Tips To Avoid Interest on Small Business Credit Cards
Starting a business can be an exciting and rewarding experience, but it often requires a significant investment of time and money. Many entrepreneurs turn to credit cards as a way to finance their startup costs. However, the interest rates on most credit cards can quickly add up and lead to long-term debt. One way to avoid this is to use a no-interest credit card to fund your business. Enjoy these tips from Kwote Advisor.
A no-interest credit card, also known as a 0% APR credit card, allows you to make purchases without accruing interest for a specified period of time. This can be an excellent way to finance your business without accumulating high-interest debt. Here are some steps to take when using a no-interest credit card to fund your business.
- Determine Your Budget and Timeline
Before applying for a no-interest credit card, you’ll need to determine how much money you need to borrow and how long it will take you to pay it back. Be realistic about your budget and timeline to avoid taking on more debt than you can handle. Remember, while you won’t be accruing interest on your purchases, you’ll still need to pay them back in full before the introductory period ends.
- Choose the Right No-Interest Credit Card
There are many credit cards available that offer no-interest introductory periods, so it’s essential to choose the right one for your business. Look for a card that offers a long introductory period, typically around 12 to 18 months. Also, consider any fees associated with the card, such as an annual fee or balance transfer fee, and factor those into your budget.
- Use the Card Wisely
Once you’ve obtained your no-interest credit card, it’s important to use it wisely. Only use the card for business expenses that you can afford to pay back in full before the introductory period ends. Avoid using the card for personal expenses or non-business-related purchases.
- Make Payments on Time
It’s crucial to make payments on time to avoid late fees and maintain your good credit standing. Set up automatic payments or reminders to ensure you don’t miss a payment.
- Pay Off the Balance Before the Introductory Period Ends
The most crucial step in using a no-interest credit card to fund your business is paying off the balance before the introductory period ends. If you don’t pay off the balance in full, you could be subject to high-interest rates, which can quickly add up and lead to long-term debt. Set a realistic payment schedule and stick to it to avoid any surprises.
In conclusion, using a no-interest credit card can be a smart way to finance your business without accruing high-interest debt. However, it’s essential to choose the right card, use it wisely, and pay off the balance before the introductory period ends. With careful planning and smart financial management, you can successfully fund your business using a no-interest credit card.
Can You Get Interest Waived on a Credit Card?
Yes, it is possible to get the interest waived on your credit card, but it will depend on the specific circumstances and the policies of your credit card company. Here are some scenarios in which you may be able to get the interest waived on your credit card:
- Introductory 0% APR Period: Many credit card companies offer an introductory 0% APR period for new cardholders. During this time, you will not be charged any interest on your purchases. This period typically lasts for 6 to 18 months, after which the regular interest rate will apply.
- Promotional Offers: Credit card companies may offer promotional interest rates or balance transfer offers that come with a lower interest rate or no interest for a specified period. If you qualify for these offers, you may be able to avoid or reduce interest charges.
- Financial Hardship: If you are experiencing a financial hardship, such as job loss, illness, or disability, you may be able to get the interest waived on your credit card. Some credit card companies have hardship programs that offer temporary relief from payments and interest charges.
- Error or Dispute: If you believe that there is an error or dispute with your credit card account, you can file a dispute with your credit card company. If the dispute is resolved in your favor, you may be able to get any interest charges associated with the dispute waived.
It is important to note that getting interest waived on your credit card is not a guarantee, and it will depend on the specific policies of your credit card company and the circumstances surrounding your situation. It is always a good idea to contact your credit card company and discuss your options if you are having trouble making payments or if you believe there is an error or dispute with your account.
- Consumer Financial Protection Bureau. (n.d.). Credit Card Interest Rate Reductions. Retrieved from https://www.consumerfinance.gov/ask-cfpb/credit-card-interest-rate-reductions-en-1937/
- The Balance. (2021). How to Get Credit Card Interest Charges Waived. Retrieved from https://www.thebalance.com/how-to-get-credit-card-interest-charges-waived-4588919
- Credit Karma. (2021). How to get a lower interest rate on your credit card. Retrieved from https://www.creditkarma.com/credit-cards/i/how-to-get-a-lower-interest-rate-on-your-credit-card/
- NerdWallet. (2021). Can You Get Credit Card Interest Waived? Retrieved from https://www.nerdwallet.com/article/credit-cards/credit-card-interest-waived
- Bankrate. (2021). Can You Negotiate Credit Card Interest Rates? Retrieved from https://www.bankrate.com/finance/credit-cards/negotiate-credit-card-interest-rates/