Business cards come with many advantages for those who are self-employed or have their own companies. Many of these credit cards provide generous rewards for common business expenses and other perks.
But did you know that business cards could actually sometimes help you pay down other high-interest credit card debt? For example, if you sign up for a business credit card with a 0% balance transfer offer, you could transfer a balance from an old credit card to the new card and pay no interest for a limited amount of time.
If you have credit card debt and are currently paying a lot of interest on it, reducing your rate to 0% for a period of time could allow more of your money to go to the principal — making debt payment much more affordable. But you need to find the right business card with a good balance transfer offer for this technique to work.
Why use a balance transfer card?
Many small companies accumulate debt, especially when first getting started. Unfortunately, if that debt is on credit cards, the interest rate is often very high. This can make repaying what you owe a challenge because much of your monthly payment will go to interest costs.
With a balance transfer card, you can move the balance of high-interest credit cards over to your new business card. If you get a 0% rate for a limited time, you’ll have months — or more than a year, in some cases — to pay off the card with no interest. With none of your payment going to cover interest costs, you can pay off your debt much more quickly.
But not all business cards are good for balance transfers. If your goal is to transfer the balance from high-interest cards to reduce the cost of debt repayment, consider a business card offering:
- A 0% introductory rate for as long as possible
- Low or no fees to transfer the balance to your new business card
- A high-enough credit limit to transfer the full balances owed
- A low annual fee or no annual fee so your interest savings isn’t taken up by other costs
- A generous rewards program if you plan to spend on the card
You’ll likely also need to look for a business card from a credit card issuer that’s different from the bank or institution that issued the card you have a balance on. That’s because there are often restrictions preventing you from transferring balances between cards at the same bank or financial institution.
Best business cards if you need a long introductory APR period
When choosing the best balance transfer card, you’ll want to find the card best suited to your specific needs.
If you owe a lot of money and it’s going to take you a while to pay off the transferred balance, you likely want to look for the longest introductory APR, or annual percentage rate, period possible. It will be a lot easier to pay off a big balance in full if you have 12 months or more with no interest costs.
If you need a business card with the longest 0% APR period possible, here are our top picks:
|U.S. Bank Business Platinum Card||This card is very affordable with a 0% introductory rate on both purchases and balance transfers. There’s no annual fee, but it does charge foreign transaction fees and no rewards program is offered.
Annual fee: $0
|PNC Visa Business
|The PNC Visa Business Credit Card charges no annual fee and makes it easy to monitor employee spending by reviewing employee transactions and setting individual spending limits.
Annual fee: $0
Best balance transfer business cards if you want rewards
When you open a business card to transfer a balance, you may also want to pick a card that rewards you for spending, too. Prioritizing rewards makes sense if you plan to use the card for other purposes besides just paying down debt. Our picks for the best business credit cards that offer rewards include the following:
|Wells Fargo Business Platinum Credit Card||With a generous sign-up bonus plus 1.5% cash back per dollar spent, or earn 1 point per dollar spent and receive 1,000 bonus points each month you spend more than $1,000, this is an affordable card with great rewards. You can also get up to 99 employee cards for free.
Annual fee: $0
|PNC points Visa Business Credit Card||The PNC Visa Business Credit Card not only offers a 0% introductory APR on purchases and balance transfers, but you can also earn five points for every dollar spent on qualifying purchases. Points can be redeemed for gift cards, travel, cash back, and other items.
Annual fee: $0
What to do after you transfer your balance
Once you’ve picked the best business balance transfer card and have moved your debt over, it’s important to make a plan to deal with the transferred amount.
The key is to pay off the transferred balance before the 0% APR expires so you don’t get stuck paying interest at the card’s standard rate later. Figure out how much you need to pay each month to get your balance paid down before the 0% rate expires and commit to making those payments faithfully. You may even consider setting up automatic monthly payments so you stay on schedule.
You should also be careful about making other purchases on your balance transfer card. Buying additional things on the card could make it harder to ensure your payments are being properly applied to reducing your transferred debt. If you get deeper into debt by charging new purchases on your card, this could also leave you with less money to ensure you pay off your balance before the 0% rate ends.
Research your business balance transfer card options
As you can see, you have several options for a business credit card with a 0% balance transfer offer. You should research each card carefully to see which one is right for you. When you pick the right card, you’ll make debt paydown easier and could perhaps even enjoy some other benefits, such as earning rewards for being a cardmember.