Business Credit Card

May 15, 2019

As your small business grows, the way you manage your finances is sure to change. If you’ve yet to consider a business credit card, now’s the time to turn your attention in this direction.

Just the same as a personal credit card, there are hundreds of offers to consider. Some of them will pique your interest, while others won’t do much to get you excited.

Regardless of what you’re searching for, here are three tips you can follow:

1. Start with the Basics

Don’t assume that every small business credit card is similar. Also, don’t fall into the trap of believing that business credit cards are the same as personal credit cards.

There are many basic details to keep in mind, such as:

  • A small business credit card is designed for business expenses only (don’t commingle business and personal spending)
  • The Credit CARD Act of 2009 does not pertain to business credit cards
  • You can typically add other people to your credit card account, such as business partners and employees
  • Business credit cards generally have a higher limit than personal cards
  • You can find, compare, and apply for small business credit cards online

This basic guidance should put you on the right path to making an informed decision.

2. Know What You’re Looking For

Are you interested in a small business credit card with the lowest interest rate? How about one that gives you points or cash back for every dollar you spend? Or how about the one with the best safety and security features?

You don’t have to know exactly what you’re looking for, but having a basic framework will help narrow your options and focus in on the offers that are best for you.

Note: shorten your list to three to five of the best offers, as this allows you to focus more resources on those that are best suited to your business.

3. Focus on the Fees

More so than a personal credit card, fees often come into play with a small business credit card.

For example, many of the best business cards have an annual fee. Even though it’s money out of your pocket, consider what you’re getting in return. You may pay an annual fee for access to an industry leading rewards program.

Review the entire fee schedule to determine if any others could come into play in the future. Maybe you and your employees do a lot of traveling, which could lead to foreign transaction fees. Knowing about this in advance will help you avoid unnecessary fees.

Every small business credit card has a fee schedule. Compare these for a better idea of which offers are user friendly, and which ones have higher fees for the good of the issuer.

Final Thoughts

Choosing a small business credit card is a big decision, as it’ll impact the way you spend money and manage your budget.

Fortunately, with so many available offers, you will eventually find one that excites you. At that point, you’re ready to apply, secure your card, and begin using it however you best see fit.

Do you have any experience comparing small business credit cards? Which details were most important to you? Were you satisfied with your choice?

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