Types of Business Credit Cards

Every business enterprise comes with its own gamut of expenses and meeting expenses on credit becomes inevitable. Credit Cards specially designed for business houses comes in handy in such situations. Almost all banks have come up with Business Credit Cards designed specially to meet the business expense needs. These cards are designed to makes the business expenses less expensive in nature by giving rewards, cash back and other incentives. It also adds up as a working capital need when you are faced with financial crunch. Business credit cards also help the user to track their expenses and to keep a check on unwanted expenditure. Most of the business cards are co-branded to provide you better rewards on your specific spending. Banks also offer additional free business credit cards to employees meant for specific usage. With excessive competition in the business credit card applicant has to do his own research when selecting the right business credit card for himself.

The different kind of business credit cards available in the market are as follows:

  1. Unsecured Credit card: these are traditional credit cards wherein the card provider checks the credit history, credit score and other financial data before approving the credit card. Mostly these are issued to established business houses.
  2. Secured Credit Card: Most of the businesses do not have a healthy credit history or no credit history as in the case of new start ups and hence do not qualify for unsecured credit card. For them the bank offers credit card secured by collateral which can be their checking account or a fixed deposit.
  3. Reward Credit card: These type of cards provides reward points against purchases made and the accumulated reward points can be redeemed for cash or gifts or discounts.
  4. Cash back credit card: These types of business cards comes with cash back facility on the purchases or the outstanding balance. Normally the cash back amount is a fixed percentage with a cap on maximum amount.
  5. Co Branded credit card: These types of cards are branded with specific merchants or airlines or institutes and provide specific incentives when purchasing any of the goods and services offered by the co-branding company.
  6. Bad Credit business card: the business houses with bad credit history and credit score can also apply for credit cards but these cards are either pre-paid or secured cards with high interest rates.

Before applying for business credit cards the applicant should do his research on which credit card suits his needs and also check on the payment terms and charges associated with the card. Applying for the credit card to the institute where you already have financial relationship helps in faster approval. Application should be filled in carefully with all the details asked for. The applicant can apply either in person at the branch or online using internet facility.

The processing of business credit card is same as any other traditional credit card wherein the provider checks the credit history, credit score, income, stability and other financial inputs. Once verified and repayment trust is confirmed, the provider approves the credit card.