How to Choose the Right Business Credit Card
As a business owner, the financial choices you make can have a big impact on your company’s success. Whether you’re managing a startup or overseeing a well-established business, a business credit card can be an essential tool. It can help streamline expenses, build business credit, and even offer all types of rewards. But with a large choice of options available, how do you choose the right business credit card for your business? Here’s a comprehensive guide to help you navigate this important decision. Be sure to watch the video where we break down the five types of business credit cards available in the marketplace.
1. Assess Your Business Needs
Before diving into business credit card options, pinpoint what your business truly needs. Are you looking for a card that offers travel rewards, or are cash-back incentives more appealing? Does your business require a high spending limit, or is a lower limit acceptable? Understanding your priorities will make it easier to narrow down your options. 
Consider the nature of your expenses. If travel is a large part of your operations, a card offering travel rewards and benefits like free airport lounge access or travel insurance might be best. For routine expenses, cards with cash-back incentives for these categories can result in substantial savings.
2. Evaluate Fees and Charges
Not all business credit cards are created equal, especially when it comes to fees. Annual fees can range from zero to several hundred dollars, depending on the features and benefits provided. Some premium credit cards for businesses offer high-value rewards that might justify hefty annual fees, but be sure to calculate if the return from these perks outweighs the cost.
Additionally, scrutinize interest rates, especially if you plan on carrying a balance from month to month. Business credit cards may have variable APRs based on your creditworthiness. It’s important to choose a card with a competitive APR if you’re unable to pay off your balance in full each billing cycle. There are many 0% intro APR offers you can find with business credit cards, consider taking advantage of our free pre qualification review for business credit card funding.
3. Consider the Rewards Structure
Business credit cards often feature a variety of rewards structures, such as cash-back programs, points systems, and travel incentives. Understand how these rewards align with your spending habits. Some cards provide higher rewards rates for specific categories like gas, dining, or office supplies; others might offer a flat rate on all purchases.
Select a rewards program that complements your business’s spending pattern. Furthermore, look out for sign-up bonuses. Many cards offer lucrative bonuses after spending a certain amount within the first few months. These bonuses can provide a considerable jump-start to your rewards earnings.
4. Pay Attention to Credit Card Terms
The fine print is your friend when it comes to business credit cards. Investigate the card’s terms and conditions, paying attention to any limitations or restrictions that might impact you. For example, some cards implement foreign transaction fees, which can be a concern if you conduct business abroad regularly.
In addition, examine rewards redemption options. Some cards offer straightforward cash-back credits, while others might require navigating through a rewards portal. Make sure the redemption process fits your preference.
5. Leverage Additional Features and Benefits
Many business credit cards come with features that go beyond just transactions. These can include travel insurance, purchase protection, extended warranties, and free employee cards. While these perks can add value, ensure they align with what your business needs.
Look for features that might provide operational benefits. Some business credit cards offer expense management tools, which can help in tracking and categorizing spending, simplifying bookkeeping tasks. Others might offer integration with accounting software. Many fintech business credit cards offer this integration.
6. Consider the Impact on Your Business and Personal Credit
A crucial aspect of choosing the right business credit card is understanding its impact on your business and personal credit scores. Some credit card issuers report business credit card activity to personal credit bureaus, while others keep business credit separate. If maintaining a clear distinction between your personal and business credit is important, you’ll want to choose a card that reports solely to the business credit reporting agencies such as Dun & Bradstreet or Experian commercial.
7. Consult Reviews and Seek Professional Advice
Leverage online reviews, forums, and professional ratings to gauge the performance and satisfaction levels other business owners have experienced with various cards. Real-world feedback can provide insights into customer service quality, ease of use, and the actual value of rewards.
Additionally, consider consulting a financial advisor. These professionals can provide tailored advice based on your unique business circumstances, potentially uncovering options you may not have considered.
Conclusion
When it comes to choosing the right business credit card is more than just comparing interest rates and rewards—it’s about finding a financial tool that aligns with your business strategy. By assessing your needs, evaluating costs and rewards, understanding the terms, and consulting credible sources, you can make a well-informed decision.
Remember, the goal is to select a card that not only fulfills your immediate financial needs but also supports your business growth in the long term. Crafting a careful strategy around your business credit card can minimize financial friction and potentially offer powerful perks for your company.
Ready to build business credit? Become a member of my Business Credit Insiders Circle and gain access to a proven step-by-step business credit building system. A system that provides you access to vendor credit, retail credit, gas cards, business credit cards with and without a PG, funding sources and lenders that report to all the major business credit bureaus. Submit your name and email below for details and receive our Business Credit Insiders Newsletter and business credit audio seminar ($497 value) =>
To Your Success in Business and in Life!
Did This Blog Help You? If so, I would greatly appreciate if you like and shared this on Facebook and Twitter.
About the author
Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. He has written articles for Dun and Bradstreet, the SBA.gov, Business.com, About.com and AllBusiness.com. His articles and blog; Business Credit Blogger.com, have been featured in ‘Fox Small Business’, ‘American Express Small Business’, ‘Business Week’, ‘The Washington Post’, ‘The New York Times’, ‘The San Francisco Tribune’, Alltop, and Entrepreneur Connect.