Best 0% APR Business Credit Cards
A business credit card can make it easier to manage your business expenses and help grow your business, but with the right card, you may even be able to save money. That’s often the case with 0% APR business credit cards, which allow small business owners to make essential purchases or pay down your debt over time without accumulating interest.
How do 0% APR business credit cards work?
It’s important to understand how 0% APR credit card offers work. Card Issuers typically offer 0% interest for a limited period of time: 6 – 18 months is typical. After that introductory period ends, the interest rate will revert to a higher variable rate APR. Any remaining balance, as well as new purchases, will accrue interest at that new rate.
What to keep in mind with 0% APR intro offers
Make sure you understand the terms of the offer to make an informed decision.
- Some 0% offers apply to new purchases, some apply to balance transfers, and some apply to both.
- In the case of balance transfers, there will be a one-time balance transfer fee, usually ranging from 3-5% of the amount transferred.
How to get the most value out of a 0% APR business credit card
Since the best way to take advantage of an introductory APR offer is to pay off the total balance by the end of the promotional period, it’s important to factor in the length of the promotional period, your spending needs, and your monthly budget.
For example, a $5,000 purchase on a card with a 9-month 0% APR offer would require a monthly payment of at least $556, while the same purchase, when made on a card with a 12-month 0% APR offer would result in a monthly payment of $417.
Ideally you’ll want to pay that balance off before the 0% offer expires. A good strategy is to set up automatic payments for the monthly payment that will pay it off in that period of time.
Is a 0% APR business credit card right for you?
There are a variety of factors to consider when choosing a small business credit card, and the interest rate is just one of those. Ultimately you want to choose a card (or two) that best fits your business needs. If your goal is to maximize rewards, for example, you may want to look for a rewards credit card with excellent sign-up bonuses or welcome offers.
That said, there’s no reason why you can’t consider a rewards credit card for everyday purchases you’ll pay off in full, and a separate low-rate credit card for times when you need to carry a balance and pay over time. There are rewards cards that offer business owners unlimited cash back, and additional bonuses for business purchases from gas stations, office supply stores and from phone service providers.
You’ll also want to understand how your credit history will impact the cards you can get. Most issuers (of both personal credit cards and small business credit cards) will check the applicant’s personal credit score to determine creditworthiness. (Note that if you provide your social security number on the application, it’s likely there will be a personal credit check.)
If you have what’s considered average or fair credit, you may find it’s harder to find a 0% APR business credit card, but it’s worth checking reviewing business cards designed for borrowers with fair credit.A few issuers check business credit instead of personal credit, so if you have poor credit but strong revenues and business credit, you may want to look into one of those cards instead. These cards may require your business to be incorporated and you should get an Employer Identification Number before you apply.
Best 0% APR Business Credit Cards
Here are some business credit cards offering intro 0% APRs:
1.
- annual fee
- Rewards points
American Express offers business owners a slew of business credit cards, many with top-rated rewards programs, but few come with a 0% APR offer. The offers new users an intro APR of ( after that) and there is annual fee.
If you don’t want to be pinned down by category limits and plan to spend less than or close to $50,000, this card can provide the financing window you need alongside a solid rewards rate.
2.
- annual fee
- Rewards points
Not interest in cash back? Prefer to earn points for travel and take advantage of a 0% intro APR offer? You may want to consider the .
With this card, you can expect APR of ( after that), and with the online offer you can earn
On an ongoing basis, the rewards rate is a solid
The is a great option for Bank of America customers who also want to take advantage of a travel rewards program.
3. American Express Blue Business Cash Card
- Intro APR of
- Annual Fee
- Cash Back Rewards
If you’re interested in receiving 0% APR financing while earning cash back rewards, then the American Express Blue Business Cash could be one of the best business credit cards for you. This card offers new applicants an APR of . After that, the regular APR of will apply to any remaining balance.
Welcome offer: Regular rewards rate: There’s $0 annual fee for this card, but it does have foreign transaction fees of
4. Bank of America Platinum Plus® Mastercard® Business card
- Annual Fee
Bank of America customers will love this opportunity to receive a . And while this card doesn’t offer rewards for spending, it does feature a welcome offer:
Features include cash flow management tools and integration with the Bank of America mobile app. There’s annual fee for this card.
How to Qualify for a 0% APR Business Credit Card?
Qualifying for a business credit card with 0% APR financing is much like qualifying for other small business cards. With most business cards, you’ll rely on your personal credit history, credit score and guarantee of repayment. But with 0% APR business cards, you’ll need to have good or excellent credit to apply, these offers are created to attract the most qualified applicants.
What does 0% APR really mean?
APR stands for Annual Percentage Rate, and it’s the most common way of measuring and comparing interest rates for credit cards and other types of loans. Having a 0% APR rate means that interest charges won’t accrue on that particular balance for a limited period of time. Once the 0% APR promotional rate expires, the standard rate will apply to any remaining unpaid balance.
Also note that 0% APR promotional rate may apply to new purchases, balance transfers or both. Otherwise, you’ll still incur interest at the standard rate on other balances.
0% APR business credit cards vs. small business loans
A business credit card may be an excellent choice for short-term financing for your business. But if you need longer term financing, or a large amount of financing, you may be better off considering other small business loans. There are many options, but two of the most popular include:
A line of credit is similar to a credit card in that you only borrow the amount you need, when you need it. Some lines of credit offer interest-only payments for several years (during the “draw period,”) followed by a period of time where you repay the debt.
A term loan offers a fixed amount of money with a specific repayment schedule. You may have a longer time to repay the loan than with a line of credit. Payments may be larger than your required credit card payment, but you won’t stretch out the debt for decades the way you can if you just make the minimum payment on a credit card.
