The 9 Best Zero Balance Transfer Business Credit Cards
A balance transfer allows someone to transfer debts such as credit card balances or loans to a zero or lower interest rate credit card. Once in, the zero rates can last for 12-18 months or even more. In this article, I will discuss the business credit cards with 0 balance transfer. Most times, people transfer their balances to take advantage of a promotional campaign that must be at least six months of getting their current card.
Any kind of credit card, be it a business or a personal credit card can qualify for a balance transfer. It is important to note that balance transfer happens as per the timings a financial institution allocates. During the balance transfer, you’ll have a 0% interest rate on the balance transfer during the promotional period. However, you should note that there may be some transfer fees in the process.
0% interest credit cards with no balance transfer fee save you a lot of money as you take advantage of the friendly interest rates and other terms highlighted by the concerned company. However, you should see that the promotion is long enough to have a significant benefit. Otherwise, you may rush to transfer your balances only to realize that the new card is more expensive to maintain as compared to the previous one.
What is a business credit card?
You may be wondering what a business credit card is. Well, a business credit card helps to solve the credit needs of your small business. We all know that businesses at some point require loans to expand their operations and more so the small businesses. A credit card comes in during that point whereby your issuing company can give you a certain credit limit to use and pay later.
To be precise, a business credit card is a type of credit card that allows you to borrow money from your issuer to satisfy your business needs such as the addition of stock or the acquisition of new workspaces and so on. The best business credit card should have low fees and numerous rewards.
Who qualifies for business credit cards?
Anyone with an enterprise that is generating income qualifies for a credit card. The enterprise can be a sole proprietorship, partnership, or a Limited Liability Company (LLC). A side gig can also qualify for a business card so long as you have the required records. So here, talking of an income-generating enterprise, we are talking of a business of any nature so long as it operates legally.
A legal business is that which is registered and allowed by the law to operate. You do not need to show proof of an office, employees, a store, or vehicles to get a business card. All you need is the necessary documents for your business operations such as a personal Social Security Number (SSN) and statements to show your income from the business sales of products or services.
What should you consider before applying for a business credit card?
While you can use a business credit card for various purposes such as sending money and buying goods and services, there are various things you should consider. This will help you avoid unnecessary costs that can have negative impacts on your business.
The first thing you should have is the necessary documentation such as a Social Security number (SNN) or individual taxpayer identification number (ITIN), employer identification number (EIN), Dun & Bradstreet ( D-U-N-S) Number, and a business checking/savings account.
Moreover, you will also need to need to check various aspects such as transaction fees when for example you transfer money from a credit card to a prepaid card online using an app, monthly fees, and annual fees. You will also need to consider;
i) Credit scores
A credit score is the creditworthiness of an individual or a business. Credit bureaus assign people and businesses specific numbers that indicate their ability to easily repay their loans. The lowest value in the system indicates the poorest scores while the highest number indicates the highest scores. The credit scores range from 300-850.
The number of credit scores will help you decide on the best card to get. If you have good-excellent scores, you will be lucky to get a card with high limits and low-interest rates.
ii) Business-related spending patterns
You should also check how the card allows you to use it. See if the card has a daily maximum expenditure. Some credit card companies set maximum expenditure for a day. Such cards are disadvantageous since you may need to spend a certain amount in a day that exceeds the limit. But also remember that it is good to always spend far low below the credit limit to ensure that you grow or maintain high credit scores.
iii) Ancillary card features and benefits
Ancillary benefits are secondary benefits that cover medical expenses in case you fall sick and have to stay at the hospital for days to recover from the illness. Such cards can cover transportation costs by ambulance, blood transfusion, surgical operations, and so on.
You can purchase medical coverage in conjunction with major medical coverage. Unfortunately, such cards are normally for those with high credit scores. Rarely do you find a second chance credit card with no security deposit having such benefits.
The benefits can either be voluntary or employer-contributory. The amount you pay depends on your capability. If an employer contributes on your behalf, then the amount varies with the salary you get. The higher the salary, the higher the contributions. It happens so because of the percentage used to deduct the ancillary.
It means that higher earners have more comprehensive coverage as compared to low earners. However, some medical coverage, and more so state-owned may have a flat rate contribution to the medical coverage.
How do zero balance transfer business credit cards work?
Zero balance transfer credit cards help you to reduce debts faster. The card does not need you to pay any interest to the transferred amount until the promotional period is over.
However, you have to use it wisely so that it can help in the process. The secret of benefiting from such a card is paying the dues as early as possible within 12-18 months. Never be late in your payments since the issuer may suspend the 0% rate. There are simple rules you should follow to benefit from zero balance transfer business credit cards. These include;
- Making timely payments
- Following the plan. Ensure you pay exactly what you agreed to pay each month.
- Do not apply for many cards as your scores can lower greatly due to hard inquiries. Also, getting a business checking account online with no ChexSystems for your card may be important although ChexSystems does not affect your credit scores.
