Is it possible to secure a business credit card that doesn’t charge interest?
Although we have yet to find a credit card that is void of interest charges, we can share a collection of excellent business credit credit cards that offer special introductory 0% APR Periods that serve the purpose well.
These 0% APR business credit cards allow you to save significantly when transferring high interest credit card balances or making purchases and repaying this debt over time. And best of all, these credit cards do it interest free.
Table of Contents
- The 4 Best Business Cards (with 0% Intro APR)
- 3 Reasons Why Small Business Owners Choose 0% Intro APR Card’s
- How Much Can You Really Save With a 0% APR Credit Card?
- Solidify the Savings of an Introductory 0% APR Period by Following the Rules
- Final Thoughts
The 4 Best Business Cards (with 0% Intro APR)
Best Chase Business Cards
|Chase Business Card||Benefits & Info|
|Ink Business Cash℠ Credit Card|
|Ink Business Unlimited℠ Credit Card|
Having a no-annual-fee business credit card such as the Chase Ink Business Cash℠ Card that earns up to 5% cash back (or Chase Ultimate Rewards Points) on common business expense categories is a positive for your business bottom line.
If you’re a busy business owner who doesn’t want to keep track of bonus spending categories, you’ll fare well with the Chase Ink Business Unlimited℠ Card that rewards every purchase you make with 1.5% cash back. That’s cash back that can go directly back into your business.
We like the fact that neither of these business credit cards charges an annual fee and both offer generous cash-back sign up bonuses after initial spending requirements.
Add in the benefits of 0% APR periods for purchases/balance transfers and you’ll find that either card will add value to your business operation.
Best American Express Business Cards
|Amex Business Card||Benefits & Info|
|The Blue Business® Plus Credit Card from American Express|
|American Express® Blue Business Cash Card|
We like these American Express business credit cards because they offer some of the best 0% APR period benefits out there and neither card charges an annual fee.
The Blue Business℠ Plus Credit Card from American Express comes with a strong 0% APR offer valid for a repayment period of 15 months for both purchases and balance transfers.
In addition, it delivers earning simplicity with 2 Membership Rewards Points for every dollar spent on the card.
American Express® Blue Business Cash Card is strong on the earnings side with earning 2% cash back on all eligible purchases on up to $50,000 per calendar year, then 1%.
The 0% APR period is for purchases and balance transfers for 12 months.
Whether you select cash back or points, either of these American Express business credit cards can bring savings to your business with their 0% APR offers.
3 Reasons Why Small Business Owners Choose 0% Intro APR Card’s
Businesses have unique financial needs and a 0% APR credit card, when utilized effectively, can help finance start-up costs, eliminate interest charges on debt, and level out the cash flow during seasonal down time.
- To Finance Business Start-up Costs – Starting a business results in a lot of expenses that come at you all at once. A 0% APR period allows you to make these purchases during the 0% APR period and repay that debt over time without incurring interest charges.
- To Transfer High-Interest Debt – Perhaps you put all of those start up expenses on a high-interest credit card and are now paying it off while incurring those charges. A 0% APR credit card facilitates you transferring that high-interest debt and paying it off during the 0% APR period without interest.
- For Seasonal Leverage – If your business is seasonal, having a 0% APR credit card that you can use to make purchases, even when cash flow is down, can keep the operation running smoothly and not add interest charges that reduce your bottom line.
How Much Can You Really Save With a 0% APR Credit Card?
The most compelling reason to secure a 0% APR credit card is to avoid paying interest on purchases or high-interest credit card debt but is getting such a card worth the effort?
We’ll take a look at a simple example that illustrates the potential savings.
In our example, $10,000 in purchases paid off over 15 months at 24% interest incurs nearly $1674 in interest charges.
By making those same purchases on a 0% APR credit card and paying the balance off over the same 15 month period, that is approximately how much you would save.
Similar savings hold true, depending on the interest rate charged, when you are paying off $10,000 on a high interest credit card over a 15 month period.
This example is for illustrative purposes only as credit cards can use different interest calculation methods and interest rates will vary.
You’ll also want to factor any balance transfer fees into the savings equations as they typically run 3%-5% of the amount transferred.
Solidify the Savings of an Introductory 0% APR Period by Following the Rules
A word of caution when utilizing a 0% APR Period as making a late payment or not paying off the balance before the 0% APR period expires has consequences.
Missing a payment or making a late payment may cause penalty or normal interest rates to kick in so you’ll want to be diligent, even set up automatic payments on your card.
Failure to pay off the transferred balance by the deadline will also result in interest charges. Either situation will negate any benefit you’ve derived from using the 0% APR period to help your business bottom line.
Selecting a business credit card with an introductory 0% APR period can save your business precious operating dollars. Earning rewards while you make this productive business financial decision is an additional bonus.