How many credit cards do you own? How many rewards do you claim from each card each year? Is this the highest possible amount you can get? If you own a bunch of credit cards for business purposes, chances are you transact lots of cash using the cards. Then, it is only fair that you find out how to maximize their potential for your business. Here are some quick tips:
Pick the Right Credit Card For Your Lifestyle
Credit cards vary according to their use. Still, the rewards on offer may make you buy a credit card that you may never use to the fullest. That is, imagine picking a starter credit card because it has a crazy bonus offer for the initial $1,000 buy. Yet, you want to use the card in your next financial quarter when the proposal would have expired. Then this choice is wasteful for your business.
Thus, plan your credit card spending in advance. Then, check if your potential interest on your balance can offset the signup bonuses. Third, select the card that has most rewards according to your spending habits.
Most business credit card owners prefer to have all your transactions on the card. That way, you get to reap the most rewards that the cards can offer. Picture this. The cards have reward plans that add points and access discounts in high-end outlets. It is a plus for your business as you access top-notch services at discounted rates. Second, it is always safer moving around will less cash in your hands. More so, you want to track your spending and pinpoint any instances of fraud.
Monitor The Transaction Fees and Terms and Conditions
Now, with credit cards, you get the feeling that there is a fee for almost everything, right? Yet, what are the worst credit traps? Annual fees, finance charges, late fees, cash advance fees, balance transfer fees, card replacement fees, and the like. Then, it is only prudent to keep tabs on this necessary aspect of credit cards. For example, are you a business traveler? Then opt for credit cards with minimal or no foreign transaction fees. Foreign transaction fees feature as a small clause in the T&Cs section. Indeed, we rarely consult the merchant about such charges. Yet, it could be the reason why your spending shoots up every time you are out of the country.
Maximize on Reward Cards
Understand the kind of reward plan that your credit card offers. Then, plan your spending around it, to reap the highest rewards. For example, always use your credit card for bulk buys. And, use the card for utility bills. Still, a carry balance often reduces your rewards earning potential. Hence, ensure you keep it to the minimum.
Distribute Your Expenses Among Several Credit Cards
Yes, this strategy works. More so, when you can’t get all the rewards you want in one card. For example, your travel card ought to be separate from your fuel card. For, you may opt for a flight for the air miles, taxi, or public transport when traveling abroad. But, when at home, you can use your fuel card the most. Plus, it is easier for your accountant to allocate expenses from a bank feed to the various cost centers.
Credit card merchants always try to entice you to buy their cards. Yet, it would be best if you only went for one that has the most potential for your business. You want to access a revolving credit that is convenient. In this era of online purchasing, you need a card that is safe and easy to use. And, who wouldn’t want to get rid of the accountability strain at the end of the month?