How to choose the best zero balance transfer credit card
Sometimes you may find it hard to choose the best zero balance transfer credit card. However, it should not be an issue if you understand most of the features accompanying the cards.
The following tips will help you understand how you can choose the best zero balance transfer credit for your business.
1) Find the best no balance transfer fee card to match your needs
When applying for a zero balance transfer credit card, you already know your financial capabilities. Examine the available cards closely and determine which card you can afford payments per month and without delay. A longer introductory 0% interest period will be of great help.
Above all, remember to rush to complete the payments before the introductory period is over.
2) If you accept a balance transfer fee, keep it low
You may not be lucky to get a zero balance transfer fee credit card. At this point, consider getting the card with the lowest fees possible. If you get a card with a 3% or below transfer fees, then you are on the right path as you will be able to save a substantial amount of money.
3) Make payments on time
As I had mentioned earlier, your payment pattern will determine if you will continue with the 0% plan or not. Some companies may suspend the 0% introductory interest rate early if you pay your dues late. You may land an annual percentage rate (APR) as high as 25% or even higher. Remember the agreements you make with the card issuer are there to be followed by both you and the card issuer.
4) Stay on plan
If you agree with your card issuer to be paying a certain amount of money per month, do not pay less. Strive as much as possible to pay the exact amount agreed on the particular date. You have to work hard to ensure that you pay all the balance within the introductory period. By the time the introductory period is over, you should be through.
5) Read the fine print
Never enter into any agreement without reading the terms and conditions. You may sign something only to harm yourself. Ensure that you go through all the terms and conditions and abandon cards that have hard to meet requirements. Check the penalties that apply on late payments, the length of the 0% balance transfer, and the transfer limits. There is always the best for you.
6) Don’t use both cards simultaneously
While paying off your balance, stick to the zero balance transfer card no matter how enticing the old card is. You may still go back to the old card if you finish paying off your balance and still maintain the new card. Using the two cards will help you grow your credit scores to higher levels.
7) Understand how a new credit card affects your credit score
A new credit card can slightly affect your credit scores negatively. It means that you should not apply for multiple credit cards at a go as it will reduce your scores greatly. One card for your balance transfer may be enough to help you in the payment of your balance.
On the other hand, many credit cards can increase your credit scores with time if you use them well. Having many credit cards means that you spend little on each card and thus maintaining the 30% expenditure level per month.
The 9 best business credit cards
The following are some of the best credit cards you can have for your business.
1. U.S. Bank Business Platinum Card
The card has zero annual fees. However, it does not offer any bonus or rewards for new users. It has a 0% intro purchase APR for 15 billing cycles. The cash advance APR is 23.99%. The cash advance fee is $10 or 5% of the amount of each cash advance, whichever is greater. Also, the regular APR is 9.99% – 17.99% which is variable. The card has a 3% foreign transaction fee. See more
- $0 annual fees
- 0% intro purchase APR
- Low ongoing APR
- Foreign transaction fees
- No bonus and rewards
2. Wells Fargo Business Platinum Credit Card
Get $500 when you spend $5,000 in the first 3 months of getting the card. Also, the credit card gives you 1.5% cash back on all purchases or 1 point back on all purchases. Also, the card gives you 1,000 points or $10 cash back for any billing period after spending $1,000 or more.
Furthermore, get 10% bonus points when you redeem the points online. There are no limits on the number of cards you can earn. The points expire after three years. The Wells Fargo business platinum credit card annual fee is $0. Use the card for various transactions including the transfer of money to someone else’s bank account.
- 1.5% cash back
- $500 bonus
- 10% bonus points when you redeem the points online
- Zero annual fee
- No limits on points to earn
- Points expire after three years
3. American Express Blue Business Cash™ Card
The card has zero annual fees. Furthermore, it has a 0% intro APR for 12 months on all purchases from the date of opening your account. Also, the card has a 13.24% – 19.24% Variable APR. it requires good to excellent credit scores and thus bad credit score holders are out.
Again, the card gives you a 2% cashback on the first $50,000 in purchases every year, and 1% afterward whereby the cashback is automatically credited to your statement. See more
- Zero annual fees
- 0% intro APR for 12 months
- Not suitable for bad credit holders
4. US Bank Business Cash Rewards World Elite™ Mastercard®
The card has a zero annual fee. Get 3% cashback on gas, cellphone, and office supplies using this card? Also, you get 1% cashback on the general purchases you make with the card. Furthermore, you get a 25% yearly bonus of the previous year’s cash rewards up to $250.
