Business balance credit cards transfer the debt or the balance from one credit card to another. Individuals normally opt for these cards when their current card charges a higher interest rate than the card they want to transfer their balance. Therefore, after transferring the balance to the new card they can pay off their debt with lower interest rates.
Some Basic Facts about Business Balance Transfer Credit Cards
Before you transfer the balance to another card, you might have to pay a transferring fee that could be between 3% – 5% of the total amount you transfer. Additionally, if your new card does not have a high spending limit, there is a chance you cannot shift your whole balance to a new business transfer card. If your current card and new transferring card have the same bank, then sadly you cannot shift your balance to the new card.
For a small business owner, it is common to think whether you can transfer your personal credit card debt to a business card. well, the answer of course you can.
How can business balance transfer credit cards work for you in a better way?
You can avail your business balance transfer credit cards best if you do the following:
1. Research Well Before You Select Your Business Balance Transfer Credit Cards
Before you opt for any balance transfer credit card, take your time to explore the different options that different business transfer cards offer. Despite having good credit scores, you should choose the card that is according to your needs. So begin with looking at low-interest balance transfer credit cards or free balance transfer credit cards. Additionally, keenly observe the fees and rules of each card for transferring the balance. If you are thinking of utilizing the new transfer card permanently, also look for the Pros and rewards they offer.
2. Think Hard Before Applying for a Business Balance Transfer Credit Card
It is important to remember that it is not always 100% guaranteed that you will qualify for your balance transfer. Therefore, before applying for a transfer card, consider choosing the card that matches your credit scores. So this increases your chances of getting approved. Just in case you do not get approved, you can look for other cards. Or, you can put more efforts into boosting your credit scores before applying again.
3. Be Very Much Vigilant When You Start the Transfer
After getting approved, you can begin the transfer. But remember that there could be just a few chances for getting an introductory 0% APR. The transfer could have two options. One is electronic and the other can be with the cheque. Normally, a business balance transfer credit card company sends the cheque-book through the mail. After receiving that, keenly read the terms and details about how to start the balance transfer.
Limitations of Business Balance Transfer Credit Cards to Remember
- You can only shift the debt of balance that is within the limit of the new card. If in any case, your debt is more than the limit of the new card, you won’t be able to shift the full balance.
- You cannot shift the balance within the same bank.
- If you’re not consistent with your payments, you could end up with a substantial balance after the promotional period.
Something about the Balance Transfer Fees
Balancing fees usually depend on the card contributor’s terms. Normally for all cards, fees are between 3-5% of the total amount we transfer. Before transferring any balance to a new credit card, keenly check the applicable fees.
Best business balance transfer credit cards
Though there are a number of business balance transfer credit cards with their respective pros and cons, here are some of the best ones for you to consider.
1. U.S. Bank Business Platinum Card
If you want to manage your debt with a minimum interest rate, the U.S. Bank Business Platinum Card offers the solution. This is because it offers a low introductory APR for buying and balance shifting.
| Details | |
|---|---|
| Welcome bonus | No |
| Credit Score | (700 – 749) |
| Credit limit | Normally, $5,000 to $35,000 |
| 0% (APR) | Enjoy 0% APR for 18 billing cycles on purchases and balance transfers, with a variable APR of 17.24% – 26.24% thereafter |
| Low Annual Fee | No annual fee for cardholders and their employees |
| Dedicated Service | Access to domestic customer service around the clock |
| Visa Spend Clarity | Efficient expense tracking with Visa Spend Clarity |
| Mobile Payments | Secure, quick purchases using Apple Pay, Google Pay, or Samsung Pay |
| Enhanced Security | Protection against fraud with zero liability and chip technology |
| ExtendPay® Plan | Divide purchases into monthly payments with no interest, for a small fee |
2. PNC Visa® Business Credit Card
If you want to explore another offer of 0% APR with a minimum current APR for maintaining the balance, you can opt for a PNC Visa® Business Credit Card. But you won’t be earning any rewards with this card.
| Details | |
|---|---|
| Annual Fee | None |
| Balance Transfer Fee | Either $5 or 3% of the amount of each balance transfer, whichever is greater |
| Cash Advance Fee | Either $10 or 4% of the amount of each cash advance, whichever is greater; $75 maximum |
| Late Payment Fee | Up to $39 |
| Over Credit Limit Fee | Over Credit Limit Fee |
| Introductory Balance Transfer APR | – 0% APR for the first 13 billing cycles following account opening on Balance Transfers when transferred within the first 90 days following account opening. – After the introductory period, a variable APR of 15.24% – 25.24% will apply, varying with the market based on the prime rate. |
| Purchase and Balance Transfer APR | 15.24% – 25.24% Variable APR, which will vary with the market based on the prime rate |
| Cash Advances APR | 27.24% Variable APR, subject to variation with the market based on the prime rate |
| Penalty APR | 34.24% Variable APR, subject to variation with the market based on the prime rate |
Additionally, the benefits include:
- Introductory 0% Annual Percentage Rate (APR) on Balance Transfers for the first 13 billing cycles following account opening when transferred within the first 90 days following account opening.
- Keep personal and business purchases separate
- Online Account Management
3. State Farm Business Cash Rewards Visa Signature® Card
With this card, you can earn amazing rewards of up to $4,000 per year on insurance covers. Additionally, it is easy to use like the Rooms To Go Credit Card. You can even get 3% cash back by spending money on things like buying furniture, gas, and household utensils.
This card also offers purchase protection.
| Details | |
|---|---|
| 3% cash back on | Up to $4,000 spent annually on Insurance premiums |
| 3% cash back on | – Gas stations and electric vehicle charging stations – Cell phone service providers – Office supply stores – Dining |
| 1% cash back on | Other eligible purchases |
| 0% Intro APR | – Receive a 0% Introductory APR* for 12 billing cycles on purchases and balance transfers – After that, a variable APR, currently 19.24% – 28.24% |
| No annual fee | Enjoy all benefits with no annual fee or foreign transaction fees |
| Auto deductible reimbursement | Get reimbursed up to $200 of your auto policy deductible when you experience a covered loss, if you make a minimum of 8 net purchases in the prior month |
| $100 software credit | Receive a $100 credit to your account after 11 consecutive months of eligible software service subscription purchases |
Business Balance Transfer Credit Card Alternatives
What to do if you don’t get approved for a balance transfer? Well, there are some alternatives to business balance transfer credit cards that you can go with.
1. An Unsecured Personal Loan
If you want to reimburse your credit card payment, you can consider an Unsecured Personal Loan. If you are not in a position to manage your debt even after transferring the balance to another card, an unsecured personal loan could help. But It’s not as good as a balance transfer because its interest rate is usually higher. Visit a bank or credit union if you want to apply for it.
3. Secured Personal Loan
Another way of paying your debt is using a personal loan. It is similar to an unsecured loan. For this loan, the condition is you have to offer the bank of loan provider something valuable like your car, or home as an assurance. In case you won’t be able to pay the loan back, they will end up having the collateral for themselves. Its APR for the loan is normally lower than that of an unsecured personal loan.
4. Improve credit
Another way is spending more time improving credit and applying for a business balance transfer credit card. With this approach, you can have higher chances of getting approved and having lower interest rates
Conclusions
If you want to pay your personal credit card debt with a lower interest rate, shifting it to business balance transfer credit cards could give you many benefits. Utilizing a transfer credit card, you can shift the balance to a new one that provides a lower APR.