By revenued
By separating your business spending from your personal spending on credit cards, you can earn loads of rewards or incentives by maximizing different credit card spending categories. But there are a vast array of options when looking for the best small business credit cards out there — picking the right one can seem confusing and a little overwhelming.
Here we’ll discuss several ways to evaluate business credit cards, so you can decide which one would be the best fit for your small business.
Credit cards are “revolving” credit accounts that allow cardholders to carry a balance. You only have to make a low minimum monthly payment to keep your account in good standing, but you are usually held to a strict spending limit. As long as minimum payments are made each month, you would not be subjected to any penalties (though you may end up owing interest on any unpaid balances).
A charge card is a little different, in that you have to pay off the full balance each month. There are no preset spending limits on charge cards. However, failing to pay off the balance by the monthly due date results in late fees and a negative mark on your business credit history. Also, you usually need excellent credit to qualify. Late fees can be up to 3 percent of your balance, or $40 plus a penalty rate as high as 30 percent.
If you’re looking to receive rewards from your business card, there are plenty of options such as cash, trips, travel points and other rewards you can earn by using your card for business purchases. Card companies find different ways to structure rewards and incentive programs to attract many different customer segments.
To decide between these programs, think of the earning potential. It’s best to select a business credit card that offers rewards coinciding with your interests. For example, do you anticipate traveling often in the following year? If so, look for a business credit card that would contribute rewards to your travel plans.
Some credit cards offer a sign-up bonus to attract new customers. For example, Southwest partners with Chase to provide a special offer for its Rapid Rewards Program. After signing up for this branded credit card, you’ll receive 50,000 bonus points when you spend $2,000 on purchases in the first three months.
Almost every credit card has annual fees; they typically range from $59 to $175 (or higher depending on the benefits offered).
Based on the above criteria, we’ve selected our eight picks for the best business credit cards of 2018. Check them out below.
Best for Travel and Larger Office Spending
Best for Travel (Domestic and International)
Best for Travel
Best Charge Card for Smaller Spending
Best for Business Loyalty Rewards
Best for Telephone Expenses and Choice of Incentive Category
Best for Travel
Best for Hotel Spending
If your credit score falls around a 640 or lower, your credit rating is considered poor. This can make it more challenging to get approved for a credit card. However, there are still some solid credit card options for your business:
Best for a Low Interest Rate
Best for Rebuilding Credit
Best for Recent Bankruptcy
Best for Rewards
After reviewing this list, make sure you understand how applying for new credit cards can affect your credit score and what mistakes to avoid. Applying for and using multiple credit cards can boost your credit score eventually, but be sure you’re doing it responsibly.
Do you use any of these business credit cards? What do you do with your business credit card rewards? Let us know on Twitter @Revenued_com.
Originally written in 2018. Most recently updated in March 2021.
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