| As a result of the credit crunch, credit card companies are making it more difficult for new, and even established businesses, to gain access to business credit. New businesses, especially, may need to seek out a personal credit card to use for business expenses. However, for those who qualify, there are a number of factors to consider when applying for a business credit card. For those who pay their balances in full every month, interest rates aren't really important. But for those who carry a balance from month to month, seeking out a card that offers a 0% APR on purchases and a low long term APR is a good place to start. The second factor to consider is rewards. For the most part, the best business rewards credit cards are those that provide cashback. Not only do these business cards tend to offer low rates and no annual fees, they also provide the most flexible reward available: cash. |
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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*All business credit card application information is presented "as is" and without warranty and is subject to change. See low APR business rewards credit card applications for complete terms and conditions. All stated credit card APRs are lowest available rates. You may be approved and offered a higher rate. Credit Card Depot Inc. attempts to maintain accurate information, but occasionally, a discrepancy may occur. |
