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Tips for Lowering Your Business Credit Card Rates from Merchant Advocate

Last updated 6 years ago

High rates can limit the effectiveness of your corporate credit card. Explore solutions to reduce your monthly overhead.

  • Learn the Rules: Knowing the difference between personal and business credit cards is important for predicting credit card costs. Much of the legislation that limits how lenders can charge consumers does not apply to corporations. Unlike with consumer credit cards, lenders aren’t required to issue a 45-day notice before increasing a rate. Rate hikes retroactively apply to existing charges as well. Business credit cards are also vulnerable to uncapped late fees and over-limit fees. Lenders can apply payments to your loans at their discretion. This may lock a business into the highest possible interest rate for the remainder of their payment period. Keeping these differences in mind will help your business make smart credit card decisions.
  • Ask Your Lender: No harm comes from negotiating with your lender. If your business credit card interest is too high, then simply ask for a lower rate. The lender may comply in order to retain your account. The process may be easier than you expect if your history with the lender has been positive. Recent debit card legislation may even encourage companies to increase incentives for credit card customers.
  • Change Your Card: Shopping around is another great strategy for minimizing your credit card expenditures. Be sure to close your previous account properly before applying for new lines of credit. Poor scores from one card will hamper rate negotiations for your next credit source. Your business may also benefit from a competitor’s superior card reward plan. Be wary of teaser rates when looking for a new card. These payment schedules will eventually expire in lieu of costlier interest plans. Examine the fine print from any lender to ensure a generally consistent credit card rate.

Negotiating a new credit card rate is a great strategy for cost reduction. Employing the services of Merchant Advocate can also limit costs for credit card transactions. Learn more about our services online or by dialing (732) 727-2073.

 

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