Expert Advice On How To Choose The Right Business Card For 2021

You can have a dozen personal credit cards in your wallet but starting or growing a business would require you to choose the right business card instead. 

It is a great idea to keep your personal and business spendings apart and a business credit card lets you do just that. In fact a good choice can considerably lower your overall expenses and make you, as well as the employees, happier. So, what the secret? Here are some tips on how to choose the right business card that you must consider next time you are applying. 

Be Aware of Business Credit Card Basics 

The first step in choosing the right credit card is knowing what this card means and what it should be able to do. 

Business credit cards are meant for business transactions only. You should not involve them in your personal spendings in any way. Furthermore, these cards carry tougher terms and conditions because of larger expenses. Delaying payment or missing the due date should be completely out of question when you are considering a business credit card. 

That also explains why the cards offer higher credit limits. I used many cards but credit limit for getmyoffer Capital One card is the best for me personally. It is helpful when you need to make multiple purchases in a month. However, you need to make a personal commitment to the credit card provider that you would pay off your balance, even with personal funds, if the revenue from the business does not cover the cost. 

Consider The Needs of Your Business:

One size does not fit all and the same goes for business credit cards. It is important to look into what your start-up needs and where your firm is spending the most. Choosing such a type of credit card should also take into consideration the needs of employees, their travel programs, business dinner or lunches, and other office supplies. 

After you have given these factors a thought, your answer towards the right business card for you might completely change from what you had in mind previously. 

Look Into Best Reward Systems 

Most business cards have some kind of on-going reward system such as cash back offers or bonus points. Similarly Merrick Bank double your line offers double your credit limit is amazing for those who are looking forward towards a bright Credit Score.  Sometimes these rewards are tied to certain spending categories so you need to select a card that offers perks relevant to your work. 

Tip! If you are having trouble deciding where your business invests the most, take a look at your monthly statements. This would give you an idea about where most charges lie. New start-ups can consider applying for a business credit card that offers flat-rate rewards. 

More importantly, make sure you can redeem these rewards easily and as per your need. Typically, you will have to decide whether you want statement credit deposited directly to your account or points that can be redeemed at specific locations or specific purchases. 

Compare Monthly and Annual Charges to Overall Perks

Amazing rewards often come at a high cost therefore you should not only look into what the card is offering but also how much it is charging for it. This would include the annual fee as well as other expenses such as processing charges, maintenance fee, fee on cash advances, foreign transaction fee, etc. 

There are some charges that can be avoided. For example, if you do not plan on making any foreign transaction, you don’t need to worry if the card has a high fee for it. The same goes for higher APR that can be dodged by making payments on time each month. 

However, other certain charges such as annual fees can not be ignored. So your job is to do the maths before taking a final decision. Compare the expenses and profit of your business, as well as the cost of maintaining a credit card to its overall benefits. There is no need to rush, take your time! 

Final Pick? Consider Fringe Benefits 

The last thing to do is to take a look at whatever is “additional”. These could be any extra perks that are offered by your top choices that make the card stand out or make it more beneficial to your business. 

For example, let’s consider that your business involves a lot of travel. In this case, choosing a credit card that offers travel rewards, access to airport lounges, or extra miles can prove to be really helpful. 

Similarly, we have not given a thought to 0% introductory APR so far but it is quite a catch if you need to make a hefty purchase for your start-up but do not have the resources to finance it. We hope these tips help you choose the best business credit card. Good Luck with your final decision!

Anzhela Sychyk

Anzhela is a seasoned business journalist with a keen eye for spotting industry trends and a knack for explaining complex financial concepts in a clear and accessible way. With over 15 years of experience covering the world of finance and economics, Anzhela has established herself as a respected authority on all things business.