Six Tips For Choosing The Right Business Credit Card

With the right business card, you can have all the advantages of a credit card and keep your finances in order. The best way to find a good business credit card is by researching and comparing options. Here are some tips on how to pick the right card for your needs:

Is a business credit card right for you?

As you are doing your research, you may find yourself wondering if a business credit card is right for your small business. If so, don’t worry—you’re not alone! Business owners have plenty of questions about them.

First things first: A business credit card isn’t just for large businesses! Most small businesses have a business credit card. You may even qualify for a card if you’re an independent contractor.

A business credit card can save you time, money, and hassle. You don’t have to dig into your personal bank account or wait for checks to clear when you’re running low on cash. With a business credit card, you can use it whenever you need it. Tip: Pay everything off at the end of the month, so there’s no balance due.

Business credit cards also help manage cash flow. Having access to a line of credit lets you buy now and pay later without carrying around large amounts of cash or writing checks that could bounce. Credit cards can also be a quick way to make payments on invoices from suppliers while building your business’s credit history.

How will this card be used?

Knowing how you plan to use the card is an excellent way to narrow your choices. If you make most of your purchases in stores and restaurants, you may want to focus on cards that offer rewards. If you’re often traveling for work or pleasure, an airline points card could better fit your needs.

Also, consider how much money is spent each month on different transactions. Some cards have high annual fees, but more generous rewards programs encourage spending at specific merchants or industries (e.g., travel expenses).

What are the details of the rewards program?

Once you’ve chosen a business credit card, look at the rewards program. The exact details of how points are earned and redeemed vary from card to card. Some cards give you one point for every dollar spent on purchases. Other cards offer double points when you use your card at specific merchants. Again, do your research. NOTE: Some cards limit the number of points earned in a given year.

What is the interest rate for the business credit card?

You’ll want to consider the interest rate, which can vary by bank and credit score. Business credit cards typically come with higher interest rates than personal cards. If you have great credit, however, a business card can be an easy way to earn rewards without worrying about cash back or miles—pay off your balance each month!

What are the fees associated with the card?

Look into the fees associated with each card. Most business cards will charge a fee if you use your card to make a purchase over your limit or if you make late payments. Avoid these fees by paying off your balance in full at the end of each month and always making sure that your balance is under your credit limit.

Conclusion

When it comes to choosing a business credit card, there are lots of different features you’ll want to consider. We hope these tips have given you some ideas on narrowing down your search and finding the right one for your needs. Need help managing your credit cards in QuickBooks? We can help! Schedule a Complimentary Consultation today!