Business credit cards with no annual fee are free to open, and the best ones offer extra benefits like a promotional 0% APR period, which can help you save money.
When deciding on a business credit card with no annual fee, it's important to look beyond the absence of the fee. Here are key factors to consider to help determine if it's the right fit for your business.
Although no annual fee cards save you from an annual charge, be aware of other potential fees, such as:
Even though a card may have no annual fee, these other costs can add up, depending on your business's spending and payment habits.
When choosing a no annual fee business credit card, it's essential to look closely at the rewards program, as it can significantly impact the card's overall value for your business. Credit card rewards programs vary, and the best choice depends on your spending habits and how you plan to redeem those rewards.
Make sure the rewards structure fits your business's spending habits and offers the most value for your typical expenses.
Most no annual fee business credit cards require good to excellent credit, and applying for a card involves a hard inquiry on your credit report. Consider:
Be sure to assess how applying for and using a business credit card will impact your credit score in the long term.
Some no annual fee business credit cards offer lucrative introductory offers to attract new cardholders. These can include:
While these introductory offers can provide significant value upfront, they are temporary. Make sure the card's long-term benefits meet your ongoing business needs.
Businesses of all sizes can enjoy several benefits from business credit cards without an annual fee. For one, it's often easier for new businesses to qualify for these cards. Many of them are made for companies with recently established credit, so you won't need an excellent credit history to apply.
Since the card doesn't cost your business anything, getting and keeping a no-annual-fee card open is a great way to build business credit. You won't need to worry about finding ways to offset the cost of the card. Instead of paying to qualify for future savings, you can earn rewards on purchases immediately.
This story was produced by Ramp and reviewed and distributed by Stacker.