Common Fees Associated with Business Credit Cards

Business credit cards carry financing fees just like personal credit cards. Since many businesses operate with higher balances, these fees can also be much higher. There are two types of fees on most cards: an interest rate that results in a monthly payment and a financing fee for rolling over any debt.

Monthly Payments

To avoid any action against your credit or your company, you must make your monthly credit card payment. This amount is the interest charged based on your balance in a single month. As long as you continue to make this payment, even if you are operating with a maxed out card, you will avoid any direct penalties against your credit. If you miss this payment, you may be assessed a large fee in addition to a drop in your credit.

Rollover Charges

When you allow balances on a credit card to revolve, interest compounds. As a result, the fees to carry a balance month to month can be astronomical on a large credit line. Furthermore, if you consistently carry a high balance, your lender may raise the rate on your business credit card. This puts immediate cash in their pocket, while pressuring you to pay down your balance faster. 

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