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5 Signs It Might Be Time to Find A New Credit Card Provider
August 02, 2018
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5 Signs It Might Be Time to Find A New Credit Card Provider

Credit cards are often necessary to get new businesses off the ground – but you don’t need to become entirely dependent to them. In addition, a credit card company should reward you for using their options, and not charge you with hefty fees.  If your business credit cards are giving you more headaches than rewards, it might be time for a change. Luckily, that’s an easy fix for most business owners.

Nearly 640 million credit cards have been issued by VISA, Mastercard, Discover, and American Express alone in the United States, and some great deals exist among them. Due to the competitive nature of this industry, credit card companies often roll out the red carpet for potential clients. As a result, credit card perks have become abundant; with many companies offering cash back on purchases, points programs, and airline miles for business travel, just to name a few examples.

If you aren’t getting any of these benefits from your current card provider, or are having other issues, it might be time to find a new credit card provider. In this post, we’ll review five signs that could reveal that it’s time to reconsider your existing credit card agreement and pursue a new one.

You Might Need a New Credit Card Provider If…

1. You Aren’t Getting the Best Interest Rate

There’s no faster way to destroy your credit than by carrying a balance on your card month-to-month and paying the exorbitant interest fees. Credit card interest is calculated daily when you carry a balance, and the rates are often over 20 percent!  If your card has a less-than-spectacular interest rate, try simply asking your provider to lower it first. If you’ve been a loyal customer for a while, they should be happy to help you out. But if they aren’t willing to lower your rates, you should shop around for better rates from other companies. Ultimately, getting a lower rate could save your business major money. For example, going from a 22 percent interest rate to a 17 percent rate could save you thousands of dollars in interest per year!

2. Your Credit Limit Hasn’t Increased

If you’re a responsible business owner and use your credit cards wisely, you should gain access to a larger credit limit. Some credit card providers might increase your limit without prompting, especially if you’re a long-time customer who has a history of making on-time payments.

An increased credit limit can help improve your credit utilization ratio and boost your credit score. If you don’t get an increase after a year or two of responsible spending, ask for one! Still, we encourage you to be careful, as a credit limit increase sometimes comes with a hard credit inquiry. Before accepting an increased limit, ensure that it won’t require a hard credit inquiry, as that could negatively impact your score.

3. You Aren’t Earning Rewards, Or They Aren’t Applicable to Your Business

Picture this scenario: you once racked up the frequent flier miles on business flights, but now do most of your traveling by car or train. If your credit card rewards you with airline miles, they’re probably just going to waste. Instead of frequent flier miles, maybe you’d benefit more from gas discounts or cash-back on dining. If you aren’t getting the perks that best suit your company, find a card that better fits your situation. You can search for credit cards by the different rewards they offer and narrow your choice from there.

4. Your Business Situation Has Improved

If you got your credit card when you opened your business, you probably didn’t receive the best possible terms. Now that some time has passed, and your credit score and revenue have likely increased, you could likely receive a better offer. To determine if you can get improved terms, reach out to your credit card provider, and shop around to find out if other providers can give you better options. Since your business is up-and-running, you’re in a good position to find a favorable credit card offer that will benefit your business.

5. You Have Better Offers Waiting for You

Sometimes, you don’t have to wait around for better credit card terms – they’ll come right to you instead. If you have a mailing address, you’ve likely been inundated with various credit card offers in big, thick envelopes. These mailings probably end up in the trash can most days, but every now and then you should see what you’re being offered. Maybe you have a $5000 limit with your current card, but a different provider is offering a $10,000 limit with the same interest rate. Remember, you’re the commodity and these companies are fighting for your business. Loyalty is a good thing, but don’t let it prevent you from getting the best deal.

Credit cards can help your business in numerous ways, but all cards aren’t created equal. Depending on your credit health and business history, certain credit cards might be more advantageous to you than others. Every year, conduct research on the credit card market and see what’s out there. You might find a provider offering significantly better perks than your current one, and those deals shouldn’t be ignored.

Fora Financial

Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.

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Fora Financial is a working capital provider to small business owners nationwide. In addition, the Fora Financial team provides educational information to the small business community through their blog, which covers topics such as business financing, marketing, technology, and much more. If you’d like to see a topic covered on the Fora Financial blog, or want to submit a guest post, please email us at [email protected].