competent to continue with their operations even though there’s a lack of cash with the help of credit cards. Yet, the use of a business credit card can sometimes be abused or misused.
Some business owners who own multiple cards find it difficult to control their spending and keep up with their payments. As a result, they were stuck in bad credit before they even become aware that there is a problem. Are you a business owner? Are you seeing yourself in a same situation? If your answer is yes, then it is time that you get your business a business credit card debt consolidation.
What is Business Credit Card Consolidation?
Getting out of the debt trap can be tricky if you don’t have the right tools. By consolidating your debts in all your business card accounts, repayment can be made easier. But just how do you consolidate business credit card debts?
If you search the market, you’ll find credit cards for business that offer 0% APR for balance transfers. The zero-interest may only be limited to only 6 months or 12 months but you can take advantage of this period to pay off your balances without the additional interest charge. In 6 or 12 months, imagine how much money you can save by not paying the interest.
Which Balance Transfer Business Credit Card is Best?
If you do decide to consolidate your business debts with a balance transfer business card, don’t make decisions in a rush. Take time in doing research and in comparing one credit card to another. Check out credit card review websites and read about the potential business credit cards in the market. More importantly, read and understand the fine print.
Aside from the zero interest offer, you should also be concerned about the rest of the fees. For instance, how much would be the interest for purchases? Some business credit cards may offer 0% interest for balance transfers but could kill you with excessive APR on purchases. Some cards may also impose expensive fees each time you transfer over balances. How long will the zero APR last? The introductory offer varies from one credit card to another. How much would the regular APR be after the introductory offer expires? Although your goal is to pay off all your balances within the zero-interest period, you’ll want to make sure that the APR will remain reasonable for a long time.
Do not Repeat the Similar Mistake Twice!
Although balance transfer cards are available to help you consolidate debts, avoid the debt trap by using your business credit card with caution. Don’t try to juggle your debts by switching from one balance transfer credit card to the next. If you notice that your credit spending is going out of hand, take action right away. Remember, untimely payments and credit debt does not only damage your business credit history. It can also put your business in great danger.