We've analyzed the best Business Credit Cards to help you find the right solution for your needs.
What are the best Business Credit Cards?
Business credit cards are a type of credit card designed specifically for businesses. These cards offer unique features and benefits that can help business owners manage expenses, earn rewards, and build credit for their company. In this article, we will explore the features and benefits of business credit cards, as well as the considerations to keep in mind when choosing the right one for your business.
Benefits of Business Credit Cards
What are some of the benefits of business credit cards?
Separation of business and personal expenses: One of the biggest benefits of using a business credit card is that it allows business owners to keep their business and personal expenses separate. This makes it easier to track business expenses and manage bookkeeping.
Expense tracking: Business credit cards often come with features that allow business owners to track expenses by category and employee. This can make it easier to monitor spending and identify areas where the company can save money.
Employee spending control: Some business credit cards come with the ability to set spending limits for individual employees. This can help prevent overspending and fraud.
Rewards: Many business credit cards offer rewards programs that allow business owners to earn points or cash back on purchases. These rewards can add up quickly and help offset the cost of business expenses.
Business credit building: Using a business credit card responsibly can help build credit for the company. This can be beneficial when applying for loans or lines of credit in the future.
Benefits of Business Credit Cards
There are several types of business credit cards you can choose from.
Cash Back Business Credit Cards: Cash back business credit cards offer rewards in the form of cash back on purchases. This can be a great option for businesses that make a lot of purchases in categories that offer high cash back rates, such as office supplies, advertising, or travel.
Travel Rewards Business Credit Cards: Travel rewards business credit cards offer rewards in the form of points or miles that can be redeemed for travel expenses. This can be a great option for businesses that do a lot of traveling or have employees who travel frequently.
Balance Transfer Business Credit Cards: Balance transfer business credit cards offer low or no interest rates on balance transfers for a limited time period. This can be a good option for businesses that want to consolidate high-interest debt.
Secured Business Credit Cards: Secured business credit cards require a security deposit to be put down in order to obtain a line of credit. This can be a good option for businesses that are just starting out or have poor credit.
Considerations When Choosing a Business Credit Card
What should you consider when choosing the right business credit card for your needs? Here are some features you should look for.
Rewards Program: When choosing a business credit card, consider the rewards program and whether it aligns with your business's spending habits. Look for cards that offer rewards in categories where your business spends the most.
Fees: Consider the fees associated with the card, including annual fees, balance transfer fees, and foreign transaction fees. Make sure that the rewards you can earn justify the fees.
Interest Rates: Look at the interest rates associated with the card, especially if you plan on carrying a balance. Make sure that the interest rates are competitive and that you can afford to pay the balance off in full each month.
Credit Limit: Consider the credit limit offered by the card and whether it aligns with your business's needs. Make sure that the credit limit is high enough to cover your business's expenses.
Additional Features: Look for additional features that can help your business, such as expense tracking, employee spending control, and mobile app access.
Business credit cards can be a valuable tool for managing business expenses, earning rewards, and building credit. When choosing a business credit card, consider the rewards program, fees, interest rates, credit limit, and additional features. By choosing the right card for your business's needs, you can take advantage of the benefits that business credit cards offer.
I already have a personal credit card. Do I need one for my business too?
That depends on the club you select. Some chocolate clubs specialize in single-source, small-batch chocolates that are hand-crafted by artisans around the world. Others provide a more traditional experience with boxed chocolates or bars you might find in a specialty store near you.
What are some of the perks of using a business credit card?
You'll usually get a nice suite of tools that can help you manage your business. You might get an annual spending summary that breaks your purchases down by category (very handy for tax season), and many business credit cards come with some attractive rewards programs.
Do business credit cards have high interest rates?
Not necessarily. They're fairly comparable with personal consumer credit cards: you'll find APRs ranging from 10-25%, on average. You may also get introductory APR rates anywhere from 0% to 5% for the first 12-24 months you use your business credit card.
Do business credit cards have annual fees?
Some do, some don't. If you're considering a business credit card with an annual fee, make sure the benefits are worth the expense compared with a no-fee option.
Are there business credit cards with rewards programs?
Yes. In fact, most of them have some kind of rewards benefits, whether that's 2% back on every purchase or higher rewards based on category spending. You'll often find sign-up bonuses too: a typical offer is $500 in cash if you spend at least $5,000 in the first three months of getting your business credit card.
Do I have to have been in business for a long time to qualify for a credit card?
No. Many business credit cards look to your personal credit score to determine your eligibility.
Do I have to have a good credit score to qualify for a business card?
It helps. While there are business credit cards available to people with scores in the 660-700 range, many are looking for applicants with a minimum credit score of 720.
Can I get cards for my partner and/or employees?
Yes, most of the time. If you need multiple cards for your partner or for several employees, make sure to choose a business credit card that specifically offers that feature. There shouldn't be any extra fees for issuing more than one card tied to the same account.
