Maximizing Business Credit Card Rewards
Business credit cards with rewards programs offer business owners a great opportunity to cash in on their expenses. Whether it be airline miles, points, or cash back, a business card that offers a rewards program can provide substantial value. Here are a few tips to maximize the your rewards:
1.) Cash is King: Business credit cards that offer cash back rewards are often the best option. For starters, most cash back credit cards carry no annual fees and lower interest rates than frequent flyer rewards cards. Plus, with a cashback credit card, you can buy yourself an airline ticket, a new computer, or a flat screen t.v. In a nutshell, you can do anything you want with the money you earn from a cash back credit card. The same can't be said for an airline credit card.
2.) Airline Rewards are Okay: While you can't buy a new computer with AAdvantage frequent flyer miles, businesses that spend heavily can rack up free flights relatively quickly, especially with an airline rewards card that doesn't tie you to a specific airline. General airline rewards credit cards, such as those offered by Capital One or Discover, allow you to earn miles you can use on any airline. Additionally, many of these cards allow you to earn extra miles on certain purchases. If cash is king, airline miles are princes.
3.) Points are Points: Business credit cards that offer point based rewards are often the least useful offers. With rewards points, you'll need to accumulate specific amounts to cash them in, and in many cases, the rewards you get aren't worth the points you pay.
4.) Carry a Balance, Pay the Price: If you carry a balance on your business credit card, your best option is to choose a rewards credit card that charges a low APR or offers a 0% intro APR. Again, cashback reward cards are king here. However, if you have to choose between paying 2% more in interest or earning 1% in cash back, I'd stick with the first option.
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