Credit cards are now the top pick not only for consumers, but many American businesses are also taking advantage of them. You can find plenty of different options for credit cards from multiple issuers. Credit card issuers offer a charm to companies that lure them towards these cards.
And that is cashback rewards. Plumbers often have to run towards the hardware shop to grab the parts to fix the issue. They might also have to travel to different places, which mean they have to pay for gas. Therefore, they should choose business credit cards to earn rewards for such transactions.
However, it is best to get the optimal business card for your plumbing business. It will avoid putting burden on your business finances and ensure you reap complete benefits from these cards. Here are some things you should consider to pick the best one.
1. Go Through the Terms and Conditions
The most important thing to keep in mind is that you must go through the terms and conditions before signing up for a credit card. There were approximately 1.1 billion credit cards in the US in 2018.
However, a majority of them don't heed the terms and conditions. Therefore, before choosing a credit card for your business, you need to pay attention to the following things.
Caps or Limitation on the Rewards
It is imperative to find out about the rewards caps of the credit card you are choosing. You will come across business cards that have a spending cap. It implies that you will only get a cashback portion if you spend as per the limit set.
Expiry Dates for the Rewards
Another vital factor to consider when choosing to go for a credit card is the expiry date on the rewards. Usually, most card issuers don't keep any expiration for the rewards.
However, there is a chance that they will apply it directly to you as soon as your statement gets the credit. Nevertheless, you should check or ask your card issuer if the rewards have any expiry date to be on the safe side.
Yearly Fees or Charges
Most credit cards don't have any yearly charges that the businesses have to bear. However, a few credit cards can charge an annual fee for using their services. It is better to discuss it beforehand with the card issuer to avoid confusion later.
Ways to Redeem Your Rewards
Credit cards have different ways the cardholders can redeem their points or miles. So, you should go through the terms and conditions regarding the redemption of your reward points. Ideally, it is best to choose the one which aligns with your plumbing company's requirements.
For instance, if you have to travel a lot due to work purposes, consider getting a credit card with better rewards on tickets or hotel stays. Or, if you want to give your plumbers a gift card through the rewards, you can pick the card which enables you to use your points for this purpose.
2. Pick a Credit Card for Business That Suits Your Spending Patterns
The main reason why many plumbers or plumbing businesses opt to get a credit card is to keep their liquidity position good. Their purpose of using a credit card is to buy inventory, tools, equipment, and other stuff necessary to fix the issues with their clients' drainage system.
So, if you can find out about the areas where you are spending the most, pick a credit card that will give the most rewards when purchasing such items. Credit cards offer different percentages of discounts if you spend on an item in a particular category.
For instance, if you are spending more on transportation or hardware stores, you can consider picking a card with bonus spending on those categories. It will help you earn points or miles on the purchases your business is already making.
If your business does not have any particular area where it spends more, you will be better off choosing a flat-rate card. The flat-rate credit card for business gives you the same rewards in all the areas you use for making payments.
3. Look at the Additional Benefits it Offers
Besides rewards and an additional credit line, business credit cards also give many more benefits to their cardholders. For instance, credit card holders can get unique financing offers, extended warranties, and other things.
The hyper-competitive market makes it imperative for card issuers to give additional benefits to attract more customers. So, before taking a credit card, you can check if the card issuers offer you the following benefits or not.
Complete Tracking and Management System
Business cards allow you to track all the expenses you make throughout the year. It makes it easier for plumbing businesses to know about their spending limits, make payments on time, and other benefits. So, check if the card you are about to choose offers you a management system.
Sign Up Bonuses
Many credit cards also give your business a sign-up bonus, such as into 0% annual percentage rate on buying items and much more. The intro period allows you to carry a balance without paying any interest on the amount.
It makes such credit cards ideal payment methods for expensive tools or equipment for your plumbing business. Therefore, you should check the different credit cards and compare them for the best sign-up bonuses and offers.
If you have massive spending due to your large-scale plumbing operations, you can look for a card that gives you premium perks. Even if you don't spend too much on items for your business, you can choose the premium business cards that many card issuers offer. However, they will have a high annual fee.
While having a credit card is vital, you can ignore the significance of a debit card. So, if you can find unprecedented rewards and benefits from your debit card, it can do wonders for your business.
And VERGO is the best debit card you can get since it has all the features to cater to the needs of the business in the construction sector. So, check out the exceptional benefits by taking one.
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