A guide in choosing the right credit card for your business (Part 2)

The final part of the two-part article on how to choose the right credit card for your business is discussed below:

For the regular buyer/spender whose balance rarely or is never cleared in full every month

If you regularly use your credit card but rarely or never get to pay the debt in full your best option is a card with an introductory purchase rate or one that has a very low standard rate. A credit card with a low standard rate can help you save money especially if you don’t want the bother of looking around when the introductory period ends. Also, once you’ve built up a debt on your existing credit card then it’s a good time to consider switching to a credit card that also offers a low balance transfer rate. A number of card offer so-called double deals – in which card companies offer a low introductory rate along with a low balance transfer rate although the duration of the offer may vary so shop around. Ideally, try to get two separate cards for your purchases and balance transfers. If you decide on an introductory rate then you’ll have to transfer to a new low rate credit card once that deal ends, or else you’ll have to pay interest at the standard rate. Look for credit cards that have long-term balance transfer deals.

Credit card holders with existing debt that they are determined to clear

If you want to clear your outstanding credit card balance you will have to determine how long it will take you to do it and how disciplined you will be with your repayments. If you decide to just pay the minimum payment each month then it could potentially take years before you can make a dent on your repayments. It is a good idea to pay off a good-sized share of the debt on a monthly basis so that you’ll be paying off not only the interest but also the capital as well. This will result in a much quicker clearing of your debt. Try to find a card that will help you save more money. There are a number of cards that offer 0 per cent on balance transfers, usually at a term of five to nine months. This transfer makes more sense because the repayments for the period will reduce the outstanding capital. What you can do is once one introductory offer expires you can transfer your balance to another new card to continually avoid interest charges.

If you think you will be slow in switching when the introductory period ends then the next best thing is to look for a card that offers a low rate for the life of the balance.

Credit card users with poor credit history

There are difficulties in getting a credit card if you have no previous credit history, have CCJs arrears or defaults, frequently changed addresses, or self-employed. Some card companies can help you get a credit card even under these circumstances but the rate given to you may be based on a ans assessment of your situation and, thus, would most likely be different from the usual commercial rates given to other card holders. The good thing about this though is that using the card would help you rebuild your credit history.

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