Updated: October 10, 2024
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Looking to alleviate your business's financial burdens and streamline your expenses? You're on the right track by considering the best business cards for balance transfers. These financial tools can offer you the ease of consolidating your debts into a single payment, often with appealing terms like a 0% APR balance transfer period. Typically, the best cards for business balance transfers let you earn rewards or get cash back and come with generous welcome bonuses.
Why You Can Trust Our List
To ensure that we provide our readers with the most accurate and up-to-date information, experts at MoneyGeek collect 57 data points from different sources, such as the Consumer Financial Protection Bureau, card issuer websites and our various partners. We rely on our unique in-house ranking methodology to select the best business credit cards. Our model assigns specific percentages to different parameters such as the annual fee, welcome offer, rewards rates, APR, foreign transaction fees and more.
Moneygeek.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Moneygeek.com credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.
Balance transfer credit cards for business owners provide easy access to financing with no interest. These offers can help you manage your cash flow during seasonally slow periods or as you expand your business to take advantage of new opportunities. — Lee Huffman, credit card expert at BaldThoughts.com
In the simplest terms, a business card for balance transfer is a credit card designed to help you consolidate your business debts from several credit cards into one. This way, instead of juggling multiple payments, you only need to focus on one single payment, possibly benefiting from lower interest rates in the process.
Essentially, you're using one credit card to pay off others. It's a strategic move that can offer financial relief, especially when you opt for a business credit card with a 0% APR balance transfer promo. This means you enjoy a period where no interest is charged on the transferred amount, allowing your business to save considerably on interest fees while simplifying your financial management.
This strategy doesn't just aid in financial management; it's a step towards smart financial health, offering a pathway to reduced debt and a more organized approach to business finances.
Understanding the workings of business balance transfer cards is essential in utilizing them to your advantage. Let's break down the step-by-step process:
Begin with identifying the best business credit cards for balance transfers. Look for cards with low or zero balance transfer fees and favorable APR terms to make the most out of the transfer.
Next, apply for your chosen business credit card balance transfer. Like any other credit card application, this process involves a credit check and other financial assessments to determine your eligibility.
After approval, you’ll provide details of your existing credit card debts to your new creditor. This is where you specify the amounts you wish to transfer from each card.
The new credit card company takes over from here, initiating the transfer process. It's essential to continue making minimum payments on your old cards until you receive confirmation that the transfers have been successfully completed.
Many 0% APR balance transfers come with an introductory period where no interest is charged on the transferred balance. Depending on your card, this can last from six to 18 months. Make a plan to pay down the debt significantly during this period to reap the full benefits.
Once the introductory period ends, a standard APR will apply. Maintain a steady repayment pace, aiming to pay more than the minimum required to avoid piling up interest and steadily reduce your business debt.
As you mull over the decision to opt for a business card for balance transfer, weighing the pros and cons is a critical step. Let's break down the potential benefits and downsides.
When it's time to choose the right business credit card for balance transfers, there are several key features and terms to keep in mind, including:
Introductory APR
If possible, secure a card offering a 0% balance transfer business credit card introductory period. This perk means you're not charged any interest on your transferred balances during the introductory period, providing you with the opportunity to reduce your debt substantially without the burden of accruing interest.
Reasonable balance transfer fees
While aiming for savings, it’s essential to consider the balance transfer fees that come with different cards. Finding a card with lower fees will help in maximizing your savings during the debt repayment process.
Generous credit limit
Look for a business credit card that offers a generous credit limit. This ensures that you can transfer all or a substantial part of your existing debts onto the new card, making the process truly beneficial.
Reward programs and other perks
Aside from the primary function of debt consolidation, some of the best business balance transfer credit cards offer enticing rewards programs and other benefits. Whether it's cash back, travel rewards or discounts with partner merchants, these perks can add substantial value to your business.
Good customer service
Quality customer service can be a lifesaver when dealing with financial products. Opt for a card issuer known for excellent customer service to assist you efficiently through any challenges that may arise during the balance transfer process.
When looking for the best business balance transfer card, keep an eye out for features such as low balance transfer fees, enticing reward programs and a reasonable APR period.
Before making your choice, make sure to compare various options and see how they align with your business goals and financial strategies. Start by listing down your top priorities and then assess how well each card can help meet each of these needs.
When it comes to choosing the best business cards for balance transfer, we know that you might have quite a few questions. We've compiled a list of frequently asked questions to help you get all the information you need.
A business card for balance transfer allows you to move the existing balance from one or more business credit cards to a new card, often with a lower interest rate. This can be a smart strategy to reduce your debt faster, as you can take advantage of a 0% APR period offered by the new card. Balance transfers are designed to help businesses manage their credit card debt more efficiently at a potentially lower cost.
The introductory APR period is a limited time frame where a 0% percent interest rate is applied to the transferred balance. This period, which usually lasts from six to 18 months, provides a window of opportunity for businesses to pay down their debt without incurring high interest charges. It's important to note that any balance remaining after this period will be subject to the card's standard APR.
Yes, most business credit card balance transfers involve a fee, which is a percentage of the amount being transferred, typically ranging from 3% to 5%. It's always a wise decision to calculate the potential savings from the lower interest rate against any balance transfer fees to ensure the transfer is financially beneficial. Additionally, being aware of any other potential fees, such as annual fees, can help in choosing the best card for your needs.
Absolutely, many business credit cards for balance transfer allow you to consolidate balances from multiple cards into one. This helps in managing your debts more conveniently under a single account while benefiting from the 0% introductory APR.
Initiating a balance transfer can have both positive and negative impacts on your credit score. On one hand, consolidating your debts can improve your credit utilization ratio, which is favorable for your credit score. On the other hand, applying for a new card involves a hard inquiry on your credit report, which can temporarily lower your credit score.
If you find that the introductory period is coming to an end and you still have a considerable balance to pay off, it may be worth considering another balance transfer to a new card with favorable terms. Alternatively, reach out to your card issuer to discuss potential solutions or seek advice from a financial advisor to strategize on the best way forward. It's always best to avoid missing payments, as this can negatively impact your credit score.
About Doug Milnes, CFA
Doug Milnes is a CFA charter holder with over 10 years of experience in corporate finance and the Head of Credit Cards at MoneyGeek. Formerly, he performed valuations for Duff and Phelps and financial planning and analysis for various companies. His analysis has been cited by U.S. News and World Report, The Hill, the Los Angeles Times, The New York Times and many other outlets.
Milnes holds a master’s degree in data science from Northwestern University. He geeks out on helping people feel on top of their credit card use, from managing debt to optimizing rewards.
