Selecting the Ideal Business Credit Card
April 16, 2024
As a small business owner, choosing the right credit card for your business is essential. There are countless options available, each with their own set of rewards, fees, and features. With a card that aligns with your business spending, you can earn rewards, build your business credit score, potentially save money, and even reinvest in your local community.
Here is a checklist to help you choose the right credit card for your business:
Fees:
- Are there annual fees?
- Is there a promo rate that will drastically hike?
- Are there foreign transaction fees?
- Are there balance transfer fees?
- Are there hidden fees such as late payment penalty interest rates?
Interest Rates:
- If plan on carrying a balance, who offers the lowest rate?
Credit Limits:
- Is the credit limit high enough for your business needs?
- Is the limit so high that you will incur too much debt or overspend?
- Is the rate so low you’ll need to ask for more when needed?
Rewards:
- Do they offer cash back?
- Is it simple to obtain your rewards?
- Do they expire?
- Do the rewards offerings align with your spending?
Digital Banking:
- Are you able to adjust cardholder credit limits in digital banking?
- Can you make automatic payments in digital banking?
- Can you set up alerts and notices in digital banking?
Choosing a business credit card has everything to do with the financial institution that provides it and working with your local credit union offers a unique chance to reinvest in your local community. Unlike traditional banks, credit unions operate as not-for-profit organizations, owned by their members. Their primary mission is to serve and support the community they belong to, which includes offering business credit cards with competitive rates, low or no fees, robust digital banking, and useful rewards.
A business credit card can be a powerful tool for small business owners, offering financial flexibility and convenience. When doing your research, consider a business credit card from Redwood Credit Union. You’ll be benefiting your business while making a meaningful investment in the financial well-being of your community.
Redwood Credit Union’s Business Visa® Platinum credit cards offer no annual, foreign transaction, or balance transfer fees. Plus, you can access rewards and set credit limits for your cardholders via digital banking. Learn more here.
PPP Forgiveness Application Deadline
Congress passed The Economic Aid Act which changed the deferment period from 6 months post covered period to 10 months post covered period. For example, if your covered period ended June 30, 2021, under the new guidelines the earliest your first loan payment wouldn’t be due until April 2022, and you have until then to request forgiveness. Please use the following calculation to help you identify when your forgiveness will be due:
- PPP borrowers may select a covered period anywhere from 8 weeks to 24 weeks.
- RCU is automatically calculating your loan due date based on a 24-week covered period, if you intend on using a shorter covered period please inform us immediately as this will impact your due date.
- Your correct deadline will be reflected in your online banking account.
If all or part of your PPP loan is not forgiven, your first loan payment will be due the first of the following month after a decision is made by the SBA.
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