How to select the best 0% APR business credit cards for your needs

Diego Maravilla // Shutterstock What 0% APR means is that you can make purchases and pay no interest for a period of nine, 12, or even 15 months after opening a business credit card. This means you don’t need to pay the balance in full every month to avoid interest during this time.‍ In this guide, Ramp covers how to choose the right 0% APR business credit card for you, plus tips for increasing your chances of qualifying for these card offers. How Does APR Work on a Business Credit Card? Small business credit cards typically have an annual interest rate you’ll pay if you carry a balance on your card. Cardholders usually can’t get 0% interest on a business credit card long-term, though many come with an introductory 0% APR period. In addition to the annual rate, there are a few other forms of APR that to be aware of:‍ Monthly APR: This is calculated by dividing your APR by 12 and multiplying that number by your credit card balance. Daily Periodic Rate (DPR): Instead of dividing your interest per month or calendar year, DPR spreads it out over the course of the month. Variable APR: Most APR rates are fixed, but some credit cards offer variable APRs that fluctuate based on what’s happening in an index fund or other financial markets. Tip: Which business credit cards have no interest for 24 months? No business credit cards currently offer a 24-month no-interest period. The longest available 0% APR periods are typically up to 20 months, such as the U.S. Bank Business Platinum Card, which offers 0% APR for 20 billing cycles. For extended interest-free periods, consider a corporate card–these typically require full monthly balance payments and have no interest. How to Use Balance Transfers on 0% APR Business Credit Cards Consider doing a balance transfer if most of your debt from one card can be paid off on the other before its intro APR period ends, or if one card has a lower interest rate. Some business credit cards allow balance transfers during their introductory APR period. Read through their terms to check if balance transfers are allowed.‍ Here are some pros and cons of balance transfers: Pros: Lower interest rates. If you’re currently paying 22% in APR, performing a balance transfer to a card that charges even a tiny percentage less in fees can help cut costs substantially. Added convenience. If you have multiple credit cards with different providers, consolidating them into just one or two cards can help you more easily track payments and save on fees. Lower credit utilization. Increasing your available credit through a balance transfer can help build your credit score. Cons: Balance transfer fees. While some credit card companies offer free balance transfers, others can charge between 3-5%. Reduced average account age. A long credit history will reflect positively on your credit score. Reducing it through a balance transfer could have a negative impact. Hard inquiry on your credit report. Applying for any new credit card will result in a hard inquiry on your credit report. Hard inquiries can temporarily reduce your score, so consider limiting yourself to one new card for a balance transfer. ‍Tip: What credit score do you need to qualify for a 0% APR credit card? To qualify for a 0% APR credit card, business owners typically need a personal credit score of at least 700. This indicates to lenders that your business is low-risk and capable of managing credit responsibly. If you have poor personal credit, you can look into business credit cards with no personal guarantee What to Consider When Selecting a 0% APR Business Credit Card To pick the best 0% APR card for your company, consider these factors: Rewards: The card you choose should offer rewards on purchases you actually make, whether that’s in categories like travel, office supplies, or software. Or, consider cashback business credit cards for more straightforward value. The 0% APR period length: Figure out how long you’ll need 0% APR if you plan to initiate a balance transfer. Balance transfer option: Does the card apply the 0% introductory APR to balance transfers? If not, how much is the balance transfer fee? Additional fees: Compare fixed costs carefully. No annual fee business credit cards can offer good value, though cards with fees often feature enhanced rewards. Check late fees and spending limits to avoid extra charges. Variable APR: Cards with a 0% APR period will eventually transition to a standard APR, so try to choose one with a lower interest range. Tips for Maximizing Your Chances of Qualifying for a 0% APR Business Credit Card Smaller businesses with a shorter credit history can have a hard time applying for business credit cards. Here are some steps you can take to maximize your chances of qualifying: Check and maintain your credit score. When applying for a business credit card, your personal credit score is also looked at, especially for newer businesses. Make sure you’re not maxing out any cards you already have to maintain your credit score. Limit your credit card applications to avoid impacting your credit score. Remember that no matter the amount of APR on the card, applying for new credit cards will result in a hard inquiry of your credit. Multiple inquiries could result in a short-term negative impact on your business credit score. Look for EIN-only business credit cards. These cards don’t require a personal credit check, so they may increase your likelihood of qualifying. Look for cards that approve based on sales. If you run an e-commerce business, you may qualify for a Ramp card based on your sales history, even if you don’t qualify for other cards.‍ This story was produced by Ramp and reviewed and distributed by Stacker.