Mon 01 May 2017 | By:

Business Credit Cards: Everything You Need to Know

Business Credit CardsConsidering a business credit card for your shiny new company? Well, you’re on the right track. Statistics show that 65% of small businesses use credit cards on a regular basis, but less than 50% of those cards are in the business’s name.

There are a number of reasons to why using a business credit card instead of a personal credit card is a better approach to your business expenses. That said, let’s go over what you need to know!


Why Get a Business Credit Card?

Mainly, for the benefits! Business credit cards offer certain benefits that personal credit cards don’t. These include:


What Risks Are Involved?

A few risks to consider before opening a business credit card:


What’s the Best Business Credit Card?

There’s no single answer to this question.

Shop around and consider each card’s features. If a card requires an annual fee, what do you get in return? Often the most generous reward programs do require an annual fee, but make sure you’re going to take full advantage of the rewards before you commit to one of these. If they’re asking you to pay for your plastic, there should be a justifiable reason.

When it comes to rewards, think critically about your business needs. If you don’t travel much for business, perhaps you don’t need a card that will allow you to rack up frequent flier miles. Instead, you could seek out the most lucrative cash-back programs, many of which specialize in a particular category of spending (office supplies, fuel purchases, etc.).

And no matter what, make sure to look carefully at the terms and conditions of the cash-back program before you apply for the card!


Can I Get a Card Outside Personal Credit?

We’ve been talking about how important it is to separate your personal credit from your business credit, and how a business credit card can help with that.

But the sad truth is, if you’re new to the business world, you’ll probably have to put your own credit on the line for a few years in order to maintain a business credit card. That said, it’s still a good idea, and if you’re already using your personal credit card for your business there’ll be little difference other than the rewards you’ll enjoy.

Here are a few things things you’ll need to do in order to eventually get a business credit card based solely on your business’s credit:


Wrapping Up

If you’ve planned your business carefully, a business credit card can serve as an awesome tool— the majority of the time, it’s better for your business than using a personal card or having a line of credit.

While you might not be able to qualify for one based solely on your business credit right now, it’s still important to get into the habit of separating your business expenses from your personal expenses. So start building up your business credit history, separating out your expenses, or even shopping around for a business credit card today!

About Ryan James

Half hardworking hermit, half avid adventurer, Ryan founded Startup Savant to simplify entrepreneurship and pay it forward by donating a portion of all revenue to support children's education via

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