What to Look for in a Small Business Credit Card

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A business credit card can be a great financial tool for small business owners. You can use these credit cards to pay for everyday business expenses, access valuable perks that help you run your business better, and earn rewards when you make necessary purchases.

If you're considering getting your first small business credit card, you may need help deciding what features to prioritize. Luckily, there are a lot of cards to choose from. Let me help guide you in choosing one, with an overview of what to look for in a small business credit card.

Look for benefits that matter to you

Many small business credit cards have useful benefits, but only some benefits offered will appeal to you or make sense for your business needs. For example, annual travel credits or travel insurance benefits may be unnecessary if you rarely travel for work.

However, other perks, such as free expense tracking tools or cellphone protection, may be helpful for your business needs. Carefully review the perks provided to determine whether you would benefit from them before choosing a card. This way, you get the most value from your card.

Decide whether you want a card with an annual fee

You'll need to decide if you can afford an annual fee or prefer to apply for a no annual fee business credit card. It's worth mentioning that credit cards with more benefits and rewards opportunities typically have a yearly fee. But keep your financial situation in mind when choosing a card and ensure you can afford an annual fee if the card you want has one.

Pick a card with rewards that match your spending

Many small business credit cards earn rewards, but how each card earns rewards varies. Before choosing a card, consider your typical spending habits. This will allow you to select a card that earns rewards in your top spending categories to maximize the rewards you earn.

If your spending varies, you may want to look for a small business card that offers flat-rate rewards for every purchase that you make with your card.

Consider whether you need an intro 0% APR offer

Some small business credit cards promote introductory 0% APR offers to new cardholders. This may apply to purchases, balance transfers, or both. If available, you can benefit from no interest charges during the promotional period. But you must pay off all of your debt before the promotional period ends to avoid being charged interest.

If you have an upcoming expensive business purchase and need help financing it, getting a business card that has a 0% introductory APR offer on purchases could be a good money move for your business. I've gotten a card like this before buying new electronics for my business.

Determine whether you need employee cards

Many business credit cards provide employee cards and they may be free. Check to see if this is available and whether the cards are free or if a fee is charged for each card ordered.

This can be an excellent benefit if you have employees who make purchases for your company. Most card issuers offer tools that allow you to set spending limits and get alerts when your employees make a purchase so you can stay alert to overall business spending.

Research all fees

Before getting any credit card, you should review the card fees. This includes the annual percentage rate, and late payment and foreign transaction fees. It's wise to take steps to avoid extra credit card fees, but it's worthwhile to know what these costs are upfront. Remember, you can avoid credit card interest fees by always paying off your monthly statement balance.

Are you eligible for a business credit card?

Now you know what features to pay attention to as you research cards. You may wonder if you're eligible for a business credit card. The answer is likely yes. You can apply for a business credit card if you have a business and earn self-employment income. This includes gig work or freelance work. I'm a freelance writer and have used a small business credit card for several years. Ready to explore your options? Review our list of the best small business credit cards .

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