Business credit cards can be a great way to separate your personal and business expenses, build your credit history, and earn rewards. But with so many different cards on the market, it can be tough to know which one is right for you.
In this guide, we will walk you through everything you need to know about business credit cards, from how they work to how to choose the best one for your business.
How Business Credit Cards Work
Business credit cards work just like personal credit cards, but they are issued in the name of your business. This means that your business is responsible for paying the bill, and any late payments or defaults will affect your business credit score.
Business credit cards offer a variety of benefits, including:
- Separated personal and business expenses: This can be helpful for tracking your spending and ensuring that you are not spending more money than you need to.
- Building business credit history: A good business credit history can help you qualify for loans and other forms of financing in the future.
- Earning rewards: Many business credit cards offer rewards programs that can help you save money on travel, gas, or other expenses.
How to Choose the Best Business Credit Card
There are a few things to consider when choosing a business credit card:
- Your business needs: What kind of expenses do you need to cover with a business credit card? Do you need a card that offers travel rewards, cash back, or something else?
- Your credit score: Your credit score will affect the interest rates and fees you are offered on a business credit card. If you have a good credit score, you will likely qualify for a card with lower interest rates and fees.
- Your budget: Business credit cards can range in price from $0 annual fee to over $500 annual fee. It is important to choose a card that fits your budget.
- Your rewards program: If you are looking to earn rewards, be sure to choose a card with a rewards program that offers the types of rewards you are most interested in.
Once you have considered these factors, you can start comparing different business credit cards to find the best one for your business.
Here are a few of the best business credit cards on the market:
- Chase Ink Business Preferred®: This card offers a welcome bonus of 80,000 points after you spend $5,000 on purchases in the first 3 months from account opening. It also earns 3x points on travel and shipping, 2x points on restaurants and gas stations, and 1 point per dollar on all other purchases