Again, you get $500 if you spend $4,500 in the first 150 days of account opening. The APR is 11.99-22.99%* (variable). Interestingly, you can redeem points as bank deposits and there is no limit on the number of points you can earn. Unfortunately, the card has a $25 redemption threshold. See more
- Zero annual fee
- No limit on the points to earn
- Can redeem points as bank deposits
- Intro bonus
- Has a $25 redemption threshold
5. Ink Business Preferred℠ Credit Card
The card allows you to earn 100,000 bonus points when you spend $15,000 on purchases in the first 3 months of account opening. The card has a regular APR of 15.99% – 20.99% variable and an annual fee of $95. It requires good to excellent credit scores.
Furthermore, you will be able to earn 3 points per $1 on the first $150,000 you spent on travel expenses and select business categories for each account anniversary year. You will also earn 1 point per $1 on all other purchases you make with the card. It has fraud protection, purchase protection, and personalized account alerts. See more
- Earns you a bonus
- High rewards
- Fraud protection
- Purchase protection
- Personalized account alerts
- High annual fee
- Not suitable for bad credit
6. Marriott Bonvoy Business™American Express® Card
The card has an annual fee of $125. The Regular APR is 5.74% – 24.74% which is variable. You will also be able to earn 6X points for each $1 you spent by participating in Marriott Bonvoy hotels. You will also earn 4X points at U.S. gas stations, U.S. restaurants, and wireless telephone services from U.S. carriers, and U.S. purchases for shipping.
Moreover, you will earn 2X points everywhere else. The cash advance fee is $5 or 3% of the amount to transfer, whichever is greater. The credit score needed is good to excellent. The card issuer gives you a bonus every year on the card’s anniversary. See more
- Great points rewards
- Little cash advance fee
- Anniversary bonus
- Not suitable for bad credit
- Annual fees
7. United℠ Business Card
Get the card and benefit from 60,000 bonus miles upon spending $3,000 on all purchases within the first 3 months of opening your account. It has a $99 annual fee. Furthermore, the card has a Regular APR of 16.49% – 23.49% which is variable. The balance transfer fee is $5 or 5% of the amount to transfer, whichever is greater. The cash advance APR is 24.99%.
Besides, you get 2 miles per $1 on USA purchases, gas stations, restaurants, eligible local transit, and office supply stores. Furthermore, get 1 mile per $1 spent on other purchases. Interestingly, you get a 5,000 mile as a loyalty anniversary bonus. Use the card to transfer money using the routing number and account number among others. See more
- Loyalty anniversary points
- Huge rewards
- Low balance transfer fees
- Annual fee
8. Capital One Spark Cash for Business
Upon getting this card, you will earn $500 when you spend $4,500 in the first 3 months of account opening. Also, enjoy $0 annual fees for the first year, then $95 for the following years. Also, you will be able to earn 2% cashback for your business on every purchase you make anywhere with the card. The card has no standard balance transfer fee.
Again, the cash advance APR is 26.99%. Moreover, the cash advance fee is $10 or 3% of the amount of each amount, whichever is greater. The card requires good and excellent credit scores. See more
- Intro bonus
- Great reward system
- Zero annual fees for the first year
- Card not suitable for bad credit
9. Delta SkyMiles® Platinum Business American Express Card
The card earns you 3 miles on every dollar you spent on all eligible purchases you make directly with the card as well as on every eligible dollar you spent on purchases you make directly in hotels. With the card, you will also be able to earn 1.5 miles per dollar on eligible purchases of $5,000 or more.
Furthermore, the card has an annual fee of $250. The Regular APR is 15.74% – 24.74% variable. There is no intro Purchase APR. See more
- Earns you miles
- No intro Purchase APR
- High annual fees
Frequently Asked Questions
Can business cards be used for personal expenses?
No. The business credit cards are mainly for business transactions. Mostly, terms and conditions do not allow you to a business card for personal expenditure. Also, it is not wise to mix personal expenditure with business expenditure. By doing so, you will not be able to account for your business performance. It thus calls for a separate credit card for your expenses.
Can a personal credit card be used for a business?
Even though the IRS considers a separate credit card for business expenses, you may use your card for business expenses. However, this can confuse accounting for your business transactions. Calculating taxation may also prove difficult and you may end up paying more to the taxman. Get a separate business credit card to avoid such inconveniences.
How do small businesses use business credit cards?
Business credit cards help businesses to manage cash flows. With a business account, you can have all the payments channeled into the account instead of receiving cash. Also, business credit cards help you as a business owner to borrow funds to expand your operations. The better you use the card, the more you gain higher limits.
How do business and consumer credit cards differ?
The cards have several differences. First, business credit cards require business-related usage while consumer credit cards can be used for either personal or business transactions. Furthermore, business credit cards have higher credit limits while consumer credit cards have lower limits. Moreover, business credit cards help to build the credit history of your business. Consumer credit cards only build a personal credit history.
Zero balance transfer business credit cards are a great deal if you have a business and would like to save on the debt. Paying your debt within the 0% introductory period ensures that you are not caught up with time.
Also, never be late for payments since your card issuer may terminate the 0% balance transfer for your card. Always have a separate credit card for your business so that you can account for the business transactions.